Internet Payments

Secure & Reliable

Your data is encrypted and secure with us.
Godaddyseal image
VeraSafe Security Seal

Lethbridge Herald Newspaper Archives

- Page 5

Join us for 7 days to view your results

Enter your details to get started

or Login

What will you discover?

  • 108,666,265 Obituaries
  • 86,129,063 Archives
  • Birth & Marriages
  • Arrests & legal notices
  • And so much more
Issue Date:
Pages Available: 24

Search All United States newspapers

Research your ancestors and family tree, historical events, famous people and so much more!

Browse U.S. Newspaper Archives

googlemap

Select the state you are looking for from the map or the list below

OCR Text

Lethbridge Herald, The (Newspaper) - July 29, 1974, Lethbridge, Alberta July 1974 THE LETHBRIDGE HERALD 5 ilt ES ANYBODY OUT THERE GIVE A DAMN IF THE MINING INDUSTRY IS TAXED TO Nearly all of us arc paving more luxes these days. Nobody likes to pay more taxes. Neither do we. It makes it tougher to meet answer to replace expand our operations and remain competitive in world markets. But we're not opposed to paying more taxes or operating under new providing the lax rates and the new rules are reasonable and don't put us out of business. The Risks and Realities of Mining Tax rates and royalties are especially important to us because mining operations are basically quite different from other types of industry. For mining companies must produce minerals where are found and more and more this is in remote regions of the country where costs of establishing a mine are much higher. Ore of are eventually mined out and the difficulties and uncertainties of finding new deposits involve heavy financial risks. Even after a mine is unforeseen problems of extraction and processing can frequently arise. mineral prices are determined in international markets and van over a wide making forecasting extremely especially since a new mine can be 5-1 years getting into production. Supertax and the Supersqueeze Right now. we're caught in a tax squeeze between the federal government and certain all of whom want to increase their direct tax and royalty revenues from the mining industry. both levels of government are trying to maximize their respective taxing powers of the industry without consulting each other or coordinating their policies. The result has been a host of hastily-devised tax and royalty measures which threaten the jobs of thousands of employees and the benefits to all Canadians from the widespread economic activity which mining generates in all parts of Canada. During the past several the governments of British Ontario and Saskatchewan have either introduced or given notice of new legislation coupled with new federal as proposed in the May. 1974. would mean the total tax burden would range up to 70 percent or higher for many mining companies. In certain profits would he axed at ridiculous rates approaching 100 per cent. Not only are the combined tax and royalty rates oppressively but new controls in certain provinces both implemented or vould effectively result in government management of the mining industry. In for the government intends to re-introduce a bill vhich will effectively control production levels as well as substantially ncrcasc tax revenues. In British the government has imposed a base royally plus a in on sales values or ralher than on taking no account of the inevitable increase in operating costs. Ontario has introduced steeply graduated tax rales. Saskatchewan is considering heavy new taxes and other provinces are also reviewing existing tax legislation. In the absence of consultation and this federal-provincial tax squeeze not only threatens to cripple the future of the mining but will do lasting harm to the Canadian economy. And that's where von too. The Supersqueeze Will Hurt Everybody You depend upon the mining industry in a host of different ways. Just think about it. Nearly everything we use in our daily life is made of metals and minerals. Without them we would be reduced to the most primitive state imaginable. Consider these Canada is the third largest mineral producing nation in the world and its mining industry provides direct employment for more than Canadians. Directly and mining provides employment lor an estimated 11 percent of the total employed labour force in Canada. Next to it pays the highest wages and salaries of all Canadian industries. Mining and mineral-based products account for 26 per cent of Canada's commodity exports. They arc one the mainstays in our effort to pay our wav in the world. The industry spends about two billion dollars annually for supplies and services and accounts for 40 per cent of all the tonnage carried rail and water. Perhaps its most important contribution is the development of new communities throughout the less favoured reuions of Canada. Let's Get Profits Into Perspective some people believe the mining industry should be taxed and controlled more than it is now. And when headlines in the press proclaim seemingly large gains in profits by mining people tend to think the industry can easily afford to pay much higher taxes. But too profits are reported in terms of year-to-year or quarter-to-quarter percentage gains. This can be misleading and can give the impression of excessive profits. Business generally operates in cycles and this is especially true of the mining industry. Most investors would agree a more realistic way to look at profits is on the basis of the rate of return on capital taking into account the degree of over a period of several years. Here's how the mining industry compared with manufacturing and industry generally over the past five RATE OF RETURN ON CAPITAL EMPLOYED Total Manufacturing Total All Industries Total Average 1969 1970 1971 1972 1973 1969-1973 6.4 5.5 6.1 6.8 9.0 6.8 8.9 9.6 5.8 3.6 10.2 7.6 oil and gas Statistics Canada Industrial Corporations Financial Statistics considering the special risks the mining industry's return on Capital invested in the past live years is not higher than manufacturing and industry and is less than many major industries including food and printing and publishing and others. Of the mining industry is a profit-making.enterprise. Surelv that's isn't Profits provide the motivation for business decision from product innovation to the high risk-taking of mineral exploration. also provide governments with a large measure of their income. There's nothing immoral about profits. Without business and indtistrv could not let alone develop or expand their operations. It's time to talk sense about profits and get them into perspective. It's Time To End The Squabble And it's lime for governments federal and'provincial to end their squabble over tax revenues from the mining industry and reverse the trend towards increasing interference and management of ill is vital industry. exploration and development activities are being drastically curtailed in certain provinces and mining companies are being forced to accelerate their exploration efforts outside Canada since they must maintain supplies for their customers. That's a basic fact Ol business life. Hventually. it will mean only the very high-grade mines will be developed in Canada and the industry will inevitably decline. Jobs will be lost and mining communities as well as the secondan and manufacturing industries which depend upon mining will suffer severely. The hard fact is Canada has already become a much less attractive place for the large amounts of risk capital required for mining. you see. is your too. Lei's not destroy it. It's an industry for the future well-being of every should be permitted to live and to grow under reasonable tax rates and reasonable regulations. more information about the tax squeeze on the mining write The Mining Association of Suite Tower Place 6e Canada COUNTS on Mining THE MINING ASSnriATIHN OF YAMAHA ;