I'll move forward, and I apologize for talking so much.
I want to draw attention, if I may, to the cost of flow-through in Canada, as shown in slide number eight. We had commissioned for the late Honourable Jim Flaherty in 2015, when he was minister of finance, a report by Deloitte to try to quantify a flow-through regime in terms of its cost to the treasury. We went through a couple of exercises, but we engaged Deloitte because they were auditors to many of the drill contractors.
If we turn over to slide nine, I'll give you the breakdown on the table itself. On the one hand, we looked at the reduction in taxes from the flow-through regime and came up with $280 per thousand dollars invested in flow-through. Add to that another $140 under a super flow-through program, the METC, but then the credits against that were the inclusions from the following year, the capital gains payable on disposition, and then the opportunity costs for those issuers, who will then go on to be profitable and no longer have access to those deductions.
That was an easy formula, $203, and it's easily replicable.
The other side of the ledger, though, was a little more challenging. We went to first principles and basically looked at what the inclusions were, what revenue was generated from the flow-through program. We limited our scope—Deloitte did—to the drill campaigns and the drill contractors, and they said, “Look, 31% of the money going to a drill contractor is paid in salaries, major salaries in the North.”
The companies themselves have, of course, their own income tax rate, and then you've got the look-back rule, so they recapture about $88. The basic take-away is that every thousand dollars that flowed through is costing the federal treasury about $115 net. That's a fairly conservative assumption. That report is certainly available for review.
In conclusion, on the last slide, I think we had a little wind in our sails over the last year. We are grateful for the support from Ottawa for the flow-through regime and would like to see it continue. The costs are modest, but the impact of a discovery is quite significant in terms of jobs, infrastructure, tax revenue, and prosperity in the north. It's one of the features of our system that makes us competitive on a global scale.
Thank you very much for your time.