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Glen Hodgson
Senior Vice-President and Chief Economist |
Seems like Newfoundland and Labrador is a popular destination these days! I had a chance recently to speak at a symposium in St. John's on the environment for industrial relations. The event was very revealing regarding the province's very positive economic future, in two respects – the desire for strong labour relations, and the development of a vision for a post-carbon economy in Newfoundland.
The first revelation: Newfoundland and Labrador has developed a special arrangement among business, organized labour and government called the Strategic Partnership. The concept draws upon European experience and creates a forum that may be unique in North America. It is one where leaders from the three sectors can meet in a neutral space to discuss issues of common interest like the labour market, population developments, training, or innovation.
The concept is simple to describe in theory, but hard to accomplish in practice. In theory, the usual tensions of industrial relations and bargaining are supposed to be left at the door, and a spirit of cohesion, consultation and even cooperation are supposed to result from honest and open discussion. In practice, this kind of partnership can only work if there is a willingness to talk frankly, and if there is strong and sincere leadership from all three parties involved -- people who are prepared to put some skin in the game and make a commitment to open dialogue on issues that matter to all of them.
From what I saw, leaders from organized labour, business and the provincial government in Newfoundland and Labrador have found the right conditions to make the Strategic Partnership work there. Why Newfoundland? Maybe it is due to special circumstances -- very tough economic times in the recent past, combined with the new opportunities created by off-shore oil reserves that no one wants to mess up. Maybe it is the wonderful and distinctive provincial spirit. A nudge forward at the right time from Premier Danny Williams certainly didn't hurt.
But whatever factors underpin the creation of the Strategic Partnership, Newfoundland is building relationships and developing cohesive policies and practices through a labour relations process that is, to our knowledge, unparalleled right now in North America.
The second revelation was that Newfoundland and Labrador is developing a long-range strategy for the post-carbon economy, and began to develop that strategy some time ago. I heard directly from Premier Williams of his vision for transitioning over the coming decades from being a supplier of non-renewable hydro-carbon energy from off-shore oil and gas, to being a user and supplier of renewable electrical power such as hydro and wind. Elements of the strategy are laid out in a document called “Focusing Our Energy” on the province’s website.
This vision is very much conceptual for now -- development of the Lower Churchill’s hydro electric capacity is just beginning. If the concept is ever to be realized, huge investments in renewable power production and distribution will be required, along with the right political conditions and major structural changes in economic policy. To help pay for the transformation, off-shore oil and gas resources will have to be slowly converted over the coming decades from physical assets, into financial assets, and those financial assets will then have to produce a steady stream of income.
This is dreaming very big. However, a successful journey toward a post-carbon economy in any province or country will require big ideas. To reach a post-carbon future successfully, jurisdictions will want to develop a broad roadmap of where they plan to go and begin to implement supportive policies accordingly. Newfoundland and Labrador has taken that initial step. Its plan cannot be easily replicated by other provinces with different endowments of resources, but Newfoundland’s “big idea” does serve as an example of the kind of thinking that will be required for a successful global transition to a low-carbon future.