West at a Glance - August 2017 Issue

(PDF; 231 KB)

Inside this issue

• Provincial Government Developments
• News and Opinion Highlights
• Key Economic Indicators
• Upcoming Events

Provincial Government Developments

British Columbia

• New Premier and cabinet sworn in – On July 18, 2017, John Horgan was sworn in as the 36th Premier of BC. Premier Horgan's new cabinet is the first in BC's history to achieve gender parity with 10 women named to cabinet and one to minister of state. Ministerial portfolios highlight the government's intention to improve the quality of life and job opportunities within the province, including a Ministry of Mental Health and Addictions, a Minister of State for Child Care, and a Minister for Social Development and Poverty Reduction. There were also a number of changes to appointments at the Deputy Minister level.
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• New BC government's first moves – Mandate letters to each of the cabinet ministers in BC's new government were publicly released on July 24. Ministers have been instructed to deliver on three key priorities – "relief for families from rising costs and fees; better services for people, including healthcare and education; and good jobs and economic opportunities." The new government began addressing its key priorities with an announcement to increase income and disability assistance by $100 a month, moving BC from having the lowest provincial assistance rate to the third highest. In addition, Premier Horgan announced changes in leadership within BC's crown corporations, including BC Hydro, BC Housing and the Insurance Corporation of BC.
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• Immigration to support BC's growing tech sector – BC is prioritizing the applications of potential immigrants with skills and experience in the Information Technology (IT) sector. The province has been conducting tech-only immigration draws under the Provincial Nominee Program since May, reinforcing the government's commitment to support and grow BC's technology sector. The provincial nominee program allows provinces to nominate prospective immigrants with the qualifications they are targeting.

Alberta

• Alberta announces new climate programs for Indigenous communities – On June 29, the Government of Alberta announced the creation of seven new programs designed to help Indigenous communities invest in local renewal projects, conduct energy-efficiency audits and deliver skills training for jobs in a low-carbon environment. These programs were announced in Alberta's Climate Leadership Plan and will be funded by $35 million of Carbon Tax revenue.
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• Alberta provides funding for Calgary LRT – The province announced $1.53 billion in funding over eight years for the construction of the Calgary Green Line LRT, matching equal contributions from The City of Calgary and the federal government. The Green Line will traverse a 46km, north-south route through central Calgary to improve public transit access and connectivity by linking 28 stations, two existing LRT lines and three bus rapid transit lines. The new LRT line will be built in stages as funding becomes available, with construction of the first of three stages set to begin in 2019. The provincial government estimates that the Green Line will create 12,000 direct and 8,000 indirect jobs.
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• Province announces funding through Emissions Reduction Alberta – Emissions Reduction Alberta (ERA) is funding 12 innovative methane-reducing projects as part of its Methane Challenge to detect, quantify and reduce methane emissions. Selected projects in the oil and gas, power generation, agriculture and forestry sectors will receive up to $29.5 million funding. It is estimated that the combined projects, worth more than $83 million, will reduce over 1.1 megatonnes (Mt) of methane by 2020 and 6.9 Mt by 2030, and create 60 jobs. ERA's Oil Sands Innovation Challenge is leveraging another $50 million to provide $100 million in funding for winning technologies that will allow oil sands operations to meet the greenhouse gas emissions limit by 2030.
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• Alberta funds projects through the Entrepreneurship Incubator Program – The Government of Alberta has announced $10 million in funding for entrepreneurial development through its two-year Alberta Entrepreneurship Incubator Program (AEIP). The Red Deer Downtown Business Association will receive $600,000 to expand its Catapult Entrepreneurs Incubator. In addition, Startup Edmonton, TEC Edmonton, Northern Alberta Business Incubator (NABI) and the Northern Alberta Institute of Technology (NAIT) will receive $1.5 million to provide a new suite of services for innovation based startups. The Apex Incubator in Medicine Hat and the Spark! Incubator in Grande Prairie have previously received funding from the AEIP.
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• Changes made to the Canada-Alberta Job Grant – The Canada-Alberta Job Grant (CAJG) was recently improved to expand access to training and offer more ways for Alberta employers to train workers, as well as a $5.5 million budget increase over 2016-17. Launched in 2014, the CAJG is an employer-driven training program delivered by the Government of Alberta with funding from the federal government. Changes include covering 100 percent of training costs, up to $15,000, for unemployed trainees, reimbursing a portion of travel costs for trainees coming from outside of Calgary or Edmonton and allowing sole proprietors to apply for training for their workers.

SASKATCHEWAN

• Saskatchewan launches Innovation Incentive – On June 30, 2017, the government of Saskatchewan proclaimed the Saskatchewan Commercial Innovation Incentive (SCII) Act. The SCII is the first "patent box" style incentive in North America, and will reduce the provincial, corporate income tax rate for eligible corporations on taxable income earned from the commercialization of qualifying intellectual property (IP). Eligible IP includes patents, plant breeders' rights, trade secrets and copyright material. The SCII will enable corporations to reduce their income tax for a period of ten years, with an additional 5-year extension available if the majority of the related research and development takes place in Saskatchewan.
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• SaskPower issues a request for proposals on a wind power project – On July 6, 2017, SaskPower moved forward on the competitive process to acquire an additional 200 megawatts of wind generation capacity by inviting eight independent power producers to submit proposals by May 25, 2018. SaskPower, a Crown-owned utility, has committed to increasing the province's share of renewable energy generation from 25 per cent to 50 per cent by 2030. Increasing the share of renewable energy in the province's electricity system has the potential to reduce greenhouse gas emissions to roughly 40 per cent below 2005 levels.

MANITOBA

• Province of Manitoba requesting proposals for Social Impact Bonds – The government of Manitoba has posted a request for proposals for the development of their first Social Impact Bond (SIB) which will fund provincial social programs. SIBs encourage the private sector and community groups to partner with government to deliver programs designed by experts and front-line service organizations. The government sets a specific outcome to achieve in collaboration with service providers, secures private investment and then repays the investors if the service provider meets the project's outcome. The participation of Indigenous businesses has been encouraged.
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• Manitoba facilitates propane shipments to Churchill – The Manitoba government has committed $6 million to ensure that the community of Churchill will have sufficient propane to heat their homes and businesses throughout the winter. The funding will allow provider Stittco Energy to proceed with finalizing logistics for shipment and storage in order to supply Churchill with propane. This allotment of propane should support the town and area residents until at least June 2018. The shipment includes 110 shipment containers of propane, totaling 2.2 million litres, shipped by sealift from a port in Quebec in early fall.

News and Opinion Highlights

• Petronas will not proceed with Pacific NorthWest LNG megaproject – Malaysian state-owned energy company Petronas and its partners have decided not to proceed with the $36-billion Pacific NorthWest (PNW) LNG project near Prince Rupert, BC. Anuar Taib, Chairman of the PNW LNG Board, attributed the decision to "prolonged depressed prices and shifts in the energy industry."
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• BC wildfires cause disruptions in the province's resource and tourism industries – More than 375 wildfires have plagued homes and business in BC, forcing 37,000 people to evacuate and putting thousands more on alert. The fires have affected key resource and tourism industries, including multiple mining and forestry operations. Slack lumber production has led to a boost in prices, which is helping to offset the U.S. duties on Canadian softwood.
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• International Artificial Intelligence lab coming to Edmonton – Artificial intelligence (AI) company Deep Mind, a London-based AI research division of Google, announced it will open its first research lab outside of the United Kingdom in Edmonton. The lab will collaborate closely with University of Alberta and, particularly, with three professors who are considered world leaders in AI.
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• Indigenous participation on the Trans Mountain pipeline project – A joint program between Women Building Futures and the Trans Mountain Expansion Project will train twelve Alberta indigenous women to work on the $7.4-billion pipeline project. The eight-week program will provide training in basic carpentry, welding and safety. An Indigenous Advisory and Monitoring Committee has been established for the Trans Mountain pipeline expansion, backed by $64.7 million in funding from the Government of Canada, to allow Indigenous groups to participate in and monitor the project's construction.
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• Federal funding for Heritage Park in Calgary – WD announced an investment of $40,000 through the Canada 150 Community Infrastructure Program towards the Association canadienne-française de l'Alberta – Régionale de Calgary to build a Francophone pavilion in Heritage Park. The pavilion's design is based on sugar shacks from the turn of the century, where maple tree sap was boiled down and prepared into maple syrup. The practice of boiling sap down into syrup was taught to Francophone settlers by Indigenous people. As such, the pavilion celebrates French Canadian and Métis cultures, while promoting the French language in the Calgary region.
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• Provinces join the Canadian Agricultural Partnership – On July 21, 2017, the federal, provincial and territorial governments reached an agreement on a new agricultural policy framework. The Canadian Agricultural Partnership (CAP) is a five year federal-provincial-territorial funding agreement and $3 billion investment that will govern agricultural risk management programs including Crop Insurance, AgriStability, and AgriInvest, and support a number of strategic initiatives in: science, research, and innovation; markets and trade; environmental sustainability and climate change; value-added agriculture and agri-food processing; and public trust.
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• Husky Energy investing in carbon capture – Husky Energy is investing in a new carbon capture and storage (CCS) pilot plant near Maidstone, Saskatchewan. The plant will use Inventys' second-generation CCS technology, developed in Burnaby, BC, to capture 30 tonnes of carbon dioxide per day for enhanced oil recovery.
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• Saskatchewan innovator demonstrates driverless tractor at farm show – A driverless tractor, invented by the owner of Saskatchewan-based Seed Master, was showcased at the Ag in Motion trade show outside of Saskatoon on July 19, 2017. Developers anticipate that the driverless tractor could reduce fuel, labour, GHG emissions and capital equipment costs by 20 percent.
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• Comm Stream to Connect Northern Communities – Winnipeg company Comm Stream is installing infrastructure to provide high-speed internet to 17,000 residents in 2,000 homes in remote, northern Manitoba communities.
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• Liberstream Technologies is Industry Go-To – Two of the four largest aircraft engine manufactures in the world, along with other unnamed clients, have adopted Winnipeg-based Liberstream Technologies' video tech for engine maintenance. The technology allows for efficient engine repair, maintenance planning and decision making to maximize operable aircraft hours.
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• Brandon University Economic Impact Study – A study conducted by Brandon University found the annual economic impact of the school to be over $417 million. Additionally, for every dollar invested by the province, the university generated $11 in economic impacts. The university has 3,000 students, 400 employees and is responsible for the creation of 927 jobs across Manitoba.

Key Economic Indicators

	British Columbia	Alberta	Saskatchewan	Manitoba	Canada	Last Update
Gross Domestic Product
Real GDPFootnote 1  (2007 $billions, forecast)	$224	$298	$60	$57	$1,716	2017
% ch. from year earlier	2.5%	3.3%	2.5%	2.1%	2.3%
Labour Market
Employment (SA, thousands)	2,481	2,284	568	649	18,422	Jul-17
Change from previous month	-5.1	-14.4	-0.4	4.8	10.9
% ch. from previous month	-0.2%	-0.6%	-0.1%	0.7%	0.1%
% ch. from year earlier	3.6%	1.5%	-0.2%	2.1%	2.1%
Unemployment Rate (SA,%)	5.3%	7.8%	6.6%	5.%	6.3%	Jul-17
percentage points from previous month	0.2	0.4	0.1	-0.3	-0.2
percentage points from year earlier	-0.3	-0.8	0.3	-1.3	-0.7
Regular EI beneficiaries (SA)	50,910	71,950	18,760	14,990	525,250	May-17
Change from previous month	-1850	-5,550	-50	-190	-12,760
% ch. from previous month	-3.5%	-7.2%	-0.3%	-1.3%	-2.4%
% ch. from previous year	-5.1%	-11.1%	11.9%	-2.1%	-4.9%
Average weekly earnings	$939.99	$1,120.19	$1,004.59	$915.20	$972.41	May-17
Change from previous year	$22.51	$18.68	$19.97	$27.79	$18.92
Prices
CPI (y/y)	1.7%	0.4%	0.5%	0.2%	1.0%	Jun-17
CPI (y/y) previous month	1.9%	1.2%	0.9%	1.0%	1.3%	May-17
Consumers and Business
Retail Sales (SA, $millions)	$7,003	$6,812	$1,658	$1,696	$48,905	May-17
% ch. from previous month	2.6%	1.6%	0.9%	0.8%	0.6%
% ch. from previous year	9.9%	9.0%	4.7%	6.2%	7.3%
Manufacturing Sales (SA, $millions)	$4,067	$6,089	$1,256	$1,465	$54,593	May-17
% ch. from previous month	1.8%	1.3%	-0.3%	0.3%	1.1%
% ch. from previous year	8.2%	18.4%	8.9%	4.8%	8.7%
Building Permits (SA, $millions)	$1,311	$1,087	$205	$319	$8,062	Jun-17
% ch. from previous month	2.5%	-8.0%	21.7%	40.4%	2.5%
% ch. from previous year	28.5%	9.7%	-10.3%	64.5%	22.5%
Housing Starts (SAAR, thousands)	48	34	6	5	222	Jul-17
% ch. from previous month	17.6%	8.1%	6.1%	-26.4%	4.4%
% ch. from previous year	20.0%	30.9%	-5.2%	-34.0%	13.6%
International Trade
Merchandise Exports ($millions)	$3,750	$8,169	$2,181	$1,219	$43,794	Jun-17
% ch. from previous month	-2.8%	-8.4%	-17.0%	-3.5%	-4.1%
% ch. from previous year	27.1%	31.1%	7.4%	11.5%	13.6%
Merchandise Imports ($millions)	$4,554	$2,576	$1,076	$1,906	$50,969	Jun-17
% ch. from previous month	-0.7%	3.3%	7.9%	-2.6%	0.2%
% ch. from previous year	9.1%	25.0%	44.3%	9.5%	10.0%
Demographics
Population (estimate)	4,789,221	4,291,980	1,161,365	1,332,629	36,591,241	Q2 2017
% ch. from previous year	1.3%	1.4%	1.4%	1.6%	1.2%
Largest Cities (CMAs)	Vancouver (2,548,740)	Calgary (1,469,341)	Saskatoon  (315,150)	Winnipeg*  (811,874)		2016
	Victoria*  (370,899)	Edmonton*  (1,392,594)	Regina* (247,224)

Upcoming Events