Fertilizing The Economy - The Potash Issue.

Publisher:  Institute for Saskatchewan Studies, Canada
Year Published:  1977
Pages:  15pp   Resource Type:  Article
Cx Number:  CX383

This newspaper-style tabloid represents a summary and report of a daylong seminar with workshops co-sponsored by: The Saskatchewan People for Control of Resources and the Institute of Saskatchewan Studies

Abstract: 
This newspaper-style tabloid represents a summary and report of a daylong seminar with workshops co-sponsored by the following two groups. The Saskatchewan People for Control of Resources has been formed in order to place before the public an alternative view and a socialist position with respect to resources and resource-based industries in Saskatchewan. The Institute of Saskatchewan Studies has sponsored about 20 seminars since 1971 on issues which are under discussion in the Legislature and about topics which the political parties avoid. This newsletter presents a verbatim speech by John Burton, president of the Potash Corporation of Saskatchewan, which, since 1975, has been designated the body to implement potash policies of the Government. The establishment of the corporation resulted largely from difficulties with public responsibility on the part of the private corporations operating in Saskatchewan. There was a surplus of potash in the late 60's and so the companies asked for prorationing (a form of dividing the market by an agreed-upon scale on the promise that companies would then under-produce until the market stabilised). By the early 70's the companies were clearly doing everything possible to avoid responsible controls. Noranda Mines in particular played some dirty tricks which eventually hurt its own shareholders.
As for the future: there will be a world shortfall until 1979 and then even more shortages after that. Only the U.S.S.R. and Saskatchewan have a real potential for future expanded production in the world. Presently, Saskatchewan accounts for about 24 per cent of world production. When in 1975 the private companies took the government to court to get out of a prorationing scheme they had previously accepted, the government established the Potash Corporation with a mandate to become a basic producer. Its success will depend on the skill of its management. Following further discussions a debate is reported arguing that the potash resources of the province should be controlled by the province of Saskatchewan without compensation to the private corporations. Participating in the debate are several MLA's: Larry Brown of the Federation of Labour and Wes Robbins, Minister of Health. The essential argument in favour weighs heavily on the ownership of resources by the people and points out that the companies are perfectly capable of looking after themselves. The negative arguments point out legal restrictions upon government.
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