By Cheryl Jahn

Northern BC economic surviving through COVID better than others

Feb 9, 2021 | 4:02 PM

PRINCE GEORGE – The North has fared the COVID pandemic, economically, much better than our peer communities to the south.

“It’s as simple as there are more people in the Lower Mainland, in the Capital Regional District and the Okanagan Valley that are employed by the service sector and the hospitality sector,” notes Joel McKay, CEO of the NDIT. “And those were the sectors hit the hardest by COVID, right?”

While the report notes that forestry will always play a role in the regional economy, it is not the king of the resource sector anymore.

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“But when you ask the question ‘What do you see as the opportunity for new development? New investment going forward?’ It’s immediate. It’s in oil and gas.”

McKay writes in the report: “… it is not inaccurate to say that current major energy projects in the region – Coastal Gaslink, LNG Canada, Site C and TMX – saved our economic bacon, as it were. Collectively, at a time when many of our hotels, restaurants and service sector businesses have been tremendously impacted, the construction crews working for these major projects have generated significant local spend in many communities that have helped, in part, to offset the impacts of the virus.”

But the resource sector is cyclical in nature and McKay says it’s global events that often have the greatest influence, even though they seem to be a million miles away from Northern BC.

“To be honest with you, the things I worry about most right now when it comes to our economy are global in nature. We have a new Administration in the United States that’s got a different view on oil and gas development. We still don’t have a softwood lumber agreement. We have a direction globally moving toward populism. We’re seeing the resurgence of Russia and China with the interference with economic forces having a real impact on the West’s ability to get its products to market and move forward with new trade arrangements.”

All that said, the report concludes: ” … our region remains well-placed to assist with B.C.’s COVID-19 recovery. Our wealth of natural resources, infrastructure and supply chain all present opportunities for enormous investment that would generate real provincial GDP growth, new jobs, both temporary and permanent, and significantly increased spending that would help with small business recovery.”

“But this can only happen if we respect the land and conduct ourselves in an environmentally responsible manner, are inclusive of our Indigenous communities and their desire for self-government and focus on real goals that extend beyond GDP and jobs – viewing these opportunities through a lens of wellness that will ultimately support better healthcare, education and social outcomes for the people who call this place home.”

“In short, we must take a more sophisticated approach to northern development than we have in the past.”