Saskatchewan's New Democrats are in the process of
picking a new provincial leader. To date, Economist Erin Weir has
articulated the most pragmatic, visionary policy for the province's potash
industy, its growth and direction.
Today, The School of
Public Policy at the University of Calgary added their voice to those
who understand that Premier Brad Wall is allowing the economic benefits of a key natural resource to slip away because of an 'incoherent' fiscal regime.
"CALGARY, Feb. 8, 2013 /CNW/ - A report published today by The School of
Public Policy concludes that Saskatchewan's potash fiscal regime is a
mess and is hurting the province's economy. Authors Jack Mintz and
Duanjie Chen analyze the current regime and find it to be a hodgepodge
of tax and royalty rates.
"Under the current royalty and tax regime for potash producers, the
tangled thicket of royalties, taxes and credits can differ between
commencement dates for production, projects of different sizes, or even
projects of similar size but with different profitability; it also has
potash producers generally enjoying a much lighter tax burden on
marginal investments than that borne by the oil and gas industry and
most other non-resource industries," the authors write. "The result is
distortions and inefficiencies, resulting in subpar investment
activity, which can only stand in the way of Saskatchewan reaching its
full economic potential."
Mintz and Chen argue that revamping the potash fiscal regime should be
done with a focus on "simplicity" and "efficiency."
-Globe & Mail has more ...