Saturday, February 16, 2013

Wanting More Cake and Eating it Too

The Vancouver Sun newspaper, February 16th, 2013, indicates that the Coal Association of Canada has released a special report on the industry's economic impact in British Columbia.

In reading the news article, one cannot help yet again viewing the way the extractive industries (perhaps all industries) seem to feed into somewhat contradictory views of the need for industry expansion as if there is an unqualified need for ongoing, massive capacity growth for, in this case, coal extraction and shipment.

In British Columbia, for several years now, both government and the various for-profit sectors of the economy have been arguing that changing demographics -- not to mention economic expansion -- are leading to an impending crisis in employment.  Specifically, there will not be enough skilled workers in the near future to fill all the skill positions being vacated by the baby boomer workers as they retire.  While the provincial government seems slow to recognize the post-secondary educational needs, there does seem to be a general consensus that there will be a considerable shortfall in appropriately skilled employees sufficient to sustain the current levels of economic activity.

Speaking specifically of the Coal industry in British Columbia, the Vancouver Sun article indicates that existing BC coal mining and shipment activities provide substantial economic benefits to the province:

"[In 2011] the province's 10 coal mines produced 25 million tonnes of coal worth $5.2 billion and contributed $3.2 billion to the provinces gross domestic product.  Coal mining accounts for 3,800 direct jobs and contributes $298 million in royalties to provincial coffers."   The report also indicates that using multipliers, this translates into support for 26,000 jobs and total revenues to the province of $399 million.

So, it would appear -- in economic terms -- the industry is thriving.  And if the projections about skilled labour are to be believed, then the current ten coal mines (and most employers) will be challenged over the coming years to sustain an effective and skilled work force.

So, here is the uncomfortable question:  In the face of such staffing challenges and keeping in mind the kind of current economic production -- not to mention issues of climate change -- why is the coal lobby so interested in pressing for even greater increases to capacity and revenue?

I know that we used to live in a time where most of us believed that maximum economic growth was perceived to be the most sensible path for human endeavor.  But it strikes me that this assumption hardly makes sense any more; and it even may be the case that we need to pay serious attention to the fact that there may be serious problems in simply sustaining the economic on which we have come to depend.

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