Sask. NDP claims of ‘inflated’ local procurement misguided, province says

WATCH: The Government of Saskatchewan and the Opposition NDP are at odds over the province’s procurement practices. Wayne Mantyka reports.

The Saskatchewan NDP is alleging that the province has been misrepresenting its procurement practices by classifying out-of-province enterprises as Saskatchewan-based businesses. The government says the Opposition’s assessment is flawed.

The Saskatchewan NDP shared documents obtained through a Freedom of Information request on Tuesday.

The documents showed that SaskBuilds awarded 666 contracts for the 2024-25 fiscal year. Among the companies listed as “local” were Crumb Rubber Manufacturing – based in Newport Beach, Calif. and Mitsubishi of Canada – headquartered in Ontario.

The Opposition claimed that only 51 per cent of contracts went to companies headquartered in Saskatchewan – and only 58 per cent of total contract dollars flowed to Saskatchewan-based firms – which is down from the Saskatchewan Party’s claims of 90 per cent local procurement.

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In a response Tuesday afternoon, the province called the NDP’s allegations “an irresponsible attack on Saskatchewan workers.”

It went further, saying under the Opposition’s definition of local businesses, Evraz wouldn’t be considered a Saskatchewan company and would be excluded from government contracts – despite having a heavy presence in the province.

“They say they support Saskatchewan steel workers, but don’t think they should be allowed to bid on Saskatchewan work,” the government’s response read.

According to the province, businesses are classified as Saskatchewan businesses if they follow certain criteria, including:

• Have a place of business in Saskatchewan. This place of business refers to an establishment 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.

The definition of a Canadian business is dictated from the federal government in the Canadian Free Trade Agreement (CFTA). The criteria includes:

• A Canadian supplier means a supplier that has a place of business in Canada
• A place of business means an establishment where a supplier conducts activities on a permanent basis that is clearly identified by name and accessible during normal business hours.

According to the Investment Canada Act, a business carried on in Canada requires:

• A place of business in Canada
• An individual or individuals in Canada who are employed or self-employed in connection with the business
• Assets in Canada used in carrying on the business

The province maintains that SaskBuilds awarded more than 650 procurements valued at approximately $689.5 million for the 2024-25 fiscal year.

Around 90 per cent of that value ($617.6 million) was awarded to Saskatchewan-based companies – around 10 per cent of that value was awarded to businesses from other provinces in Canada – and around 0.1 per cent of procurement was sourced from companies in the United States.

“The NDP position on procurement would exclude many Saskatchewan companies from bidding on Saskatchewan work,” the government’s response read. “These companies employ thousands of Saskatchewan employees that build our province, pay taxes and invest in local communities.”

The NDP maintained its stance in its comments Tuesday – saying that with tariff threats from both the U.S. and China – the province needs to be more committed to defending local businesses.

“You can’t call a company ‘Saskatchewan-based’ just because they have a local mailing address,” NDP MLA Aleana Young said. “This is a betrayal of the hardworking local businesses that support our communities and create good jobs right here at home.”

The Opposition also highlighted the provincial government’s decision to cease its “Sask. First” procurement policy earlier this month.

“A move that, combined with today’s revelations, confirms that they were never committed to supporting local businesses,” the NDP added.