Premier Scott Moe announced details Wednesday of the province’s $7.5 billion, two-year economic stimulus plan to help the province rebound from the COVID-19 pandemic.
At a news conference Wednesday alongside Deputy Premier Gord Wyant in Regina, Moe called the plan an “early but major step in Saskatchewan’s economic recovery in the months and the years ahead”
“Over the next two years, our government will invest $7.5 billion dollars in schools, hospitals, highways, Crown utility projects, in municipal infrastructure and a number of other important capital projects designed to build a strong province of Saskatchewan,” Moe said. “That is a $2 billion increase – a $2 billion economic booster-shot over and above the $5.5 billion our government had already planned to invest in capital projects over the coming two years.”
“The $2 billion stimulus injection will balance the need for smaller, short term projects to jump-start our economic activity and to get people back to work quickly with longer-term, large-scale projects that leverage multiple sectors over the course of the next couple of year. This capital injection includes new capital funding of more than $300 million for highways projects, $200 million for health infrastructure and over $135 million for education infrastructure.”
As stated in Moe’s announcement, the $2 billion is allocated as follows:
• $1.37 billion for large infrastructure projects, including $103 million for new health infrastructure and $110.5 million for new education infrastructure, with additional allocations to be announced later on. SaskBuilds will provide oversight as well as project management and procurement expertise. Design, engineering, architecture, construction and project management costs are included, with a goal of ensuring projects are shovel ready into next year.
• More than $300 million is allocated for highway projects focusing on thin membrane surface upgrades, and passing lanes, including $46 million dedicated for upgrades to municipal roads and airports.
• $181 million is going to renewal projects to reduce deferred maintenance on provincial and third-party assets. This includes $100 million for health infrastructure and $25.9 million for renewal infrastructure education, with the remainder addressing priority projects in other ministries and agencies.
• Finally, it includes $150 million in a renewed Municipal Economic Enhancement Program to support infrastructure projects in communities across the province.
This $2 billion spending is in addition to the $2.7 billion Crown and executive government capital spending announced in the 2020-21 Estimates, as well as the $2.8 billion Crown and executive government capital spending projected for the 2021-22 fiscal year.
The previously announced capital funding includes a number of infrastructure projects across Saskatchewan, including:
• $130.4 million in education capital funding for seven new school projects and three major renovation projects.
• $142 million in health care capital spending—including a renewed and expanded Prince Albert Victoria Hospital; a newlong-term care facility in Meadow Lake; and a new CT scanner in Melfort.
• $377.5 million for transportation infrastructure, including 1,000 km of highway improvements and 24 new sets of passing lanes
Moe added that the capital injection is expected to help municipalities and the construction sector.
“This investment over the course of the next two years, includes more than $320 million will be provided for municipal infrastructure, starting with the $150 million in the Municipal Economic Enhancement Program for renewal of the MEEP funding, the $130 million Investing in Canada Infrastructure (ICIP) Program, and the $46 million through Highways targeted for municipal roads and airports. Again this investment is in addition to various municipal transfers highlighted in the estimates this spring, and in addition to municipal revenue sharing.”
Moe noted construction, including maintenance and repair, has been designated an Allowable Business Service by the Government of Saskatchewan. To ensure the safety of workers and communities, said Moe, work sites will be required to follow all physical distancing measures and restrictions that remain in place through the five phases of the province’s Re-Open Saskatchewan plan.
REACTION POSITIVE FROM MUNICIPALITIES, CONSTRUCTION INDUSTRY
There has been positive reaction expressed by municipal leaders according to a provincial news release:
“Municipalities are the engines of economic growth in Saskatchewan,” Saskatchewan Urban Municipalities Association President Gordon Barnhart said in a statement. “We’ve been advocating for years for the development of a provincial infrastructure program, and we’re extremely pleased to see our provincial government implement one to help our economy recover in these challenging times.”
“The Saskatchewan Association of Rural Municipalities (SARM) is very pleased that the province has made the Infrastructure Stimulus announcement today,” SARM President Ray Orb said in a statement. “Investing in municipal infrastructure projects will help rural municipalities in rural Saskatchewan and will certainly help the provincial economy to recover.”
Representatives from the construction industry issued their own news releases in support of the announcement Wednesday.
"There's no other way to say it: today's announcement is absolutely fantastic news for Saskatchewan's construction industry, construction companies and workers, and Saskatchewan's economy overall,” said Mark Cooper, President of the Saskatchewan Construction Association, in a statement.
“The provincial government stepped up in a big way today. They heard what industry has been telling them, and they responded. Thank you to Premier Moe, Deputy Premier Gord Wyant, and to all members of cabinet and provincial officials for making this decision.”
He added the funding will give a lift to the construction industry. “We're confident that the province won't delay and get as many projects as possible going right away and flow funding for municipal projects soon; however, we will be watching this closely and will press the government to act fast.”
The Saskatchewan Heavy Construction Association, which represents over 200 member businesses in the heavy construction industry, also issued a news release in support of the stimulus measuress.
“Prior to the COVID-19 pandemic the provincial economy was already facing headwinds through depressed resource prices, anti-pipeline policies and rail blockades,” said Shantel Lipp, SHCA president, in a statement. “The announcement today will mean a big boost in the arm not only to the construction industry but to the province as a whole.”
“Our industry generates more than $5 billion in provincial GDP out of a provincial economy of $73 billion or roughly seven per cent of the total economy and employs close to 30,000 workers, making our industry one of the largest employers in the province,” Lipp added. “This funding commitment is a welcome move towards hopefully maintaining and eventually growing these job numbers and getting our economy back on track.”
