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  • Report looks at captured nature of BC’s Oil and Gas Commission August 6, 2019
    From an early stage, BC’s Oil and Gas Commission bore the hallmarks of a captured regulator. The very industry that the Commission was formed to regulate had a significant hand in its creation and, too often, the interests of the industry it regulates take precedence over the public interest. This report looks at the evolution […]
    Canadian Centre for Policy Alternatives
  • Correcting the Record July 26, 2019
    Earlier this week Kris Sims and Franco Terrazzano of the Canadian Taxpayers Federation wrote an opinion piece that was published in the Calgary Sun, Edmonton Sun, Winnipeg Sun, Ottawa Sun and Toronto Sun. The opinion piece makes several false claims and connections regarding the Corporate Mapping Project (CMP), which we would like to correct. The […]
    Canadian Centre for Policy Alternatives
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    Our new report maps rental affordability in neighbourhoods across Canada by calculating the “rental wage,” which is the hourly wage needed to afford an average apartment without spending more than 30% of one’s earnings.  Across all of Canada, the average wage needed to afford a two-bedroom apartment is $22.40/h, or $20.20/h for an average one […]
    Canadian Centre for Policy Alternatives
  • Towards Justice: Tackling Indigenous Child Poverty in Canada July 9, 2019
    CCPA senior economist David Macdonald co-authored a new report, Towards Justice: Tackling Indigenous Child Poverty in Canada­—released by Upstream Institute in partnership with the Assembly of First Nations (AFN) and the Canadian Centre for Policy Alternatives (CCPA)—tracks child poverty rates using Census 2006, the 2011 National Household Survey and Census 2016. The report is available for […]
    Canadian Centre for Policy Alternatives
  • Fossil-Power Top 50 launched July 3, 2019
    What do Suncor, Encana, the Royal Bank of Canada, the Fraser Institute and 46 other companies and organizations have in common? They are among the entities that make up the most influential fossil fuel industry players in Canada. Today, the Corporate Mapping Project (CMP) is drawing attention to these powerful corporations and organizations with the […]
    Canadian Centre for Policy Alternatives
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No Vale on the Plains?

I had the following comments in yesterday’s front-page story on Vale’s decision to postpone its proposed $3-billion potash mine at Kronau, Saskatchewan:

Regina economist Erin Weir, who is widely expected to run for the leadership of the provincial NDP, said in a statement Friday that the Vale announcement “represents a failure of the Saskatchewan government’s approach of almost giving away the resource to encourage companies to dig it out of the ground as quickly as possible.”

“The silver lining is that Vale will not increase potash supply as quickly as expected. A tighter potash market likely means higher potash prices and even larger profits for existing producers,” he said.

What did not make it into print was my further argument that the provincial government should collect a better royalty return from those existing companies by ending the potash production tax concessions that proved ineffective in spurring Vale’s investment.

Another important issue is that Vale has been a rather poor employer in Canada’s mining sector. In 2009, it provoked a strike that lasted more than a year at its nickel mines in Ontario and Labrador.

In response, the Government of Newfoundland and Labrador established an Industrial Inquiry Commission, which made recommendations about how a small province could more effectively deal with large multinational employers.

The Government of Saskatchewan should use the time provided by the Kronau delay to consider these issues, so that our province does not have a similar experience with Vale if the mine is built.

Enjoy and share:

Comments

Comment from the regina mom
Time: August 20, 2012, 6:32 am

Another issue associated with the potash industry is water use. The Kronau mine is expected to draw 40 million litres of water a day from the Qu’Appelle Valley watershed. (http://bit.ly/TPsisR) Can that watershed actually sustain itself with that kind of draw?

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