Potato lawsuit will cost taxpayers millions

Saskatchewan taxpayers will have to pay close to $9 million to settle a lawsuit from the government's failed potato venture. Nearly $1.8 million of that amount will go towards legal fees.

The province has announced the details of its out-of-court settlement with investors and creditors who were suing the government. They said the government misled them on the details of the potato venture.

The settlement amount is in addition to the $28 million the government lost when the potato deal fell through.

Peter Prebble, the minister responsible, says the settlement is fair and reasonable.

"It has become clear to me as I immersed myself in this file, and assessed earlier court decisions, that our government made mistakes that exposed taxpayers to financial damages," Prebble said Friday at the legislature.

"This settlement was an attempt to minimize damages to taxpayers and bring these legal claims against our government and Sask Water to a close."

The Opposition says the government must hold a public inquiry into the potato deal.

The Saskatchewan Party says there are still too many unanswered questions about a venture that resulted in the loss of such a large amount of money.