Mandryk: Sask. Party was wise to move away from Crown privatization

Financial Performance Highlights Across Key Crown Corporations

SaskPower led the charge with a remarkable turnaround, reporting $184 million in profit for 2023-24 after a $172 million loss the previous year. This $356 million swing represents one of the most dramatic recoveries in recent provincial corporate history. The utility also directed $18 million in dividends to the general revenue fund, earmarked for essential services like road maintenance and healthcare worker salaries.

SaskEnergy, despite facing headwinds that reduced its profit to $55 million from $126 million the prior year, still managed a respectable $21 million dividend. More notably, the natural gas distributor has contributed $116 million to the general revenue fund over the last five years alone – a significant return on public investment that underscores the long-term value of keeping such assets in public hands.

SaskTel, the last remaining publicly owned telephone utility in Canada, demonstrated resilience with $95.4 million in net income and a $38.2 million dividend. Its continued public ownership stands in contrast to the privatisation of telecom utilities elsewhere in the country, offering a unique case study in maintaining competitive services under public stewardship.

SGI rounded out the strong performance with $78.1 million in net income while maintaining some of Canada's lowest auto insurance rates. This combination of profitability and affordability highlights how Crown corporations can balance financial sustainability with public service mandates when shielded from constant political interference.

The Historical Context of Privatisation Debates in Saskatchewan

Saskatchewan's relationship with Crown corporation privatisation has been fraught and cyclical. The province witnessed intense debates during the Grant Devine era in the 1980s, when Progressive Conservatives pursued privatisation of potash and oil resource Crowns. This was followed by a defining moment in 1989, when legislative bell-ringing successfully blocked a SaskEnergy privatisation bill – an event that came to symbolise resistance to utility sell-offs.

These historical battles left a lasting imprint on Saskatchewan politics. The Sask. Party, which emerged from the ashes of the Progressive Conservative party, has long faced accusations from the NDP and labour unions harbouring suspicions about its intentions regarding utility Crowns. This perception was believed to have contributed to the party's electoral defeat in 2003 under Elwin Hermanson's leadership, when privatisation fears appeared to resonate with voters.

The legacy of these debates created an environment where any mention of Crown corporations inevitably triggered political discourse, regardless of the actual business merits at play. For years, discussions about SaskPower rates, SaskEnergy infrastructure or SaskTel services were inseparable from broader ideological contests over the role of government in the economy.

Why Avoiding Privatisation Politics Has Strengthened the Sask. Party's Position

The current Sask. Party government's strategic avoidance of reigniting privatisation debates appears to have yielded political dividends. By refraining from initiating new privatisation pushes – despite ongoing pressures to address infrastructure needs and carbon tax implications – the party has managed to separate its re-election prospects from the historic baggage associated with Crown corporation debates.

This approach has allowed the government to focus on pragmatic operational challenges instead. SaskPower's acknowledgment of $1.2 billion in required capital projects to sustain, grow and modernise the electricity system – driven largely by aging infrastructure rather than carbon tax costs – represents the kind of concrete, non-ideological issue that can unite stakeholders across the political spectrum.

The financial results suggest that when Crown corporations are allowed to operate without becoming political footballs, they can deliver reliable returns that benefit all Saskatchewan residents through dividend-funded public services. This outcome presents a compelling counter-narrative to the ideological arguments that have traditionally framed discussions about public versus private ownership in the province.

Implications for Business Consumers and Shoppers in Saskatchewan

For business consumers and shoppers across Saskatchewan, the strong performance of Crown corporations translates into tangible stability. SaskPower's consistent electricity supply – underpinned by its improved financial position – reduces risk for businesses dependent on reliable power. SaskEnergy's continued profitability, despite lower annual profits, ensures steady natural gas availability for heating and industrial processes.

SaskTel's $95.4 million net income reinforces confidence in the province's telecommunications infrastructure, a critical factor for businesses operating in an increasingly digital economy. Meanwhile, SGI's ability to offer some of Canada's lowest auto insurance rates while maintaining $78.1 million in net income provides direct cost savings for both individual consumers and commercial fleet operators.

The dividend streams flowing into the general revenue fund – amounting to tens of millions annually from these Crown entities – ultimately support public services that businesses and consumers rely on, from well-maintained roads to adequately funded healthcare and education systems. This creates a virtuous cycle where profitable public enterprises contribute to the broader economic environment in which private businesses operate.

What this means

Saskatchewan's experience with its Crown corporations in 2023-24 offers a noteworthy case study in how depoliticising public enterprises can yield strong financial outcomes that serve the broader public interest. The Sask. Party government's choice to step back from the ideological battles that once defined discussions about SaskPower, SaskEnergy, SaskTel and SGI has coincided with a period of remarkable financial performance across these entities. Rather than viewing Crown corporations through the lens of perpetual privatisation debates, the results suggest they can function as stable, profit-generating assets that contribute meaningfully to provincial finances through dividend distributions. For business consumers and shoppers, this translates into reliable utility services, competitive insurance rates and telecommunications infrastructure – all supported by the financial health of publicly owned operators. As Saskatchewan looks to address future challenges like infrastructure modernisation and energy transition, the lesson may be that keeping these utilities in public hands, while focusing on operational excellence rather than ownership debates, provides a pragmatic foundation for continued economic stability.