The economic stakes: Key economic sectors and what they bring to B.C.

In this March 29, 2013 photo, a worker switches well heads during a short pause in the water pumping phase, at the site of a natural gas hydraulic fracturing and extraction operation run by Encana Oil & Gas (USA) Inc., outside Rifle, in western Colorado. Proponents of hydraulic fracturing point to the economic benefits from vast amounts of formerly inaccessible hydrocarbons the process can extract. Opponents point to potential environmental impacts, with some critics acknowledging that some fracking operations are far cleaner than others.  Photograph by: Brennan Linsley, AP

Oil & gas

The figures

GDP: Oil and gas extraction contributed $6.1 billion to B.C.’s industrial gross domestic product in 2011, or 3.2 per cent of provincial GDP.

Employment: Oil and gas extraction, direct jobs 2012: 3,500

Trade/exports: Value of B.C. natural gas exports to all countries in 2012: $1.5 billion (2011, $1.9 billion). Total for Canada: $8.5 billion in 2012.Oil, other energy exports (not including electricity or coal), B.C. in 2012: $766 million (2011, $641 million). Total for Canada $98.8 billion in 2012.

Party platforms

NDP

Expand existing carbon tax to include oil and gas emissions that are vented, or released, during operations; aim is a five-per-cent reduction in B.C.’s total CO2 emissions by encouraging innovation to curtail such venting.

Energy critic John Horgan says he’s confident an “exhaustive” independent review of hydraulic fracturing (fracking) used to extract natural gas would show it’s not harmful.

Opposed to Enbridge Northern Gateway oil pipeline project and “major expansion” of the Kinder Morgan’s pipeline from Alberta to Burnaby.

Maintain moratorium on offshore oil exploration, drilling, and oil tankers along the North Coast.

Liberals

Create a ministry of natural gas development to pursue potential liquefied natural gas (LNG) export opportunities.

Create a B.C. Prosperity Fund using projected royalty revenue from LNG exports to reduce/eliminate provincial debt.

Develop new electricity supply including a $7.9-billion Site C Dam on Peace River to support LNG development.

Continue to pursue a “fair share” of the oil export profits that Enbridge Northern Gateway would generate if the pipeline project is approved by National Energy Board, and demand “world class” marine spill response.

Conservatives: Support natural resource development.

Greens: Create BC Energy Authority to oversee energy regulation and planning.

Forestry

The figures

GDP: Forestry, including logging, paper and wood product manufacturing, contributed $5.7 billion to B.C.’s industrial GDP in 2011, or 3 per cent of all industry GDP.

Employment: Forestry and logging direct and support jobs 2012: 17,700, wood product manufacturing 26,700, paper manufacturing 12,000.

Trade/exports: Value of B.C. forest product exports to all countries in 2012: $6.1 billion (2011, $5.7 billion). Total for Canada: $11.3 billion in 2012.Sub-sector exports in 2012: Lumber $4.2 billion, cedar shakes and shingles ($146 million), plywood and veneer $174 million, other panel products $427 million, select value added wood products $361 million, logs $577 million, other $286 million

Trade/exports: Value of B.C. pulp and paper exports to all countries in 2012: $3.9 billion (2011, $4.2 billion). Total for Canada: $15.1 billion in 2012.Sub-sector exports in 2012: Pulp $2.8 billion, newsprint $254 million, paper and paperboard $735 million, other $144 million.

Party platforms

NDP

No tenure reform for at least four years. Instead, will focus on forest health and stewardship, conduct a timber inventory and replant timber stands damaged by the pine beetle.

Invest $30 million this year, and $100 million by 2018, to improve forest health and bolster a competitive forest economy including increasing supply of skilled workers through apprenticeships.

Double planting of seedlings on Crown land to 50 million annually over five years.

Enhance forest ministry research capacity.

Renewed emphasis on local and regional land-use planning engagement.

Won’t ban raw log exports but want to discuss options with industry on the premise that raw log exports are too large.

Liberals

Maintain and grow Asian lumber markets by co-sponsoring with the forest industry annual trade missions to China, India, Japan and Korea.

Work with loggers and shippers to ensure that raw log export volumes don’t disadvantage mill operators in B.C.

Boost silviculture by $10 million/year in regions affected by pine beetle, beginning in 2015/16 fiscal year.

Implement 10-year, $80-million forest inventory plan for 35 million hectares to assess pine beetle effect in priority areas.

Legislation to provide secure fibre supply for bio-energy, pellet and secondary manufacturing operators.

Conservatives: Support forest resource development.

Greens: Shift forestry from industrial to ecologically based approach, support higher value forest product manufacturing.

Agriculture & fisheries

The figures

GDP: Agriculture including crop and animal production contributed $1.08 billion to B.C.’s industrial gross domestic product in 2011, or 0.57 per cent of provincial GDP.

Employment: Agriculture direct jobs and support activities in 2012, 26,000. In addition, jobs in food manufacturing, 27,200.

Trade/exports: Value of B.C. agriculture and food exports to all countries in 2012: $1.8 billion (2011, $1.6 billion). Total for Canada: $42.3 billion in 2012.

Sub-sector exports in 2012: Fruit and nuts $301 million, vegetables $214 million, other $1.3 billion.

Trade/exports: Value of B.C. aquaculture and commercial fishing exports to all countries in 2012, $843 million (2011, $898 million). Total for Canada: $4 billion in 2012.

Sub-sector exports in 2012: Fish excluding salmon $148 million, whole salmon $345 million, salmon canned, fillets, etc. $45 million, other $309 million.

Party platforms

Liberals

$20 million in carbon tax relief for greenhouse and flower growers, sustain $4 million in carbon tax relief for farmers using coloured fuel.

Add $2 million to “Buy Local” campaign supporting B.C. farmers.

Work with organic farmers to develop “B.C. Organic” brand.

Create agriculture centre of excellence at University of Fraser Valley.

NDP

Invest $8 million annually in programs to develop local and stable markets for B.C. growers.

Create Feed BC program, expanding market for B.C. growers by putting locally grown food into B.C. hospitals.

Create Grow BC program to promote food security by supporting replanting/renewal of orchards and more support for organic and conventional farmers.

Bring back Buy BC marketing program to support local growers.

Cut LDB markup on spirits from B.C. craft distillers, allow on-site sales and direct sales to restaurants and bars.

Conservatives: Would repeal carbon tax to provide relief to farmers and ranchers.

Green: Bolster agricultural land reserve to create more land for farming.

Mining

The figures

GDP: Mining and quarrying contributed $3.38 billion to B.C.’s industrial gross domestic product in 2011, or 1.79 per cent of provincial GDP, according to BC Stats data sourced from Statistics Canada.

Employment: Mining direct jobs in 2012, 14,000.

Trade/exports: Value of B.C. metal and mineral exports to all countries in 2012 (2011): $3.45 billion ($3.49 billion). Total for Canada: $22.3 billion in 2012.

Sub-sector exports in 2012: Coal $5.6 billion, copper ores and concentrates $1.9 billion, molybdenum $224 million, aluminum $408 million, zinc $581 million, other $331 million.

Party platforms

Liberals

Support mine development by signing 10 new benefit agreements with First Nations that would be affected if projects go ahead.

Continue to pursue deal with federal government to create single environmental review process.

Complete northwest transmission line opening northwest B.C. to expanded mine development and exploration.

Streamline mining application process to create faster turnarounds for investors.

NDP

“Renewed emphasis” on rural economic development through investment in sustainable mining.

Encourage mineral exploration by ensuring average 55-day turnaround for notice of work permits.

Extend mining flow-through share tax credit.

Maintain support for Geoscience B.C.

Improve mine development opportunities with more timely environmental assessment decisions.

Conservatives: Use resource development activities to build and bolster local communities.

Green: Support mining but minimize environmental impacts and enact policy reforms reflecting that.

BC Hydro, green energy

The figures

GDP: Electrical utilities contributed $2.91 billion to B.C.’s industrial gross domestic product in 2011, or 1.5 per cent of provincial GDP. Natural gas distribution, water and sewage utilities contributed $981 million to B.C.’s industrial gross domestic product in 2011, or 0.52 per cent of provincial GDP, according to BC Stats data sourced from Statistics Canada.

Employment: Overall there were 14,900 workers in the utilities sector in 2012 including BC Hydro, Fortis BC and municipal water and sewage districts. BC Hydro, the province’s largest public utility has 5,800 employees. Fortis BC, a private sector utility delivering natural gas and electricity, has 2,200.

Party platforms

NDP

According to energy critic John Horgan, the New Democrats would revitalize the B.C. Utilities Commission to play a greater role in reviewing BC Hydro’s long term funding and capital project plans and provide funding for stakeholder groups, or interveners, to participate in those reviews.

Horgan says NDP would allow utilities commission to determine whether a $7.9-billion Site C dam is needed at this time, but notes Hydro is projecting a 10-year electricity surplus due to Liberals’ expansion of independent power production.

Horgan says utilities commission and interveners need to publicly review possibility of future BC Hydro rate increases rather than have cabinet make decisions without proper consultation.

Eliminate Pacific Carbon Trust.

Liberals

Maintain “standing offer” opportunity for ongoing development of independent clean energy power projects under 15 megawatts, particularly with First Nations involvement.

Work to ensure continued opportunities for renewable power.

Energy Minister Rich Coleman says controversial $1-billion smart meter program is paying for itself with lower electricity rates by curtailing power theft.

BC Hydro’s mounting debt issues will be fixed via a huge flow of natural gas royalty revenue from the projected emergence of a liquefied natural gas export industry.

Conservatives: Concerned about cost of Site C, independent power.

Green: Shift B.C. energy consumption from fossil fuel to renewables, and promote energy conservation.

Transport, warehousing

The figures

GDP: Transportation and warehousing contributed $10.5 billion to B.C.’s industrial gross domestic product in 2011, or 5.6 per cent of provincial GDP.

Employment: Transportation jobs including air, rail, water, truck, pipeline transmission, postal service, couriers in 2012, 128,000. Single largest sub-sector is trucking, 31,600 workers.

Party platforms

Liberals

Work with Metro Vancouver mayors to identify sources of funds for transit improvement, hold referendum on rapid transit to Surrey and Broadway corridors, two major economic centres for the province.

Consult with Metro Vancouver on accelerating replacement for Massey Tunnel.

Complete four-laning of Highway 1 from Kamloops to Alberta border, a $650-million investment.

Develop transportation strategy for Vancouver Island including road, rail, air and sea and improve safety of Malahat Highway corridor.

Pursue federal government and Via Rail to re-establish rail passenger service on Vancouver Island.

NDP

Freeze BC Ferries rates while audit is carried out to look for cost savings within the corporation. Current fares will remain in place until March 2015.

Pacific Carbon Trust would be eliminated, and levies paid to it by public institutions would instead go to fund energy-efficient upgrades at hospitals, post-secondary schools and Crown corporations.

Spend $120 million of Carbon Tax revenue over three years to invest in transit and green projects that reduce greenhouse gas emissions, including retrofits and other green infrastructure in urban and rural areas.

Conservatives: Review transportation policies such as selective bridge tolls in Lower Mainland.

Green: Increased funding for public transit, more HOV lanes, reestablish BC Ferries as a Crown corporation.

Housing, construction

The figures

GDP: Housing and construction including residential, non-residential, engineering and repair contributed $14.8 billion to B.C.’s industrial gross domestic product in 2011, or 7.8 per cent of provincial GDP.

Employment: Total construction sector jobs in 2012, 192,200, includes 77,400 in prime contracting, 115,500 trade contracting.

Party platforms

Liberals

Collaborate with the Union of B.C. Municipalities to prepare for another round of federal infrastructure funding.

Project 100,000 construction and permanent jobs from emergence of an LNG export industry involving five major players.

Support a proposed oil refinery in Kitimat that would create 6,000 construction jobs and 3,000 permanent jobs.

NDP

Annually build up to 1,500 units of affordable housing including non-profit, co-op and rental.

Leverage existing $250 million Housing Endowment Fund to support partnerships with local governments, private sector and non-profits.

“Strengthen and rebalance” the Residential Tenancy and Manufactured Home Acts.

Conservatives: Promote economic growth and development in northern B.C.

Green: Invest 0.5 per cent of the provincial budget into housing to increase number/quality of units available for below-market rentals.

High-tech, film, culture

The figures

Selected GDP highlights: Arts, entertainment and recreation contributed $1.86 billion to B.C.’s industrial gross domestic product in 2011, or 0.98 per cent of provincial GDP. Motion picture and sound recording contributed $526 million, or 0.27 per cent of GDP. Telecommunications contributed $4.19 billion, or 2.22 per cent of GDP. Professional, scientific and technical services, including accounting, architecture, law, contributed $10.03 billion, or 5.76 per cent of GDP.

Selected employment: Motion picture and sound recording in 2012, 8,800, performing arts, spectator sports and support 18,200, computer system design services 40,800, management, scientific and technical services 27,40, information technology 5,300. Broadcasting and telecoms 22,500.

Party platforms

NDP

Increase tax credits in film and TV production to 40 per cent on labour costs for both foreign and domestic productions. At present, foreign productions get a 33-per-cent credit and domestic productions get 35 per cent.

No change is proposed for digital animation or visual effects tax credit, which runs at 17.5 per cent of eligible labour expenditures.

The NDP estimate that the incremental cost of the promised tax credit increase would be $45 million on the assumption that a higher rate will attract additional activity. The party calculates the economic payback at $93 million.

Liberals

Launched technology strategy in July 2012, including support for clean technology, wireless, health and life sciences, accelerating tech commercialization and adoption.

Expand small business venture capital program with additional $5 million in 2015-16 and work with B.C. Technology Industry Association to encourage federal government to match venture program funding.

Expand B.C. Training Tax Credit Program to include co-op and interim placements in small tech firms.

Establish B.C. Film Trade office in Hollywood at cost of $4 million.

Digital animation or visual effects tax credit bonus increased to 17.5 per cent from 15 per cent, at a cost of $1.22 million per year.

Maintain 2013 budget pledge of $60 million in new and reallocated funding for sports and arts fund plus $18 million to increase youth participation in the arts.

Conservatives: No platform statements on arts, culture, technology, film, television.

Green: Increase arts and culture funding and provide multi-year funding to established groups while encouraging their transition to financial independence.

Education services

The figures

GDP: Education services including public and post-secondary training contributed $10.4 billion to B.C.’s industrial gross domestic product in 2011, or 5.53 per cent of provincial GDP.

Employment: Total including public schools, universities, colleges and other schools and support services in 2012, 177,300; includes university 39,600, post-secondary 14,000.

Party platforms

NDP

Redirect B.C. training and education savings grant and early years strategy into new child care and early education plan.

Invest $100 million to improve classroom learning conditions, addressing overcrowded classrooms and ESL, aboriginal and special needs students.

Hire new teachers, teaching assistants, librarians, counsellors.

Create early years innovation fund.

Confront bullying with provincewide standards for school codes of conduct

Liberals

Modernize education and skills training programs.

Proposes a 10-year labour agreement with teachers to limit classroom disruption, offering wage increase reflecting public sector average, and “significant” funds to address classroom size and composition challenges.

Early childhood education and child care benefits for families.

Limit post-secondary tuition fee increase to two per cent through next term of office, and free textbooks for college and university students.

Student aid program that encourages students to take in-demand training in regions where demand is strong, such as oil and gas field operations in the northeast.

Conservatives: Give young British Columbians the first opportunity to fill new skilled labour jobs.

Green: Establish an education commission.

Research by Scott Simpson, Vancouver SunSources: BC Stats, Statistics CanadaNOTE: Some totals, such as GDP amounts, do not directly correlate with other amounts such as export values, due to varying methods for measuring sectors and differing methods for sorting sub-sectors into larger categories by BC Stats and Statistics Canada.

Health care and social assistance

The figures

GDP: Health care and social assistance contributed $13.3 billion to B.C.’s industrial gross domestic product in 2011, or 7.05 per cent of provincial GDP.

Employment: Total health care and social assistance sector jobs in 2012, 274,500. Includes hospitals 101,400 jobs, nursing and residential care 41,900 jobs, doctors and outpatient services 74,500 jobs, social assistance 56,600.

Party platforms

Liberals

Following through on 2013 budget, a further $2.4 billion in health care over next three years.

Continue $132-million project to ensure everyone in province has access to a family doctor.

Create additional 500 addiction spaces by 2017.

Double hospice beds by 2020.

Offer $1 million annually to fund student loan forgiveness program for out-of-province medical school grads, same as applies to in-province grads.

Extra $5 million per year to United Way for seniors support programming.

NDP

Reduce fees 20 per cent for licensed infant and toddler care, saving families estimated $2,000/year.

A $210-million annual investment in a family bonus program for low and moderate income families, up to $829 for each child under 18.

Increasing income assistance rate $20/month and indexing to inflation.

Double income assistance earnings exemption to $400/month.

Add new front line staff to Ministry of Children and Families.

Strengthen Community Living B.C.

Spend $35 million to improve residential care service for seniors

Spend $35 million on child and youth mental health treatment and outreach services.

Conservatives: Better training of health care professionals, greater transparency in health care funding and spending.

Green: Create community-based health care teams of service providers including doctors and social workers, increase access to alternative medical treatments.