This is why the The Extractive Sector Transparency Measures Act (ESTMA) that requires oil companies and mining companies to report what they pay governments in taxes and royalties is so important.
I am not sure if it is being done on a project by project basis. The oil companies didn't want to report period and were especially concerned about reporting project by project.
Once we know what resource companies are paying and what profit levels they have it will be easier to decide what is a fair royalty rate. We also need to look at what other countries and regions are receiving. According to Guardian article it is low.
It is in our interest as citizens and owners of the resources to know what we are receiving. There has to be a balance between economics and the public good. Especially since the resource will run out and is not sustainable.
Maintaining jobs and economic output is important as we slowly transition away from oil. But there is no reason to give away the resource and not get our fair share for the present and to plan for the future.
I am not sure if it is being done on a project by project basis. The oil companies didn't want to report period and were especially concerned about reporting project by project.
Once we know what resource companies are paying and what profit levels they have it will be easier to decide what is a fair royalty rate. We also need to look at what other countries and regions are receiving. According to Guardian article it is low.
It is in our interest as citizens and owners of the resources to know what we are receiving. There has to be a balance between economics and the public good. Especially since the resource will run out and is not sustainable.
Maintaining jobs and economic output is important as we slowly transition away from oil. But there is no reason to give away the resource and not get our fair share for the present and to plan for the future.
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