Government Ethics. An Oxymoron?

For years most of us have marveled at how business leaders learned that they can can seemingly divest themselves of responsibility when it comes to losses, lawsuits, union contracts, or monies owed to creditors by simply splitting their company into small subsidiaries. That way the small entity is wholy responsible for the problem and the parent company is insulated from any fallout which may occur during tough times. It is a kind of shell game business loves. The average person knows it is a scam but, ya know, we don't write the law.

In the last day or so an interesting story has hit the news in Saskatchewan. Big Sky, a hog producer, has filed for court protection from its creditors. Big Sky apparently owes several thousand dollars to farmers who provided the company with pig feed and it is reported, to other small companies doing work around the plant.

The farmers, quite justifiably are incensed. One guy is owed $47,000 for nine semi trailers full of barley he delivered and Big Sky won't pay up.

Here is the hook. The Saskatchewan Government owns 64% of Big Sky. So the Saskatchewan Government is shirking its responsibility in this matter and is stiffing its own citizans. Good work.

Saskatchewan Agriculture Minister Bob Bjornerud apparently told the media that the government has no obligation what so ever in this matter. Give your head a shake Bob, I think perhaps a course in ethics 101 is in order.

Brad Wall, a true believer in the old, bread and circuses principle, is on the front page of the Leader Post this morning, posing with the Saskatchewan Roughrider flag and a couple of Riders football players in front of the legislature and the Big Sky story doesn't appear until page B7. So, it is working.

Now if the Riders lose the Western Final this Sunday, Brad may have to pay up. If they win, the Farmers might have to wait a while for their money.

Panem Circenses

I am no economist but, there wasn't a surprised bone in my body when we here in Saskatchewan were told earlier this week, that economically, things have turned out to be, not quite as rosy as the government had predicted.

Funny that the economic update was made just days after the Premier was once again bragging about the new covered stadium he and Mister Booster himself, Regina mayor Pat Fiacco want to build. I am told that method of trying to hoodwink the public is so old that it has a Latin name, panem circenses. Basically it is, in this case, when government tries to keep the population's attention diverted away from the real issues (The Government's failed economic policies) and instead get them thinking about how much fun it will be watching football games in a domed, heated stadium, without freezing their asses off.

It was interesting to see how this all unfolded.

The Potash industry was going mad. They were making money hand over fist. So what did they do? Instead of being happy with the huge profits they were making they decided to artificially push up the price of Potash, so they laid off staff and stopped mining.

They were right. That pushed the price up. It pushed it up so high that the third world countries they were selling to couldn't afford it any more.

Then the recession hit. No one could afford potash, so sales plummeted. The potash industry became a victum of their own corporate greed and the Saskatchewan government, that expected to capitalize on that greed through royalties, saw their economic plan slip through their fingers like quicksilver.

So despite all the crass bragging, the strutting around like a randy roosters and the unrestrained boosterism here we are. Saskatchewan is on the cusp of a recession. Those resource based economies will bite you on the bum every time.

So wait for it. Expect more announcements of grand projects but also get ready for the inevitable trimming of back of programs and the cutting back of services.

So, don't expect much bread with the circus.