Should Saskatchewan reconsider Crown corporations?

REGINA – Government-run companies are about as old as Saskatchewan itself. Powering your home (SaskPower), insurance (SGI) and even phones and cable TV (SaskTel) are all examples of services provided by Crown corporations.

But that service has changed over time.

“Up until recently, there would have been a very strong consensus that we still needed them,” said Tom McIntosh, a University of Regina political scientist. “Whether that consensus still holds, that may be up for debate.”

The idea behind a Crown corporation is to provide something private companies won’t – like the Saskatchewan Transportation Company (STC). The bus service goes to smaller communities that may not have it otherwise.

Though STC is losing money and ridership, the government remains committed to subsidizing it.

“Having said that, we know it can’t continue to increase at a million dollars per year,” the minister responsible for STC, Don McMorris told reporters on Monday.

Other Crowns are cash cows. SaskTel, the only wireless company in Canada still run by the government, made $90 million in 2013.

Former Alberta premier Ed Stelmach says that type of business model was initially challenging in 2008 when trying to form the New West Partnership between Saskatchewan, Alberta and British Columbia.

“We eliminated a number of barriers that were huge obstacles and impediment to investment,” said Stelmach. “Now, you see Saskatchewan growing.”

Brad Wall’s Saskatchewan Party campaigned with a promise to maintain the Crowns. The premier says no ‘For Sale’ signs will be put up soon.

However, the government cut ties with the profitable Information Services Corporation in 2013 and has made notable efforts to sell off casinos and food service in jails.

“When it makes more sense to (provide a service) through the public sector, we’ll do that,” Wall said. “But if it makes sense to contract out services away from corporations … we’re going to look at that too.”

Regardless of political stripe, the debate rages on. As the economy evolves and oil and gas thrive, the Crowns play less of a role.

“You have to remember, there’s a deep attachment (in Saskatchewan) to those corporations,” McIntosh said. “They have a long history in the province.”

“As the province changes, that may be less and less going forward.”