For every bit of labour and investment they put in, Quebecers create less wealth, on average, than Ontarians. But bridging the productivity gap isn’t impossible, said Pierre Fitzgibbon, Quebec minister of economy and innovation. Quebec just needs to leverage what it does best: green power.
Businessman-turned-politician Fitzgibbon is urging Quebecers to start looking at the province’s electricity grid as an engine of wealth. Fitzgibbon plans to capitalize on Quebec’s hydroelectric system — which supplies one third of the country’s energy — to turn the province into an energy hub.
Though some are concerned such an undertaking would undermine Quebec’s efforts to reduce emissions, Fitzgibbon disagrees, arguing that renewable energy sources such as wind, solar and hydro could be used to decarbonize the province while still creating collective wealth.
“Using energy to create wealth is not a sin,” Fitzgibbon said.
The province could use the boost. Quebec has always lagged a few steps behind Ontario in terms of GDP per hour worked. While Ontario produced $54.8 dollars per hour worked in 2021, Quebec produced just $52.4, adjusted for inflation, according to Statistics Canada.
“The vast majority of Quebecois households have less income than their Ontarian counterparts,” a 2018 report by the HEC business school notes, and thus “have less money to spend and save.” In 2021, Quebec’s household disposable income was $74,201, compared to $98,767 in Ontario, according to the most recent data from Statistics Canada.
Man with a plan
Fitzgibbon said the gap has to do with weak startup and applied-research infrastructure.
“It’s all about how we bring ideas to market,” he said.
His government plans to cut the productivity gap between Quebec and Ontario in half by 2027 through a $7.5 billion research and innovation strategy announced in May. To this end, he’s created a chief innovation officer and an innovation committee.
The HEC report notes that an increase in public financing isn’t enough; Quebec will need to “invest better.” Fitzgibbon thinks so, too. He wants to concentrate resources in sectors where Quebec can be most competitive, including aluminum, aerospace, electric vehicles and AI.
The province also needs to use its hydro and wind power “properly and rigorously,” which, in Fitzgibbon’s view, means consuming less electricity, consuming it more efficiently and expanding the province’s roster of renewables. Though Quebec has enough energy for now, the province will require more in the future in order to meet its ambitions, he said.
The plan is strong. The key is to execute
Pierre Fitzgibbon
Fitzgibbon might have his work cut out for him. He’s trying to reverse a trend that has been around since Quebec joined Canada in 1867.
Not everyone is on board with his plan. The Canadian Union of Public Employees (CUPE) said that Fitzgibbon’s appointment to an “economic super ministry” was a cause for concern given his tendency to characterize public utilities as drivers of wealth creation.
The mindset is in line with his background. He’s a businessman, with a bachelors in business administration from HEC Montreal, a Chartered Professional Accountant designation and a certificate in general management from the Harvard Business School. He’s held positions at accounting firm PricewaterhouseCoopers, now-defunct nutritional pharmaceutical company Atrium Innovations Inc. and private investment firm Walter Capital Partners.
Having a business outlook in politics is an advantage, he said, because money ultimately determines what a government is able to accomplish. “I think it provides a view, provides a mindset that is relevant to get the government to be more flexible, more aggressive, more focused,” he said. However, he added, you need a balance of political and business-oriented people in government.
Two-in-one
Following his re-election in October, Quebec Premier François Legault added the energy file to Fitzgibbon’s portfolio, which had previously consisted solely of economic matters. The fusion of the economy and energy ministries raised concerns that Quebec’s environmental goal of 37.5 per cent reduction in greenhouse gas emissions below 1990 levels by 2030 would get lost in the mix.
“The bar is high.… But we’re committed to do it. This will come largely by renewable energy,” Fitzgibbon said. “Innovation is not only about making profit. It’s about solving social issues, and I want innovation to be at the core, as a normal reflex for Quebecers.”
Fitzgibbon has some critics. He has been the subject of six ethics investigations as of this month, when the Journal of Montreal reported that the minister had taken part in a pheasant hunting party on a private island belonging to wealthy businessmen. He said that this activity was “private” and that the Journal wouldn’t stop him from engaging in activities like this in the future. He said the inquiries were mostly “noise” and if they find that he or people close to him were able to profit from his political ventures, he would leave government immediately.
When asked whether the ethics inquiries would stand in the way of his ambitions to build a stronger Quebec, he said: “No, I don’t think so at all.”
In 2023, Quebecers can expect to see adjustments made to the laws and regulations governing Hydro-Quebec, which will be decided by the public. They may also see new wind farms spring up. “Short term, wind is at the top of the agenda,” said Fitzgibbon. There’s no reason we can’t be more aggressive on building wind farms.” He plans to invite the private sector to build up the wind infrastructure in Quebec. He’ll continue to get more EV companies into Quebec, too.
“The plan is strong. The key is to execute,” Fitzgibbon said. Given the impending recession, the plan “might be a little bit more difficult to execute, but I’m focused on it, and I think we have the resources, both human and financial, to do it.”
• Email: [email protected] | Twitter: marisacoulton
You can read more of the news on source
