STC operated with a loss in final year

The last full year of operation for the Saskatchewan Transportation Company (STC) did not look good.

The annual report released Tuesday showed it had a deficit of $34 million by the end of 2016-17.

In that period, STC reported $14.9 million in revenues and operating expenses of $49.1 million.

It required $12.4 million in a government subsidy to break even.

Over the course of the final year, passenger use dropped by 2.4 per cent.

“The difficult decision to wind up the organization was in response to declining ridership, the growing requirement for subsidies, and the belief that the dollars could be better directed to other government priorities,” said Joe Hargrave, Minister Responsible for STC.

The focus now for STC CEO Shawn Grice is to look at severance and the winding down of assets.

“It’s still too early to know exactly what those assets will sell for, but the severance payments, we have to make an estimate on that, because it was a decision made before year-end,” Grice explained.

STC wound down passenger and parcel service in May, but 100 staff members continue to operate the Regina and Saskatoon depots until the Greyhound contract ends in September.

There are a number of buses to be sold along with other property.