Mr. Speaker, in 2001-02 and 2002-03 the department will have spent over $6 million in direct financial assistance to Saskatchewan producers for the development of over $20 million worth of water projects. It also provides almost $5 million worth of technical assistance to help Saskatchewan residents find solutions to their water problems.
The tax deferral program is a statutory response to serious drought conditions. It allows livestock producers to defer paying income tax on revenue from breeding stock sold as a result of the drought, increasing their cash reserve to buy back their herd.
If drought impacts are severe, initial designations can be made based on precipitation and early estimates of forage yield. Final designations are made when all forage yield information is available, usually in December.
The minister is aware of the importance of this program to the producers and is working to identify areas for 2002 designation as quickly as possible so that producers can make timely management decisions. At this time areas in the prairie region are of particular concern.