Monday, May 09, 2016
Panama Papers - Familiar Names, to Athabasca
They're almost household names in Canada - Enbridge, Husky, Encana - and there's some lesser known outfits such as Alberta Oil Sands Inc. and Great Harvest Oil Sands Investment Company. What they have in common is that they're all listed in the Panama Papers.
The bad news is that their Panamanian investment deals are private, none of our business. The good news is that they're so dependent on the public teat, regulatory cooperation and such that it becomes our business, the federal government's business, Junior Justin's business.
Who knows? This could be the start of something beautiful.
Update:
According to the National Observer, it's all a case of mistaken identity. Enbridge isn't that Enbridge, Husky isn't that Husky, Encana isn't that Encana. Alberta Oilsands Inc. isn't that Alberta Oilsands Inc. either. It's all a matter of mistaken identity or identity theft or something. How do we know? Because the companies said so. I guess that's good enough for me.
These are all receivers of government largesse in the way of subsidies, are they?
ReplyDeleteGovernment largesse of regulated industries can come in any number of forms, direct subsidies just one. Grants of licences, exemptions, deferrals, access to government assets and services at preferential rates or free, are among others. Our government counts the cheques and comes up with a figure sub 3-billion. The IMF takes an inclusive approach and finds the entire basket of subsidies and benefits to be $34-billion. When the industry receives that kind of value from government it can be required to meet a few conditions, don't you think?
ReplyDeleteNo surprise there. The US set up Panama for two purposes:
ReplyDelete1. To build a canal, and
2. To launder earnings for the oil and gas companies.
[B]asically Panama, and hence Panamanian companies, were set up initially to register oil tankers and mineral ships in order to give the appearance of taking all of their profits on the transporting the oil, or the copper or other minerals, from third world countries to the United States and Europe.
The United States went along with this. This made the oil industry tax exempt really since the 1920s. When the income tax was created in 1913 or 14, it was intended to capture economic rents. But the big rent extractors, oil and gas and minerals, got away with avoidance.
Anyong said.....What can be said about this can be expressed in one sentence. They all need to be made to take a course in how the world feeds us.
ReplyDeleteAnyong said....or go to jail.
ReplyDelete