The Saskatchewan government built potato storage facilities on its own,
but allowed the impression that there was private investment to make
the project look better, the opposition party charged last week.
A review done for Crown Investments Corp. by Ernst & Young in June
1998, and released by the Saskatchewan Party last week, said private
investment in three storage buildings built in 1997 was negligible.
The buildings cost $8.4 million.
“The storcos are owned 51 percent by Con-Force Investments Ltd. (CFI)
Read Also
The Organization for Economic Co-operation and Development lauds Canada’s low farm subsidies, criticizes supply management
The Organization for Economic Co-operation and Development lauded Canada’s low farm subsidies, criticized supply management in its global survey of farm support programs.
and 49 percent by Spudco,” said the report. “However, the total amount
of investment by CFI in each storco is only $51 and there is no
economic evidence to suggest that CFI is a partner since there is no
intent that it will share in any gain or loss related to the storcos.”
The report also said that management at Sask Water, the crown
corporation under which Spudco operated, said there were potential
benefits to this ownership structure “including avoidance of
international trade investigations, use of non-unionized labour for
construction and the optics of significant private sector investment.”
Brad Wall, CIC critic, asked minister Maynard Sonntag why the
government misled the public when it launched Spudco and how the
government could ignore its own rule to use unionized labor.
Sonntag said he couldn’t answer the questions because the matter is
before the courts.
Mum’s the word
That’s how question period went all last week. Wall raised a number of
issues about Spudco and its demise and Sonntag repeatedly said he was
unable to answer.
Judith River Farms, Coteau Hills Potato Corp., Newbridge Potato Corp.,
Lake Bend Potato Corp. and Mark Langefeld are all suing Sask Water and
the government.
Confidential cabinet documents have been filed in Court of Queen’s
Bench as part of that lawsuit.
On Dec. 16, Wall asked about a nuclear potato seed production agreement
Spudco had with Microgro, a greenhouse operation that was once attached
to Prairie Malt at Biggar.
He said the greenhouse had a four-year $400,000 agreement to supply
Spudco with seed.
He produced a memo, also filed as part of the court documents, which
outlined a negotiation strategy approved by Sonntag to, in part,
“create some financial expediency for Microgro through impacting the
cash flow. Microgro has financial problems as evidenced by our recently
being served with a garnishee.”
Wall said Sonntag should be fired if Spudco slowed its payments to
financially harm another Saskatchewan business.
