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May 14, 2018 Economy Committee 521 STANDING COMMITTEE ON THE ECONOMY Hansard Verbatim Report No. 28 – May 14, 2018 Legislative Assembly of Saskatchewan Twenty-Eighth Legislature STANDING COMMITTEE ON THE ECONOMY Ms. Colleen Young, Chair Lloydminster Ms. Vicki Mowat, Deputy Chair Saskatoon Fairview Mr. David Buckingham Saskatoon Westview Mr. Terry Dennis Canora-Pelly Mr. Delbert Kirsch Batoche Mr. Warren Michelson Moose Jaw North Mr. Doug Steele Cypress Hills Published under the authority of The Hon. Mark Docherty, Speaker STANDING COMMITTEE ON THE ECONOMY 519 May 14, 2018 [The committee met at 15:16.] innovation in investments on behalf of Saskatchewan. It also supports and partners with a variety of stakeholders in The Chair: — All right. Good afternoon, folks. I want to alignment with our government’s priorities. welcome the committee here today, the Standing Committee on the Economy, and myself as Chair, Colleen Young. Sitting in This fiscal year, Innovation Saskatchewan has received an for Vicki Mowat is Mr. McCall, and we have also with us this expense budget of $27.135 million. The budget includes money afternoon David Buckingham, Doug Steele, Terry Dennis, and for a few new programs: $100,000 for the implementation of Warren Michelson. the made-in-Saskatchewan technology program, or MIST, that will see government partner with technology companies to This afternoon the committee will be considering the estimates develop innovative solutions to government challenges; for Innovation Saskatchewan. We will also be doing Bill No. $250,000 for programming to recruit and support technology 129, The Saskatchewan Technology Start-up Incentive Act, Bill entrepreneurs and starts-ups here in the city of Regina. No. 85, The Reclaimed Industrial Sites Amendment Act, 2017, and the estimates and supplementary estimates — no. 2 for the In addition, Innovation Saskatchewan will be spending its Ministry of Highways and Infrastructure as part of this accumulated surplus of $7.1 million over this fiscal year and the committee. next two fiscal years for the Saskatchewan technology start-up incentive. The incentive will allow eligible investors to receive General Revenue Fund a tax credit for qualifying investments in Saskatchewan-based Innovation Saskatchewan early-stage start-up technology companies. Vote 84 Madam Chair, Innovation Saskatchewan’s 2018-19 budget also Subvote (IS01) includes the following commitments: 2.362 million for the Saskatchewan Advantage Innovation Fund to target the The Chair: — And we will now begin our consideration of commercialization of new technologies. This amount reflects a vote 84, Innovation Saskatchewan, subvote (IS01). Minister $1.476 million increase from the last fiscal year. It includes Beaudry-Mellor is here with her officials, and if you would like $4.1 million for the Canadian Light Source, an important tool to introduce who is with you here today as your officials and for Canadian research and development. And 2.979 million for make any opening remarks. the Innovation and Science Fund which matches federal funding of research projects at Saskatchewan universities, And I’ll just add we have another committee member who has colleges, and research institutes. just joined us, Delbert Kirsch. Thank you. 2.131 million for the international vaccine centre. The centre is Hon. Ms. Beaudry-Mellor: — Well thank you very much, a facility of the Vaccine and Infectious Disease Organization Madam Chair. I’m really pleased to be here for the which has over four decades of experience working with public consideration of the 2018-19 estimates of Innovation and private partners to research and protect humans and animals Saskatchewan. Here with me are some officials from our from infectious diseases. agency. Wes Jickling is our CEO [chief executive officer]. Kari Harvey is our COO [chief operating officer]. And behind me is 2 million for the PTRC, or the Petroleum Technology Research Neal Cooke; he’s our director of financial compliance at the Centre, which provides project management and funding Ministry of Immigration and Career Training. And also here is support for research into enhanced oil recovery and CO2 our chief of staff, Tessa Ritter, and also one of our summer storage. students, Evan Banadyga. 1.2 million for the industry-led International Minerals So Innovation Saskatchewan is the Government of Innovations Institute which provides project management and Saskatchewan’s agency responsible for advancing our funding for research and education, improving the capability of province’s innovation agenda and priorities. It coordinates Saskatchewan’s mineral sector to address its needs. $250,000 government’s strategic direction in research development, for Co.Labs, the province’s first technology incubator, located science, and technology. in Saskatoon. In barely one year of operations, this incubator has coached and mentored 37 technology start-ups, which have Madam Chair, we know that our province’s future economic secured over $2.85 million in private equity investment. success will depend increasingly on knowledge and innovation. Innovation Saskatchewan’s contributions to Co.Labs has also To help ensure this success, Innovation Saskatchewan has leveraged federal and provincial sector funding, as the developed a strategy focused on three important goals. First, to incubator secured $355,000 in additional funding in ’17-18. ensure that research carried out at its funded institutes aligns with the province’s research and development priorities. Madam Chair, Innovation Saskatchewan works closely with its Second, to support rapid growth in the volume and quality of numerous partners and stakeholders to ensure its investments technology start-up companies in the province. And then third, are successful. For instance, it promotes industry engagement to help create the conditions for established Saskatchewan with its funded research institutes, encouraging and supporting technology companies to continue to grow and to create jobs in the pursuit of research agenda that helps solve technical this province. challenges faced by industry in Saskatchewan and worldwide, like genomics testing for the mining sector, and global food To achieve its goals, the agency manages research and security, among others. In addition, last fiscal year, the agency 520 Economy Committee May 14, 2018 created and launched the Rural Crime Innovation Challenge to province’s economic growth. tackle crime in rural areas. This challenge, organized in conjunction with the Ministry of Justice, has led to the Madam Chair, this concludes my remarks. I welcome any development of an application-based tracking system to alert questions the committee may have on these estimates. landowners about irregular activity related to their property. It’s one way we are trying to use technology in innovative ways to The Chair: — Thank you, Minister. I’ll now open the floor to solve government problems. questions from committee members. Mr. McCall. Innovation Saskatchewan also works closely with the Mr. McCall: — Thank you very much, Madam Chair, Madam technology sector on behalf of the province. One of the ways it Minister, officials. Welcome to the consideration of estimates does this is through SaskTech, an industry group that is focused for Innovation Saskatchewan. And always an interesting on building Saskatchewan as a key technology centre in conversation, because there’s always a lot of innovative and Canada. The past year was truly remarkable for Saskatchewan’s interesting things going on at Innovation Saskatchewan, technology industry, which saw a number of accomplishments. certainly. For instance, multinational conglomerate Siemens acquired the Saskatoon-based semi-conductor design company, Solido I guess just in terms of some pro forma questions off the top, in Design Automation, in what may be the biggest technology deal terms of this year’s budget to the last, can the minister state in the province’s history. Siemens has big plans to grow their what happened and how that is impacting the work of new Saskatoon office. 7shifts and Coconut Software, two Innovation Saskatchewan. rapidly growing rising stars in this sector, each closed series A investment rounds in the ballpark of 5 million. And local Hon. Ms. Beaudry-Mellor: — So I’ll start on this and then, if technology companies Vendasta and Solido were named in you want to ask further questions about it, we can take a bit of a Deloitte’s top 50 fastest-growing companies in Canada. And deeper dive. But there has been a minus, you know, a 2 per cent here I would point out that both Vendasta and Coconut have reduction in our overall budget. A large portion of that has female founders. come from operations. And then there’s really been what I would characterize as a reshuffling of a number of things. As Our government wants to see this kind of growth and success you know, we had a surplus and we’ve rededicated some of that continue in Saskatchewan, and this is why, together with surplus to the STSI. And so we’ve made adjustments in some SaskTech, we are working hard to address a shortage of skilled areas to compensate and shift our priorities in a number of technology workers in the province. The technology job market ways. in Saskatchewan is experiencing tremendous growth. According to StatsCan, Saskatoon has the second-fastest growing market Mr. McCall: — Thank you for that, Madam Minister. Two per in Canada after Waterloo. cent, what is the dollar figure on that? To help attract and retain skilled workers and sustain the growth Hon.
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