THE EDITORIAL PAGE The winds of flow-through

Amid the recent speculation and fears expressed by many in the ind ustry that flow-through financing may be scrapped or revamped by Finance Minister Michael Wilson in the next federal budget, comes a voice of optimism.

David R. James, analyst with Richardson Greenshields of Canada, writes in a research report dated Nov 19 that “the system will likely survive for at least another one or two years.” However, Mr James does warn that flow-through may not escape Mr Wilson’s hands unscathed. “Some changes might be expected,” says the analyst.

The “numerous discoveries attributable to flow-through financing and the attendant employment levels created” is the reason why the system will survive, writes Mr James. He points out that in 1986 the estimated flow-through share exploration funding comes in at $450 million to $500 million. In 1985 that figure stood at $260 million, he notes.

While in the same report but on another subject, Mr James does point out that he is from Manitoba where after the worst blizzard in 20 years, he is keeping an open mind on how the wind blows.