SGI auto rebates generate budget controversy

SGIs proposed auto insurance rebates for 2007 took centre stage during the provinces discussions about the budget recently.The Saskatchewan NDP government accused the provinces opposition finance critic, Saskatchewan Party MLA Ken Cheveldayoff, of advocating the use of Cdn$100 million in auto insurance rebates from Saskatchewan Government Insurance [SGI] for the purpose of balancing the provincial budget, the Regina Leader-Post reported.According to the Leader-Post, the budget shows SGI’s Saskatchewan Auto Fund, the province’s compulsory auto insurance program, posting a [Cdn]$57-million deficit for this year due to the [Cdn]$100 million in rebates that were announced last month.In his budget press conference, Cheveldayoff criticized the government for a 9% spending increase, and described the SGI auto insurance rebates as an election gimmick. The Leader-Post further noted: In the press conference and in subsequent media interviewsCheveldayoff seemed to suggest the $100 million was a potential savings that could help balance the budget.The paper noted that the governments Auto Fund is meant to be financially self-sustaining, operating on a break-even basis over time. Under provincial law, it does not receive money from the government or pay dividends, the Leader-Post article notes.The article goes on to clarify that Cheveldayoff said he didnt intend to suggest that money from the Auto Fund should go into the government’s general revenue fund. He only intended to point out that the government has plunged the Auto Fund into an unhealthy deficit with the rebates, the article cites Cheveldayoff as saying.