ABCtech #38 02MAY15 Alberta Party Leaders on Economic Diversification

ABCtech #38 02MAY15 Alberta Party Leaders on Economic Diversification

By now most of you are aware that the Vision/Mission of the Alberta Council of Technologies Society is “Diversifying Alberta’s economy through technology”. And that with a subscriber base of 15,000+ we advocate for measures that will contribute to enhanced public awareness, industry innovation, and public policy for advancing the commercialization of emerging technologies. Our methods are necessarily collaborative as we receive no industry or government funding for supporting our activities.

The impact of a “crude shock” on the Alberta economy and Tuesday’s election have converged, serving as an opportunity to learn in some detail and compare the positions of each of the 5-Parties contending to lead the province.  Each have expressed support for “economic diversification”, leading us to ask them for more detail, as presented below.  But first, here is a primer on the extraordinary challenges Alberta faces to avoid the impact of crude shocks on: 1) public services and 2) unemployment:

OIL AND GAS ECONOMIES are among the hardest to diversify. (Ahmadov, 2012 – pp. 24-25). Texas, as an exception had access to low-cost labour from Mexico and continues to be a low-wage economy. Alberta salaries are among Canada’s highest; a symptom of an over-concentrated economy and the “Dutch disease”.

MANUFACTURING IS VALUE-ADDED for the owners, but does little for economic diversification or job creation as manufacturing is increasingly mechanized. FOR MORE

PROCESSING OF ALBERTA’S CARBON IS DISRUPTIVE.  Alberta’s markets – often with long term contracts, expect to receive unprocessed carbon in all forms – wheat, meat, fiber, timber, oil and gas, through well-established capital intensive transportation systems.

ECONOMIC DIVERSIFICATION POLICIES vary on the appropriate role for government: Direct intervention – an active industry developer (e.g., oil sands development, gaming and alcohol sales – FOR MORE), Indirect intervention – ecosystem development (e.g., regulatory and tax management including grants – research and advanced education), and No intervention – saving to address unexpected shocks (e.g., Heritage Savings Fund, Norway’s Oil Fund).

ACCOUNTABILITY FOR ECONOMIC DIVERSIFICATION warrants more than just a declaration and a plan.  Measures are warranted for monitoring progress for guiding development and assessing the resilience of the economy to weather volatility in commodity prices.

What do the Alberta Party’s believe? We have posed three questions – requested three times, to each of Alberta’s five Party offices:

“Alberta continues to be vulnerable to crude shocks. Diversification of the economy has been proposed to avoid future shocks.

#1.  What measures would you propose that the Alberta government undertake to diversify the economy and monitor its resilience to future shocks?

#2. Emerging technologies in energy, bioTech and infoTech pose both a disruptive threat and an opportunity for economic development. What should be done to ensure that Alberta benefits from innovation?

#3. What should be done in the interest of economic development with the pending $T inter-generational wealth transfer by baby-boomers?”

Here are the responses we received in the order that they were received:

New Democrat Party – leader, Rachel Notley

Alberta’s NDP will take serious action to ensure that our province is taken off the energy roller coaster. While we have several policies that are aimed at ensuring Alberta’s economy becomes more diverse, robust, and stable, here are a few specific details that we have committed to in order to bolster the economy:

·   Actively promoting value-added processing of natural resources in order to produce products with a more stable price profile and ensure good jobs stay here.

Work to create a job creation tax credit to make sure that entrepreneurs are rewarded for creating jobs here in Alberta.

·   Investing in our colleges, universities, and technical institutes to make sure that Albertans are educated, skilled, and ready to take on the 21st century economy.

More than this, Alberta’s NDP is committed to actively support economic diversification in a range of fields by making sure that the right environment exists for industries like alternative energy, high tech, advanced research, knowledge industries, and other areas are able to thrive in our province.

Alberta’s NDP knows the value of innovation, and is excited by the challenges and opportunities presented by new technology. One of the key ways that we can ensure that Albertans benefit from advances is to encourage and empower innovators by creating a social, economic, and tax environment that allows growth to take place. This may take many forms: ensuring an educated workforce with access to high quality public services, tax re-adjustments and incentives, or market development assistance for up-and-coming businesses.

A core challenge for governments in the coming years will be learning how to provide services to an aging population while ensuring that there are adequate opportunities for young people to excel. Alberta’s NDP is committed to ensuring that our seniors are able to receive the care they need and the services they deserve, but we also understand that we need to make positive investments in our youth so that our economy can continue to grow and remain flexible in an increasingly diverse world. By investing in education, skills-training, and fighting to make life more affordable for young people, Alberta’s NDP is the party with the right priorities as we move forward in this century.

Alberta Party – leader, Greg Clark

The Alberta Party’s plan to diversify the economy is contained in our election platform at   http://www.albertaparty.ca/betterway

 Diversify our economy with market-driven solutions that make it easier to start and grow a business

Invest an additional $100 million in the Alberta Enterprise Fund, an arms-length agency that provides venture capital funds to support Alberta start-ups.

Promote entrepreneurship by gradually phasing out Alberta’s small business tax.

Invest in infrastructure that supports our creative industries and protect arts and cultural funding.

Diversify markets for our agricultural products by working with the federal government to promote them internationally.

Increase support for the development of new value added agricultural products for local and domestic markets.

As a new party, we have not yet been able to develop policy on every specific issue such as inter-generational wealth transfer by baby boomers. We will be reviewing and refining our policies after the election and welcome input by Albertans such as yourself who are interested in and knowledgeable about these issues.

Liberal Party – leader, David Swann

 No response received. Drawn from the Party platform at http://www.albertaliberal.com/2015_platform

Support the introduction of a progressive taxation system in Alberta.

Stop transfers from the Alberta Heritage Savings Trust Fund to General Revenue.

Require that all government contracts over $10,000 be fully and immediately disclosed to the public as open data.

Enhance Alberta’s economic potential through the creation of a Start-up Alberta Fund to support entrepreneurs and their small businesses.

Work with our partners in Confederation to establish a national energy, transportation and utility corridor for the purposes of inter-provincial and international trade.

Work with our partners in Confederation to establish free trade between all Canadian provinces and territories from coast-to-coast-to-coast.

Work with our partners in Confederation to reform the Temporary Foreign Worker program to ensure Canadian jobs are protected, current workers are placed on the pathway to citizenship, and more permanent immigration in Alberta.

Work with our partners in Confederation to remove the burden of Supply Management and eliminate mandatory check-offs for Alberta milk, egg, and poultry producers.

Modernize and liberalize Alberta Gaming and Liquor Commission rules to allow for the creation of a “cafe culture” in municipalities.

Incentivize the expansion of a homegrown small brewing and micro-distillery industry, which encourages domestic production and more choice for consumers.

Incentivize financial institutions to offer low-interest, short-term credit to people who need smaller-size loans.

·   Develop the legal and regulatory framework to create a high speed rail network connecting Edmonton, Red Deer, and Calgary.

Wildrose Alliance Party – leader, Brian Jean

 No response received. Drawn from the Party platform at: http://www.wildrose.ca/

 Long Term Savings Strategy

Invest 50% of budget surpluses into the neglected Heritage Fund and leave interest to compound, growing it to $200 billion in 20 years.

Invest 10% of budget surpluses in 10/10 MSI, and 15% in other regional infrastructure projects like LRT.

Invest 25% of budget surpluses in the Contingency Account until it reaches $5 billion, and then into a Debt Repayment Account .

 Creating Jobs, Growth, and Prosperity

Take full responsibility for provincial immigration (as Quebec has done) to ensure Alberta can attract the skilled work force needed for our economy.

Work with industry, post-secondary institutions, and self-governing organizations to safely expedite the recognition of foreign credentials.

Promote partnerships with our First Nations and Metis peoples in the development of our provincial natural resources and overall economy .

Measure the red tape and regulatory burdens faced by Alberta entrepreneurs, set a target for reductions, and report the results.

 Restoring the Alberta Advantage

Reverse Prentice’s tax hikes and commit to no new taxes.

Aggressively negotiate a fairer equalization program in order to keep more of the billions in Albertans’ tax dollars that are now funding the priorities of other provinces.

Reverse Prentice’s tax credit cut on charitable donations.

·   Implement broad-based tax incentives to stimulate research, investment, and economic activity across all sectors without government interference.

Progressive Conservative Party – leader, Jim Prentice

 No response received. Drawn from the Party platform at https://www.pcalberta.ca/Plan

As government spends less energy revenue on programs, more will be saved and invested. In 2019-20, 25 per cent of energy revenue will be used to pay down debt and to rebuild Alberta’s Contingency Account so the province can respond quickly to floods, wildfires and other emergencies. Also in that year, 25 per cent of energy revenues will go into the Heritage Savings Trust Fund. That amount will grow to 50 per cent as the contingency fund is replenished and Alberta’s debt is paid. The Heritage Fund will diversify the economy and strengthen Alberta’s legacy for future generations. Past investments in medical research, new industries, parks, museums and cultural facilities are a lasting legacy for future generations of Albertans. Future investments have the potential to establish Alberta as a leader in responding to climate change, value-added industries, Aboriginal development, seniors care and education.

DIVERSIFY ALBERTA’S ECONOMY

Promote the advantages of doing business in Alberta to attract investment and jobs to the province.

Introduce a Cultural Plan over the next three years: leverage our cultural and tourism resources.

 Alberta as a Leader in Innovation and Technology.

·   Help entrepreneurs commercialize their products and services.

Improve the quality of the SuperNet, especially in rural Alberta.

Help Alberta-based entrepreneurs access the venture capital they need.

 Alberta as a Leader in Agriculture.  There are over 50 million acres of agricultural land in the province. Alberta’s agriculture industry drives $77 billion in economic activity each year.

·   Expand opportunities for entrepreneurs to use established facilities such as the Leduc Food Processing Development Centre and Agri-Value Processing Business Incubator for product development, key research, innovation and commercialization.

Promote consumer confidence in Alberta as a leader in farm animal health and welfare, plant health and safe food products.

The average age of agriculture producers in Alberta is 54 and increasing. To ensure the sustainability and growth of our agriculture system, we need to attract and retain new producers.

·   Focus programs on attracting the next generation of agriculture producers to Alberta and supporting them as they enter the industry.

 Invest in Clean Technologies. Being a leading energy producer comes with a responsibility to be a leader in environmental and clean energy technologies. Investment in these innovations creates high value green jobs of the future.

·   Update the mandate of the Climate Change Emissions Management Corporation to accelerate technological investment and partnerships to address specific environmental challenges such as venting and flaring reduction technologies, engineering solutions to GHG emissions and carbon reduction technologies.

Drive innovation and the development of clean technologies across key Alberta sectors – in energy, forestry, agriculture and transportation.

EXPAND ALBERTA’S MARKETS

Trade between Alberta and the United States helps drive our economic activity – valued at over $200 million per day. Close to 90% of Alberta’s exports are destined for the United States. Based on an evolving and increasingly competitive global economy, we need to diversify our trading relationships. We must expand our reach into more markets around the world, becoming a sophisticated marketer of energy, agricultural products, forest products and petrochemicals globally.

Position our agriculture industry for growth by encouraging innovation and enhancing access to international markets, especially in the Asia Pacific Region.

Leverage emerging opportunities from the Canada-EU Free Trade Agreement to further open the world’s largest market for our products and services.

Reduce interprovincial trade barriers and promote free trade within Canada.

Work closely within the New West Partnership – representing a market of nearly 10 million people and economies worth half trillion dollars across British Columbia, Alberta and Saskatchewan.

Expand Alberta’s market access and petrochemical capacity to become a preferred global supplier, particularly of energy and natural resources.

Expand export infrastructure in Canada so that our businesses and industries can efficiently deliver their products to market

Announcing – Moonlight in the Meadows – our renown all-industry, summer networking BBQ – June 29th. Designed for staff,customers and suppliers – in the lush meadows of Edmonton’s river valley, on the evening of a glorious sunset and full moon arising.

Early-bird registration now open for industry and business leaders to Reserve their own:

Edmonton’s All-industry BBQ

Status Report on Alberta Economic Diversification

Sumptuous Local Bistros & Beverages

Lite and Festive Entertainment

Networking With Industry & Business Leaders

Full Moon Arising

Lush River Valley Setting

Industry Pavilion HERE                           Business Hospitality Suite HERE

Questions? Click HERE

Creativity & Convergence

The March 24th Conference was an astounding success with over 170 attendees.

Proceedings include the resolutions HERE for helping diversify Alberta’s economy and sustain innovation.

Pre-conference Workshop PPTs can be viewed HERE

Spring Clean-up

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