Potash firms blindsided by Sask. budget

REGINA — Two major potash companies say the Saskatchewan government gave them no warning it would be eliminating deductions and credits related to its potash production tax.

The move was announced in the provincial budget Wednesday. The government said it expects to bring in $117 million more in potash revenue than last year by eliminating the resource credit and deductions.

Mosaic and Nutrien said they are disappointed and were not consulted on the change, which takes effect April 1.

“We spent $5 billion in the last decade on expanding our business in Saskatchewan,” said Mosaic spokeswoman Sarah Fedorchuk. “Those decisions have been made under a regulatory environment that is shifting and shifting without consultation.”

She said staff are assessing the impact the change will have, but the company does not believe it will have any immediate effect on jobs.

Saskatchewan’s energy and resources minister said potash companies were not made aware of the change because of market sensitivity.

Bronwyn Eyre said the change was made because the value of the credits was rising while the base tax remained flat.

A spokesman for Nutrien said the potash industry already faces rising costs and the government’s move only reduces Canadian competitiveness.