Saskatchewan and Ottawa are talking about agricultural flood assistance, said provincial finance minister Ken Krawetz, but he couldn’t say when an announcement might be made.
He said the province has allocated $60 million for flood costs, not including agricultural payments.
That figure includes $20 million for highways and $40 million added to the Provincial Disaster Assistance Program. The federal government also contributes to PDAP.
Krawetz said it’s too early to tell exactly how much agriculture aid would be needed. A significant package was announced by this time last year, he added.
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The dry weather in the west was welcome for preserving grain quality and advancing harvest, but it has resulted in very dry soil moisture conditions.
“I know that there are discussions going on with the federal government,” he told reporters.
“We don’t know when the feds will come up with that announcement, whatever it may be.”
Krawetz was releasing the first quarter financial report and said the province remains on track for a balanced budget in spite of flood costs and an anticipated $51 million extra for teachers’ wages.
Expenses will be up $107 million from the budget and revenues will be up $64 million.
The province has more than $700 million in its Growth and Financial Security Fund. Premier Brad Wall has said there is enough in that fund to cover all types of costs associated with the flooding.
For example, oil activity in southeastern Saskatchewan dropped off significantly this spring and summer because of flooding.
Krawetz said oil production is now forecast to be 148 million barrels, down from 159 million. However, oil prices also remain stronger than forecasted in the budget
NDP finance critic Trent Wotherspoon said the government response to flooding has been too slow and inadequate.
He said the increase to highways spending is nowhere close to the amount of repair needed on highways and grid roads.
