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B.C. frets over Alberta steamroller New report says provinces compete on labor, transportation, exports, fear Alberta could ‘outbid’ province Gary Park Petroleum News Canadian Contributing Writer
Alberta’s oil sands juggernaut will not only lead the Canadian economy this year it could flatten British Columbia’s hopes of expanding its natural gas industry, a new report warns.
A policy advisory group reporting to B.C. Premier Gordon Campbell warned that unless British Columbia can cooperate with Alberta on labor, transportation and export strategies, Alberta could simply “outbid” British Columbia for gas-sector workers and choke off B.C.’s economic growth.
But the B.C. Progress Board also argued the province is not without bargaining tools to extract cooperation from Alberta.
It said that without the highways, transmission lines, oil pipelines, rail systems and ports Alberta cannot get its oil, gas, coal and electricity to markets in the United States and Asia.
“In many ways, British Columbia holds the key to getting those products and services to market,” the report said.
“Just as British Columbia is well-advised to strike a joint labor strategy with Alberta to protect British Columbia interests, Alberta is well advised to develop a joint export strategy with British Columbia to protect Alberta interests.” Report: energy resources central The report, entitled Strategic Imperatives for British Columbia’s Energy Future, said the province’s considerable energy resources are central to maintaining and improving B.C.’s standard of living.
The development of Alberta’s oil sands and the “need to get both oil and electricity from the development to market provide an unparalleled opportunity for co-operation and resulting benefit between the two provinces.”
That, in turn, will pose challenges for British Columbia to recruit and retained skilled workers.
The coming wealth for Alberta will “create a potential threat to British Columbia as better wages, take home pay, health services and access to education in Alberta are likely to put enormous pressure” on the B.C. labor market, notably in areas of skilled trades and engineers, which are vital to grow B.C.’s energy sector.
B.C. Energy Minister Richard Neufeld said there is already cooperation between the two provinces on several of the matters raised by the report, including the first joint cabinet meetings.
He said both are experiencing difficulties attracting skilled labor, but British Columbia has an edge by offering Canada’s lowest personal income taxes on the first C$85,000 earned. Conference board predicts 4.6% growth Meanwhile, the Conference Board of Canada has predicted Alberta’s economy will lead Canada this year with 4.6 percent growth — compared with 2.7 percent nationwide and 3.3 percent in British Columbia noting the province is “roaring ahead, with most sectors firing on all cylinders … the outlook could hardly be better.”
However, the board forecasts Newfoundland will surge to the front in 2006 at 5.2 percent when White Rose becomes its third producing offshore oil field alongside Hibernia and Terra Nova, pushing Alberta to a distant second at 3.7 percent and B.C. to 3.4 percent.
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