Investing in Alberta
In many ways, Alberta is unique - from its abundant resources and clean, safe environment to the way its hard-working people do business. The many business advantages in Alberta help create a favourable business environment to encourage investment and allow companies and industries to compete and succeed.

Alberta consistently records the highest investment per capita among provinces in Canada, with a total of $31.3 billion in investment in 1999, and a projected $32.4 billion in 2000. Economic analysts expect Alberta's diverse economy to continue to expand well into the new century.

Alberta's prosperous economy allows it to maintain its high standard of living and a high quality of life that is the envy of the world.

Through a combination of low taxes, a skilled workforce and a well established infrastructure, Alberta provides an advantage across all industry sectors.

Alberta's Advantages
Alberta is blessed with an abundance of natural advantages, which have formed the foundation of the province's thriving economy. The Alberta government has built on this by engineering an economic plan that ensures a positive business climate exists in the province. A climate that encourages investment, creates diversity, and empowers Alberta businesses to compete successfully around the globe. The result is one of the world's most vibrant and competitive economies, with low operating costs.

Alberta Government's Business StrategyFour pillars of a strong foundation for Alberta:

balanced budgets are the law¿
business plans ensure Albertans' priorities are the government's priorities
measuring results will improve Alberta's programs
Debt Retirement Act requires deliberate paydown of Alberta's debt

The province's net debt was eliminated by June 30, 1999, twenty years ahead of the original schedule.

Alberta is the only province in Canada with no net debt.

Alberta went from having the highest annual deficit as a percentage of GDP in 1992-93 to having the highest surplus in 1999-2000.

To attract investment and encourage job growth in the private sector, the Alberta Government is committed to free enterprise, economic development, a competitive tax environment, a strong infrastructure, and less regulation and red tape.

Provincial and Federal Debt as a Percent of GDP (March 31, 2000)

Diverse Economy
Alberta has capitalized on its traditional strengths in resource based industries, such as agriculture, energy, forestry, and industrial products to develop a dynamic and diverse economy.

Advanced technology industries in Alberta are rapidly evolving and include a diversity of activities such as electronics, telecommunications, plastics, aerospace, geomatics, biotechnology, pharmaceuticals and environmental products and services. Over the past ten years, Alberta’s annual technology shipments have grown at a significant rate of 14.6 per cent per annum. Today more than 1,500 knowledge-based companies employ 40,000 people and generate annual revenues approaching the $9 billion mark.

This success can be traced to the priority Alberta places on research and education. Substantial resource revenues have been used to create world-class science and research centers, to expand universities and technical colleges, and to provide an environment that encourages lifelong professional development and fosters creativity.

Competitive Corporate Taxes
Albertans benefit from the lowest overall taxes in Canada.

Alberta is the only province that does not have a provincial retail sales tax.

Alberta has a competitive corporate tax rate for manufacturers.

As of April 1, 2001, the combined federal/provincial corporate income tax rate is 41.62% for general businesses, 35.62% for large manufacturers and processors, and 18.12% for small businesses.

Alberta does not have any general capital or payroll taxes, which are common in many other provinces and U.S. states.

With recent tax changes, Alberta will have one of the most competitive business tax environments in North America. The combined federal/provincial corporate income tax rate will be less than 30% by 2004.
The Government of Canada is reducing its general corporate income tax rate from 28% to 21% (same as the current manufacturing and processing rate).
Alberta's Small Business tax rate will fall from its current level of 6% to 3% by April 1, 2003.
The small business threshold (the amount of income eligible for the small business tax rate) will be doubled from $200,000 to $400,000 by 2002.

Provincial and State Corporate Income Tax Rates

Rates known as of January 2001.
Source: Alberta Economic Development

Low Personal Taxes
The overall tax burden on individual Albertans is by far the lowest of any province in Canada.

Alberta's provincial personal taxation rates are among the lowest in Canada. As of January 1, 2001, Alberta switched to a new single rate of tax on personal income of 10%.

A two income Alberta family of four, earning $60,000 per year, pays about $1,100 less in taxes than in Ontario, and $3,600 less than in Quebec.

A two income Alberta family of four, earning $100,000 per year, pays more than $1,900 less in total provincial taxes than in Ontario, and more than $8,700 less than in Quebec.

Alberta's Labour Force
Alberta's unemployment rate has consistently been one of the three lowest of all the provinces in Canada.

Alberta's unemployment rate declined from 6.9% in 1996 to 5% in 2000.

In 2000, average employment in the Alberta economy increased by 35,000 over 1999.

Labour Productivity:Alberta's total economic productivity increased at an average annual rate of 1.7% between 1984 and 1998, which was the highest rate in Canada.

Alberta's manufacturing productivity increased at an average annual rate of 3.2% between 1984 and 1998, which was the second highest rate of growth in Canada after PEI.

Alberta consistently has one of the best labour records of any province in Canada, in terms of fewest workdays lost due to strike.

Wages/Salaries: Average weekly manufacturing wage rates are competitive with most provinces and U.S. states.

When fringe benefits, particularly medical insurance costs, are added to U.S. wages, Alberta's wage costs are much lower than in the United States.

Infrastructure
Alberta's infrastructure is modern, cost effective and well distributed, allowing companies and industries through out the province to expand rapidly and take advantage of new investment and trade opportunities. A highly developed infrastructure - most notably world-class transportation and telecommunications networks - is also accelerating Alberta's business growth into the global marketplace.

Telecommunications: Thanks to one of the most advanced telecommunications systems in Canada, Albertans enjoy efficient, affordable local and long distance phone service and high-speed access to the Internet and a growing number of multimedia applications.

Financial Service Sector: Business is backed by a financial service sector that includes major Canadian and international banks. The recent restructuring of the Canadian stock markets, and the resulting merger of the Vancouver Stock Exchange and the Alberta Stock Exchange, to become Canada's junior equities market, with corporate offices located in Calgary have positioned Alberta as the financial center of western Canada.

Transportation: Alberta's extensive network of road, rail, air and pipeline facilities has contributed to the province's strength as an exporter of primary commodities. With direct connections to two of North America's largest highway trade corridors, quick and efficient access to the southern US and Mexican markets is available.

Business Operating Costs
Through a combination of low taxes, a skilled workforce and a well-established infrastructure, Alberta provides an advantage across all industry sectors.

In 2000, a study by KPMG analyzed the cost of doing business throughout Canada. Evident in this study was a significant cost advantage of doing business in Alberta. Industries examined included: food processing, call centres, electronics, medical devices, metal fabrication, pharmaceuticals, plastics, telecommunication, and software production.

These charts demonstrate the cost advantage Alberta has over other jurisdictions.

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