Chamber content, would have liked PST addressed in provincial budget

According to the 2019-20 budget documents, housing starts in the province fell by 26.4 per cent in 2018, while non-residential builds fell by 9.6. Building permits overall were down 16.7 per cent last year. While there are no plans in the near future to remove PST from construction projects, Finance Minister Donna Harpauer said each year the government reviews its revenue tools and said as more money comes in, decisions will be made on how to proceed.

Targeted spending on mental health and addictions took centre stage in the budget, increasing by $29.8 million to $402 million. From an employer perceptive, Oberg is excited for the bounty of new funds.

“I see that more and more there is a need for mental health funding to address the exhaustion that takes place in the workplace,” he said. “The fact the province is stepping up to help with that is a good thing.”

The budget included more money earmarked for highway investment, including $65 million over five years for a new Enhanced Intersection Safety Program.

Oberg appreciated this but would have liked more money kicked in for the urban connector program, noting a number of roadways in the Battlefords that could benefit from the program.

Government debt is forecast to come in at $21.7 billion as of March 31, 2020, up $1.8 billion from the third quarter update and $1.7 billion over last year’s budget, which the province said is due to further capital investment. Public debt is forecasted to continue to rise to $23.1 billion in 2021, $24.6 billion in 2022, and $26 billion in 2023. This equates to a debt-to-GDP ratio of 24.1 per cent this year, 25.8 in 2020 and 26.5 in 2021.

Net debt is on pace to be $12.1 billion by March 31, the third lowest among provinces at 14.8 per cent of GDP, bested only by Alberta and British Columbia at 8.2 and 14.6 per cent, respectively.

Oberg said the province still has work to do on this front and would like to see the government move to pay down the rising bill sooner rather than later. However, he made note of how Saskatchewan’s debt-to-GDP ratio is still relatively good, comparative.

FEDERAL BUDGET FALLS SHORT

The federal budget, also tabled last week, falls short to address the “fundamental issues undermining the ability of Canada’s business owners to create more jobs and economic prosperity,” according to the Chamber.

While the budget delivers on some of the Chamber’s national advocacy priorities, particularly in the areas of skills and infrastructure, Oberg said it fails to provide concrete measures to address the tax and regulatory burden on businesses.

“There are no business tax changes to entice,” he said. “Our economy is sluggish, our oil industry is hurting, and as much as I appreciate the direction with electric cars and others things, they have left our the West and what drives our economies isn’t reflected at all.”

While the federal books did deliver on some of the national Chamber’s desired items — ensuring high-speed internet is Canada-wide by 2030, funding to enhance apprentice programs in skilled trades — missed the mark with no commitment to review the taxation system to make it fair and less cumbersome, moves to eliminate interprovincial trade barriers, and a clear strategy to move the Trans Mountain pipeline forward, according to a press release.

The federal budget contains funding to move forward on creating a national pharmacare program. While Oberg maintains a need for robust public health care, holds trepidation over the idea.

He worries introducing a nationwide system to help a small segment of the population who don’t have access to coverage could bring an unneeded increase in cost to small business.

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tyler.marr@jpbg.ca

On Twitter: @JournoMarr

by Tyler Marr

Chamber content, would have liked PST addressed in provincial budget

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