Takeaways from the Saskatchewan Chamber of Commerce’s Business Conference
By Martin Charlton Communications
Canada is at an inflection point and, if our nation is going to keep up in the world, we’ll have to make some important choices that will determine the quality of life that future generations will enjoy in this country, according to Goldy Hyder, speaking to a crowd of business leaders gathered in Regina.
Hyder is the president and CEO of the Business Council of Canada. He spoke at the Saskatchewan Chamber of Commerce’s Business Conference in May, delivering a presentation titled, “Building Our Future: A Call to Action.”
The Business Council of Canada supported and contributed to the report by the Canada West Foundation (CWF), From Shovel Ready to Shovel Worthy: The Path to a National Trade Infrastructure Plan for the Next Generation of Economic Growth. The Western Canada Roadbuilders and Heavy Construction Association (WCR&HCA) helped initiate the report, which was endorsed by numerous associations and organizations concerned with the current investment, the lack of coordination (and planning) on a long-term strategy and the state of the federal trade corridors fund.
When the Shovel Ready report was released last year, Hyder said, “Strategic investments in infrastructure – including roads, bridges, airports, rail lines and port facilities – are essential to helping businesses compete, grow and create more jobs for Canadians.
“In a world where our supply chains are increasingly exposed to geopolitical risks, Canada needs strong transportation and trade corridors so that it can supply the world with the products it needs to achieve both our economic and environmental goals,” said Hyder.
During his speech in Regina, Hyder said the world will not wait for Canada. He explained his appreciation for Western Canada, where “you can see the economy in action” with people working hard to produce fuel, fertilizer and food to supply the world. He described Western Canadian people as those who solve problems and bring about positive change. There is a bounty available across the prairies, he said, pointing out the potash, oil and gas, uranium and agricultural technology that is produced here.
Hyder is concerned about how we move those goods through the country and beyond to the world markets, and he wonders whether it is possible to build and support all the infrastructure required by the country to be competitive on the world stage – the highways, bridges, ports, rail terminals, electrical grids and more. He described this infrastructure as forming “the arteries of our economy” and being the “heart and soul of moving things around.”
“In a world where our supply chains are increasingly exposed to geopolitical risks, Canada needs strong transportation and trade corridors so that it can supply the world with the products it needs to achieve both our economic and environmental goals.”
– Goldy Hyder, Business Council of Canada
Constructing this infrastructure creates well-paying jobs, not just during construction but also after, due to the trade that construction enables. Those present at the conference were reminded that Canada is a trading nation, with 60 per cent of our gross domestic product (GDP) relying on trade. Hyder pointed out how what is produced in one province also generates the GDP of at least one other province in the country, creating jobs across jurisdictions. He said we must continue to ask ourselves if we can get our goods to market efficiently and effectively and whether the commitment to do massive energy projects (that will allow for a low carbon future) is there.
Canada’s recent track record isn’t sending a confident message to the world, Hyder said. He pointed out the visit by German Chancellor Olaf Scholz in August 2022. Germany was concerned about its population being able to warm their homes because of the country’s dependence on Russian natural gas and the invasion of Ukraine. Germany needed to determine which country shared its values and had the resources and capacity to successfully make a trade.
Canada was its first choice, but Hyder said that rather than focus on delivering the liquefied natural gas (LNG) Germany needed, the federal government wanted to look at the future by discussing hydrogen, which would be available in an estimated three years.
That decision, he said, overlooked Germany’s immediate need to secure LNG because a cold winter was months away. So, Germany found what it needed in Australia, signing a 16-year agreement (which Hyder said showed that Germany does not agree hydrogen will be a viable option within the timeframe Canada proposed).
Canada’s focus on a carbon-free future – and projects to support that – has created a gap. Hyder said Canada must recognize that there is a real need for energy now that can’t be backfilled with renewable energy options anytime soon, making a transition period necessary. While it is important to look at where the puck is going, Hyder said you should also know where it is now and take advantage of both opportunities.
Hyder encouraged business leaders to speak up about the challenges they face that the government has a role in addressing – labour shortages, approval delays and more – and how those challenges are limiting growth, which has an impact on communities and the population.
That situation with Germany sent a message to Canada’s allies: we are not prepared to supply them. Hyder said Japan has urged Canada to play a role in its energy needs while a senior government official in Korea has wondered if our country is choosing to hoard the energy products needed by the world to move towards decarbonization. Other diplomats have expressed similar confusion about Canada, Hyder said.
One reason for this is our difficulty getting our products to market.
Permitting at the federal level has also caused issues for those trying to develop projects, including those producing green energy. Hyder described the Bay of Fundy project that Sustainable Marine halted because of federal bureaucracy. This project’s technology worked to generate power from the energy of the world’s highest tides to put into Canada’s electrical grid. Millions of dollars were invested, and millions of federal tax dollars in funding were secured for the project.
There were, however, concerns at the federal level about the technology’s potential to harm marine species, which baffled Sustainable Marine. Hyder said a lack of transparency and no regulatory pathway at the federal level led the company to suspend the project.
Permitting is a major concern of those investing in projects in Canada and could become even more critical if the U.S. achieves what it has planned.
Permitting is a major concern of those investing in projects in Canada and could become even more critical if the U.S. achieves what it has planned. Hyder relayed what he heard from the president and CEO of the U.S. Chamber of Commerce, Suzanne Clark. During a visit to Ottawa, Clark described how the U.S. is aiming to approve most projects in seven years while complex projects could take up to 10 years to be approved.
That would put incredible pressure on Canada to react because otherwise capital is going to funnel to the U.S. to develop infrastructure there. That is not a political decision, but a business one, Hyder said. Investment flows to where there is the least resistance and projects form there. Those who miss out on this investment also miss out on the taxes that would have been paid, the social programs that would have been supported and the jobs that would have been created.
He pointed out Canada’s earlier reputation of being great at building major projects that helped to modernize and advance our economy so that we could provide a quality of life that attracted people from around the world to want to locate here. The examples he provided opened within the last 65 years.
For example, the Trans-Canada Highway opened in 1962 to become one of the world’s longest highways, passing through all the provinces. The Montreal-Lake Ontario Section of the St. Lawrence Seaway was completed in 1959. The Trans-Canada pipeline – carrying natural gas across Alberta, Saskatchewan, Manitoba, Ontario and Quebec – was the longest in the world until the 1980s. Developing that infrastructure was vital to having a unified country. Hyder questions whether there would be 10 countries instead of one if Canada was founded today.
He encouraged the business leaders listening to ask if we have the vision to build modern infrastructure that connects supply chains to move goods, lowers carbon emissions, supports job creation and ensures our economy continues to grow. He said the federal government is making statements that building big matters and permitting must be more efficient to allow projects to move ahead faster, to decarbonize and develop critical mineral projects.
The Business Council of Canada had high hopes for the 2023 federal budget, and it said the federal government will propose steps to ensure effective reviews of major projects that support the growth of Canada’s clean economy, while upholding high standards for the environment. This included a plan to improve the efficiency of the impact assessment and permitting processes. Many in business agree that these steps need to be taken but are now waiting for actions to confirm that will occur, Hyder said.
Practical ideas for how the government could address this are in a Business Council of Canada report, titled Innovate, compete and win: A roadmap for Canada’s energy transition. The report sets out how the public and private sectors can work together on the most critical elements that will drive the country’s economic and environmental security.
It points out the case for fast-tracking projects that are in the national interest and meet one or more of the following criteria:
- Contribution to global energy security
- Ability to substitute Canadian products for more greenhouse gas (GHG)-intensive options in importing countries
- Low-carbon fuel production (e.g., hydrogen, renewable natural gas, biofuels and uranium)
- Electricity transmission within and between provinces that would lead to a net decrease in GHGs
- Development of low-carbon electricity (e.g., renewables, nuclear, battery storage, pumped hydro)
- Critical mineral mining and processing facilities
- Projects that are Indigenous led, have an Indigenous ownership component or have Indigenous support based on early engagement by the proponent
The private sector is leading with major employers committing to being net zero by 2050, according to Hyder. While not all have completely worked out what they will do to achieve net-zero, there are many interested in supporting the innovation required to meet that goal. Canada has the capacity and know-how within the energy and natural resource sectors, which have already proven we can lead the world in innovation, he said.
There is leadership in action within the private sector, but they need willing partners in the public sector to expedite projects to benefit all Canadians by providing a more predictable regulatory process. That includes one review per project rather than requiring multiple reviews by various levels of government or provinces, Hyder said.
He explained the need for provinces to discuss their interdependence. For example, Saskatchewan depends on British Columbia’s ports to export its commodities. Saskatchewan has an interest in port expansion because without it, what it is producing will be exported through the U.S., which means handing over the decision about when those commodities will be sent out to another country. That, Hyder said, is “outsourcing our sovereignty.”
Canada should be developing the infrastructure needed to lead growth, Hyder said, instead of a cycle of infrastructure catching up to growth. That infrastructure needs to support trade – both exports and imports – while also modernizing so we have the digital infrastructure the rest of the world is adopting.
Hyder encouraged business leaders to speak up about the challenges they face that the government has a role in addressing – labour shortages, approval delays and more – and how those challenges are limiting growth, which has an impact on communities and the population. Business leaders need to speak up because they can’t wait for academics, which take years, and media to point out the problems. Politicians need to be reminded of the positive impacts of businesses – including generating tax revenue that supports healthcare and education, said Hyder.
He has faith that the Canadian population is prepared for an intelligent conversation about these concerns and that, by framing the conversation around what is fair and what supports this country, maintaining its sovereignty will help people focus on what matters to bettering our future.