Regarding Colin Mayes’ Growing LNG sector wise on May 8:
Gosh, maybe Colin is right!
We can give these LNG corporations a tax break (“it’s not a tax break”) until after they are profitable, and then keep their taxes low so that they can send most of their earnings offshore, along with our raw materials, leaving nothing behind except broken promises and costly government paid infrastructure to service their sites and very few long-term jobs.
That did not work for Jim Prentice, as the people of Alberta decided last week.
The price of natural gas and oil is so low that every year they lost billions of dollars in projected tax revenue.
New austerity measures came to be an Alberta election issue, as did the business tax rates.
Mayes: “It will provide billions of dollars in taxes to all three levels of government.” Strange, that’s what Jim said, but he was not able to see the vulnerability of his reliance on “rip-and-ship” policies. This “tax windfall” will not happen unless you have the courage to implement a realistic resource tax regime like Norway has done. Resources belong to Canadians, not politicians.
Money that should have gone to health care, schools, rapid transit, and renewable resources either did not materialize or went offshore.
Canada shed a surprising 45,900 jobs last December, and employment fell by 29,000 in British Columbia in April 2015.
We need some sound long-term commitments to creating primary and secondary industry and jobs in Canada, not subsidizing offshore moguls and following gossamer ideas that offer short-term gratification and deliver long-term pain. Corporations will invest when they see a good opportunity, but that does not require a rapacious exploitation of Canadians’ resources and environment.