75-Minute Debate (9 May 2024)

From Hansard (9 May 2024)

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Out-of-Province Contracts and Management of the Economy

The Assembly was debating the following motion moved by Aleana Young (NDP - Regina University):

That the Assembly calls on the government to stop handing public contracts to out-of-province companies connected to the government and instead prioritize the creation of jobs in Saskatchewan through hiring Saskatchewan workers and companies for public projects.

Mr. Keisig: — Mr. Speaker, always happy to get on my feet and enter into debate today. You know, my colleagues did a great job of talking about our position on the issues, Mr. Deputy Speaker, but I want to use the time that I’m allotted today and just talk about the industrial work sector and how actually things get built. And you know, I’m truly hoping that the members opposite will listen and actually learn a little bit today.

Now 20-odd years ago I was working up at Prince Albert, was one of my very first industrial jobs, at the Prince Albert pulp mill. There was a large contingent of British Columbia people, tradesmen, working there, Mr. Deputy Speaker. And then after that job completed, we were off to Hudson Bay. Weyerhaeuser was building an orientated strand board plant there. It’s actually probably one of my favourite jobs because I started that job and there was absolutely nothing there but a bare field, and 14 months later they were actually making chipboard. It was very interesting. Their main market was being shipped to Japan from that plant there.

After that went to Regina, to Co-op Refinery, worked there. There was a ton of tradesmen from Manitoba working on that job, Mr. Deputy Speaker. And then things got very slow in Saskatchewan and the majority of Saskatchewan tradesmen went to work at Fort McMurray. It was booming at the time, and there was a lot of work in Brandon at the liquid fertilizer plant.

Then in 2007 something changed, Mr. Deputy Speaker. I don’t know if I can put a finger on it. I can’t really remember. Ah, it was a new political party, led by Brad Wall, that had the privilege of forming government. New ideas, new enthusiasm, and newfound pride among Saskatchewan people, businesses, and industries. Those following years were very good with projects at Belle Plaine, two canola plants in Yorkton — both are now doubling in size — a large expansion at the Co-op Refinery, K+S Potash. Billions of dollars of investments, all employing people from all across Canada, and those were good money jobs, Mr. Deputy Speaker.

It’s important . . . I just really want to put it on the record here, Mr. Deputy Speaker. The American economy at that time was in a downward spiral due to the housing bubble, and we withstood all of that outside pressure in this province here due to the strength of our natural resource economy.

And something else happened around that time too. It was around like that 2015. I had my first opportunity to actually work with some Albertan tradesmen in the province. And what did . . . Oh, I remember. Rachel Notley had the privilege of forming government in Alberta, and I got the chance to work with a lot of Albertan welders.

Now I just wanted to just provide some historical reference just so they know how fluid construction labour is all across the country. Workers go to the jobs. And any policies brought forward by governments to prevent this is narrow-minded and does not take into account the big picture. Certain industries, they expand and they contract due to global circumstances. And it’s government’s role to understand this and bring forward policy to support industry and their workers, not hinder it.

Also it’s critical to understand, Mr. Deputy Speaker, employers like hiring local for the simple fact it saves them money. Subsistence and travel are very expensive, and they always try and hire local as much as possible. Nothing would hurt our economy more than some narrow-minded protectionist policy that — heaven forbid — the NDP Party would ever bring forward if they had the privilege of forming government.

While we’re talking about history, Mr. Deputy Speaker, let’s look at the NDP Party record. I want to read a quote into the record:

Crown Corporations minister Ken Cheveldayoff today announced the province’s Crown corporations are moving to a Saskatchewan-first investment policy in light of results of a KPMG study that showed many of the previous governments’ investments have lost money.

“We contracted KPMG to review Crown investments made outside Saskatchewan by previous governments,” Cheveldayoff said. “Over time, there’s been almost half a billion dollars invested with a target return of 22 per cent. Alarmingly the actual overall rate of return on these investments was a negative 15 per cent.”

And this is from 2008, Mr. Deputy Speaker. And it really shows how the previous NDP Party government totally mismanaged all of our Crown corporations.

Let’s look at some more. From 2001 to 2005, SaskTel invested $70 million in something called Navigata. Navigata — like I don’t even know what that is. I googled it. I googled it. It wasn’t very much help, but I did find out they have 49 followers on Twitter. So that’s 70 million bucks, 49 followers on Twitter.

In 2005 they wrote off 15 million. And just for the members opposite, when you write something off that means you lost the money. From 1994 to ’96, SaskTel invested 16 million in NST Network Services to build fibre optics for cable companies in the United States. By 1997 they’d lost all the money and closed the company. 2000, Craig Wireless . . . [inaudible] . . . invested 10 million in Craig Wireless. In two years the company was totally worthless and was written off as a total loss.

Oh, I’m running low on time, Mr. Deputy Speaker. 2007 when the NDP . . . In 2007 there was 400 cell towers across the province. I want to talk about our record, Mr. Deputy Speaker. Today there’s over 1,000 cell towers in Saskatchewan. Fibre internet is available to over 300,000 homes and businesses in the province, and 99 per cent of Saskatchewan people have access to wireless and internet services. The 2020 election platform, the NDP Party platform had exactly zero investment in rural connectivity — zero.

Now let’s talk about something very quickly here that the members opposite don’t like talking about but I really do. Let’s talk about pipelines. Between 1999 and 2001, the former government through SaskEnergy put $12 million in a company in Chile that delivers natural gas, and after 10 years had an incredibly weak rate of return. I really wish they would support pipelines across Canada, Mr. Deputy Speaker.

On this side, SaskEnergy purchased $35 million worth of pipe at Evraz. And I know the members opposite don’t understand, but Evraz really doesn’t produce much pipe that SaskEnergy needs. Evraz builds a lot of large-diameter pipe, and SaskEnergy really doesn’t use much of that.

I’m almost out of time, Mr. Deputy Speaker . . .

[Interjections]

The Deputy Chair of Committees: — Order, order.

Mr. Keisig: — I’m almost out of time, Mr. Deputy Speaker, but I have to get a couple last things on the record. My seatmate often talks about the Saskatchewan Party guiding principles. And the first one — my colleague talked about it — economic growth and job creation through the private sector. Each and every member on this side supports that idea wholeheartedly, but any policies that they bring forward that could potentially interfere with us trading with our nation of Canada can never be supported.

You know, if they brought forward their protectionist policy, then all of my friends working in British Columbia at the Kitimat LNG plant, are they going to be removed from their job? What about all the boilermakers working right now in Ontario at Darlington? Protectionist labour policies have never worked across this nation. I have no clue why the NDP would support that. The NDP Party does not support workers, it does not support businesses, and it sure doesn’t support the province. Thank you, Mr. Deputy Speaker.

After the debate, there is a 10-minute question and answer period.

Ms. A. Young: — Thank you very much, Mr. Deputy Speaker. Earlier we saw the Minister for SaskBuilds and Procurement trying to get into the debate, but I’m going to put my question to the member from Last Mountain-Touchwood. But maybe the minister would like to listen up.

Since you brought up the mill in P.A., to the member opposite, do you have some information that you could share with us about when that mill is going to be open?

Mr. Keisig: — Thank you, Mr. Deputy Speaker. I don’t have any current information on the mill, but I can tell the members of the Chamber that this province supports all of our industries. We support our forestry industry. We support the OSB [oriented strand board] plants. We support the pulp industry. And we will 5670 Saskatchewan Hansard May 9, 2024 always stand up for Saskatchewan’s interests. Thank you, Mr. Speaker.

. . .

Mr. Clarke: — Mr. Deputy Speaker, to the member from Last Mountain-Touchwood: does he have a single decent explanation for why sole-source contracts are offered to out-of-province companies when local companies could do the same work?

Mr. Keisig: — Thank you, Mr. Deputy Speaker. I don’t know where they’re getting this information of the sole-source contracts. There’s an RFP process that is very public. It’s very open. It’s very transparent. The Minister of SaskBuilds and Procurement runs a very organized ship, and we support Saskatchewan businesses all across the province. Thank you, Mr. Speaker

. . .

Ms. A. Young: — Thank you very much, Mr. Deputy Speaker. Now I heard the member from Riversdale say that the reason some of these contracts are going out of province to their friends and donors is because Saskatchewan companies, Saskatchewan businesses just can’t compete.

But my question’s to the member from Last MountainTouchwood. Does he understand what a sole-source contract is? And if yes, why would the government allow a tender to go out that specifically excluded Shercom, which is manufacturing products right here in Saskatchewan?

Mr. Keisig: — Thank you, Mr. Deputy Speaker. My question to the member opposite: does she understand what an . . .

[Interjections]

The Deputy Chair of Committees: — Order, please.

Mr. Keisig: — Thank you, Mr. Deputy Speaker. Sometimes there is only one person, one specific industry that bids, a solesource contract. But the vast majority of them are RFPs that go out. People bid. It’s a very open, very transparent policy. Thank you, Mr. Deputy Speaker.

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