Premier Brad Wall's Privatization of Information Services Corp. (ISC) Will Cost Sask Taxpayers MILLIONS $$$
Premier Brad Wall is in the process of privatizing a Saskatchewan Crown Corporation that is responsible for the registration of Land Titles.
Sask NDP Leadership candidate Erin Weir (who just happens to be an internationally renowned economist) has done the math ... and Brad Wall's deal DOES NOT add up for Saskatchewan taxpayers!
The following article appeared in the Swift Current, Sask publication - The SW Booster on Nov 21, 2012:
The Saskatchewan government indicates that it will sell 60 per cent of the Information Services Corporation (ISC) for up to $120 million and invest these proceeds in infrastructure. In doing so, it will lose 60 per cent of ISC’s $17-million annual profit: over $10 million per year.
The provincial government can borrow at a long-term bond rate of three per cent. Financing $120 million of infrastructure investment at that rate would cost below $4 million per year.
Why would the government give up $10 million of revenue to save $4 million of interest costs?
Selling ISC appears to reflect an ideological desire to privatize something rather than sound fiscal management.
-Saskatchewan NDP Leadership Candidate