Federal NDP cites Alberta budget to back claims about job losses
OTTAWA – The federal New Democratic Party is citing information in Alberta’s 2012 budget to back leader Tom Mulcair’s argument that a high dollar caused by booming natural resource exports is hurting Canadian manufacturers.
A section of the provincial government’s spring budget, titled Risks to Alberta’s Economic Outlook, refers to the importance of the oilsands to Alberta’s economy.
But the report notes the province’s manufacturing sector is challenged by the high Canadian dollar, which in turn is linked to natural resource exports.
“The Canadian dollar remains elevated, buoyed by high commodity prices. An appreciation of the Canadian dollar could hurt exporters,” the report states.
In another section, the authors noted that “manufacturing companies will continue to be challenged by a strong Canadian dollar and moderate external demand,” though it added that “they should benefit from growth in energy and agricultural sectors.”
B.C. New Democrat MP Peter Julian, who accompanied Mulcair to Alberta this week, said the statements lend support to Mulcair’s notions about the socalled “Dutch disease.”
The term was first coined by the Economist magazine in the 1970s to describe problems experienced by the Netherlands, where offshore gas sales pumped up the currency and hurt manufacturers.
Mulcair has maintained that the Canadian dollar, artificially inflated by oilsands exports by companies that don’t pay the full cost of their pollution, have caused 250,000 manufacturing job losses in recent years.
Many critics have ridiculed Mulcair’s argument and suggested he’s deliberately dividing Western Canada from the rest of the country to win votes in Ontario and Quebec.
Alberta Premier Alison Redford didn’t meet with Mulcair during his visit, suggesting prior to Mulcair’s arrival that a meeting would be premature.
“Once he’s actually seen the oilsands, once he’s actually been briefed, then I’m prepared to try to have a constructive conversation with him,” she said.
While academic studies on the “Dutch disease” have resulted in conflicting results, Julian said Mulcair is supported by studies such as those by the Pembina Institute and the Institute for Research on Public Policy.
Both recent reports say the Canadian economy is experiencing milder versions of the “Dutch disease,” though neither embraced Mulcair’s estimate of 250,000 job losses.
“It reinforces what we’ve been hearing,” said Julian, his party’s natural resources critic.
But the Macdonald Laurier Institute came out with a report this week saying the oilsands is a net winner for Canada.
Conservative MP Brian Jean, who represents Fort McMurray-Athabasca, said evidence is overwhelming that the oilsands generates enormous wealth — and manufacturing jobs — across the country.
He said it appears Mulcair is backing off some of his more extreme positions and is “grasping at straws” by citing the Alberta budget.
The budget document cites positive aspects to the high dollar. “With the dollar elevated, Canadian firms have seized the opportunity to import machinery and equipment, a development that may help close the productivity gap between Canada and the U.S.”
The oilsands is described as the “key driver” of the economy.
While Alberta is known for its oil and gas industry it also has a robust manufacturing sector, dominated by petroleum products, food, chemicals, machinery and fabricated metal products, according to Statistics Canada.
The natural resources sector employed 187,000 Albertans in April of 2012 compared to 137,000 in manufacturing. By far the biggest employer, according to StatsCan, was the service sector, with roughly 1.5 million workers.