GUEST COLUMN — Diamond drillers need support

The Canadian diamond drilling industry has installed itself as a world leader, but this position is being threatened by the country’s economic malaise and government policies. Statistical drilling data show a 1987-1991 decline in drilling footages of 66.25%, with current 1992 data indicating stagnation for the remainder of 1992 at 1991 levels.

The peak years of 1987-88 not only produced high Canadian footage drilled, but resulted in the country’s unparalleled economic growth with some increases in ore deposits being found and mined. This growth generated high employment and increased tax dollar revenue.

The years 1990-92 not only saw drastically reduced national drilling footages, but a disastrous return on invested dollars. The Canadian diamond drilling industry, presently, is drilling below the cost per foot charged in 1983. The return is roughly a 300% drop in revenue for the industry. This percentage can be attributed to the inflation rate over the years as well as a decline in investor confidence in Canada. Many small contractors are getting out of the drilling business and major players are trimming their workforces down to the bone.

The Canadian diamond drilling industry has met and surpassed the challenges of the 1980s. Northern College, Haileybury, in conjunction with the Canadian Diamond Drilling Association and the Haileybury School of Mines, established in the mid-1970s a diamond drill school to meet the employment challenges of the future. First Nations people and other Canadians have taken the 20-week training course and were, until recent years, gainfully employed in the industry.

The industry sets its own health and safety standards and guidelines which build on the legislative provincial requirements.

The economic stability of the diamond drilling industry is directly linked to the natural resource industry. Without investor confidence, the mining sector will continue to seek greener pastures outside Canada. Unless this confidence is restored quickly, the employment sector will continue to bear the brunt of this demise.

Our political bureaucracy and leadership continue to request industry input relative to the demise of our resource base sector but refuse to implement any of the suggestions brought forward during these meetings. The introduction of flow-through and the subsequent Canadian Exploration Incentive Program (CEIP) generated millions of dollars to the federal coffers, through increased employment and some new discoveries. The mining industry needs something similar to flow-through to encourage investment but with stringent controls to ensure that these investments are translated into business growth rather than short-term stock market profits. Canada has a natural resource-based economy, and it is the development of these resources that creates new wealth.

What we are lacking are population; governments with enough foresight to lead our country into the next century; and secondary and tertiary industries based on local natural resources.

It is time that our elected leaders make decisions geared to Canada’s overall well-being and pay less attention to well funded vocal minority groups. We are recommending the following:

— Federal and provincial governments should work with mining companies and any other concerned parties to streamline the issuing of any permits through one office or agency.

— Restrictive land use should be immediately addressed to enable exploration for new resources to continue for future generations.

— The diamond drilling industry is fully in accord with federal environmental protectionism; however, we believe that the protection of our environment and the harvesting of our natural resources can and should be in harmony. Our political leaders should address needs of the mining sector and stimulate continued exploration.

— A variety of tax incentives for the mining sector could be implemented to immediately stimulate investor confidence.

All levels of government are well informed on the needs and requirements to strengthen our industry. What is desperately needed now is action — not more consultation, commissions or studies.

— Richard Niels is the secretary-manager of the Canadian Diamond Drilling Association.