Breaking the boom and bust: A look at how Alberta is trying to diversify economy
CALGARY — As Alberta struggles to emerge from one of its worst economic downturns, Premier Rachel Notley has been pushing to make the province less reliant on oil and the boom and bust cycle that comes with it.
The government has launched various grants and incentives in an effort to lure investment from a wide range of industries. Critics have instead called for lower taxes and a delay on environmental policies as a way of stimulating the province’s moribund economy.
Here’s a look at how the government’s efforts are playing out in a few key sectors:
Petrochemicals: To encourage more processing of its energy resources at home, the province has set up an incentive program to attract companies that will turn propane into plastic pellets used in everything from car parts to Canadian currency. This month, the government awarded $300 million in royalty credits to Pembina Pipeline Corp. to build a petrochemical processing plant that is expected to create about 2,250 construction jobs and employ another 150 people permanently. Inter Pipeline was handed another $200 million in credits for a similar facility, which is estimate to generate about 2,000 construction jobs and 95 permanent positions. The government says the incentives are needed to remain competitive, particularly with the U.S., but opponents say more jobs should have been created given the amount of public money being offered.