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Ccall, Deputy Chair Regina Elphinstone-Centre STANDING COMMITTEE ON CROWN AND CENTRAL AGENCIES Hansard Verbatim Report No. 6 – April 26, 2012 Legislative Assembly of Saskatchewan Twenty-seventh Legislature STANDING COMMITTEE ON CROWN AND CENTRAL AGENCIES Mr. Greg Brkich, Chair Arm River-Watrous Mr. Warren McCall, Deputy Chair Regina Elphinstone-Centre Mr. Gene Makowsky Regina Dewdney Mr. Scott Moe Rosthern-Shellbrook Mr. Roger Parent Saskatoon Meewasin Mr. Randy Weekes Biggar Ms. Nadine Wilson Saskatchewan Rivers Published under the authority of The Honourable Dan D’Autremont, Speaker STANDING COMMITTEE ON CROWN AND CENTRAL AGENCIES 83 April 26, 2012 [The committee met at 13:15.] going on to questions? I recognize Mr. McCall. The Chair: — Welcome to the meeting this afternoon. I believe Mr. McCall: — Thank you very much, Mr. Chair. Thank you, we have two substitutions. Substituting for Mr. Scott Moe is Minister, and your officials for joining us here today. These Victoria Jurgens and substituting for Roger Parent is Darryl estimates are of course statutory, and as such there are questions Hickie. We also have one document to table which is that we’d probably have for the minister and officials under the distributed to members today. This is CCA [Crown and Central heading of annual reports, consideration under the Crown and Agencies] 41/27, Information Services Corporation of Central Agency Committee’s consideration thereof. Saskatchewan’s annual report, 2011. But in terms of page 162 of the budget book, last year the This committee today will be considering the estimates of estimated statutory figure was $6.8 million in terms of loan Saskatchewan Gaming Corporation, Saskatchewan Liquor and activity under vote 139. This year there is not. Could the Gaming Authority, Saskatchewan Power Corporation, minister or officials reflect upon or comment upon the change Saskatchewan Telecommunications Holding Corporation, in activity last year to this? Saskatchewan Water Corporation, SaskEnergy Incorporated, and Saskatchewan Opportunities Corporation, in that order. Hon. Mr. Cheveldayoff: — Absolutely. Thank you very much to the member for his question. Sask Gaming’s estimates for General Revenue Fund 2011-2012 included a $6.8 million loan. However the Lending and Investing Activities corporation did not require those funds due to lower than Saskatchewan Gaming Corporation anticipated capital expenditures in 2011. The actual capital Vote 139 expenditure was $3.9 million and that was funded out of Sask Gaming’s cash flow. So therefore no debt financing was Subvote (GC01) required, and it is represented there. The Chair: — To start with, we will begin discussions with the Mr. McCall: — Under that heading, are there are ongoing Saskatchewan Gaming Corporation. We will begin the activities in the budget year to come that, given the experience discussion with vote 139, the Saskatchewan Gaming last year, are there similar activities to be cash flowed this year, Corporation, loans subvote (GC01). I would welcome the Mr. Minister? minister here, if he wants to introduce his officials, and if he has any brief opening statements, we will go with that. Hon. Mr. Cheveldayoff: — Thank you very much for the question. Yes indeed, there are similar expenses that will be Hon. Mr. Cheveldayoff: — Thank you very much, Mr. Chair. incurred, but they will come out of operating revenues and be It is indeed a pleasure to appear before your committee and to funded through cash flow. all members present. Thank you very much for the opportunity. I’d like to begin by introducing my officials of the Mr. McCall: — Are those maintenance? How would the Saskatchewan Gaming Corporation with me here today. To my minister characterize those activities? Are they more of a left is Tony Coppola. He’s the senior vice-president of finance maintenance nature, or is there new expansion being undertaken and administration. And next to him is Wendy Hutchison who of the existing SGC [Saskatchewan Gaming Corporation] is the controller for the Saskatchewan Gaming Corporation. facilities? Would the minister care to comment? Sask Gaming makes a significant contribution to the provincial Mr. Coppola: — My name is Tony Coppola. Thank you for the economy and Saskatchewan communities. It continued to do so question. Yes, the activities in 2012 will be similar to 2011. The in 2011. Its revenue was $134.6 million, and net income before most significant purchases in the capital side in the organization payment to the GRF [General Revenue Fund] was $51.7 are on the slots, slot machines, and also on the information million. For 2011, 50 per cent of net profit, or $25.9 million technology side. Those are the two largest expenditure was provided directly to the GRF to support commitments to categories for capital. the Community Initiatives Fund and the First Nations Trust. Its payroll and benefits were $42.2 million. Saskatchewan Gaming Mr. McCall: — Thank you very much, Mr. Coppola. What is Corporation made purchases from Saskatchewan businesses of the magnitude of the expenditure? And what’s the division close to 22.8 million, fulfilled contractual obligations to between slots and the information technology buy? exhibitions for 3 million, paid 1.6 million in municipal taxes, and sponsored close to $800,000 for community activities. It Mr. Coppola: — Both slots and information technology, on an declared a dividend of $20.7 million to the Crown Investments annual basis, are approximately 2 to $3 million dollars. Our Corporation to support other priorities of government. annual capital budget is in the order of 5 to 7 million on an annual basis, and on every fifth or sixth year, the casino I do have a longer opening statement, Mr. Chair, but I think in properties require a significant renovation and that can be in the the interest of time I’ll stop there and entertain any questions at order of 15 to 20. The last refresh that was done was 12 million. this time. Mr. McCall: — Thank you very much, Minister and officials. I The Chair: — Thank you, Mr. Minister. With that I’ll just ask guess I’d cede the floor at this point to my colleague, the that the first time the official does come to the mike, they can member from Rosemont. Seeing no . Again it’s a statutory introduce themselves; after that, they don’t have to. Are we consideration under the Act. We’re glad to have the better 84 Crown and Central Agencies Committee April 26, 2012 understanding of what had happened with the request last year central operating system replacement, and 5.6 million for the to this. So at this time, Mr. Chair, we would conclude. That’s retail liquor purchasing pricing and warehouse information the finish for our remarks. We just thank the minister and system, $5 million for the regulatory compliance information officials for their time. system. And I believe that is the items before us. Those are the main items before us. The Chair: — Thank you, Mr. Minister. And then I guess we will move on to the Saskatchewan Liquor and Gaming Mr. McCall: — Thank you very much, Mr. Minister. The $106 Authority. We won’t take a break, but we’ll be a minute as we million anticipated for the VLT replacement schedule, please change ministers and officials. tell us a bit more about that. How many VLTs? Who’s the vendor? How are these sourced? If you could just break that General Revenue Fund down for us a bit, Mr. Minister. Lending and Investing Activities Saskatchewan Liquor and Gaming Authority Hon. Mr. McMillan: — Mr. Chair, there will be 4,000 VLTs Vote 142 and the RFP [request for proposal] on that has been released and closed. We’re currently in the process, now that the RFP Subvote (GA01) has closed, looking at possible vendors. It’s possible there could be one, as few as one or as many as four successful bidders. For The Chair: — We’re back. In front of us, just before we the central operating system, same thing. The RFP was publicly proceed, there is another substitution. Substituting for Mr. released and has since closed. We’re viewing the results of that Randy Weekes is Kevin Doherty. I think I pronounced that RFP as well, and there will only be one successful bidder in that wrong, but I think the member will forgive me. Up before us one. right now is the Minister for Saskatchewan Liquor and Gaming Authority. If he has a brief statement, I would ask . and also Mr. McCall: — When does the minister anticipate conclusion if he wants to introduce his officials. And the first time an of that consideration and announcement of a successful bidder? official comes to the mike, if he would just introduce himself the first time. Hon. Mr. McMillan: — Within the next couple of months. We will begin the discussion with vote 142, Saskatchewan Mr. McCall: — The bids that are on the table, are they from Liquor and Gaming, loans, subvote (GA01). And I’ll turn the . I’m presuming this is a fairly specialized set of floor over to the minister. technologies. Tell us a bit about who would be applying under the RFP process, who would be putting in bids, if you could, Hon. Mr. McMillan: — Thank you, Mr. Chair. Per the request Mr. Minister. of the committee to limit our remarks, I would like to introduce my officials before we begin. To my right is Mr. Barry Lacey, [13:30] president and CEO [chief executive officer] of SLGA [Saskatchewan Liquor and Gaming Authority]. To my Hon. Mr. McMillan: — Mr. Chair, the companies that are immediate left is Mr. Rod Wiley, chief financial officer; and to involved in this process, we do not feel we have legal grounds my far left is Mr.
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