Province attempts to define ‘privatize’
SaskTel is not for sale but, just in case it ever is or an offer comes in, the province introduced legislation Wednesday that will provide a legal definition for the term “privatize.”
Justice Minister and Attorney General Gordon Wyant said “recent discussions” going on in the province prompted his ministry to look at its definitions and found there was not one for “privatize.”
“We thought it was appropriate to bring a definition forward, and we’re doing that through the Interpretation Act, so as to ensure that if there was ever an issue to come up, we would have a proper definition,” he said.
The province insists the Crown corporation is not for sale.
Just in case there is a sale, Wyant insisted any substantial offer for SaskTel would be put to the public through a vote or referendum.
The lack of a definition prevented any type of investment, because such a move had the potential to trigger privatization implications for the Crown corporations.
According to the province, “privatize” with respect to Crown corporations will now be defined, “as the transfer to the private sector of all or most of the assets, transfer of operational control, or transfer of a controlling interest of the Crown corporation.”
The proposed law also allows for up to 49 per cent of SaskTel to be sold without any interference from the Crown Protections Act, which acts as a quasi-safeguard for the sale of any Crown corporation
If there are those curious about buying it, Premier Brad Wall has suggested the cost would have to cover the province’s operating debt, which sits at $4.1 billion.
And in case SaskTel is in a vulnerable position to be bought, Wall also ordered the Crown do a “risk assessment” to look at current market conditions.
Wyant said if the province did not define what privatize meant, the courts would likely do it for the government. Bringing in the legislation is a way to avoid that happening.
The province has not yet followed through on the call from Elections Saskatchewan to update its referendum legislation.
Earlier this month, the province’s chief electoral officer responded to the talk of a SaskTel sale being approved through referendum by telling the government it should update how it holds referendums.
Wyant said “it was prudent” for the chief electoral officer to be doing some work around that area because the legislation was deficient, but said there had been no decision made with respect to updating the referendum laws.