SAAQ plans to eliminate its cumulative deficit by end of 2042

The Société de l’assurance automobile du Québec (SAAQ) continues to push back the deadline for eliminating its growing cumulative deficit. It is now targeting 2042, a 17-year delay compared to what it had planned when it began its digital transformation.

This was highlighted Wednesday during the testimony of two Finance Ministry officials before the Gallant Commission, which is investigating the SAAQclic fiasco.

Documents presented show that the cumulative deficit has widened over the past few years, reaching $492.3 million as of Dec. 31, 2024. This amount could reach $824 million in 2029, according to SAAQ forecasts dated Oct. 3.

The government-owned corporation is committed to returning to a balanced budget by Dec. 31, 2028, and believes it can then completely eliminate its accumulated deficit by the end of 2042.

The SAAQ primarily attributes its deteriorating financial situation to the failures of its digital transformation with the deployment of the SAAQclic platform.

Yet, the government-owned corporation maintained to the Ministry of Finance in 2016 that its IT project would contribute to almost completely repaying its accumulated deficit by 2025. It even expected to reap benefits from it.

The “sad spectators”?

This deadline was subsequently pushed back more than once. In 2022, the SAAQ postponed this objective to 2028, mainly due to delays in its technological modernization. Following the launch of SAAQclic, the corporation moved its target to 2034-2035, before deciding, a few months ago, to extend the deadline to 2042.

The Ministry of Finance is informed of these postponements and the financial situation, particularly when renewing agreements with the SAAQ on the collection of funds. In October 2024, the Crown corporation presented the government with measures to rectify the situation.

Before the Gallant Commission, civil servants Martin Guérard and Samir Hareb were questioned about the Ministry of Finance’s comfort with the efforts promised by the SAAQ and the possibility that the SAAQ would once again backtrack on its objective of returning to better fiscal health.

“What we see from the presentations is that they have ideas, they are working on options. As they implement these options, we will be able to see the results,” replied Hareb.

“For us, the important thing is that objectives are set and avenues for it to work on. But we’ll let it do the work,” Guérard also indicated.

Commissioner Denis Gallant said he felt that Finance is “the sad spectator of a growing deficit, growing without any resources other than: we’re notifying you, and perhaps you should develop an action plan.”

Among the measures the SAAQ promised in 2024 to reduce its deficit is a “review of administrative fees.” This could involve an increase in management fees on vehicle registration and driver’s license bills. It also plans to “optimize” its activities, such as increasing the SAAQclic membership rate.

–This report by La Presse Canadienne was translated by CityNews