Saskatchewan’s Ministry of Energy and Resources has released its 2011-12 Annual Report. The potash table (page 36) incredibly shows “Royalty/Tax†revenue of only $62.5 million in 2010-11 and $38.4 million in 2011-12. These figures amount to just 1.2% and 0.6% respectively of the value of potash sales. I have long argued that Saskatchewan’s potash royalties are too low, but they […]
Read moreSaskatchewan newspapers report: “Certainly in professional, scientific and technical areas and in the mining and the manufacturing sector (the job numbers) are very strong,†Don Morgan, minister of advanced education and labour relations, told reporters at news conference Friday. On Friday, Statistics Canada reported that Saskatchewan manufacturing employment dropped by 900 last month and declined by 600 over the past […]
Read moreAgrium 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 […]
Read moreThe China National Offshore Oil Corporation’s (CNOOC) bid to acquire Nexen is a large and complex proposal. Canadians should call for a more thorough and transparent review than other foreign takeovers have received under the Investment Canada Act. A preliminary outline of possible costs and benefits follows. The Downside: Chinese Consumer Interests A company like Nexen aims to sell oil […]
Read moreToday’s Consumer Price Index provides further evidence of Saskatchewan’s rising cost of living. Among the provinces, Saskatchewan is tied for the second-highest annual inflation rate: 2.0%. Consumer prices decreased in June from May in nine provinces (all except Alberta). But Saskatchewan was tied for the smallest monthly price decline: -0.3%. Compared to the rest of Canada, Saskatchewan residents experienced nearly […]
Read moreToday’s Mosaic quarterly report provides further evidence that the Government of Saskatchewan should improve its royalty and tax structure to collect a better return on the province’s non-renewable resources like potash. Quarterly Comparison Despite higher potash prices, Mosaic paid lower royalties and resource taxes to Saskatchewan last quarter than in the same quarter of last year. In the three months […]
Read moreAt yesterday’s Saskatchewan Roughrider game, Premier Wall announced provincial funding for a new stadium: an $80-million grant and a $100-million loan to be repaid over time through a surcharge on tickets. While it’s unclear why a stadium should be anywhere near the top of the priority list, a readiness to invest in public infrastructure is positive. The province could generate […]
Read moreLast week, Conservative MP Randy Hoback had another letter in The Prince Albert Daily Herald blaming the NDP for the pulp-mill closure in 2006. He still has not addressed my main point about resource royalties. I have the following response on page 4 of today’s Herald: Pulp mill saga proves Mulcair’s point Notwithstanding MP Randy Hoback’s repeated use of the […]
Read moreIn case anyone was wondering about the effectiveness of right to work laws in suppressing unionization, here is a chart of Union coverage rate by State (the percentage of all employees that are covered by a collective agreement) as of 2010.  Right to work states have an asterisk, and are outlined with a black dotted line. (Chart updated, original scale was wrong). […]
Read moreI have the following letter in today’s Prince Albert Daily Herald (page 4): Reinvest Resource Wealth in Saskatchewan To the editor: I strongly agree with the title of MP Randy Hoback’s letter: “Siphoning money out of the west is wrong†(June 9). My proposal is to keep more money in Saskatchewan by collecting more provincial royalty revenue from the extraction […]
Read moreI’ve worked closely with Erin for years, being struck by his combination of talent & passion right from the time he entered the PEF’s student essay contest (which he won for the first time exactly a decade ago, awarded at the CEA 2002 meetings in Calgary). Thirty-six other economists and I think he’d make a great contribution to economic policy […]
Read morePrince Albert MP Randy Hoback began last week’s inquisition by objecting to my recent op-ed in The Saskatoon StarPheonix on the “Dutch disease†debate between Saskatchewan Premier Brad Wall and federal NDP leader Tom Mulcair. He then interrupted to question my NDP affiliation. As indicated in today’s Prince Albert Daily Herald (page A4), I would be happy to debate Hoback […]
Read moreCanada’s job market stalled in May. Employment edged up by 7,700, almost all of it part-time. In fact, the number of employees paid by Canadian employers fell by 15,600. Total “employment” rose only because 23,300 more Canadians reported themselves as self-employed. Over the past year, employment has grown slightly less than the labour force, leaving 1.4 million Canadians officially unemployed. […]
Read moreSaskatchewan conservatives are getting cranky. At last night’s Finance Committee meeting on the omnibus bill, MP Randy Hoback exposed me as being a New Democrat who writes “garbage†(as this blog’s readers already know). Full video of the meeting is available here, with my presentation starting two hours in. UPDATE (June 1): Hoback’s attack has been covered by Macleans, CBC […]
Read moreSaskatchewan’s Minister of Energy and Resources replied to my op-ed and letter on Dutch disease and resource royalties. On Friday, he was promoted to Minister of Everything. Columnist Murray Mandryk wrote, “Given the amount of power Bill Boyd now has in his super-economy portfolio, he may be one fluffy Persian cat and remote desert island shy of becoming the political […]
Read moreLast week, I had the following letter in The Globe and Mail: Oil sands royalties The Canadian Association of Petroleum Producers’ most recent Statistical Handbook indicates that, in 2010, this industry sold $101-billion of oil and gas but paid only $12-billion in resource royalties. Even Senator Pamela Wallin’s higher figure of $22-billion (Oil Sands’ Benefits – letter, May 12), which […]
Read morePremier Brad Wall was Tweeting about today’s Statistics Canada report of an uptick in national manufacturing sales in March. It is an odd report for him to trumpet, given that it found a decline in Saskatchewan’s manufacturing sales that month. Another recent Statistics Canada report, Friday’s Labour Force Survey, indicates that Saskatchewan lost 400 manufacturing jobs in April. I had […]
Read moreI have the following op-ed in today’s Saskatoon StarPhoenix: Royalty hike cure for Dutch disease Premier Brad Wall calls federal NDP Leader Tom Mulcair “very, very divisive†for expressing concern that Canada’s overvalued petro-dollar is eliminating manufacturing jobs. In reality, Wall is being divisive by exploiting this legitimate concern to fan the flames of western alienation. Saskatchewan and other provinces […]
Read moreMurray Mandryk’s excellent column today saves me the trouble of writing a lengthy blog post on the Saskatchewan government’s recent musings about labour legislation. From an economic perspective, it’s worth noting that enabling unionized workers to opt out of paying union dues would create a classic free-rider problem. Indeed, Wikipedia’s article on this topic uses collective bargaining as an example: […]
Read moreThe following is another excerpt from Dr. Ryan Meili’s new book, A Healthy Society: How a Focus on Health Can Revive Canadian Democracy, which fellow blogger Greg Fingas has been discussing. The road to Tevele is red sand and sloppy in the rainy season. The pick- up truck bounces in and out of ruts as we head thirty-some kilometres from […]
Read moreI’ve written before about attempts in Canada to create more separation between university teaching, on the one hand, and university research, on the other. In 2009, I wrote this opinion piece about an attempt by five university presidents to each acquire a larger share of university research dollars. And last year, I blogged here about a proposal for the Ontario […]
Read moreThe following is an excerpt from Dr. Ryan Meili’s new book, A Healthy Society: How a Focus on Health Can Revive Canadian Democracy. There’s a family that comes frequently to the West Side Clinic; we’ll call them Lucas and Annie. Hardly a week goes by that I don’t see them in for a medical visit or just hanging out in […]
Read moreA hallmark of Brad Wall’s premiership has been cosy relations with municipal governments and the two westernmost provincial governments. Since taking office, the Sask. Party has been throwing money at municipalities. It pledged not to sign the Trade, Investment and Labour Mobility Agreement with Alberta and BC, but then did so through the New West Partnership. A couple of tax […]
Read moreAn interesting nugget in last week’s Drummond report is Table 11.1, an updated version of Table 2 from “Ontario’s Tax Plan for Jobs and Growth†(2009). It provides a sectoral breakdown of the McGuinty government’s recent business tax breaks: HST input tax credits, cutting the corporate income tax, and eliminating the corporate capital tax. The combined annual cost of these […]
Read moreProgressive economists have advocated expansionary fiscal and monetary policies to boost demand and create jobs, given the high rate of unemployment. By contrast, employers and conservative commentators complain of unfilled vacancies and labour shortages, emphasizing policies to increase labour supply and labour mobility. Today’s new Statistics Canada survey of job vacancies sheds fresh light on this debate. The finding that […]
Read moreSaskatchewan’s Brad Wall recently issued a statement exhorting his fellow Premiers to blaze largely unspecified new trails on healthcare, Employment Insurance and Equalization. Unfortunately, he misses the ball on all three issues. Greg Fingas and Verda Petry have already refuted Wall’s call for further healthcare privatization. On Employment Insurance, Wall implies that eastern Canadians are collecting excessive benefits funded by […]
Read moreSaskatchewan’s newspapers reported today that BHP Billiton intends to sell the province’s potash outside of Canpotex, the marketing board that helps to maximize the price for which Saskatchewan potash is exported offshore. BHP executive Tim Cutt stated, “We will not market through Canpotex. We talked to the premier (Brad Wall) about that. He understands that.†Concerns that BHP would undermine […]
Read moreI join other progressive bloggers in mourning the loss of Joe Kuchta. As CBC reported, his investigative approach to Saskatchewan and Saskatoon politics was widely respected. I drew upon his insights several times in debating the Trade, Investment and Labour Mobility Agreement.
Read moreToday’s Labour Force Survey indicates that the seemingly robust economic growth reported by Statistics Canada earlier this week is not translating into improved job prospects for Canadian workers. For the second consecutive month, employment is down and unemployment is up. (By contrast, the situation improved south of the border.) Manufacturing: Another Record Low Although overall employment in goods-producing industries rose […]
Read moreAdvocates of low potash royalties are claiming that New Democrats fared poorly in Saskatchewan’s recent election because they proposed higher potash royalties. Of course, potash companies and their boosters would like the NDP to give up this cause. Doing so would be a political mistake for the party and a disservice to the people of Saskatchewan. Most polling indicates that most Saskatchewan […]
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