Federal budget lacking details for provincial leadership

In a change from previous years, Premier Scott Moe and Saskatchewan Finance Minister Donna Harpauer learned the details of the federal budget at the same time as the rest of the country.

Normally, there would have been a meeting to explain the details prior to budget day, but that didn’t happen this year.

“We hope that the federal government (will) — and I’m sure they will — engage over the course of this week into next week with the provinces on what are some of the details of the programs that were announced today and how we can apply them to best suit folks in communities right across Saskatchewan,” Moe said after the budget was released Monday.

However, in discussing their reactions to what was announced, Moe and Harpauer said in several instances that they needed more details.

Moe started his comments with the positives: He appreciates the capital money for VIDO-InterVac, matching the money the province put in for a Level 4 containment laboratory. Moe believes that means it looks like the group will be chosen to be Canada’s Centre for Pandemic Research.

Moe also said the $3 billion for long-term care across the country is a positive from the budget, but he has questions about what it could be applied to.

“It isn’t what the provinces have most certainly asked for, in an increase in the Canada health transfer, which doesn’t seem to be addressed in this budget. But any funding into our health-care delivery, including long-term care, is appreciated if their parameters around those dollars are workable for our Saskatchewan health-care system,” said Moe.

He has similar questions about the tax incentive for carbon capture and storage and whether it could be applied to enhance oil recovery.

Harpauer was disappointed about the health transfer money and said she was also disappointed to see mental health wasn’t made a priority by the federal government in the budget like the province did in its budget.

There’s about $1 billion for the tourism sector, which Harpauer was happy to see.

“In phone calls with Minister (Chrystia) Freeland, I have raised this particular issue a number of times, of how our convention centres and those venues that can no longer hold functions are indeed impacted very deeply and for a long time because of travel restrictions. So the details on that, I think, will be very important,” Harpauer said.

When it comes to the big-ticket item in the budget, the $30 billion for child care, Harpauer said it depends on the details of the plan. She hopes it can be flexible about where the money goes and whether it could be put to early childhood learning.

Harpauer also has questions as to what extent the province will be expected to match funds on that front.

“My concern is that it doesn’t tie up dollars that we would maybe like to spend elsewhere, such as mental health and addictions. However, they welcome some dollars; we don’t know how much that will be,” explained Harpauer.

One aspect of the budget many in Saskatchewan will be happy to see is a return of some of the carbon tax dollars farmers spend on grain drying. But Moe was almost dismissive of the change, saying it shouldn’t have been charged in the first place.

“The fact that they’re returning it now and going through a number of bureaucratic hoops, I suppose, is appreciated,” said Moe.

Moe said that would have been an area where the federal government could have worked more closely with the provinces, instead of stepping in with the federal backstop.

The federal government will add to the federal debt in this budget, bringing it above $1 trillion for the first time, after a $354-billion deficit for the year just past.

“I think absolutely every Canadian should be concerned about the federal debt. It is significant and it is growing beyond anything we’ve ever had,” said Harpauer.

When asked about Saskatchewan’s rising debt and deficit, Harpauer said she’s also concerned. As well, she said the province has managed that tightly and said the province has the lowest debt-to-GDP ratio out of the provinces.