MONTREAL -- Canadian governments spent almost $3 billion subsidizing the oil industry in 2008, according to a recent report.
The International Institute for Sustainable Development is also predicting the subsidies will more than double as a share of government expenditures in 2020, along with oil production.
The policy research institute found federal and provincial governments provided $2.84 billion to support oil production in Alberta, Saskatchewan and Newfoundland that year.
Ottawa gave $1.38 billion in funds, while Alberta gave $1.05 billion; Saskatchewan $327 billion and Newfoundland $83 million. Researchers found 63 separate subsidy programs, meant to increase exploration and development through tax breaks and royalty reductions.
The report identified where oil producers receive a financial benefit not available to other industries in Canada and used the World Trade Organization's definition of subsidy to determine programs to highlight.
But the Canadian Association of Petroleum Producers defends the injection of cash.
"In fact, the programs available to our industry are similar as those in other sectors in Canada and worldwide," said Janet Annesley, a spokesman for the Calgary-based lobby group.
Original Article
Source: thesudburystar.com
Author: MICHEL MUNGER
The International Institute for Sustainable Development is also predicting the subsidies will more than double as a share of government expenditures in 2020, along with oil production.
The policy research institute found federal and provincial governments provided $2.84 billion to support oil production in Alberta, Saskatchewan and Newfoundland that year.
Ottawa gave $1.38 billion in funds, while Alberta gave $1.05 billion; Saskatchewan $327 billion and Newfoundland $83 million. Researchers found 63 separate subsidy programs, meant to increase exploration and development through tax breaks and royalty reductions.
The report identified where oil producers receive a financial benefit not available to other industries in Canada and used the World Trade Organization's definition of subsidy to determine programs to highlight.
But the Canadian Association of Petroleum Producers defends the injection of cash.
"In fact, the programs available to our industry are similar as those in other sectors in Canada and worldwide," said Janet Annesley, a spokesman for the Calgary-based lobby group.
Original Article
Source: thesudburystar.com
Author: MICHEL MUNGER
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