Election 2011 - The issue: the economy

QUESTION: The economy is rolling along at present. What does the government need to do over the next four years to keep the momentum going?

BLENKIN: Both small business owners and labour unions in Saskatchewan have raised concerns about a looming labour shortage that will affect growth in our Province. An NDP government will work with post-secondary partners - such as SIAST, the regional colleges, Gabriel Dumont Institute and Technical Institute, the Saskatchewan Indian Institute of Technologies, and the Saskatchewan Apprenticeship and Trade Certification Commission - to expand and update training opportunities.

We will also work with the federal government to enhance the Saskatchewan Immigrant Nominee Program to encourage needed skilled workers from other countries to fill vacancies in our labour market.

Small businesses are one of the biggest drivers of Saskatchewan's economy, employing about one-third of all Saskatchewan workers and accounting for approximately 35 per cent of the province's Gross Domestic Product (GDP).

In the last year in Saskatchewan the number of entrepreneurs who are self-employed dropped by 8,600.

With some businesses growing faster than the population, some areas including skilled trades face a shortage of skilled labour.

To give small businesses the best chance at success and an opportunity to thrive, an NDP government will lower the small business tax rate to zero per cent, something the Sask Party has refused to do.

OTTENBREIT: To keep the economy on track and for continued growth over the next four years, investor confidence in Saskatchewan must be maintained. The province currently has its best credit rating ever, "AAA", due to a combination of debt reduction and responsible fiscal management. Part of this also means stability in our resource revenue structure. It is important to maintain an attractive business and personal tax structure, invest in roads and highways, invest in post-secondary and trades training, invest in innovation, continue to explore trade relationships and opportunities, and invest in our Crown Corporations. We must always be mindful that a strong economy is not the end goal in itself. A strong economy provides the means for a better quality of life for Saskatchewan residents. I believe our record over the last four years clearly demonstrates this commitment.

QUESTION: There has been a move to larger economic development regions. Some suggest that has been good in terms of larger projects, but not as effective helping a hair dresser in Rhein. What is your view of the current system, and what changes might be needed?

BLENKIN: I sat on the Entrepreneurship Council with Enterprise Saskatchewan for almost three years. During my tenure there I see how smaller businesses were being left out of the consultation process and the major focus was on multinational companies.

Saskatchewan people have a history of working together, and we believe that given proper incentives economic development regions will work together without being arbitrarily forced into larger regions. The New Democratic Party is concerned that forcing the creation of larger regions is an attempt by the Sask Party to hide a reduction in funding to the economic development regions such as the 25 per cent reduction in funding this past fiscal year.

OTTENBREIT: The current Economic Regions are working. Previous to these being introduced under a Saskatchewan Party government, the province was failing to attract larger regional primary and secondary projects. The local municipal economic development offices are more responsive and effective to small business development. With larger economic regions we are seeing regional projects that serve a larger area and create more economic opportunities and jobs. Opportunities have opened up in agriculture, education, energy, mining, oil and gas, housing and land development, manufacturing, service and retail, and many other areas. The former REDAs may not have had the capacity to facilitate these opportunities. I would like to see municipalities and the Economic Regions build positive relationships and continued awareness of the region's needs. This relationship must be built on respect and responsiveness.

QUESTION: Potash is critical in terms of the economy in the local area. Where do you see the industry going? What is government's role? Do you see the royalty structure changing? If, so what impact might that have on the industry?

BLENKIN: We hear from potash executives that there is a "new norm" in the potash sector of increasing demand, rising prices and higher profits. The government's role is to ensure that the owners of the resource-Saskatchewan families-get the best possible return on that resource while keeping the industry strong and vibrant. We believe an independent expert review of the current royalty and taxation system will result in a simpler, fairer system that will provide additional benefits to the people of Saskatchewan while providing fairness to the companies that mine and export our resource as well. We can't pre-judge what the independent expert review will suggest in terms of precise changes, but we believe it's necessary to ensure the people of Saskatchewan get a fair return on their resource.

OTTENBREIT: Currently potash is the largest economic driver in our area of the province aside from agriculture. We are aware of major expansion of current mines, and the possibility of new mines with companies like BHP Billiton, and interest from K&S, Agrium, and others. There is much future potential to be realized. The government needs to balance the economic viability of expansion with the interests of the people of Saskatchewan. We currently have one of the highest potash royalty rates in the world. The Kingdom of Jordan is at 11 per cent, and our next competitor in Canada is New Brunswick at six per cent. Saskatchewan's royalty rate is 22 per cent, before deductions that are in place to offset the capital investment companies are making. This rate was put in place under the Calvert NDP administration and the Saskatchewan Party supported it. It is fair for the potash companies and the people of the province and threatened changes can risk Saskatchewan's economic momentum and chase away possible future investments.

QUESTION: In spite of the strong economy there is concern more and more people are becoming working poor as housing rentals, utilities and food costs rise. We see more people at food banks as an example. What will the government do to alleviate the financial squeeze of those making lower wages, but still working?

BLENKIN: A New Democratic Party government will offer programs that make life more affordable with rental controls and affordable housing. In addition, we will make sure essential utility services like heat and electricity are the lowest cost in the country.

The NDP has a plan to offer tax breaks to families raising children or taking care of elderly loved ones, and a plan to make child care more affordable for Saskatchewan families.

We would introduce a children's dental health program to provide free, basic dental health care to children aged five to twelve, and increase the basic income supplement for low income working families.

We are committed to ensuring that people are not left out of the current growth in our economy and will be announcing further plans to address some of the issues facing low income families.

OTTENBREIT: The Saskatchewan Party government has begun numerous initiatives to help with the rise in living costs. In the area of housing, while the NDP are talking about rent control, experts and other jurisdictions with experience tell us it doesn't work. In fact the rent control we did have in Saskatchewan was ended under the former administration in 1992. What may provide short term relief ends up having the opposite effect over time, by limiting or stopping new investment in rental housing and limiting the improvement of properties by landlords. This was the reason the NDP ended rent control in 1992. Successful examples show that an increase in available housing is what is needed to stabilize costs. To that end the Saskatchewan Party government has made significant investment in low income subsidized units with 850 complete and 1100 more underway provincially. Locally we have seen 34 units through Yorkton Parkland Housing, 10 transitional youth spaces, the second and third Habitat for Humanity home is underway through our $3.5 million provincial partnership with that group, and 22 new units will be available in the new year through our partnership with Yorkton Housing. Our Saskatchewan Advantage Housing Plan is investing $252 million to develop 4600 entry level homes and affordable housing units over the next five years, and we are seeing some local projects taking shape that are utilizing this program.

We have also gone to great lengths to leave more money in people's pockets and add supports. In fact, 114,000 of the lowest income earners in Saskatchewan no longer pay any provincial income tax, and families have enjoyed significant income and property tax cuts. We have increased care giver and other tax credits, significantly increased the Seniors Income Plan, increased the minimum wage three times, increased the rental supplements and shelter rates six times and indexed them to the cost of living, and increased social assistance and transitional employment allowance for those that need help.

We have also increased education and employment opportunities through a stronger economy. There is no doubt more to be done, and we will continue that work within a balanced budget.