good info on canada tax credit story
posted on
Mar 30, 2012 08:19AM
Member Inquiries, Feedback and Testimonials
agora and hub leaders, thought maybe some of you could use this story on your respective boards.
The Canadian government announced it will streamline the permitting process for major Canadian mining projects, using the proposed "one project, one review" legislation.
Author: Dorothy Kosich
Posted: Friday , 30 Mar 2012
RENO (MINEWEB) -
Finance Minister Jim Flaherty Thursday presented a Canadian federal budget which streamlines the nation's environmental review process, extends a 15% mineral exploration tax credit for junior explorers, accelerates job growth, and enhances Canada's international competitiveness in mining.
In his budget presentation, Flaherty noted Canada's oil and gas, mining and forestry sectors directly employ more than 750,000 Canadians. "Canada's resource industries offer huge potential to create even more jobs and growth, now and over the next generation. This potential exists in every region of the country-natural gas in British Columbia, oil and minerals on the Prairies, the Ring of Fire in Ontario, Plan Nord in Quebec, hydro power in Atlantic Canada, and mining in Canada's North."
"We will implement responsible resource development and smart regulation for major economic projects, respecting provincial jurisdiction and maintaining the highest standards of environmental protection," he stressed. "We will streamline the review process for such projects, according to the following principle: one project, one review, completed in a clearly defined period. We will ensure that Canada has the infrastructure we need to move our exports to new markets."
Pierre Gratton, CEO of the Mining Association of Canada, said, "Today's budget will help expedite over Cdn$140 billion in new investment in Canada's mining sector. "Canada is in global competition for mining investment and an effective and efficient regulatory regime can provide a competitive advantage over other jurisdictions."
"Legislature reforms announced in today's budget promise to modernize Canada's environmental review and permitting processes," he said. "This will accelerate investment, job growth and enhance Canada's international competitiveness and position as a mining superpower."
The Canadian government aims to establish clear timelines for investors, reduce regulatory duplication, and redeploy resources on projects where environmental impacts are greatest. Panel reviews of large mining projects would be capped at two years while a one-year timeline has been set for environmental assessments.
"Of special note is a commitment to introduce the concept of equivalency in federal environmental assessments, whereby the federal government can accept a comparable provincial environmental assessment as its own," MAC said. "This will eliminate the need for two, duplicative reviews for a single project, saving taxpayers, citizens and proponents time and resources."
MAC also noted that the proposed fixed timelines for project reviews and assessments "will add clarity and certainty to processes, which, in the past, have been protracted and highly varied from one project to another."
The association also applauded the government's commitment to renew funding for the Major Projects Management Office (MPMO), which MAC called "an important instrument in the responsible and efficient development of Canada's natural resources."
The MPMO is a Government of Canada organization which provides overarching project management and accountability for major resource projects in the federal regulatory review process, and to facilitate improvements to the regulatory system for major resource projects.
The budget also dedicates $14 million over two years to integrate consultations with aboriginal peoples into project reviews.
Both MAC and the Association for Mineral Exploration British Columbia (AME BC) praised the federal government for extending the Mineral Exploration Tax Credit until March 31, 2013. However, the budget also details a phased-elimination of the tax credit.
"While we appreciate the grandfathering provisions and the phase-in approach to eliminating this tax credit, we are disappointed to see its elimination," said Gratton.
"Mineral exploration is the research and development that drives Canada's successful mining sector, and today's announcement demonstrates the federal government's commitment to this critical sector of Canada's economy," said Gavin Dirom, CEO of AME BC.
"While we are pleased by today's announcement, we encourage the federal government to simply make the Mineral Exploration Tax Credit permanent. Government is faced on a yearly basis with the review of its policy towards the Mineral Exploration Tax Credit and this annual review cycle creates needless work and uncertainty about investing in Canada's mineral exploration and development sector. Making it permanent would send an even stronger and clearer signal to investors that the federal government encourages continued investment in Canada's mineral exploration sector," Dirom stressed.
Meanwhile, the Budget 2012 Economic Action Plan also proposes to eliminate the penny from Canada's coinage system. It costs the government 1.6 cents to produce each new penny. The estimated cost to the government of supplying pennies to the economy is about C$11 million a year.
While the Royal Canadian Mint will no longer distribute pennies as of this Fall, consumers can continue to use the pennies for transactions indefinitely.