OTTAWA - The Canadian government will devote some of the proceeds from its sale of its 19 percent stake in oil company Petro-Canada (PCA.TO: Quote, Profile, Research) to develop environmental technologies, Finance Minister Ralph Goodale said.
"Based on the best independent expert advice, we believe now is the right time to follow through on the announcement we made in budget 2004 that we intend to sell our remaining shares in Petro-Canada," Goodale said in a statement.
"Part of the proceeds from this sale will be used to help develop new technologies to address environmental challenges."
The March budget pledged that reflecting the sale of Petro-Canada shares, Ottawa would boost spending on new environmental technologies by C$1 billion ($775 million).
It elaborated that over the two fiscal years that started on April 1 it would spend C$200 million in new money on the Sustainable Development Technology Canada foundation - which addresses climate change and air quality - and C$800 million on environmental technologies over the subsequent five years as opportunities arose.
The budget cited as possible examples investments in fuel-efficient or alternative-fuel vehicles or developing clean coal technologies, or renewable energy and cellulose ethanol technologies.
A government spokesman said the budget had booked net revenues of C$2 billion from the sale - net of commissions and the original cost of purchasing the stake. As of the market close on Thursday the 49.39 million government shares were worth C$3.04 billion.
REUTERS NEWS SERVICE
