Since the topic of selling SaskTel was raised once again within the political realm last week, observers have to come to the conclusion that this government is more than willing to entertain purchase offers.
Should we plead for the retention of this valuable Crown corporation jewel?
With former health minister Dustin Duncan moving into the SaskTel guidance portfolio, we can read that as a second sign that this is a subject that has moved well past the “what-if” discussion stage.
We should be hearing word any day now from national and international telecom companies such as Verizon, Bell, Rogers and Telus, who will come calling to express interest in winning the SaskTel sweepstakes.
Our premier has expressed concerns that, if nothing is done, SaskTel will be left out in the cold in this particular part of the communications world.
But, we can remind him that Saskatchewan has been a lone wolf on various fronts before and has come out on the other side, unscathed and, prosperous, especially when it comes to Crown corporations. We like them, and for good reason.
The temptation to sell is understandable. Take $4 billion, eliminate the operating debt to zero, use the money that would be saved in interest just servicing the debt and invest it in something else worthwhile.
Unfortunately, we can pretty well guarantee that would not happen. Governments don’t think and plan that far ahead. More than likely, those savings would be gobbled up almost immediately on some other project, like payments on a Regina bypass or digging health regions out of financial holes. Saskatchewan flops when it comes to building legacy funds for the future.
There is also the spectre of job losses looming over a prospective sale.
Sure, the buyers would be willing to sign agreements to retain jobs in the province, keep the headquarters here and do what’s right for Saskatchewan people.
Believe us when we say, that signal of goodwill would last about one year, two if we’re lucky, no matter what the contract stipulates. When it comes to mega corporations, the signals that are sent after purchase are usually, “try and stop us.”
Remember the promise to keep Sask-Oil vibrant and ever-present in Saskatchewan? Do you recall what happened to the Saskatchewan Wheat Pool? This evolved into the retention of a symbolic head office in Regina while decisions and money flows to and from Calgary.
Ask the steel companies in Ontario what happens with foreign ownership.
The profits would flow to a head office and CEOs and shareholders stationed anywhere but Saskatchewan. Hello tax haven.
Would a takeover telecom continue to serve Saskatchewan’s north, rural and remote regions as thoroughly as SaskTel has done with the currently clear mandate to serve all?
We know they wouldn’t. SaskTel, SaskPower and SaskEnergy were made necessary in Saskatchewan because corporate Canada was not willing to do the work and take the risk. That attitude has not changed. Shareholders and their dividends dictate the terms, not the public’s needs and sometimes the two don’t mesh.
This little bit of socialism in Saskatchewan does actually work and Premier Wall knows that, and that is why we hope he remembers that fact before signing off on any sales agreement.
What is good for the province, is not always what is good for a business.
SaskTel continues to make money and sends profits to the government through its current shareholders, Saskatchewan’s resident population.
Saving tens of millions of dollars in interest payments on operating deficits is tempting, but the benefits would be short-lived.
So, selling SaskTel? We say nope, not this week.
