Calgary Chamber of Commerce

The Calgary Chamber is the voice of the business community. We help businesses reach their potential as they start, scale-up and grow through connection, advocacy and education.

INVESTING IN OUR FUTURE:

Attracting opportunity and capital to Alberta

Alberta’s investment climate has been very challenging in recent years. At times, it has been hard to see opportunities – particularly in Calgary, where the business environment has been negatively affected by the downturn in the energy sector, followed by the impact of COVID-19. But now, there is reason for renewed optimism. Alberta is increasingly being seen as a leading innovator in developing clean energy solutions and is poised to benefit from a growing interest by investors increasingly focused on solving the climate crisis. Through the Pathways to Net Zero initiative, major energy companies representing 95 per cent of oil sands production have committed to achieving net-zero emissions by 2050 in alignment with Canada’s climate targets. The solutions developed through this initiative have the potential to decarbonize the global industrial complex, which is also faced with the need to decrease emissions. In addition, investments announced by Amazon Web Services and accelerators like Plug and Play; ag tech accelerator, Thrive; and fintech startup, Neo Financial, demonstrate the growing diversity of business in Calgary. What do global changes mean for investment in Alberta moving forward? How can we become a destination for investment that fuels strong economic recovery and growth and vibrant communities?

To realize these opportunities and understand what they represent, let’s dive deeper with investors to explore what we must do to position Alberta as a beacon for new investment to further diversify our economy and ensure long-term growth.

OPPORTUNITY #1: PROVIDE GREATER REGULATORY CERTAINTY

Investors need to know the rules of the game so they can make long-term decisions and justify taking risks. And they need to know the rules aren’t going to suddenly change. For investors, those rules are government regulations. Studies show regulation must be predictable, transparent and be in place beyond the election cycle to attract and encourage investment. The importance of predictability and transparency is clear for emerging opportunities like the energy transformation in Alberta. Richard Manley, head of Sustainable Investing at the Canada Pension Plan Investment Board, says regulatory certainty allows Alberta to attract investment to support the next phase of the transformation to a lower carbon future.

“When you have clarity on the rules of the road, you reduce the uncertainty of the business decision you’re about to make,” says Manley. “And among the different economies of the world, Canada has a pretty good understanding of the regulatory aspects of this transition and carbon pricing. Now, the opportunity is to focus on learning more about technologies for this transition and blending public and private finance, both of which will continue to increase certainty for investors.” From this perspective, Canada and Alberta need to collaborate and continue to commit to fostering a predictable and transparent regulatory environment. It’s important to balance the need for regulations to keep markets fair and ensure quality goods and services are provided, against the need to enable businesses to thrive in a competitive environment.

Achieving this balance through smart regulation Policy overlaps, inconsistencies and gaps must be identified and removed. Regulation and policy should be communicated in simple language where possible. Regulations must be responsive to technological developments, emerging research and impact analyses, while providing businesses with certainty so they can move forward and adopt new technology. Consistent engagement with business owners detailing the challenges and opportunities faced during the pandemic has resulted in quick thinking, rapid action and successful initiatives led by government. Continuing this agile approach post-pandemic will allow investors to make deals and seed capital in Alberta.

OPPORTUNITY #2: INCREASE COLLABORATION BETWEEN BUSINESSES AND GOVERNMENTS in the community and governments. Fostering those relationships and a culture of collaboration often starts at the local level.

“The Mayor and City Council specifically play a really important role in supporting the investment ecosystem in Calgary,” says Chris McCleave, venture partner at Raiven Capital. “Early on in the development and attraction of investment, it is a mayor that often gets the ball rolling, but true collaboration occurs equally between various levels of government. When you take interest in a jurisdiction elsewhere, often you immediately get a meeting with government officials at all levels and community partners like the Chamber, and they are all selling the same merits on why to invest.” Municipal governments have a critical responsibility to advance their city, including by attracting investment, but are often constrained by their fiscal situations. It is also clear that investors are looking for alignment between municipal, provincial and national governments. Based on these realities, legislative and regulatory changes are needed to allow cities to pursue local innovation, enhance the necessary collaboration that attracts investment and improve their overall well-being and vibrancy.

OPPORTUNITY #3: FIND AND FOCUS ON WHAT TRULY BRINGS PEOPLE TO ALBERTA

We can improve our investment climate by focusing on the positive stories that highlight what makes businesses, and the people they employ, choose Calgary as the place to call home. “It’s two things – how do we tell our story, and at the of the end day, what is preventing companies from coming here?” says McCleave. “It’s not clear that we always understand the right mix of what drives these decisions. In part, it’s about livability, social programs and community, but it’s also about dollars and cents.” Jon Horsman, senior executive vice president of ATB Financial and CEO of ATB Capital Markets, agrees. “Quality of life is a huge factor in attracting the talent that contributes to investment, and so, the question becomes: what are you competing on?” says Horsman. “Calgary and Alberta are a young and diverse place, minutes from the mountains and where you can raise a family.” Finding the winning mix will involve collaboration between the federal, provincial and municipal governments, and will be about valuing both community vibrancy and inclusion as economic outcomes. It will also be important to reimagine Calgary’s downtown and rebalance and stabilizing property taxes. For Calgary, this is all possible and within reach. Calgary is an active city, with a young, diverse and educated population.

OPPORTUNITY #4: ENSURE POST-SECONDARY INSTITUTIONS CAN MEET THE TALENT NEEDS OF THE BUSINESS COMMUNITY

It will be increasingly important to work with post-secondary institutions and governments at all levels to ensure there is adequate funding to equip students with the skills needed to be part of the evolution of the local economy. Whether it’s software development, machine learning or understanding how technology supports all industries to become more competitive – post-secondary education is critical to Alberta’s future economic success. Together, let’s plant seeds of opportunity We have a chance to plant the seeds that will attract opportunity and capital to Alberta. A chance to secure a leading position in the economy of the future. The Calgary Chamber of Commerce is at the table with all levels of government, and we are interested in hearing how you believe we can attract new investment and ensure economic growth for all of us. If you’re interested in joining the conversation and being part of the solutions, get in touch with the Calgary Chamber.

AN ECONOMIC GAME CHANGER: Alberta’s childcare deal

The COVID-19 pandemic has affected our lives in countless ways – physical distancing, financial stress, and job losses. Evidence shows economic hardship is felt more acutely by certain segments of the population, particularly based on gender. During March 2020, women were more likely to have seen a reduction in hours or to have lost their job, compared to men of the same age. Similarly, early days of the pandemic revealed the unemployment rate for women aged 25 to 54 increased 2.8 per cent compared to a 1.1 per cent increase for men. In November 2021, Canada and Alberta governments announced a $290 million investment over four years to support the expansion of accessible, affordable and high-quality early learning and childcare. With female labour-force participation at its lowest in 30 years and nearly half a million Canadian women who left the workforce through the pandemic still not back to work, affordable childcare will be critical to our economic recovery.

UNABLE TO STAY HOME

Analysis by the Canadian Women’s Foundation (CWF) indicates the “vast majority” of nurses, medical lab technicians, respiratory therapists and personal support workers are women. The disproportionate number of women involved in these care positions means women often don’t have the privilege to stay or work from home; we depend on them to deliver the care needed to combat COVID-19, and so they simply cannot stay at home.

LOWER INCOME AND LESS SUPPORT

With fewer jobs that are more often on the frontlines and a greater share of unpaid work, the COVID-19 pandemic further exacerbates the gender wage gap. The wage gap in Canada has been longstanding and according to Statistics Canada, as of 2018, women aged 25 to 54 earn $0.87 for every $1.00 that men aged 25 to 54 earn. Furthermore, the earning gap is wider and lasts longer for women in the 25 to 29 age range than for those who have children later. The same is not true for men with children.

Predictably, with less income on average, women more often find themselves in economically challenging circumstances compared to men. Angus Reid polling shows that as of 2018, women accounted for 60 per cent of those who are “struggling” economically – Canadians who routinely cannot pay a utility bill, need to borrow money for the essentials or cannot buy new clothes when needed.

EXPANDING ACCESS TO CHILDCARE

Reforms and expansion to the childcare system can reduce the amount of unpaid work women perform, and therefore allow for more paid economic opportunities. The primary reforms required to open more doors for women with children include:

1. Easy, flexible and universal access to a 24-hour system of care.

2. Income-dependent payment schemes. 3. Full subsidization for low-income parents. Research shows from 1997 to 2016, the participation rate for Quebec women increased seven per cent, exceeding the national average, which has resulted in increased economic activity and GDP in that province.

ALBERTA’S CHILDCARE DEAL

Alberta remains the youngest province in Canada and with many young children and families, the lack of quality, affordable childcare options inhibit full participation of many Albertans, particularly women, in the workforce. A new childcare agreement between the Government of Canada and government of Alberta targets a 50 per cent reduction in average parent fees for children under the age of six in regulated childcare by the end of 2022 and an average of $10-a-day childcare by 2026. The investment also comes with several objectives: •Increasing access to affordable, high-quality childcare to help more parents return to work and support their families and our economy. •Extending out-of-school care subsidies and expanding parent choice.

•Enabling parents with the greatest financial needs to be able to work to provide for their families. •Helping employers to recruit, train and develop qualified staff.

Studies show comprehensive and affordable childcare programs offer a significant return on investment through increasing GDP and broadening the tax base. In fact, economists estimate every dollar of initial investment in early childhood education results in an additional $0.07 to $0.10 every single year – a considerable return over time. According to one estimate of Quebec’s program in 2008, $100 in childcare subsidy from the Quebec government generated a return of $104 for the provincial government and an additional $43 for the federal government. A childcare agreement also puts Alberta on a more level playing field with other provinces. In the current context of the global competition for talent, the agreement can position Alberta as a more attractive place to build a career and have a family. According to Deborah Yedlin, president and CEO of the Calgary Chamber, affordable quality childcare is also good for our national economic position: “A prosperous economy is predicated on increasing the labour force participation rate of Canadian women – which has recently seen some of the lowest levels in 30 years. An affordable childcare system from coastto-coast eliminates a significant barrier for women being part of the workforce and is an important investment in our collective economic future.”

Broad issues like childcare require governments working together toward a common goal. With the wheels in motion on more affordable, quality early learning and childcare for Canadians, we are on the precipice of introducing enduring changes that transform opportunities for women, deliver a world-class childcare system and foster a more inclusive economic recovery for all.