Jason Kenney and the United Conservative Party’s (UCP) pro-business message has construction leaders in the province cautiously optimistic that the new premier could boost Alberta’s struggling economy and attract investment.
Kenney defeated Rachel Notley and the Alberta New Democratic Party (NDP). The NDP kept 24 seats while the UCP won 63.
“I think that, if as promised, the UCP is indeed, through various strategies, able to attract investment back to Alberta, more construction projects will come and that obviously will have a direct impact on our members,” said Bill Black, president of the Calgary Construction Association. “It’s a change in tone. It’s a business-friendly message that we believe is something that will make a difference. It won’t be short-term but in the long-term prospects seem more business-friendly and maybe we will move beyond some of the impasses we have felt.”
During his campaign, Kenney vowed to fight Prime Minister Justin Trudeau on the Carbon Tax, push for a cut in federal income taxes on Albertans as well as impose changes to Employment Insurance to benefit those who lost jobs in the recession.
Kenney also was unapologetic in his support of pipelines, promising to halt oil and gas shipments to B.C. if the province delays pipeline construction. He has also said he would roll back some of Notley’s environmental measures and challenge pipeline critics.
Black said Notley’s policies misunderstood the construction industry and crippled an already struggling sector.
“There were regulatory changes in how the construction business functioned that had unintended results that handcuffed the ways in which our personnel were able to function,” said Black. “If these are relaxed, it will restore a bit of agility to our industry.”
Black cited the example of banked hours, which is crucial for season-dependent work like roofing. He said the Notley government handicapped the industry’s ability to bank hours during the summer to distribute during the winter, when some work isn’t possible to give employees a consistent paycheque.
“There was regulatory interference and there has been unintended results,” said Black. “That level of interference adds layers that further restrict the ability of businesses to function…just another increased pressure on a market that is the worst it has been in a couple of decades, especially Calgary. We’re not expecting a silver bullet, but that business-friendly tone, commitment to attract investment and removing regulatory handcuffs is all positive.”
We believe Alberta’s energy sector now has a strong defender
— Paul de Jong
Progressive Contractors Association of Canada
John McNicoll, executive director of the Edmonton Construction Association, was optimistic about the future and was pleased to see a clear mandate from the people of Alberta by electing a majority government.
“We are ready to serve the people of Alberta no matter who is in government,” said McNicoll. “As the constructors, we live in Alberta and care deeply about the province and we care about roads, schools and hospitals and every part of the built environment. No matter who is in government, the construction community is ready to support them.”
McNicoll noted the flight of capital and the loss oil revenues in recent years has been discouraging, but he is hopeful Alberta will find ways to participate in the worldwide oil resource market.
“We look forward to having the rest of the country support us and help us in getting our resources to market,” he said.
The Progressive Contractors Association of Canada (PCA) also expressed support for Kenney.
“This is the party with the right policy and approach to get Alberta’s struggling economy back on track,” said Paul de Jong, PCA president, in a statement to media.
The PCA said it specifically supports the UCP’s promise to trim corporate taxes, reduce regulatory red tax and encourage energy investment by speeding up approvals, unblocking gas shipments and supporting LNG exports.
“We believe Alberta’s energy sector now has a strong defender who will unapologetically stand up for Alberta’s interests,” said de Jong. “Major projects that are critical to Alberta’s economy, including the Trans Mountain expansion, have been in slow motion for too long.”
The PCA also expressed support for the UCP’s “Skills for Jobs” plan that aims to increase participation in the trades.
In a written statement to the Journal of Commerce, Ken Gibson, executive director of the Alberta Construction Association (ACA), congratulated Kenney and the UCP on their win and thanked Notley and her government for their service.
“The ACA will continue to advocate, in a non-partisan manner, member priorities to support construction jobs,” said Gibson.
He added the ACA appreciates the new government’s commitment to maintaining the previous government’s capital budget and looks forward to dialogue to “ensure regulations better fit the unique nature of construction.”
The association stated it is encouraged by Kenney’s promises to support business growth through “streamlined project approval processes” and reducing business taxation. It also applauded the UCP’s ideas to improve education and mobility of skilled trades.
The Alberta Roadbuilders and Heavy Construction Association wrote a statement to the Journal of Commerce saying it was “looking forward to working with the newly elected United Conservative Party on continued capital planning and infrastructure investments while increasing competition within Alberta for our sector.”
Kenney will assume office on April 30.
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