Yedlin: We need an all-of-the-above plan to boost Calgary’s economy

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Alberta is at an inflection level. As a province endowed with an enviable useful resource bounty that has generated a major budgetary surplus, we’re additionally confronted with the dual challenges of reducing emissions and vitality safety. 

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On the identical time, we’re confronted with challenges not distinctive to different jurisdictions — a scarcity of expertise, rising prices and the necessity to spend money on new infrastructure and renew current amenities. 

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Lastly, as worth takers for our vitality merchandise, we proceed to be susceptible to international swings in vitality costs and challenged by inadequate entry to world markets.

Meaning there are priorities that should be balanced as we glance to set the stage to present Alberta the best optionality by way of with the ability to seize alternatives for financial progress and diversification, leveraging our current strengths and creating new ones.   

We have already got the constructing blocks: a younger and educated demographic, a aggressive tax surroundings and extremely ranked post-secondary establishments. The College of Calgary was simply ranked first in Canada by way of the variety of startups generated — for the second 12 months in a row. However that gained’t get us throughout the aim line of guaranteeing Alberta’s economic system is poised for long-term financial progress. It would require collaboration throughout all ranges of presidency and embrace each enterprise and civil society.  

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As Canada’s third most numerous metropolis — and the third most livable metropolis on the planet — Calgary is arguably in pole place. Not solely have we considerably diversified our economic system within the final eight years, we’re house to greater than 3,000 tech firms and are attracting the vast majority of enterprise capital funding that comes into the province.  

However that’s not all.  

Along with our vitality sector, which boasts the one vitality trade alliance on the earth dedicated to reducing carbon emissions, Calgary is house to Canada’s solely Power Transition Centre, Fintech, AgTech and Biomedical startups. A lot of that is due to our entrepreneurial spirit, dedication to arduous work and our willingness — as so aptly represented by the College of Calgary’s tagline, “Begin One thing.”  

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The Calgary Chamber is as a lot a champion and cheerleader for Calgary as it’s for the potential of the province. And right now, with a generational surplus we didn’t plan for, a lot much less anticipate within the aftermath of a worldwide pandemic, now could be the time to speed up our financial future.  

So first cease: what to do with the excess? 

We’d like a steadiness of paying down debt, rising the Heritage Financial savings Belief Fund, investing in one-time strategic infrastructure initiatives and, within the shorter time period, serving to companies and folks tackle affordability.  

Like each jurisdiction on the planet, our debt has continued to rise during the last a number of years, at the moment sitting at 9.9 per cent of GDP. Whereas that is the bottom within the nation, curiosity funds are vital, accounting for 4.4 per cent of the provincial funds, which implies paying down debt does unencumber funds for different vital investments, akin to restoring funding to post-secondary establishments.  

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Our Alberta Heritage Financial savings Belief Fund was the mannequin for Norway’s $1.3-trillion sovereign wealth fund. It’s time we began to reinvest within the fund with revenues generated by the event of our non-renewable sources and guarantee it could help the province sooner or later from the returns generated and by leaving the capital intact. That was the intent when it was established in 1976 — and it’s time for that self-discipline to be re-established for the advantage of Alberta’s future. If we don’t do that, ultimately the opposite choices for elevating income might be to boost taxes or take a look at different income measures.  

However, with $12.3 billion anticipated to come back our method this 12 months alone — a couple of fifth of our provincial expenditure — we have now some room for considerate, one-time investments. To take care of the momentum behind Alberta’s diversification, we want investments in each our sectors of power and our rising industries.  

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Alberta is an vitality powerhouse, and with the correct coverage panorama, that gained’t change. Innovation in hydrogen and carbon seize utilization and storage, together with a deal with diversifying our vitality combine means our vitality economic system will guarantee we’re international leaders. 

Our experience in pure useful resource improvement and a extremely adaptable workforce means Alberta has two vital substances to diversify our vitality combine in addition to understand the potential of our clear tech sector. What’s wanted is help from authorities that features initiatives — and sure, funds — to de-risk applied sciences and help firms by way of their nascent levels in order that they keep in Alberta and don’t go elsewhere for help and capital. That is of explicit concern, given the incentives in place in the US by way of the Inflation Discount Act and the popularity by the European Union that additionally they should put in measures to be aggressive with the IRA and guarantee applied sciences and corporations keep within the EU. 

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We additionally want authorities to spend money on arts, tradition, sport and leisure — as main financial sectors — to make Calgary a magnet for tourism and expertise and leverage the potential of our customer economic system. From the Saddledome to Arts Commons, the Olympic Oval to public transit, a lot of our infrastructure that was as soon as state-of-the-art is now in dire want of being repaired, rebuilt or modernized.  We have to present the world that we imagine in our future — and that’s executed by investing in daring initiatives. 

Whereas Alberta is anticipated to have robust progress relative to different provinces, 59 per cent of companies stay involved about rising prices and with out a rise within the labour provide, the upper price construction is unlikely to abate within the brief time period. Measures akin to inexpensive transit, helps for non-profits and gasoline tax and electrical energy rebates are welcome to each companies and households — however they should be seen as momentary. 

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One of many key areas for long term investments must be in rising our expertise pool. 

With nearly 100 per cent of the expansion in our labour pressure progress anticipated to come back from immigration within the coming decade, discovering work and a pathway to accreditation stays a significant problem for newcomers. 

Moreover, our post-secondary establishments are experiencing record-high numbers of candidates and enrolled college students and stay vital in our capacity to upskill and reskill our workforce. Not solely do we have to maintain younger expertise within the province, we have to help those that are right here, to reinforce their abilities so as to keep right here. The truth is, the information reveals that by 2030, and due to the rising variety of in-migration, we might want to create one other 34,000 seats for post-secondary college students, together with over 15,000 in Calgary. That’s the equal of making one other college the dimensions of UCalgary. 

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Finally, individuals are our aggressive benefit. With an more and more transient and cellular workforce, investments in upskilling, neighborhood vibrancy, and social and bodily infrastructure will materially affect our capacity to draw and retain expertise — and set us up for prosperity right now and tomorrow.  

So, it is going to be an all-of-the-above strategy to accelerating our economic system. However, between our entrepreneurial spirit, gifted workforce and a very good dose of funding, Albertans are in an enviable place to navigate a transparent path towards long-term financial progress. 

In a number of brief months, Albertans might be within the driver’s seat, deciding on the trail they wish to see — for present and future generations, from our political events. Albertans deserve a daring, formidable imaginative and prescient that’s inclusive and forward-looking, positioning the province for the economic system of right now — and tomorrow. We might be watching — and advocating — for what’s greatest for companies in Calgary and Alberta.  

Deborah Yedlin is CEO and president of the Calgary Chamber of Commerce. 

To learn ACCELERATE, the Calgary Chamber’s 2023 Provincial Election Platform, go to www.calgarychamber.com/speed up.