Sask. gov't disputes Opposition's claims of local procurement misrepresentation

Saskatchewan's Opposition NDP claims the province has been misrepresenting its procurement practices by categorizing out-of-province businesses as Saskatchewan-based.

In response, the Sask. Party government said it's following Canadian Free Trade Agreement criteria.

In an April government news release, the province said 90 per cent of recent procurement was awarded to Saskatchewan companies.

On Tuesday, the NDP released documents obtained through a Freedom of Information (FOI) request that the party says tell a different story.

In a news release, the NDP said SaskBuilds reported awarding 666 contracts in the 2024–25 fiscal year. The FOI shows the number of businesses classified as "Saskatchewan-based" was "significantly inflated," the NDP said.

The Opposition said 51 per cent of contracts went to companies headquartered in Saskatchewan, and only 58 per cent of total contract dollars went to those Saskatchewan-based firms. 

Meanwhile, the NDP said businesses labelled as "Saskatchewan-based" by the province include Crumb Rubber Manufacturing (CRM), based in Newport Beach, Calif., and Mitsubishi of Canada, headquartered in Ontario. 

"Anybody on the street will tell you that you can't just call any company a local business just because they've got a P.O. box here. That's not how it works," NDP jobs and economy critic Aleana Youngsaid at a news conference Tuesday morning.

"Not only is this dishonest and a betrayal of Saskatchewan workers and businesses, it's also part of a disturbing pattern of behaviour with this government. Say one thing, do another." 

Young said tariffs from the U.S. and China make it more important than ever to "stand up" for provincial workers and businesses.

"Earlier this month, the Sask. Party quietly walked back their supposed Sask. First procurement policy — a move that, combined with today's revelations, confirms that they were never committed to supporting local businesses," she said. 

Province says it's following federal guidelines

In an emailed statement to the media early Tuesday afternoon, the Saskatchewan government called the NDP's news release an "irresponsible attack on Saskatchewan workers."

"Under the NDP definition, they wouldn't consider companies like Evraz to be Saskatchewan companies. They say they support Saskatchewan steel workers, but don't think they should be allowed to bid on Saskatchewan work," the province said in the statement.

The NDP shot out a second news release on the matter shortly after the province responded.

"We know that Evraz Regina makes some of the best steel in the world, and we have called on the government for years to use Saskatchewan steel in every possible project," Young said in the release.

The province said its government procurement policy uses the definition for a Saskatchewan-based company laid out in the Canadian Free Trade Agreement, meaning the definition comes from the Government of Canada itself.

It said businesses meeting the following criteria are considered Saskatchewan-based:

• Have a place of business in Saskatchewan where regular business activities are conducted on a permanent basis, is clearly identified by name and is accessible during normal business hours.

• Employ Saskatchewan residents or sole proprietorship owned by a Saskatchewan resident.

• Be a registered business in Saskatchewan with an Information Services Corporation profile or equivalent.

According to the Sask. Party's news release, SaskBuilds and Procurement awarded approximately $689.5 million in procurements this fiscal year.

It said that approximately 90 per cent of that value, or $617.6 million, was awarded to Saskatchewan-based companies, approximately 10 per cent of that value was awarded to businesses from other provinces in Canada, and approximately 0.1 per cent of the procurement value was awarded to companies from the United States.

"The NDP position on procurement would exclude many Saskatchewan companies from bidding on Saskatchewan work. These companies employ thousands of Saskatchewan employees that build our province, pay taxes and invest in local communities."