Quebec must seize the economic opportunities that its electricity provides before being caught up, says the president of BMO in Quebec, Grégoire Baillargeon. Unlike the big boss of the National Bank, the banker views the billions of dollars in government support for the battery sector much more favorably.
“I wouldn’t want us to wake up in ten years, in Quebec, and say to ourselves: ‘We had an opportunity, we missed it,’” says Mr. Baillargeon, in an interview, before a speech Monday in front of the Canadian Club of Montreal.
“Renewable energy will be everywhere on the planet,” he warns. Right now, we have that in Quebec, but in ten years, most places in the world will get there. This advantage is temporary. […] Quebec must seize the opportunity. »
After decades of abundance, electricity is already becoming scarcer in Quebec, and Hydro-Québec envisages the end of surpluses around 2027. Quebec hydroelectricity is benefiting from renewed interest while industrialists want to decarbonize their activities , not to mention the electrification of transport, which will lead to an increase in consumption.
Hydro-Québec also plans to invest tens of billions of dollars by 2035 to increase its production capacity and nearly 50 billion to ensure the reliability of infrastructure.
The Minister of the Economy, Pierre Fitzgibbon, has repeatedly reiterated that industrial demand exceeds supply and that the government should choose the most promising industries and new projects.
Mr. Baillargeon does not believe, however, that the opportunity he invites to seize has already passed. “We are missing [de capacité de production], but everyone lacks it, so there is nothing special about it, explains the banker. We start with an advantage. »
In this context, the businessman supports the development of the battery sector, supported by Quebec and the federal government. The electrification of transportation gives Quebec the opportunity to participate in the automobile industry, “one of the biggest industries in the world,” he says. “This is an opportunity that will last for generations. »
Support for government policies contrasts with the criticism of the big boss of the National Bank, Laurent Ferreira. In September, he said in a speech that he was “not a big fan of subsidies to attract foreign companies to the country.”
In an interview on the sidelines of the event, he clarified that these comments applied to the billions in aid to the battery sector in Quebec and Ontario. “My point on this is that when we give subsidies to foreign companies, they go directly into the pockets of foreign shareholders, who are mainly not Canadian. I doubt this model, in the longer term, in wealth creation. »
Mr. Baillargeon specifies that his opinions are not that far removed from those of Mr. Ferreira. “I do not have a diametrically opposed view to the comments [selon lesquels il] we have to support our local ecosystems, but I certainly have a very supportive view of all of our governments and the private sector on the battery sector. I think this is an extraordinary opportunity for Quebec. »
Even if he pleads in favor of the sector, the businessman believes that the concerns of environmental groups must be heard, at a time when many of them are worried about the effects of the construction of the Northvolt factory. in Saint-Basile-le-Grand on the fauna and flora. The Swedish company, for its part, promises mitigation and compensation measures.
The time when we ignored the sustainability of economic projects “is over”, believes the banker, who maintains “that we are looking much better at these questions”.
“These debates are intense, it’s very healthy, it’s correct, but we have to be able to find compromises to allow this economic growth, which comes to nourish our State, which comes to nourish our society, while making the things very responsibly. »
BMO “not in reduction mode” of jobs in Quebec
Regarding the repercussions of rising interest rates on BMO’s activities in Quebec, Mr. Baillargeon is reassuring in an interview. The fourth largest bank in the country has approximately 5,000 employees in the province.
With interest rates rising and the economy slowing, the job market in the Canadian banking sector is facing tough times. Announcements of layoffs have multiplied in recent months.
To control inflation, the Bank of Canada wants to slow down the economy, which inevitably has an effect on the banks’ results, which are correlated with economic activity, explains Mr. Baillargeon, who judges that the announcements of losses of Jobs in the industry “are not out of the norm” when compared to those in previous downturn cycles.
“Banks are a little less in growth mode than they have been in recent years, and that often comes with workforce reductions,” explains the manager.
In the fourth quarter, BMO had not disclosed any major layoffs, but it reported that its total workforce was down by 1,600 people.
“Here, in Quebec, there is still great stability for us. […] We see the future of our banking services here in Quebec in a very, very positive way. We’re really not in reduction mode, not at all. »