Resolution No. 11-01A

WHEREAS, Saskatchewan Municipal Affairs, Culture and Housing (MACH) is aware that roads are needed for oil companies to truck heavy oil and this causes an extra-ordinary amount of truck traffic in the heavy oil areas of the province; and

WHEREAS, the Rural Road Classification Committee (RRCC) has undertaken to address the issue of heavy truck traffic in the crude oil areas of the province in the RRCC final report; and

WHEREAS, the Province of Saskatchewan issued a news release on November 30, 2000 stating: “Temporary windfall revenues from the oil and gas sector bring the province’s projected surplus to $370 million for this fiscal year,” which is, “an increase of $327.6 million in oil revenue” in addition to the originally budgeted oil revenues; and

WHEREAS, in a November 30, 2000 news release Finance Minister Cline stated: “Better roads mean more economic growth and opportunity”;

THEREFORE BE IT RESOLVED, that SARM demand that the Province of Saskatchewan recognize the costs incurred by municipalities to provide necessary oil road infrastructure which in turn provide the Province of Saskatchewan with the opportunity to collect oil revenues and furthermore that the Province of Saskatchewan recognize the need to reinvest additional surplus monies in oil road infrastructure thereby creating further development and even more revenue potential for the Province of Saskatchewan.

Response from Hon. Ron Osika:

Revenues collected by the Province from all sources, including oil royalties, are placed in the general revenue fund for the benefit of all the people of Saskatchewan and all sectors of our economy. The Province does not dedicate revenues from any particular source to any particular use.