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Squandered: Canada's Potash Legacy
An exposé of the reality of Saskatchewan’s potash industry management―prioritizing private profit over public interest
A single province in Canada―Saskatchewan―is blessed with a remarkable 50% of the world’s potash reserves.
Potassium is a necessary ingredient of the fertilizer required to feed a growing world population. Accordingly, prices and corporate profits have soared to unprecedented levels in recent decades. While other countries such as Saudi Arabia and Norway have taken steps to capture the value of their natural resources for their people, Saskatchewan has failed to leverage the value of its potash and has given much of it up for an inadequate price.
Billions of dollars of forgone revenue has resulted in tax unfairness, program underfunding and malfunction, and a growing and worrying divide between the affluent and the very poor. Analysts from across the political spectrum have identified this revenue problem, as well as a straightforward solution. Unfortunately, the Saskatchewan government has declined to review the situation and instead seems to rely upon the advice of the industry itself. The province now faces the game-changing issue of how to tax appropriately the small number of multinational conglomerates that now own these potash mines. Whether or not the province obtains reasonable value for its potash will determine whether Saskatchewan will be a place of opportunity for all of its citizens or continue on a path of wealth for a few and extreme poverty for many.
A single province in Canada―Saskatchewan―is blessed with a remarkable 50% of the world’s potash reserves.
Potassium is a necessary ingredient of the fertilizer required to feed a growing world population. Accordingly, prices and corporate profits have soared to unprecedented levels in recent decades. While other countries such as Saudi Arabia and Norway have taken steps to capture the value of their natural resources for their people, Saskatchewan has failed to leverage the value of its potash and has given much of it up for an inadequate price.
Billions of dollars of forgone revenue has resulted in tax unfairness, program underfunding and malfunction, and a growing and worrying divide between the affluent and the very poor. Analysts from across the political spectrum have identified this revenue problem, as well as a straightforward solution. Unfortunately, the Saskatchewan government has declined to review the situation and instead seems to rely upon the advice of the industry itself. The province now faces the game-changing issue of how to tax appropriately the small number of multinational conglomerates that now own these potash mines. Whether or not the province obtains reasonable value for its potash will determine whether Saskatchewan will be a place of opportunity for all of its citizens or continue on a path of wealth for a few and extreme poverty for many.
- GenresCanada
170 pages, Paperback
Published March 19, 2024
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Displaying 1 - 6 of 6 reviews
March 20, 2025
Squandered: Canada's Potash Legacy, by Eric Cline, is a book about the transition of Saskatchewan's potash industry over the decades, and its impact on the public sphere. The history of the potash industry is interesting. Potash is a potassium based mineral that is highly valued for its fertilizer capabilities. Canada (Saskatchewan) has one of the largest single potash reserves in the world, only matched by the mines in Belarus and Russia. As such, it is highly valued in the agricultural sectors of the Western world, as the base strategic reserve for most global democracies. The sector in Saskatchewan represents about 20% of the provinces GDP, and has a large impact on the public sector as a result, netting about $1.5 Billion CAD in 2022. Cline, a former minister of finance for the provincial NDP's in the 90's and early 2000's, has a good background on this subject. He charts the original privatization of the industry, followed by a 20 year period where the province became the single largest producer of potash through the establishment of the Potash Corporation of Saskatchewan (PCS). This entity was exceedingly valuable to the province, as a guarantor of jobs, and to prioritize the industry in the province in the face of opposition from global corporations and the federal government.
PCS had issues competing with other corporations due to their stranglehold on the industry advertisement entity, which gave equal share of global advertisement to each company, regardless of market share. As the largest producer, this hampered PCS's ability to advertise overseas, and constrained growth for the public entity. Hostility also existed. The Conservative Party in that province did not appreciate public ownership over this corporation, and worked to undermine its ability to operate, in order to privatize it. This was ultimately achieved during a slump in potash prices. PCS was originally intended to be purchased by BHP, a large mining corporation, for a huge sum. The deal was blocked by the Harper government in Ottawa at the behest of the provincial conservatives, to avoid a "steal" of the company by a foreign entity. Ironic, then, that it would later be sold off to a different firm, for less money, and less guarantees of headquartering in its home province (owned now by Nutrien, based in Alberta).
Cline looks at the impact this has had. Although privatization has seen profits grow, and as a result, greater windfall for public coffers through taxes, this seems to be largely related to the growing demand and extraction of potash. Percentages of public profits as a function of total profits has declined significantly. Cline argues that the privatization of PCS has ensured that a smaller percentage of profits has been captured for the public's benefit. Cline is also disheartened that the headquarters and large numbers of executives live outside of province, meaning many of the wraparound administrative services of PCS may be functioning to the benefits of other jurisdictions.
This was an interesting look at the modern potash industry, the finances of the operations, and the history of public control/private control of PCS in Saskatchewan. The strategic importance of this industry to the provinces coffers is difficult to overstate, as it represents such a large fraction of total revenues. The loss of revenues due to privatization of PCS has certainly had a net negative impact on potential profits for the province, meaning that revenues would need to fall back to collecting taxes, thus increasing the necessary tax rate. It has also negatively impact potential for increased jobs, and has placed the ability to tool mines, and increase market share, out of public control, and into the hands of private corporations. An interesting perspective on this industry.
PCS had issues competing with other corporations due to their stranglehold on the industry advertisement entity, which gave equal share of global advertisement to each company, regardless of market share. As the largest producer, this hampered PCS's ability to advertise overseas, and constrained growth for the public entity. Hostility also existed. The Conservative Party in that province did not appreciate public ownership over this corporation, and worked to undermine its ability to operate, in order to privatize it. This was ultimately achieved during a slump in potash prices. PCS was originally intended to be purchased by BHP, a large mining corporation, for a huge sum. The deal was blocked by the Harper government in Ottawa at the behest of the provincial conservatives, to avoid a "steal" of the company by a foreign entity. Ironic, then, that it would later be sold off to a different firm, for less money, and less guarantees of headquartering in its home province (owned now by Nutrien, based in Alberta).
Cline looks at the impact this has had. Although privatization has seen profits grow, and as a result, greater windfall for public coffers through taxes, this seems to be largely related to the growing demand and extraction of potash. Percentages of public profits as a function of total profits has declined significantly. Cline argues that the privatization of PCS has ensured that a smaller percentage of profits has been captured for the public's benefit. Cline is also disheartened that the headquarters and large numbers of executives live outside of province, meaning many of the wraparound administrative services of PCS may be functioning to the benefits of other jurisdictions.
This was an interesting look at the modern potash industry, the finances of the operations, and the history of public control/private control of PCS in Saskatchewan. The strategic importance of this industry to the provinces coffers is difficult to overstate, as it represents such a large fraction of total revenues. The loss of revenues due to privatization of PCS has certainly had a net negative impact on potential profits for the province, meaning that revenues would need to fall back to collecting taxes, thus increasing the necessary tax rate. It has also negatively impact potential for increased jobs, and has placed the ability to tool mines, and increase market share, out of public control, and into the hands of private corporations. An interesting perspective on this industry.
June 24, 2024
Fascinating! Recommended reading if you're interested in politics and/or the natural resource industry in Saskatchewan.
January 12, 2026
I won this book in a giveaway from The Hill Times. It is a quick and interesting read. I learned a lot, and I think this understanding, as well as the terms I picked up, will be useful in my career as a parliamentary interpreter.
I think it is well written in the sense that it is easy to read and understand, but is also really quite thorough and utterly convincing. I have never even been to Saskatchewan, but I do wonder why its provincial premiers have been letting all this money pass them by. So frustrating!
A few quotes:
While the people of Saskatchewan feel the impact of these decisions most directly, Canadians generally should also be concerned, given implications that arise as to whether Canadians are sufficiently involved in the stewardship of the country's national resources. (p.5)
Those running publicly traded companies will advance the interests of the companies they work for to maximize shareholder value. That is their job. They will push the envelope forward and try to get lower taxes and better incentives from government. It is the government's job to push the envelope back where necessary in the public interest. (p. 69)
Mintz also proposed a minimum tax so the province always had some stable revenue during downturns, which would be creditable against future profit tax. (p. 103)
The authors state ''an efficient tax structure is marked by neutrality,'' declaring that the tax system should result in similar level of tax between industries, and thereby avoid distorting investment and production decisions. They point out that the burden of provincial taxes in Saskatchewan for potash companies, by far the most profitable companies in the province, even at its highest level, is below the midpoint among other resource industries (such as metallic mining, and oil and gas) and non-resource industries. (p. 108)
It is not an exaggeration to say that the outcome of the issue will determine what kind of province Saskatchewan will be: a land characterized by progress and equal opportunity, or an economically stratified community containing large pockets of prosperity and large pockets of despair. (p. 133)
Eric Cline writes that with the money collected from potash companies, who are getting rich off a resource owned by the people of Saskatchewan, poverty could be eradicated in the province and more money could be spent on health and education, among other things. To find out how to do this, he says the province, which owns fifty percent of the world's potash deposits, need only look to Norway, which owns only one half of a percent of the world's oil deposits.
Both Saudia Arabia and Norway decided decades ago to assume all (in the case of Saudi Arabia) and most (in the case of Norway) of the ownership and operation of oil extraction. They wanted to get the profit made from extraction of their resource into public accounts, in addition to payment of royalties and taxes. (p. 6)
[In Norway, it] is a stated goal that ''exploration, development and production must result in maximum value for society, and that revenues must accrue to the Norwegian state and thus benefit society as a whole.''
The people of Norway, and their governments, whether social democratic or conservative, opted to take 70 percent of Norwegian oil production into public hands. [...] Norway protects its citizens who rely on government programs and services and protects the government from the ups and downs of the commodity market through its sovereign wealth fund valued today at more the US$700 billion. [...] If Norway can do that with 0.5 percent of world oil reserves, it does not seem unreasonable to wonder what Saskatchewan might accomplish with 50 percent of the world's potash reserves. (p. 6)
I think it is well written in the sense that it is easy to read and understand, but is also really quite thorough and utterly convincing. I have never even been to Saskatchewan, but I do wonder why its provincial premiers have been letting all this money pass them by. So frustrating!
A few quotes:
While the people of Saskatchewan feel the impact of these decisions most directly, Canadians generally should also be concerned, given implications that arise as to whether Canadians are sufficiently involved in the stewardship of the country's national resources. (p.5)
Those running publicly traded companies will advance the interests of the companies they work for to maximize shareholder value. That is their job. They will push the envelope forward and try to get lower taxes and better incentives from government. It is the government's job to push the envelope back where necessary in the public interest. (p. 69)
Mintz also proposed a minimum tax so the province always had some stable revenue during downturns, which would be creditable against future profit tax. (p. 103)
The authors state ''an efficient tax structure is marked by neutrality,'' declaring that the tax system should result in similar level of tax between industries, and thereby avoid distorting investment and production decisions. They point out that the burden of provincial taxes in Saskatchewan for potash companies, by far the most profitable companies in the province, even at its highest level, is below the midpoint among other resource industries (such as metallic mining, and oil and gas) and non-resource industries. (p. 108)
It is not an exaggeration to say that the outcome of the issue will determine what kind of province Saskatchewan will be: a land characterized by progress and equal opportunity, or an economically stratified community containing large pockets of prosperity and large pockets of despair. (p. 133)
Eric Cline writes that with the money collected from potash companies, who are getting rich off a resource owned by the people of Saskatchewan, poverty could be eradicated in the province and more money could be spent on health and education, among other things. To find out how to do this, he says the province, which owns fifty percent of the world's potash deposits, need only look to Norway, which owns only one half of a percent of the world's oil deposits.
Both Saudia Arabia and Norway decided decades ago to assume all (in the case of Saudi Arabia) and most (in the case of Norway) of the ownership and operation of oil extraction. They wanted to get the profit made from extraction of their resource into public accounts, in addition to payment of royalties and taxes. (p. 6)
[In Norway, it] is a stated goal that ''exploration, development and production must result in maximum value for society, and that revenues must accrue to the Norwegian state and thus benefit society as a whole.''
The people of Norway, and their governments, whether social democratic or conservative, opted to take 70 percent of Norwegian oil production into public hands. [...] Norway protects its citizens who rely on government programs and services and protects the government from the ups and downs of the commodity market through its sovereign wealth fund valued today at more the US$700 billion. [...] If Norway can do that with 0.5 percent of world oil reserves, it does not seem unreasonable to wonder what Saskatchewan might accomplish with 50 percent of the world's potash reserves. (p. 6)
July 5, 2024
Squandered: Canada's Potash Legacy is another thoroughly researched and super interesting read by University of Regina Press. As a bonus, as a Saskatchewanian I always welcome a book that is so geared to our province. That said, it makes sense as fifty percent of the free world’s potash reserves are in Saskatchewan.
I learned so much reading Squandered. Granted, I didn’t know a lot about Canada’s potash industry before I cracked the book open. But I was floored to read about mining companies replacing their petroleum businesses with potash drilling as they made more money than they ever could with oil and gas. Also, Canada is the world’s largest producer and exporter of potash. And potash is the second most important value of production mineral in our country, second only to gold. As for Saskatchewan, potash is our largest export and our potash is the richest in the world.
By the end of the book, I’ll admit I was furious. It's too lengthy to fully clarify in a review - which is why I highly recommend you read the Squandered! - but the Saskatchewan government did not manage this valuable resource in the most effective way. (Some might call that a gross understatement.) A select few have grown rich thanks to how our potash reserves were managed while the rest of the people linger in poverty. It's a travesty that did not have to happen. But I am hopeful - some might say delusional - that the future of potash in Saskatchewan may take a turn for the better.
Eric Cline authored this book solo, a massive undertaking. That said, it would be hard to find someone more qualified than Cline. He is a lawyer who served sixteen years in the Saskatchewan legislature before working as a corporate executive in the mining sector, six of those years spent as vice-president of K+S Potash Canada. After that, he went on to establish an arbitration practice. Cline clearly knows the potash industry from top to bottom and was the perfect choice to author Squandered.
Every University of Regina Press book that I’ve come across - and that list is long - has been researched more thoroughly than most PhD papers. Squandered is no exception. The book includes a six page bibliography, nine pages of notes detailing source information, and two charts detailing potash production and sales. The time and dedication that went into this book is obvious, leading to the reader’s confidence that Squandered is spot on.
If you have an interest in the history of Saskatchewan and our national resources, pick up a copy of Squandered: Canada's Potash Legacy. It will likely be one of the most enlightening books you will ever read.
THIS BOOK IS AVAILABLE AT YOUR LOCAL BOOKSTORE OR FROM WWW.SKBOOKS.COM
I learned so much reading Squandered. Granted, I didn’t know a lot about Canada’s potash industry before I cracked the book open. But I was floored to read about mining companies replacing their petroleum businesses with potash drilling as they made more money than they ever could with oil and gas. Also, Canada is the world’s largest producer and exporter of potash. And potash is the second most important value of production mineral in our country, second only to gold. As for Saskatchewan, potash is our largest export and our potash is the richest in the world.
By the end of the book, I’ll admit I was furious. It's too lengthy to fully clarify in a review - which is why I highly recommend you read the Squandered! - but the Saskatchewan government did not manage this valuable resource in the most effective way. (Some might call that a gross understatement.) A select few have grown rich thanks to how our potash reserves were managed while the rest of the people linger in poverty. It's a travesty that did not have to happen. But I am hopeful - some might say delusional - that the future of potash in Saskatchewan may take a turn for the better.
Eric Cline authored this book solo, a massive undertaking. That said, it would be hard to find someone more qualified than Cline. He is a lawyer who served sixteen years in the Saskatchewan legislature before working as a corporate executive in the mining sector, six of those years spent as vice-president of K+S Potash Canada. After that, he went on to establish an arbitration practice. Cline clearly knows the potash industry from top to bottom and was the perfect choice to author Squandered.
Every University of Regina Press book that I’ve come across - and that list is long - has been researched more thoroughly than most PhD papers. Squandered is no exception. The book includes a six page bibliography, nine pages of notes detailing source information, and two charts detailing potash production and sales. The time and dedication that went into this book is obvious, leading to the reader’s confidence that Squandered is spot on.
If you have an interest in the history of Saskatchewan and our national resources, pick up a copy of Squandered: Canada's Potash Legacy. It will likely be one of the most enlightening books you will ever read.
THIS BOOK IS AVAILABLE AT YOUR LOCAL BOOKSTORE OR FROM WWW.SKBOOKS.COM
March 10, 2025
Extremely relevant points, solid research, and a very important topic to the people of Saskatchewan. However, this book should have been an essay. It said the same thing over and over and over and over.
December 30, 2025
Every person in Saskatchewan needs to read this!
Displaying 1 - 6 of 6 reviews