THE IMPACT OF REGULATORY APPROVAL PROCESS ON REGIONAL ECONOMIC DEVELOPMENT (2007)

As BC looks to cultivate its position as the Gateway to Asia Pacific, we are challenged by a significant infrastructure investment deficit that is the result of a history of underinvestment from all levels of government. BC’s infrastructure is in need of major investment and development to facilitate trade and economic growth.

While BC has had some notable success in terms of all levels of government coming together to partner on major infrastructure projects, we continue to be challenged by an unduly slow and predictable regulatory approval process, particularly at the federal level.

The federal regulatory approval provides a process to address a broad range of environmental, health and safety, socio-economic, community and First Nations’ issues, ensuring the issues and concerns of all interested parties are considered together.

Prior to taking on large investments in developing infrastructure, investors need assurances as to the costs associated with the project and the timelines in which the project will be completed.

Extensive planning is required in order to accomplish this. A critical component of any infrastructure development process is the regulatory approval process. In the case of the federal and provincial governments, it is all too often the case that the regulatory approval process is delayed from its original timelines, if such timelines even exist. This, in turn, causes the entire infrastructure development process to fall behind schedule.

Much of the focus and attention around this area has focused on the Lower Mainland given the profile of initiatives such as the Gateway project. However, The Chamber believes that this is an issue for regions across the province, as communities look to enhance their economic base as well as developing new economic opportunities.

A current example of the challenges presented by the current federal approval process is the extension to the runway of the Smithers Regional Airport.

All levels of government have acknowledged the importance of this project to the economic renewal of Northwestern BC. While partial funding for this project has been secured, this project continues to face a lack of progress on a crucial piece of funding through the Rural Municipal Infrastructure Fund.

The Town of Smithers has been waiting for over two years for a decision on this funding. In the meantime, construction costs are rising steadily. If a decision about this funding is not made very soon, construction costs will soon escalate beyond the capacity of the Town of Smithers.

This region has suffered devastating economic decline in recent years. There is now increased investment interest in this area in the form of mining, Port of Prince Rupert, a thriving fishing/guiding industry, a multi-season ski and mountain resort development that could boost airport use to over 200,000 people by 2010. But, without an airport capable of handling modern commuter and chartered jet aircraft, much of this investment interest will wane.

The Town of Smithers has confirmed financial contributions of $3.086 million. Estimated project costs are $5.903 million. A grant that the Town applied for one and half years ago – and one that would provide a bulk of the remaining required funding – has been languishing in a federal review process for nearly two years now. The Municipal Rural Infrastructure Fund is the only avenue available through the federal government for this type of infrastructure improvement. It is now becoming a “now or never” situation for this crucial project so desperately needed in Northwestern BC. The Province of BC, which cost share this funding with the federal government, are supportive of the project. But any action they wish to take is totally dependent on the review and subsequent approval process of the federal government – something the federal government is delaying on.

THE CHAMBER RECOMMENDS

That the federal government:

1. ensure that the resources are made available to conduct the regulatory approval process in a timely manner;

2. if funds cannot be made available, consider implementing a program whereby those who wish to pay, on a cost-recovery basis, for faster service with guaranteed turnaround times, are provided with that option; and

3. undertake an immediate review of proposals for expansion of airports throughout BC.