OTTAWA – Federal Western Economic Diversification department spending is declining sharply next fiscal year and the minister responsible says the cuts are inevitable.
Jon Gerrard, junior minister responsible for the department, said last week the 25 percent cut in budgeted spending can be explained in two ways.
Infrastructure spending that has been funneled through WED is being cut.
And government subsidy spending overall is on the decline.
“There is a decrease in the total dollars that we’ve got because we’ve cut back on subsidies to business across the board,” he said.
Read Also
Putting genomics for replacement heifer selection to the test
Livestock extension specialist Chelsey Siemens discussed her study on genomic testing as a tool for commercial replacement female selection at AIM 2025 near Langham, Sask.
But he added the department will continue to play a role in stimulating diversification in prairie agriculture and rural areas.
Finances projects
In co-operation with the Farm Credit Corporation and the Canadian Imperial Bank of Commerce, WED offers “loan loss guarantees” which encourage low-risk private financing of diversification projects.
He said the other important behind-the-scenes role the department plays is in Ottawa, where it represents western interests inside the government.
Gerrard said continuing federal support for the port of Churchill is an example of the WED influence in Ottawa.
“If things were left solely in the hands of Central Canadian interests, there wouldn’t be a lot of concern about the port of Churchill,” he said.
Instead, cabinet has supported the Gateway North project to try to find a way to keep the port going.
