Canada West Foundation Blog

By: Dr. Roger Gibbins

Throughout 2011, Canadians took comfort in the fact that as the world around them seemed to go to hell in a hand basket, life was pretty good here at home. Although the Canadian economy sagged a bit, it held up well by comparison with our major trading partners. Stock markets rebounded, employment did not plummet, and across western Canada there was real economic growth and widespread prosperity.

Unlike the political deadlock and acrimony that has become increasingly characteristic of political life south of the border, Canadian governments enjoyed reasonably strong electoral support and, for better or for worse, we have been freed from the paralysis of minority governments in Ottawa. All in all, 2011 goes down as a pretty good year for Canada admidst a general international environment of uncertainty and unease.

Nonetheless, it is difficult to look forward to 2012 with anything close to unbridled optimism. Economic and political conditions in the United States, still our major market for virtually anything we produce, are unlikely to improve as Americans lurch toward the November elections. Economic conditions in Europe remain grave. Closer to home, western Canadians face huge challenges in moving resource assets to new international markets while at the same time, American markets are soft and/or overflowing with conventional Canadian products such as natural gas.

So often western Canadians believe that we have the resources the world needs, and assume the world will beat a path to our doors. Quite understandably, resource wealth breeds complacency. Increasingly, however, we realize that we will have to do much of the beating, that our competitors are many and often better positioned geographically, and that the barriers to international market access are challenging in the extreme. Being resource rich in the absence of markets is not a recipe for sustainable prosperity.

In 2012, Canadians from across the country will also have to come to grips with growing regional imbalances within the national economy, and how these play out through the frameworks of fiscal federalism and in a period of growing financial constraints for all governments—federal, provincial and municipal. On balance, western Canadians are doing very well, but how do we reconcile regional prosperity here with more disadvantaged regions of the country? How do we ensure that regional economic strength is encouraged as a national asset, and not seen as a target?

None of this means that Canadians should be fearful when looking ahead to 2012. At the same time, we will face some truly intimidating policy and political challenges as we try to re-jig the Canadian federal system and national economy to meet unstable and rapidly changing global conditions. The upcoming year will not be a time for the faint of heart, or a time for complacency. But then, to quote the last words of Australian bushwhacker Ned Kelly as he stood on the scaffold, such is life. Or, in the more current vernacular, bring it on!

On behalf of the Foundation, I would like to wish you all the best for the holidays. Thank you for your engagement over the past year. As 2012 approaches, we look forward to continuing our work as the only think tank dedicated to being the objective, nonpartisan voice for issues of vital concern to western Canadians.

A new publication released by the Canada West Foundation illustrates Canada’s current energy reality and highlights opportunities for a bright energy future.

Catching a Rising Tide: A Western Energy Vision for Canada by Sheila O’Brien and Shawna Ritchie, draws from one-on-one conversations with 50 leading western Canadian experts in energy and the environment who share their vision for energy. Energy has been an important centerpiece in public policy discussions for the last half-century, conversations which are now part of a global debate.

“Western Canada has expertise in the production of various energy resources, but we have also had to address the need for sustainable and responsible development and the reality of unequal resource distribution—making our energy reality a microcosm of global energy production,” notes authors O’Brien and Ritchie. “This gives western Canada’s vision for energy particular importance in national discussions about where energy should and could go in the future.”

Canada has the opportunity to become a supplier of choice for energy products, services and expertise, supported by environmental and social records that define our values as a nation and give us a stronger voice internationally. However, achieving this vision will be a challenge for all Canadians regardless of where they live. As the Foundation’s President and CEO, Dr. Roger Gibbins explains, Catching a Rising Tide, “provides a model for western Canadian thought leadership on the big national policy issues of the day, setting out creative options rather than narrow prescriptions.”

To purchase a copy of Catching a Rising Tide: A Western Energy Vision for Canada, click here.

With increasing food and energy prices, a growing world population and the potential effects of climate change, water—and how it is managed—is more important than ever. A new publication by the Canada West Foundation delves into the views of water policy experts across the West to determine key highlights and priorities for our water future. 

Wave of the Future: Water Policy in Western Canada by Dr. Roger Gibbins and Larissa Sommerfeld highlights viewpoints from over 50 individuals across the West with a background in water management, governance or the study of water, brought together by the Canada West Foundation for the Honourable James A. Richardson Discovery Roundtables. As a result of these discussions, it was obvious that water experts have similar priorities.

“Canada needs to take a long-term approach to planning water policy,” advises Dr. Gibbins. “In addition to ensuring that policy developments progress in a timely matter, we also need to appropriately value this natural capital while increasing public awareness about water issues.”

Our water has the potential to be a challenging issue for western Canada in the coming years, yet the participants at the spring 2011 James A. Richardson Discovery Roundtables shared a general sense of optimism. Although there are challenges that lie ahead with this resource and how we can best manage it, decision-makers should recognize that addressing any one of the priorities highlighted will be a step in the right direction.

The Honourable James A. Richardson Discovery Roundtables were launched in 2006 to seek out new thinking to strengthen the voice of western Canadians and gain a sense of policy challenges to come. The annual roundtables are designed to engage a small group of individuals with a background in, and a passion for, the topic under discussion. In the spring of 2011, the Roundtables featured water and were held in Victoria, Lethbridge, Saskatoon and Winnipeg. 

Click here to download a copy of Wave of the Future: Water Policy in Western Canada.

By: Dr. Roger Gibbins

When the federal, provincial and territorial energy ministers met over the last two days in Kananaskis, Alberta, they faced a surprisingly vocal and concerted call by industry associations, environmental groups, think tanks, editorial commentators and even some of their own members for a Canadian energy strategy.

But, when the ink finally dried on the official communiqué, there was no mention of a Canadian energy strategy, only much softer language around a “collaborative approach” to energy.

As one voice in the chorus calling for the creation of a Canadian energy strategy, I was initially disappointed that the energy ministers had pulled up short. However, the documents released by the ministers outlined a shared vision for greater pan-Canadian collaboration, a guiding set of principles, a comprehensive list of key objectives, and action plans.

In short, most of the components of a Canadian energy strategy are there, albeit clothed in the language of “collaboration.” The ministers have set the stage for an expanded national conversation on energy policy, which is precisely what the advocates of a Canadian energy strategy had hoped to achieve.

To adopt the old cliché, if it walks like a duck...it is probably a duck, or in this case, a Canadian energy strategy. The ministers have delivered, and should be forgiven the awkward language that the realities of Canadian federalism impose on any policy debate. The fact is there is a consensus that a collaborative, pan-Canadian approach to energy should be achieved and although the words may be more subdued, it still sounds like a Canadian energy strategy to me. Good progress has been made.

Read the 2011 Energy Communiqué.
Visit the 2011 Energy and Mines Ministers' Conference page.

Dr. Roger Gibbins is President & CEO of the Canada West Foundation and attended the Energy Ministers’ Meeting in Kananaskis.

On June 29th, 2011, the Calgary Chamber of Commerce and Canada West Foundation released the research report Changing the Climate: A Policy Framework for Canada’s New Energy Environment. The report is the product of a series of high-profile events by the same name, focused on energy, the environment and the way forward for Canada.

Changing the Climate emphasized three main priorities for a robust Canadian energy strategy:

• Strengthening Canada’s energy relationship with the United States and with Asia Pacific markets;
• Driving continuous improvement on environmental performance across the energy system without adversely impacting the economy; and
• Building cooperation across the Canadian federation on energy issues.

“A Canadian energy strategy must respect the constitutional division of powers and responsibilities for energy development between the federal government and the provinces and territories,” said Dr. Roger Gibbins, President & CEO of the Canada West Foundation. “Canada’s regions have unique energy circumstances; however, there is potential for shared action.”

Critical action areas that a Canadian energy framework needs to address include intergovernmental collaboration; regulatory enhancement; environmental performance; national carbon management; energy efficiency; energy market diversification; energy sector innovation; and workforce issues in the energy sector.

The greater series brought together thought leaders from business, government and the broader community in the United States and Canada to discuss and analyze energy and environmental policy issues critical to Canada’s future.

Changing the Climate was released in anticipation of the 2011 Energy and Mines Ministers’ Conference, hosted by Alberta from July 16 – 19, 2011, where the topic of a Canadian energy strategy will be discussed.

To download Changing the Climate: A Policy Framework for Canada’s New Energy Environment, click here.

Latest research conducted by Canada West Foundation has identified broad agreement that a well designed Canadian energy strategy would contribute to a secure and prosperous future for Canada.

Finding Common Ground: The Next Step in Developing a Canadian Energy Strategy by authors William Kimber, Vice President, Research and Dr. Roger Gibbins, President & CEO, was released today as part of the Canada West Foundation’s Powering Up Project.

Between 2009 and now, a wide range of stakeholder groups including: the energy industry, environmental organizations, leaders of Canada’s top enterprises and policy experts in academia and think tanks have released papers and statements calling for reform of Canada’s energy policy framework.

The Common Ground paper is the first to provide a synthesis of these various initiatives and points of view, and identifies eight interconnected themes from this impressive body of work. These common themes are:

• embrace Canada’s energy diversity as a strength;
• ensure robust environmental stewardship;
• set a price for carbon;
• transform the demand side of the energy system;
• strengthen Canada’s position in the world;
• promote energy security in the North American context;
• drive innovation and technological development; and
• understand that strategy is a dialogue.

“The research shows that there is much that diverse stakeholders across Canada can agree on.” Co-author Will Kimber commented. “The common view is that we need an energy strategy for Canada, and we need it now.”

While impressive progress has already been made, there is much more work to be done. The report therefore proposes three next steps to ensure that momentum for policy reform is not lost.

To download Finding Common Ground: The Next Step in Developing a Canadian Energy Strategy, click here.

A new paper released through the Canada West Foundation’s Going for Gold project examines western Canada’s current trade relationship with Asia-Pacific and explains how these markets offer tremendous opportunities for economic growth and prosperity in the West, now, and in the years to come.

Through the Gateway: Unlocking Western Canada’s Potential for Economic Diversification by Expanding Trade with Asia-Pacific by author Michael Holden, Senior Economist provides the background and the numbers that show the importance of this region to western Canada’s economic prosperity. With Asia-Pacific being home to over half the world’s population and exports from the four western provinces to the region accounting for two-thirds of Canada’s total exports (totalling 9.6 Billion in 2009,) Asia-Pacific is second most important, only to the U.S.

“The research shows the importance of Asia-Pacific, not only to western Canada’s economic prosperity, but for Canada.” Canada West Foundation’s President and CEO, Dr. Roger Gibbins explains. “Considerable opportunities exist for western Canada if we take advantage of them and successfully reduce the barriers to trade and investment.”

The report describes two ways in which trade with Asia-Pacific countries promote economic diversification in western Canada 1) export market diversification and 2) export product diversification.

This publication was released at the Through the Gateway event, which was sponsored by the Vancouver Board of Trade on February 22, 2011.

All in attendance received a summary copy of the report. To download the summary report, click here.

To download the full report of Through the Gateway: Unlocking Western Canada’s Potential for Economic Diversification by Expanding Trade with Asia-Pacific, click here.

On Monday, January 17th 2011 in Calgary, Corporate Knights Magazine teamed with the Energy Policy Institute of Canada (EPIC) to invite key thought leaders to discuss the significant challenges facing the economy, energy, and the environment. They focused on the following question: Most Canadians expect that we all will eventually transition from carbon-based to low carbon energy. Given that the transition will take years, how can we best manage it?

While initiating change is one of the focuses of a Canadian energy strategy, decision makers must be cautious to ensure that proposed changes are attainable and sustainable. Dr. Roger Gibbins, President and CEO of the Canada West Foundation, is in favour of improving methods for handling our resources. “The prescription going forward is very simple, alarmingly simple. That is we have to continue doing what we do best only do it better, and much better, going forward." (Paul Wells, Daily Oil Bulletin January 17, 2011.)

In addition to building attainable goals, measuring environmental consequences should be considered when discussing an energy strategy. Preston Manning feels that, “The first principle should be proper measurement of the environmental impacts of all our major energy sources, not just oilsands within the petroleum sector. There's an old saying: 'If it matters, measure it.' I don't think we measure the environmental impact right across the board to the degree that we need to." (Wells) By measuring environmental impact in all aspects of energy, not only the oilsands, we will be able to obtain a more comprehensive look at our energy environment.

Marlo Raynolds, senior advisor to the Pembina Institute expressed the importance of reviewing our consumption, "I do think it has to focus and hit the greenhouse gas emission head on ... I don't see why we would move into strategy discussions around energy without really addressing the need for deep reductions." (Wells) While a greater understanding of more efficient processes and better tools to measure their impact will help us become more efficient, we must also focus on how we can reduce our reliance on carbon-based energy to ensure long-term success.

Regardless of the main driver behind a Canadian energy strategy, Dr. Gibbins supports the notion that a Canadian energy policy must focus on Canada’s strengths, one of which is Canada’s ability to make improvements on existing technology, "We will be the solar power panel installers," he said. "We won't design them. We won't build them." (Dan Healing, Calgary Herald January 18th 2011.)

"Our role going forward is not to figure out how to transition away from hydrocarbons—the world will be working on that. What we have to do is figure out how to get better—much better—at the green production of hydrocarbons." Gibbins said. (Wells)

The suggestions from the roundtables in Toronto, Montreal, Calgary and Vancouver will be taken into consideration as EPIC creates a proposal to the federal and provincial governments for a Canadian energy strategy.

The Canada West Foundation has multiple initiatives focused on driving constructive discussion about energy policy and Canada’s energy future under the Powering Up for the Future Project. In November 2010, the Canada West Foundation published Western Leadership for a Canadian Energy Strategy, which outlined the need for reform of current Canadian energy policy, along with the principles upon which western leadership for a Canadian energy strategy should rest.

A new project, Let’s Talk Energy, is built around a series of short articles authored by Nexen Executive-in-Residence, Michael Cleland. The purpose is to get people talking about whether Canada needs an energy strategy, and if so, why and what ideas should inform such a strategy. The discussion and debate on this website may also serve to be relevant to Canada’s energy ministers when they meet in Kananaskis, Alberta in July 2011. For more details see letstalkenergy.ca.

Articles referenced:
“Debate on National Energy Strategy Wide-Ranging” Paul Wells, Daily Oil Bulletin (January 17, 2011)
“Don’t count on officials for coherent energy policy: experts” Dan Healing, Calgary Herald (January 18, 2011)

by Dr. Roger Gibbins, President and CEO

Although Santa and his Elves are still hard at work, the public policy world  is starting to nod off. Parliament has adjourned (but not prorogued!) and policy wonks everywhere are catching their breath, maybe even a nap, after a busy fall.

It is an opportunity, therefore, to wish everyone all the best for the holiday season, and for the new year that will soon be upon us!

Certainly the past year was a busy one for the Canada West Foundation as we launched new work on energy policy and released a strategic vision for western Canada, and thus for Canada. We also increased our staff capacity both to do more and to ensure that the work we produce has the greatest possible impact. We are not only "all reved up" but, with the strategic vision in hand, we definitely have somewhere to go.

This increased capacity will be tested in 2011 as we celebrate the Foundation's 40th Anniversary. This celebration will be marked by an aggressive energy research program, an expanded water policy agenda, and a return to the challenges of economic diversification in light of a resource boom and the growing impact of the Asia-Pacific economies. As Canada's gateway on the Asia-Pacific region, western Canada will be fully exposed to a tremendous range of opportunities and challenges.

In closing, let me thank you for your engagement with the Canada West Foundation over the past year. Your interest and support are greatly appreciated. All the best for the holidays, and for the year to come.

by Roger Gibbins

Today the Canada West Foundation released a comprehensive study of tax reform options for Saskatchewan.  A Tax Framework for Saskatchewan’s Continuing Prosperity was commissioned by the Saskatchewan Chamber of Commerce, the Institute of Chartered Accountants of Saskatchewan, Association of Saskatchewan REALTORS®, Certified General Accountants of Saskatchewan and the Certified Management Accountants of Saskatchewan. It can be found at here and at www.sasktaxplan.ca

This report comes in the wake of sustained, even dramatic growth in the Saskatchewan economy, conditions often associated with the opportunity for tax cuts. However, given the inherent volatility of a commodities-driven provincial economy, the report focuses more on what is taxed, how it is taxed and by whom (provincial or municipal governments) than it does on tax rates. Getting the tax system and its incentives right will contribute more to Saskatchewan’s competitive position than will tax rates themselves.

The report was prepared at a time when the newly harmonized sales tax was facing a populist revolt in BC, when the government of Manitoba dismissed the possibility of a Manitoba HST, and when Alberta had no provincial sales to harmonize. Given this competitive environment, the report explores a variety of alternative ways to meet many of the HST goals without directly endorsing harmonization.

At the present time, it should be stressed, Saskatchewan’s tax system is not wildly out of line with its provincial competitors in western Canada. Nonetheless, the report provides a number of options for further improving Saskatchewan’s competitive position.

On a different front, the Foundation continues to staff up for Powering Up for the Future, a major multi-year project on the western Canadian energy system. Mike Holden, our new senior energy economist, has been recruited from the Library of Parliament; and three Executives-in-Residence and a Research Associate have been recruited to help craft and animate the project’s policy research agenda. Mike Cleland comes to the Foundation from the Canadian Gas Association, Sheila O’Brien and Barry Worbets from extensive careers in the oil and gas industry, and Jeff Reading from the City of Calgary.

An impressive team is in place, and work is already well under way on the potential impact of unconventional gas on the political landscape in North America, the challenges of reaching Asia-Pacific markets, the opportunities and challenges posed by the emergence of the new energy economy, and the role that western Canadians can and should play in shaping a Canadian energy strategy.

The Foundation is also preparing a comprehensive atlas of the western Canadian energy system—State of the West: Energy will be released in the spring of 2011—and within a few weeks will go into the field with a national survey of public attitudes towards energy and environmental policy issues.

There is no doubt that 2010 will go out with a bang, not a whimper!