The provincial government is going to follow through on a recommendation of the PERT Report to establish a Future Fund.

The fund will be managed by the Department of Finance, with a six-person board of trustees to provide oversight. Four of those positions will sit on the board based on their position in government, with the other two being appointed by the Lieutenant Governor in Council.

As far as contributions to the fund are concerned, government will be required to contribute net proceeds of tangible and intangible assets sold for greater than $5 million, and a portion of non-renewable resource royalties received in the previous fiscal year as required by future fund regulations.

The treasury board can also approve additional contributions.

Withdrawals from the fund have been broken down into two categories.

The first is non-restricted withdrawals, which can be used to service the public debt, or pay an amount required due to an “extraordinary circumstance,” which is defined as something that has or is projected to materially impact the province’s fiscal position.

Then there are restricted withdrawals, which cannot occur until either 10 years have passed or until the fund’s balance is at least equal to financial obligations relating to unfunded long-term debt maturities in the next 10 years.

After that period, funds can be withdrawn to pay expenses that arise from the sale of a Crown asset that were not known or determinable at the time the proceeds were deposited, pay amounts related to decommissioning and abandonment activities under an oil lease or license, and to fund strategic priorities.