‘Petro-currency’ limiting Canada’s economic growth: report
Current federal and provincial policies around oil sands expansion show a “lack of economic foresight that may ultimately limit Canada’s long-term competitiveness,” says a new report made public Wednesday.
The report by The Pembina Institute and Équiterre Centre for Sustainable Development blames the oil sands for pushing up the Canadian dollar — “petro-currency” — which in turn has led to the so-called Dutch Disease that has contributed to the ills of Quebec and Ontario’s manufacturing sectors.
“We are definitely not saying the oil sands need to be shut down,” Sarah Dobson, one of the lead authors of the report, said in an interview. “We are advocating for responsible development of the oil sands that’s going to maximize the value of the resources over time. “
The Pembina report examines the economic merits of the oil sands — leaving environmental impacts aside — and concludes the Canadian dollar’s rise due to energy exports is playing a key role in making central Canada’s manufacturing bases less competitive.
The booming oil sands — fuelled by what the report calls preferential tax treatment — is also making it difficult for companies outside of the resource sector to attract workers, the report notes.
“The high demand for skilled and unskilled labour in Alberta drives up wages on average since 2008, the per capita income differential between Alberta and the rest of Canada has stood at over $12,000. This high wage differential attracts new workers to Alberta, diminishing the labour supply in other provinces.”
‘Petro-currency’ limiting Canada’s economic growth and competitiveness: report | Financial Post
Current federal and provincial policies around oil sands expansion show a “lack of economic foresight that may ultimately limit Canada’s long-term competitiveness,” says a new report made public Wednesday.
The report by The Pembina Institute and Équiterre Centre for Sustainable Development blames the oil sands for pushing up the Canadian dollar — “petro-currency” — which in turn has led to the so-called Dutch Disease that has contributed to the ills of Quebec and Ontario’s manufacturing sectors.
“We are definitely not saying the oil sands need to be shut down,” Sarah Dobson, one of the lead authors of the report, said in an interview. “We are advocating for responsible development of the oil sands that’s going to maximize the value of the resources over time. “
The Pembina report examines the economic merits of the oil sands — leaving environmental impacts aside — and concludes the Canadian dollar’s rise due to energy exports is playing a key role in making central Canada’s manufacturing bases less competitive.
The booming oil sands — fuelled by what the report calls preferential tax treatment — is also making it difficult for companies outside of the resource sector to attract workers, the report notes.
“The high demand for skilled and unskilled labour in Alberta drives up wages on average since 2008, the per capita income differential between Alberta and the rest of Canada has stood at over $12,000. This high wage differential attracts new workers to Alberta, diminishing the labour supply in other provinces.”
‘Petro-currency’ limiting Canada’s economic growth and competitiveness: report | Financial Post
