Post by Retrovision on Dec 14, 2006 6:01:51 GMT -8
( From: www.vicnews.com/portals-code/list.cgi?paper=36&cat=23&id=792501&more= )
MP wants tax changes on imported ships
By Mark Browne
Esquimalt News
Dec 13 2006
The 25 per cent import tax on foreign-made ships should support Canadian shipbuilders, says Keith Martin.
Martin, the Liberal MP for Esquimalt-Juan de Fuca, voiced his opinions after BC Ferries announced it had failed in its bid to have the federal government waive the import tax on the Sonia, the vessel due to replace the sunken ferry Queen of the North.
Martin envisions a fund of monetary contributions from shipbuilding companies as redirected funds from the current 25 per cent import tax, all to go to support and expand Canadian shipbuilding capacity.
“At least this would enable us to help modernize our shipbuilding infrastructure and be internationally competitive.” he said.
BC Ferries had to pay an import tax of $17 million when it purchased the Sonia, which is slated to arrive at Victoria Shipyards in Esquimalt where it will be converted into a ferry.
NDP MLA Maurine Karagianis blames the problem of having to pay the tax on the fact that the B.C. Liberal government decided to change BC Ferries from a Crown corporation to a private company (albeit owned by the provincial government).
“If BC Ferries wasn’t this fake, privatized model we wouldn’t have had to pay any kind of duty,” Karagianis said.
As BC Ferries will order new vessels to replace aging ferries in its fleet, taxpayers will pay millions of dollars in import taxes on top of money to build the ships, she said. She also said that Martin will have little chance of influencing the Conservative government from his Opposition seat.
Ideally, it would make sense to modernize the industry so it is geared toward building medium-size ships, Martin said, adding the shipbuilding and ship-repair industry that operates out of the Esquimalt Graving Dock is well-suited for such work.
“We have extraordinary shipbuilders in Canada and this could be a niche that would be a huge generator, particularly for Esquimalt.”
BC Ferries, he noted, will need at least 12 new vessels in the coming years and the Canadian navy will need new ships as time passes.
Modernizing the industry would help create jobs for shipyard workers without relying on taxpayer money, he said. The federal government and shipbuilding companies would apply to be partners in the fund, Martin explained, with industry matching federal government contributions.
Money couldn’t be used for companies to build ships at a cheaper price than competitors not involved with the fund as that would be illegal, he said. Instead, the money would be used for infrastructure in such areas as building or expanding shipyards.
The plan would also ensure that there would be effective long-term financial investments, which would strengthen the industry.
© Copyright 2006 Victoria News
MP wants tax changes on imported ships
By Mark Browne
Esquimalt News
Dec 13 2006
The 25 per cent import tax on foreign-made ships should support Canadian shipbuilders, says Keith Martin.
Martin, the Liberal MP for Esquimalt-Juan de Fuca, voiced his opinions after BC Ferries announced it had failed in its bid to have the federal government waive the import tax on the Sonia, the vessel due to replace the sunken ferry Queen of the North.
Martin envisions a fund of monetary contributions from shipbuilding companies as redirected funds from the current 25 per cent import tax, all to go to support and expand Canadian shipbuilding capacity.
“At least this would enable us to help modernize our shipbuilding infrastructure and be internationally competitive.” he said.
BC Ferries had to pay an import tax of $17 million when it purchased the Sonia, which is slated to arrive at Victoria Shipyards in Esquimalt where it will be converted into a ferry.
NDP MLA Maurine Karagianis blames the problem of having to pay the tax on the fact that the B.C. Liberal government decided to change BC Ferries from a Crown corporation to a private company (albeit owned by the provincial government).
“If BC Ferries wasn’t this fake, privatized model we wouldn’t have had to pay any kind of duty,” Karagianis said.
As BC Ferries will order new vessels to replace aging ferries in its fleet, taxpayers will pay millions of dollars in import taxes on top of money to build the ships, she said. She also said that Martin will have little chance of influencing the Conservative government from his Opposition seat.
Ideally, it would make sense to modernize the industry so it is geared toward building medium-size ships, Martin said, adding the shipbuilding and ship-repair industry that operates out of the Esquimalt Graving Dock is well-suited for such work.
“We have extraordinary shipbuilders in Canada and this could be a niche that would be a huge generator, particularly for Esquimalt.”
BC Ferries, he noted, will need at least 12 new vessels in the coming years and the Canadian navy will need new ships as time passes.
Modernizing the industry would help create jobs for shipyard workers without relying on taxpayer money, he said. The federal government and shipbuilding companies would apply to be partners in the fund, Martin explained, with industry matching federal government contributions.
Money couldn’t be used for companies to build ships at a cheaper price than competitors not involved with the fund as that would be illegal, he said. Instead, the money would be used for infrastructure in such areas as building or expanding shipyards.
The plan would also ensure that there would be effective long-term financial investments, which would strengthen the industry.
© Copyright 2006 Victoria News
