Premier Scott Moe has announced a $7.5 billion, two-year capital to stimulate Saskatchewan鈥檚 economic recovery from the impact of the COVID-19 pandemic.聽
The $7.5 billion in infrastructure funding represents a $2.0 billion increase over the government鈥檚 existing capital plan.
鈥淥ver the next two years, our government will invest $7.5 billion dollars in schools, hospitals, highways, Crown utility projects, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan,鈥� Moe said in a release Wednesday.聽 鈥淭his is a $2.0 billion economic booster-shot over and above the $5.5 billion our government had already planned to invest in capital projects over the next two years and will be an important step in our province鈥檚 economic recovery.鈥�
The $7.5 billion stimulus package will be committed over the next two years and includes the $2.7 billion Crown and executive government capital spending already accounted for in the province鈥檚 2020-21 Estimates, and the $2.8 billion Crown and executive government capital spending projected for the 2021-22 fiscal year.
The $2.0 billion stimulus injection will balance the need for smaller, short term projects to jump-start economic activity and get people back to work quickly with longer-term, large-scale projects that leverage multiple sectors over the next several years.聽 The capital injection includes new capital funding of more than $300 million for highways projects, $200 million for health infrastructure and $135 million for education infrastructure.
聽Yorkton Mayor Bob Maloney said the money is of course welcome news.
鈥淎s the Premier said this is great way to stimulate the economy,鈥� he told Yorkton This Week Thursday morning. He added he agrees with the focus being in capital projects.
鈥淚t will get people out there working. Nothing makes a community hum like people working.鈥�
Maloney said when capital projects are undertaken the workers are using restaurants, staying in hotels, and generally spending money where they are working.
In terms of how much money from the new stimulus package will be coming to Yorkton, Maloney said the exact dollar figure is not known.
鈥淥ur best guess is about $1.6 million, which is terrific news,鈥� he said.
Maloney said he anticipates the new dollars will go to a yet undetermined project, one not currently part of the City鈥檚 Capital Budget, which will see about $4.3 million from the tax pie invested in 2020.
鈥淲e鈥檒l do something new with this,鈥� he noted.
Allocation of $2.0 Billion to Build a Strong Saskatchewan
The $2.0 billion capital injection to build a strong Saskatchewan is allocated as follows:
鈥⒙犅犅犅犅犅� Approximately $1.37 billion for large infrastructure projects, including $103 million for health and $110.5 million for education, with additional allocations to be announced at a later date.聽 SaskBuilds will provide oversight as well as project management and procurement expertise.聽 Design, engineering, architecture, construction and project management costs are included in this total with the goal of ensuring projects are shovel ready by 2021-22.
鈥⒙犅犅犅犅犅� More than $300 million for highway projects for thin membrane surface upgrades, passing lanes including $46 million dedicated for upgrades to municipal roads and airports.鈥�
鈥⒙犅犅犅犅犅� Approximately $181 million for renewal projects to reduce deferred maintenance on provincial and third-party assets and reduce operating costs through energy efficiency.聽 This includes new allocations of $100 million for health and $25.9 million for education, with the remainder addressing priority projects in various other ministries and agencies.
鈥⒙犅犅犅犅犅� $150 million in a per capita payment through a new Municipal Economic Enhancement Program to support infrastructure projects in communities across the province.
Capital Injection To Have Major Impact On Municipalities, Construction Sector and Job Creation
Over the next two years, more than $320 million will be provided for municipal infrastructure through the $150 million Municipal Economic Enhancement Program, the $130 million Investing in Canada Infrastructure Program, and the $46 million targeted funding through the Ministry of Highways for municipal roads and airports.聽 This is without considering Municipal Revenue Sharing and other various municipal transfers highlighted in the 2020-21 estimates.
鈥淢unicipalities are the engines of economic growth in Saskatchewan,鈥� Saskatchewan Urban Municipalities Association President Gordon Barnhart said in the government release.聽 鈥淲e鈥檝e been advocating for years for the development of a provincial infrastructure program, and we鈥檙e extremely pleased to see our provincial government implement one to help our economy recover in these challenging times.鈥�
鈥淭he Saskatchewan Association of Rural Municipalities (SARM) is very pleased that the province has made the Infrastructure Stimulus announcement today,鈥� SARM President Ray Orb said.聽 鈥淚nvesting in municipal infrastructure projects will help rural municipalities in rural Saskatchewan and will certainly help the provincial economy to recover.鈥�
Construction, including maintenance and repair, has been designated an Allowable Business Service by the Government of Saskatchewan.聽 To ensure the safety of workers and communities, work sites will be required to follow all physical distancing measures and restrictions that remain in place through the five phases of the province鈥檚 Re-Open Saskatchewan plan.
鈥淧rior to the COVID-19 pandemic the provincial economy was already facing headwinds through depressed resource prices, anti-pipeline policies and rail blockades,鈥� Saskatchewan Heavy Construction Association President Shantel Lipp said.聽 鈥淭he announcement today will mean a big boost in the arm not only to the construction industry but to the province as a whole.鈥�
Based on Statistics Canada data, projects funded through the investment announced today are expected to support approximately 10,000 jobs depending on the type, size and duration of each project.聽
This increased investment in infrastructure funding supports the province鈥檚 Growth Plan commitment to build strong communities by investing $30 billion in infrastructure over the next decade.
