Province will need open door approach
OTTAWA, June 10, 2013 /CNW/ - Saskatchewan will need to attract an
unprecedented $20 billion to $30 billion in capital investment annually
through 2032 to finance its rapid economic and infrastructure growth.
How the province adapts to this new resource-economy reality will
determine how well the investment dollars flow, according to a
Conference Board of Canada report for The Saskatchewan Institute.
"Saskatchewan is in the midst of diversifying its traditionally
agriculture-dominated economy. New mega-projects in the resource
sectors will require different forms of capital investment," said
Michael Grant, author of the report, Green Machine: Financing Growth in the New Saskatchewan.
"This massive influx of capital is something new for the province. It
will require policy actions and responses on a wide range of issues.
The good news is that is its strong economic prospects give the
province the luxury to deal with these issues in a thoughtful way and
on its own terms."
Global demand is expected to keep resource prices high, which will
continue to draw interest in capital investment in Saskatchewan.
Canada's capital markets are well suited to fund Saskatchewan's resource
A growth culture is taking hold in the province.
The Conference Board estimates that Saskatchewan's capital needs will
continue to expand until at least 2032, due largely to global demand
for resources such as oil, potash, uranium, natural gas and other
metals and minerals. The long-term outlook for capital reflects three
Export-oriented extractive industries (such as mining and oil and gas);
Export-oriented agriculture; and
There are reasons for optimism that these capital needs can be met.
First, Canada has one of the best-developed equity markets in the world
and an expertise in funding resource development. Second, Saskatchewan
will not have any problem funding resource projects as long as it is
open to foreign investors, including state-owned enterprises.
The economic potential brought on by capital investment in the resource
sector will require Saskatchewan to address several issues, such as:
Maintaining a hospitable investment climate,
Setting competitive personal and corporate tax rates;
Keeping up with infrastructure demand;
Diversifying the economy to reduce fluctuations in resource prices,
supply and global demand; and
Engaging First Nation and Métis businesses and communities in the
The Saskatchewan Institute, a multi-year initiative of The Conference Board of Canada that focuses
exclusively on issues relevant to Saskatchewan. The publication is
available at www.e-library.ca.
View video commentary about The Saskatchewan Institute.
SOURCE: Conference Board of Canada
For further information:
Brent Dowdall, Media Relations, Tel.: 613- 526-3090 ext. 448