EXECUTIVE ORDERS
Premier has ‘frank’ talk with Nutrien
Saskatchewan’s premier says he had a “frank and necessary” meeting with the world’s largest fertilizer company’s most senior leaders amid what has been described as an exodus of its executives from the province.
While Nutrien Ltd. CEO Chuck Magro and Derek Pannell, the chair of its board of directors, did not make specific commitments during the Friday-afternoon meeting in Saskatoon, the talks are expected to continue next week, Scott Moe said.
“There is an expectation of the people of Saskatchewan that the Potash Corporation, or any entity that comes out of that corporation, does have a significant presence and a strong presence of their executive team here in the province,” Moe said.
“That is the discussion that we had, as well as understanding the larger presence of Nutrien here in the province as well,” the premier continued, referring to its corporate office in Saskatoon and six potash mines scattered across Saskatchewan.
Nutrien was formed on Jan. 1 when Potash Corp. of Saskatchewan Inc. merged with Agrium Inc. During the lead up to the deal closing, Premier Brad Wall said he would consider every option to ensure the company’s head office remained in the province.
Moe sent a formal request for a meeting with the company’s most senior leaders on Nov. 16, the same day the Saskatoon StarPhoenix reported that all but one of the executives who report directly to Magro live outside the province.
Saskatchewan Justice Minister Don Morgan has said he considers that a violation of legislation, introduced when PotashCorp was privatized, requiring it and its successors to maintain “head office functions” in the province.
It has since emerged that other senior officials with ties to PotashCorp have left Nutrien over the last year, prompting local business leaders to raise concern about the possible economic and community effects of losing a major head office.
Most of Nutrien’s operations now appear to be run out Calgary, where Magro and other senior executives reside.
In an emailed statement, Nutrien spokesman Will Tigley said the company “underscored (its) significant investments in the province and (its) plans to continue to invest” during the meeting.
“We look forward to continuing our dialogue with the government,” Tigley wrote.
Moe said Magro and Pannell were receptive, and “received very seriously” his fears about a global company that is important to Saskatchewan residents moving its executives out of the province, even though no commitments were made.
While it has been a publicly-traded company for years, PotashCorp is widely understood to have a unique relationship with the province, both as a symbol of a major resource and likely the largest corporate donor in Saskatoon history.
Moe has been criticized by the Saskatchewan NDP for failing to maintain Wall’s firm stance on keeping the combined company’s head office in the province, but he said developments that required his attention happened quite recently.
Asked if he thinks a solution can be reached without his government resorting to legal or legislative means to keep Nutrien’s head office and top executives in Saskatchewan, Moe said that is his “sincere intent.”
“If that is not the case, we will most certainly make those decisions on behalf of the people of the province when we get there.”
There is an expectation (that Potash) does have a significant presence and a strong presence of their executive team here in the province.
SCOTT MOE