Chapter 5 New Century 2000S and 2010S
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sluggish economic and population growth, in turning Action Saskatchewan Version government austerity and a ‘bunker 2.0 from a blueprint into a working plan ISSUES OF THE DAY: mentality’ among the business community. of action. • Provincial income tax “Improving the attitude of all people in In addition to working on Action • Provincial sales tax the province is a major endeavour, one Saskatchewan , the chamber’s legislative • Corporate income tax and that we all recognize as the first step in lobbying efforts continued unabated in the property taxes making Saskatchewan a leader in year 2000. • Skilled labour shortage economic growth,’’ Davis said in the 2000 annual report. The WCB also came in for criticism from the • Red tape Labour Committee on administrative issues, • Hours of work Along with fostering a change in attitude such as the claims process, rate-setting • PST and GST harmonization through the Action Saskatchewan initiative, methods and its inability to measure the the chamber also needed to continue its effectiveness of programs, like early • Review of the K-12 education system focus on legislative and regulatory issues. intervention. The committee noted that an experience rating system would help bring “We are all aware that change will take rates down, reducing the need for annual place,’’ Davis said. “What we need to do is rebates and payout of excess funds back drive the change by recognizing the realities to employers. of our economy and taking proactive steps The new millennium brought new to lead through them.’’ Having successfully lobbied the NDP challenges for the Saskatchewan Chamber government for changes to the personal of Commerce. New (and newly re-elected) Action Saskatchewan Version 2.0 income tax system, the Finance Committee governments and new premiers required highlighted four sectors as key to the set its sights on business taxes, specifically new approaches and new attitudes from province’s future economic growth: value- small business tax, in 2000. “The main the chamber. added agriculture or agri-value, creator of jobs is small business, and our biotechnology, tourism and transportation. small business tax rate is the second-worst In 2000, president T.G. (Casey) Davis, a in Canada,’’ said Norm Halldorson, Finance Saskatoon lawyer, spoke about the need for The chamber’s five committees – Finance, Committee chair. an attitude adjustment in the province, Economic Development, Education, which had come through a long period of Environment and Labour – all played a role 51 Top left: Political Forum, 1978 Centre: Board Members met with new Saskatchewan Liberal Party Leader Ralph Goodale at the 1981 Political Forum. Top right: Premier Lorne Calvert at Political Forum, 2006 Bottom left: Premier Brad Wall at Political Forum, 2014 Bottom right: Premier Scott Moe at Political Forum, 2018 52 But Finance Minister Eric Cline was clearly The Environment Committee continued its reductions in corporate capital and income listening to the committee’s pre-budget broadside attack on the Kyoto Protocol. tax rates, and Employment Insurance submission, as his spring budget reduced “Kyoto is a seriously flawed approach that premiums. Additional advocacy wins for the the small business tax rate from eight to six is not going to solve our problem with Saskatchewan business community were per cent, effective July 1, 2001, while the climate change,’’ Environment Committee increases to registered pension and income threshold above which the tax rate chair Bob Schutzman said in the 2001 retirement savings plan contribution limits applied was raised from $200,000 to annual report. and the small business deduction limit to $300,000 on Jan. 1, 2002. $300,000. The committee lobbied federal and While pleased with the small business tax provincial officials to refrain from ratifying In 2002, the Finance Committee lobbied for cut, the committee expressed the Kyoto Protocol until they had conducted changes to the property tax assessment disappointment that there was no three- more thorough evaluation and consultation system, more venture capital and foreign year plan to reduce general business taxes, and developed a better scientific investment opportunities, and lobbied similar to the personal income tax cuts understanding of climate change. against the negative impact of the Air announced in the previous year’s budget. Security Charge on Saskatchewan. In 2001, the chamber continued developing The challenges and changes kept coming in “Not coming from Saskatchewan The Investment and Growth Committee its strategic plan to ensure the future vitality 2002, but the chamber was well prepared and not born and raised here, the advised government to remove restrictions of the province through the Action with various Action Saskatchewan activities, negative attitude was probably the on farm land ownership and to reduce red Saskatchewan initiative. The chamber also such as developing a report card to largest challenge I dealt with moving tape and border restrictions that impeded helped develop local action committees to measure the progress achieved in reaching here in the 1980s. The attitude was the free-flowing trade corridor with the U.S. spread the message of Action the initiative’s targets and goals of growing government’s role was to solve Saskatchewan across the province, as well the private sector, the workforce and the people’s problems whereas the The economy, which had been stuck in low as engage the public, stakeholders and population. people’s role is to solve their gear for years, showed more signs of life in business leaders in the Action problems…” 2003. The chamber’s Action Saskatchewan Saskatchewan Leadership Forum. The Another Action Saskatchewan initiative was report card showed that private sector purpose of the forum was to reach some to develop a human resources strategy for growth was generally positive, population “I was just pointing out to people, consensus on growing the province’s the province. In May 2002, the Labour and growth had stabilized and stopped hey, you’re responsible. And that’s private sector, capitalizing on demographics Education Committee launched its human shrinking, and the labour force continued to what Action Saskatchewan was and growing the population in the province. resources plan to better match the grow, especially in the youth, seniors and designed to do was to create workforce with the workplace, to meet the rural segments. awareness that, if you’ve got a While Action Saskatchewan was expanding learning needs of Aboriginal people, ensure problem, you solve it.” its scope, the chamber was amalgamating all students learn workplace skills, and build Chamber president Clay Dowling, the Economic Development and Finance partnerships with business, the education president of Ghost Transportation Services Clay Dowling committees into the Investment and system, and governments. of Saskatoon, told chamber members SCC President, 2003–2004 Growth Committee due to an increasing “now is the time to take action to make this overlap in focus between the two In years past, the Finance Committee had province a better place to live, work committees. successfully lobbied government for and invest.’’ 53 the respondents indicated that they did not “Action Saskatchewan is a generational feel that Saskatchewan had a climate for project, with the challenge being to The newly formed Human economic investment. maintain the momentum behind it. It will be Resources Committee far more important to take the Action (formerly the Labour In its pre-budget submission, the Finance Saskatchewan message outside of the Committee) took a strong Committee renewed its call for business tax chamber and get people to buy into it,’’ stand against proposed rate reform, specifically lowering the provincial said Zawada. changes and legislative sales tax (PST) by one or two per cent and amendments for the WCB. removed entirely from capital projects. At a board meeting in October, director “These amendments will Ralph Boychuk of Prince Albert provided have huge implications for The Investment and Growth Committee a brief summary of the most recent Action the province of conducted its own survey of public and Saskatchewan report card, noting that Saskatchewan in terms private stakeholders, which determined that the province’s population had risen for of future growth and our Saskatchewan’s key weaknesses were a the first time in seven years due to image as a ‘business shortage of skilled labour, taxation levels, increased in-migration. friendly’ environment,’’ “A turning point in changing the inability to attract entrepreneurs and said committee chair The long-awaited Business Tax Review, the attitude of Saskatchewan people, excessive red tape. The committee urged Mike Carr. heated battle over available hours of work was when the chamber pushed hard the government to review the corporate tax legislation and the Action Saskatchewan for business and personal income structure and identify ways to achieve parity summit, known as The Gathering in tax reform in Saskatchewan. When with neighbouring jurisdictions in order to Saskatoon in October, were the main issues the NDP government of the day prevent the exodus of successful business on the chamber’s plate in 2005. appointed U of S accounting dean and wealth creators, while at the same time and former senior financial In July, 2003, the Action Saskatchewan developing a strategy to attract investment. steering committee was formed to come up The controversy over the available hours of department official Jack Vicq to with themes or objectives to achieve certain work actually began in the fall of 2004 head a tax review commission, the Action Saskatchewan : A Blueprint for 2005 , goals and objectives. These themes when NDP Labour Minister Deb Higgins chamber got behind its the economic development strategy included growing the private sector, dusted off some amendments to the recommendations, which were initiated by the chamber in 1999, was the developing good public management, Labour Standards Act that were passed, implemented for the most part.” main preoccupation of the chamber increasing the wealth of the people, turning but never enacted, by the Romanow throughout most of 2004.