	canada sets oil industry aid package canada s federal government will provide a mln dlr oil industry aid package that includes cash incentives designed to cover one third of a company s oil and gas exploration and development costs energy minister marcel masse announced the aid program will inject about mln dlrs a year into the oil and gas industry and could lead to more than one billion dlrs in new investment masse told a news conference the program will affect drilling done anywhere in canada on or after april masse told reporters that the government s oil industry aid package is aimed at small and medium sized companies the aid package called the canadian exploration and development incentive program will restrict the total payments that any individual company can claim to mln dlrs a year masse said the program will probably generate new employment equivalent to people working for a year he said oil industry aid is needed because exploration and development spending dropped by at least pct since world oil prices fell during the first half of energy minister masse said the federal government decided to provide cash incentives so a large number of non tax paying companies mainly small canadian firms will receive the full value of the incentive such companies would not immediately benefit from tax benefits he said the federal government also wanted to deliver an aid program outside the tax system finance minister michael wilson is now reviewing canada s tax system and plans to announce tax reform proposals later this spring an important feature of the aid program is a decision to let companies issue flow through shares allowing investors to benefit from the subsidy rather than restricting benefits to only participating companies he said allowing flow through shares under the program will make it easier for companies to attract investors in exploration and development masse said he told reporters his department is still considering whether to allow partnerships and other entities to qualify for the subsidy reuter 
