For a price

While I disagree with Barrie McKenna's fervent anti-government beliefs, he's absolutely right in recognizing what Brad Wall's potash posturing is actually all about:

What Mr. Wall is really doing is attempting to extract the maximum price from a foreign purchaser he doesn’t particularly trust. Call it extortion, if you like.

Current tax rules would allow BHP to write off the capital cost of developing its Saskatchewan mine project – Jansen Lake – as well as the borrowing costs of the takeover. That represents a potential drain of up to $3-billion from its coffers, according to Saskatchewan.

The two sides aren’t that far apart. BHP says it’s willing to forsake the writeoffs and keep the province revenue neutral to get the takeover approved. It’s also offered to pump nearly $400-million into infrastructure projects in the province.

Mr. Wall, however, wants some of the future tax revenue as cash up front, something BHP is so far unwilling to do.

But don’t be distracted. This isn’t about blocking a foreign takeover. It’s about allowing one – at a price.