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MP Report

January 16, 2012 MP Report for Okanagan-Coquihalla Job creation and government

1/16/2012

2 Comments

 
Our Government’s economic action plan has been largely credited with helping to create an economic and investment environment that has created close to 600,000 new jobs during one of the worst recessions since the Great Depression. In the context of jobs and job creation we often hear that one of the obstacles for employers is bureaucratic red tape. To date I am realizing firsthand that there is some legitimacy to these claims. Many people would be shocked with how large an impact that Government can have on the bottom line of a thriving business, by the change of a single directive.  As elected officials we must always keep in mind that our decisions will often impact the lives of our fellow Canadians. I was reminded of this most recently, as I had an opportunity to recently visit a Service Canada location where approximately 75% of the inquiries are about Employment Insurance. The value and importance of having a job cannot be overstated and as taxpayers we must also be mindful of the challenges that increased unemployment presents to Canadian families.

Recently I have encountered two situations that I believe are thought provoking and worthy of discussion. Investment is a term that many Canadians understand, however when this term is expanded to include foreign investment, often some view non- Canadian investors from a more negative perspective. Although it is not widely reported, many Canadian industries are regulated from an ownership and investment perspective. One particular sector, as an example, limits by percentage the share of foreign ownership in a Canadian company. One challenge that can emerge is when a company in such a sector requires additional investment to survive and only non- Canadian investors respond.   If this investment is denied as a result of where capital originates, then potentially hundreds of extremely well paying jobs in a moderately sized community could be lost permanently. Clearly this is a challenging situation and often it is not a hypothetical one but a reality.

In another example a project proposed for a region could have significant positive economic impacts for generations including the creation of hundreds of jobs and also increasing the local tax base.   In this example the project in question may primarily require suitable access. However as it not uncommon, sometimes citizens in an area will reject road related projects if they result in increases of traffic and noise. In addition costly and time consuming traffic and engineering studies are also a requirement that even if properly addressed may still not overcome objections from local citizens. As many will be aware, these types of projects and proposals are not uncommon in many different regions.

While there is a debate about the role of government in direct job creation, there is certainly no debate that government has a strong role to play. The examples above demonstrate how the decisions of elected officials at all levels of government can have a significant impact on job creation within a specific region. I have noted in my brief time both as a city councillor and now as an MP that opposing something is often far easier than standing up in support. However after my visit to the Service Canada location I believe we must all take a moment to think of those currently unemployed and in search of a job and ask what we can do in support of job creation. For the record in both of the examples above I will continue to support jobs and our local economies.  

2 Comments
Rick Papineau
1/17/2012 02:01:31 am

Mr. Albas,

I first wanted to commend you on acknowledging that Canada is experiencing a recession, rather than denying it like Jim Flaherty has been as recently as November. Sugar-coating the situation does no one any good.

Having said that, your suggestion that "600,000 new jobs" have been created DURING this recession is inaccurate at best and, at worst, downright deceptive and disingenuous. Were new jobs being created, Canada would have a lower rate of unemployment than existed prior to the 2008 collapse. As this is not the case, these are not “new” jobs, but rather “recovered” jobs.

In January 2008, prior to the economic collapse, the unemployment rate wavered between 5.9 and 6% (lowest rates in Canadian history). By late 2008/early 2009, the unemployment rate spiked to roughly 8.7%. Since that time, it has generally declined to the current rate of 7.5%. I say “generally” because – and as I’m sure you’re well aware – unemployment has steadily increased in Canada over the past 4 months (source tradingeconomics.com quoting StatsCan).

So, you are accurate in saying that more people are working now than the point at which unemployment peaked, and there are even possibly more people working now than in 2008 – based on population increases – job growth is virtually unchanged during the Harper Government ™ majority and has not kept up with population growth.

However, there are most certainly NOT more people working in Canada than did prior to the economic collapse in 2008, as your post implies. The estimated population of Canada was 33.5 million in 2008. If half of that number were employable and 6% were unemployed, that would mean roughly 1 million Canadians were unemployed. If “new” jobs were created since, which is what your report says, then only 400 000 would now be unemployed. However, as Canada’s population is estimated at 34.7 million and unemployment is 7.5%, then approximately 1.3 million Canadians are out of work.

If those estimations are correct, and contrary to your claim of new jobs being created, there are actually an additional 300 thousand Canadians not working now than were prior to the recession. Included in that number are those that recently lost their jobs at the Caterpillar plant in London, Ontario - which was made famous as the site of Stephen Harper's photo opportunity announcing that that plant received $5-million in tax breaks.

So, again, the inaccuracy of your claim is called into question. These aren’t “new” jobs, but simply “recovered” jobs and, yes, there is a vast difference between the two terms and I urge you to consider being more careful about the information you provide – especially after your prior lament about misinformation about the Jasper Park privatization.

Still looking forward to you reply regarding the various questions I have sent you via email and newspaper article.

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visit link
9/6/2013 08:10:23 pm

I salute Mr. Dan Albas for his admirable hard work that he done for Okanagan – Coquihalla. Only due to his dedicated mind he could create job opportunities. If bureaucrats would be thought like him, then there was no recession might be happened. Again I appreciate him for his excellent job!

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    Dan Albas is the Member of Parliament  for the riding of Central Okanagan-Similkameen-Nicola.
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