Saskatchewan auditor concerned with tracking foreign ownership of farmland

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This article was published 03/12/2024 (368 days ago), so information in it may no longer be current.

REGINA – Saskatchewan’s auditor says the province needs to do a better job tracking and enforcing rules on non-Canadians purchasing farmland.

Tara Clemett made the recommendation Tuesday in her latest report and said ensuring farmland is Canadian-owned helps keep prices low.

“Having foreign entities buying Saskatchewan farmland does increase the risk that we don’t have Saskatchewan and Canadian residents that own that farmland, and it could be making prices higher than they should be,” Clemett said.

Saskatchewan law allows foreign ownership of less than four hectares of farmland, though non-Canadian companies can apply for exemptions should they want more land.

Clemett’s report says there have been cases where the Farmland Security Board, which regulates farmland sales, did not request proof of residency for purchases made by out-of-province corporations.

Clemett said 140 exemptions have been granted over the last five years and many of the larger exemptions were given to European companies.

“The board needs to enhance its processes,” she said.

“I can’t say the extent (of the problem), but I would like to see them definitely enhance their processes so that they would have a better comfort to say, ‘We’re doing all we should to make sure we’re addressing (this).’”

Clemett’s report determined the security board didn’t request proof of residency for nine of 18 purchases made by companies not registered in Saskatchewan.

It also found the board doesn’t have mechanisms to impose fines or penalties for companies that don’t provide such documentation.

It recommends the board request proof of residency, review purchases in a timely manner and have protocols in place to levy fines or penalties.

Agriculture Minister Daryl Harrison told the assembly he welcomes the auditor’s recommendations.

“There is always more room for improvement and the board will continue to focus on process improvement,” he said.

“As indicated in the report, the audit did not find any confirmed instances of unauthorized foreign ownership.”

The report states that since 2020, the board has five times ordered the sale of farmland that was inappropriately purchased by foreign entities.

It adds there may be more cases of farmland purchased by non-Canadians that the board hasn’t addressed.

Clemett’s report also examined other issues, from repairing social housing to fire dispatch.

On social housing in Regina, it says 364 units were in need of repair and an additional 534 were vacant. It says 404 applicants were on a wait list.

The empty units cost the province $1.2 million per year, Clemett said.

“They need to probably repair those housing units or they need to look at repurposing them,” she said.

She added the province could also look at moving renters from two-bedroom units to single-bedroom ones if they no longer need the larger spaces.

Clemett’s report also covered procuring hotel rooms for social services clients.

Earlier this year, the conflict-of-interest commissioner determined former Saskatchewan Party government backbencher Gary Grewal breached rules when his hotels did business with the province.

The Opposition NDP raised the issue last year, when it found one of Grewal’s hotels raised rates for a social services client after the ministry started paying her bill.

Clemett’s report didn’t look at conflict issues, saying the commissioner is responsible for that work. But it says the province didn’t consider best value when procuring appropriate hotel rooms.

“Social services needs to publicly disclose payments made to vendors like hotels on behalf of its clients to increase transparency,” Clemett said.

The province has since changed how it procures hotels. It gets quotes from three hotels and directs social services clients to the most cost-effective one while considering safety and circumstances.

On fire emergencies, the report says for the most part it took more than 90 seconds for such calls to be taken and dispatched. Clemett said good practice is 60 seconds.

This report by The Canadian Press was first published Dec. 3, 2024.