Re: H.S.T.
Posted: Dec 25th, 2012, 11:45 am
The only thing the Liberals are good at is looking after their backers (families first)
TUESDAY, DECEMBER 25, 2012
Deception and financial fakery for friends
A few days ago, I wrote Cronies, henchmen and the future and noted the loss of revenue government derives from natural resources, even though prices have risen dramatically in the past decade. BC Government revenue from natural resources, according to annual public accounts, were these:
2001 = $3,975,000,000
2012 = $2,699,000,000
I also pointed out that, under HST, resource companies no longer pay provincial sales tax, a savings of hundreds of millions annually. Meanwhile, commodity prices have changed significantly. These changes are taken from the Ministry of Energy, Mines and Natural Gas.
Citzens enjoying a substantial rise in before-tax income across the past decade pay substantially higher taxes; metals and minerals extractors, despite exceptional revenue growth, pay less. By the way, Teck companies and chair Norman Keevil donated $1.14 million to the BC Liberals in recent years. Other resource companies, Goldcorp, for example, donated millions more. The return on political donations have been substantial.
It turns out that British Columbia's current revenues from natural resources are in dispute. Vaughn Palmer writes about the issue,
"[Auditor General John] Doyle's proposed treatment of the credits that government makes available to petroleum producers who drill deeper (and hence more expensive) natural gas wells.
"The credits can be used to reduce royalties paid to government from those same wells. Lately, with output slackening because of the glut of natural gas, the credit-holders have been banking them to claim in future years.
"The auditor general argues that the credits should be booked as a liability, thereby increasing the deficit by a hefty $702 million.
"The comptroller disagrees, arguing that the credits don't represent current cash paid to producers, but rather future reductions in royalty payments to government..."
Most every professional accountant in the province would agree with the Auditor General on this one, although Vaughn Palmer is not persuaded. Clearly, the government has an existing material liability owed to gas producers that will reduce revenues received in the future.
POSTED BY NORM FARRELL AT 2:05 AM
http://northerninsights.blogspot.ca
TUESDAY, DECEMBER 25, 2012
Deception and financial fakery for friends
A few days ago, I wrote Cronies, henchmen and the future and noted the loss of revenue government derives from natural resources, even though prices have risen dramatically in the past decade. BC Government revenue from natural resources, according to annual public accounts, were these:
2001 = $3,975,000,000
2012 = $2,699,000,000
I also pointed out that, under HST, resource companies no longer pay provincial sales tax, a savings of hundreds of millions annually. Meanwhile, commodity prices have changed significantly. These changes are taken from the Ministry of Energy, Mines and Natural Gas.
Citzens enjoying a substantial rise in before-tax income across the past decade pay substantially higher taxes; metals and minerals extractors, despite exceptional revenue growth, pay less. By the way, Teck companies and chair Norman Keevil donated $1.14 million to the BC Liberals in recent years. Other resource companies, Goldcorp, for example, donated millions more. The return on political donations have been substantial.
It turns out that British Columbia's current revenues from natural resources are in dispute. Vaughn Palmer writes about the issue,
"[Auditor General John] Doyle's proposed treatment of the credits that government makes available to petroleum producers who drill deeper (and hence more expensive) natural gas wells.
"The credits can be used to reduce royalties paid to government from those same wells. Lately, with output slackening because of the glut of natural gas, the credit-holders have been banking them to claim in future years.
"The auditor general argues that the credits should be booked as a liability, thereby increasing the deficit by a hefty $702 million.
"The comptroller disagrees, arguing that the credits don't represent current cash paid to producers, but rather future reductions in royalty payments to government..."
Most every professional accountant in the province would agree with the Auditor General on this one, although Vaughn Palmer is not persuaded. Clearly, the government has an existing material liability owed to gas producers that will reduce revenues received in the future.
POSTED BY NORM FARRELL AT 2:05 AM
http://northerninsights.blogspot.ca