The Saskatchewan legislature has passed amendments to enable Saskatchewan Wheat Pool to more easily change its ownership structure.
Bill 304 allows the pool to change its ownership structure without legislative approval. The company could extend voting privileges to Class B shareholders so they could elect external directors.
The law was given third reading, passed and proclaimed in one day.
Pool president Marvin Wiens said the company appreciated the legislature’s support, but was disappointed with the politics played as the bill was passed.
“The politics were out of line,” he said in an interview.
Read Also
Ag in Motion speaker highlights need for biosecurity on cattle operations
Ag in Motion highlights need for biosecurity on cattle farms. Government of Saskatchewan provides checklist on what you can do to make your cattle operation more biosecure.
“The issue was a pool issue to try and do the right things from a corporate point of view, yet they used the pool as a political football to try and make some points on crown investment issues, which we were very disappointed in.”
Wiens was referring to the opposition Saskatchewan Party asking if the government would invest in the pool.
Agriculture minister Clay Serby first told reporters that no decision had been made.
“This question for me is easy to answer because we’ve not made any commitments here at all,” he said.
He later said the government has had confidential conversations with the pool and he wouldn’t be surprised if a request for financial assistance was made.
“At this point in time we have not had any discussion about putting money in Saskatchewan Wheat Pool,” Serby said. “This is a decision that would have to be a cabinet decision at the end of the day.”
The question of government investment arose around the legislative change that could see the pool lift the 10 percent cap on how many shares a Class B non-voting shareholder can own. Removing the cap paves the way for significant equity investment.
Wiens said Class B shareholders have to approve this change, which is expected to happen Feb. 12.
“We are in the middle of debt restructuring,” Wiens said. “When that’s completed successfully, as we hope it will be, we will move forward on our annual meeting.”
The deadline for restructuring is Jan. 31.
Meanwhile, although Bill 304 passed without amendment or much discussion, the private members’ bills committee did hear from some opposed to the plan.
Former delegate Roy Atkinson urged the committee to take more time for due diligence. He said farmers have suffered since the pool went public, following a legislative amendment in 1995.
“We contend that the members of the committee have a duty and a responsibility – and must be accountable for and to the electorate of this province – to examine the new proposal from the Saskatchewan Wheat Pool’s management, to ensure that substantive issues are adequately treated, and to ensure that adequate consideration is given to the economic and social ramifications of the legislation,” he said on behalf of three farmers.
John Keen of Riceton, Sask., said he doesn’t trust the judgment of the people in charge at Sask Pool.
“They took over an enterprise that was relatively thriving,” he said. “It had problems but it has survived for 70 years. It’s (now) had difficulty surviving seven.
“The tattered remnant can go to Cargill and we’ll build something better.”
