What is competitiveness? Business Factors Commodity Index Labor Rates Power Rates Corporate Taxation Red Tape Summary Links

1. Alberta Competitiveness –
May 2016
By: Paul Young, CPA, CGA

2. • This presentation is on perspective when it comes to competitiveness
for Alberta

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. Agenda
- What is competitiveness?
- Business Factors
- Commodity Index
- Labor Rates
- Power Rates
- Corporate Taxation
- Red Tape
- Summary
- Links

5. What is competitiveness
• Ability of a firm or a nation to offer products and services that meet
the quality standards of the local and world markets at prices that
are competitive and provide adequate returns on
the resources employed or consumed in producing them.

6. Business Factors / Competitiveness
• Input costs
• Raw Material
• Labor
• Power
• Other Overhead
• Other costs
• Taxation (Payroll, Consumption Tax, Property taxation, Corporate Taxation,
Carbon Taxation)
• Building Permits
• Regulations (Environmental)
• Transportation (Infrastructure)

7. Raw Materials
Raw Materials
• Prices are based on US
• Prices are set by exchanges like
LME, Mercantile, OPEC, etc
• Transportation/delivery
• Carbon Tax
• Other costs

8. Labor Rates – Alberta
Natural Resources
• Alberta $30.08
• Ontario $19.42
• Quebec $20.59
• Saskatchewan $28.20
Average Hourly Wage – April 2016
Manufacturing & Utilities
• Alberta $27.96
• Ontario $21.43
• Quebec $19.55
• Saskatchewan $26.38

9. Industrial Rates by Provinces

10. Alberta Corporate Taxation

11. Small Business Ranking – Red Tape

12. Alberta Competitiveness
• Alberta labor rates are some highest in Canada for Resources and Manufacturing
• Alberta Industrial Hydro Rates are the 4th highest in Canada
• Alberta Corporate Taxation is 12% as compare to Ontario 11.5% and British Colombia 11%
• Carbon Tax/Pricing is added to cost of goods through the supply chain. Key quote “Beverly Gilbert, national
commodity tax leader for law firm Borden Ladner Gervais, said there's no question that Alberta producers will
face higher costs and a "huge compliance burden" as a result of the carbon tax. "They will be paying this non-
refundable tax that people in Saskatchewan will not be paying, for instance, on things like venting and flaring,"
Gilbert said. "That makes us less competitive."
• NDP only spin is Alberta
business tax burden is
low in Canada
• There are other costs to
consider when
companies make
investment

13. Sources
• Contact: paul_young_cga@Hotmail.com
• Other links
• Hydro Rates - http://www.slideshare.net/paulyoungcga/power-generation-canada
• Carbon Tax impact - http://www.slideshare.net/paulyoungcga/carbon-tax-or-carbon-
pricing-impact-on-consumer-good-prices-for-canada
• Canada Competitiveness -
http://www.kpmg.com/ca/en/issuesandinsights/articlespublications/press-
releases/pages/canada-keep-stop-spot-as-cost-competitive-mature-market.aspx
• Alberta Business Burden - http://www.conferenceboard.ca/press/speech_oped/16-
05-20/provincial_tax_systems_are_ripe_for_change.aspx
• FDI – Alberta - http://www.capp.ca/media/news-releases/capital-investment-in-
canada-oil-and-gas-industry-down-62-per-cent-in-2-years