Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Canadian finance minister delivered a budget for the resource sector, promising faster project approvals and changes to immigration to increase manpower, while enviromental groups will receive closer scrutiny from the Canadian Revenue Agency.
Tabling the budget on Thursday, Finance Minister Jim Flaherty announced that his government was going to take the uncertainty out of project assessments.
“We will streamline the review process for such projects, according to the following principle: one project, one review, completed in a clearly defined time period,” said Flaherty.(Read an extended excerpt from Budget 2012 explaining changes to the resource sector approval process.)
To address the manpower shortage in the oilsands, Flaherty said changes will be made to the immigration system. The government said it will better align the Temporary Foreign Worker Program with labour market demands. There will also be improvements to employment insurance and Aboriginal education.
The government is also taking on charities with a political bent. The budget adds $8 million to the Canada Revenue Agency to, in the government’s words, enhance transparency and accountability.
“Recently, concerns have been raised that some charities may not be respecting the rules regarding political activities. There have also been calls for greater public transparency related to the political activities of charities, including the extent to which they may be funded by foreign sources,” says the government in chapter four of its 2012 budget plan.
“It is also proposed that the Income Tax Act be amended to restrict the extent to which charities may fund the political activities of other qualified donees, and to introduce new sanctions for charities that exceed the limits on political activities, or that fail to provide complete and accurate information in relation to any aspect of their annual return.”
Writing for Macleans, columnist Paul Wells believes the government is itching for a fight:
Who has raised concerns about political activities and foreign funding by charities? Ethical Oil and its affiliated Our Decision campaign, run by Conservatives with close ties to Harper’s government. Now, Ethical Oil isn’t a charity. Doesn’t claim to be. Tides Canada does. It takes money from outside Canada (environmentalism being a global movement and all) and spends it on political advocacy to oppose oil sands and pipeline projects. This budget announces measures to make those activities harder.
This is not my theory. It was cheerfully explained to me by a government staffer in the budget lockup. The Kneecap Tides Canada Provision (my name, not Finance’s), incidentally, is tucked away at the end of Chapter 4, “Sustainable Social Programs and a Secure Retirement.”
Other highlights in the budget for natural resources were the following:
Comments
Mario Faz
it’s clear to me that some environmentalists organizations aside for their concerns on the environment. Issues all people, including many in the mining and oil industries share, are driven by political purposes, not to ensure the correct supervision of the sector but to gain positions within goverments in the national and local levels. Exploting the good will of concerned citizens for their own agendas.We must stop this guys, they are hurting the economy of part of our economy. The productin of oil sands and other energy resources as well as raw materials from the mining industry are the key of our economic growth an poitical and social stability. Let us be aware of those left leaning guys intentions.The government is too important to left in the hands of politicians. Thank you.