Yesterday's provincial budget included a commitment to capital spending on projects like the renewal and expansion of the Victoria Hospital in Prince Albert. (file photo/paNOW Staff)

By Trevor Redden

Capital Commitments

Prince Albert business community sees positives in provincial budget

Jun 16, 2020 | 12:25 PM

Two representatives of the Prince Albert business community are giving yesterday’s provincial budget a thumbs up.

Like the rest of the world, the Saskatchewan economy has been affected by the coronavirus pandemic, with rising expenses and falling revenues combining for a projected $2.4 billion deficit, the largest in the province’s history.

However, the budget document released by Finance Minister Donna Harpauer stayed committed to $3.1 billion in capital spending, and maintained a focus on keeping taxes low, instead aiming to address the deficit through “improved competitiveness and continued investment into the diversification of the province’s economy.”

Dan Yungwirth, second vice president of the Prince Albert Construction Association, emphasized the importance of keeping capital spending intact.

“It’s definitely welcome news to have those dollars spent. There’s certainly a commitment I believe, maybe a little less formally, but to have that money spent as much as possible with Saskatchewan contractors,” Yungwirth said. “The construction industry has shown time and again that in times of hardship we’re a fantastic industry to help carry the load and try to help get out of a depression or a recession, and we’re really looking forward to doing that again.”

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A notable component of the planned capital spending is $15 million this year to support planning, design, and procurement activities for the more-than $300 million project for a renewed and expanded Prince Albert Victoria Hospital.

Yungwirth said no Prince Albert contractor is large enough to handle the whole project, but there will be a major local spinoff.

“Whether it’s journeyman plumbers or electricians or whomever, not all of that labour is going to come from outside of Prince Albert. Regardless, there’s a heck of a lot of spinoff for the industry directly, and even more so for the local economy going forward because it’s going to mean a lot more staff to run that hospital whether it’s doctors, nurses, janitors, caretakers, you name it,” Yungwirth said.

Elise Hildebrandt, CEO of the Prince Albert and District Chamber of Commerce, echoed Yungwirth’s comments, stating capital spending will help get things moving.

“It will help us get our province restarted, and it will keep people working so we have money flow that continues to run,” Hildebrandt said.

Much like the government is focused on rebuilding the economy, Hildebrandt had a message for people in the region.

“If I could continue to drill anything into our community, in everything that we do try our best to support our local people first. Our local businesses, our local everything,” Hildebrandt said.

As for a commitment to low taxes despite the growing deficit, the Canadian Taxpayers Federation sees the budget as a positive for families and businesses across the province.

“Saskatchewan’s economic recovery is just beginning and the Saskatchewan budget makes sure the province’s families and businesses aren’t held back with higher taxes,” Todd MacKay, the organization’s Prairie director said in a statement. “We’re deeply concerned about the growing debt, but getting Saskatchewanians back to work is the best way to get those numbers under control so it’s important to keep taxes from weighing down families and businesses.”

Part of the 2020-21 budget is the re-introduction of automatic annual indexation of the personal income tax system, designed to ensure inflation doesn’t carry individuals or families into higher tax brackets.

MacKay applauded this policy, calling it a basic matter of fairness.

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trevor.redden@jpbg.ca

On Twitter: @Trevor_Redden