Resource sector key to rebound: stakeholders

Non-profit coalition says its ‘road map’ aligns with B.C.’S desire for ‘green recovery’

Canada’s resource sector could produce as many as 2.6 million jobs and $200 billion in increased annual employment income for a POST-COVID economic recovery, according to a bold new report from a coalition of industry groups.

To do that, the report says, the right policy environment is needed, including a commitment to “evidence-science-and-outcomes-based” impact assessments and a comprehensive review of business taxation to investing in critical infrastructure.

“One of the easiest things that the federal government could do is recommendation No. 1, to leverage a world-class natural resource industry, is to publicly and vocally endorse the Canadian natural resources brand,” said Stewart Muir, executive director of the pro-resources non-profit Resource Works.

Resource Works put together a coalition of 35 industry organizations, unions, communities and Indigenous groups in April under the banner of Task Force for Real Jobs, Real Recovery to offer input to Industry Minister Navdeep Bains’ industry strategy council.

Bains has asked that council collect industry advice on the pandemic’s economic impact on Canada, so Muir believes it is the right venue through which to offer their “road map” to an economic rebound contribution, which would fit into government’s desire for a “green recovery.”

Muir argued that Canada’s resource companies are on board with the objective of reducing their carbon impact and the report’s 19 recommendations include measures such as ways to support small-scale nuclear power to help decarbonize the oilsands and mining to produce minerals for renewable energy. The Canadian economy relies on revenue from resource industries, which represent most of the top slots in its list of important exports, Muir said.

The coalition represents groups including the B.C. Chamber of Commerce, the Association of Mineral Exploration B.C., the Canadian Association of Petroleum Producers and the Indigenous Resource Network. And as a nationwide initiative, it involved the Atlantic Centre for Energy, Chemical Industry Association of Canada and Canadian Manufacturers and Exporters.

“What we tried to pick out were a number of parts of the resource industries that might actually do relatively well in the coming decade,” said Patricia Mohr, a resource economist and adviser to the report.

Mineral exploration, particularly for copper, is one of the bigger opportunities, Mohr said.

Producing hydrogen from B.C. and Alberta’s substantial reserves of natural gas, combined with big investments in carbon capture and storage, is another.

Some key recommendations:

■ Leverage Canada’s world-class resource industries: Endorse the “Canadian natural resources brand.” Work in partnership with industries to improve policies, processes and regulations.

■ Attract capital investment to boost recovery. Conduct a comprehensive review of Canada’s business taxation environment. End federal taxation of provincial and municipal stimulus incentives.

■ Maximize Indigenous economic participation. Procure at least five per cent of goods and services from Indigenous-owned businesses.

■ Develop a Canadian hydrogen industry.