Monday, January 14, 2008

Sitting on the dock of the bay

I am about to head north by northwest to visit Ontario's first diamond mine.

It is a balmy -10 in Timmins and -29 at the site. Lovely.

Does anyone care that McGuinty increased the royalty rate on diamonds?

No, probably not.

However, the project has been delayed by 6 months or so and it means that none of the projected revenue in the budget is forthcoming in the current fiscal year and did nothing to contribute to the 3 Billion surplus that was quckly spent on tax breaks.

Which begs the question: Why was this royalty increase needed, or warranted before one single diamond was pulled out of the ground?

Evidently, word on the street (or at least at the Tim Horton's) in Timmins is that there are larger, better deposits out there, but the royalty increase is a disincentive to invest at this time.

So we, the taxpayers of Ontario, can expect this increase to geneate $0.00 in new revenue.

On that note, I will be roughing it this week without blackberry or internet access, so no posts from me this week (I can hear B-double smirking now).


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