November 29, 2024 | Advertise with us

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Saskatchewan's deficit more than doubled from budget to $743M

The Saskatchewan government is projecting a deficit that’s more than double from budget, largely due to higher crop insurance payouts following a difficult farming season.

The provincial government says increases to crop insurance claims later in the growing season are the main reason for Thursday’s mid-year deficit forecast of $743.5 million, which is up more than $470 million from the budget.

In a statement, Minister of Finance Jim Reiter said, “Although weather conditions were good early in the season, very dry conditions in many regions of the province during the summer significantly impacted crop yields and quality, particularly with canola. These fluctuations led to higher crop insurance claims, increasing the agriculture expense theme by $385 million, or 25.1 per cent, from the 2024-25 budget,” the province said in a news release, adding it’s important to note that producers help fund the crop insurance program through premiums they pay into it.

Reiter says the province also plans to spend more to deal with pressures in prisons and hospitals. Total revenue is expected to increase by more than $275 million from budget time, which the province says will partially offset the increase to expenses.

MLAs debate affordability measures in Legislature

Affordability was the topic of debate in Question Period yesterday, with the NDP asking the government to remove PST on groceries.

NDP leader Carla Beck said, “Saskatchewan families are struggling with the cost of living today…and they need a break today not in the spring when they file their taxes. We need to cut families a break right now in this province. Later today, we are going to be bringing forward another emergency motion to take the PST off of food in the grocery store.”

NDP finance critic Trent Wotherspoon put forward an emergency motion to remove the PST on gas and another motion to remove the PST on groceries. Both motions did not go to a vote.

The NDP’s proposal is in line with Jagmeet Singh’s federal NDP proposal to remove GST on groceries, heating, and kid’s clothing. Singh recently challenged the premiers to match his proposal. In response, Premier Scott Moe said, “Our government is now providing a carbon tax exemption on home heating, over the objections of the Trudeau government which you support. If you are serious about making life more affordable for Saskatchewan people and all Canadians, you should insist that the Trudeau government remove the carbon tax on home heating for all Canadians. Better yet, you should insist that they eliminate the carbon tax completely on everything for everyone.”

Moe responded to Beck’s question by saying, “Just to be clear with Saskatchewan residents, there is no PST on groceries in this province.” ‘Basic groceries’ are exempt from the provincial sales tax, however, some grocery products do have PST charged. A full list of food and beverage items subject to PST can be found here(opens in a new tab) (page 14).

Moe and the Saskatchewan Party will be passing several affordability measures of their own this session. The government will be reducing income taxes, expanding tax credits, and removing the carbon tax from home heating. In Question Period, Finance Minister Jim Reiter said, "The Opposition campaigned on the short-term, temporary reduction in the gas tax, Mr. Speaker. The voters have spoken. We campaigned on that platform. We're going to honour that platform. Mr. Speaker, if the members are actually concerned about affordability measures and the people of Saskatchewan have spoken, are they going to block the bill that I gave notice to today? Or we could pass it today if they would support it."

Affordability consistently polls as a top issue for voters.

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Changeroom policy consultation to begin

The Government of Saskatchewan is set to begin consultations regarding the proposed changeroom policy for schools.

The issue received considerable attention during the election campaign when Premier Scott Moe said his party would implement a change room policy requiring students to use change rooms that conform to their biological gender as its “first order of business.” Moe later softened his language but said that didn’t mean the policy wouldn’t go ahead—he wanted his new education minister to consult with school divisions before implementing it.

The new Minister of Education Everett Hindley will begin consultations with school divisions soon. He said, “I want to be able to get a lay of the land to see what’s currently in place across Saskatchewan in various school divisions, and then from there have some consistency right across our province.” Saying he hopes to work to find a policy that works for everyone and all students feel safe, he does not want to rush to a solution, “I don’t think it’d be appropriate for me to say before having talked to school divisions about what their existing policies are and what might need to be changed or improved upon.”

NDP MLA Jared Clarke is speaking publicly for the first time about this issue, saying the Premier targeted his two children and ‘unimaginable hate’ has come towards his family. Clarke said, “What do you think would be going through a 12-year-old’s mind when they hear the premier of their province targeting them? What if this was any other child of any other MLA in this chamber? Would this be acceptable?” He continued, “The premier owes my children an apology. He owes all transgender people in this province, especially kids, an apology for how he has made them feel so unsafe over the last year,” said Clarke.

Last fall, the Saskatchewan Government passed Bill 137, the Parental Bill of Rights which invoked the notwithstanding clause of the Canadian constitution to ensure parents must provide consent if a child wants to change their gender identification in school. The law was challenged and is still before the courts.

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‘Premier’s are United’: Moe provides an update from First Ministers’ meeting

Saskatchewan Premier Scott Moe attended an emergency First Ministers’ meeting hosted by Prime Minister Justin Trudeau to discuss US President-elect Donald Trump’s proposed tariffs.

Speaking at an Agribition reception at the legislative building, Moe said that “Trump’s suggestion that things are the same on the Mexican border as they are on the Canadian border are unjustified,” however his concerns on protecting the border were justified, saying “I would think that we should do that. I think all Canadians should be in favour of making sure that our borders are secure,”

Moe said most premiers are united, “During the call with the Prime Minister yesterday regarding the US tariff threat, most if not all Premiers emphasized the need for increased border security to stem the flow of illegal drugs and migrants across the Canada-US border.”

Alberta Premier Danielle Smith released a statement following the meeting, saying Canada needs to get to 2% GDP spending for defence, and saying Alberta is needed for energy security and this is a time to support those industries, “I urged the Prime Minister to withdraw this energy production cap immediately as a show of commitment to North American energy security and partnership.” Smith also said Alberta would work directly with states and trading partners.

In our other neighbouring province of Manitoba, Premier Wab Kinew also expressed concern over the tariff plan saying it would plunge Manitoba into a recession. Kinew said, “The Premiers are united on this one.” Kinew said Canada needs to get to the 2% NATO target, bolster the RCMP to strengthen the border, and appease Trump to ensure the trade ramifications on agriculture and energy are not detrimental.

More news and info

• Lingering vacancies at Sask. Court of King's Bench contributing to delays, potential case dismissals (CBC News)

• Small businesses in rural Saskatchewan struggling amid Canada Post workers strike (CBC News)

• 'A little candy today for pain down the road': Former Bank of Canada governor on GST holiday, rebate cheques (CTV News)

• Watchdog to tighten rules on lobbying of ministers and MPs by corporations (The Globe and Mail)