Rhino's Ramblings - Rebate, Rebate, Rebate

By Robert Thomas Opinion/Commentary

If timing means everything in politics then the good news released this past Friday that rebates are coming for SGi vehicle registration customers has to go down on an initial look as the worst timing ever.

Friday, typically the day any government will release the bad news, so that there is no opportunity for the media really to track down the story and by Monday the news cycle is likely to shift. And hopefully for the government people have forgotten about the bad news announced just three days prior.

It left me wondering what type of government is going to announce good news on a Friday?

But this past Friday we got some good news in the way of a rebate coming into the pockets of those of us who had a vehicle plated any time over the past three years. The rebate is being paid out from excess funds in the Auto Fund Rate Stabilization Reserve (RSR).

The RSR rebate was, for those of you paying attention, a political plank put forward by the NDP in the last provincial election. The NDP proposed a $100 rebate plus reduced vehicle registration fees.

In releasing the election plank the NDP argued that the RSR was overly bloated and as such the excess funds should be given back and vehicle registration rates should drop as the RSR no longer required so large of a contribution.

The fund at present sits at approximately $1.15 billion much higher than what industry standards say SGI needs in the RSR to stabilize auto rates.

It could be well argued that the SaskParty simply picked up on the NDP policy and saw the need to give out what is turning out to so far be a highly popular initiative on Moose Jaw’s coffee row.

Perhaps this is the reason why there was a Friday announcement - to stop the NDP from taking credit - I really do not know and like you can only speculate as to the reason for the Friday release.

What I can tell you though is this and that is the rebates have been well received from the people I have spoken to.

The rebate, announced this past Friday, will see an average of $285 per vehicle rebated for all vehicles that were registered or plated during the past three years to Saskatchewan residents. If you registered vehicles during this time period and moved to another province or country it appears you will not be receiving the rebate.

I have had a couple of people say to me the rebates should actually be paid out to all Saskatchewan residents as a means to share the wealth with everyone. Sort of like the rebates the Ralph Klein government in Alberta issued after cost cutting measures erased Alberta’s debt. A rebate Klein said all Albertans deserved for enduring the cuts needed to achieve debt-free status.

Personally I do not think it is something which would go over well for those of us who paid vehicle registration fees over the past three years.

I suppose an analogy could be drawn up of a group of people buying lottery tickets and then once they hit the jackpot a total stranger walks by and says they deserve an equal share. It is not likely something which is going to go over very well with those who chipped in to buy the winning ticket.

Another suggestion I heard - and highly unlikely to get a lot of support from vehicle owners - and that is the provincial government take the surplus from the Rate Stabilization Reserve and transfer it to the General Revenue Fund and then used it to benefit everyone.

Once again I doubt it is something people who have had their vehicles plated over the past three years would be very happy with. And really if there happened to be a rebate should it not go to the person who actually bought the product - in this case automobile plate insurance?

I expect over the next little while we will be hearing some political bantering about this initiative with the SaskParty and the NDP both taking credit and trying to undermine the other side especially as we draw closer to May when the cheques will be issued.

The provincial government will call it a payout based upon investment earnings and a well stewarded RSR while the NDP will say this is just the government repaying monies they overcharged SGI vehicle registration customers. It is going to be a bit of a run coming up as to who takes credit, and for what reasons, for the rebate being issued.

For many people out there it really is not going to make a big difference it is just nice to see that extra money coming back on what many believe to be too expensive of a product to begin with.