The risks of B.C. missing out on Asia’s energy demand increase the longer it takes to get projects approved in the province.
That was a warning by some business leaders at the inaugural BC Business Summit organized by the Business Council of BC.
“Conditions can change quite dramatically,” said Paulo Maia, CEO of HSBC Bank Canada. “The longer you take to develop it, the more uncertainty there is.”
Speaking on a panel about the conditions that make B.C. attractive to global investors, Maia noted that B.C.’s diverse and highly skilled population, its natural resources and its position as the gateway to emerging markets in Asia make the province a strategic location to tap some of the world’s fastest-growing markets.
“Our research suggests that by 2050, 19 of the 30 largest economies in the world will be those that are currently labelled ‘emerging,’ of which nine will be from Asia,” he said. “Boosting trade with emerging markets is essential for B.C. and must be at the core of B.C.’s economic strategy as they represent the best route to substantial future growth.”
The province is already on track to tap that growth with 30% of Canadian exports originating from B.C., even though B.C. accounts for 12.5% of Canada’s economic output. And the provincial government has been focused on tapping Asian markets to develop a liquified natural gas industry in B.C.
But more should be done from business and government to more effectively explain the significant benefits these projects bring to the various communities in B.C. Maia noted that about $600 billion in natural resource projects is being planned across Canada. A significant portion of that is being proposed in B.C. But seemingly ignored is the complementary community infrastructure like hospitals and other facilities that will support growing communities.
“They are happening because there are prospective, incremental developments in industry.”
Arnaud Soirat, president and CEO Primary Metal for Rio Tinto Alcan, said his company learned key lessons to improve engagement with the community following the failure in the 1990s of the Kemano Completion Project, an expansion of the hydroelectric facility powering its operations in Kitimat.
“We realized we should not take anything for granted. We can operate in an area as long as we have community support.”
Since then the company has invested time and resources in building better relationships. The company signed a landmark legacy agreement in 2010 with the Haisla Nation that provided the native band with training, jobs and business development opportunities.
Soirat said the agreement could provide economic opportunities for another 60 years.
He added that while the long-term prospects for Kitimat are bright, challenges remain in determining the path of long-term economic prosperity in B.C.
“Our view is that we should regard the current challenges as unique opportunities for governments, industry, aboriginal and non-native communities alike to work together in search of viable solutions. This will require all parties to display some flexibility as well as the courage to consider new approaches.” •
