Business
Red Deer Chamber Still Concerned Over Province’s Deficit And Debt
(Reg Warkentin – Policy and Advocacy Manager for the Red Deer and District Chamber of Commerce)
By Sheldon Spackman
The Alberta Government released it’s Second Quarter Fiscal Update and Economic Statement on November 28th and it shows that despite ongoing challenges and high unemployment, there are some hopeful signs for the province’s economy.
Provincial officials say there were 25,000 jobs added in the last three months, manufacturing shipments have increased in recent months, the value of Alberta’s exports has increased since April and drilling activity is picking up from its lows.
Following two years of contraction, Alberta’s economy is also expected to grow by 2.3 per cent in 2017, supported by wildfire reconstruction, a rebound in oil production, additional investments in public-sector infrastructure and a modest improvement in oil prices.
However, Red Deer and District Chamber of Commerce Policy and Advocacy Manager Reg Warkentin says there’s still cause for concern when looking at the size of the deficit and debt. The 2016-17 deficit is forecast to be $10.8 billion, a $78-million decrease since the first quarter but still $449 million higher than estimated at budget, due to the impact of the Wood Buffalo wildfire and other factors.
Warkentin says “It’s good to see some progress being made despite the high cost of the Wildfire in the spring but the debt and deficit maintenance levels remain cause for concern.” He feels that “Some further efficiencies can still be found in the way the government delivers it’s services without major service cuts.” Having said that, Warkentin was surprised to see non-renewable resource revenue increase, adding that “It’s a broad sign of the economy being on the right track, especially in the oil and gas sector.”
The government is maintaining it’s forecast for oil prices at $45 US/Barrel, the same as at first quarter but three dollars higher than estimated at budget. Forecast revenue is up $1.3 billion from Budget 2016, primarily due to the increased non-renewable resource revenue, federal transfers and investment income.
Operating expenses though have increased by $556 million from budget. This includes a second quarter increase of $100 million to address higher caseloads for Income Support, Assured Income for the Severely Handicapped and other support programs.
In a release, President of Treasury Board and Minister of Finance Joe Ceci, says “While it’s too soon to say Alberta’s economy turned a corner, there are some hopeful signs that it’s stabilizing. We are keeping a steady hand on the tiller and sticking to our approach of controlling spending, protecting critical public services and supporting job growth and the diversification of our economy.”
You can watch the Announcement here:
https://www.youtube.com/watch?v=ZF1okvLkQZA&feature=youtu.be
(Photo courtesy of the Red Deer and District Chamber of Commerce)
Business
Debunking the myth of the ‘new economy’
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:
- Statistics Canada: Census 2021 Population and Dwelling Counts.
- BC Stats: Economic Accounts and Export Data (2022).
- Natural Resources Canada: Forestry, Mining, and Energy Sector Reports.
- Trade Data Online: Government of Canada Export and Import Statistics.
Business
Trump puts all federal DEI staff on paid leave
From LifeSiteNews
Trump’s shuttering of federal DEI programs is in keeping with his promise to ‘forge a society that is colorblind and merit-based.’
President Donald Trump has ordered all federal diversity, equity and inclusion (DEI) staff to be placed on paid leave by Wednesday evening, in accordance with his executive order signed on Monday.
The president pledged during his inaugural address to “forge a society that is colorblind and merit-based,” which is the impetus behind his efforts to abolish DEI programs that prioritize race and ethnicity above merit when hiring workers.
Trump’s Executive Order on Ending Radical and Wasteful Government DEI Programs and Preferencing stated, “Americans deserve a government committed to serving every person with equal dignity and respect, and to expending precious taxpayer resources only on making America great.”
“President Trump campaigned on ending the scourge of DEI from our federal government and returning America to a merit based society where people are hired based on their skills, not for the color of their skin,” White House press secretary Karoline Leavitt said in a statement Tuesday night. “This is another win for Americans of all races, religions, and creeds. Promises made, promises kept.”
The Office of Personnel Management issued a memo to the leaders of federal departments instructing them to inform employees by 5 p.m. ET on Wednesday that they will be placed on paid administrative leave as all DEI offices and programs prepare to shut down, according to NBC News.
It is unclear how many employees will be affected by the erasure of federal DEI programs.
Diversity training has “exploded” in the federal government since Joe Biden took office in 2020, the Beacon noted, with all federal agencies having mandated a form of DEI training before he left office.
DEI initiatives have long been widely denounced by conservatives and moderates as divisive, but they have been coming under increasing fire for undermining the competence and most basic functioning of public institutions and private corporations, even putting lives at risk.
For example, some commentators have blamed growing – and at times catastrophic and fatal – airplane safety failures in part on DEI hires and policies. Upon the revelation that a doctor at Duke Medical School was “abandoning… all sort(s) of metrics” in hiring surgeons in order to implement DEI practice, Elon Musk warned that “people will die” because of DEI.
Conservatives have also criticized DEI for stoking rather than curing division. A recent study shows that DEI programs actually breed hostility in businesses and schools.
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