Saskatchewan

NDP says Sask. Party must be transparent about lobbying campaign in Viterra purchase

Saskatchewan's Official Opposition says the provincial government must be transparent about lobbying efforts around the acquisition of the grain-handling business Viterra by U.S.-based Bunge Ltd. 

$8.2B acquisition of Viterra by U.S.-based Bunge Ltd. was cleared by federal government this week

A woman in a green shirt and a grey blazer stands at a podium.
Aleana Young, the Saskatchewan NDP critic for economy and jobs, is calling for the provincial government to be transparent around the lobbying that led to the $8.2-billion acquisition of Viterra by U.S.-based Bunge. (Kirk Fraser/CBC)

Saskatchewan's Official Opposition says the provincial government must be transparent about lobbying efforts around the acquisition of the grain-handling business Viterra by U.S.-based Bunge Ltd. 

Agricultural producers in the province have criticized the $8.2-billion deal, which was approved by the Canadian government this week, saying it raises concern over industry competitiveness and sustainability. 

Those calls were echoed on Thursday in Saskatchewan by NDP jobs and economy critic Aleana Young, who says the Saskatchewan Party government should've opposed the deal to acquire Viterra, which was formerly the Saskatchewan Wheat Pool and has its Canadian headquarters in Regina.

"They've sold out Saskatchewan, and they've sold out Saskatchewan producers to an American company and frankly, everyone is left wondering why," Young said.

She accused the government of listening to Monte Solberg, a former member of Parliament who now heads a public affairs firm, rather than Saskatchewan's agricultural sector. 

Young says Solberg, as CEO of New West Public Affairs, waged a lobbying campaign on behalf of Bunge, starting in June 2023 and continuing through 2024. 

The province's lobbyist registry shows that last year, Solberg registered his plans to lobby Premier Scott Moe, then finance minister Donna Harpauer, then trade and export development minister Jeremy Harrison and then agriculture minister David Marit. 

File - Steam rises from the Viterra corporate office in Regina, Sask.
Agricultural producers in Saskatchewan have criticized the acquisition deal. (Alexander Quon/CBC)

In the registry, Solberg's efforts are described as providing information on how the "merger transaction with Viterra will strengthen the global supply chain and bring increased market access for producers." 

Young said the lobbying efforts — and the province's decision to welcome the deal — should be a concern for everyone.

"I'm used to this province getting hosed by the Sask. Party and the federal government, but rarely at the same time on the same issue," she said. 

Young raised concerns about Solberg lobbying the province, since the former Conservative MP for Medicine Hat in Alberta has previously contributed to the Saskatchewan Party. 

According to Election Saskatchewan's contribution tool, he donated $2,000 in 2020 and the same amount in 2021 to the party, and contributed a further $2,500 in 2022, for a total of $6,500.

In a statement, the Saskatchewan government denied there was anything wrong with the lobbying, saying it is regularly lobbied by individuals and organizations from multiple industries. 

It also noted the details are published in the lobbyist registry and available to the public, which the province pointed to as a sign of its process working. 

While the federal government approved the deal this week, the Federal Competition Bureau said in a report last April to then transport minister Pablo Rodriguez that the deal was likely to hurt competition in the grain and canola oil markets.

It also found that Bunge, the world's largest oilseed processing company, could influence the behaviour of G3 Global Holdings, a major competitor to Viterra.

Transport Canada said strict and legally binding controls are needed on U.S.-based Bunge's minority ownership stake in G3 to ensure it can't influence that company's pricing or investment decisions.

Among the conditions are for Viterra's head office to remain in Regina for at least five years, and an investment of at least $520 million in Canada within the next five years.

The provincial government said it welcomes the clarity provided by the government's decision, but it is still evaluating the terms and conditions attached to the sale. 

"Our priority is ensuring Saskatchewan producers continue to be competitive with access to key global markets," the statement read. 

Viterra has more than 80 facilities across the country.

ABOUT THE AUTHOR

Alexander Quon has been a reporter with CBC Saskatchewan since 2021 and is happy to be back working in his hometown of Regina after half a decade in Atlantic Canada. He has previously worked with the CBC News investigative unit in Nova Scotia and Global News in Halifax. Alexander specializes in municipal political coverage and data-reporting. He can be reached at: alexander.quon@cbc.ca.

With files from The Canadian Press