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Population woes: Who's to blame

Author: David Maclean 2006/03/28
The latest news that Saskatchewan lost nearly 4,000 people since the beginning of last year caused many people to sit up and pay attention. Population numbers have declined to levels not seen since 1982.

While our population declines, our politicians spend time inventing excuses rather than changing government policies. At the very least, the latest statistics should provide cause for some deep government introspection.

Some politicians, like Pat Atkinson and Eric Cline, have the temerity to suggest that young people leave here so they can be closer to the mountains, the ocean, or live the "big city" lifestyle. This argument is, for lack of a better word, garbage.

The "big city" lifestyle our politicians think is so desired isn't found in places like Fort McMurray, Alberta. In the early '90s Fort McMurray's population was around 32,000. In 2006 that number is closer to 60,000 -- but nobody really knows for sure as the population has grown so quickly and many workers live in camps near the oil sand mines.

There is no "big city" nightlife in Fort McMurray and it's a white-knuckle 4.5 hour drive to Edmonton. The winters are cold with little daylight, and the summers are way too short.

What is it that draws thousands to that isolated northern community Jobs, plain and simple. There are lots of them and they pay well, too. Which brings us back to Saskatchewan.

Sure, there are a lot of things we can't control but we can control government policy. Saskatchewan has the highest corporate income taxes in the country. In 2004, while other provinces were busy cutting taxes, this province hiked the PST. Corporations must pay a punishing capital tax whether or not they make money - Alberta has no such tax. The government's own Business Tax Review Committee found that Saskatchewan has the worst investment climate in Canada.

These policies have a very predictable outcome - slow economic growth. And there's plenty of evidence showing that's a reality in Saskatchewan. Politicians like to point out how Saskatchewan is experiencing significant Gross Domestic Product (GDP) growth, and that's true. The problem with that measure is that it provides a snapshot of the total value of all the goods and services bought and sold in the province. We are seeing excellent prices for oil, gas, uranium and potash, and that is reflected in a strong GDP. The provincial treasury is bursting at the seams with corporate tax revenue as a result.

The problem is those strong profits aren't being reinvested in Saskatchewan and creating jobs. In fact, private sector investment has been in a slow decline since it hit a peak in 1997. On this measure, Saskatchewan has the worst record in the west. When you have poor investment you have poor job growth. Poor job growth means lower wages, and average weekly earnings in Saskatchewan rank 8th among the provinces and territories.

It was only a few years ago that the province reduced their taxes on oil and gas to make us more competitive. What was the result The highest level of drilling this province has ever seen. Just imagine what our oil and gas sector would look like if they figured this out decades ago.

Is there anyone out there who can truthfully say government is free of blame The government needs to get with the program before it's too late. They should stop making lame excuses about mountains, oceans and night clubs and instead adopt a pro-growth tax system.

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