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MLA: Significant payouts for damages

Flood recovery lowers the provincial surplus



The province's estimated $382 million surplus will be lower than originally expected once the fiscal year comes to a close in the spring of 2012. "It's hard to put a number on it right now because there are different parts to it," said Dustin Duncan, MLA for Weyburn-Big Muddy and Minister of Environment.

"There are the disaster payments that will go out to individuals that are eligible for that. There is also the assistance that we are going to provide to municipalities to help deal with the issues municipalities have suffered," added Duncan. "We're seeing significant effects from the flooding on things like our highways, our road system and agriculture. Some of that work is starting, but it's really difficult to put a number on it."

"We're taking all of this into account, and as we're moving through summer we're starting to get a better idea of the dollar amount, but right now it's difficult to say," said Duncan.

When Ken Krawetz, Minister of Finance, released the first quarter financial report, it highlighted that overall expenses are expected to be up $107 million from what was outlined in the provincial budget this year. This is mainly due to the flooding costs and the anticipated settlement with the Saskatchewan Teacher's Federation.

In a recent press release the provincial government estimated the costs of the flood recovery at $60 million dollars, but real figures for this amount will still not be known for some time.

The federal government will be helping out with the final amount that the province has to pay for the recovery effort. At this point their are too many variables at work to get a concrete approximation as to what the flood recovery will cost the province. An new estimated cost is expected to be released in the fall as disaster assistance payments are made and more work is done on the recovery effort.

"We are still on track (for the budget), despite the fact that we know there will be significant payouts for flood damages," said Duncan. "We have a sizable rainy-day fund, over $700 million and are in good position."

Saskatchewan's economy is excepted to remain in its strong position after the flood recovery is paid for. One of the factors that has played a role in Saskatchewan's strong economy is the oil industry.

"Flooding had a significant impact on people who work in the oil industry. We've seen an impact not only on that part of the economy, but also the royalties that the government receives from oil," said Duncan.

"That has shown a bit of an impact because of less production," said Duncan. "It's been encouraging to see all these companies that have been impacted that they're trying to keep their employees employed in other jobs, or helping them seek work else where."

One way that oil companies kept their employees working was helping with the removal of flood water. Many companies offered the use of their vacuum trucks to pump water out of flooded areas. The most notable example of this was the long line of trucks that pumped water from the ditch along the north end of Highway 39 in Weyburn.

The provincial government will assist local municipalities pay a portion of the cost of their individual flood recovery efforts. At this point Weyburn has spent over $1 million dollars on flood recovery, but three large bills still have to come in. The cost of the Weyburn flood relief effort is expected to be released in the near future.