THERE is entertaining reading within a review of Saskatchewan’s Spudco affair. As established potato industries in Alberta and Manitoba grow and thrive, the one in Saskatchewan moves slowly forward in spite of – rather than because of – provincial government involvement.
Taxpayers are on the hook for $28 million in losses through provincial bungling of Spudco, a plan to build storage facilities and expand the potato growing and processing industry in Saskatchewan.
As full details emerged through inquiries and lawsuits, taxpayers were rankled upon discovering that $153 was the sum total of private sector investment in a $9 million potato storage construction deal. Government, on repeated occasions, led the public to believe private capital represented 51 percent of the deal. That’s an entertaining example of mathematics.
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In admitting to the above, the government acknowledged that mistakes were made but denied that any lies were told. This, despite documents to the contrary. No lies, the government said. Rather, it didn’t take advantage of opportunities to tell the truth.
What an entertaining exercise in semantics.
Back in December 2001, crown investments minister Maynard Sonntag, who inherited the potato file in 2000, noted the potential $28 million loss, announced government plans to exit the potato business, and deemed the venture a success. A more entertaining example of myopia would be hard to find.
And speaking of sight, Sonntag also revealed lack of foresight back in June 1999 when, as minister in charge of SaskWater and Spudco, he told the Producer that the venture’s maximum risk was about $8 million.
“We sure hope we don’t lose the whole thing, but are prepared for that amount. We (the province) could end up owning some buildings but it is still our plan to sell, get out of the business in the future. We think there is a future for growers and processors here and this is only a setback.”
A setback indeed. To its credit, the Saskatchewan potato industry continues to expand despite the bruises sustained by growers and investors.
But wait: now that the total loss to taxpayers has been tallied, so should the responsibility be assessed and accepted, correct?
Eldon Lautermilch, the minister holding the file during most of the rise and fall of Spudco, offered his resignation last week. Premier Lorne Calvert refused to accept it, preferring instead to shuffle Lautermilch elsewhere because cabinet doesn’t have enough depth to handle his expulsion.
It was an entertaining sample of politics indeed when the loss of $28 million taxpayer dollars, coupled with an six-year record of lies and deliberate obfuscation, did not trigger a resignation.
“What do you have to do to get fired in this government?” the Saskatchewan Party has asked. It’s a legitimate question, but taxpayers shudder to imagine how it might be answered.
