Red ink hidden

I've already highlighted Bruce Johnstone's commentary on the Sask Party's mismanagement of Saskatchewan's Crown corporations. But let's also note the background story - with particular emphasis on the contrast between the NDP's history of responsible management and the mountain of debt that the Wall government is merrily racking up in the Crown sector:

Schwartz said when he was CFO and vice-president of finance and administration for CIC in 1990s and early 2000s, the government's policy on Crown dividends was based on commercial practice. "The policy (the previous government) had had a commercial basis and there was predictability and the policy was stable," Schwartz said. "It did take into account, until this year, the internal requirements of the Crown corporation for reinvestment and any debt reduction it had to do."

Schwartz, who holds a masters degree in economics and chartered financial analyst designation, said the new policy seems to be anything goes. "If you take 100 per cent of the profits, you're going to have to find the money for reinvestment or debt reduction somewhere else. And, since there's no money for debt reduction, I guess their debt's going to going up."

In fact, CIC's debt is nearly doubling -- to $5.9 billion by fiscal 2013-14 from $3.1 billion at the end of March 2010. At the same time, government debt (versus Crown debt) is forecast to remain flat at $4.1 billion. "If you're going to keep (government debt) at the same dollar figure, it seems like some of the debt is being loaded into the Crowns."

Schwartz said the Wall government's policy seems to be pile up the debt on the Crown side and keep the taxpayer-supported debt relatively low. The problem is that someone has to pay the debt.