Saskatchewan Finance Minister Calls Budget Criticism “Attack on Government” | The Canadian News

Saskatchewan’s finance minister did not mince words in replying to a Wednesday morning. Press release criticizing the way he described crop insurance payments during a financial presentation on Monday.

“It is an attack on our government,” Donna Harpauer told reporters Wednesday afternoon of a statement from the Association of Agricultural Producers of Saskatchewan (APAS) suggesting it blamed farmers for a projected deficit.

“I think it was very insincere for APAS to publish what they did without even telling me why it is described that way, and why we are obliged by the provincial auditor to present our budget that way.”

By detailing the Midyear Report 2021-22 Monday morning, Harpauer said that despite significantly higher-than-expected revenue, it was projecting a deficit of about $ 2.1 billion at the end of the year, $ 97 million more than initially projected for the fiscal year.

“If crop insurance spending is restored as well as support to livestock producers, we would be almost balanced,” Harpauer said, explaining that crop insurance payments were about $ 1.8 billion more than expected.

He added that support for Saskatchewan’s livestock industry also dealt an unexpected financial blow to the tune of $ 292.5 million.

Then on Wednesday morning came the APAS press release noting that it is growers who are contributing much of the money raised through crop insurance premiums, which were in significant surplus before the growing season. 2021 (premiums are 40% cost-sharing by participating growers, 36% by the Government of Canada, and 24% by the Government of Saskatchewan).

“In 2020, Saskatchewan Crop Insurance Corporation reported a surplus of $ 2.4 billion accumulated in previous years, plus a considerable surplus in the reinsurance fund,” said APAS Vice President Ian Boxall.

“It is not fair to blame producers for a provincial deficit in a drought year when that surplus runs out.”

Speaking to Global News Wednesday afternoon, Boxall added that he believes Harpauer’s words could lead to a “larger urban and rural divide.”

Trend stories

• 

  Self-declared ‘Queen of Canada’ Detained by RCMP After Alleged Threats to Healthcare Workers

• 

  Omicron Bypass: Canada Extends Travel Ban, Seeks Booster Guide

“People could look at what Minister Harpauer said on Monday and say ‘holy shit!'” Boxall said of Harpauer’s comments on the value of insurance claims.

“Crop insurance is actuarially sound. Between the federal, provincial and producer premiums, the money was within the crop insurance to pay the claims in a year like the one we had this year ”.

He called Harpauer’s words a “misrepresentation” of the way Saskatchewan Crop Insurance Corporation’s reserve fund works.

“I am not here to call the government. The support for Saskatchewan growers has always been there and I thank you for that. Not once did I hint that the money destined for producers through crop insurance was not there, “he said.

“I don’t think I ever hear a grower complain that when there is a surplus in crop insurance, it goes into general income to make up a shortfall or provide the services that the people of Saskatchewan enjoy. The problem we want to raise today is that crop insurance is actuarially sound. “

But on Monday, Harpauer dismissed the idea that he was blaming the producers.

“It’s because of the drought, period. Farmers did not create the drought, ”he said.

In a final letter to APAS President Todd Lewis, Harpauer said the crop insurance funds are “well managed” and also suggested that the APAS statement “creates the perception that the government cannot pay the claims.”

“Going forward, we hope APAS will remember that our government has been steadfast in its commitment to our agricultural producers, and that APAS does not take such support for granted the next time it considers making such a reckless statement,” he wrote in the letter that also it was signed by Agriculture Minister Dave Marit.

He added to reporters that while money can be withdrawn from the crop insurance fund for other purposes, there is a “process” for doing so and that claims payments have not been compromised in the past.

In response to reporters, NDP financial critic Trent Wotherspoon called the letter “threatening,” among other things.

“The letter is unhinged, it is offensive, it is arrogant, it has a right,” he said.

“We are talking about the dollars of the producers that are there to back them.”

He also suggested that surplus money could be better managed.

“They don’t invest in markets that get the fair return that producers deserve and get the lowest possible interest rate. It is beyond what a government would threaten in a letter of support to producers. “

Harpauer said that about $ 1.3 billion remains in surplus.

The province has asked APAS to retract his release.

Boxall told Global News that the organization has no plans to do so.