FIRST SESSION - TWENTY-EIGHTH LEGISLATURE of the Legislative Assembly of Saskatchewan ____________ DEBATES and PROCEEDINGS ____________ (HANSARD) Published under the authority of The Hon. Corey Tochor Speaker N.S. VOL. 58 NO. 34B TUESDAY, NOVEMBER 1, 2016, 19:00 MEMBERS OF THE LEGISLATIVE ASSEMBLY OF SASKATCHEWAN 1st Session — 28th Legislature Speaker — Hon. Corey Tochor Premier — Hon. Brad Wall Leader of the Opposition — Trent Wotherspoon Beaudry-Mellor, Hon. Tina — Regina University (SP) Makowsky, Gene — Regina Gardiner Park (SP) Beck, Carla — Regina Lakeview (NDP) Marit, Hon. David — Wood River (SP) Belanger, Buckley — Athabasca (NDP) McCall, Warren — Regina Elphinstone-Centre (NDP) Bonk, Steven — Moosomin (SP) McMorris, Don — Indian Head-Milestone (Ind.) Boyd, Bill — Kindersley (SP) Merriman, Hon. Paul — Saskatoon Silverspring-Sutherland (SP) Bradshaw, Fred — Carrot River Valley (SP) Michelson, Warren — Moose Jaw North (SP) Brkich, Greg — Arm River (SP) Moe, Hon. Scott — Rosthern-Shellbrook (SP) Buckingham, David — Saskatoon Westview (SP) Morgan, Hon. Don — Saskatoon Southeast (SP) Campeau, Jennifer — Saskatoon Fairview (SP) Nerlien, Hugh — Kelvington-Wadena (SP) Carr, Lori — Estevan (SP) Olauson, Eric — Saskatoon University (SP) Chartier, Danielle — Saskatoon Riversdale (NDP) Ottenbreit, Hon. Greg — Yorkton (SP) Cheveldayoff, Hon. Ken — Saskatoon Willowgrove (SP) Parent, Roger — Saskatoon Meewasin (SP) Cox, Herb — The Battlefords (SP) Phillips, Kevin — Melfort (SP) D’Autremont, Dan — Cannington (SP) Rancourt, Nicole — Prince Albert Northcote (NDP) Dennis, Terry — Canora-Pelly (SP) Reiter, Hon. Jim — Rosetown-Elrose (SP) Docherty, Mark — Regina Coronation Park (SP) Ross, Laura — Regina Rochdale (SP) Doherty, Hon. Kevin — Regina Northeast (SP) Sarauer, Nicole — Regina Douglas Park (NDP) Doke, Larry — Cut Knife-Turtleford (SP) Sproule, Cathy — Saskatoon Nutana (NDP) Duncan, Hon. Dustin — Weyburn-Big Muddy (SP) Steele, Doug — Cypress Hills (SP) Eyre, Hon. Bronwyn — Saskatoon Stonebridge-Dakota (SP) Steinley, Warren — Regina Walsh Acres (SP) Fiaz, Muhammad — Regina Pasqua (SP) Stewart, Hon. Lyle — Lumsden-Morse (SP) Forbes, David — Saskatoon Centre (NDP) Tell, Hon. Christine — Regina Wascana Plains (SP) Hargrave, Hon. Joe — Prince Albert Carlton (SP) Tochor, Hon. Corey — Saskatoon Eastview (SP) Harpauer, Hon. Donna — Humboldt-Watrous (SP) Vermette, Doyle — Cumberland (NDP) Harrison, Hon. Jeremy — Meadow Lake (SP) Wall, Hon. Brad — Swift Current (SP) Hart, Glen — Last Mountain-Touchwood (SP) Weekes, Randy — Biggar-Sask Valley (SP) Heppner, Nancy — Martensville-Warman (SP) Wilson, Hon. Nadine — Saskatchewan Rivers (SP) Kaeding, Warren — Melville-Saltcoats (SP) Wotherspoon, Trent — Regina Rosemont (NDP) Kirsch, Delbert — Batoche (SP) Wyant, Hon. Gordon — Saskatoon Northwest (SP) Lambert, Lisa — Saskatoon Churchill-Wildwood (SP) Young, Colleen — Lloydminster (SP) Lawrence, Greg — Moose Jaw Wakamow (SP) Party Standings: Saskatchewan Party (SP) — 50; New Democratic Party (NDP) — 10; Independent (Ind.) — 1 Clerks-at-the-Table Clerk — Gregory A. Putz Law Clerk & Parliamentary Counsel — Kenneth S. Ring, Q.C. Hansard on the Internet Principal Clerk — Iris Lang Hansard and other documents of the Clerk Assistant — Kathy Burianyk Legislative Assembly are available within hours after each sitting. Sergeant-at-Arms — Terry Quinn http://www.legassembly.sk.ca/legislative-business/legislative-calendar LEGISLATIVE ASSEMBLY OF SASKATCHEWAN 1055 November 1, 2016 [The Assembly resumed at 19:00.] Mr. Speaker. This talks about . EVENING SITTING An Hon. Member: — Who is it dedicated to? The Deputy Speaker: — It now being 7 o’clock, I’ll call the Ms. Sproule: — Oh, and it is actually dedicated to the memory Assembly to order. of Tommy Douglas. So there you go, Mr. Speaker. My colleague is obviously familiar with the book. GOVERNMENT ORDERS This is the story of SaskEnergy, and here’s how it goes: ADJOURNED DEBATES The decision that finally turned public opinion against the SECOND READINGS Devine government’s privatization campaign was the attempt to sell SaskEnergy, the natural gas division of Bill No. 40 SaskPower. When Devine initially announced his privatization program, he had specifically exempted public [The Assembly resumed the adjourned debate on the proposed utilities. [That sounds familiar, Mr. Speaker.] Despite this motion by the Hon. Mr. Wyant that Bill No. 40 — The clear and unequivocal commitment, Eric Berntson, the Interpretation Amendment Act, 2016/Loi modificative de 2016 minister responsible for SaskPower, informed the sur l’interprétation be now read a second time.] legislature in May of 1988 that SaskPower was being split into two parts, an electric utility and a natural gas utility, The Deputy Speaker: — I recognize the member from the latter renamed SaskEnergy. When asked whether this Saskatoon Nutana. separation was preliminary to the privatization of the gas division, Berntson answered that it had “absolutely nothing Ms. Sproule: — Thank you very much, Mr. Deputy Speaker. to do with the sell-off of anything.” And I hope to pick up where I left off just before the break and provide some further edification and commentary on the notion That sounds remarkably familiar to some of the commentary of privatization and what’s being proposed by the government we’re hearing from the Minister of Justice this week, Mr. in this rather strange bill where we see sort of a back door entry Speaker. Now I’ll continue: into the world of privatization through something called The Interpretation Act, Mr. Speaker. And I highlighted a few Despite this assurance, George Hill, the president of concerns before the break, and I have several more to raise SaskPower, stated in January 1989 that the only thing before I finish my comments this evening. holding back the privatization of SaskEnergy was cabinet approval. Hill, a lawyer from Estevan, was a former One of the things that I think is important to note about this bill provincial PC party president and had helped arrange for is the fact that the government is creating something that Grant Devine to be parachuted into the Estevan doesn’t exist pretty much anywhere else in terms of a hybrid constituency. He was both a power to be reckoned with in publicly owned, privately owned corporation. Privatization has the Tory Party and a strong supporter of privatization; occurred in many, many, many different forms throughout the when British privatization expert Oliver Letwin came to western world and actually throughout the world in the last 40 Regina, he worked out of an office down the hall from years since the advent of neoliberalism in mainstream Hill’s office in the SaskPower building. Given Hill’s governments. political influence, his public statements hinting at the sale of SaskEnergy had to be taken seriously. But what’s happening here, I’ve tried to find examples of, and perhaps some exist, but in my research that I was able to do, I Deputy Premier Berntson began to go through various wasn’t able to find any examples of this beast that can only be verbal contortions to explain away the fact that the called a hybridization of public and private ownership in one government intended to privatize the utility. particular animal. And I’ll stop there for a second, Mr. Speaker. Again we see this And what it reminds me of, Mr. Speaker, is a children’s story same kinds of verbal contortions taking place here this week that I used to read to my kids, and it’s a little bit scary. Of when we see this government attempting to redefine course, in this story, things actually end all right. But see if I privatization to create this beast of this hybrid private-public can find it here; maybe I’ve lost my tag. It’ll show up corporation with no regard to all the legal implications and eventually and some of these tags I want to speak to. certainly all the confusion that it’s going to create. At any rate, I guess I’ll start instead with a story. And one of the I’ll continue: things we do talk about here, Mr. Speaker, is the notion that past behaviour is a good indicator of future performance. And I When asked what Devine had meant when he said “basic think we have a good example of that in something that utilities” would not be touched, Berntson replied that the happened in 1986. And this a story about SaskEnergy. So I’m natural gas distribution system was not a utility. Pressed to going to read from a book called Privatizing a Province: The define what he meant by a “utility,” he irritably advised the New Right in Saskatchewan by James Pitsula and Ken reporter, “Look, if you’re looking for a definition, ask Rasmussen. And this book was published, I believe, in 1990, Webster.” [He didn’t ask the World Bank, he asked 1056 Saskatchewan Hansard November 1, 2016 Webster.] Webster’s dictionary defines a utility as following the privatization of SaskEnergy, electrical rate “Something useful to the public, especially in the service increases would be kept below 3 percent per year and that of electric power, gas, water, telephone, etc.” George Hill they would be kept below the rate of inflation for ten did not bother with these linguistic gymnastics: “The years. To sweeten the pot even more, the government opposition will attempt to say that Devine changed his promised to cut electricity rates for all skating and curling mind. I say, so what? It happens every day of the week in rinks in Saskatchewan by 50 percent, a policy that was everyone’s life.” sure to win votes in the province’s many small towns, where the ice rink served as the main community centre. So we go on: In addition, all Saskatchewan residential and farm customers would be provided with a 5 percent discount on One of the main reasons Hill gave for the privatization their electricity bills up to $100. This could either be taken was the need to reduce SaskPower’s $2.2 billion debt . as a cash saving, or in the form of free shares in SaskEnergy.