Monday, February 28, 2011

NDP's new direction would hurt province

NDP's new direction would hurt province

Why not hike potash royalties? Noting that PotashCorp made $1.8 billion in profits in 2010 but paid only $77 million in royalties, Lingenfelter said an NDP government would ensure "Saskatchewan families received the maximum benefit'' from the sale of their resources.

First of all, the $77-million figure is "disingenuous'' and Lingenfelter knows it. A closer examination of PotashCorp's 2010 financial statements indicates the corporation reported $3.4 billion in "cost of goods sold" (which includes base royalties) and $642.8 million in income taxes (which include provincial corporate income taxes).

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