CPABC in Focus November/December 2014 | Page 15

Operators in the resource sector also generate municipal, provincial, and federal government revenues in the form of royalties and via corporate taxes, property taxes, and the personal income taxes paid by their employees.8 These government revenues are used to build infrastructure and support a myriad of social and health-care programs, bettering the quality of life of all British Columbians. The BC government’s most recent budget predicts a small fiscal surplus over the next two years, to be achieved through a combination of reduced spending and higher taxes (e.g., tobacco and MSP premiums); but this prediction does not take into account the significant future royalties and corporate taxes that would be paid if at least one of the proposed LNG projects were to go ahead. The provincial government forecasts that royalties from the new LNG industry could amount to more than $100 billion over the next 30 years9; these new revenues would put the provincial budget well into the black and help support the growing costs of health care and education. Advances in technology Although the resource sector’s effect on BC’s technology industry is difficult to quantify, it has been profound. Out of necessity, resource operators worldwide have rapidly adapted new technologies to harvest or extract, transport, and add value to their commodities more efficiently and costeffectively. This has spawned a new generation of BC-based technology providers who tailor their products for resource applications. Advanced technology is being used in all stages of operations in agriculture; sawmilling; mining, and oil and gas; and energy production. Here are a few examples: •  ew extraction and processing technologies in the mining industry have had a direct N impact on BC’s gold production, which has tripled since 1980.10 •  rough the use of software optimization systems, sawmills are able to make better Th decisions regarding operations and capital investment. •  atural gas producers combine hydraulic fracturing (“fracking”) with horizontal drilling to N access unconventional gas deposits in shale, producing affordable and reliable quantities of natural gas. However, there is growing public concern about the associated environmental effects on groundwater. •  armers now use computer monitors and GPS locators to make tractors more efficient and F to be less wasteful in their use of seed, fertilizer, and fuel. By continually investing in new technology and by refining the production and transportation chain throughout BC and Canada, resource operators are able to stay competitive and are better able to process and transport raw materials. In addition to improving competitiveness, resource operators are also using new technology to address another key concern: environmental protection and mitigation. With the advent of tighter government regulations pertaining to environmental and social impacts and with a corporate trend towards more accountability and transparency, the resource sector is one of the biggest users and implementers of environmental technology. Numerous clean technology (cleantech) companies have been developed in BC with the goal of helping clients reduce their environmental  his is not a complete list of taxes paid by companies and employees. T 8  C Government, “How will LNG provide a prosperous future for B.C.?” (http://engage.gov.bc.ca/lnginbc/b-c-s-lng-story). Accessed June 2014. B 9  Technology Industry Association, BC’s Advanced Technology Sector: Reaching for the Next Level (prepared for the Business Council of BC’s BC 10 Outlook 2020 initiative), March 2009. CPABC in Focus • Nov/Dec 2014  15