Guest commentary by Ron Marcolin, Canadian Manufacturers & Exporters.

This commentary first appeared in the Telegraph Journal on September 18, 2024. It is shared with the author’s permission.

Climbing energy costs are a major impediment to growth in the province, with repercussions on jobs, tax revenue and overall economic health. Following record high increases to energy rates by NB Power, with more proposed, its clear a rethink is needed. Hanging in the balance is a robust, growing industrial sector that is competitive across national and international jurisdictions, allowing it to strengthen the New Brunswick economy.

NB Power filed its steepest rate hike to date in March, with the industrial rate jumping an unprecedented 15.3 per cent. Amid high debt, ongoing costly infrastructure investments and lackluster sales growth, it is expected NB Power will continue to increase rates, making an uncompetitive situation for industry even more untenable.

Industrial energy rates in the province are already high compared to other Canadian jurisdictions. In 2024, the rate of $93.43 is well above the Canadian average of $72.68 and is projected to only worsen with a proposed rate of $117.91 by 2028. Added up, by 2028, industrial rates will have increased by over 50 per cent since 2023.

Through Canadian Manufacturers & Exporters, we provide a voice for industry, advocating on behalf of more than 2,500 companies across the country on matters important for their business success. Our members make up many Energy Intensive & Trade Exposed (EITE) industries, which include sectors like construction material production, food and beverage, paper manufacturing and petroleum products.

In New Brunswick, EITE companies are competing with those in other jurisdictions across Canada and worldwide, restricting their ability to absorb rising energy costs through consumer pricing. Without policy change and the ability to compete on a national and international scale, EITE companies in New Brunswick face strong headwinds when it comes to making investments into their business and spurring economic growth in the province.

Our own research bears this out. In a 2019 report “Unlocking Atlantic Canada’s Growth Potential in Manufacturing,” the cost of energy was identified as the number one policy change manufacturers would like to see governments take to boost their competitiveness.

Five years on, the impacts of rising energy costs on competitiveness have only worsened in the province. New Brunswick industrial energy rates went from 10 per cent above the Canadian average to now 22 per cent, a trend that is expected to continue without policy change.

Compare that to NB Power’s residential rates, which are 25 per cent lower than the Canadian average. Meanwhile, residential sales were the only type to increase for NB Power in the last decade. Both overall load growth and industrial sales remained stagnant over the same period, following a major drop 15 years ago due to the closure of the pulp and paper mills and chemical mill in northern New Brunswick.

Against this backdrop, New Brunswick exports have been on the decline over the last 16 years. A recent New Brunswick Business Council report written by the former provincial chief economist David Campbell paints a dire picture: New Brunswick can’t grow its economy without addressing its mounting trade deficit, which has ballooned to $8 billion due to weak exports compared to imports. Furthermore, GDP growth, according to the report, has averaged just 0.5 per cent per year since 2006, dropping from a 10-year average of 3.3 per cent.

The report makes clear that the province’s economic performance depends on bolstering its exporters and attracting new industrial players. A rethink on energy rates is key in achieving this, and solutions already exist.

NB Power has only to look at Ontario’s Northern Energy Advantage Program (NEAP), which for seven years has supported EITE companies in northern Ontario through a $20 per megawatt hour credit. Recipients must show they are actively working to become more energy efficient and reduce emissions. More long term, NB Power should consider implementing a truly competitive EITE large industrial energy rate.

Until change is made, energy rates will continue to be the top concern for exporters and manufacturers at a time when supporting these industries is vital to growing the New Brunswick economy. In order to foster this growth, New Brunswick needs policies that will enable existing industries to thrive and attract new ones. We can’t afford not to.

Ron Marcolin is the Divisional Vice President of Canadian Manufacturers & Exporters (CME)

 

https://www.blogger.com/blog/post/edit/2464308071878322421/8904430984648382052

LAPP Corporation

As the administrator and trustee of the Plan, LAPP Corporation ensures pensions are paid to retirees and that our 304,451 members are guided in preparing for retirement. This is done by providing strategic guidance for the Plan, managing risk, and overseeing the over $63.3 billion LAPP fund. The Corporation is led by a leadership team made up of experts skilled in all facets of running a large multi-sector pension plan, including risk management, investments, funding management, pension law, pension policy, stakeholder relations, and communications.

The Corporate team monitors pension developments around the world, researches issues and makes policy, funding, and operational recommendations to its Corporate Board. LAPP Corporation also prepares its Corporate Board and the Sponsor Board for making important decisions about the pension plan by setting and executing strategic business and operational plans and maintaining a robust, enterprise-wide risk-management system.

LAPP Corporation is responsible for directing and overseeing the work of service providers for the Plan to ensure the delivery of pension benefits and the long-term sustainability of the Plan. These two legislated Alberta Crown corporations, which you can learn more about in the section called Our Partners, separately provide pension benefit administration and investment management services to LAPP.

LAPP Corporation publishes the Plan’s Annual Report each year, which contains audited financial statements and highlights of the year’s activities. The Corporation sets the strategic direction for Plan communications, and consults and communicates with all stakeholders through our website as well as publications including the Member and Retiree Newsletters.

LAPP Corporation is guided by bylaws and policies that outline rules of ethical conduct and conflicts of interest. Documents such as compensation, expenses, financial statements, and bylaws can be found in Governance Publications.

LAPP Leadership Team

Troy Mann

President & CEO

Gosia Talanczuk

Vice President, Investment Policy & Oversight

John Bercsenyi

Vice President, Pension Policy & Funding

Darcy Atkinson

Vice President, Finance & Risk

Nicole Martel

Vice President, Stakeholder Relations & Communications

Imran Hussainaly

Vice President, Corporate Affairs and General Counsel

 

https://www.benefitscanada.com/pensions/defined-benefit-pensions/lapp-appointing-troy-mann-as-president-ceo/

LAPP appointing Troy Mann as president, CEO

By: Staff
June 22, 2023

The Local Authorities Pension Plan Corp. is appointing Troy Mann as president and chief executive officer.

He joins the Edmonton-based organization from the Alberta Pensions Services Corp., where he was vice-president of pensions services. Earlier in his career, he was also chief pensions and benefits officer at Vestcor Pension Services Corp. and assistant deputy minister at the New Brunswick treasury department.

“I am excited to join LAPP Corp. and its continued growth and unwavering dedication to delivering exceptional value to its members and employers,” said Mann in a press release.

Read: Alberta’s LAPP ending coordination option due to pension member confusion

He will succeed Darcy Atkinson, who led the LAPP in an interim capacity since October following the departure of Chris Brown. Atkinson will remain with the organization as its vice-president of finance and risk.

“On behalf of the board, I want to thank Darcy Atkinson for his leadership and commitment as the interim president and CEO since October 2022,” said Terry Agoto, chair of the board of directors, in the release.