Saskatchewan Transportation Company is being “wound down”
The Government of Saskatchewan has announced that it is ending the state subsidies to the Saskatchewan Transportation Company (STC) – which will mean that the bus and parcel delivery company will be wound down. In a notice posted on its website yesterday (22 March), the Government of Saskatchewan said that freight will continue to be accepted for delivery on STC buses until 19 May, and passenger services will cease on 31 May.
Explaining why the Government has ended the subsidies, Crown Investments Minister Joe Hargrave said: “As ridership has declined and costs have increased, STC’s subsidy has reached unsustainable levels. STC’s per passenger subsidy has grown from $25 per passenger 10 years ago to $94 per passenger today.
“Over the next five years, STC is forecasted to require more than $85.0m in subsidies to continue operating. Our government believes that those funds can be put to better use elsewhere in government.”
Yesterday’s official statement also said that: “Competition with private sector delivery companies has been a concern.” The government reasoned that: “Removing STC from the parcel delivery sector opens up the competitive process for the private sector operators.”
A total of 224 staff will be impacted by the closure.
