Not long ago nuclear reactors and domed stadiums were out of the question. In 2006, the CEO of Cameco Corporation, Jerry Grandey, said that building a nuclear reactor in Saskatchewan was not feasible due to the province’s limited power grid, slow demand growth and lack of export markets.

 

Similarly, Roughriders president Jim Hopson quipped in April, “If six months ago somebody would have said to me, there’s a shot that you’ll be playing in an indoor stadium in a few years, I would have said, you’re smoking something.”

 

What changed all this was the recent ‘Saskaboom.’ High oil and potash prices and a growing population meant record revenues for the province. Despite substantial retroactive tax relief announced in fall 2008, revenues last fiscal year reached a record $12.3 billion, almost $3 billion more than was budgeted. In that environment, anything seemed possible, even without taking drugs.

 

But every high ends, and the financial picture has changed as fast as the Saskatchewan weather. The province expects just $10.1 billion in revenues in fiscal 2009 even with a $400 million top-up from its rainy day fund. Record dollars for municipalities, schools, highways and nurses mean budgeted spending in 2009 is up 32 percent from 2007. Nothing remains for three health unions without a contract, let alone discretionary spending.

 

Is this the time to build a domed stadium that will cost $350 million before the land it would sit on is paid for? Event organizers from Evraz Place in Regina and Credit Union Centre in Saskatoon have already said a dome for concerts makes no financial sense. Regina Mayor Pat Fiacco has already said the City of Regina doesn’t have the dollars to build a new stadium, and clearly the provincial and federal governments don’t either.

 

Nuclear development makes more sense than a domed stadium, but it also deserves careful consideration, especially given the times. Bruce Power estimates that building a 2000 megawatt nuclear reactor would cost $10 billion. Although the province first suggested Bruce Power might absorb the start-up cost, this is now in doubt. As well, the province’s Uranium Development Partnership says an additional $1 billion would need to be spent to provide reserve power in the event of an outage.

 

Yes, it will be expensive to provide Saskatchewan’s future power needs. But does this have to cost more than the whole provincial budget?

 

The province’s bid for a small nuclear research reactor in Saskatoon, though less expensive, still presents substantial short- and long-term costs. Under the proposal, Ottawa would pay 75 per cent of the $750 million construction cost and 60 per cent of the $75 million operational cost. The province would pay for the rest for a reactor that will only recoup 15 per cent of its annual expenses through profits, such as the sale of medical isotopes. Can taxpayers really afford this?

 

The calendar has changed, and the provincial mindset must change with it. A domed stadium is a fantasy and nuclear development a question mark. While 2008 was the year of overachievement, 2009 must be the year of restraint. While the federal government and most provinces bleed red ink, the only luxury Saskatchewan can afford is a balanced budget.