The Government of Saskatchewan has created a number of provisions in its 2017-18 budget to cut back on government expenditures. Among those provisions is the cessation of the Saskatchewan Transportation Company (STC) subsidy, and the eventual winding down of the Crown corporation, later this spring. STC will stop accepting parcels for its freight service on May 19, and will shut down its passenger service on May 31. Joe Hargrave, minister
of the Crown Investments Corporation (CIC), Saskatchewan Government Insurance (SGI) and STC, stated that STC’s service is underused and becoming too expensive to continue to subsidize. “One of the toughest parts about the whole decision to wind down STC is the 224 employees that STC has,” said Hargrave. “They have been good employees, and they’ve done a good job with what they had.” Hargrave stated that STC has done everything it could, over the last few years, to operate efficiently and be profitable, but that
it has seen a continually increasing need for subsidization. STC is forecasted to require more than $85 million in subsidies, over the next five years, to continue operating. “Our government believes that those funds can be put to better use elsewhere in government,” said Hargrave. “We also have to look at the fact that ridership has been declining.” Ridership has decreased by 35 per cent, since 2012. STC has lost 18,000 rides over the years, making the subsidy, per ride, go from $25 per ride in 2007 to $94 per ride, today. A media release from
the Government of Saskatchewan described a number of trends that have also contributed to the decline of the viability of the continued operation of STC. These trends include: a steady decline in provincial ridership, with only two of STC’s 27 routes being profitable; an overall decline in Canadian intercity bus travel; strict competition with the parcel delivery sector and no options left to limit the growth of the subsidy STC needs to remain in operation. The release stated that over the course of the 1990s, STC cut 13 routes, and reduced service frequencies over
the years. In 2012, STC began to further reduce frequency rates, with schedule adjustments on many of its routes. Hargrave said, “That was just very substantial. As a business decision, it is quite understandable to shut down the STC, but I do feel for the employees, and want to thank them for their great work.” The decision to shut down STC has met some resistance, since many in remote areas in the province rely on the transportation service as a lifeline to larger centres for the services they get there, such as health care. Hargrave said
he believes that inevitably, businesses will move in to take over, and fill the need that arises when STC ends its service. “These are people who come into larger cities to visit family or for medical purposes. There will be other non-profit organizations, service clubs, or private entrepreneurs who will pick up on that, see the need, and see that opportunity and jump in,” said Hargrave. “This is Saskatchewan. I grew up in small town Saskatchewan, and I know what neighbours and families and friends do. They will make sure people get to where they’re going.”
