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By Stan Mitchell

Anyone who lives in this region can tell you that the Cariboo is dependent on the resource sector. Which is why in 2010, it was mining, forestry, and agriculture that helped the region recover from the losses sustained during the recession. Looking ahead, there are a number of proposed projects that will build on the positive momentum that began last year.

According to the BC Check-Up, Regional Edition, the Cariboo’s economy rebounded in 2010. After two years of devastating job losses, employment grew by 4,800 new jobs: 1,300 jobs in the goods-producing sector and 3,400 jobs in the services-producing sector, with full-time positions accounting for virtually all job growth.  

Mineral exploration and drilling activity accelerated, and lumber production at sawmills in the Northern Interior grew by 18.9 per cent in 2010. The region is actually feeling the crunch of labour shortages in some forestry related jobs, and many trucks and machines are sitting idle due to a lack of qualified operators.

After posting losses in 2009, employment in agriculture rebounded with the addition of 500 jobs last year.  Agriculture, particularly beef, is an important and stable part of the region’s economy and generates approximately one fifth of the province’s beef cattle production.

These increased job opportunities positively affected the unemployment rate, which dropped to 8.1 per cent, well down from the 12.1 per cent rate for 2009.  This improvement helped push the labour force participation rate up to 68.4 per cent, well above the provincial average of 65.5 per cent in 2010.

While the value of major project investment dropped marginally in the Cariboo, from $6.2 billion in 2009 to $6.1 billion, the value of projects currently underway increased substantially from $2.1 billion to $3.6 billion.

In the last quarter of 2010, there were a total of 24 projects in the proposal stage, valued at $1.5 billion.  Of these developments, six, worth $413 million, were slated to commence construction in 2011. 

The growing number of current and future developments contingent on our region’s wealth of natural resources bodes well for the coming year:

·         The Mount Polley mine is looking to extend the mine life beyond the middle of this decade;

·         The Gibraltar mine has nearly completed a $300 million modernization;

·         The Mount Milligan mine project is projected to generate 600 jobs during the construction phase, and 400 full time jobs once in production;

·         Conifex has initiated a $45 million bio-energy plant, utilizing fibre from sawmilling and timber harvesting operations in the production of electricity; and

·         The $815 million Prosperity Gold/Copper project currently being pursued, has the potential to employ 350 people over a 20-year mine life.

As the region’s economic recovery gains momentum, there is a fundamental tax policy issue on the horizon that will undoubtedly impact the region’s export and service industries. The outcome of the HST referendum will affect the provincial economy and businesses of all sizes. British Columbians should inform themselves on the consequences of retaining a 10 per cent HST, or going back to a 12 per cent PST/GST. 

Stan Mitchell is a chartered accountant with KPMG LLP in Prince George.