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Friday, February 08, 2013 

Erin Weir Is The BEST Candidate To Deal With Saskatchewan's 'Incoherent' Potash Fiscal Regime

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 ...

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