SARM demands ‘bare minimum’ of $56 million

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Published: March 19, 1998

Sinclair Harrison says rural Saskatchewan won’t accept a nickel less than $56 million for roads in the provincial budget.

The president of the Saskatchewan Association of Rural Municipalities said last week the province must have the money, since it was prepared to invest $32 million in Guyana’s power system through a recently cancelled SaskPower deal.

“We took it as a slap in the face,” he said of the crown corporation’s plans to invest in the South American country.

Harrison told delegates to the association’s annual convention that SaskTel also invested $34 million in New Zealand last year.

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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million

“Why not us?” he asked. “We feel we should invest in Saskatchewan, Saskatchewan people, Saskatchewan infrastructure.”

Rural municipalities got $20 million in 1996-97 for roads. SARM originally estimated that $65 million is needed to maintain and repair the network, but has revised that to a “bare minimum” $56 million.

“Certainly we could spend the $65 million,” Harrison said. “We cannot tolerate the $20 million.”

Harrison said the province has seen tax revenues increase by $1 billion over the last five years. As well, resource royalties, fuel taxes, licence plate fees and liquor and gaming revenues have increased.

“We should be sharing in that,” he said. “We asked for a balanced budget. We’ve all had to sacrifice, but who has been cut back and sacrificing the most?”

Premier Roy Romanow, addressing the convention a day later, made no promises. He blamed the federal government for the state of Saskatchewan roads, saying rail line abandonment and the elimination of the Crow Benefit grain freight subsidy have put roads under too much pressure.

The railways are “running roughshod” over rural Saskatchewan, Romanow said, and Ottawa is letting them do it.

“We don’t get a penny from Ottawa,” for roads, Romanow said.

Not forgetting province

The premier also said the province is not investing in Guyana, and even if it was, it doesn’t mean the government is ignoring its own.

“This is a question of making investments that will allow our crowns to generate the revenues they need to be successful,” he said.

Surpluses from crown corporations go into the general revenue fund for the benefit of all, he said.

“Yes, revenues are up. That’s not the whole picture. You didn’t see the expense side of the ledger.”

Romanow and members of the cabinet participated in a bearpit session with delegates after his speech. They answered questions on rail-line abandonment, crop insurance, health care, reassessment and property taxes.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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