The Saskatchewan NDP is putting forward a proposal to help ease the pain that higher gas prices have inflicted on the province's residents.
That would include a 1% profit surcharge on oil and gas as well as the potash industries, which have recently come under a strong windfall.
It would end up paying for a dual $125 million rebate for Saskatchewan residents, which comes out to around $105 per person, and another $125 million to repeal the upcoming PST amendments.
Opposition Finance Critic Trent Wotherspoon says that the increase would be good for easing the current cost of gas.
"What we know is the Sask Party has growing windfall revenues through the resource sector, and we know that the resource sector itself is in serious windfall profits, we want that sector to be very profitable and those companies to be doing very well. But there's a duty to make sure Saskatchewan people receive some relief to the cost of living that they're experiencing."
That profit surcharge would only apply when oil prices go over $90 US per barrel and/or when potash prices exceed $700 CDN per K20 tonne.
That means during a sudden downturn the surcharge wouldn't dig into potentially tight margins.
"If the industry and those prices cooled off, that 1% would not apply, it would not be collected. That would only be in place when you have industries that are in serious windfall profits, and it would leave those companies with huge profits. It would just ensure that the Saskatchewan people receive a better return on those windfall profits."
Wotherspoon says that the charge is the responsible thing to do to help Saskatchewan residents.
"One percent for the resource surcharge is very modest and it's just a very reasonable and responsible thing to do for Saskatchewan people who are the owners of the resources and it's certainly no threat. It'll leave the companies and the industries with sky-high profits, and will leave those sectors with the strength they need and deserve."
Tue, Apr 23, 7:00 PM
