PotashCorp CEO Bill Doyle waded into Saskatchewan’s election campaign on Friday with an op-ed in the province’s two largest newspapers. It was accompanied by a paid advertisement from PotashCorp in Saskatoon’s StarPhoenix. The company got some free advertising in Regina’s Leader-Post through Bruce Johnstone’s column, which repeated Doyle’s op-ed. The Saskatchewan Party is parroting the same lines. In response to […]
Read moreIn August Canadian Business magazine published my article on why inequality is bad for business. It is produced in full below. Last week the International Monetary Fund, not known for left-leaning views, released a series of articles entitled “Why Inequality Throws Us Off Balance”. One of the papers is by Andrew Berg and Jonathan Ostry entitled “Equality and Efficiency: Is […]
Read moreA recent article by George Monbiot in The Guardian takes a critical look at academic publishers, apparently with a focus on the United Kingdom. The article makes the following points: -Journals now eat up 65 percent of university library budgets. -“[A]cademic publishers get their articles, their peer reviewing (vetting by other researchers) and even much of their editing for free.” -The research published by academic publishers is largely […]
Read moreIt was news, not so much because of what was said, as who said it:Â The Conference Board of Canada released a report on rising inequality in Canada today, noting that despite the fact that Canadians are better off than a generation ago, the richest 20% in society are taking an ever-growing share of the economic pie, while the middle […]
Read moreMy copy of the Globe and Mail the other day included the July edition of the Report on Business magazine, featuring its annual ranking of the top 1000 publicly-traded corporations in Canada. The survey makes for fascinating reading. In honour of Canada Day, I would like to present a few statistical factoids about these huge institutions that determine the direction […]
Read moreStatscan have produced interesting and important new estimates of the upper bound size of the “underground” or “non observed” economy, putting it at a seemingly modest 2.2% of GDP in 2008. (Some of this is already included in GDP which is adjusted to take into account some hidden and unreported economic activity.) The 2.2% estimate shows that we are a […]
Read moreToday’s Globe and Mail carried a story on the front of the business section about Jason Underwood, CEO of Whiterock REIT (a real-estate development income trust). He earned $4.8 million compensation last year (an increase of 475% from the previous year), which is especially surprising since the entire fund has a market value of just $373 million. (REITs, like other […]
Read moreThis blog has long been critiquing Saskatchewan’s inadequate potash royalties. But every time I check the numbers, I am again shocked by how low they have fallen. In 2010, the Potash Corporation of Saskatchewan paid just a nickel in provincial royalties for every dollar of gross margin it made on potash. I have the following op-ed in today’s Saskatoon StarPhoenix: […]
Read moreFor the past few weeks, a business leader could scarcely pick up a magazine without bumping into that other inconvenient truth of our era: rising inequality. It’s been the topic of discussion everywhere from the Economist, to The Atlantic, to the World Economic Forum. Today CTV’s Business News Network (BNN) launched a three-part series looking at the gap between the […]
Read moreEarlier this month, I attended a very interesting conference on the taxation of multinational corporations. It included a case study of how SABMiller avoids paying tax in Africa. While many of the points presented are undoubtedly familiar to this blog’s readers, the conference put it all together with a clarity that I attempt to reproduce below. The Trouble with Transfer […]
Read moreAs we witness the on-going drama of governments and conservative forces around the world trying to shut down the whistleblower site Wikileaks and imprison and silence its founder, Julian Assange, on very thin grounds of sexual assault (read the British newspaper The Daily Mail’s story on the Swedish police report on the allegations – they are beyond absurd), what we […]
Read moreThe cover of last week’s Economist magazine boasted the headline “Grow, dammit, grow!†above a picture of a bald man looking up at a tiny sprout of hair on his pate. As the Great Recession continues to grind on with no end in sight – with growth remaining anemic and unemployment stubbornly high in North America and Europe – mainstream […]
Read moreA key issue arising from the proposed potash takeover is BHP Billiton’s musing about leaving Canpotex, the agency that has long marketed Canadian potash offshore. (Growing up near the railroad tracks in Regina, Canpotex train cars were a familiar sight.) Perhaps BHP believes that it alone has sufficient clout to manage supply and negotiate overseas prices without Canpotex. But other […]
Read moreAs sometimes happens, I started writing a comment on Jim’s excellent post and then realized that there was enough material for a new post. I agree with Jim that Ottawa’s $130-million settlement with AbitibiBowater deserves more attention, but I have been waist-deep in potash. I think that my initial take on Abitibi’s NAFTA challenge still holds up pretty well. But here are three […]
Read moreI have the following op-ed in today’s Regina Leader-Post. Below it is a table supporting my statement that “the mines that PCS owned in 1989 still account for 80 per cent of its potash production and capacity.†Privatizing Potash was a Costly Mistake The greatest tragedy in BHP Billiton’s $38.6-billion (U.S.) bid for the Potash Corporation of Saskatchewan (PCS) is […]
Read moreLast week, I was in Halifax at USW’s Ontario-Atlantic district conference. It was a great conference in a great city. But having so many key people out of the office limited our response to BHP Billiton’s bid for the Potash Corporation of Saskatchewan. (Next time BHP launches a hostile takeover, it should better coordinate the timing with interested unions.) Nevertheless, […]
Read moreNine days ago, I posted about private non-financial corporations accumulating cash rather than investing in Canada. A week later, the Bank of Canada’s Monetary Policy Report (MPR) noted “the relatively high level of liquidity held by the non-financial corporate sector and weak investment†(page 19). By my count, the document expresses concern eight separate times about anemic business investment. It acknowledges […]
Read moreSince Stephen Harper and David Cameron seem to be on the same wavelength, and the UK thinks it can trash census and turn to isources like credit records for its information needs, the story below on privacy, from Alberta, may be of possible interest. Report of an Investigation into the Security, Collection and Retention of Personal Information TJX Companies Inc. […]
Read moreThere has been a persistent drumbeat in the American business press about corporations accumulating cash. The argument is that, while corporations are making solid profits now, they are not investing in the US for fear of anti-business policies in the future. Obama has allegedly spooked corporate America into hoarding cash rather than investing. To test that story, I looked at […]
Read moreVale, the company against which my union has been on strike since July 2009, released its first-quarter earnings this evening. The release deflates Vale’s rationale for demanding labour concessions and confirms that the strike is hurting its bottom line. The company wants to eliminate defined-benefit pensions for new employees and drastically reduce the bonus paid to workers when nickel prices […]
Read moreGrowing up in Saskatchewan, the oil and gas industry’s line was always that we had to charge lower royalties to compete with Alberta for investment. The provincial NDP government bought into that mantra and repeatedly slashed royalty rates, even as commodity prices took off during the past decade. When Alberta’s Conservative government announced in late 2007 that it would raise […]
Read moreMichael Ignatieff sent an April Fool’s Day letter to the Canadian Chamber of Commerce. It marshalled compelling evidence against more corporate tax cuts, but insisted that the Liberals still favour more corporate tax cuts: In a study that KPMG describes as “the most thorough comparison of international business locations ever undertaken by KPMG,†it was demonstrated that Canada is already […]
Read moreLast night, I went to sleep early before watching any coverage of the Liberal Policy Conference. This morning, a well-rested Erin Weir marched into the office with such purpose that I did not even look below the fold on The Globe and Mail’s front page. Imagine my pleasant surprise when I got an e-mail about Michael Ignatieff proposing to cancel […]
Read moreOver at Worthwhile Canadian Initiative, Stephen Gordon critiques the last federal NDP platform’s reference to “Canada’s wealthiest corporations†on the grounds that people, not corporations, own things. But as Declan points out in several pithy comments on Stephen’s post, corporations clearly can and do own things. The corporations that own the most valuable things in Canada can quite reasonably be […]
Read moreThe Alberta government is reversing its modest increase in conventional oil and gas royalties. Albertans will now receive an even smaller fraction of the value of their resources. The saving grace is that the provincial government did not cut royalties on the oil sands, which are projected to provide more revenue than conventional reserves going forward. Corporate executives welcomed Thursday’s […]
Read moreI was out of town and away from the blogosphere during the recent controversy about TD Bank CEO Ed Clark’s “raise my taxes†comment. As Terry Corcoran pointed out, CEOs are not actually proposing higher taxes on executive incomes or corporate profits. They are instead proposing to hike the GST, a tax that exempts all income in excess of consumption and […]
Read moreVale, the company against which my union has been on strike since July of last year, released its fourth-quarter earnings this evening. This release deflates the company’s rationale for demanding labour concessions and confirms that the strike is hurting its bottom line. Vale wants to eliminate defined-benefit pensions for new employees and drastically reduce the bonus paid to workers when […]
Read moreThis past week, Jack Mintz issued a report (PDF) praising Ontario’s last provincial budget. I like East Side Mario’s because it features both all-you-can-eat bread and all-you-can-eat salad. So, it is not surprising that a corporate tax-fighter would love a budget featuring both corporate income tax cuts and the removal of sales tax from business inputs. Queen’s Park is giving […]
Read moreVale, the company against which my union has been on strike since July, presented its third-quarter earnings this morning. These figures confirm that Vale does not need the concessions it has been demanding and that the strike is costing it significantly. The company wants to eliminate defined-benefit pensions for new employees and drastically reduce the bonus plan that pays workers […]
Read morePosted below is my Globe and Mail column this week raising questions about whether troubled companies can really “cut their way to viability.” When companies face trouble, the knee-jerk response is always to cut back: close plants, reduce headcount, cut compensation. Reflecting their shorter-term time horizon (and their consequent hunger for a faster payback), financial markets favour the most determined […]
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