From Resource Works

Where the money comes from isn’t hard to see – if you look at the facts

In British Columbia, the economy is sometimes discussed through the lens of a “new economy” focused on urbanization, high-tech innovation, and creative industries. However, this perspective frequently overlooks the foundational role that the province’s natural resource industries play in generating the income that fuels public services, infrastructure, and daily life.

The Economic Reality

British Columbia’s economy is highly urbanized, with 85% of the population living in urban areas as of the 2021 Census, concentrated primarily in the Lower Mainland and the Capital Regional District.
These metropolitan regions contribute significantly to economic activity, particularly in population-serving sectors like retail, healthcare, and education. However, much of the province’s income—what we call the “first dollar”—originates in the non-metropolitan resource regions.

Natural resources remain the backbone of British Columbia’s economy. Industries such as forestry, mining, energy, and agriculture generate export revenue that flows into the provincial economy, supporting urban and rural communities alike. These sectors are not only vital for direct employment but also underpin metropolitan economic activities through the export income they generate.

They also pay taxes, fees, royalties, and more to governments, thus supporting public services and programs.

Exports: The Tap Filling the Economic Bathtub

The analogy of a bathtub aptly describes the provincial economy:

• Exports are the water entering the tub, representing income from goods and services sold outside the province.
• Imports are the water draining out, as money leaves the province to purchase external goods and services.
• The population-serving sector circulates water within the tub, but it depends entirely on the level of water maintained by exports.

In British Columbia, international exports have historically played a critical role. In 2022, the province exported $56 billion worth of goods internationally, led by forestry products, energy, and minerals. While metropolitan areas may handle the logistics and administration of these exports, the resources themselves—and the wealth they generate—are predominantly extracted and processed in rural and resource-rich regions.

Metropolitan Contributions and Limitations

Although metropolitan regions like Vancouver and Victoria are often seen as economic powerhouses, they are not self-sustaining engines of growth. These cities rely heavily on income generated by resource exports, which enable the public services and infrastructure that support urban living. Without the wealth generated in resource regions, the urban economy would struggle to maintain its standard of living.

For instance, while tech and creative industries are growing in prominence, they remain a smaller fraction of the provincial economy compared to traditional resource industries. The resource sectors accounted for nearly 9% of provincial GDP in 2022, while the tech sector contributed approximately 7%.

Moreover, resource exports are critical for maintaining a positive trade balance, ensuring that the “economic bathtub” remains full.

A Call for Balanced Economic Policy

Policymakers and urban leaders must recognize the disproportionate contribution of British Columbia’s resource regions to the provincial economy. While urban areas drive innovation and service-based activities, these rely on the income generated by resource exports. Efforts to increase taxation or regulatory burdens on resource industries risk undermining the very foundation of provincial prosperity.

Furthermore, metropolitan regions should actively support resource-based industries through partnerships, infrastructure development, and advocacy. A balanced economic strategy—rooted in both urban and resource region contributions—is essential to ensure long-term sustainability and equitable growth across British Columbia.

At least B.C. Premier David Eby has begun to promise that “a new responsible, sustainable development of natural resources will be a core focus of our government,” and has told resource leaders that “Our government will work with you to eliminate unnecessary red tape and bureaucratic processes.” Those leaders await the results.

Conclusion

British Columbia’s prosperity is deeply interconnected, with urban centres and resource regions playing complementary roles. However, the evidence is clear: the resource sectors, particularly in the northern half of the province, remain the primary engines of economic growth. Acknowledging and supporting these industries is not only fair but also critical to sustaining the provincial economy and the public services that benefit all British Columbians.

Sources:

1. Statistics Canada: Census 2021 Population and Dwelling Counts.
2. BC Stats: Economic Accounts and Export Data (2022).
3. Natural Resources Canada: Forestry, Mining, and Energy Sector Reports.
4. Trade Data Online: Government of Canada Export and Import Statistics.

Well, he finally did it.

After literally years of rumours that he was preparing to run for parliament and being groomed as Justin Trudeau’s successor.

After he, reportedly, agreed to take over Chrystia Freeland’s job as Finance Minister in December, only to then, reportedly, pull back once her very public and pointed resignation made the job too toxic for someone with his ambitions.

After he even began telegraphing, through surrogates, an openness to joining a Conservative government, likely hoping to preserve some of his beloved environmentalist achievements if and when Pierre Poilievre leads his party into government.

After all that, Mark Carney has finally thrown his hat into the ring for the position of Liberal leader and prime minister of our beloved and beleaguered country.

And, as I’ve been predicting, the whole gang of Trudeau apologists are out in force, jumping for joy and saying this is the best thing since sliced bread. Carney is a breath of fresh air, a man who can finally turn the page on a difficult era in our history, a fighter, and — of all things! — an outsider.

Hogwash!

This narrative conveniently ignores the fact that Carney has been a key Trudeau confidant for years. As Pierre Poilievre pointed out on Twitter/X, he remains listed on the Liberal Party’s website as an advisor to the Prime Minister. He’s godfather to Chrystia Freeland’s son, for heaven’s sake!

Outsider?! This man is an insider’s insider.

But, more importantly, Carney has been a passionate supporter and promoter of the Trudeau government’s agenda, with the job-killing, economy-hobbling Net Zero program right at its heart. The Carbon Tax? He was for it before he was against it, which is to say, before it was clear the popular opposition to it isn’t going away, especially now that we all see what a bite it’s taken out of our household budgets.

Even his course correction was half-hearted. In Carney’s words, the Carbon Tax “served a purpose up until now.” What on earth does that even mean?

Meanwhile, EV mandates, Emission Caps, the War on Pipelines, tax dollars for so-called renewables, and all of the other policies designed to stifle our natural resources imposed on us by the activists in the Trudeau government? They’re right up Carney’s ally.

Plus his record at the Banks of Canada and England, his role as the U.N.’s Special Envoy for Climate Action and Finance, and his passion projects like the Global Financial Alliance for Net Zero (GFANZ), and its subgroup the Net Zero Banking Alliance (NZBA), point to a concerning willingness to achieve his ideological goals by even the most sneaky, underhanded routes.

Take, for instance, the question of whether we need to “phase out” Canada’s oil and gas industry. Politicians who want real power can’t just come out and endorse that position without experiencing major blowback, as Justin Trudeau found out back in 2017. Despite years of activist propaganda, Canadians still recognize that hydrocarbon energy is the backbone of our economy.

But what if oil and gas companies started having trouble getting loans or attracting investment, no matter how profitable they are? Over time they, and the jobs and other economic benefits they provide, would simply disappear.

That is, in essence, the goal of GFANZ. It’s what they mean when they require their members – including Canadian banks like BMO, TD, CIBC, Scotiabank and RBC – to commit to “align[ing] their lending and investment portfolios with net-zero carbon emissions by mid-century or sooner.”

And Mark Carney is their founder and chairman. GFANZ is Mark Carney’s baby.

In truth, Mark Carney is less an outsider than he is the man behind the curtain, the man pulling the strings and poking the levers of power. Not that he will put it this way, but his campaign pitch can be boiled down to, “Trudeau, but without the scandals or baggage.” Well, relatively speaking.

But the thing is, it wasn’t those scandals – as much of an embarrassment as they were — which has brought an unceremonious end to Justin Trudeau’s political career. What laid him low, in the end, was bad policy and governmental mismanagement.

To choose Mark Carney would be to ask for more of the same. Thanks, but no thanks.

Dan McTeague is President of Canadians for Affordable Energy.