ACEC-SK Supports Saskatchewan Government's Commitment to Capital Investment

The Association of Consulting Engineering Companies – Saskatchewan (ACEC-SK) supports the Saskatchewan government’s continuing commitment to capital spending in the 2017-2018 the provincial budget that includes $3.7 billion for investment in Saskatchewan’s infrastructure.

The $3.7 billion is made up of $2.1 billion Crown investment with the remaining $1.6 billion investment to be made by Government ministries and agencies. ACEC-SK has long advocated the economic benefits of capital investment to meet the challenge of a growing province.  It is the right time for public sector capital projects because they create design and construction jobs during a time of limited private sector capital investment.

There are many economic benefits to capital investment.  Obvious ones include keeping many people employed in this province as well as creating new avenues to bring goods to market.  However, this also creates long-term cost savings for the government through regular maintenance of critical infrastructure rather than much heavier investment necessary to replace prematurely aged infrastructure.

The Integrated Capital Plan outlines how ministry and agency capital spending commitments will be broken down:


We understand the $2.1 billion Crown investment breakdown looks like this:

While spending commitments to many of these projects are not new, ACEC-SK is pleased investment was not stalled, or worse, discontinued. While no commitments were made in the 2017-18 provincial budget for long-term capital spending, we are hopeful that planning for future investment is underway.

One significant concern is the implementation of PST for construction labour.  This is not a practice in neighbouring jurisdictions so it immediately puts Saskatchewan at a disadvantage regarding attracting new private sector capital investment into the province at a time when it is greatly needed.

However, ACEC-SK was heartened by the plan to return to a balanced budget in three years as opposed to one year as was originally mused by the government.  Cutting too deeply and/or reducing too many foundational services all in one year would have provided too much of a shock to Saskatchewan’s already vulnerable economy.  We also support the reduction in corporate income taxes as this is another tool to encourage private sector investment in Saskatchewan.

Overall, ACEC-SK believes the Saskatchewan government got it right to make capital investment a priority for the taxpayers of Saskatchewan.  Stable capital spending will net significant economic benefits in the years to come.


March 23, 2017







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