By Nate Dolha
Published: Oct 4, 2014
I believe the injection of 100 plus jobs from the Woodfibre LNG plant will ultimately be a great thing for our endlessly transitioning local economy. Woodfibre LNG provided me with some of their own projections into wages and tax contributions to the local economy (and no, I’m not on the payroll, so we can skip the drama).
At a high level, the completed project will likely inject over $6 million in staff wages, $2 plus million in local property taxes. Add to that an industry multiplier (the amount of economic activity generated per $1 of sector GDP), and the contract labour that would be employed in addition to the staff positions. We are talking about millions upon millions for the local and regional economies and it’s hardly the economic disaster the opposition would like you to believe it is.
More importantly, this is the kind of facility that fits our demographic perfectly, despite the narrative that some are trying to construct for us. Squamish, while changing, is still a community firmly rooted in industry. We have a labour force dominated by trades, transport, equipment operators, etc. This sector alone makes up 20 per cent of our current labour pool, mix in the 12 per cent who work in business, finance, and administration occupations, and it becomes clear that this project will be well served by the one-third of the Squamish labour pool who are in related occupations.
By comparison, folks employed in art, culture, sports, and recreation only make up about 3 per cent of our labour pool. I would agree that this sector deserves to be developed, but not at the expense of industry.
In the September edition of the Squamish Reporter, guest columnist Auli Parviainen made the case that place-based development is the way forward for Squamish, and that our communities natural appeal and lifestyle would be the selling point to bring so called new-economy jobs to our community. While I don’t discount the value of place as an economic driver, there is more to it than just a pretty face. Expanding on Auli’s example, California’s Coachella Valley, and its tech incubator, decided to pitch themselves to the tech industry. The reason was not because it’s nice to look at, but because they had no other choice.
In 2009, Market Street Services submitted an economic blueprint for the Coachella Valley, and in it they clearly lay out the assertion that they had no other viable industry to pursue for the region that could provide the growth needed for a sustainable local economy. It wasn’t so much that they wanted to shift, it’s that they had little choice.
Squamish, with all of our advantages, is well positioned to grow a wide range of industries and that diversity is key for all of us.
Sound off on Twitter: @natedolha
nick hanley says
the economics of greed. please take the time to realise your own addiction b4 you try to defend it
Jon S. says
Greed? Is building a stronger economy greedy? No.
Is “My” Sea-to-Sky greedy by wanting to stop this to make their pretty view even nicer? Yes.
Ron says
Nick, here we go again…..
Jean says
I just wasted 5 min of my time on hot wind and nothing that I can grab and be happy about or better educated on the main issue of LNG that is laying over us just as an explosive cloud will be hanging over Squamish some day if W-LNG is going ahead, Why is nobody talking about an ISIS attack in Squamish on a Barge load full of LNG stored in front of the proposed LNG Plant 5 miles away out there, day and night until it is picked up by an equally vulnerable Vessel. They would love to takeout a populated area and enjoy it…has everybody read the Chief what the Americans are doing in protecting LNG Vessels? and we are asking them whether we can give them a hand…over there….making us equally vulnerable with much less smarts and financial commitment, hoping that they will not execute any of us!!! Not that I say we should not help other nations if they have a will to fight tyranny or religious fanaticism.
Jon S. says
Did you really just bring ISIL into this? That is a huge stretch, even for your standards.
It is also offensive to the Canadian men and women who are going abroad to fight this evil.
Shame on you.
Ron says
Jean, thank you for your incredible assumptions. ISIS? really…? LNG is transported in a FROZEN (ie. solid) state. EarthFirst!, Greenpeace, local eco-nutters, yes. possible, ISIS/ISIL or whatever these perverts called themselves, seems a bit over the top. A thought does exist that argues eco-radicals are joined by failed AQ types but even that is a bit over the top.
Jon… totally agreed. disrespectful to our forces.
Jon S. says
Nice to see some real facts. Nice work Nate.
larry mclennan says
Jean- lets see- explosive clouds & ISIS terrorists what’s next-brain eating zombies ?
Craig D. McConnell says
Hello Nate,
Well done! Thanks for completing the research and providing verification through the provided links.
MattB says
Interesting angle Nate. And yes, wouldn’t it be lovely if the dream of 100 new jobs for Squamish citizens along with the potential for $2 million in annual property tax revenues came true?
But there are some big challenges in seeing those dreams realized. First, in July the government inked an agreement with China to allow foreign workers to “help build the LNG industry.” (see http://www.vancouversun.com/China+agree+allow+foreign+workers+help+build+industry/10063770/story.html )
If this deal is anything like the one that allowed Chinese workers to come and work in the mining industry in northern BC (who don’t speak English) at lower wages no doubt and to the exclusion of Canadian workers, the benefits to our community become far less certain, especially if these foreign workers are housed and fed at or near the Woodfibre site. In the case of Chinese company HD Mining, the Canadian federal government sided with the company “to conclude there were no Canadians available to fill the positions at the mine.” (see http://www.ctvnews.ca/canada/chinese-mining-firm-in-b-c-facing-another-legal-challenge-over-foreign-workers-1.1601565 ) The Clark government has already shown a disturbing enthusiasm to side with LNG foreign backers, what’s one more in the line of growing concessions?
We already know that the BC government has been forced to cave on the tax rate it will charge LNG companies by cutting them in half. This highlights the tenuous business case for the industry given declining natural gas and oil prices. My question is why wouldn’t the Singapore company behind the project also ask the municipality to match the BC government’s deal to cut taxes in half as well? It undoubtedly will. Does the municipality hold firm or give in?
As an added incentive, BC has also thrown in the promise to build Site C dam at a cost of $10 billion at taxpayer expense to provide discounted hydro power since “just one of the dozen or more LNG plants proposed for BC’s north coast over the past year – from Shell and its Asian partners’ – would eat up the entire output of the proposed 1,100 MW Site C Dam.” http://commonsensecanadian.ca/bc-hydro-inflates-demand-justify-site-c-dam/
Finally, Russia recently inked a deal to pipe natural gas to China for $10.50/mmBTUs. Piped Russian natural gas, which is far cheaper to produce because it doesn’t require the product be cooled to -162 degrees C and shipped by tanker across the Pacific. According to the projections, BC had hoped to sell LNG for $16/mmBTUs to Asia at a cost base of $10/mBTU. There is no way any LNG can be profitable at the Russian price especially given an energy market in which prices are falling. (For more on the business case challenges see http://www.edmontonjournal.com/Lamphier+prospects+still+doubt+despite/10315915/story.html ) The questions about jobs and municipal tax revenues will prove moot if the WLNG project has little chance of being profitable.
So here are the problems with the rosy potential economic benefits you outline in your article (assuming the business case suddenly improves and any LNG plants are build at all). First, even if WLNG does eventually provide 100 full time jobs, how many will be given to residents here to be spent in Squamish? Secondly, what will the cost be in tax breaks, hydro subsidies and potential municipal tax deals be to BC taxpayers once all is said and done?
MattB says
Interesting that the Yes to LNG – Squamish advocates have fallen silent. I posted two questions on the Yes to LNG – Squamish Facebook page yesterday but see both have been removed today. It appears that they have also blocked further comments by non-moderators. I had hoped to start a serious and civil dialogue with proponents with some serious questions and concerns I had about WLNG. Apparently, they aren’t interested. Makes me wonder what they have to hide and why the censorship behind the scenes? BTW, yet another compelling study into fugitive methane rates (see below). Why is our BC Natural Gas Ministry telling us that leakage from drill sites averages between 0.3 to 0.5% when comprehensive studies by satellite and other means put the rate at between 4 and 17% with an average of 10%?
Researchers find record leaks of methane from oil shale boom areas
http://www.eenews.net/stories/1060007693