B.C. Premier Christy Clark holds a town hall in the riding of Vancouver-Point Grey.Simon Hayter/The Globe and Mail
Premier Christy Clark will tour the future home of a $4.5-billion liquefied natural-gas facility on Monday, kicking off a week of announcements to lay out her job-creation program for British Columbians.
The Kitimat LNG project is a suitable backdrop for all that her B.C. government wants to encourage – energy exports to Asia, private-sector investment, and family-supporting jobs.
It also underscores how difficult Ms. Clark's task is. With no major stimulus spending program to lean on, her government has few levers to deliver a quick job fix.
The proposed Kitimat LNG plant and terminal will condense natural gas from B.C. and Alberta so it can be shipped across the Pacific out of Bish Cove on B.C.'s North Coast.
The project promises 1,500 person-years of employment if it goes ahead, but the Premier would be stretching things to take credit for those jobs. Site preparation is now under way, three years after environmental approvals were granted.
"We did it on our own," said the Haisla First Nation's chief councillor, Ellis Ross.
The Haisla are partners in the project, along with Apache Corp., Encana Corp. and EOG Resources Inc. With Japan searching for alternatives to its nuclear power program, B.C. is well positioned to develop an LNG market and there are proposals for at least four other plants.
Mr. Ross said the Premier can offer some help, however. As the financial backers make their decisions about whether to invest in Kitimat LNG, final export permits have yet to be issued and a faster process could help. But the biggest hurdle remains a commitment from the Crown utility, BC Hydro, to supply electricity to the plant.
Converting natural gas to liquid, by chilling it to –160 degrees, reduces the volume for transport. The process requires large amounts of energy – the Kitimat plant would, by itself, increase BC Hydro's domestic demand by roughly 5 per cent.
B.C. Jobs Minister Pat Bell acknowledged that the province needs to grapple with the growing demand for electricity if it is to unlock its mining and energy potential.
At the same time, he is trying to cool expectations that the government can stanch recent job losses across the province.
"I don't know if we're trying to address a problem; rather I would say we are trying to take advantage of an opportunity," he said in an interview.
Ms. Clark's plan is modelled on Australia, which has enjoyed significant economic growth by identifying new markets for that nation's natural resources, and ensuring that business has the networks in place – roads, ports and transmission lines – to make the most of those opportunities.
Ms. Clark will also visit the Port of Prince Rupert and Thompson Rivers University in Kamloops this week to announce transportation plans and skills training initiatives. She will meet with representatives of small and big business to promise reduced red tape and other measures designed to entice job creation and investment.
Economists warn that there is only so much a sub-national government can do to influence jobs without expensive stimulus projects that Ms. Clark's government has ruled out.
"The government can make it more attractive to hire, but in the end there has to be demand," said Helmut Pastrick, chief economist for Central Credit Union 1.
He said the key signal Ms. Clark needs to send is what kind of British Columbia she wants to see in the long term. "Are we going to see pipelines built from the tar sands, are we going to be an exporter of LNG, to what extent are we going to be involved in green energy?"
Jock Finlayson, economist for the Business Council of B.C., said the government shouldn't be judged on how the province's jobless statistics change from month to month in the short term.
"It's a foolish narrative," he said. "We're caught up in a very challenging global economic situation. We are in for a rough time and the provincial government can't fix that."
He said the government would be better to frame its plan in terms of "economic development priorities."
Ms. Clark has given herself five days – an announcement every day this week – to explain her objectives.
Justine Hunter