It's now Jason Kenney's turn to deliver on jobs, pipelines and a better economy - Action News
Home WebMail Friday, November 22, 2024, 04:00 PM | Calgary | -10.4°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
BusinessAnalysis

It's now Jason Kenney's turn to deliver on jobs, pipelines and a better economy

For weeks, Jason Kenney framed Alberta'selection around three key issues: jobs, pipelines and the economy.With his United Conservative Party soon to take charge, people are looking to him to fulfilhispledge anddeliver on all three.

After accusing the NDP of fumbling key files, the UCP leader gets his shot but the challenges are tough

Premier-Designate Jason Kenney addresses the media the day after his election victory in Edmonton on Wednesday. (Jason Franson/Canadian Press)

For weeks, Jason Kenney framed Alberta'selection around three key issues: jobs, pipelines and the economy.With his United Conservative Party soon to take charge, people are looking to him to fulfilhispledge anddeliver on all three.

"This democratic decision is a message to all of those Albertans who are struggling," he said in his victory speech. "Help is on the way and hope is on the horizon."

Kenney'schallenge is those struggles are rooted in problems that the province has been wrestling with for the last half-decade difficult problems he accused the outgoing NDP of mishandling.

Now it's his shot.

Struggling oil and natural gas prices, barriers to building new pipelines and stubborn unemployment numbers have become part of the province's economic landscape.

And with commodity prices and pipeline development largely outside his immediate control, it's fair to ask how much Kenney can really doto move Alberta's economic dial.

Voters have placed a big bet on him,but there are noguarantees.

An Alberta demonstration in support of new pipelines and against Bill C-69 in late December. (Terri Trembath/CBC)

"The current challenges won't go away just because there's a new government," said economist Marie-Christine Bernard, a director withthe Conference Board of Canada.

What kind of difference can Kenneymake onpipelines, the economy and jobs? Let's look.

Pipelines

The top priority for theoilpatchis building new pipelines and the UCP's plan is to "fight without relent"to do just that. The question is whether it will smooth the road or add hurdles.

Kenney regards Rachel Notley's efforts to win political and public support for pipelines with her carbon tax strategy as a waste of time. Scrapping itis the UCP's Bill 1.

Kenney intends to be more aggressive than his predecessor, includingplans to create"turn off the taps" legislation should provinces, like British Columbia, obstruct pipeline construction.

The UCP would hold a referendum in 2021 on removing equalization from the Constitution Actif "substantial progress" hasn't been made on a coastal pipeline.

The UCPalso says it will launcha constitutional challenge to Bill C-69, an overhaul of the assessment process for major energy infrastructure in Canada.Kenney calls it the "no more pipelines" bill.

Thatpackage seems to have resonated at the pollsbut thefate of three key pipelines isn't Kenney's to decide.

In February, Calgary once again hadthe highest unemployment rate 7.6 per cent out of 33 metropolitan areas inCanada. (John Gibson/CBC)

Completion of Enbridge's Line 3 is delayed a year (until the second half of 2020) while it waits on U.S. permits. And Keystone XL is fighting a legal battle launched by opponents inAmerican courts.

The decision on whether to proceed with the Trans Mountain expansion restswith the federal government, which bought the project last year whenits future was in doubt.

The UCP's tactics could well sway things in Alberta'sfavour, but it could also harden opponents'resolve andlight new political fires.

On Wednesday, QuebecPremier Franois Legault congratulatedKenney on his electoral victory but remindedhim that his province's position on oil pipelines hasn't changed.

"What I am saying is there is no social acceptability for a new oil pipeline in Quebec," he said.

Kenney'sdistaste for the NDP and federal government's carbon plan could createits own headache.

One reason the federal Liberalsgot behind Trans Mountain was because of the AlbertaNDP'scarbon tax policy. WithKenneyplanning to repeal it and to fight a national carbon policy some wonder what the ripple effect may be.

"The federal government has said all along that pipelines and carbon policy go hand in hand," said Harrie Vredenburg, an energy expertbased at the University of Calgary.

"Are the feds going to say no to doing the Trans Mountain expansion in the end?I don't think so. But they could well frustrate an Alberta government who is taking them to court on carbon tax and say, 'Well, we'll just let you chill for a bit and, you know, we'll wait till after the [federal] election.'"

Economy and employment

Diversification has been the watchword of the Alberta economy in recent years, but the energy sector remains key.

The new government can't do much about oil and gas prices, but the UCP hopes it can still lure investment by streamlining regulations and reducing costs on industry. That'swelcome news in the oilpatch.

"We think the energy sector can play a unique role in enabling Alberta to regain and to reset its position as an investment jurisdiction,"said Tim McMillan, president of the Canadian Association of Petroleum Producers.

A major pillar of the UCP'selection platform is a cut in corporate taxes to eight per cent, downfrom 12 per centa movethe party says will grow the economy by $12.7 billion and create55,000 jobs.

Tim McMillan, president of the Canadian Association of Petroleum Producers, says he believes the energy sector can play 'a unique role' in getting Alberta back to an investment jurisdiction. (Justin Tang/Canadian Press)

Alberta's economic malaise has taken a toll on jobs and, despite some flirtation with recovery, employment numbers haven't provided much joy recently.

In February, Calgary once again hadthe highest unemployment rate 7.6 per cent out of 33 metropolitan areas inCanada. Edmonton hadthe third-highest rate, at seven per cent.

"Albertans have elected a government that will be obsessed with getting this province back to work," Kenneysaid.

One bigchallenge for the new government is many oilpatchjobs that existed before the downturn are not expected to return even if oilprices take off again. Companies have found new ways to make do with fewer people.

Still, the UCPbelieves that its efforts to kick-start the industry will bring back investment and work for both oil and natural gas. Italso hopes to spur job creation in forestry, tourism and tech sectors, among others.

"It's true the government doesn't control the price of oil. But what they do control is their response to the economic crisis," said Richard Truscott, of the Canadian Federation of Independent Business, in an interview last week.

He urged the incoming provincial government to providetax relief and lessred tape,calling for more flexibility inemployment rules and the minimum wagefor smaller firms.

The UCPhopes scrapping the NDP's carbon tax plan will alsolighten the load on business.

And while it will keep the general minimum wage at $15 an hour, the UCPwants to create a $13 an hour wage for those 17 years of age and under as way to "incentivize" the creation of youth employment.

Will the UCP's plans be enough to breathe new life into the provincialeconomy?Albertans have high expectations for the next four yearsand Kenneyhelped put them there.

Now that the time for campaign speeches haspassed, Albertans will see if it is possible for Kenneyto put the province back to work.

With files from Canadian Press