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  • Charting a path to $15/hour for all BC workers November 22, 2017
    In our submission to the BC Fair Wages Commission, the CCPA-BC highlighted the urgency for British Columbia to adopt a $15 minimum wage by March 2019. Read the submission. BC’s current minimum wage is a poverty-level wage. Low-wage workers need a significant boost to their income and they have been waiting a long time. Over 400,000 […]
    Canadian Centre for Policy Alternatives
  • CCPA-BC joins community, First Nation, environmental groups in call for public inquiry into fracking November 5, 2017
    Today the CCPA's BC Office joined with 16 other community, First Nation and environmental organizations to call for a full public inquiry into fracking in Britsh Columbia. The call on the new BC government is to broaden a promise first made by the NDP during the lead-up to the spring provincial election, and comes on […]
    Canadian Centre for Policy Alternatives
  • Income gap persists for racialized people, recent immigrants, Indigenous people in Canada October 27, 2017
    In the Toronto Star, CCPA-Ontario senior economist Sheila Block digs into the latest Census release to reveal the persistent income gap between racialized people, recent immigrants, Indigenous people, and the rest of Canada.
    Canadian Centre for Policy Alternatives
  • CCPA in Europe for CETA speaking tour October 17, 2017
    On September 21, Canada and the European Union announced that the Comprehensive Economic and Trade Agreement (CETA), a controversial NAFTA-plus free trade deal initiated by the Harper government and signed by Prime Minister Trudeau in 2016, was now provisionally in force. In Europe, however, more than 20 countries have yet to officially ratify the deal, […]
    Canadian Centre for Policy Alternatives
  • Twelve year study of an inner-city neighbourhood October 12, 2017
    What does twelve years of community organizing look like for a North End Winnipeg neighbourhood?  Jessica Leigh survey's those years with the Dufferin community from a community development lens.  Read full report.
    Canadian Centre for Policy Alternatives
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Agrium Halves Potash Royalties

Agrium reports that it paid half as much to the people of Saskatchewan in the second quarter as it had in the same quarter of last year. The company’s quarterly “potash profit and capital tax” payment dropped to $8 million from $15 million a year ago.

Agrium’s only potash mine is in Saskatchewan. The value of its potash sales has barely changed: $246 million in the second quarter compared to $259 million a year ago. As a percentage of sales, “potash profit and capital tax” fell to just 3% from 6%.

Agrium notes “a reduction in potash profit tax in 2012 due to deductions from the taxable base for investment related to our Vanscoy expansion project.” That refers to the Saskatchewan government allowing potash companies to immediately write off 120% of investment from profits before paying any potash production tax on them.

Given that Saskatchewan’s resource surcharge (“capital tax”) is 3% of sales and Agrium paid only that amount, the implication is that it paid (almost) no potash production tax. The company also pays Crown royalties, which might bring the province’s total return up to 5% or 6%.

The provincial government should collect a better return for the people of Saskatchewan, who own the resource. In particular, why are we allowing potash companies to write off more than 100% of the amount they actually invest?

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