Calmer Sask. assembly debates taxes as deficit balloons

The opening week of the fall sitting of the Saskatchewan Legislature acted as a post-script to last month's election campaign, with the government and Opposition promoting their plans to address affordability concerns.

The Opposition attempted twice unsuccessfully to introduce emergency motions to have the government adopt NDP pitchesfor taxcuts.

On Tuesday, NDP finance critic Trent Wotherspoon called for the government to suspend the provincial fuel tax for six months, saving drivers $0.15 per litre on gasoline. Opposition Leader Carla Beck campaigned on the measure and has been calling for it for months.

Alberta, Manitoba, Ontario, and Newfoundland and Labrador have all suspendedfuel tax in recent months.

During debate in the assembly, Finance Minister Jim Reiter said,"[Wotherspoon]brought this up so many times last spring in session. He never answers the question, which is simply this: all that gas tax plus goes towardthe highways budget. Is he going to cut the highways budget?"

Wotherspoon responded, "no, we wouldn't cut the highways budget. We'd cut the mismanagement, scandaland waste of that Sask. Party government."

Afterthe debate, Wotherspoon introduced his emergency motion to have the gas tax cut.

The pitch predictably ran out of gas before Wotherspoon could get comfortable in his chair.

Premier Scott Moe said the plan amounted to a "tax holiday." He backed the government's campaign promises, committed to in the throne speech, for predictable tax changes to personal income taxes that he said wouldeventually see an estimated 54,000 people no longer paying income taxes.

It was no shock when, on Thursday, Wotherspoon took to his feet again to introduce a motion to have the government remove the PST on some grocery store items, like prepared meals and small packaged items.

Once again, that pitch was swatted down by the government.

During the debate on Thursday, Moe incorrectly claimed, "I'd reiterate one more time, Mr. Speaker, there is no PST on groceries in the province of Saskatchewan."

Technically, PST is not applied to all grocery items. But some items like granola bars, rotisserie chicken, snack foods and ready-to-eat sandwiches and salads do bear the tax.

The NDP estimates cutting that tax would cost the government $25 million in tax revenue.

WATCH | Political panel discusses MLA Jared Clarke's speech, throne speech:

Saskatchewan Political Panel | NDP MLA Jared Clarke calls out Premier Scott Moe in question period

1 day ago

Duration 4:57

Saskatchewan NDP MLA Jared Clarke says the premier owes him an apology. Clarke says Scott Moe's proposed 'change room' policy targeted Clarke's own children, who are trans. The panel discusses the impact of his speech. Adam Hunter covers politics for CBC Saskatchewan. Murray Mandryk writes a political column in the Regina Leader-Post/Saskatoon Star Phoenix. Stefani Langenegger is the host of CBC's Morning Edition.

Mid-year financial update shows rising deficit

After Thursday's debate, the final of the week, the government held a news conference to announce the details of its mid-year financial update, which featured a deficit projection that hasballooned since March's budget projection.

When the budget came out in the spring, spending was projected to exceed revenue by $273 million. According to the mid-year update, the deficit has more than doubled to $744 million.

The government blames much of the change on higher-than-expected crop insurance claims due to dry conditions hurting crop yields.

The crop insurance payout grew 25 per cent from the budget, costing the government an extra $385 million.

"We have an export-based economy agriculture, mining, oil and gas where it's going to fluctuate," Reiter said.

"That's the nature of the beast. It's my job now to try to mitigate that as much as possible and hope that we get to a good bottom line."

The timing of the mid-year update is not unusual.Last year the government released it on Nov. 27.

But Wotherspoon questioned the timing regardless.

"Here we are three weeks out from an election campaign and Jim Reiter and Scott Moe say 'oops, we uh, missed this thing by $500 million.' Almost half a billion dollars off, just three weeks out from an election campaign. It's almost unbelievable."

Additional expenses expected forhealth care, prisons and fighting wildfires.

The revenue projection also went up to$20.1 billion, an increase of $275.1 million from budget.

Total gross debt is forecast at $35.2 billion, an increase of $388.5 million from budget.

WATCH | Sask. projected deficit to increase:

Sask.'s mid-year financial update includes $500-million increase in deficit forecast

2 days ago

Duration 2:05

The mid-year financial forecast is out and its not good news for the newly re-elected Saskatchewan Party. When the budget was released in the spring, the province projected a $273-million deficit. Now, according to Finance Minister Jim Reiter, that number has almost tripled to $744 million.

Uncharacteristically quiet chamber

The difference from the end of the spring sitting to the opening of the fall sitting is stark. Not only are there nearly twice as many Opposition MLAs, but the animosity between the Speaker and the government House leader is gone.

Perhaps the broken relationship between former Speaker Randy Weekes and the Saskatchewan Party government, which came to a head last May, is the reason why the throne speech included a section about improving behaviour in the assembly.

New Speaker Todd Goudy shared that message after he was installed on Monday morning. Goudy was the only candidate for the role.

"If we are going to be out of control in this place, that won't go well. So I would ask that the decorum and the [honourable]members of this institution will be grown up and adult," Goudy said.

Weekes was in the audience for Monday's speech and again sat on the floor on Wednesday, as is his right as a former MLA. Weekes sat behind the Opposition NDP, in seating thatis usually reserved for former sitting members of that party.

Moe told reporters on Monday he expects "raucous" debate during the session,which he said is good for democracy. The debate to this point has been docile.

The 60 MLAs only have sixmore days during this sitting to follow the lead of the Speaker and the throne speech. The abbreviated fall sitting will wrap on Tuesday, Dec. 10.