Miners give Ontario budget thumbs up

Tax cuts, government spending and investment could herald a good year for the province’s mining industry in light of Ontario’s 2008 budget.

The budget, tabled in late March, showed an increase in government spending on mining exploration — including $7 million to be used over four years for a mineral development strategy. The $7 million will also go towards “modernizing” the Mining Act.

“Mining has been one of Ontario’s recent success stories,” Ontario Finance Minister Dwight Duncan said. “To encourage further growth, the government will invest $20 million for geological mapping.”

In addition to increased spending on geological development, the government also plans to support aboriginal peoples on and off reserves, by increasing economic development opportunities. The Ontario government has allotted $600 million in spending annually to develop initiatives aimed at enhancing the lives of aboriginal people.

The government also plans to invest $1.5 billion over three years for the Skills to Jobs action plan. With the mining industry projecting demand for 92,000 new skilled and educated workers over the next 10 years, this spending will help provide the skills necessary.

Of the money to be used for skills development, $355 million will go towards programs including the second career strategy, a commitment to expand apprenticeship programs, a textbook and technology grant and a distance grant to cover travel costs.

The budget also includes a proposal for $750 million in tax relief, over four years, for business. Of this $750 million, $190 million has been allotted for rebates for resource and manufacturing companies. This includes the elimination of the capital tax.

The finance minister also announced rate cuts for northern businesses in the Business Education Tax rate and an extension of the pre-existing capital cost allowance rate for processing machinery and equipment investment.

Duncan also mentioned plans to modernize Ontario’s regulations.

“Ontario’s goal is to lead all Canadian jurisdictions in efforts to measure and reduce the regulatory burden,” the finance minister declared. “Ontario’s regulatory modernization will start with an aggressive cap-and-trade initiative for government regulations so that when new regulations are enacted, others must be eliminated.”

The Ontario Mining Association was pleased to see the funding that will both directly and indirectly aid the mining industry and help promote competition.

“This balanced budget, which contains no tax increases along with strong recognition of the mining industry’s contributions in the province, is welcomed,” OMA President Chris Hodgson said in a statement. “The budget’s investments in geoscience and skills enhancement are commitments by the government to the future success of mining in Ontario.”