Saskatchewan is changing the way welfare recipients buy hotels – Winnipeg Free Press

REGINA – The Saskatchewan government says it will change the way welfare recipients purchase hotels after a legislature-owned motel raised rates while the province paid for it.

The Saskatchewan Party government said in a letter released Friday that it will now take prices from three hotels and direct people to the cheapest hotel based on their safety, needs and circumstances.

The province is also planning a one-year pilot project for government purchases of five-bedroom units in Regina and Saskatoon at an approved price, which will allow the government to assess whether the approach is effective, he said.

“I think there's probably a perception based on one case we heard in the Legislature that we didn't get the best price,” Social Services Secretary Gene Makowski told reporters Friday.

“We want to be as open as possible going forward and make sure people are taken care of.”

Last year, a woman who checked in at the Sunrise Motel, owned by Saskatchewan opposition NDP Saskatchewan backer Gary Grewal, raised questions about the nightly rate hike when the province paid its bill.

Motel receipts provided by NDP show the client paid $132 per night when she originally checked in, plus a $200 damage deposit.

However, when the Department of Social Services decided to pay the bill, receipts showed the government had paid $168 for one night, and $200 for one night a few days later.

Grewal told the conflict of interest commissioner that he owns the motel but does not manage its day-to-day operations.

Makowksi said he thought the province could tighten its policies after the Grewal hotel case was opened.

“We can always do better,” Makowksi said.

A letter to the NDP says the province spent more than $220,000 in the 2022-23 fiscal year to stay at the Sunrise Motel at an average of $151 a night. It was the most used location for recipients in Regina.

Also in Regina, the government paid Coachman Inn Motel an average of $128 per night last year, while Thriftlodge by Wyndham received $163,000 for an average of $186 per night.

The province spent $2.1 million on hotels across the province last year.

According to Makovsky, social workers select hotels based on their availability and willingness to accept social services.

He said some chose not to accept certain customers because they had previously vandalized rooms or disturbed other patrons.

The rates paid by the province appear to be higher than what can be seen online as not all rates are displayed on websites, the minister added.

“Getting those quotes (helps) caseworkers and the ministry understand what's available. We hope to be able to use the lowest price supplier possible,” Makovsky said.

He said the province usually operates three hotels for welfare recipients. He hopes the pilot project will give the province more choice.

Mira Conway, the NDP's social services critic, says the province's changes show it's trying to do damage control.

Questions still remain as to why the government has paid more money to Grewal Hotel over the years, he said.

The province's letter says it paid Sunrise Motel $282 in 2018-19. This has increased steadily over five years to $220,000 in 2022-2023.

Grewal was elected in 2020, Conway noted.

“This will further fuel fears around the suggestion that government MPs are benefiting from government membership and possibly a failed housing policy,” he said.

Conway said the province misled the public about its hotel policy. According to him, Makovsky had previously told reporters that the hotel's occupancy was on a downward trend, but it actually increased.

“What are the circumstances that make it necessary to rely heavily on hotels?” he asked.

“These are reactive solutions to the growing homelessness, poverty, mental health and addiction crisis.

“I want to see how the minister deals with vacant (housing) units and the (Saskatchewan Income Support) program has failed.”

Conway also wondered why the government would only cover the costs until September and not later. There is also no explanation as to why the province is not paying damage deposits, he said.

The NDP has received responses to freedom of information requests on the matter, Conway said, and her party is reviewing them.

This report by The Canadian Press was first published on February 9, 2024.