LNG processing and tanker loading facility proposed by consortium led by PETRONAS at Lelu Island

LNG processing and tanker loading facility proposed by consortium led by PETRONAS at Lelu Island

Federal tax credits target LNG investment (with VIDEO)

Prime Minister Stephen Harper sweetens the pot for LNG investors with investment credits similar to B.C. system

The federal government is offering tax breaks for equipment and buildings for liquefied natural gas production.

Prime Minister Stephen Harper announced the tax breaks in Surrey Thursday with Industry Minister James Moore and three B.C. MPs.

LNG producers will be granted capital cost allowances of 30 per cent on equipment and 10 per cent on buildings, which reduce their income tax to offset construction costs. The standard rate for capital cost allowance is eight per cent for equipment and six per cent for buildings.

B.C. took a similar approach with its LNG income tax, offering credits on corporate income tax until initial plant investments are paid off.

Premier Christy Clark welcomed the federal move, which she said B.C. has lobbied hard to get as international producers have delayed final investment decisions. She said the drop in oil prices has made the decision more difficult for big companies that get part of their revenue from oil, but B.C. is competitive on LNG.

“We’re already more competitive than Australia,” Clark said. “Our real main competition in the world is the U.S. and the west coast of North America.”

NDP natural gas critic Bruce Ralston said the front-end tax credits are the right approach to take, but the federal tax break doesn’t change the economic conditions for B.C. trying to enter a global energy market.

“Our objections are the same,” Ralston said. “If LNG proponents want, as one proponent did, 70 per cent temporary foreign workers, and 70 per cent of the [greenhouse gas] emissions are not being counted, then we don’t support the plan.”

David Keane, president of the BC LNG Alliance, said the federal decision is encouraging and the industry continues to work with First Nations and other local governments to develop.

Just Posted

Saanich Volunteer Services Society volunteers head out to deliver this week’s meals to local seniors. (Megan Atkins-Baker/News Staff)
VIDEO: Weekly meal deliveries help brighten the day for Saanich seniors

Seniors are delivered nutritional meals by a group of volunteers every Wednesday

O.K. Industries is building a quarry next to Capital Regional District land, as shown in this map from the rezoning applicaiton. (Photo courtesy District of Highlands)
Millstream Quarry wins again in court against Highlands community’s appeal

Judges rule province not obligated to investigate climate change before issuing permit

Kidspace, which took over the YMCA-YWCA childcare centre at Eagle Creek Village, plans to reopen the Y’s fitness centre as the Eagle Creek Athletic Club in September. (Photo courtesy of Kidpsace)
Former Y fitness centre in View Royal aims to reopen in September

Kidspace taking over both the gym and the childcare facility at Eagle Creek Village

Tyson Muzzillo, regional manager of BC Cannabis Store, welcomes shoppers to their Uptown location, opening on June 16. (Megan Atkins-Baker/News Staff)
Government-run cannabis store opening at Saanich’s Uptown

BC Cannabis Store the first for government in Greater Victoria, 27th in province

Mural artist Paul Archer will soon begin work on a piece on the rear of a building at 100 Burnside Road West. (Gorge Tillicum Community Association)
Back of Burnside building in Saanich to feature mural of hope and positivity

Artist Paul Archer says subject will inspire memories, depict children’s future, sunshine, flowers

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

Cowichan Tribes man Adrian Sylvester is worried that he was targetted by a trailer hitch thrown from a vehicle. (Facebook photo)
Cowichan Tribes man worried he was target of trailer hitch

Adrian Sylvester says no one has reported a missing hitch after one nearly hit him

Graeme Roberts, who was mayor of Nanaimo from 1984-86, died this month at age 89. (Photo courtesy Nanaimo Community Archives)
City of Nanaimo flags at half-mast as former mayor Graeme Roberts dies at 89

‘Giant-killer’ beat out Frank Ney in mayoral election in 1984

Most Read