Do
BUSINESS with MANITOBA,
derive BENEFITS
MANIFOLD- Premier
Gary Doer
Manitoba is among the most developed
provinces not only of Canada but
of the entire North America. To
a large extent, the credit for Manitoba's
overall economic growth goes to
the conducive policies of its government,
headed by Premier Gary Doer. In
an exclusive interview ahead of
his state visit to India, Premier
Doer talks to Trade-Links Managing
Editor Satya Swaroop about his mission
to forge a lasting bond between
the business communities of India
and Manitoba. Excerpts:
India
and Canada have always shared common
economic interests, which get strengthened
from time to time during the visits
of top government leaders as well
as captains of industry and commerce.
In this context, could you talk
about the overall mission and specific
purpose of your visit?
As India is one of the world's fastest
growing economies, we are eager
to introduce Manitoba to the Indian
marketplace. Our trade mission includes
more than 45 business and education
leaders representing over 30 different
companies, institutions and organizations
from Manitoba. The province of Manitoba
is a diverse, multicultural society
with a prosperous Indian community.
We saw an opportunity to build on
those strong links that exist between
our province and India for the benefit
of our businesses.
Manitoba has a diverse economy with
strong sectors in energy and environmental
industries, agriculture and food,
life sciences and biotechnology,
aerospace and infrastructure development.
Manitoba companies with expertise
in areas vital to India's current
and future economic development
are interested in partnering with
Indian companies.
We would also like to showcase Manitoba
to Indian business and industry
leaders as a prime destination for
investment. Manitoba offers a strategic,
mid-continent location, with a central
time zone and easy access to Canada,
United States and emerging markets
in the Americas. We have modern
communication and transportation
networks that include convenient
air, rail and overland trade routes.
Our comparative business costs are
lower than many other major cities
in North America, including the
lowest published hydro-electric
power rates, and we have a stable,
parliamentary government.
Manitoba's industry is very diversified,
a similarity that India shares with
your region, with the manufacturing
segment playing a pivotal role in
economic growth. Do you have any
agenda to boost the two-way export-import
of industrial and capital goods
and technology in order to boost
the overall bilateral trade between
India and Canada?
We are one of several Canadian provincial
governments, including Ontario,
British Columbia and Quebec that
recognize the potential to increase
two-way trade and investment with
India. These missions also support
the October 2003 joint plan released
by the national governments of Canada
and India, which lays out a framework
for increasing trade and investment
between our two countries.
Manitoba's two-way trade with India
totaled to about $45 million in
2004, so there's obviously room
for growth on both sides of the
ocean. This mission is one of four
business-focused programs that the
Province of Manitoba has led to
India in the past 12 months. An
overall objective of our strategy
is to introduce Manitoba to India
and ensure that the expertise of
our companies is recognized by Indian
businesses seeking joint ventures
with Canadian partners. We also
think it is very important to deliver
this message in person, from Manitoba
to India. Any strategy for increasing
two-way trade must start with face-to-face
contact and building a working relationship
between India and our province.
The growth of private capital investment
in Manitoba has been remarkable
and remained so for a record 14
years in a row, thanks to conducive
government policies, highly developed
infrastructure and availability
of electricity at the cheapest possible
rate. What are the chances of Indian
companies with a global vision to
set up base in Manitoba in both
manufactured goods and services?
Manitoba is definitely wide open
for business of Indian companies
looking to set up a base in North
America and that is one of the strong
messages we will be delivering to
Indian industry leaders during our
visit.
Manitoba's low electricity rates,
which are the lowest published rates
in North America, are particularly
attractive to businesses in the
manufacturing sector, and these
affordable rates have helped us
attract manufacturers from outside
our province. The cost of land and
buildings are affordable, and we
have abundant fresh water supplies,
a key raw material for a variety
of manufacturing processes. Our
location at the heart of North America
not only offers cost advantages
for shipping, but provides logistical
advantages in terms of access to
key North American markets and in
times required to reach those markets.
These advantages have been borne
out in repeated studies by KPMG
of business costs in leading international
cities. These studies have ranked
Manitoba's business costs very favorably
in comparison to other jurisdictions
in North America. The most recent
edition of the study in 2004 compared
business costs across 17 industries
in 120 cities in the G-7 nations.
The results of the 2004 study showed
that Manitoba had an average cost
advantage of 5.6 per cent over the
U.S. across a variety of manufacturing
sectors. The cost advantage in knowledge-based
services like biomedical R&D,
clinical trials, electronic systems
testing, and digital content development
was even more dramatic between 14.2
per cent and 27.5 per cent.
Manitoba's commitment to welcoming
foreign business investment is demonstrated
through programs like our Provincial
Nominee Program for Business, which
specifically works to attract exceptional
business people from around the
world who are able and willing to
establish new businesses in Manitoba.
Manitoba is strong in Research and
Development of agri-foods (food
processing) and biotechnology, in
which India is also strong and trying
to catch up with the developed West.
What are the chances of large-scale
collaboration and exchange of research
results for their commercial application?
Collaborations with India involving
agri-food and biotechnology are
among the real possibilities we
will be exploring while in India.
Manitoba has a thriving biotech
sector, one of the fastest growing
in Canada, and is also home to the
Richardson Centre for Functional
Foods and Nutraceuticals at the
University of Manitoba, and the
Canadian Centre for Agri-Food Research
in Medicine, both in Winnipeg.
Our agricultural related biotechnology
expertise includes the development
of crops with enhanced qualities
and improved pest resistance, and
identification and extraction of
high value materials from crops.
Manitoba enjoys a global leadership
position in the development of cereal
and oilseed crop varieties. The
University of Manitoba's Faculty
of Agricultural and Food Sciences
is recognized for the leading role
it played in developing canola.
On the commercial side, Manitoba
companies like Cangene Corporation
have conducted clinical trials in
India.
Manitoba is a centre of excellence
in the areas of infectious disease
identification and management. A
significant concentration of the
province's activities in these areas
resides in the Canadian Science
Centre for Human and Animal Health,
the Public Health Agency of Canada,
and the International Centre for
Infectious Diseases. The Canadian
Science Centre for Human and Animal
Health is the first and only global
centre with level 4 bio-containment
capability for the study of both
human and animal disease.
In addition to the research knowledge
generated there, we have developed
specific construction and engineering
expertise related to bio-containment
laboratories. Delegations from Japan,
Mexico, Singapore, Switzerland and
the United States have toured Winnipeg's
Canadian Science Centre for Human
and Animal Health as they plan the
construction of their own bio-containment
labs.
There is a boom in consumerism and
subsequent surge in retail trade
in India. Companies from the West,
especially the US have already entered
or are keen to enter India to take
advantage of this huge market of
a billion people, of which 300 million
are well-off. Shouldn't Manitoba,
which is also strong in retail trade,
take advantage of the Indian market
through collaborations and franchises?
India's economic growth has been
extremely impressive and shows no
signs of slowing down. There's no
question that India's growing middle
class provides businesses with a
new marketplace, and one of the
goals of our mission is to introduce
Manitoba companies to that marketplace
and its emerging opportunities.
One of the concrete actions we are
exploring is forming a partnership
with the Confederation of Indian
Industry (CII). This partnership
would provide our trade mission
with a lasting link to India, allowing
CII and Manitoba Trade and Investment
to continue to work together to
provide Manitoba companies with
“on the ground” support
and advice when trying to set up
business in India.
Manitoba has recorded the highest
growth in the residential construction
industry among all provinces of
Canada. Here in India there is a
growing shortage of housing in the
fast-developing urban centers, where
there is big opportunity for investment
and transfer of modern building
technology. What are the chances
of collaboration between the construction
sectors of both countries?
Housing is one of several areas
where Manitoba may be able to offer
expertise to India, which has pressing
infrastructure needs on a number
of fronts. We are extremely experienced
in energy efficient construction,
which is as relevant for hot climates
as it is for colder climates. This
applies both to residential buildings
and industrial/commercial/institutional
buildings. Additionally, we have
specific expertise in designing
and building entire turnkey operations
for focused industrial applications
like grain handling, storage and
transport. Whether it's setting
up transportation systems such as
grain handling, rail transport and
aviation, to building modern educational
facilities, Manitoba has much to
offer India.
We are also leaders in energy efficiency
and water treatment and these and
other infrastructure issues will
be an important part of our mission.
Your stated objective is to promote
technology. Could you elaborate
the specific issues that you would
like to highlight?
Manitoba's traditional exports to
India have included commodities
like paper products and pulse crops.
We will continue to market these
items. However, India's rapid economic
growth creates demand for new technologies,
products and services.
As we have been discussing, we see
expanding and emerging opportunities
in a variety of areas, from infrastructure
development, to agri-food processing,
energy transmission technology,
management and conservation.
For example, Manitoba Hydro International
Ltd. provides expertise in the planning,
design, construction, management
and operation of generation, transmission
and distribution facilities to clients
worldwide. It has provided these
services to more than seventy client
organizations in over forty countries
during its past seventeen years,
and its expertise is available to
Indian companies, government and
institutions.
The Energy Services Alliance of
Manitoba is another entity that
offers a full range of services
to clients in the energy industry
ranging from initial demand assessment,
through regulatory advice, environmental
impact assessment, feasibility studies,
design, construction and commissioning,
to management, operation and maintenance
of completed systems.
We are also excited about opportunities
to partner with Indian educational
institutions on curriculum development
and joint-training initiatives.
Manitoba has a thriving Indian community
and we are keen to work with other
universities and colleges to train
our youth for the high-tech jobs
of the future.
In the area of forestry, you have
an enviable record at dealing with
wildfires, mitigation and management
of disasters. What kind of blueprint
could you offer India, which is
very vulnerable to disasters, both
natural and man-made?
Manitoba has an effective, coordinated
approach to managing “disasters”
through our Emergency Measures Organization
(EMO). Our EMO has been invited
to other parts of the world to assist
with flood recovery and prevention.
One of the keys to managing through
difficult, unexpected situations
is having a central organization
that is trained to deal with crisis,
has well-developed contingency plans,
and the authority to unite all the
parties involved in a coordinated,
quick response.
For example, with the recent threat
of avian flu, we have modernized
and updated our response plans throughout
the province. As legislators, we
can play a valuable role by listening
to the advice of public health and
emergency officials and providing
them with the tools they need to
properly deal with urgent situations.
Your region has been able to post
positive growth in exports despite
the highly competitive conditions
prevalent in international markets.
What has been your strategy to achieve
this feat, which India could emulate?
Our province enjoys a diverse economy
which has helped us weather the
storms that may effect a particular
sector at any given time. As a government,
we have focused on enhancing and
retaining Manitoba's affordability
advantage. We have introduced policies
that have kept Manitoba's energy
costs low and are continuing with
a long-term plan that has reduced
both small business and corporate
tax rates. Manitoba's business costs
are very favorable when compared
to other jurisdictions and this
gives our companies a competitive
advantage in the global marketplace.
At the same time, we have top notch
education and training facilities
and a hard-working, highly-educated
workforce.
We have also worked to diversify
the international markets in which
we do business. We have increased
the proportion of our non-US bound
exports from 19 per cent to 25 per
cent of total exports, over the
last 3 years. This diversification
helps to mitigate against setbacks
in individual markets, and helps
to ensure that our exports continue
to grow.
We have also focused on marketing
Manitoba to other jurisdictions.
In addition to affordable business
costs, Manitoba offers a tremendous
quality of life. The cost of living
is affordable; we have quality schools
and health care facilities, and
as a province with 100,000 lakes,
we have wonderful recreational opportunities.
Whether through trade missions such
as this one, or invitations to visit
Manitoba, or other points of contact,
we are always promoting our province,
its people and its potential. We
believe Manitoba is the best place
to live, work, raise a family, own
and operate a business and we deliver
this message at every opportunity.
Finally, what is your message to
India's business community that
could help it connect both countries
more effectively than at present?
Every province, country, business,
individual will find their own recipe
for success. For Manitoba, it has
been bringing a “can-do”
attitude to work every day. I have
been very fortunate to be premier
of a province where people from
all political stripes, the public
and private sectors, business, labour,
the multicultural community and
non-profit organizations are keen
to work together on initiatives
that benefit Manitoba. Our goal
is to continue to bring this approach
to each and every opportunity that
crosses our path.