Activities report

24 Pages·1995·3.7 MB·English

by  Alberta Economic Development Authority

AL-M^IS
AEDA Milestones
2005-06 Building a G reat Future for Alberta, a vision for 2020
Alberta Tax Review
Transportation study update
Global Business Forunn 2005
2004-05 Mega Project Excellence: Preparing for Alberta's Legacy
Input into Alberta's Rural Development Strategy, A P lace to Grow
Global Business Forum 2004
2003-04 Urgent Call to Action, Jobs for the Future Committee report
The Transportation Sector in Alberta: Present Position and Future Outlook
National Symposium on Regional Economic Development Best Practices
Global Business Forum 2003
2002-03 Capturing the Power of Innovation, joint AEDA and ASRA report on access to capital
Jobs for the Future Committee established
Transportation industry study commissioned
First Provincial Conference for Regional Economic Development Alliances
Global Business Forum 2002
2001-02 Advisory Committee for Alberta Future Summit
Recommendations on value-added agriculture industry
Input to review of Federal Aviation Regulation
International marketing missions review
2000-01 A S trategic Vision and Direction for Alberta's Forest Sector
Preparing for Alberta's Tourism Future
Stakeholder consultations on the Canada Transportation Act
Alberta Aviation Strategy
Small business services review
Recommendation on implementation of the Personal Information Protection
and Electronic Documents Act
Inaugural Global Business Forum
1999-2000 Progress report on Building the Alberta Advantage
Alberta Forest Industry Conference
Climate Change Round Table
Input on Alberta International Marketing Strategy
Building Self-Reliant Communities
1997-98 Building on the Alberta Advantage
Messages from the Chairs
How We Have Prospered 4
Looking at the Future 5
A S trong Team 6
Growth and its Challenges 7
Building on Prosperity
Sustaining Wealth Creation: The Alberta Tax Review 9
Maintaining Competitiveness: Mega Project Excellence 10
Keeping up to Economic Speed: Transportation for the Future 1 1
Investing in People: Response to An Urgent Call to Action 1 2
A V ision of the Future: Alberta in 2020 14
Conclusion 16
Global Business Forum 2005 17
19
AEDA Members
Message from the outgoing Chair
How We Have Prospered At the Alberta Economic Development
Authority, we are proud of our contribution
In 1993, the year before the Government of to Alberta's turnaround. Established as
Alberta created the Alberta Economic Devel- part of the strategy to find the best ways
opment Authority, Alberta was at one of the to renew prosperity, the Authority has
lowest points in its economic history. With brought together leaders and innovators
unemployment at nearly 10 per cent, and an from all walks of life to study issues,
accumulated provincial debt of almost $23 consult with experts, debate ideas
billion, the future looked bleak. and make recommendations to the
provincial government on key economic
concerns, such as taxation, labour market
It's hard to believe that in 12 years Alberta
has come so far. individual Albertans enjoy development, infrastructure, access to
the highest personal income in the country, capital and international marketing. We have
and there are more jobs than can be filled. done so with the support and confidence of
The government has eliminated its debt, the government, the business community
and has a h ealthy bank account: a t otal of and academia. This broad base of support
$27 billion dollars in various savings and and input allowed us to anticipate, well in
endowment funds. Record numbers of advance, the challenges and opportunities
people are coming to our province. this province faced, and suggest
appropriate responses.
This renewed prosperity is no accident. It's
the product of tough fiscal discipline, a I e njoyed being a p art of that work,
commitment to reform, and a f ocus on both especially during my time as Chair of
current and future needs. There have been the Authority. However, the job is not
difficult moments, requiring hard decisions done. Alberta has come a l ong way, and
on how to best use public resources,
it d oesn't want to go back. Challenges
especially when those were scarce. But and opportunities are being created by
thanks to dedicated Albertans, like the population growth, industry growth and
people I h ad the pleasure to work with as
a changing world. Sustaining Alberta's
chair of the Alberta Economic Development economic fortunes and a h igh quality of
Authority, and a g overnment that listened, life for Albertans continues to be a p riority
the province has entered a p owerful new era. for the Authority. We remain dedicated to
Alberta's future.
Looking at the Future well-educated population. As Albertans,
we benefit from a f iscal and regulatory
Dateline: September 1, 2020 environment that encourages investment
and innovation. The last dozen years have
"Prosperity was both a b oon and a b urden,
and it l eft Albertans and their government given the province a strong foundation for
with important questions. Could Alberta
the future. They've also seen AEDA produce
seize the opportunity and sustain its eco- ideas and tools to guide decisions for
nomic performance over the long term? the future.
Could it t ransform its wealth into a h igher
quality of life for all Albertans? Could Alberta For example, in the last few years, the
Authority has developed and updated
become a l eader in Canada and globally?"
recommendations for building a strong
transportation infrastructure to meet the
- f rom Building a G reat Future for Alberta,
Alberta Economic Development needs of an expanding economy. Those
Authority, 2006 recommendations deal with both immediate
needs and anticipated demand as the
Alberta is working at full steam. That's a province grows. Our review of the labour
great thing, but it g ives us something to situation led to recommendations on a
think about. So much time and energy is long-term labour force strategy. Our Fiscal
going into keeping this province going that and Regulatory Committee has developed
recommendations for the tax system,
it's hard to find any to devote to preparing
for the future. designed to keep our businesses globally
competitive and to support innovation across
Yet it is an essential business practice to all sectors of the economy. Mega project
think about the future and balance current development was also analyzed, generating rt
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demands with longer term objectives. ideas to improve future planning by both yR e p
With that in mind, the Alberta Economic government and industry. it
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aD e vvieslioonpimneg n te xe rAcuitsheo,r i ptoys i (nAg E DqAu)e s tuinodnesr taobooku t At AEDA, we've developed a h abit of looking 06A c ti
where we go from here. Prosperity has ahead. That habit allows the governmient to 0
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brought opportunity. It's also highlighted benefit from strategic and in-depth advice, 05
some recurring challenges, like how to supplied by people in both the private and 20
ensure that all Albertans benefit, how to use public sectors representing every facet of the
our current economic strength to build long- economy. We've thought about what the
term, sustainable growth and prosperity, and future holds, and our ideas can help turn
how to support continued growth. challenges into opportunities. As Chair of the
Authority, I l ook forward to providing further
Our province is in an enviable position, timely and focused advice to help keep our
with low taxes, abundant resources and a
province economically vibrant. We're ready.
The Alberta Economic Development Authority
AEDA's six standing committees focus on
(AEDA) is a unique private and public the primary challenges facing Alberta. Those
organization focused on building the long- include maintaining our enviable fiscal
term economic performance and prosperity of position, making the best use of provincial
Alberta. Members — including business people, resources for the future and meeting the
government representatives and academics — demands of economic and population
work as a t eam to design strategies, review growth. Since 1994, the standing committees
government policy and advise the government have helped build a stronger Alberta
on issues related to business competitiveness through research and recommendations on,
and economic development. In addition, among other things, taxation, education,
activities like the Global Business Forum and infrastructure, international marketing
regional development workshops create and rural and regional development. The
opportunities for business owners and leaders knowledge and experience of committee
to share ideas, expertise and best practices. members help ensure government policy
reflects and responds to Albertans' priorities.
Fiscal and Regulatory Committee Labour Force Committee
Develop the human resources essential to
Improve Alberta's business environment,
focusing on fiscal and regulatory issues. Alberta's future growth and prosperity.
Business Development Committee Transportation Committee
Improve the growth, innovation and Ensure Alberta's access to domestic and
global markets through efficient and
productivity of Alberta's resource,
manufacturing, new economy effective transportation and distribution.
and service sectors.
Regional Development Committee
International Business Committee Support the development and activities
Expand Alberta's international export and of regional partnerships and alliances
investment opportunities. within Alberta.
www.alberta-canada.com/aeda
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Growth and its Challenges
One word describes Alberta in Investment grew, to $60.3 billion in 2005
2005-2006: GROWTH from $50.8 billion in 2004. Per capita
investment rose from $1 5,843 to $18,403.
Our economy grew. GDP increased by 4.5 In comparison, per capita investment
per cent in 2005, and is now expected to in Canada is $ 8,220. Public and private
grow by 7.0 per cent in 2006 and 5.0 per investment is anticipated to top
cent in 2007, outperforming both the rest $70 billion in 2006.
of Canada and the United States. Real GDP
per hour worked, a measure of productivity, Investment is driving the demand for
was $40.63 in Alberta in 2005, the highest workers. Employment grew, as did wages
in Canada and well above the Canadian and salaries. The first ten months of 2006
average of $37.32. saw 102,000 new jobs created, compared to
27,000 jobs for all 2005. Our unemployment
Exports grew. In 2004, we shipped $74.4 rate for 2006 is 3.5 per cent, compared to
billion in g oods and services abroad, 6.3 per cent for Canada. The new jobs are
including $18.3 billion in manufactured being filled by strong migration. The influx
shipments. In 2005, goods and services of workers has pushed our population to
exports exceeded $86 billion, including more than 3.4 million people. By August
$19.5 billion in manufactured shipments. 2006, the average weekly earnings of
In the first eight months of 2006, Albertans were $797 in 2005, up from $769
manufacturing shipments increased by 1 1 .4 in 2005 and above the Canadian average
per cent compared to the same time period of $747. Personal and corporate taxes t
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in 2005. Our major manufactured exports remained the lowest in Canada. Median o
were chemical products, food and beverages after tax income for a f amily of two or yR e p
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and industrial machinery and equipment. more was $61,800 in Alberta, compared to v
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$54,100 for Canada. 6A c t
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Growth and its Challenges (Continued)
Housing and retail sales grew in tandem several sectors, limiting potential growth.
with jobs and incomes. Housing starts rose The number of major projects underway
from 36,270 in 2004 to 40,847 in 2005. in the province, with the attendant need
Retail sales went from $43.3 billion to for skilled workers and materials, is p utting
$48.8 billion. pressure on time and cost estimates.
However, growth is creating challenges for Over the next several years, Alberta
public and private sector decision makers. must meet the challenges of managing
The inflation rate rose to 2.1 per cent in growth, setting the conditions to make it
2005, from 1 .4 per cent in 2004, and is sustainable, and preparing for growth as
expected to be in the 4 p er cent range for a recurring feature of life in Alberta.
2006. Labour shortages are appearing in
Value of Alberta Manufacturing Ship^ Total: $60.3 Billion
Chemical Products 13.0
Refined Petroleum
Food & B everage
*Forest Products
Machinery
Fabricted Metals
Primary Metals
Construction materials
Plastics
**Electronics Products
Furniture & F ixtures
other
$ B illions
10 14
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* I ncludes wood and pulp & p aper Industles ** Includes telecom equipment Source: Statistics Canada
Building on Prosperity
Our current economic strength presents an ■ Increase the income threshold levels for
historic opportunity to create a climate for health care premium subsidies, matching
long-term growth. In our work in 2005- them to the personal tax exemption.
2006, the Alberta Economic Development ■ Introduce a p artially refundable
Authority looked at the foundations of a provincial innovation tax credit for
sustainable economy, keeping the focus business research and development of
on tax, management, infrastructure and 1 7 p er cent for small businesses and 1 4
labour force development strategies that per cent for large businesses. Currently,
only Alberta and Prince Edward Island
will support Albertans' goals both now
and in the future. do not provide specific tax incentives
to encourage business research and
Sustaining Wealth Creation: development.
The Alberta Tax Review
All the recommendations are designed to
AEDA's Fiscal and Regulatory Committee led
create a competitive tax environment for
a review of Alberta's tax regime, focused
on the critical question of "How does Alberta. They maintain a b road-based, low-
Alberta keep and attract the combination of rate tax policy, provide more equity in the
innovation, and human and financial capital tax system for low- and moderate-income
Albertans and support increased investment
required to sustain wealth creation?" The
Committee examined both business and in innovative companies, emerging firms and
personal taxes. value-added economic development.
The resulting four recommendations In the provincial budget of March 22,

focused on creating a climate that remained 2006, the Government of Alberta acted on rt
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making Alberta a more attractive place to live basic personal, spousal and eligible iv
for the workers needed to support economic dependant tax credits to $14,899, up from 6A c t
growth. The recommendations were: $14,523 in 2005 and increased the income 00
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■ Reduce the general corporate income tax threshold for partial Alberta Health Care 5-
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rate from 1 1 .5 per cent to 1 0 p er cent. Insurance premiums by $5,000. AEDA looks 0
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■ Increase the basic and spousal personal forward to further work on implementing
income tax exemptions to $17,999 and the remaining tax changes we advocate.
reduce the personal income tax rate
from 10 per cent to 9.5 per cent.
Building on Prosperity (Continued)
Maintaining Competitiveness: Industry and government are working
Mega Project Excellence on a number of initiatives to meet these
In May 2004, the Government of Alberta
priorities. The government's Hydrocarbon
asked AEDA to examine ways to promote Upgrading Task Force is building a b usiness
mega project excellence within the province. case for bitumen upgrading expansion, a
Mega Project Excellence: Preparing for key area of potential energy development.
The Construction Owners Association of
Alberta's Legacy, released the following
December, identified five areas for action: Alberta is developing tools to increase
leadership; management of projects; labour; efficiencies and is w orking with government
infrastructure; and communications ministries on initiatives to enhance mega
and outreach. project excellence. The idea of a Project
Management Centre of Excellence is being
Those areas provided the focus for explored. The government has released
discussion at a Mega Project Stakeholder a new 10 year labour force development
Forum held June 27, 2005. At the forum,
strategy Building and Educating Tomorrow's
stakeholders identified priority actions in Workforce. One of the key goals is to attract
each area. Among those were; more immigrants and temporary foreign
workers to address labour force needs.
■ establishment of a cross-Ministry
committee for energy development; Another major focus is to develop and train
■ defining parameters for a Project under-utilized groups of Albertans, such
Management Centre of Excellence; as women, seniors. Aboriginals and youth.
■ developing common benchmarking Government has also funded significant
and databases for project management infrastructure projects in Fort McMurray, and
decisions; established a C abinet Committee to look at
■ developing long- and short-term the needs of the Wood Buffalo region.
strategies to increase labour supply,
including reducing barriers for foreign AEDA supports government and industry
workers; initiatives to facilitate mega project
■ developing a community plan for Fort excellence. Oil sands development will
McMurray and a social infrastructure
be a crucial contributor to Alberta's
plan for the Wood Buffalo region; and economic growth for decades to come.
■ creating a communication strategy on Investing in excellence is investing in our
the importance and value of oil sands future prosperity and global leadership in
and energy development. an increasingly important area of energy
development.