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NEW SGI SALVAGE FACILITY IN YORKTON TO PROCEED

Released on April 23, 1996

Clay Serby, minister responsible for Saskatchewan Government Insurance
Corporation (SGI), today announced that the corporation will proceed
with plans to develop a new salvage facility in the city of Yorkton.

"We have completed a detailed review of the most cost effective options
to deliver improved service to the customers of Yorkton and area,"
Serby said. "It has been decided that SGI will purchase the existing
Department of Highways building to create a new SGI Salvage Centre."

Serby said that SGI will share the facility with the Department of
Highways after Saskatchewan Property Management Corporation has
completed renovations to the building.

"This is the most cost effective option for the government as
renovating an existing building will only cost about $400,000, compared
to the $1.4 million cost of constructing a new SGI salvage building,"
Serby said.

In 1994, due to a number of safety and operating concerns with the
current building and location, it was recommended that SGI relocate its
salvage operation in Yorkton. SGI tendered construction for a new
facility in July of 1995. After receiving only one bid on the tender,
which was higher than the approved budget, SGI decided to review its
plans. In October of 1995, SGI became aware that suitable space would
be available in the existing Department of Highways building in
Yorkton.

"Renovating the existing Highways building will reduce overall
construction costs and improve service to customers, while the
construction activity will create economic spin-offs for the Yorkton
economy."

Serby said renovations will begin soon so that SGI can relocate its
salvage operation in Yorkton by early 1997.

"This is another demonstration of the government's commitment to make
decisions that are fiscally responsible by utilizing an available
facility to meet the needs of SGI and its customers in Yorkton," Serby
said.

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For more information, contact:

Darcy McKenzie
SGI
Regina
Phone: (306) 751-1347

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