Posted Jul 13, 2006, 2:31 AM
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Join Date: Feb 2006
Location: Vancouver, BC
Posts: 189
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Saskatoon now a 'hub city'
Nine Canadian cities key to economic growth: study
Bruce Johnstone, Saskatchewan News Network; Regina Leader-Post
Published: Wednesday, July 12, 2006
REGINA -- Nine "hub cities" -- including Saskatoon and Regina -- are the pistons in the country's economic engine, according to a study released today by the Conference Board of Canada.
While the country's three largest cities -- Toronto, Montreal and Vancouver -- have been "key drivers" of the national economy over the last two decades, smaller cities have played a major role in their respective regions, the study said.
Canada's three biggest cities accounted for 35 per cent of Canada's economic activity in 2004, the Conference Board said. But, in seven of 10 provinces, one or two cities account for 40 per cent of the province's economic activity, the report said.
In 2004, the nine "hub" cities accounted for nearly 48 per cent of Canadian gross domestic product (GDP), a share which has been rising steadily over the past 12 years.
In Saskatchewan, Regina and Saskatoon account for nearly 45 per cent of provincial GDP, while Winnipeg accounts for 65 per cent of Manitoba's GDP and Calgary and Edmonton represent a similar share of Alberta's GDP.
The study notes that Halifax, Montreal, Toronto, Winnipeg, Calgary and Vancouver are leading their respective provincial economies on a GDP per capita basis.
In the past decade, Saskatoon has nearly caught up to Regina in terms of per capita GDP and is thus included in the list of nine hub cities.
Mario Lefebvre, senior economist and author of the Conference Board report, said the study suggests that "hub cities" can help boost regional economies.
The study also concludes that concentrating the nation's fiscal resources on the three largest cities is not the best way to foster cross-Canada economic growth.
A better approach would be to concentrate fiscal resources on a somewhat larger group of hub cities, or regional leaders.
"If we are going to be strategic about investing money in the future, . . . let's not be strategic around two or three cities -- Toronto, Montreal, Vancouver," Lefebvre said. "If we do that, Saskatchewan's not going to feel a thing, the Atlantic provinces aren't going to feel a thing."
The study also suggests that doling out fiscal payments -- such as the federal fuel tax rebate -- on a per capita basis is not the most efficient, from an economic standpoint.
"All we're saying in this report is: 'Please stop spreading money around on a per capita basis'," Lefebvre said. "Yes, politically, it might be the easiest way of doing things. . . . It's not the best way."
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