History lessons

"In this period of improved metal prices and reported profits, valuable lessons should be recalled from the 1970s when a similar cycle lured the federal and provincial governments into thinking that they could grab bigger pieces of the pie without harming the minerals industry. It took years for the industry to recover from the damage inflicted by that unprecedented scramble for higher tax revenues. It is hoped that the current policy makers will have learned from the lessons of the seventies, and will realize that mining companies need to keep a reasonable share of profits realized during the good years in order to prepare for the inevitable downturn in the cycle.INTRODUCTION"", «. We have made clear to industry that super profits... will no longer be tolerated "".With that assertion, the Honourable David Barrett , Premier and Minister of Finance of the Province of British Columbia, announced the introduction of a new mining tax regime in his February 17, 1974 bud get papers . British Columbia producers would face a basic royalty and a royalty on so-called ""super profits"", resulting in some instances in tax rates exceeding 100070 of pre-tax profits.The ball started to roll. Mining tax changes knew no political or geo graphical boundary. On April 9, 1974, Ontario's Treasurer John White stated in his budget speech:""Increased demand by major industrialized countries has resulted in sharply higher metals prices and substantial wind fall gains for the mining industry in Ontario. With the prospective demand for minerals likely to sustain current price trends into the future, it is only fair that we secure for the people a higher return from our natural resources""."