Miles, Mutants and Microbes - Lois McMaster Bujold [42]
Apmad, refereeing the scrimmage, was another type altogether. Dumpy, on the high end of middle age, frizzy gray hair cut short, she might have been somebody's grandmother, but for her eyes. She made no attempt to dress for success. As if she already possessed so much power, she was beyond that game. So far from regulating tempers, her laconic comments had served to stir the pot, as if she was curious what might float to the top. Definitely not a grandmother's eyes.
Leo was still close to a boil himself. "The project is twenty-five years old. Time can't be that much of the essence."
"God almighty," cried Van Atta, "am I the only man here conscious of what the bottom line means?"
"Bottom line?" said Leo. "GalacTech is closer to its payoff from the Cay Project than ever before. To screw things up now with an impatient, premature attempt to wring profits is practically criminal. You're on the verge of the first real results."
"Not really," observed Apmad coolly. "Your first group of fifty workers is merely a token. It will take another ten years to bring the whole thousand online." Cool, yes; but Leo read a fierce concealed tension in her the source of which he could not yet identify.
"So, call it a tax loss. You can't tell me this," Leo waved a hand toward the window, indicating Rodeo, "can't use a tax loss or two."
Apmad rolled her eyes at the man who stood silently at her shoulder. "Tell this young man the facts of life, Gavin."
Gavin was a big rumpled goon with a broken nose whom Leo had taken at first for some kind of bodyguard. He was in fact the Ops VP's chief accountant, and when he spoke it was with startlingly precise and elegant elocution, in impressive rounded paragraphs.
"GalacTech had been offsetting the Cay Project's very considerable losses with Rodeo's paper profits since its inception. I'd better recapitulate a little history for you, Mr. Graf." Gavin scratched his nose thoughtfully.
"GalacTech holds Rodeo on a ninety-nine-year lease with the government of Orient IV. The original terms of the lease were extremely favorable to us, since Rodeo's unique mineral and petrochemical resources were at that time still undiscovered. And so they remained for the first thirty years of the lease.
"The next thirty years saw an enormous investment of materials and labor on the part of GalacTech to develop Rodeo's resources. Of course," he prodded the air with a didactic finger, "as soon as Orient IV began to see our profit passing through their wormhole nexus, they began to regret the terms of the lease, and to seek a larger cut of the action. Rodeo was chosen as the site for the Cay Project in the first place in part, besides certain unique legal advantages, precisely so that its projected expenses could be charged against Rodeo's profits generally, and reduce the, er, unhealthy excitement said profits were generating on Orient IV.
"GalacTech's lease of Rodeo now has some fourteen years left to run, and the government of Orient IV is getting, ah, how shall I put this, infected with anticipatory greed. They've just changed their tax laws, and from the end of this fiscal year they propose to tax the company's Rodeo operation upon gross not net profit. We lobbied against it, but we failed. Damn provincials," he added reflectively.
"So. After the end of this fiscal year, the Cay Project losses can no longer be offset against Orient IV tax savings; they will be real, and passed through to us. The terms of the new lease at the end of the next fourteen years are not expected to be favorable. In fact, we project Orient IV is preparing to drive GalacTech out and take over its Rodeo operations at a fraction of their real worth. Expropriation by any other name doth smell the same. The economic blockade is already beginning. The time to start limiting further investment and maximizing profit is now."
"In other words," said Apmad, a hard, angry glitter in her eyes, "let them take over a hollow shell."
Could be hard on the last guys out, Leo thought, chilled. Didn't those