Resolution No. 31-01A

WHEREAS, there is potential for a significant ethanol industry in Saskatchewan; and

WHEREAS, the taxation policies of provinces across Canada are restricting the inter-provincial movement of ethanol, thus standing in the way of development of this industry,

THEREFORE BE IT RESOLVED, that the Province of Saskatchewan actively pursue the development of a strategy to remove the impediments to the inter-provincial movement of ethanol.

Response from Hon. Chris Axthworthy:

The province is currently developing a proposal to promote ethanol production in Saskatchewan. Government recognizes there are significant benefits of using ethanol as a fuel additive, particularly as technological advances make ethanol cost competitive with gasoline on the open market. An ethanol industry would provide added economic support for the agricultural industry through increased demand for grain, grain cellulose products, and forestry by-products, which are used as feedstock for ethanol. As well, the construction of ethanol plants would provide economic benefits for rural Saskatchewan.

There is also growing concern about global warming and the increasing concentration of greenhouse gas emissions and its negative impact on the environment. In 1997, Canada signed the Kyoto Protocol, an international agreement on the environment to reduce greenhouse gas emissions by promoting new and environmentally friendly technologies. Saskatchewan could make its contribution to reducing Canada's greenhouse gas emissions through the expansion of its ethanol industry.