Oil royalties could give Sask. $2.7B more: economist

Neil Scott, Leader-PostPublished: Friday, October 24, 2008

Erin Weir, an economist employed by the United Steelworkers Union, said the tax breaks provided to Saskatchewan citizens by the provincial government earlier this week only cost an amount equal to about one-ninth of the revenues lost by the province by not charging oil companies appropriate royalties.

"The government of Saskatchewan has some room to increase oil royalties,'' Weir told an audience of more than 600 at the Conexus Arts Centre.

Weir said he believes there was room last year for the provincial government to have charged $2.7 billion more in oil royalties while still leaving oil companies room to make an adequate profit.
The provincial government could also have earned about $800 million more last year by raising potash royalties, Weir said.

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