SGI’s rate stabilization fund has grown to over $1 billion, causing concern from Saskatchewan’s opposition NDP about the government’s plans for that money.
Opposition MLA Aleana Young has been going through SGI’s books and believes the Crown Corporation is accumulating more cash than it would ever need.
“By legislation, the government has to keep this fund at a break even basis and currently it’s overfunded at 165 per cent,” Young said.
The rate stabilization fund, intended to uncover unforeseen disasters, had $1.15 billion in it as of Sept. 30, 2020. It is funded by excess money from the sale of license plates.
The NDP fears the government may be using the fund to prepare SGI for sale. They suggest the excess money should be used to provide a rebate to customers.
In a statement, Crown Investments Corporation Minister Don Morgan said SGI is currently in a “strong financial position.”
“SGI is nearing the end of its fiscal year and is diligently considering options to provide additional value to the people of Saskatchewan," Morgan said.
“Options to address the auto fund surplus are under active consideration, including a rate reduction or rebalancing, enhanced benefits, rebates, or a combination of these options,” a government spokes person said, in a statement.
In last fall’s provincial election campaign, the NDP suggested drawing down SGI reserves somewhat through a $100 rebate to vehicle owners. The Saskatchewan Party rejected the idea.