Address to the CCCJ, February 2002

Good afternoon, ladies and gentlemen. I want to congratulate the organizing committee of the Canadian Chamber of Commerce in Japan for putting together such a fine program and, I want to thank the chamber for welcoming me so warmly to Tokyo.

I am pleased to be here in one of the world's great cities.

I'd like to talk a little bit today about the "Alberta advantage" and Japan-Alberta relations. In particular, I want to focus on the importance of Japan as a trading partner for Alberta.

Albertans are enjoying a period of sustained, real economic growth. In fact, Alberta is enjoying economic success unmatched in Canada, thanks to Albertans' hard work, low unemployment rates, a sound fiscal environment and a low tax regime. This is something that continues to be noted internationally. In an international comparison released last month by KPMG consulting, Canada was ranked the least expensive country in the world in which to establish and run a business. As well, Alberta's capital city of Edmonton was ranked the number one city for cost competitiveness - something I'm very proud of as premier. Alberta's rate of economic growth is expected to lead the country again this year, further proof that the province is the best place in Canada in which to do business.

Independent forecasters like the Royal Bank of Canada predict that the current global economic slowdown will essentially bypass Alberta. The Conference Board of Canada expects real GDP growth of 2.1% for Alberta, compared to 1.1% growth for Canada as a whole, and 1.1% for the United States.

While Alberta's economy is doing well right now, if you think back several years, it wasn't always such a rosy picture. In 1992, accumulated debt and annual deficits ruled the day. But the problem was spending, not revenue. When I became premier, I made a promise to Albertans to get back to the basics and take control of spending. Since then, the Alberta government has focused on its competitive strengths:
* A low tax regime;
* A highly skilled, productive workforce;
* A strong research and development network, and;
* The province's spectacular natural beauty and clean environment.

That was the province's plan back then, and that plan has been carried out by implementing four pillars of our business strategy:

* Balanced budgets;
* Department business plans that help make sure Albertans' priorities become the government's priorites.
* Performance measurements that make the government accountable to Albertans; and,
* Debt retirement, requiring the government to pay down the debt with any surplus.

Ladies and gentlemen, that plan continues to work!

Alberta's net debt was eliminated recently, 20 years ahead of its original schedule, and we now enjoy:
* The strongest economy in Canada;
* The highest standard of living of any province;
* The lowest unemployment rate in the country;
* The lowest overall taxes;
* The highest personal disposable incomes;
* Among the highest life expectancies in the world;
* The lowest percentage of low-income people in Canada; and
* The best-educated and most productive workforce in Canada.

That workforce is perhaps the most important element of the Alberta advantage - any success the province has enjoyed comes down to the people who live and work there. It's Albertans like teachers, trades people, doctors, nurses, oil field workers, farmers and retail workers who ensure their businesses and industries remain competitive and sustainable. As business leaders, I'm sure you are all aware that it takes commitment from the ground level up to make a business successful.

Listening to Albertans has also stood the province in good stead. Albertans told us that getting rid of the province's debt was important to them. In response, the government passed legislation that requires it to retire that debt while forbidding the province from running an annual deficit. As a result, Alberta is years ahead of its debt-repayment schedule - that will make it the only jurisdiction in Canada, and probably the only one in North America, to be entirely debt free. This commitment to fiscal responsibility is an important component of the Alberta advantage - one that reaps benefits for Albertans today and will continue to reap benefits for future generations.

In the meantime, Albertans will continue to pay the lowest taxes in the country and there is no provincial sales tax. Albertans enjoy a 10-per cent single-rate personal income tax rate, a move that saves them more than $1 billion per year over the old tax system. Overall, personal income taxes have been reduced substantially in recent years.

This commitment to fiscal restraint and tax cutting is a tremendous factor in spurring on economic growth. The news is equally encouraging around employment figures. About 44,000 new jobs were created in Alberta last year. Another 30,000 new jobs are expected in 2002, and solid growth in employment is expected for the near future.

But all of this growth cannot happen without trade and investment. Much of Alberta's success depends on its ability to compete and trade not only in North America, but here in Japan and in other Asian Pacific Rim countries. Today, Japan is Alberta's most important overseas economic partner, accounting for about 25 per cent of non-US exports. In fact, two-way trade between Japan and Alberta has been as high as $3 billion annually.

Alberta is committed to Japan and to its economic future. After all, Alberta companies have been active in Japan for over 50 years and the Alberta government has maintained a trade and investment office in Tokyo sine 1970.

Ladies and gentlemen, Alberta has a lot to offer Japan. For example, Alberta is - and will continue to be - a secure and reliable supplier of high-quality goods and services to the Japanese market. Through the North American Free Trade Agreement, Alberta will continue to have secure and reliable access to important trade and investment markets across North America. Cross-border traffic of goods and people is now back to pre-September 11th levels and the Canadian and US governments are working closely to enhance and secure two-way access.
At the same time, Japanese foreign direct investment in Alberta is very important to the Alberta economy. In the past, that investment has centred on forest products, oil sands, energy, petrochemicals, food processing, hotels, and banking. In total, Japanese investment in Alberta exceeds $3 billion, with $2 billion of that in the forest industry. Alberta is also an increasingly important trade and investment market in food products, energy, building products and educational services.
At the same time, Japan has long been an important offshore tourism market. Japanese tourists made 146,000 overnight visits to Alberta in 1999, spending an average of $734 (Cdn) per person.

Alberta enjoys a much broader relationship with Japan than a purely economic one. Our strong ties include cultural and sports exchanges, educational initiatives, municipal twinnings, people-to-people initiatives, and a sister-province relationship with Hokkaido. As well, 17 Alberta municipalities are twinned with Japanese counterparts.

Alberta is very proud of the "Alberta advantage" and equally proud that Japan plays such a prominent role in contributing to the province's economic success. Alberta will continue to build relationships with its friends in Japan, like all of you, and Alberta will continue to strive to be preferred high-quality suppliers at competitive prices to Japanese consumers. The province will continue to develop Alberta-Japan relations and will continue to sell the Alberta advantage here in Japan. Ladies and gentlemen, the personal contacts we make through trade missions like this will make Alberta-Japan relations even stronger, leading to greater economic, social and cultural bonds. I look forward

With great anticipation to what the future holds for both Japan and Alberta and I want to thank all members of the Canadian chamber of commerce here in Japan for the work you do to strengthen economic and cultural relationships.

Thank you again for the warm welcome. I hope you will all visit Alberta soon.

For further information on Alberta, please contact:
Norio Kudo, Commercial Officer
Alberta Japan Office
Tel: (03) 3475-1171 Fax: (03) 3470-3939 E-mail: kudo@altanet.or.jp