‘Undervalued strength of our economy’

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This article was published 07/10/2024 (718 days ago), so information in it may no longer be current.

As Canada faces economic challenges, the natural resources sector should not be overlooked. The Canadian Chamber of Commerce brought that message to Winnipeg on Monday.

During a panel discussion organized by the national chamber, leaders from the sector explored how the country might chart a path to harness its natural resources in order to align with the economy, meet global demands, support Indigenous reconciliation, strengthen environmental performance and strive for a better life for all Canadians.

“The natural resources sector certainly is an undervalued strength of our economy,” said Patrick Gill, senior director of the chamber’s Business Data Lab.

“With a bright policy environment (and) participation by Indigenous peoples, Canada would be a leading global provider of energy and natural resources to ultimately help deliver a more affordable and higher quality of life for all Canadians.”

The event comes on the heels of a report the chamber released last month highlighting Canada’s natural resources sector.

According to the report, the sector contributed $464 billion to real gross domestic product and supported three million jobs in 2023, representing 21 per cent of the national GDP and 15 per cent of employment.

The sector generated $377 billion in exports, accounting for nearly 50 per cent of Canada’s merchandise exports, and a $228-billion trade surplus “critical” for offsetting trade deficits in other sectors.

The report further notes the natural resources sector accounts for nearly one in seven jobs in the economy, offering annual wages $25,000 above the national average in 2023. Its productivity is 2.5 times greater than that of the overall economy.

The report suggests at a time when Canada is the second-least productive nation in the G7 — a situation the Bank of Canada characterized earlier this year as an emergency — increasing investment in high-productivity sectors, particularly within natural resources, is crucial for boosting Canada’s economic well-being and advancing economic reconciliation with Indigenous communities.

Jeff Gaulin, head of corporate affairs at Vale Base Metals in Toronto, brought that message home during his remarks Monday.

“We cannot take for granted the blessings that we have of natural resources in Canada,” he said. The country is rich in minerals, oil, gas and agriculture, and operates in these sectors with high labour and environmental standards.

Gaulin described the Manitoba’s ability to produce hydroelectric power as a goldmine.

“The world wants what Canada has,” he said. “The world wants what Manitoba has.”

John Desjarlais, executive director of the Indigenous Resource Network, touted the strides that have been made when it comes to Indigenous participation in the natural resources sector.

Indigenous groups are no longer seen as stakeholders but as equal partners. This creates economic activity, including well-paying jobs, for Indigenous Canadians, allowing them to develop, grow and become leaders in their communities and in non-Indigenous communities alike, he said.

“Indigenous people are participating in governance, in committees, in civil service, in a variety of different ways,” Desjarlais said. “It’s really enriching, I think, Canada and really advancing reconciliation.”

At the same time, regulatory uncertainty and under-investment are impeding growth, according to Jeff Lawson, senior vice-president of corporate development at Cenovus Energy in Calgary.

“I’m really proud of our country but we are discouraging investment,” Lawson said. “We’re not competitive. Policy … is one of the biggest impediments.”

Government should be making it easier for international companies to do business in Canada, because natural resources are something the country can offer that not everyone else can.

“We have been blessed with natural resources through this country that other people don’t have,” Lawson said. “It is actually a strategic advantage.”

Around 80 people gathered at the Fort Garry Hotel for the event, which was presented in partnership with the Winnipeg Chamber of Commerce and the Manitoba Environmental Industries Association.

In his opening remarks, Winnipeg chamber chairman Kevin Selch described the event as timely.

“In Manitoba, we’re fortunate to have a wealth of resources beneath our feet — from critical minerals essential to the global shift to clean energy, to the forests, waters and land that have sustained us for generations,” he said. “The decisions we make now will shape not only our economy, but also the future of how we live and work.”

Winnipeg is a hub for innovation and collaboration, Selch added, and the natural resources sector is poised to be at the forefront of Canada’s next wave of economic development.

“But to get there, we need to ensure that we are building partnerships that reflect the diversity of our communities, developing policies that promote long-term sustainability (and) investing in people, because a strong workforce is key to unlocking the potential of our natural resources,” he said.

The Canadian Chamber of Commerce’s five-city tour started with stops in Ottawa and Toronto last month, and concludes with events in Vancouver and Calgary this week.

aaron.epp@freepress.mb.ca