Wednesday, February 13, 2013

This Day In Snookland (ctd)...The Sparkle Ponies Strike Back!



The following, from the business division of The Globe, makes it look like Pammy and Christy's Trillion Dollar Sparkle Pony Army is not getting off to a good start:

The energy sector is lashing out at a British Columbia proposal to impose a major new tax on the impending export of natural gas, saying the province risks serious damage to a fledgling industry before it has a chance to take wing.

Some 10 proposals are now being considered for the shipment of liquefied natural gas from B.C., a province that has eagerly promoted the vast new revenues the coming development stands to produce. The province has said it now believes five export terminals could be built in coming years; the first could be complete by 2015....

{snippety doo-dah}

...“The B.C. government was actually building roads to try to stimulate [natural-gas] activity – and now they want to turn around and bite the hand that’s going to feed them?” said Peter Doig, a former financial analyst who has scrutinized the potential for LNG exports. He has expressed doubts whether projects can be profitably built in B.C.

“You kind of question the economics already. And then if you throw higher royalty rates on, it’s a nail in the coffin,” he said.

Another problem for B.C.: Raising royalties on gas production could push activity outside its borders.

“They’re welcome to put royalties wherever they think best. But they are also competing against other gas that would likely be attached to the same pipeline network – Alberta gas,” said Steve Paget, an analyst with FirstEnergy Capital in Calgary...

Or, put another way....

...Live by the subsidies for the cronies on sparkle ponies, die by the subsidies for the cronies on sparkle ponies.

Or some such thing.



Laila said...

Brilliant line there RossK,just bloody brilliant.Taxpayers have been subsidizing the building of virtually private mine roads for a helluva long time,via the BC Infrastructure Royalty credit, which I have written about many times with the thought that we needed to cut back on that which would increase our revenues provincially.

Perhaps Christy didn't know about this

Anonymous said...

These 'guys' don't want to pay for anything. The taxpayer it seems is to foot the bill for the exploration, poisoned groundwater, roads, pipes. electricity and everything else. What? Private Enterprise pay taxes or royalties???? Trouble is the Campbell/Christy Critters say 'Yes' what we tax will subsidize industry. ( Expecting cushy jobs when turfed maybe?) Why THREE natural gas pipelines? Isn't one enough? Dilbit oil need two - one in - one out. That is a total of five from the oil/gas patches. That will be one hell of swath of missing trees to the Coast.


testy troll said...

Grant G explains the LNG corporate welfare scheme here

cfvua said...

Had the very generous Gordon Campbell with Richard Neufeld not fallen for the whining from Calgary in the first place, royalties would still be where they should be and the province wouldn't be nearly so broke. By emulating Santa Claus, this pair and now Clark and Coleman also generously allowed "special" out of province services to be brought in at the expense of readily available BC services. Now if there is any questions remaining on how subsidies would be covered by increases in job levels, we can officially say that myth is "busted". So why allow any more subsidies? This wreck can be seen coming miles away as the threat of "capital flight" is the one that is always on the horizon with special interest groups like CAPP. time to call their bluff.