Canada West Foundation Blog

By: Shawna Stirrett

There are many benefits to be had from improving the environmental performance of Canadian cities. Residents can benefit from improved aesthetics, lower water treatment costs, higher property values, increased air quality, the attraction and retention of skilled workers and much more. General environmental benefits can include reductions in greenhouse gas emissions, improved water and air quality, less fragmented ecosystems and improved biodiversity.

And the good news is that we have a pretty good sense of how these environmental improvements can be realized. There are many different tools for, and principles of, creating more sustainable cities that individuals, businesses, communities and municipal governments can employ. Outlining these tools is the focus of Canada West Foundation’s most recent report Tools of the Trade: Urban Environmental Improvement Options.

The real challenge, however, isn’t in knowing what to do but rather in implementing the good ideas that we already have. Many people are well aware of the environmental benefits of recycling, composting, improved energy efficiency and transit-oriented development. The fact remains, though, that we are not using these tools as much as we could in Canadian cities for myriad reasons.

Let’s take, as an example, a very simple environmental tool like the use of rain barrels to harvest rainfall.

Rain barrels are used to capture and store rainwater for later use on lawns and gardens. The environmental and economic benefits of rain barrels are clear. Using rainwater is better for your lawn and garden because it is not chlorinated and contains many of the minerals that your soil needs for healthy plant growth. Rain barrels also save money as you are not paying for water to be treated, transported and metered by the city. It’s a clear environmental and economic win-win.

So, given that, why wouldn’t everyone use rain barrels?

Well, in the spirit of full disclosure, I have to confess I do not have a rain barrel. I’m not trying to be hypocritical, and I would love to have one, but I live in a condo and our condo board does not allow rain barrels because they are unsightly and ruin the grass and I don’t have enough space on my patio for both a rain barrel and a barbeque.

I also find that I’m not alone in this. Using a very informal survey methodology (I asked my friends on Facebook), I have discovered that while only a few of my friends actually use rain barrels currently, almost everyone wants to use them. For those not using them, their reasons include laziness, aesthetics, cost of the rain barrel and living in a condo or apartment. The most frequently cited reason was living in a condo or an apartment building.

This raises the question for me: if we want to encourage higher density living and smaller carbon footprints, then why are we not designing environmental products that can be used by a variety of people in different types of housing?

Conventional rain barrels can hold about 45 gallons of water, are made of plastic, cost around $70 and come in a couple different colour options. While there is no question that these rain barrels work for many people, they also don’t work for many others as my survey and personal experience testifies. Rain barrels are really big, for starters, meaning that unless you have a house or a very large deck they are impractical. They are also somewhat awkward to use. The downspouts are located at the bottom and they often have to be positioned on cinder blocks so that you can access the water inside them. Finally, they are ugly and do little for the overall aesthetic of your yard and garden.

If we really want more people to use rain barrels as a way to make cities more environmentally friendly, we need to think about the full picture. It’s not going to be enough to tell people they should be using rain barrels, we need to be thinking about why they aren’t and designing solutions that are holistic and practical. We need to remember that “Good design is not about color, style or trends—but instead about thoughtfully considering the user, the experience, the social context and the impact of an object on the surrounding environment” (Inhabitat).

For a good example of how good design can change our relationship with environmental products, check out some innovative rain barrels by clicking here.
 

By: Robert Roach

There are two main ways of addressing the fact that Canada is a collection of diverse regions.

The first is to embrace this fact as a fundamental strength and seek ways to work together and support one another. If we respect our differences and build on our similarities, a strong, united, dynamic and great nation is the result. Taking this path is not easy; it requires empathy, sacrifice, the ability to see beyond narrow perspectives, a willingness to compromise and an abiding commitment to the belief that Canada is strongest when all of its regions are thriving.

The second option is all too common and involves playing one region (or city or industry) of the country off of another for short-term gain, out of jealousy or because of ignorance. This approach sees the different parts of this great nation as competitors locked in a zero-sum game in which one region triumphs as the expense of the others. The result is bickering, missed opportunities, counterproductive animosity and a frayed national fabric. We can do better.

Politicians, business leaders, journalists, policy wonks and citizens from all parts of the country sometimes default to the second option. Most recently, Thomas Mulcair has said a number of things that focus on what divides Canada rather than what unites it. His remarks have been critiqued—and rightly so!—but we have to be careful not to let them become more fuel for the fire of division.

I have heard Albertans blame Quebec for Canada’s problems. I have heard people in Ontario berate life on the Prairies. I have heard people from Toronto tell tourists to avoid Calgary because it is ugly and full of rednecks. I have heard people in BC complain about EI recipients in the Maritimes. On top of these taunts and insults, there are old grudges against eastern banks, the oil sands is blamed for everything from the common cold to global warming and there are far too many Canadians who think breaking up the country is a good idea.

As we react to the recent wave of regional tension, it is worth considering that we are all better off working together as a country of strong regions rather than throwing stones at each other in an attempt to score points in a game with no real winner.

By: Robert Roach

The federal government recently announced a “Plan for Responsible Resource Development” that will streamline the federal regulatory review process. While this is a step in the right direction, a report from the Canada West Foundation being published on May 3 argues that the task at hand is much larger. Keeping Pace: Improving Environmental Decision-Making in Canada reveals an environmental decision-making process that, while one of the best in the world, is dogged by a number of significant shortcomings. These weaknesses include insufficient integration of scientific research; a lack of clarity regarding exactly what trade-offs between environmental protection and economic development are acceptable to the government of the day; and the ongoing need to ensure that the various government departments and agencies at the federal and provincial levels are cooperating as much as possible.

You can download this timely new report for free from the Canada West Foundation website on Thursday.

As reflected by the results of the 2011 census, the creation of new House of Commons Seats and the ongoing news about the westward titling of the economy, it is clear that the nature of the Federation is shifting. The latest research from the Canada West Foundation looks at the consequences for the region and the country, now that the West is truly “in”.

Taking Stock of the Federation by Dr. Roger Gibbins, President & CEO and Robert Roach, VP, Research, is the synthesis report from a roundtable held on February 9, 2012 in Calgary. This roundtable gathered sixteen participants who provided their insights on the contemporary political landscape, the likely direction of future change, and the potential for strains within the federation across the four western provinces.

“Each region in Canada is vitally important,” notes Dr. Gibbins. “While differences between the regions have evolved, they are still key variables in both Canada’s political environment and the economy. For the federation to work well, we must ensure that all regions— including the West—are heard, understood, and integrated into the whole.”

While participants expressed a general sense of optimism about the region’s future, they also highlighted some significant challenges western Canadians will face in securing a new position within Canada and the global economy. By addressing issues like market access, sustainable environmental management, labour shortages and a fiscally unbalanced federal state, we can ensure that the future remains bright.

Taking Stock of the Federation is part of Foundation’s The West in Canada initiative, which examines public policy innovation in the West, discusses and recommends ways to improve the Canadian federation, and analyzes regional economic, demographic and public opinion trends. Click here for your copy of the report.

Western Canada profits from its abundance of natural resources, however, in the changing global landscape, we need to take action to ensure our future prosperity. The latest research from the Canada West Foundation outlines the main contours of the contemporary energy world and takes stock of the trends shaping energy in western Canada.

State of the West: Energy – 2012 Western Canadian Energy Trends, by Senior Economist Michael Holden and Policy Analyst Robbie Rolfe, provides an overview of the provincial energy systems in western Canada, including the current state of energy production, consumption, and other associated activities and impacts. That information is framed in the context of the energy-related policy issues and challenges facing the four western provinces.

“Western Canada is characterized by a profound diversity of resources, consumption patterns, and economic and environmental impacts” said Michael Holden. “The energy picture in each province is unique, but their strengths are complementary. Through a more coordinated approach to energy policy, the western provinces can become more than the sum of their parts.”

Given the extent to which it permeates our daily lives, energy has come to dominate the economic, social, and political agenda in the region. State of the West: Energy provides a one-stop information resource on energy in western Canada, informing the debate surrounding energy policy in the West, and providing context to both where we are today and where we may go in the future.

State of the West: Energy – 2012 Western Canadian Energy Trends is part of the Foundation’s Powering Up for the Future initiative, which facilitates constructive debate on sustainable energy policy solutions for Canada and promotes the vital importance of western Canadian energy systems in the national, continental, and global economy. Click here to download a copy of the report.

By: Robert Roach, VP, Research

In an article in today’s Globe and Mail, John Ibbitson argues that "One question will define national politics in our time: Are Western Canadians prepared to sacrifice for the sake of the nation, now that Ontario is less able to help?"

In addition to incorrectly implying that western Canadians chipping in to help the rest of the country is a new phenomenon, the question is the wrong one to ask.

The question Canadians should be focused on is how to ensure that the nation successfully adjusts to the evolving global economy. It is a mistake to start with a negative question that assumes the need for "sacrifice"—whatever that means—or puts pressure on the nation’s fault lines by immediately assuming that regional wealth redistribution is the solution to central Canada’s problems. This is the old way of thinking and this is not the time to bring it back.

The West knows what it is like to have its interests and economic prospects ignored and how damaging this is to the country and its potential. It will not, therefore, make the same mistake that central Canada has made in the past and be blithe to the blight of the other regions.

The West gets it—all regions benefit when all regions are heard and respected. The West will do its part, as it always has.

Ensuring Canada’s prosperity will happen naturally as the western economy continues to provide jobs and returns on investment. It will also happen at the political level through the equalization program, a strong tax base in the West that helps fill the national treasury, and by ongoing efforts by Canadians to ensure strong regional representation within the national government.

Ultimately, however, the economic recovery of Canada's industrial heartland will depend on the efforts of individual Canadians and their ability to harness the changes happening at a global level.

By: Shawna Stirrett

In November 2011 the Canada West Foundation in partnership with the National Round Table on the Environment and the Economy (NRT) conducted a series of roundtables about developing a low-carbon growth strategy for Canada with particular emphasis on the opportunities and risks facing the West.

You can read all about the main themes, policy recommendations, and overview issues in the report (click here to view) but, just for fun, here is a visual overview of the roundtables:

These word clouds were created from my notes, which were typed up during each of the sessions. Words that appeared more often in the conversation appear larger in the clouds and words that were less common are smaller. In a sense, these clouds give a visual overview of what ideas were most prevalent during the roundtables and which topic generated the most interest.

What is really fun is to see how the conversations—which were all structured around the same questions—varied from province to province.

For example, in Saskatoon, one of the main themes was on how to deal with carbon constraints in an environment of economic growth.

Those in Vancouver were most concerned about how carbon should be constrained, should it be a tax or cap and trade?

Calgary roundtable participants were pretty set on the need for a national framework around energy and emissions.

While in Winnipeg the discussion centered on how challenging it can be to put in place carbon policies when power is so cheap and emissions rates are so low in the province.

Of course these word clouds do not tell the whole story, but they do provide an interesting visual overview of what issues were important to roundtable participants and how the conversation varied across the region.

Click here to download a copy of Cautious Optimism: Western Perspectives on a Low-Carbon Economy.

By: Michael Holden

As the Canada West Foundation highlighted in a study released earlier this year, western Canadian exporters are gradually shifting their focus away from the United States and are increasingly selling their goods in Asian markets.

Early data for 2011 show this trend continuing. Through the first six months of the year, western Canadian exports to Asia were up 23.3% compared to the same period last year, well above the growth rate for exports to the US (11.2%) or other non-US destinations (18.3%). In total, 18.2% of western Canadian exports from January to June 2011 went to Asian markets.

Leading the charge is BC. Through the first half of 2011, BC’s total exports were 14.0% higher compared to the first half of 2010. Exports to Asia, however, have risen at more than twice that rate, owing in part to strong growth in sales to China, Taiwan and South Korea.

This increase has not only helped to cement BC’s status as Canada’s largest exporting province to Asia, but, if the pattern established through the first six months hold true for the remainder of the year, BC will be the first province to reach a significant new milestone: it will export more to Asia than to the United States. From January to June 2011, BC shipped 43.2% of its merchandise exports to Asia, compared to 42.0% of sales going to the United States.

As we’re looking at just half a year’s worth of data, this feat is mostly symbolic at this point, but if the underlying trend continues, it could represent an important structural shift in how we think about the BC economy. What happens in Asia could be more important to the province’s economic outlook than what happens in the United States.

The other three western provinces are in no danger of crossing that threshold in the foreseeable future, but Asian markets continue to grow in importance for exporters on the prairies as well. Manitoba and Saskatchewan have seen increases of 39.0% and 25.4% in exports to Asia, respectively, through the first half of 2011. Both provinces now sell more than 20% of their total exports to that part of the world.

On the surface, Alberta appears to be something of an exception to this general trend. Not only are Alberta’s exports to Asia growing more slowly than any other province (7.6% through the first half of 2011), but the share of total exports going to Asia (7.5%) remains low as well. Only New Brunswick and Ontario send a smaller share of their exports to Asia.

The weakness in growth through 2011 to date is partly due to reduced sales of primary plastics and canola – two of Alberta’s largest exports to Asia. It remains to be seen if that reduction is a temporary dip or evidence of a longer-term trend.

But in terms of overall market share, Asia is far more important to Alberta than the figures suggest. Oil and gas make up more than half of Alberta’s total exports, but based on the infrastructure in place, Alberta oil and gas companies wishing to sell their products abroad have no real choice in where they can go: all roads – or, in this case, pipes – lead to the US.

Removing oil and gas from the equation gives us a chance to see where Alberta exporters sell their products when they have a choice of customer. When you do so, Alberta’s export mix begins to look a lot more like the other Prairie Provinces. In the first half of 2011, 15.7% of Alberta’s non-oil-and-gas exports went to Asia – not as much as in Saskatchewan or Manitoba, but still much higher than in any province outside western Canada.  

On Thursday, September 8, 2011, The Canada West Foundation and the Asia-Pacific Foundation are co-hosting the Canada-Asia Cooperation Conference and Dinner, which will look at the growing web of energy-related trade, investment, strategic and environmental linkages between Canada and Asia. For more details, click here.

By Tom Carson, Director of the Manitoba Office

While there remains one more hurdle—selling 13,000 season tickets within three weeks—Winnipeg appears destined to bolster western Canada's presence in the NHL by adding another team. Yes, western Canada, with almost 31% of the nation’s population will have four (or nearly 60%) of Canada's seven NHL teams.

In 1996 when Winnipeg lost its NHL franchise, several economic factors drove the end of the city's presence in the league. These issues have since been minimized throughout the years, which should secure Winnipeg’s position in the league going forward:

The Winnipeg Arena was considered to be the finest facility in western North America when it was built in 1955, when Winnipeg was Canada's third-largest city. The Arena was renovated in 1979 and expanded to accommodate 15,565 people. Owned by an agency of the City of Winnipeg, it did not provide the revenue potential that owners needed nor the modern amenities and entertainment potential expected in today's facilities. In contrast, the city's new arena (2004) is a full season multiplex owned by True North Sports and Entertainment Limited, the owners of the new hockey club. For hockey, it can accommodate 15,015 people, which is not large by NHL standards (the smallest of 30 NHL arenas ranging from 16,234 to 21,273 seats). However, size is not everything: five NHL clubs had lower than 15,000 average attendance in 2009/10, many of them were substantially lower.

The 1996 ownership of the Winnipeg Jets did not have the means to backstop the growing financial risks that came from the rising salaries and operating costs associated with NHL expansion into the US. By comparison, True North Sports and Entertainment has spent the past decade learning the market, done its due diligence and the ownership team of David Thompson and Mark Chipman has the means and knowledge to support a team in the current Western economy, provided that the fan base is as strong as Manitobans believe.

The Canadian dollar was very weak in 1996. NHL hockey salaries were paid in US dollars and in Canada, every player's salary dollar cost the club at least $1.36. Prior to the negotiations that ended the 2004/05 lockout the NHL had no luxury tax, revenue sharing, salary cap or salary floor.

Manitoba's population was 1,134,000 in 1996, and the capital region of Winnipeg was 684,100. Today, after posting its highest growth rate in 40 years, the estimated population is projected to stand at 1,250,900 with the CMA at 764,200. Although it has the smallest NHL population by at least 250,000, the region is a deeply knowledgeable and committed hockey population.

All in all, a stronger Canadian dollar, a well-designed new facility, a province more confident in its economic future, a growing population, a greater local sense of pride and a rabid fan base are all pieces of the package that make this potential NHL franchise far different from the one Manitobans lost in 1996.

By: Tom Carson, Director of the Manitoba Office

Manitobans head to the polls on Tuesday, October 4, 2011, and with only 169 days to go it is not surprising that the budget tabled on April 12 seemed designed both to benefit the largest number of interests and to create the least possible controversy.

On the revenue side, no increases are planned for major corporate or personal income taxes and expenditure increases will be sprinkled across many sectors, reaching a very broad public. These increases include the freezing of administrative costs for the regional health authorities and tying tuition increases to the consumer price index (CPI).

However, there was also some disappointment, especially for those who viewed the budget through a lens where the economy and our future spending ability is of preeminent importance. While the minister stated that overall expenditures were expected to rise by 2.3%, year over year, spending on core programs actually rose by 4.89%.

Going into the preparations for this budget, consultations generated a few hot points:

• The Business Council of Manitoba had what seemed to be an unprecedented recommendation; in recognition of the serious impact that Manitoba's infrastructure deficit has on the economy, the leaders of Manitoba's business community actually recommended a 1% increase in the provincial sales tax to be applied for a ten-year period and used only for infrastructure expenditures. This was seen as an opportunity for municipalities to deal with their infrastructure problems with a revenue source that actually grows with the economy.
• The government responded with a commitment to spend the equivalent of one point of the provincial sales tax on municipal infrastructure and public transit. This looks like a bigger commitment than it is. Rather than being incremental to current infrastructure spending, this commitment blends current grants for infrastructure and public transit. While blending both grants identifies a secure and growing source, for the City of Winnipeg it would represent an estimated 9% increase from funds they already receive. Winnipeg will benefit by having this increase funded from a growth stream, whereas previously approximately 50 to 60% was funded in this manner. Over time the value of that growth will become more obvious, however, it is not a substantial investment and will not contribute significantly to correcting the infrastructure deficit.
• Comparatively, Manitoba's universities have been both underfunded and, due to a decade-long tuition freeze which ended in 2009, prevented from using tuition increases as a means to help balance their books. The government has committed to increased grants of 5% over the next three years and has reinstituted a tuition freeze, although this time tying it to growth in the CPI. Although this commitment is not enough to bring them on par with the support received in most other provinces in Canada, it does at least begin to reflect the importance of universities to our provincial economies.
• For those hoping that the budget would reflect a major commitment to cut spending, the tone of the budget speech demonstrates that it was clearly not something the government wished to lead with. The publicly stated commitments to restraint are quite narrow—they are striving to negotiate a 0% increase for the general civil service, freeze discretionary salary and operating expenditures, maintain last year's reduction in ministerial salaries and carry on a freeze on salaries for members of the legislative assembly along with their staff. They will be attempting to freeze salaries for senior management in the regional health authorities and generally seeking ways to foster innovative, cost-effective services. (Government will likely also expect all public-sector employers to seek the same wage freeze—presenting an interesting dilemma for university administrators).
  
  

The question yet to be answered for Manitobans is whether the right policy choices are being made through the current budget. Were there alternatives which could have resulted in balancing the budget more quickly? If these choices were not made in this budget, will it be incumbent on the government formed after October's general election to initiate them?

It might be tempting to say that no government going into an election would choose to add 1% to the sales tax or to introduce themes of restraint and program redesign. However, Saskatchewan is also heading into an election in November of this year, and unlike Manitoba and most other provinces, has already posted a surplus. Both provinces saw greater revenues last year and both spent more than they had budgeted in 2010/11. Saskatchewan's revenues and expenditures have grown significantly more than Manitoba's, but their treatment of the budget challenge in 2011/12 is quite different despite the upcoming elections. While Saskatchewan plans to be spending 5.48% more than their printed estimates of last year, they will be spending 2.45% less than their actual previous year expenditures. And the untouchable—spending in the Department of Health will actually be reduced compared to the previous year.

Now, that would have raised eyebrows amongst those looking for more attention to the bottom line in Manitoba!