STC safe from privatization

Despite losing money in the last fiscal year, Saskatchewan’s government-owned bus company is safe from privatization, says the cabinet minister overseeing it.

Not only is the Saskatchewan Transportation Company protected under the province’s Crown Corporation Protection Act from quick privatization without an election, but the government deems STC to be doing an important service by providing transportation to those who need it, said Jennifer Campeau.

“It is safe — and it’s business as usual,” she said, adding she met recently met with STC’s board of directors to plan for the next few years.

Those plans include acquiring three 16-passenger buses and an airline-style online ticketing capability that will let it more closely match passenger demand with available buses, CEO Shawn Grice said. STC carried 244,785 passengers in the 15 months ending March 31, a longer-than-usual reporting period that’s required by a move to have Crown corporations end their fiscal years on that date — bringing them in line with the rest of the provincial government.

That’s a 6.4-per-cent decrease from 261,531 in 2014 despite the longer reporting period.

Grice attributed this drop-off to warm winter weather and low gas prices that made travelling in cars more affordable, plus changes to Greyhound’s schedule along the Trans-Canada Highway. Express revenue took a hit from the energy industry slowdown.

STC saw revenue — from passenger and express parcel business — rise to $18.5 million in 2015-16. That compares with $16.6 million in the 12 months of 2014.

The annual subsidy, or grant, given to STC was $13.25 million in the 2015-16 operating year.

That compares with $10.3 million in the 12 months of 2014.

Still, that means STC covers about 62 per cent of its operating expenses, and “in the public transportation industry, these numbers are very favourable,” Grice wrote in STC’s annual report.

By comparison, Regina Transit’s fares bring in about $10.8 million — or 28 per cent — of the system’s $35.66-million operating cost, the city’s 2016 budget says.