Editorial Vander Zalm can add substance to style

The Social Credit party in British Columbia scored a resounding vict ory in the recent provincial election, which bodes well for the province’s mining industry. Unlike his predecessor, Premier William Van der Zalm has recognized the importance of B.C.’s second largest industry and the role it can play in creating jobs — something which should be a Number One priority.

Shortly before the election, Mr Van der Zalm asked the industry to form a task force to review its competitive position, which was welcomed. The industry has the supporting data to present a strong case and, indeed, has done so in the past, albeit with generally negative results. This time, hopefully, things will be different.

Tony Petrina, chairman of the Mining Association of B.C., cites a recent Price Waterhouse report which emphasized the need for a major overhaul of the financial and investment climate for the mineral industry in B.C. On a national scale, studies show that B.C. mines are the highest taxed and this will simply have to change if new mines are to be developed in the province.

The government has to bring its mineral policies in line with the international economic realities of the 1980s. Overseas competitors have the advantage of devalued currencies, more accessible markets and flexible government policies which allow them to react quickly to changing economic conditions.

Exploration is vitally important to the well-being of any province’s mining industry and B.C. has certainly come out the loser on this score. Money raised on the Vancouver Stock Exchange has led to the discovery of several large gold producers, but these are mostly in Ontario and Quebe c.

More than $500 million will be raised on the VSE this year and the government should be providing some incentive to keep more of that money in the province. Increasing the writeoff on flow-through shares would help, possibly to a level between Ontario’s and Quebec’s. A doubling of the prospectors’ grant would also lead to more grass-roots exploration and attract additional capital.

Premier Van der Zalm has an opportunity to move decisively to improve the situation in B.C.’s mining industry and help the people who work in it. His emphasis on “style” during the recent election campaign must give way to “substance” on a number of important economic issues confronting the province. Mining is one of them.