Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 13, 1974, Winnipeg, Manitoba Winnipeg free press thursday. 13, 1974 crude of tax rigmarole attacked by Birtle la the a Bill that would raise provincial Tux take on crude Oil produced in Manitoba passed second Reading approval in principle on a voice vote in the legislature wednesday. It is Bill 85, proposed Amend ments to the Mineral taxation act which would provide the province with about million of extra annual Revenue with which to Cushion rising Gaso line costs cushions such As tie two cent a gallon reduction in the provincial gasoline tax proposed in another Bill before the legislature. The new tax would be imposed on the Price Manitoba Oil producers receive at the Well head leaving about 95 cents of the recent Price increase to marginal Wells producing five barrels a Day and 112 cents of the increase to 20 barrel a Day Wells resources minister Sidney Green said. Tax on Freehold Oil leases now eight Mills would be in creased by from 93 to 238 Mills and the present 12 a per cent Royalty on Oil leases on Crown land would be increased to give the same provincial tax yield As the new Freehold tax. Under Bill 85, these in creases in tax take would be retroactive to april 1 the Date on which the Well head Price Rise of crude Oil occurred in Canada when by Federal provincial agreement the Price of Domestic crude was Al Lowed to Rise to a barrel. Harry Graham pc Birtle speaking just before the Bill received second read ing said that since the govern ment s real objective in All this tax rigmarole is reduction of Oil production to conserve Energy resources it should just come out and say so. Instead of Over taxing the producers the government should instead set production quotes to conserve Manitoba s Fossil fuel resources or. Gra Ham said. He questioned whether the increased Revenue realized from the new taxation system would All accrue to the Mani Toba fuel consumer or if As it appeared the government would give two cents to the consumer and take one cent for itself. It looks tilday like some one is being Short changed either the consumer or the Oil either the Consumers should to realizing u provincial Gas lax reduction of three cents a gallon or. Graham said or the Oil producers Are being Over taxed. Premiered Schryer clearly thinking he was Clos ing debate on Hie Bill wednes Day morning said the tax would add about million to the province s revenues which we did t seek or want but that the government Felt the Windfall should t Benefit exclusively the Oil companies and producers. The incremental tax will be used to Cushion the Impact of rising Oil prices on Manitoba Consumers he said. After the Premier spoke it was ruled he could not have closed debate As the Bill had been introduced by or. Green. The Premier was speaking As acting minister in the portfolio but had not notified the speak or in Advance that his i Leril was to close Debute and other speakers had wanted to con Iri Bulc to the discussion. Or. Schreyer said the. Bill was not ill conceived and com pared to Royalty schedules in Saskatchewan and Alberta ours is hardly procedures in the Bill for Oil producers to follow in closing Down Oil Wells were covered previously by regulation and add no new authority to the government he said. The Federal government is taking to a barrel in taxation on Oil production in its Export tax so the Manitoba share of to is not too much he said. I Don t feel it imposes a hardship on product e r s companies or Freehold Oil profits were about a barrel in the 1960s, and Are now about a barrel and though drilling and pumping costs have increased Oil prices have risen faster in the past flood damage talks set armed with figures on dam age caused by recent flooding in Winnipeg mayor Steve Juba of Winnipeg was to meet thursday with premiered Schryer of Manitoba to Dis uss compensation for victims. In previous discussions be tween the two Levels of govern ment no decision on compensation was reached because there was no reliable Indica Tion of the extent of damage. This time however mayor Juba has the results of a City Survey which indicates homeowners suffered damage of in the torrential Rains May 18 to 20. The mayor estimates the Fig ures compiled in the Survey ought to be multiplied by 2.5, a damage estimate of the urgency and magnitude of losses sustained by our Citi Zens is of considerable concern and beyond the financial capacity of the said mayor Juba in a letter to the Premier. About 60 per cent of the homeowners who replied to the Survey said their carpets were damaged. The breakdown also showed 53 per cent with dam aged furniture 42 per cent with structural damage 33 per cent with damaged furnaces 30 per cent with damaged washers and dryers and 20 per cent with damaged freezers. Damage of Between and was estimated in of the replies while people estimated their damage at More than innocent Enoch London a biography of right Wing conservative Enoch aimed at show ing he in t a racist is being written by an immigrant from India. The author is or. Doo Jan Napal a psychology Lee Lurer. Powell has won head lines for his Tough stand against not White Himl Gratton into Britain. Three years the Premier said. If the. Government wanted to subsidize exploration and Drill ing in the province it would be preferable to do it directly rather than through a reduced royally system to ensure that the subsidy actually went to Ward exploration and drilling lie said. Before the Premier spoke d. M. Mcgregor pc Virden said he was concerned about the effects on the Small Oil pro Ducer who he Felt would be hard hit by the measure. George Minaker pc St. James Sai Uthe had no objection the Manitoban receiving a fair share of the value of re sources extracted but questioned if the government in tended to take Over Oil product lion in the province. After taxation the wind fall would come to 28 cents barrel for a 15-barrel-a-Day producer and a Mere four cents for a producer of 20 or More barrels a Day from a wellhead increase of he said. The tax will bring Oil Ceplo ration to a halt As it is not feasible to produce less than eight barrels a Day or. Mill Aker said. Donald w. Craik pc said by the time he paid the tax the average producer would gain nothing from the Windfall increase in Oil prices. Or. Lloyd Axworthy l fort Rouge said the non producing provinces had been conned by Alberta and Saskatchewan into the higher Oil prices. This tax takes away incentives and so is not a Good tax he said. It does t the proper balance Between a subsidy to the consumer and encouraging resource development in the province he said. New taxes May have Unk Nown results and should have careful consideration in the Public forum or. Axworthy said. He advocated a Specia taxation committee of the legislature be formed to meet Over the summer hear representations and Frame a better sort of lax Law. Ii is danger Ous and Foolhardy to launch Inlo new Texas without study ing the he said ten Robles City sandals 444 padded insoles platform soles colors White White. Sizes 5-9. Weave sandals 277 weave strap uppers. Adjustable ankle strap. Sturdy Low Heel. Sizes 5-9. White. 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