A healthy resource sector is key to generating revenue and strengthening the economy in the months and years to come, according to Saskatchewan Energy and Resources Minister Bronwyn Eyre.
“Minerals, oil and gas will be major drivers in restoring the economy as we emerge from the COVID-19 pandemic,” said Eyre in an interview on Monday, June 22. “These are challenging times right now, and it’s hard to see exactly what will happen in the future.
“But I’m very optimistic because I think we’re in a very strong position for recovery.”
Eyre said the Saskatchewan government was poised to deliver a balanced budget before the COVID-19 pandemic hit.
“We were on track for a balanced budget last year and this year going forward into the next fiscal year,” she said. “But then suddenly the world changed. The important thing to remember is that the $2.4 billion deficit this year is due entirely to the impact of the pandemic. It’s not a structural deficit.
“All things considered, Saskatchewan is in a stronger position than other provinces.”
In a statement issued at the time of the budget release June 15, the provincial government said revenue this year is forecast to be $13.6 billion, down $1.2 billion, or about eight per cent from last year; a result of the shuttering of domestic and global economies to contain the spread of COVID-19, combined with the oil price collapse.
Eyre said the provincial budget laid out a capital spending plan aimed at stimulating the economy, creating jobs and encouraging capital investment.
“The budget earmarked $3.1 billion in 2020-21 in investment to build hospitals, schools, highways and other infrastructure across the province,” she said. “That capital investment is going to be very important because it will generate future income. It’s the first year of an enhanced two-year $7.5 billion capital plan.”
Eyre said the investment in health care and education benefits the entire province. Locally, spending on improvements to Highway 16 from Clavet to the Manitoba border; Highway 7 from Rosetown to Kindersley, Highway 12 to Highway 312; and Highway 5 east of Saskatoon will increase safety.
In addition to direct capital investment, industry incentives also stimulate job creation and encourage resource development.
She noted the Targeted Mineral Exploration Incentive (TMIE) program, launched in the fall of 2018, has resulted in an increase in mining exploration activity and investment in the northeast part of Saskatchewan near Creighton. The program encourages drilling activity in support of exploration for base metals, precious metals and diamonds.
“This is about exploratory mining,” said Eyre. “It’s important for junior mining companies to come to Saskatchewan.”
She said over the past decade, more than $2.3 billion has been spent on mineral exploration in Saskatchewan, and $72.3 billion has been generated.