Premier Jason Kenney speaks at Wednesday's Lethbridge Chamber of Commerce event. (Lethbridge News Now)

By David Opinko

Kenney touts Alberta’s “culture of resilience” as economy rebounds

Jul 29, 2021 | 5:05 AM

LETHBRIDGE, AB – Premier Jason Kenney and Finance Minister Travis Toews were in Lethbridge Wednesday to talk to the public about the current state of Alberta and where they see things going in the future.

At a luncheon event hosted by the Lethbridge Chamber of Commerce, the provincial politicians were not shy about telling attendees just how bad the economic situation this time last year was.

Not only was the province impacted by COVID-19 shutdowns and the global economic retraction, but also one of the largest crashes in oil prices in history. Kenney notes that the oil and gas sector typically makes up about 20 per cent of the provincial GDP.

Toews admitted to being in panic mode at least a few times during the early stages of the pandemic as the government saw a “massive” decline in revenues.

In August 2020, the provincial deficit was forecast to be $24.2-billion. When Kenney first ran for office in 2019, he admitted to mocking the then-reigning NDP for having a $6-billion deficit.

WHAT'S ON

Here is what's on this weekend in Medicine Hat and area: Dec. 13-15

1h ago

IN THE COMMUNITY

Medicine Hat's Mustard Seed adding new shelter spaces at Alberta government's request

Dec 12, 2024

HOLIDAYS

Medicine Hat Kiwanis hosting Christmas dinner, applications due Friday

Dec 12, 2024

READ MORE: Impacts of COVID-19 and oil price collapse result in historic deficit for Alberta

In the second half of 2021, however, things have started to turn around, thanks in large part to what Kenney called Alberta’s “tremendous culture of resilience.”

“There is an intangible thing in this province which is hard to measure and that is the entrepreneurial culture. We do measure it one way – we have by far the highest number of businesses per capita in the country, the highest number of small businesses, the highest number of women-owned businesses. I think that’s the entrepreneurial culture that I think is going to fuel us in the next few years – that’s what we’re banking on.”

A group of five major Canadian financial institutions recently released their economic projections, predicting that Alberta’s economy would grow at a slightly faster rate than the rest of the country.

READ MORE: Unemployment & economic growth in Alberta to be slightly higher than national average

Kenney spoke about large increases in activity this year for sectors like natural resources, agriculture, construction, and real estate. The companies that were able to shift their business models during the pandemic, in particular, have been doing quite well.

Even the film and TV sector is thriving, as filming for the new HBO series based on the video game, The Last of Us, started this summer in Southern Alberta. Kenney has been told that HBO will be spending upwards of $200-million per year on the project, which could last as many as eight seasons.

READ MORE: “The Last of Us” filming in Southern Alberta this summer, extras needed

“I think we’ve got a strong, sustainable, at least mid-term recovery in commodity prices, not just for oil and gas, but also forestry and ag products. We’re seeing a huge return in investment, and I think all the natural advantages of this province are setting us up for a period of sustained growth.”

It is not all good news for the provincial economy, though, as many business owners are still struggling.

The Canadian Federation of Independent Business reports that, while 81 per cent of companies in Alberta have fully reopened, only 42 per cent are fully staffed and 28 per cent have returned to normal levels of sales.

READ MORE: How Lethbridge compares to the rest of Alberta on property taxes & spending

Kenney outlined several steps the Alberta Government has or will be taking to address employment, but agrees that they are mostly medium and long-term strategies.

• Expanding skills training by offsetting the cost to businesses to train new workers
• A long-term post-secondary strategy where schools would work alongside industries to create programs in line with what the sectors need
• Focusing immigration programs on rural and remote communities that are lacking skilled labourers
• Having certified workers from elsewhere gain automatic certification when they move to Alberta

While he believes that pandemic support programs were necessary at the time, they are now holding the economy back from short-term success.

“Of course, we want a program that’s there for people who can’t find work, but in an economy that’s expanding, where labour shortages are becoming the top concern of businesses, we need to encourage people to get back into the workforce. I think it’s time to roll up programs like CERB and the CERB-successor program.”

As Kenney and Toews arrived at the Sandman Signature hotel for the event, they were greeted by dozens of protesters, voicing their concerns about everything from coal mining to healthcare and education, among other issues.

READ MORE: Protesters greet Premier Kenney and Finance Minister Toews visit to Lethbridge

Kenney shook off some of the picketers as “public sector collective bargaining,” which he believes is a “very typical and understandable tactic” by union organizations and supporters.

He told media that they are listening to the voices of all Albertans, despite what LNN was told by those standing on the sidewalk near Scenic Drive South.

“Everybody’s voices are heard – this is a province with a very active democratic spirit and I welcome people coming out to demonstrations to share their views – we hear from everybody. At the end of the day, we were elected on a mandate to focus on jobs, the economy, pipelines, and a fair deal for Alberta, and we are pursuing that.”

Kenney and other provincial government officials have spent the last two days touring parts of Southern Alberta.