The Need for a Northern Alberta Development Strategy January 2013 Contents 1) Introduction 2) Why a Strategy 3) Defining the North 4) Understanding Alberta’s North • Its People • Its Contributions to the Economy 5) Importance of First Nations and Métis 6) Northwest Corridor • Defining the Geographical Location • Importance to Alberta • Expanded Market Opportunities • Synergy with Alberta’s Industrial Heartland • Benefits for all Alberta • Key Infrastructure Components • Considerations for Alberta • Broader Issues • General Conclusions on Northwest Corridor Infrastructure 7) Potential Next Steps 8) Conclusion • A Call to Action 9) Who we Talked With 1 Section One Introduction Albertans take pride in their province. Albertans know there are few other places on earth that offer the same range and magnitude of opportunities for achieving success and building a good life. Alberta’s landscapes are both diverse and beautiful. Our province is blessed with an abundance of natural resources, which have given rise to robust hydrocarbon, mining, forestry and agriculture industries – and which, for many decades, have provided a solid foundation for building and maintaining one of the strongest economies in Canada, if not North America. Albertans understand with ever-stronger conviction the importance of maximizing the value of their natural resources through enhanced processing, developing higher-value products and converting their resource-based knowledge to create new wealth through services and new products. With increasing vigour, Alberta researchers, scientists and entrepreneurs are also finding new ways to address environmental impacts associated with resource development. Alberta products and expertise are in high demand around the world. Alberta’s strength is also rooted in its traditions and values. From its early settlement days, a pioneering and entrepreneurial attitude and a strong affiliation and respect for the land have influenced the character of Alberta’s people. Albertans are known for their staunch belief in free enterprise, individual responsibility, family values and respect for law and order. Albertans want strong, vibrant and caring communities. Albertans believe individuals are empowered when they are well, healthy and safe, have access to quality education and training, and are able to contribute to the economy and to society. Albertans are also adaptive. This manifests itself in many ways. They continue to honour and enjoy their Western traditions. At the same time, Alberta is a welcoming place for individuals and families who have come from more than 140 countries to build a new life. This ethnic diversity enriches our understanding, respect and appreciation for world cultures. When it comes to our economy, we also adapt – and today we are doing so faster and more eagerly than ever. We understand there are exciting new opportunities and new wealth to be found in embracing the global marketplace by diversifying markets and cultivating new trading partners. We are also committed to accomplishing this objective in a manner that is respectful and responsive to our traditional trading partners. This report is about all of these things. It is about the core foundation of our economy and how it can best continue maintaining and supporting a quality of life that makes Alberta an exceptional place to live, work and raise a family. It is about celebrating our natural resources. It is about saluting our ingenuity in creating new wealth by using our natural competitive advantages. It is about the importance of adaptation. It is about Alberta’s future. This report follows in the footsteps of other reports and studies, including Shaping Alberta’s Future: Report of the Premier’s Council for Economic Strategy, which, among many other things, called for collaborative and creative responses to globalization. The contents of this report will contribute to the important discussion about ways and means to support Alberta’s efforts to enjoy long-term success in the global marketplace. The seeds of this report were sown in the summer of 2011, when Albertans were engaged in the process of selecting a new Premier. During that process, Albertans raised a number of issues: economic prosperity; pride and confidence in our resources; orderly, timely and sustainable resource development; diversification of markets; and the full participation of Alberta’s First Nations and Métis in economic opportunities. This report identifies the need for a northern Alberta development strategy as the mechanism to draw attention to the North and unleash its enormous economic potential through a long-term, orderly and sustainable development plan. Such a strategy would promote a better understanding of the North and help unite Albertans. It could also showcase northern Alberta as a dynamic world-class leader in northern community living, and a model for regional economic planning and development. 2 A Northern Alberta Development Strategy could instil a sense of pride in the North; avoid regional rivalries; and create confidence that long-term development in the North can be thoughtful and respectful. It must be based on partnerships and reflect the very best expertise for conceiving and building interesting communities, as well as smart, efficient infrastructure. It requires foresighted planning that anticipates investment and ensures that people services keep pace with the needs of communities and the rate of investment. Finally, it must respect expectations for sustainability and protection of the environment. While the focus is the long-term, strategic best interests of the province, a northern Alberta development strategy must acknowledge and reflect the needs, interests and concerns of Aboriginal, regional and local communities. It must look at the North’s strategic location in Western Canada and how its long-term development could be integrated with the planning and decisions of Alberta’s neighbours and the federal government. It must also consider the North’s role in expanding trade relationships with the enormous and rapidly growing economies of the Pacific Rim and the challenges and the opportunities involved in achieving that goal. This thinking is reflected in the work that Premier Redford is leading to develop a Canadian Energy Strategy. Two core aspects of a northern Alberta development strategy receive special mention in this report: the importance of the Northwest Corridor linking Alberta’s North to the Pacific Ocean, particularly the benefits of the Port of Prince Rupert; and the importance of fully engaging First Nations and Métis in the long-term development of the North. This second core value reflects a strong belief that full participation offers the best hope for stable, predictable development and more timely resolution of conflict between development and the legal and traditional rights of Aboriginal Peoples. It supports their legitimate goal, especially of their youth, to be full participants in the economy and full beneficiaries of its opportunities. The proposed Enbridge Northern Gateway Project powerfully illustrates these issues and the potential outcomes. This report was commissioned by Premier Redford in November 2011 to provide the Premier’s Office with a more fully developed rationale for a Northern Alberta Development Strategy, as well as recommendations as to its constituent parts and how it might be developed and managed. Of particular interest was the request for more information on the Northwest Trade Corridor and an assessment of First Nations and Métis willingness to be fully engaged in a development strategy. We are grateful for the encouragement and support we received from Premier Redford and the staff within the Premier’s Office. We also acknowledge government staff for their invaluable assistance. We extend special thanks to the Grand Chiefs of Treaty 6 and Treaty 8, Chiefs, Elders, the Métis leadership, technical staff and Aboriginal community members who gave so willingly of their time. This report also would not have been possible without input from the many other individuals with whom we met. We were not able to meet with all of the individuals, groups or organizations that will need full involvement in shaping a northern Alberta development strategy if a decision is made to proceed. We are honoured to have had the opportunity to further advance the concept of a northern strategy to this stage. Every province has its defining moments, offering windows of opportunity that open the way to tomorrow’s success. In Alberta’s North, we have one of the world’s truly great regions, with the potential to support sustainable, long-term economic prosperity for Alberta and Canada. We have a profound responsibility to ensure Alberta’s North becomes all that it can be – a truly remarkable place for the 21st century. Rick Orman 3 Section Two Why a Strategy Many factors determine the pace, direction and success of economic growth: availability of natural resources and market demand; geographical competitive advantages; availability of investment capital; modern and efficient infrastructure; political and social stability; labour market conditions; innovation, knowledge and financial commitment to research and development; and cultivation of markets. Stimulating and creating optimal conditions for these economic building blocks is vital to a vibrant economy. Foresight, timing, adaptability and the ability to create new opportunities are also critical ingredients for success. Alberta’s North has an abundance of resources