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"Ridiculously low" royalty rates challenged |
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Written by CUPE Sask
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Saturday, 11 June 2011 |
Saskatchewan’s resources royalty rates are ridiculously low. As economist Erin Weir writes: “Every time I check the numbers, I am again shocked by how low they have fallen.”
The Potash Corporation of Saskatchewan (PCS), now American-owned, generated about $1.6 billion on its Saskatchewan potash mines in 2010. But it only paid $77 million to Saskatchewan in royalties.
It only “paid a nickel in provincial royalties for every dollar of gross margin it made on potash,” says Weir. In contrast, Saskatchewan used to charge potash royalty rates of 25 – 31 per cent less than a decade ago. To find out what Saskatchewan people could accomplish with fair royalty rates, visit Imagine What We Could Do.
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