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