In recent months, the Saskatchewan government has made three small but significant changes in how it relates to the private sector. Fortunately, the announcements of less government investment in the economy, the introduction of semi-private specialty wine stores, and more public-private partnerships were positive developments for taxpayers.

The boldest move by the province means less corporate welfare from taxpayers. However, explaining the situation is a bit like peeling back the layers of an onion. Back in the NDP era, the government-owned Crown Investments Corporation created another company called Investment Saskatchewan (IS).  IS’s sole purpose was to sink taxpayer dollars into businesses. Later, in 2006 the board of IS formed a private company called Victoria Park Capital (VPC) to make and manage these investments.

In a bizarre twist, IS signed a five-year contract with VPC in 2006. Under its terms, the Saskatchewan government would have to provide VPC with $25-million of investment capital each year from 2007 to 2011, with an automatic renewal extending through 2014. This guaranteed $200-million would go from taxpayers’ pockets to Saskatchewan companies. Fortunately, the Sask Party government had other ideas.

“We are not going to continue to put taxpayers' money into high-risk investments through Victoria Park Capital or anyone else. That's the bottom line," Minister of Enterprise and Innovation Lyle Stewart told the Saskatoon Star-Phoenix in December. In fact, the province introduced new legislation freeing the province from any obligation to give VPC more taxpayer dollars.

Stewart said a negotiated settlement is preferable to legislation. However, one wonders what the cost would be to buy-out the contract. The province paid $17-million to VPC in management and performance fees in just two years. The cost over five, or even eight years, would be enormous.

Then, Dan D’Autremont had more good news. The Minister for the Sask Liquor and Gaming Authority (SLGA) announced that tenders would be issued for two new specialty wine stores—one in Regina and one in Saskatoon . The stores would operate on the same arrangement that the SLGA has with its rural vendors. The move means that licensed restaurants and establishments will have a more ready supply of wines that are a bit less common. In addition, rural vendors will also be able to make special orders for products not normally carried by the SLGA. Government’s grip on the liquor monopoly got just a little looser.

D’Autremont made another announcement early in the new year, advancing a proposal the Canadian Taxpayers Federation has advocated for years. The province will now subject all capital projects that cost more than $25-million for consideration as a public-private partnership (P3). A P3 is a legally binding contract between a government and a private company for the delivery of products or services. It often extends beyond the responsibility for designing and building a facility to managing and operating it as well.

In British Columbia, Partnerships BC has overseen many P3 projects over the past eight years, often with great success. At times, the private sector has knowledge and expertise the government doesn’t. When structured properly, P3s can ensure that infrastructure is built on time and on budget, often with minimal taxpayer contributions.  At the very least, it costs taxpayers nothing to ask for a P3 proposal to at least see whether money can be saved.

Some naysayers will haul out the old boogeymen arguments against private sector invovlement in public services or liquor sales. Fortunately, the Saskatchewan government hasn't been scared-off of solutions that offer greater value for the taxpayer dollar.  Hopefully, this is just the beginning.