NOTICE TO THE GVRD SUSTAINABLE REGION INITIATIVE TASK FORCE

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1 November 1, 2006 NOTICE TO THE GVRD SUSTAINABLE REGION INITIATIVE TASK FORCE You are requested to attend a Regular Meeting of the GVRD Sustainable Region Initiative Task Force to be held at 9:00 am on Tuesday, November 7, 2006, in the 2 nd Floor Boardroom at 4330 Kingsway, Burnaby, British Columbia. 1. ADOPTION OF THE AGENDA A G E N D A 1.1 November 7, 2006 Regular Meeting Agenda Staff Recommendation: That the Sustainable Region Initiative Task Force adopt the agenda for the Sustainable Region Initiative Task Force regular meeting scheduled for November 7, 2006 as circulated. 2. ADOPTION OF THE MINUTES 2.1 October 11, 2006 Regular Meeting Minutes Staff Recommendation: That the Sustainable Region Initiative Task Force adopt the minutes of the Sustainable Region Initiative Task Force regular meeting held October 11, 2006 as circulated. 3. DELEGATIONS No delegations presented. 4. REPORTS FROM COMMITTEE OR STAFF 4.1 GVRD and Regional Economic Initiatives (deferred from Oct 11) Designated Speaker: Delia Laglagaron, Deputy CAO, GVRD Recommendation: That the GVRD Board: a) Request the Chair to appoint a Standing Committee on the Economy as a forum to discuss issues on the region s economy and define the role of GVRD and partners. b) Provide the Greater Vancouver Economic Council (GVEC) formal support including GVRD s support in their request for Federal and Provincial financial assistance. c) Direct staff to identify projects that may be done in collaboration with GVEC; and d) Develop Terms of Reference for the development of a Regional Economic Strategy using the paper entitled PROSPERITY, LIVABILITY, SUSTAINABILITY: Seeking a Strategy for the Future of Greater Vancouver s Economy, as a starting point.

2 4.2 International Association of Business Communicators Award presented to GVRD television program The Sustainable Region (deferred from Oct 11) Designated Speaker: Bill Morrell, Media Relations Division Manager, GVRD Recommendation: That the Sustainable Region Initiative Task Force forward this report, International Association of Business Communicators Award presented to GVRD television program The Sustainable Region, dated October 4, 2006, to the Board for information 4.3 Future of the Region Sustainability Dialogues: Dealing with your Drug Problem, Labour Pains, and The World Is Watching Designated Speaker: Johnny Carline, Chief Administrative Officer, GVRD Recommendation: That the GVRD Board: a) Forward the reports dated October 24, 2006, titled: 1) Future of the Region Sustainability Dialogues - Labour Pains 2) Future of the Region Sustainability Dialogues - Dealing with your Drug Problem 3) Future of the Region Sustainability Dialogues - The World Is Watching to member municipalities for their information and comment; and b) Direct staff to consider the output of the dialogues in the development of a sustainability based vision for the future of the region. 4.4 Manager s Report GVRD Board Workshops: Vision, Priorities and Procedures Designated Speaker: Johnny Carline, Chief Administrative Officer, GVRD 5. INFORMATION ITEMS 5.1 National Child Care System - Correspondence from Mayor Jon Lefebure, Municipality of North Cowichan, dated September 8, OTHER BUSINESS No items presented. 7. RESOLUTION TO CLOSE MEETING No items presented. 8. ADJOURNMENT

3 GREATER VANCOUVER REGIONAL DISTRICT SUSTAINABLE REGION INITIATIVE TASK FORCE Minutes of the Regular Meeting of the Greater Vancouver Regional District (GVRD) Sustainable Region Initiative Task Force held at 4:15 p.m. on Wednesday, October 11, 2006 in the 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. PRESENT: Chair, Director Lois Jackson, Delta Vice Chair, Director Peter Ladner, Vancouver (arrived at 4:18 p.m.) Director Derek Corrigan, Burnaby (departed at 6:14 p.m.) Director Ralph Drew, Belcarra (departed at 5:40 p.m.) Director Marvin Hunt, Surrey Director Wayne Wright, New Westminster ABSENT: Mayor Dianne Watts, Surrey Director Maxine Wilson, Coquitlam Director Max Wyman, Lions Bay STAFF: Johnny Carline, Chief Administrative Officer Delia Laglagaron, Deputy Chief Administrative Officer Marjorie Whalen, Assistant to Regional Committees, Corporate Secretary s Department 1. ADOPTION OF THE AGENDA 1.1 October 11, 2006 Regular Meeting Agenda It was MOVED and SECONDED That the Sustainable Region Initiative Task Force: i.) amend the agenda for the Sustainable Region Initiative Task Force regular meeting scheduled for October 11, 2006 by varying the order to hear the delegations later in the meeting; and ii.) adopt the agenda as amended CARRIED 2. ADOPTION OF THE MINUTES 2.1 September 20, 2006 Regular Meeting Minutes It was MOVED and SECONDED That the Sustainable Region Initiative Task Force adopt the minutes of the Sustainable Region Initiative Task Force regular meeting held September 20, 2006 as circulated. CARRIED Minutes of the Regular Meeting of the GVRD Sustainable Region Initiative Task Force held on Wednesday, October 11, 2006 Page 1 of 3

4 3. DELEGATIONS 3.1 Invited Presentation: Green Infrastructure Partnership (GIP Changing the Way We Develop Land: Design and Nature Pursuant to Item 1.1, this item was considered later in the meeting. 4:18 p.m. Director Ladner arrived at the meeting. 4. REPORTS FROM COMMITTEE OR STAFF Program Plan and Strategic Priorities of the Sustainable Region Initiative Committee Report dated October 5, 2006 from Johnny Carline, Chief Administrative Officer, outlining the proposed 2007 programs and priorities under the committee s purview, as the basis for the budget to be considered at the budget workshop on October 20, Discussion ensued relative to the GVRD taking on new responsibilities in unrelated areas beyond its core area of services. Members were advised that regional emergency planning is undertaken by other regional districts, but in the GVRD, the municipalities are not coordinated, but do have mutual-aid agreements. A legal mandate with respect to emergency planning is being sought by staff. Concern was expressed with endorsement of all the programs in the proposed budget and the need for further discussion and information to ensure due diligence. It was MOVED and SECONDED That the Sustainable Region Initiative Task Force endorse the proposed programs and priorities, as outlined in the report dated October 5, 2006 titled 2007 Programs and Strategic Priorities of the Sustainable Region Initiative Task Force, as the basis for the budget to be considered at the GVRD Board budget workshop on October 20, 2006; and refer the two programs Regional Emergency Management and Regional Cultural Strategy to the GVRD Board workshop on October 13, CARRIED Agenda Varied Pursuant to Item 1.1, Item 3.1 was considered at this time. 5:40 p.m. Director Drew departed the meeting. Minutes of the Regular Meeting of the GVRD Sustainable Region Initiative Task Force held on Wednesday, October 11, 2006 Page 2 of 3

5 3.1 Invited Presentation: Green Infrastructure Partnership (GIP) - Changing the Way We Develop Land: Design and Nature Director Pamela Goldsmith-Jones, GVRD Liaison to GIP; Paul Ham, Chair, GIP; and General Manager of Engineering, City of Surrey; Dale Wall, Assistant Deputy Minister, Ministry of Community Services; and member GIP Steering Committee; Kim Stephens, Program Coordinator, GIP; and BC Water Sustainability Action Plan; Ray Fung, Chair, Water Sustainability, BC Wastewater Association (BCWWA); Manager of Utilities, West Vancouver, discussed how to support local leaders to implement 'design with nature' practices and regulation province-wide. The Green Infrastructure Partnership is one of six inter-connected initiatives that comprise the Water Sustainability Action Plan for British Columbia. The action plan provides a partnership umbrella for an array of on-the-ground initiatives that promote a water-centric approach to community planning. It is also enabling the province to collaborate with local government to advance water stewardship and sustainable communities. Effective implementation of the design with nature approach will rely in part upon changes in policies, programs, and transportation and infrastructure servicing. Members were requested to: initiate conversations with an expanded Mayors Focus Group; become partners in a Communication Guide for elected officials; and continue funding support through the Liquid Waste Management Plan program. 6:14 p.m. Director Corrigan departed the meeting. Loss of Quorum Quorum was lost and the meeting concluded. Marjorie Whalen, Assistant to Regional Committees Lois E. Jackson, Chair Minutes of the Regular Meeting of the GVRD Sustainable Region Initiative Task Force held on Wednesday, October 11, 2006 Page 3 of 3

6 Item No. 4.1 Committee Meeting Date: November 7, 2006 To: From: Date: Subject: Sustainable Region Initiative Task Force Delia Laglagaron, Deputy CAO October 5, 2006 (deferred from October 11, 2006 SRI Task Force meeting) GVRD and Regional Economic Initiatives Recommendation: That the GVRD Board a) Request the Chair to appoint a Standing Committee on the Economy as a forum to discuss issues on the region s economy and to define the role of GVRD and partners; b) Provide the Greater Vancouver Economic Council (GVEC) formal support including GVRD s support in their request for Federal and Provincial financial assistance; c) Direct staff to identify projects that may be done in collaboration with GVEC; and d) Develop Terms of Reference for the development of a Regional Economic Strategy using the paper entitled PROSPERITY, LIVABILITY, SUSTAINABILITY: Seeking a Strategy for the Future of Greater Vancouver s Economy, as a starting point. 1. PURPOSE To present a summary of GVRD s participation on initiatives related to the region s economy and seek direction on next steps 2. CONTEXT The region s economy as well as the social and environmental dimensions of the region has been identified as a key factor in achieving the livability and sustainability of the region. The need for an economic development strategy has been widely touted as one of the shortcomings of the region. In the delivery of the region s key infrastructure and the growth management functions, the future of the economy of the region has been treated only implicitly. One of the criticisms of the Livable Region Strategic Plan (LRSP) was its silence on the region s economy; the design of some of the regulatory functions requires an assumption about industries and their activities; and the delivery of key regional functions requires an understanding of the regional economy to effectively and efficiently deliver these services. Economic development has been an area where the Board has been reluctant to assume responsibility. The business community, however, saw the need for a regional approach and so in the past, the GVRD facilitated the creation of the Greater Vancouver Economic Partnership (GVEP) a business-driven organization with some GVRD and Provincial support and participation. This approach did not work. The business community emphasized promotion and avoided contentious policy issues. It developed little profile and did not deliver services to local municipalities, so political support quickly waned. At that time, perhaps because of the GVEP approach, the private sector did not engage to any significant degree.

7 Page 2 of 3 Report: GVRD and Regional Economic Initiatives The Sustainable Region Initiative identified the development of the economy of the region as a role intended to be undertaken and lead by other agency/agencies but one which the GVRD, with its various roles in land use strategy, provision of utilities and transportation policy would necessarily be involved. The two initiatives that GVRD has participated were presented to the SRI Task Force at its March 2006 Committee meeting: Identified as one of the projects of the SRI Partnership, GVRD staff participated in the development of PROSPERITY, LIVABILITY, SUSTAINABILITY: Seeking a Strategy for the Future of Greater Vancouver s Economy, a paper that begins to develop what sustainability means to the economy of the region. The author(s) describes the paper as a call to action to government, business and civil society opinion leaders to voice their support for a sustainability-inspired regional economic strategy for Greater Vancouver and commit to participate in its development and implementation. A series of regional dialogues with key interests is proposed as a means to inform and garner support for the regional initiative. GVRD Director and staff are members of the GVEC. GVEC represents the culmination of a major collaborative effort across a broad spectrum of business, academic, labour and civic leadership. GVEC s presentation outlined their business case: to stimulate investment and new employment in the region, all within a sustainable context; and expand industrial clusters, attracting international investment, and benchmarking against competitors. GVEC is seeking: formal support of initiatives, including funding active support of GVEC s request to the Federal government for support assistance on efforts to attract regional business leaders collaboration on joint projects, such as: Arts and Culture, Industrial land base studies, regional data analysis, and external economic initiatives. See Attachment 1 In addition to these two initiatives, other GVRD initiatives that are related to the economy are: The GVRD s Agriculture Advisory Committee has developed an Economic Strategy for Agriculture in the Lower Mainland. The strategy fulfills or advances the original project objectives to: o identify trends and emerging economic issues and opportunities, and to analyze how these will shape Lower Mainland agriculture in the future; o develop an economic action plan for agriculture in the Lower Mainland that identifies short term action items and articulates a long term strategy; o build new and/or strengthened partnerships between agricultural stakeholders in the Lower Mainland; and o draw commitments from agricultural stakeholders, including commodity groups, local processors and distributors, farmers and local and provincial governments, to implement the action plans. The GVRD through a subcommittee of the Technical Advisory Committee (TAC), Regional Economic Subcommittee, provides a forum for municipal economic development officers to exchange information. GVRD staff are participating, by invitation, on the Vancouver Board of Trade visioning exercise GVRD and Regional Economic Initiatives

8 Page 3 of 3 Report: GVRD and Regional Economic Initiatives GVRD staff are participating in the Gateway Council s visioning. The most recent dialogue on September 25, 2006, on the Future of the Region discussed the Regional Economy specifically on how to succeed in this global economy while ensuring long-term regional prosperity, social well-being and environmental health. More then 150 participants intensely discussed the region s economy and its future. 3. ALTERNATIVES The PROSPERITY, LIVABILITY, SUSTAINABILITY: Seeking a Strategy for the Future of Greater Vancouver s Economy paper is an interesting discussion paper but lacks clarity as to the vehicle to carry ideas into action and therefore may not get the support of key players. The establishment of the Greater Vancouver Economic Council on the other hand, is the mirror image of that, in that it is a collective effort to build a vehicle to do something to advance regional economic strategy, without being clear at this stage on what actions the institution will undertake. There is merit to both approaches and therefore our different external partners have strong preferences for each approach - build the strategy first and then the vehicle to deliver it; and develop the institutional framework first and then allow that to develop the strategy. In view of past lack of success, staff recommends that we support both initiatives and encourage integration of the approaches. The Board may a) Appoint a Standing Committee on the Economy as a forum to discuss issues on the region s economy and to define the role of GVRD and partners; b) Provide GVEC a formal support including GVRD s support in their request for Federal and Provincial financial assistance; c) Direct staff to identify projects that may be done in collaboration with GVEC; and d) Develop Terms of Reference for the development of a Regional Economic Strategy using the paper on PROSPERITY, LIVABILITY, SUSTAINABILITY: Seeking a Strategy for the Future of Greater Vancouver s Economy, as a starting point. These are possible recommendation options for the Committee to consider. 4. CONCLUSION As a key component of the Sustainable Region Initiative, the GVRD, in partnership with other organizations, has been a participant, facilitator, and convener of activities that provided understanding and assistance in addressing regional economic issues. This report outlines GVRD s initiatives to provide background for Committee discussion and recommendations. Attachments: 1. Greater Vancouver Economic Council presentation GVRD and Regional Economic Initiatives

9 Item No. 4.2 Committee Meeting Date: November 7, 2006 To: From: Date: Subject: Sustainable Region Initiative Task Force Bill Morrell, Corporate Communications and Media Relations Division Manager, Corporate Relations Department October 4, 2006 (deferred from October 11, 2006 SRI Task Force Meeting) International Association of Business Communicators Award presented to GVRD television program The Sustainable Region Recommendation: That the Sustainable Region Initiative Task Force forward this report, International Association of Business Communicators Award presented to GVRD television program The Sustainable Region, dated October 4, 2006, to the Board for information. 1. PURPOSE To inform the Task Force of an award for excellence in communications recently presented to the Greater Vancouver Regional District s television program The Sustainable Region. 2. CONTEXT Corporate Communications and Outreach activities give voice to the GVRD s strategic and operational programs. Activities engage stakeholders, both internal and external, as a means of advancing corporate objectives. Communications and Outreach brings to bear a wide range of communication, consultation and relationship-building tools that provide the GVRD s diverse audiences with a better understanding of, and opportunities for participation in, the achievement of regional priorities; in particular, building a livable and sustainable region. One arrow in the quiver of the GVRD s communications and outreach activities is the production and airing of television programming, typified by The Sustainable Region. The Sustainable Region is a unique, half-hour TV show that illustrates the challenges and choices of sustainability; demonstrates actions individuals can take, and; provides context for the importance of sustainability to the residents of the Lower Mainland. Each show examines a theme that is viewed through the lens of environmental, economic and social sustainability. Conceived in 2003 and launched in April of 2004, the show is produced monthly. Each halfhour episode consists of a set of five-minute stories reflecting the program theme and is presented in a newsmagazine format. Themes explore issues of importance to the region, such as agriculture, energy, building green, homelessness, water, wastewater and air quality management, transportation, and regional planning.

10 International Association of Business Communicators Award presented to GVRD television program The Sustainable Region Page 2 of 2 The Sustainable Region is broadcast on Shaw Cable, and is licensed for rebroadcast to The Knowledge Network, Science World Theatre, Delta Cable and Novus Entertainment Inc. Compilations of the shows are distributed to teachers for use in the classroom as well as to GVRD Parks and LSCR education and interpretation programs, and are available on-line at In addition, programming developed for The Sustainable Region is often repurposed for other communications uses an example is production of a regional overview DVD that was distributed at this year s World Urban Forum. On September 20, 2006, The Sustainable Region received a Blue Wave Award of Excellence from the International Association of Business Communicators, BC Chapter, in the category of multimedia communications tactics. An award of excellence is judged to be 5.25 out of a total score of 7. The Sustainable Region received a scoring of 6.42 from the judging panel. IABC comprises a global network of more than 13,000 business communicators in some 60 countries. Its awards program recognizes the achievements of communications professionals, and celebrates best practices that advance the profession. It is noteworthy that this award is the second received for The Sustainable Region in Last February, the show was also honoured with an award for excellence in broadcast journalism in agriculture from the Agriculture Council of BC. 4. CONCLUSION The Blue Wave Award reinforces the value of GVRD television programming and recognizes the region s leadership in advancing sustainability International Association of Business Communicator

11 Item No. 4.3 Sustainable Region Initiative Task Force Meeting Date: November 7, 2006 To: From: Sustainable Region Initiative Task Force Heather Schoemaker, Manager, Corporate Relations Date: October 24, 2006 Subject: Future of the Region Sustainability Dialogues: Dealing with your drug problem, Labour Pains, and The World Is Watching Recommendation: That the GVRD Board: a) Forward the reports dated October 24, 2006, titled: 1) Future of the Region Sustainability Dialogues - Labour Pains 2) Future of the Region Sustainability Dialogues - Dealing with your drug problem 3) Future of the Region Sustainability Dialogues - The World Is Watching to member municipalities for their information and comment; and b) Direct staff to consider the output of the dialogues in the development of a sustainability based vision for the future of the region. 1. PURPOSE To provide information to the Sustainable Region Initiative Task Force on the following Future of the Region Sustainability Dialogues: 1) Labour and Immigration - Labour Pains May 23, ) Drugs and Crime - Dealing with your drug problem June 26, ) Regional Economy - The World Is Watching September 26, CONTEXT The Future of the Region Sustainability Dialogues is the latest outreach component of the Sustainable Region Initiative (SRI). As the title implies, this series of high-profile debates and discussions is intended to help decision makers shape the future of the region by presenting a range of views which hopefully challenge and stimulate fresh thought on a range of regional issues. The dialogue series runs from March to December 2006 and is facilitated by well-known broadcaster Rafe Mair. The attached reports (Attachments 1, 2 and 3) provide an overview of the discussions of the three recent dialogues. Included with each report are detailed Issues Summary Notes. Attachment 4 provides details on upcoming Future of the Region Sustainability Dialogues. Attachments: 1 Future of the Region Sustainability Dialogues - Labour Pains 2 Future of the Region Sustainability Dialogues Dealing with your drug problem 3 Future of the Region Sustainability Dialogues The World is Watching 4 Future of the Region Sustainability Dialogues Flyer

12 Attachment 1 Sustainable Region Initiative Task Force Meeting Date: November 7, 2006 To: From: Sustainable Region Initiative Task Force Heather Schoemaker, Manager, Corporate Relations Date: October 24, 2006 Subject: Future of the Region Sustainability Dialogues Labour Pains Recommendation: That the GVRD Board: c) Forward the report dated October 24, 2006, titled Future of the Region Sustainability Dialogues Labour Pains to member municipalities for their information and comment; d) Direct staff to consider the output of the Labour and Immigration dialogue in the development of a sustainability based vision for the future of the region. 1. PURPOSE To provide information to the Sustainable Region Initiative Task Force on the May 23, 2006 Future of the Region Sustainability Dialogue Labour Pains. 2. CONTEXT The Future of the Region Sustainability Dialogues is the latest outreach component of the Sustainable Region Initiative (SRI). As the title implies, this series of high-profile debates and discussions is intended to help decision makers shape the future of the region by presenting a range of views which hopefully challenge and stimulate fresh thought on a range of regional issues. The dialogue series runs from March to December 2006 and is facilitated by well-known broadcaster Rafe Mair. The third dialogue, Labour Pains, took place May 23, 2006 at the Morris J. Wosk Centre for Dialogue. Vice-Chair Ladner introduced the event and the panel members: Jim Sinclair, President, BC Federation of Labour Keith Sashaw, President, Vancouver Regional Construction Association (VRCA) Ken Peacock, Senior Policy Analyst, Business Council of BC (BCBC) Roslyn Kunin, President, Roslyn Kunin and Associates Inc. The audience of approximately 101 participants included local government, the business community, government and non-government organizations, financial organizations, and other interested organizations. The dialogue focused on the new economy, the requirement for skilled workers (trade, technical and management) and how we train, retain and recruit the workforce necessary to maintain and ensure a vibrant and thriving economy.

13 Future of the Region Sustainability Dialogues Labour Pains Page 3 of 70 Some of the salient points made were: a) The labour market is driven by the region s underlying demographics, which suggest that growth in B.C. s labour force will slow significantly in the future. If international and interprovincial migration levels fall, which is quite possible, labour force growth could slow to zero within a decade. b) Within the labour market, there will be little growth in numbers of workers under 40 in the next twenty years, and there are already shortages, especially: People with trades, technical education, quantitative skills Entrepreneurs, first-line managers, rainmakers, people who can grow companies NGOs c) We need a high-wage, highly skilled workforce to compete internationally. This requires more emphasis on: Training, with lower costs and more convenience to trainees, higher completion rates. More spending by companies on training, possibly even a training tax, rather than companies relying on poaching trained employees from other companies. Reaching out to schools, underemployed, those in poorly paid service sector jobs, aboriginal and immigrant groups regarding training and opportunities available. Education, with lower costs to students. Treating employees well, including providing meaning and purpose in work, providing career planning, and being flexible to meet employee needs. Increased emphasis on recognizing credentials from abroad and from other provinces. Technology to reduce labour requirements (e.g. forming systems in construction). Retaining skilled employees through downtowns, in order to have the necessary skills available for the next upturn. Making sure everyone is taken care of, no-one is left behind. Retaining and recruiting retirees for part time jobs, service sector jobs (retirement ages: stable at 67 for self employed; 63 and slightly rising for private sector; fallen from 65 to 59 in public sector). d) Increased immigration offers opportunities as well as challenges: Canada has not been particularly successful in getting highly talented employees from elsewhere; when we do, they often move on or return home. The construction industry has had success with the Provincial Nominee program, but this program is limited to a few sectors. Businesses have to change their practices: they acknowledge tending to overlook immigrant applicants, and to hire them at levels below those they are trained for. There are a few small guest worker programs (e.g. in agriculture), and limited interest in expanding these programs, though there is some interest in considering possibilities for foreign students just finishing their studies in Canada. The community benefits enormously, culturally and from many other perspectives, from immigration, but it also puts pressure on housing affordability and on community services 4.3 combined SRI Dialogues Report Cover sheet

14 Future of the Region Sustainability Dialogues Labour Pains Page 4 of 70 e) To have a successful, sustainable labour strategy, other issues need to be addressed, including: Housing affordability a challenge at all income levels except the highest. Affordable daycare options, with reasonable wages for daycare workers. Maintaining quality of life. The event was co-promoted by the Vancouver Board of Trade and their Chief Economist Dave Park joined the GVRD Commissioner/CAO, Johnny Carline in offering brief closing remarks and then Vice-Chair Ladner thanked the panelists and closed the event. The attachment provides a detailed summary of the labour and immigration dialogue. 3. ALTERNATIVES No alternatives presented. 4. CONCLUSION The third of the Future of the Region Sustainability Dialogues: Labour Pains, generated ideas and vigorous discussion. Many in the audience believed that this dialogue cut to the heart of what we want our future to look like, raising questions of the long-term economic sustainability of the region. An opening question about growth, and the stats of the seniors population increasing by 600,000 but the working population maybe only increasing by about 200,000, seemed to suggest that we may be bound to increase our population in the future to maintain the standard of living for all the seniors. This will pose some interesting challenges and opportunities for the GVRD as well as others. The region has benefited enormously culturally and in every other way from multicultural immigration, but there s going to be continued pressure on housing affordability (an issue that continues to be of prime importance in these dialogues), on community services, particularly for seniors, for immigrants and for working women. There was a recognition that increasing productivity will have to be a key part of any economic strategy, but that will also maintain pressure to make sure that that kind of activity will be sustainable productivity. We re already seeing some pressure on the GVRD to reduce some environmental standards to allow companies to be more productive. Most felt that the economy is likely to continue to specialize in a high-skill, high wage economy, and have a high cost of living - no one can make a go of it without a well-paying job. If this is true, can training take care of everybody in this respect? Or is this going to be an increasingly difficult place to live for those who simply can t make it in that kind of economy? If that s the case, welfare is surely a last resort. There was general agreement that the region needs a sustainable labour strategy one that goes beyond apprenticeships and includes some consideration of how to avoid creating an ongoing deadweight loss with the marginal people in our society. Also raised, but not fully discussed, was the role of the regional government, which typically is not really involved in training and education, but is appreciative of the issues and impacts. 4.3 combined SRI Dialogues Report Cover sheet

15 Future of the Region Sustainability Dialogues Labour Pains Page 5 of 70 The session was very well received and the GVRD once again received accolades for organizing this particular session as well as the whole series. As with the results of the housing and industry dialogues, it would be appropriate for both municipal and regional staff and elected officials to consider the ideas generated in relation to the role of the region in determining broader development strategies for the region. As the GVRD Board s SRI Task Force is beginning to consider and develop a sustainability based vision for the future of the region, it would also be appropriate to refer this report to staff to consider in the preparation of that vision. Attachments: 1a. Labour and Immigration Dialogue Issues Summary Notes 4.3 combined SRI Dialogues Report Cover sheet

16 Item 4.3 Attachment 1a GVRD FUTURE OF THE REGION SUSTAINABILITY DIALOGUES LABOUR & IMMIGRATION: LABOUR PAINS MAY 23 RD, 2006 ISSUES SUMMARY NOTES STATED GOALS This dialogue will explore ways to meet the significant shortfall in our labour pool. It seeks answers to the following questions: How will we train, retain and recruit the work force needed by our existing industries? Will we take advantage of new opportunities in a new and creative economy? Is this a temporary boom-driven issue, or are there longer term implications? What is the role of government? Is there a role for the regional government, which typically is not involved in training and education? THE DIALOGUE 1.0 Context To continue to enjoy our privileged status in this region, we have to deal with the topic of labour. The number one concern of employers and investors is, do we have the people to do the work? Human resources people will be the reason why businesses leave or businesses don t start, and therefore we don t have taxes, tax bases or jobs here. Surveys show that the biggest problem on the minds of businesses, whether big, medium or small, is how to: gain, train and retain enough qualified workers; or attract, attach and advance the qualified work force that they need. Overall, we have a relatively small supply and a huge demand for workers, and we all have to become aware of that problem to find the ways to fix it. We need to create a society where we have a huge emphasis on trained, skilled workers, retaining them in our society, and making them work. We want to live in a high-wage, skilled province, because that is the way to compete in the global market. We can t compete by having cheap labour, low wages, and exploitative labour practices, because we re not going to win that battle anyway we re not starting from the same place as many other countries are. Nothing happens unless there s construction. If we re building the province, we have to look at this sector. To some extent, construction is now going through what other sectors of the economy will be going through in the future. To sustain a livable region, do we have to slow down and curtail growth at some point? Over a few generations, Vancouver has grown from a sleepy village, to city of about 300,000, to an international city of over 2 million. There were once summer homes at Spanish Banks and farms in Burnaby.

17 Future of the Region Sustainability Dialogues Labour Pains Page 7 of 70 What kind of world do we want to live in? What kind of a province are we going to have? All the rest of it falls by the wayside when you ask that question. We need a real emergency national view of the world, about where this country is going. That means not just raising it with 50 people; we need to have thousands of people here. 2.0 Why are we facing a labour crunch? I keep hearing about these jobs that are going to be needed. Why are we here? Is it just the Olympics? Is it just because we sometimes have nice weather? It s everything at once. Five years ago, I was excited when I did a study on the demand for labour for the Olympics and related projects, because they were going to create lots of jobs. They were the only game in town, pun intended, because there was very little else happening in the economy. Now, we not only have the Olympics and all the related projects such as the convention centre and the highway to prepare for, but we also have the biggest construction boom, both residential and non-residential, in living memory. We have a growing population that will continue to grow, because this part of the world is Canada s Florida and retirement capital, and that [creates] demand [for labour]. We also have the biggest demand for our resources the energy resources, the woods resources, the mineral resources. This is another cyclical industry that has been down and is now exploding. Demand for resources is going up and will stay up because of growth in China and everywhere else in the world unless there is a major collapse and disaster, with everyone in the Third World going back down to Third World level, which I don t foresee. We have the demographic factor of not many young people being born or coming into the labour force in Canada. So I see this as a major, widespread, long-term trend. 3.0 Not every sector is facing a labour shortage Other trends include the loss of manufacturing jobs. In January and February, we lost the most manufacturing jobs in the last 25 years. The whole manufacturing sector is struggling to compete in the world, and that s a challenge for all of us. Also, 35% of every buck in this province and a lot of the money in Vancouver comes out of the resource sector in this province, but we have a timber industry on the coast that s in a crisis. Unemployment is growing in those communities There are two worlds here: a rural B.C. world and a Lower Mainland world. The construction boom in Prince George looks a little different than it does here. The forest sector has five-year time frame on the pine beetle dispute. Many, many mills will shut down in this province, and rural B.C. will look very different. They re cutting at a rate of five times sustainability. Our forest industry is not cutting at sustainable levels. At the same time, our log exports are at record levels, as we close down more mills. 4.3 combined SRI Dialogues Report Cover sheet

18 Future of the Region Sustainability Dialogues Labour Pains Page 8 of Focus on construction 4.1 Recent history Talking about the skills shortage in construction, it s important to look at what s happened in the past because it explains why we re here today. In 1992 the province of B.C. built 45,000 housing units. Two years later, that dropped to 16,000. When you factor in that each housing unit is about 2.5 person-years of employment, you can see what happened to the industry. We lost an awful lot of skilled workers to other sectors of the economy, and to other parts of Canada and around the world, because Canadian construction workers are seen as among the best trained and most productive in the world. Some of that is coming back to haunt us today as we ve seen unprecedented activity in construction. This shedding of skilled workers in the 1990s as a result of a dismal economy in B.C. means that, per 2001 census information, the average age of a skilled worker with a certificate in the construction industry in B.C. was 41. In some trades it was as high as 48 and 49. We re left with a doughnut scenario: contractors had to shed a lot of skilled workers to maintain business. They were chasing jobs to keep a small cadre of trained and skilled workers, and then there was nothing. And now we have an influx of young people coming into the industry, and that presents some challenges as well. The resurgence in construction started in about 2000 with residential projects. Significant increases in residential construction began in about The Province of B.C. maintains a major projects inventory that tracks projects over $20 million in the Lower Mainland and $15 million elsewhere in the province. A year ago, that inventory, tracked $65 billion worth of major projects on the go. Two weeks ago, they issued their latest report, and the figure is up to $92 billion. We ve seen an increase of almost 50% in major project capital intentions in just a year. That clearly is putting stresses on the province. Remember that construction is a cyclical industry. In past cycles, either we had very strong activity in the Lower Mainland but not elsewhere in the province, or more commonly, we were countercyclical to the rest of Canada, and that aided in terms of the mobility of skilled workers. Now, however, construction across North America is strong, and construction in all sectors of the construction industry and throughout the province is very strong. 4.2 Recruitment efforts We ve recruited, going from 60,000 to 80,000 people employed in the province in just one year, but there s a lot more to be done. We see a need of about 20,000 additional workers in construction in the province over the next few years. This is based on labour requirement tracking through projects funded by the federal government. Studies indicate severe shortages in the construction industry in B.C. The construction industry is going into the high schools and actively recruiting, which we haven t done in the 70s, 80s and 90s. This has been helped by television shows. You can t turn on the TV without seeing some hunk in a tool belt telling you how to fix your home, and that s encouraged people to come into the industry. 4.3 combined SRI Dialogues Report Cover sheet

19 4.3 combined SRI Dialogues Report Cover sheet Future of the Region Sustainability Dialogues Labour Pains Page 9 of 70 We went to Europe to look at encouraging skilled workers in England and Germany to come and work in B.C., and the interest is high. There are tremendous opportunities here. It s not a one-response scenario. We have to look at all of the tools available and take action on many different fronts at the same time. 4.3 Resource constraint may slow construction Are we anticipating a resource (construction materials and energy) constraint following on the heels of the labour constraint? If so, what kinds of new skills or training would be required to address that? Construction costs are increasing significantly, and only a part of that is due to the labour. Increases in construction material pricing are breathtaking at times. That is driven through some of the resource base. Copper is up. A lot of the construction materials are oil-based, and we all know what s happening with that. We are moving into a scenario of increasing construction costs that may be constraint on construction activity in the future. 5.0 Demand for workers Everything is in demand, from the entry level worker in a restaurant or hotel to the manager of a large company, and everything in between. Trades workers, technical workers, service workers, technicians, and so on. We need about 20,000 additional workers in construction in the province over the next few years. 6.0 Supply of workers 6.1 What we have We have lots of older people not older workers, because most of them plan to retire at a reasonable age or have already retired. We have a lot of people with general university and college degrees. We have a good number of MBAs who are looking for nice, big, well paid, well benefited jobs in large corporations tell me what to do and I ll do it, I ve got an MBA. We do have immigrants but they tend not to stay if they re qualified. [Also: unemployed manufacturing sector workers and underemployed, low-paid service sector workers see notes in other sections.] 6.2 What we don t have We don t have younger workers. The number of kids we re having and putting through the school system is small and shows no sign of increase. The time horizon is about 20 years, because everyone who will enter the work force in the next 20 years or so has already been born. We don t have enough people with trades, technical education, quantitative skills, and the quantitative university degrees like engineering their numbers are not anywhere near the number of people with general college or university degrees. We don t have enough entrepreneurs to start a business, create a business and generate jobs. We don t have first-line managers and supervisors we re really short there.

20 Future of the Region Sustainability Dialogues Labour Pains Page 10 of 70 Running a coffee shop or a construction site that s the first line of supervision and management These people not only have to be good managers and supervisors, but they also have to know what they re doing. They have to have done the job. We re short of people who can run small organizations and turn them into big organizations. Small organizations are like kids: the most wonderful thing about them is their future potential. If small organizations don t grow, they don t exercise their potential. We re short of rainmakers the people who can bring in the business; bring in the money to generate the jobs, to generate the profits, to pay the taxes, to keep the businesses going. When we bring in rainmakers from the States (which has a lot more) for the new, brilliant, high tech businesses that our scientists are starting, they often take the whole company and move down to California. 7.0 Demographics The aging population is a real issue, with extreme implications for the labour force. 600,000 British Columbians are now aged 65 and over. In 2025, that number jumps to 1.2 million. For the 55 to 64 age group, there will be a rise of about 200,000. For the core working age of 35 to 44, there will be a small increase of 100,000 to 200,000. In the younger categories, there is very little increase. At the extreme, the number of people aged 15 to 24 is projected to decline. You will see a big tipping toward older workers. We can consider likely scenarios based on the anticipated number of immigrants and inter-provincial migrants coming into the province, and the population s anticipated participation rate in the labour market. Based on rudimentary, optimistic projections, labour force growth will slow dramatically from an annual average of 1.7% over the past five years to 0.8% by 2015 and to 0.3% by B.C. Stats projects international net immigration to rise from around 25,000 per year to around 30,000 or perhaps 33,000. It projects inter-provincial migration to rise from about 5,000 or 7,000 to about 15,000. If those projections don t come true and that s a strong possibility labour force growth could easily slow to zero by 2015 or Historically, in most years, the federal government has fallen short of its target for attracting skilled international immigrants into Canada. It will be a challenge to attract dramatically more immigrants in the categories we need. Inter-provincial migration will also be an issue. The most recent figures show that B.C. lost workers to Alberta, causing net inter-provincial migration numbers to go from positive to negative. 8.0 Productivity B.C. has a poor productivity record over the past decade and a half and is now below the Canadian average. 4.3 combined SRI Dialogues Report Cover sheet

21 Future of the Region Sustainability Dialogues Labour Pains Page 11 of 70 Because there will be slower growth in the labour force, there has to be higher productivity and stronger productivity growth to maintain living standards in this province. 8.1 Working less and achieving higher productivity Reducing work time relates to productivity. I haven t heard any of the speakers raise the issue of reducing working time, and I d like to know why. That has been a way that a lot of the productivity gains in past have been taken, up until maybe 30 or 40 years ago. In the last 30 or 40 years, we ve been taking all of the productivity gains as income. As long as all productivity gains are taken as income, we re not recognizing the real essential overhead cost [to workers]. What about taking more of the productivity gains as time off rather than as income? It should be an individual choice, and the work-leisure trade-off is one that most people make. A lot of people decide that they will work more than one job if they want more income. Similarly, people scale back how much they want to work. Flexibility is important, but the premise of getting people to work less is counter to what we re heading for in the next 15 to 20 years: an extreme shortage of labour and workers. That s the reality. However, people can still decide to work less. Fewer hours worked does lead to higher productivity, possibly, or can be a contributing factor to higher productivity, and that s because productivity is measured as output per hour worked. You work fewer hours, you get a higher productivity number. There are a lot of other factors that [complicate] that, of course. 8.2 Competitiveness and productivity In B.C. s context, I like to think of productivity within an overall competitiveness framework. Competitiveness means that productivity is important, but so is output per person GDP per capita, in economist s jargon. Competitiveness is a broad proxy for measuring overall wealth levels. To create a competitive economy in today s world, it s important to also have a wealthy economy. You can imagine a jurisdiction that s very competitive in a low value industry. Will that be an attractive jurisdiction for other kinds of businesses all kinds of businesses if they don t have good schools, good healthcare, and a safe climate to live in? People can work less if they decide to, but I don t see it as a solution for being competitive in the future. 9.0 Progress index What is the view on a genuine progress index, which maps out, beyond the GDP, what real success is in terms of our humanity and quality of life for everyone on the planet? The social progress question is fundamental. The government has set up a Progress Board, but it s one-sided, as usual, with only businesspeople looking at mostly the GNP, and a business view of the rest. The grossest thing about the GDP is that if you have a natural disaster and thousands of people die, it looks good because lots of money is spent, increasing your GDP. Oregon has done benchmarking with community groups, anti-poverty groups, and the labour movement. They look at a whole series of things to judge whether we re making progress. 4.3 combined SRI Dialogues Report Cover sheet