A2

By Stephen Llewellyn
Canadaeast News Service

Stumble Upon

del.icio.us

Digg

Facebook

Print

Email

Speak Up

New Brunswick's international exports surged a whopping 26 per cent this year and next year's growth will lead all of Canada, says a new report from Export Development Canada.

While the majority of New Brunswick's exports are energy - 61.4 per cent in 2007 - Fredericton is well-placed to ride this growth, said Anthony Knight, CEO of the Fredericton Chamber of Commerce.

"We have a number of companies that conduct research and conduct indirect work associated with the energy sector," he said Friday. "There are definitely benefits to a growing, expanding, sustainable energy sector."

Knight said some of those Fredericton firms are engineering companies. But he said researchers at the University of New Brunswick are also benefiting from the boom.

"A number of researchers are directly affiliated with the Point Lepreau nuclear generating station," he said. "Those people are becoming world class in their field and will generate true wealth for our community."

The export report said New Brunswick's energy exports grew by 45 per cent in 2008, due in part to continued high prices in the U.S. gasoline market.

In 2007, energy exports were worth $6.85 billion.

The new liquefied natural gas terminal in Saint John will start in 2009 and energy exports will also be boosted by the McCully natural gas field, said the report.

That will increase energy exports by nine per cent in 2009, despite falling energy prices, as the LNG plant will add an estimated $2.5 billion to exports, said the report.

The agency said conditions in the forestry sector, which accounts for 16.5 per cent of the province's exports, remaining challenging. Exports from that sector declined 21 per cent in 2008 but should increase by nine per cent in 2009.

Knight said the report shows this province is a steady economic ship in stormy waters.

"There is no denying it is very positive news for New Brunswick," he said. "It could be seen as reassuring to some New Brunswickers.

"Others will have to batten down the hatches and be ready for the implications of the economic challenges we are seeing in North America and globally."

Business New Brunswick Minister Greg Byrne said Friday the importance of energy exports isn't surprising when one considers that 60 per cent of cars in New England consume fuel from the Irving Oil refinery in Saint John.

A key part of the government's self-sufficiency agenda is making New Brunswick an energy hub for northeastern North America. Most of the energy development activity is centred in Saint John, but Byrne said all parts of the province will benefit.

A Mactaquac-based company is working on the refit at Lepreau and that expertise could lead to work on the proposed second reactor at Lepreau and other projects internationally, he said.

"There are lots of potential opportunities, everything from engineering right through the supply chain," he said. "These are multibillion-dollar projects."

Byrne said New Brunswick is always looking for new export markets, which is why Premier Shawn Graham led a trade mission to China recently.

Canada's exports are forecast to grow by two per cent in 2008 and fall by one per cent in 2009, said Export Development Canada.

The Canadian economy is expected to grow by 0.9 per cent in 2008 and 1.4 per cent in 2009.

Export Development Canada is Canada's export credit agency which helps Canadian exporters and investors expand their international business. The agency helps about 7,000 companies in 200 markets around the world.