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January 23, 2009

Chance for change in Canada

If you have read a newspaper or watched CBC news in the past year, you will know that "change" was the word of 2008. Since it worked for Obama, I thought I'd give it a try. My first blog as part of The Blog Journalists will be focusing on changes the Canadian government should be making.

Currently, our economy is in terrible shape; banks aren’t lending, people aren’t spending and we are shedding jobs like a German
sheppard sheds fur in the summer. Yesterday it was announced that Canada would run a $64 billion deficit over the next two years. That’s a far cry from what Jim Flaherty predicted two months ago but that’s a whole other story. Our government continues to pour billions into the failing auto sector, which has yet to show any improvements and likely won’t given their history. I for one feel that it is time for the government to cease their bailout plans, or handouts as I like to call them, and start focusing on rebuilding the economy in a new way. There is a great opportunity for the government and private enterprises to create thousands of new jobs and help the environment at the same time.

The Canadian economy is held together by the auto industry. In recent years, Ford, General Motors and Chrysler (the big three) have been struggling to compete with Japanese automakers. The big three are way behind when it comes to technology and that has to change. The next five to ten years are going to decide their fate. In order to survive, they will be required to heavily invest in new technologies and make sure that they are leaders, not followers. While hybrid cars are a start, they need to look at other new technologies such as the electric and hydrogen fuel cell cars. Electric cars are ever so close to being road ready. The only barrier is the ability to recharge their batteries. The big three must create a partnership with the companies who will build these electric stations (which will likely infuriate the oil companies). They will also have to take an active role in educating the country on the new technology. Hydrogen fuel cell cars are several years away from being road ready but should still be looked at seriously.

As for the government, they should increase the value of the rebates given to those who purchase energy efficient cars. In tough economic times like we are experiencing today, there aren’t many who are willing to spend more on a hybrid car when they are struggling to afford basic items. Even the smallest of incentives would get more of these cars on the road. Another idea that is being thrown around lately is giving those who drive energy efficient cars new privileges, such as allowing them to drive in HOV and bus lanes.

Moving away from automobiles and onto trains, it is time the government invested in upgrading the national train system. It’s quite surprising how far behind our system is compared to the United States and Europe. The biggest barrier is the cost. Can someone please explain to me why it costs just as much, if not more, to ride a train than it does to fly? There aren’t many willing to take a train from Toronto to Montreal when it costs the same to fly but takes seven hours longer. We should turn our train system into an asset by constructing more tracks, especially those with high-speed capabilities. This would surely lead to greater use of the train, which in turn would eventually bring about lower fares.

The next step is to look at investing in renewable energy. In 2007 Canada was the world’s seventh largest consumer of oil. While we consumed significantly less than those at the top of the list, there is still room for improvement. The easiest project to implement is wind turbine farms. They should be built in areas that are deemed best fit, even if some find them to be an eye sore (It’s OK Kincardine, take a deep breath). In addition, there should be greater promotion of solar panel use. While I understand that they can’t provide enough energy to power a house or a building, every bit counts. I’m sure there are many people who would love to see a smaller number on the bottom line of their utility bill. Seeing as corporations are the biggest consumer of energy in the country, they should be given greater incentive to adopt these new ideas. While there are rebates and small tax breaks currently in practice, they clearly aren’t as tempting as originally thought.

Implementing the ideas that I listed above would create thousands of jobs over the next few years. There would be a demand for scientists, engineers, construction workers, and a variety of business related jobs. The banks would also benefit by providing loans to the government and private enterprises responsible for these projects. This would kick start the economy and get people back on their feet. At the same time, most of these jobs would be green jobs. Who says there has to be a tradeoff between the economy and the environment. The House of Commons are back in parliament next week which will feature the much anticipated budget announcement. Hopefully the government takes this opportunity and runs with it.

Brent Densmore

1 comment:

Anonymous said...

Great blog Brent. I enjoyed the topic, ideas and the quality of the writing.I hope that you will continue to contribute.

In my brief travels in Sweden, I particularly noted the efficiency of the trains - such a natural answer for much of Canada's intercity travel. Why oh why haven't the government and private investors seen the opportunity for efficiency, profit and environmental benefit?

You are so right to look at the business advantages of building a green economy - look at what Germany and Denmark have done for example.

GHG