SASKATOON, SK: The Canadian Taxpayers Federation released its annual Saskatchewan heritage fund report today showing the government of Saskatchewan would have about $4 billion in savings if it started saving natural resource revenues in a heritage fund in 2013.

“The report is clear: Saskatchewan needs to start a heritage fund now to save resource revenues and set the province up for the long-haul,” said Gage Haubrich, CTF Prairie Director. “Alaska and Norway built up successful heritage funds and they’re reaping the benefits.

“Saskatchewan taxpayers are losing out on hundreds of millions of dollars every year because provincial politicians keep procrastinating on saving money for the future.”

The Saskatchewan government commissioned a report on heritage funds in 2013. The report recommended setting aside windfall resource revenues in a heritage fund to convert temporary booms into lasting wealth for future generations.

The Saskatchewan government did not create a heritage fund.

If the government had created a heritage fund in 2013, it would be worth about $4 billion today and generate interest payments of about $199 million annually, according to the CTF report.

Alaska and Norway both have successful heritage funds. Last year, each eligible Alaskan received $1,000 in a dividend from the fund. Norway’s fund is worth about $3.2 trillion. Money generated from the fund covers about 20 per cent of Norway’s budget every year.

Alberta Premier Danielle Smith announced last year that she plans to grow Alberta’s heritage fund to at least $250 billion by 2050. The fund is currently worth about $31.9 billion.

“The new heritage fund will lessen our dependence on natural resource revenues, diversify our economy and create both wealth and prosperity for generations to come,” said Smith.

“Alberta is planning to build up its heritage fund and Saskatchewan can’t fall any further behind,” Haubrich said. “The Saskatchewan government needs to rein in spending, pay back the debt and start saving for the future with a heritage fund.”

For every dollar increase in oil prices, the provincial government collects roughly $16 million in extra revenue. With oil now reaching up to $95 per barrel, the provincial government could take in about $560 million more extra revenue this year from oil revenues.