|CCPA Budget Submissions|
Natural Resource Royalties Reform, Iglika Ivanova, Canadian Centre for Policy Alternatives, October 2014
BC used to collect well over $1 billion per year from natural gas royalties, but over the last five fiscal years these averaged a mere $330 million per year. The tax/royalty regime for LNG put forward in Budget 2015 should place more emphasis on achieving public benefits before signing away the rights to this non-renewable, publicly owned resource. BC should also collect more from companies using our water and forest resources.The decline in revenues from natural resources is even worse than stated by CCPA since government has been building an unrecorded liability to gas producers that will offset future royalties. The amount stood at $1.2 billion at March 31, 2014.
In addition, direct expenditures by the gas ministry went up by 900% between 2008 and 2014 so the net budget contribution from natural resources is significantly reduced. Regular readers of Northern Insight will not be surprised by these numbers. We've been offering this information for some time. It is drawn from BC Government documents and the numbers are indisputable.