The business plan for the three years commencing April 1, 2006 was prepared under my direction in accordance with the Government Accountability Act and the government's accounting policies. All of the government's policy decisions as of February 23, 2006 with material economic or fiscal implications of which I am aware have been considered in preparing the business plan.

The Ministry's priorities outlined in the business plan were developed in the context of the government's business and fiscal plans. I am committed to achieving the planned results laid out in this business plan.

[Original Signed]

Clint Dunford, Minister of Economic Development
March 1, 2006

THE MINISTRY

Alberta is the best place in the world to live, visit and do business.

To facilitate business and community prosperity.

Link to goals in the Government of Alberta business plan
In fulfilling its mandate, Economic Development demonstrates support for the broader goals of the Government of Alberta as outlined in its Government of Alberta business plan. Goal 1 - Alberta will have a diversified and prosperous economy. Goal 3 - Alberta's international competitiveness will be enhanced.

Link to strategic opportunities in the 20-year strategic plan
Economic Development also contributes to the attainment of the Government of Alberta 20-year strategic plan, Today's Opportunities, Tomorrow's Promise: A Strategic Plan for the Government of Alberta, through the following strategic opportunities:

Strategic Opportunity 1 – Unleashing innovation

• Creating the environment and infrastructure that enables knowledge and technology to invigorate our traditional economic strengths and to create new economic opportunities.

Strategic Opportunity 3 – Competing in a Global Marketplace

• Ensuring reliable export markets.
• Building on Alberta's economic cornerstones, such as oil and gas, agriculture, forestry and tourism.
• Continuing to keep taxes low.

Opportunities
Alberta leads Canada in economic performance and future growth prospects. Economic growth over the past decade has provided Albertans with the most enviable record in Canada in terms of job creation, average family income, standard of living and lowest overall tax burden. New opportunities for value-added service and supply industries and technologies related to the energy sector, along with increasing international trade opportunities and tourism development initiatives, help to balance future economic growth in the province.

More than $100 billion in major capital projects are under construction or planned for Alberta over the next few years. Most of this investment is being driven by the energy sector, which is creating significant new opportunities for value-added service and supply industries and development of new technologies, particularly in the non-conventional oil and gas sectors (i.e., oil sands, coal bed methane).

Opportunities in international trade and investment initiatives will help to support sustainable economic growth in Alberta. The government will continue to manage the implications of a dynamic international environment in order to build alliances with key decision makers, attract investment and export Alberta products and services to new and existing markets. Growth in new and emerging global economies such as China and India present future prospects to grow and diversify investment sources and export markets, while still nurturing our strong ties with the U.S.

In addition to trade and investment opportunities, people from across Canada and beyond are attracted to Alberta for its quality of life and world-class tourism. Increasing demand for tourism experiences including Aboriginal, agri- and eco-tourism creates new opportunities for the province. Additional tourism funding, supported by Alberta's Tourism Levy, will assist in the development of tourism products and services in these areas. The Aboriginal community, together with a newly established Aboriginal Tourism Advisory Council, will guide the development of Aboriginal tourism in the province.

Challenges
Continued economic growth and innovation in a variety of sectors positions Alberta as a strong global player as the province advances into its second century. Effective management of growth in key areas will help to ensure that Albertans can continue to live in a prosperous province and enjoy a high quality of life. However, the magnitude of investment in energy and a number of other sectors is creating major challenges for Alberta in terms of skill shortages, infrastructure pressures and balancing economic growth over the longer term to ensure that Alberta's economy does not become increasingly dependent on, and vulnerable to, the cyclical nature of the commodity energy sector.

Providing Skilled Workers – Continued growth in a variety of sectors, changing demographics and tightening labour markets place increasing demand for a skilled and knowledge-based workforce across the province. A skilled and highly competent workforce is key to maximizing our current economic opportunities and to creating new ones. The Ministry is developing an immigration marketing strategy to attract and retain skilled immigrants to Alberta. The Ministry will also continue to deliver the Provincial Nominee Program.

Strengthening the Rural Economy – Strong rural/regional economies are the foundation for strong rural communities. Encouraging a stronger future for rural Alberta by promoting economic and community development are key areas for growth. Economic Development supports the Rural Development Strategy and its efforts to strengthen rural communities and their economies. The Ministry further supports rural development through increased emphasis on tourism marketing and development in rural communities.

Improving Infrastructure and Transportation Links – Alberta's continued growth depends on many factors including sufficient infrastructure (e.g., post-secondary and health facilities) and efficient transportation links to get goods to market. Economic Development continues to partner with other government departments, including the Ministry of Infrastructure and Transportation, to address industry's business needs.

Maintaining a Globally Competitive Business and Tax Environment – Alberta maintains its position as a business-responsive environment by supporting a low rate, broad-based tax regime. The challenge for government is to maintain its competitive position in order to continue to attract new industry and business development.

Innovation Capacity and Performance – Improving Alberta's innovation capacity is critical to supporting the province's long-term economic competitiveness in a global economy. Economic Development continues to encourage innovation and productivity through Securing Tomorrow's Prosperity, the province's long-term market-driven value-added strategy that encourages the creation of higher value-added jobs, goods and services.

Benchmarking shows that by most economic indicators, Alberta has been Canada's top performer and an above average performer compared to some of the strongest U.S. and European performers, as shown in Chart 1. However, as shown in Chart 2, Alberta's innovation performance lags behind its U.S., European and Canadian competitors.

Economic Development works with other government ministries and stakeholders to address Alberta's economic challenges. This approach is focused on managing the challenges of economic growth now and over the long-term, and encouraging development that is shared across Alberta, based on regional strengths.

Within this framework, Economic Development has three priorities:

Securing Tomorrow's Prosperity:
The Ministry continues to expand and implement value-added strategies that foster additional economic wealth creation opportunities. Economic Development's long-term market-driven value-added strategy, Securing Tomorrow's Prosperity, encourages innovation and productivity and the creation of value-added jobs, goods and services.

Efforts are focused on adding value to priority sectors with the highest potential for growth, enhancing industry capacity and development and improving productivity through innovation and technology adoption. Efforts to enhance Alberta's competitive advantage focus on pursuing tax policy and other mechanisms that improve access to equity capital and ensuring effective and efficient transportation systems reach global markets. For example, the Ministry is developing an immigration marketing strategy to attract and retain skilled immigrants to Alberta as well as working with stakeholders to promote opportunities within Alberta's refining and petrochemical industry.

Rural and Regional Development:
The Ministry supports the Rural Development Strategy, which is a government approach to building vibrant and sustainable rural Alberta communities. Economic Development continues to implement strategies to develop and market business opportunities in rural Alberta. Initiatives within the strategy seek to facilitate the building of business relationships among firms, Aboriginal communities and stakeholders; develop and deliver tools necessary to support economic and community development in rural Alberta; and strengthen the capacity of community economic development across the province. The Ministry further supports rural development through tourism marketing and development in rural communities.

International Strategy:
Economic Development manages the implications of a dynamic and changing international environment in order to build alliances, attract investment and economic immigrants, and export Alberta products and services to new and existing markets. The strategy secures Alberta's long-term economic future by strengthening and diversifying Alberta's export markets and increasing international investment sources.

Economic Development continues to pursue strategies and initiatives that enhance Alberta's international competitiveness, expand Alberta's economy by capitalizing on international opportunities for Alberta goods and services and increase tourism visitation to Alberta. The Ministry focuses on helping companies enhance and diversify business linkages beyond the U.S. market; expand business relationships in emerging economies; expand the trade and investment focus to include the attraction of skilled immigrants; and promote Alberta products and services in targeted international markets.

This strategy also provides an opportunity to build upon existing government strategies in the areas of: human capital, involvement in international relations, and research and innovation investment.

The Ministry will continue to focus on the transparent and effective use of tourism levy funding for the development and marketing of new and expanded tourism opportunities. This includes increasing marketing promotions to compete more effectively in national and international markets and developing and marketing new tourism opportunities including the Canadian Badlands, Grande Alberta Dinosaur Trail and winter tourism corridors, and emphasizing the role played by Alberta's two largest cities, Edmonton and Calgary, in providing "Gateway" access to the rest of the province.

Economic Development monitors trends and issues that impact Alberta government policy and programs and sets a long-term strategic direction for Alberta's economic development by focusing government's overall efforts at maintaining and enhancing the Alberta Advantage. The Ministry will continue to collaborate in the development and implementation of key policy initiatives to support the value-added strategy, including: a cross-ministry immigration strategy to support immigrants and immigration to Alberta; mechanisms to support technology commercialization and adoption, and enhance access to equity capital; and an integrated multi-modal transportation strategy.

1.1 Lead the implementation of Securing Tomorrow's Prosperity with other participating ministries to support the development of competitive value-added goods and services industries.

1.2 Provide longer-term strategic input to the development of policy to maximize the value of Alberta's natural resources and to support a sustainable and diversified economy.

1.3 Collaborate with the Alberta Economic Development Authority to set key directions where targeted actions and strategies can produce the best economic return for Albertans.

1.4 Provide the skills, processes, and technology to enhance information collection and analysis, management and sharing of knowledge within the Ministry, and to support strategic consultation with our clients.

1.5 Participate in government's top priorities that influence the province's prosperity.

The Ministry is continually working to strengthen its strategic intelligence gathering and dissemination processes and capabilities to deliver timely and relevant information and intelligence to our clients.

2.1 Use Economic Development's network of international and regional offices, and business and government contacts, to deliver business and economic information and intelligence in a timely fashion to support our clients in their decision-making processes.

2.2 Enhance the effectiveness of Economic Development's website, www.alberta-canada.com, as a tool to disseminate business information and intelligence to clients.

2.3 Assist the development and expansion of small and medium sized Alberta businesses through innovative means (e.g., e-business training) that are provided by service delivery organizations such as The Business Link and the Calgary Business Information Centre.

2.4 Report on the performance and prospects of the Alberta economy to facilitate businesses' planning and budgeting.

Economic Development works with Alberta business clients, communities and Regional Economic Development Alliances to identify market opportunities for expansion, trade and industry development. The Ministry markets Alberta as an attractive destination for investment, film production, locating businesses and skilled workers in targeted sectors. The Ministry provides information to companies, economic immigrants and individuals and assists them with services designed to attract them to the province.

Economic Development is also responsible for planning, organizing and coordinating Premier and Ministerial trade missions, and other international inbound and outbound missions to raise awareness among international clients of the capabilities of Alberta's industry and to present Alberta's businesses with specific opportunities to expand their export markets.

The Ministry works closely with the Alberta Economic Development Authority in identifying priority markets for future business missions. It also develops Alberta's International Marketing Strategy that contains the Government of Alberta's plan to expand export trade and investment by focusing on specific international markets and key industry sectors of the Alberta economy. Alberta's international offices provide strategic market intelligence, create partnerships, networks and alliances, focus on attracting new investment and showcase Alberta.

The Ministry works to make Alberta globally competitive in priority sectors by promoting initiatives to improve company innovation and productivity at home and in the international marketplace. As identified in Securing Tomorrow's Prosperity, these priority sectors are:

• Energy Technologies and Services
• Agri-food
• Building/Wood Products
• Chemicals and Refined Petroleum Products
• Information and Communication Technologies
• Health and Bio Industries
• Environmental Technologies and Services
• Tourism

3.1 Encourage industry growth and build market presence in Alberta's priority sectors by utilizing Economic Development's sector teams.

3.2 Improve company competitiveness and productivity by supporting industry innovation, technology adoption and productivity including:

• Encouraging the adoption of technology commercialization and business practices/processes.
• Assisting Alberta companies to match/develop capabilities to market opportunities.

3.3 Promote and develop partnerships, networks and alliances to expand capabilities and improve competitiveness.

3.4 Work with industry to establish a vision for long-term growth.

The Ministry facilitates exports in manufactured products and professional, scientific and technical services to target markets.

4.1 Provide strategic intelligence and market information to support companies in identifying and accessing market opportunities within global target markets.

4.2 Assist export-ready Alberta businesses in developing capabilities to export products and services to international markets.

4.3 Support market entry for Alberta exporters by showcasing Alberta abroad.

4.4 Support Alberta companies pursuing capital projects financed by international financial institutions.

4.5 Promote and develop partnerships with other government agencies (federal, provincial and municipal) to assist Alberta companies.

4.6 Build on Alberta companies' capabilities in sectors such as oil and gas and agri-food products to enable market penetration of closely related sectors, such as engineering services or environmental goods and services.

4.7 Assist Alberta businesses in reaching potential investors, partners and customers by providing local market support through Alberta's international office network.

The Ministry works with individuals and companies to secure and retain investment for Alberta, with a specific emphasis on priority economic sectors. The Ministry also facilitates the attraction of economic immigrants (skilled workers and business entrepreneurs).

5.1 Market Alberta as an attractive destination for investment to targeted companies and capital investors.

5.2 Target international companies within priority sectors and global markets for new or expanded investment in Alberta.

5.3 Expand the Provincial Nominee Program to assist employers in meeting skilled worker shortages.

5.4 Market Alberta as a destination for economic immigrants.

5.5 Market and promote Alberta as an attractive location for film production and investment and deliver the Alberta Film Development Program.

5.6 Work with rural Alberta communities and alliances to identify investment opportunities.

Economic Development supports the Rural Development Strategy to ensure that rural Albertans contribute to and benefit from a diverse, sustainable and prosperous economy. The Ministry also contributes to the work of 12 Regional Economic Development Alliances across Alberta.

6.1 Increase the number of Regional Economic Development Alliances across the province.

6.2 Support the ongoing development and operations of the Regional Economic Development Alliances throughout Alberta, which includes developing strategic plans and annual operating plans, and supporting regional economic development.

6.3 Provide information and advice to other regional partnerships and community economic development projects, including assistance to communities suffering from major economic setbacks (e.g., plant closures, natural disasters).

6.4 Strengthen community economic development capacity within Alberta through partnerships with the Economic Development Association of Alberta, AlbertaFirst.com, the Regional Economic Development Alliances and others.

6.5 Support the implementation of the Rural Development Strategy.

6.6 Encourage/build relationships between regional alliances and Aboriginal communities.

6.7 Enhance the delivery of business information and management training opportunities to Aboriginal entrepreneurs and businesses.

The Ministry facilitates the development of the tourism industry and marketable tourism product by undertaking research, representing tourism industry interests in policy and planning initiatives and providing information to industry that helps to position new and enhanced tourism products in Alberta.

Tourism marketing priorities are developed through the Strategic Tourism Marketing Council's three-year plan and delivered by the Travel Alberta Secretariat.

The Ministry facilitates the development of tourism products and the tourism industry.

7.1 Work with industry and stakeholders to reduce impediments to tourism growth and ensure a policy and regulatory environment that is supportive of tourism development.

7.2 In cooperation with Community Development, encourage a more active role in the tourism industry for Provincial Parks/Recreation Areas and historical sites including private sector business opportunities that are compatible with the size and management intent of the site or facility.

7.3 Provide advisory services, expertise and information to existing tourism operators, start-up operations and stakeholders to facilitate the development and improvement of Alberta's private and public sector tourism products and assets.

7.4 Facilitate and attract investor/entrepreneur interest and investment in Alberta's tourism industry.

7.5 Support the expansion of the tourism industry through development of new and enhanced destinations and products (including Canadian Badlands, Grande Cache area, the Grande Alberta Dinosaur Trail, Winter Tourism Corridors and Film Tourism).

7.6 Work closely with the Aboriginal Tourism Advisory Council to identify Aboriginal tourism product development, and work closely with First Nations and Métis interests and communities to develop and market Aboriginal tourism product (e.g., the Métis Crossing Project and interpreter training program).

7.7 Develop and market new tourism opportunities in rural Alberta.

7.8 Work with other levels of government and industry stakeholders to increase awareness of tourism as a viable economic activity, and advocate for a business environment that supports the growth and development of tourism.

The Ministry, through the Strategic Tourism Marketing Council and Travel Alberta, develops and implements marketing programs that heighten awareness of Alberta as an attractive destination for tourism.

8.1 Develop and partner domestic and international marketing programs for Alberta through Travel Alberta that support the Strategic Tourism Marketing Plan developed by the Strategic Tourism Marketing Council. The Plan outlines both domestic and international target markets and strategies to increase visitation, length of stay and spending in Alberta.

8.2 Deliver tourism marketing support services to influence travel behaviour through:

• Information dissemination and travel counselling through the Travel Alberta Visitor Information Centres and Contact Centre and through community Visitor Information Centres.
• Enhancement of the Tourism Information System to better support the Travel Alberta Contact Centre and Visitor Information Centres, the TravelAlberta.com website and publications.
• Expansion of tourism research to assist industry decision-making.
• Continued improvements to support effective, customer-focused and user-friendly Alberta tourism websites.