Forum on Mining Royalties: the government needs to maintain a stable, predictable and competitive royalty regime
Montréal, March 14, 2013 – On the eve of the Government of Québec’s Forum on Mining Royalties, the Board of Trade of Metropolitan Montreal reiterates the essential importance of the responsible, durable and intelligent development of natural resources for the city. We encourage the government to act prudently to avoid discouraging the many investments expected in the coming years.
“Recent studies conducted by the Board of Trade put the potential spinoffs from natural resource exploitation for the metropolitan area at $52 billion over 25 years,” said Michel Leblanc, president and CEO of the Board of Trade of Metropolitan Montreal. “Over 14,000 jobs per year will be maintained or created in the city during this period. Québec and Montréal are not in a position to allow a slowdown in investments, which would impoverish us as a society and restrict job creation.”
“Québec has important assets for benefiting from natural resource development, in particular in the mining sector,” Mr. Leblanc said. “But mining companies are facing rising exploitation costs, and our deposits are a long way from the major users, located mainly in Asia, which increases the cost of transport. Mining companies are attracted to Québec because we have ore. But they are also attracted by our qualified labour and our stable tax system. Any change could slow current projects and discourage future investment.”
“The discussion surrounding the royalty regime must be based on facts, not myths,” Michel Leblanc said. “Our mining companies make a significant contribution to the Québec tax base, whether through income tax, payroll tax or the industrial ecosystem that surrounds these companies. As a society, we must be aware of the industry’s importance for our economic and social development. The government must acknowledge its importance by maintaining a stable, predictable and competitive royalty regime.”
The Board of Trade of Metropolitan Montreal is made up of some 7,000 members. Its mission is to represent the interests of the business community of Greater Montréal and to provide individuals, merchants, and local businesses of all sizes with a variety of specialized services to help them achieve their full potential in terms of innovation, productivity, and competitiveness. The Board of Trade is Quebec's leading private economic development organization.
Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Tel.: 514 871-4000, ext. 4015
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