By Katie Ryan
Saskatchewan’s pink mineral is causing a stir. The future of the Potash Corporation of Saskatchewan is on the table since Australian mining giant BHP Billiton made a $38.6 million US takeover bid for the Saskatoon-based fertilizer company.
The Saskatchewan government is considering its options, however, local MLA Tim McMillan said ultimately the mineral is the property of the people.
“What it comes down to is Saskatchewan owns the resource – the people of Saskatchewan own the resource. As a government we are responsible to ensure that we get the most for it, the resource is the property of the people of Saskatchewan and as a government we have to look at it through that lens. How does this deal and change in ownership affect the resource itself?” he said.
“We are going to take a good look at it, we are consulting people who have experience in the field of the potash industry as well as these big deals in general.”
BHB Billiton executives have vowed to make Saskatoon the headquarters of its global potash operation if it is successful with its multi-billion offer. PotashCorp shareholders have until Oct. 19 to decide whether or not to accept BHP’s $130 US per share cash offer and until then McMillan said there won’t be any snap decisions on behalf of the provincial government.
“It’s going to be a slow process as it rolls out and we are going to be there all the way defending the interests of the people of Saskatchewan,” he said.
NDP leader Dwain Lingenfelter expressed his concern regarding the multi-billion dollar offer and is calling on both the federal and provincial governments to guarantee that Saskatchewan’s people will be heard.
“We were very worried about the possibility of the Federal Government just rubber stamping and signing off the sale of the potash corporation before the people of Saskatchewan had a chance to review the deal,” he said in an interview with the Source.
“We are urging them not to sign and allow for the sale until the owners of the resource, that being the people of the province, have the time to check the arrangement.”
The Opposition leader wrote Federal Industry Minister Tony Clement last week asking that Ottawa review Saskatchewan residents’ concerns before they approve any foreign takeover of the PotashCorp.
Lingenfelter also questions whether the Sask. Party has the province’s best interests at heart.
“While (Premier) Wall meets behind closed doors with foreign investors and government officials, BHP’s bid appears to be moving quietly ahead, and no one is speaking out to safeguard the interests of the people of Saskatchewan,” said Lingenfelter.
McMillan however, said the government is standing up for Saskatchewan and said the government puts people before profit.
“It’s a big issue, it’s a massive offer from one of the world’s largest companies and it’s something that the provincial government is certainly not taking lightly,” he continued.
“I know our premier is taking counsel from several people that have experience with the potash industry in Saskatchewan, with big deals like this and how it can affect the province.”
According to a new Insightrix poll commissioned by News Talk 650 CKOM, 55 per cent of Saskatchewan residents oppose BHP Billiton’s bid, while 22 per cent are indifferent and 10 per cent of people are unsure about the issue. In favour of the BHP’s multi-billion dollar offer are about 14 per cent of Saskatchewan residents. While Lingenfelter expressed reservations on the accuracy of the poll, he agrees there is substantial public concern particularly regarding the details of BHP’s offer.
“We need to see what the deal is and then make sure that what they are telling us is in a hard-writing, legal agreement so that we understand that the head office jobs will be in Saskatchewan and that good paying jobs remain at the mine site,” he said.
“I think what the Wall government is forgetting is that this resource – the potash – is owned by the people of Saskatchewan. We want to be very careful, and I know the public is of this view as well, that we make sure we maximize the returns of jobs and income for the owners of the resource.”
Before any decision is made said McMillan, the government will protect the “people’s potash.”
“That is something absolutely that our government takes into consideration,” he said of the poll results. “Foreign ownership rules do fall under the federal jurisdiction and they have to make some decisions around that. We are elected by the people of Saskatchewan, that’s whose interests we are looking out for. The resource itself is owned by the people of Saskatchewan.”