The spring legislative session wrapped June 30, in a big way.
A long-awaited auditor’s report regarding the audits at the Global Transportation Hub Authority (the GTH) and the Ministry of Highways and Infrastructure (Ministry) on acquiring land, was released that day.
According to a statement issued from the provincial auditor’s office, the audit found not enough was done to reduce taxpayers’ exposure to increases in land values.
“Our office recommends that the government explore alternate approaches to optimize the timing of land acquisitions for major public improvements like the Regina Bypass Project,” Provincial Auditor Judy Ferguson said in that statement.
“In addition, it must balance keeping the public informed, managing public resources prudently and providing landowners with amounts reflecting fair value.”
The auditor’s report touched off a heated exchange, the last one of the spring session, between opposition leader Trent Wotherspoon and Premier Brad Wall in Question Period that day. As expected Wotherspoon took aim at Energy Minister Bill Boyd in his remarks.
Highlights of some of that extensive exchange in the Legislature are below, from Hansard.
Mr. Wotherspoon: —Mr. Speaker, the auditor’s report that was released today displays and confirms incredible waste by that government with their GTH [Global Transportation Hub] land scandal. Terrible processes, insufficient processes are described. It does nothing to exonerate that government, that minister…
Why is the Premier, in his position of trust with the people of Saskatchewan, why did he try to defend a deal as indefensible and wasteful as exposed through this investigation? Why didn’t he come clean a long time ago?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: —… Mr. Speaker, it’s pretty clear that there are some recommendations here that need to be acted on — two for the GTH, eight in respect of the Ministry of Highways. I also want to say this for the record, Mr. Speaker. We’ve said it would be the kind of government that admits to mistakes when they’ve occurred and then seek to address those mistakes. The mistakes that the auditor has highlighted in the report around the particular parcel of land that’s received most of the focus of the debate is a lack of focus and coordination on the part of government in terms of assembling the land, purchasing the land, which may have well led to the land ... to the prices for the land being too high by the time of purchase. And for that we take responsibility.
Mr. Speaker, the context is a massive land assembly for an important project at a time of historically escalating land prices, but that’s not an excuse. It is a unique situation. We should have been up to the task of meeting that very unique situation with respect to the land purchases.
I am still confident, based on recent sales at the GTH, that taxpayers are going to actually still make money on the purchase. But we accept the recommendations of the report, Mr. Speaker, and we will be implementing those recommendations.
The Speaker: —I recognize the Leader of the Opposition.
Mr. Wotherspoon: —This is no small matter. How incredibly weak and dismissive, Mr. Speaker...
… It didn’t have any documentation. The report finds that the GTH consistently pays more, way more than appraised values, and they didn’t keep appropriate documentation for the purchase of said land, pages 28 and 29, that the GTH treated landowners unfairly — of course that includes the nuns. There was never even a proper business case done for why they needed this land in the first place, and that the GTH and the GTH board had no clear direction as to how the process of buying land was supposed to happen.
They needed direction from their board Chair. The Chair was the minister. He failed, and millions of hard-earned tax dollars, taxpayers’ dollars, were wasted. Why would the Premier, for so long and to such great lengths, try to defend a deal when the processes were obviously so weak and so suspect?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: —Mr. Speaker, we do take the matter seriously. That’s why we referred the matter to the Provincial Auditor in the first place. That’s why there has been an unprecedented level of co-operation between the government and the auditor, including the full access to cabinet documents for the Provincial Auditor. And, Mr. Speaker, as I’ve already noted in the answer, there’s some important recommendations here. The auditor has highlighted what the challenges were with respect to escalating prices and a government’s need to have been better co-ordinated, have better communications between the ministries of Highways and the GTH, and we will be implementing those recommendations.
And she does comment on the involvement of the minister. In fact the Provincial Auditor’s report says that the GTH minister got involved in the land purchase in the fall of 2013 because he had become “ ... increasingly concerned about the rapid escalation of land prices around Regina and the GTH’s and ... [Ministry of Highways’] ability to buy the East Parcels in the near term.”
Mr. Speaker, so yes, the minister was involved to try to mitigate the cost implications of escalating prices. Moreover, I will read this from the press release that was just issued by the office:
‘The audit focused on the GTH’s processes to acquire land from the private sector. The audit did not find evidence of conflicts of interest, or indications of fraud or wrongdoing by the GTH management or the Board of Directors.’
The chairman of the board of the directors is the minister.
The Speaker: —I recognize the Leader of the Opposition.
Mr. Wotherspoon: —… The appraisal that the Premier’s been hiding behind, the appraisal that the Premier’s been hiding from Saskatchewan people, the appraisal that the Premier has used as his justification to spend this exorbitant sum on this small parcel of land, was never even reviewed. Of course the payments went to the speculators with relationship to government.
Why would the Premier stand behind an appraisal his government never even reviewed before they purchased this land and wasted dollars? It’s almost unbelievable, Mr. Speaker. Why would he stand behind it?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: —Mr. Speaker, I would want to point out for the record that the Conflict of Interest Commissioner had already reviewed, upon the request of the minister, issues related to this transaction, indicating there was no conflict of interest.
Now the Provincial Auditor has quite clearly stated that there was no conflict of interest, neither with respect to the allegations of fraud that the member continues with. They were not found as well with respect to her work.
The Leader of the Opposition, just moments ago, told members on this side of the House to read the report. I invite him to do the same thing, especially given the absurdity of that last question.
… But let’s be very clear. The recommendations with respect to Highways and GTH are very real and important in terms of the need for action. But the auditor says, and I quote again: “The audit did not find evidence of conflict of interest or indications of fraud or wrongdoing by the GTH management or the board of directors.” And the Chair of the board of directors is the minister responsible.
The Speaker: —I recognize the Leader of the Opposition.
Mr. Wotherspoon: —The Premier’s getting worked up here today, but he’s not answering the questions for Saskatchewan people…
You know, this is the same appraisal touted by the Premier for months as his defence, the one that was never even reviewed by the government before inking the purchase for that outrageous price. The auditor has stated that, had government actually reviewed this appraisal ... And the Premier should read this report, and I urge him to. It states right in there, had he reviewed this report, they would have seen it for what it is and it would have put government in a position, a position I would hope that would have prevented the waste of millions of dollars.
How can the Premier stand behind this appraisal as his defence?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: —Mr. Speaker, I will read again a quote from the report. The report states that the agreed-upon sale price “ ... include considerations (e.g., impact of market conditions at time of sale) in addition to the appraised value . . .” Mr. Speaker.
Moreover, we know that since the transaction ... The appraised value was for $129,000 an acre. The actual deal was for $103,000 an acre. That’s what the government eventually paid, and since then we’ve seen transactions much, much higher than that. So that does not take away from the fact that we need to implement the recommendations of the auditor and recognize that the process could have been better managed by the government and by the cabinet. For that I take responsibility.
But let’s be very clear. The appraised value, the appraisal is not completely irrelevant. And the market has weighed in since. The market has weighed in with an actual transaction that’s much in excess of that appraisal.
The Speaker: —I recognize the Leader of the Opposition.
Mr. Wotherspoon: —Let’s be clear here. The investigation did not fully investigate the relationships or flow of information between the minister, cabinet or government, and the land speculators with a relationship to government.
What is known though, and what’s made clear in this report, is that the minister was aware of the need to act and to purchase the 204 acres at the very least, at the very least, months before the company and the land speculator that he apparently rents land from offered that purchase of the land.
My question to the Premier: does the Premier know what information the minister’s apparent landlord had that caused him to act to purchase this land?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: — I want to invite the member to say what he just said outside the House. If he stands by that, he ought to have the courage for that little bit of drive-by smearing we’ve seen from him and members opposite and from his predecessor. He ought to say it outside the House.
The fact of the matter is that in the first paragraph of the auditor’s press release, and I’m going to read it again:
The audit focused on the GTH processes to acquire land from the private sector. The audit did not find evidence of conflicts of interest, or indications of fraud or wrongdoing by the GTH management . . .
The board, or the minister who is the chairman of the board. That’s what the auditor said today. So now is your chance to maybe disagree with what the auditor’s findings are, if that’s your position. I would also say this: just a few weeks ago in this House, when there was a breach of privilege committed by the Finance critic, the Leader of the Opposition quite rightly asked for all members to consider that each other are honourable, that we are all hon. members working to do the work of the people.
In this case we’ve had the minister say there’s no connection. We’ve had the Conflict of Interest Commissioner say there’s no conflict. We’ve had the auditor say there is no conflict as well for the minister, or the allegations around fraud are at least not founded in this particular report.
Well now is the chance for him to practise what he was preaching, to consider good will and the ... Well he’s not. And the fact that all members have honour, especially when they’ve clearly said there was no wrongdoing, and it’s been supported by independent officers of this Assembly.
The Speaker: —I recognize the Leader of the Opposition.
Mr. Wotherspoon: —The Premier can try to threaten me and try to threaten us all he wants . . .
[Interjections]
The Speaker: —Order. The Assembly come to order. I recognize the Leader of the Opposition.
Mr. Wotherspoon: —The Premier can point fingers from his chair and make whatever threats he wants. But we’re here to do our work and to put him on notice, because the people of Saskatchewan deserve much better answers than they’ve received right here. And I think it should be noted as well ... and of course here he is on hot defence of that minister here today when we actually see in this report that there’s massive holes and dollars that are wasted and questions that haven’t been answered…
Hon. Mr. Wall: — …What happened earlier was not a threat. It was just simply this: the member has engaged in some drive-by smears. Prior to this day and again on this day he has made some very serious allegations in his questions. There’s no threat in simply saying to him, if he has the courage of his convictions to say it outside the House where he does not have the immunity and the protection of the House, he should do that, Mr. Speaker.
….
Mr. Wotherspoon: —If the Premier and his government are wasting dollars on spending way more than they should on land, those are dollars that are wasted that are Saskatchewan people’s hard-earned tax dollars. Ludicrous to suggest otherwise. Makes light of a serious situation that’s wasted dollars, and has more unanswered questions at this point than before.
What we have here is a scandal-plagued minister. We have waste on project after project after project from smart meters, from carbon captures, information that hasn’t been shared with Saskatchewan people. And this deal, this deal smells to no end in wasted millions.
But this is no longer, this is no longer about just that minister. This is about this Premier and this cabinet and the culture that they’re presiding over, the waste that they’re accepting, that they’re presiding over. Why has this minister not been canned a long time ago? What’s really going on here?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: —Mr. Speaker, a couple of comments I guess. This has been debated, this issue has been debated, and the other issues that the member refers to were subject to debate and very well known to the public prior to the election and very well known to the people of Kindersley constituency, that returned the member with 70 per cent of the vote, I would point out to the members of the House. And the Finance critic wants to chirp from her seat, Mr. Speaker, and again mischaracterizing the nature of my remarks.
…
Mr. Wotherspoon: —You know, rather stunning here today. A Premier who pretended to enter into question period being contrite about a scathing report that displays waste of millions of dollars, of the hard-earned dollars of Saskatchewan taxpayers. A report that highlights that through the election that he speaks of, the fact that he hid behind a supposed appraisal that was now never actually reviewed by him and his government — and if he had, the auditor cites that, well it would’ve put government in a much better position — and continues to defend a scandal-plagued minister that’s wasted millions of dollars. Quite the culture of a government he’s leading.
I guess my question to the Premier is, how can the Premier of Saskatchewan cut meaningful programs, break his funding promise to classrooms, while defending and hiding the facts from Saskatchewan people about this deal that’s wasted millions of their dollars?
The Speaker: —I recognize the Premier.
Hon. Mr. Wall: —First of all, Mr. Speaker, with respect to tone, and with respect to accountability to taxpayers, I do take that very seriously and members on this side of the House take it very seriously.
…
But I’ll also make this comment with respect to tone. If a member of this House, if the Leader of the Opposition of this House is going to continue to engage in drive-by smears, is going to continue to allege criminal wrongdoing, notwithstanding the fact that the minister has said there were no ties to any of the people involved, notwithstanding the fact that the Conflict of Interest Commissioner said there’s not a conflict of interest, notwithstanding the fact that the Provincial Auditor today has said the same thing, there are no findings of such, and if that member’s just going to continue on throwing mud and smearing hon. members of this House at the same time that he asks for us to treat with respect his colleagues when there’s for example a breach of privilege, if he’s going to continue to do that, the tone might change.
With respect to the issues he raised in his summation about school funding and the rest of it in the budget, I would point this out again to the member. We campaigned on a platform. We’re going to keep the promises in the platform. And then we brought down a budget, subsequent to which there has been a province-wide poll. And in that poll, the support for the Saskatchewan Party, with all of this known, has actually increased.
Mr. Speaker, we’re going to continue to earn that support. We will take nothing for granted. We will work hard to earn the support of Saskatchewan people, to deliver effective government, transparent government, a government that recognizes when mistakes are made, and a government that will continue to have a vision for growth, for leadership for this province, Mr. Speaker. That’s the kind of approach I think that did help earn support on the 4th of April, and that’s what people can expect going forward.
[Interjections]
The Speaker: —Order.
The other highlight of the final day of the sitting was the arrival of Lieutenant-Governor Vaughn Solomon Schofield in the legislature to give Royal Assent to several pieces of legislation that have been passed. They are as follows:
Bill No. 18 - The Credit Union Central of Saskatchewan Act, 2016
Bill No. 27 - The Vital Statistics Amendment Act, 2016/Loi modificative de 2016 sur les services de l’état civil
Bill No. 3 - The Teachers Superannuation and Disability Benefits Amendment Act, 2016
Bill No. 25 - The Wakamow Valley Authority Amendment Act, 2016
Bill No. 21 - The Growth and Financial Security Repeal Act, 2016
Bill No. 22 - The Income Tax Amendment Act, 2016
Bill No. 23 - The Liquor Retail Modernization Act/Loi de modernisation du commerce des boissons alcoolisées
Bill No. 24 - The Liquor Retail Modernization Consequential Amendments Act, 2016
Bill No. 38 - The Appropriation Act, 2016 (No. 1).
The Legislature now stands in recess until Wednesday, Oct. 19 at 1:30 p.m.
