This really will blow your mind.
PotashCorp earned $1.8 billion in 2011.
they paid 0.05% for the privilege.
Yes this actually happened and continues every year.
This is not free market economics, what does the SaskParty actually stand for.. because this is Corporate Socialism at its worst.
The Saskatchewan people, who collectively own those resources, recovered a total of $76.5 million in royalties . That is not even one percent, how is that a strong economy? It is total economic incompetence (or worse). We could fund transit, we could reduce tuition or even offer it free..( the province collects less than 200 million from tuition). We could build housing with our incredible wealth instead of giving it away to shareholders of potash companies that do not even live here. Global demand for potash looks good for the future. An incentive that was put in place to grow capacity is now a giant sinkhole for Saskatchewan Potash Wealth. It is long past time for a review of our potash royalty structure.
The right royalty structure is complicated. But the fact that PotashCorp earned $1.8 billion last year and only paid back $76.5 million in royalties to Saskatchewan people suggest we might not have it quite right yet.
(Leader-Post, Feb 12/11).
According to Dr. Jack Mintz from the School of Public Policy at the University of Calgary, Saskatchewan’s current system is “just wrong” and “it has actually reached the point of incoherence and absurdity, or a mess. ”
Dr. Colin Boyd, a professor at the Edwards School of Business at the University of Saskatchewan has questioned whether our current royalty structure is ensuring that we are “fairly sharing” in the profits which potash companies are making here.
Dr. Sylvain Charlebois, associate dean in the School of Management and Economics at the University of Guelph and a former professor at the University of Regina, says a review of our province’s royalty structure is “dearly needed” (The StarPhoenix, Feb 17/11).
The Sask Party government has said they will not review the royalty structure. There is a provincial election in spring.
we can make a change.