I have heard several people refer to the situation in Quebec during and after the referendum period, as numerous companies packed up their business and left the province. These people are making the argument that the same phenomenon will occur in Alberta if we are successful and we leave Canada. Does this idea have merit though? It is worthwhile to examine the question.

This idea relies on the assumption that companies and capital are not already fleeing Canada at an alarming rate. But the reality is just the opposite. Let’s evaluate the numbers:

• Since 2000, foreign investment in Canada versus Canadian investment abroad has gone from basically the same to a trillion-dollar gap, with Canadian investors sending money out of the country at greater rates than ever before.  Canadian businesses, private people, and investment funds have all seen the value of investing anywhere but Canada. Even the Canada Pension Plan invests a massive 88% of its funds outside of the country so that they can make consistent returns. The economic climate of Canada has been frozen by poor policy and regulatory choices, especially when it comes to large resource projects and other massive wealth builders. 
• Company startups and existing head offices are both leaving the country in significant numbers as the regulatory and tax burdens make it difficult for corporations to provide value for their investors, which is their chief task. 
• Particularly in Canada there are the numerous and famous examples of major projects that have been disallowed or cancelled by the government after billions have been spent trying to gain approvals. We are living in an environment that is already deeply hostile to business, and government capriciousness has made it impossible for businesses to even put forward new projects, as witnessed by the lack of companies willing to attempt new pipelines in Alberta in light of C-69 and the tanker ban on the West Coast. 

So we are already in a situation where we are being drained of investment, human capital, and corporate offices. We are already experiencing economic stagnation. We are already living in post-referendum Quebec in that sense. 

But maybe it will be worse. Maybe the instability of the independence referendum will cause companies and capital to accelerate their abandonment of our province? That is a real danger if we follow the methods that Quebec has employed in their own economic management:

• Quebec mandated the French as a requirement for all corporations, with punitive measures to force compliance. 
• Quebec has refused to develop their resources and has made it illegal to explore for oil and gas. 
• Quebec has created the most drastic and labyrinthine regulatory environment in Canada, making business extra difficult. Quebec has also created a horrific tax environment for business, ensuring that it is more difficult to be profitable without special deals and exemptions from the government.

Without the Federal Government’s significant support through fiscal transfers from other provinces, Quebec would be insolvent. They depend upon the rest of Canada to keep their economy afloat. 

In contrast, Alberta has a dynamic, diverse, and growing economy that already benefits from being one of the least regulated jurisdictions in Canada. If we are willing to build and govern wisely, we can create a low tax, low regulation environment that will draw companies and investment from the rest of North America and the world. The argument that we will see the flight of capital and companies misses the simple fact that we have what the world needs, not only in the oil and gas sector but also in the entrepreneurs and innovators who have created one of the strongest economies in North America already. 

For Quebec, their referendum was a signal to flee before things got worse. For Alberta our referendum will be a signal of hope and change for the companies who want to capitalize on the great resources and people of Alberta to create real economic growth and a brighter future. 

For those who fear that we will end up like Quebec, the answer is found in the ability that we as Albertans have to create a stable, confident, and welcoming environment for business. Low regulations and taxes, a young and willing workforce, and access to some of the most sought-after commodities on earth ensure that we will not have to fear a future where independence leads to the destruction of our economic future. With a bit of hard work and sensible governance choices we can make the country of Alberta into the best jurisdiction in North America for the businesses that want to power the future of the world.