Business leaders breathe sigh of relief on Alberta referendum result

Business leaders embraced Alberta’s vote to remain in Canada as a boost for the country’s economy and a call to strengthen the federation.

On Monday, roughly 76 per cent of Albertans voted in favour of staying in Canada and 24 per cent for a binding referendum, according to preliminary results from Elections Alberta.

Market reaction to the Alberta referendum results on Tuesday “is likely to be more of a sigh of relief,” according to Bank of Montreal chief economist Doug Porter.

In an e-mail, Mr. Porter noted the Canadian dollar is strengthening a bit more than other currencies against the U.S. dollar today, though he said this can also be attributed to rising oil prices and expectations that the Bank of Canada will raise interest rates, possibly as soon as next week.

Follow live coverage of the Alberta referendum results

Business leaders with ties to Alberta said referendum results reinforce the concept that Canada is stronger together.

“This result reaffirms that even through periods of strain, Canada endures because its people continue to see something worth building together,” said Scott Thomson, chief executive officer at Bank of Nova Scotia, in an e-mail.

“I have spent much of my working life in Alberta and around its natural resources sector, and I am more optimistic today than I have been in years,” said Mr. Thomson, who previously served as chief financial officer at Calgary-based Talisman Energy Inc.

Mark Little, chief executive officer of Suncor Energy Inc. from 2019 through 2022, said Alberta’s decision to remain in Canada is “very positive” for the province.

In response to Alberta Premier Danielle Smith’s LinkedIn post announcing victory for the federalist side, Mr. Little said there is still “lots of work to do to achieve Alberta’s full potential in Confederation! Let’s go!!”

Numerous leaders echoed the message that the referendum results should encourage a cross-Canada conversation, rather than end the discussion of how to fix what ails the country.

“Alberta has clearly chosen to remain in Canada and commit to our shared future. Businesses, workers and communities can feel more confident with this result,” said Canadian Chamber of Commerce chief executive Candace Laing in a statement.

“Alberta is central to economic security and opportunity in Canada and we must now turn our attention squarely to the needed work to collaboratively build a stronger, resilient, united economy from coast to coast to coast,” said Ms. Laing, who grew up in Saskatchewan and was an executive at fertilizer producer Nutrien, one of the country’s largest exporters.

In Alberta, Calgary Chamber of Commerce CEO Deborah Yedlin said in a statement: “At a time of growing global competition and trade uncertainty, Albertans have delivered a clear mandate: we want to be at the table, helping shape Canada’s prosperity and ensuring our province’s contributions and potential are fully recognized.”

Energy producers, utilities and the federal and Alberta governments are set to launch multibillion-dollar projects that include a new pipeline from the oil sands to Vancouver and an expansion of West Coast natural gas export facilities.

Alberta’s vote to remain in Canada is “unambiguously constructive” for the country’s plans to build this energy infrastructure, according to RBC Capital Markets analyst Maurice Choy. In a report, he said the referendum results removed “a tail risk that has cast a modest shadow over the sector for certain investors.”

“A unified Canada preserves the legal, regulatory, and financial frameworks that have underpinned the long-dated, contracted/regulated cash flows that have defined much of the sector’s investment thesis,” said Mr. Choy.