Premier Scott Moe addresses soaring resource prices

Premier Scott Moe has laid out the possibilities of what the Saskatchewan government could do with a resource revenue windfall but cautioned it would only come later into the year.

Oil and potash prices have soared in the last few months, which has meant a jump in resource revenue for the provincial government.

“All Saskatchewan people own those natural resources so we would look for ways that that could be dispersed that benefits all Saskatchewan people, not just certain segments of people because we’re all equal shareholders ultimately in that resource,” said Moe.

On Thursday, Moe said the options could include reducing the deficit, creating a sovereign wealth fund or putting out a direct payment to citizens.

“But you cannot make that decision 40 days (into the fiscal year) when we still are in a deficit situation. But I would look for some comments with respect to that possibly by the first quarter, certainly by the second quarter, should our natural resource prices remain strong through the next number of months,” said Moe.

The Opposition NDP has frequently asked about what plans the government has, or should have, to share that windfall with the people of the province, given current inflation rates.

Earlier this month, the NDP floated a new Windfall Profits Surcharge to increase royalties at high prices, but that was rejected by the provincial government.

When asked whether he would put the extra money into files like health or education where some criticism has been piled on since the spring budget, Moe said there have already been significant increases in those budgets this year.

“We have to be very careful not to annualize that into yearly investment by the government because in two years, three years those prices may be reduced and ultimately we’re faced with a situation where we may be hiring or firing health-care workers on what the price of a barrel of oil is or what the price of a tonne of potash is,” said Moe.

The province forecast $2.9 billion in resource revenues and a deficit of $463 million for 2022-23.