The New Brunswick Economy 2001 Published by: Department of Finance Province of New Brunswick P.O. Box 6000 Fredericton, New Brunswick E3B 5H1 Canada Internet: www.gnb.ca/fin March 2001 Cover: Communications New Brunswick (CNB 557) Translation: Translation Bureau, Supply and Services Typesetting: Queen’s Printer for New Brunswick Printing and Binding: Printing Services, Supply and Services ISBN 1-55236-500-X ISSN 0548-4073 Printed in New Brunswick Table of Contents Page Overview 5 International Economy 6 Canadian Economy 7 New Brunswick Economy GDP growth stronger than anticipated in 2000 9 GDP growth slows in 2001 10 Exports growth strong 11 Inflation jumps 12 Retail trade growth slows 13 Wages and salaries continue to increase 14 Labour Force Record employment 15 Goods producing sector employment stronger 16 Unemployment rate continues to decline 17 Employment growth in most regions 18 Population Population growth improves 19 Aging population 20 Construction Capital investment remains strong 21 Manufacturing Manufacturing shipments soar 22 Forestry Wood products experience difficulty 23 Paper and allied products growth robust 24 Mining Mining production declines 25 Utilities and Service Industries Utilities increase 26 Technology and communication strengthen 27 Transportation sector expands 28 Food services growth higher 29 Agriculture, Fisheries and Aquaculture Primary food production growth overall 30 Statistical Tables 31 Based on data available as of March 1, 2001. 2000 Statistical Summary Bilan statistique de 2000 New Brunswick % Change ($ Million) 2000/1999 (unless otherwise stated) N.B. Canada Nouveau-Brunswick Écart (en %) (en millions de entre dollars, sauf 2000 et 1999 indication contraire) N.-B. Canada Output and Income / Production et revenus GDP / PIB Current $ / (en dollars courants) 19,425.0 5.6 8.4 Constant $ (1992) / (en dollars constants de 1992) 17,193.0 3.5 4.7 Personal Income / Revenu personnel 17,203.0 5.2 6.1 Capital Formation / Formation de capital 3,632.0 -4.9 7.3 Exports / Exportations 7,400.1 21.6 16.0 Retail Trade / Commerce de détail 6,910.2 4.6 6.3 Population and Labour Force / Population et population active Total Population (July 1) (’000) / Population totale au 1er juillet (’000) 756.6 0.3 0.8 Labour Force / Population active (’000) 371.7 1.6 1.8 Employment / Emploi (’000) 334.4 1.8 2.6 Unemployment / Chômage (’000) 37.3 0.0 -8.4 Unemployment Rate / Taux de chômage (%) 10.0 .. .. Participation Rate / Taux d’activité (%) 61.6 .. .. Industrial / Secteurs d’activité Farm Cash Receipts / Recettes monétaires agricoles 365.9 -1.7 6.7 Housing Starts (number) / Mises en chantier (nombre) 3,079 10.9 1.1 Manufacturing Shipments / Livraisons de biens de fabrication 10,594.2 20.7 9.2 CPI (1992 = 100) / IPC (1992 = 100) 112.8 3.3 2.7 Sawn Lumber Production (’000m3) / Production de bois d’œuvre (’000m3) 3,383.3 -2.7 0.2 Overview • The North American economies continued to grow at a strong pace in 2000. Led by business investment and consumer expenditure, Canada had real Gross Domestic Product (GDP) growth of 4.7%. In New Brunswick, economic growth of 3.5% was stronger than anticipated. Continuation of major construction projects in the transportation and manufacturing sectors, as well as additional development in the energy sector, contributed to overall growth. • Increases in New Brunswick manufacturing shipments, exports, housing starts and restaurant receipts surpassed national rates. Manufacturing shipments and exports, influenced by higher commodity prices, each increased by over 20%. Housing starts reached their highest level since 1994. • Retail trade growth slowed, following near record growth in 1999. The province’s inflation rate was above the Canadian average for the first time since 1997 as higher energy prices exerted upward pressure. Tourism revenue held steady and capital investment declined somewhat relative to last year’s record levels. Population growth was more than double the previous year. • New Brunswick employment reached a record high in 2000, increasing 1.8% to 334,400. The majority of employment gains were in full-time jobs. With slower growth in the labour force (+1.6%), the unemployment rate fell to a new low of 10.0%. The participation rate rose for the fourth year in a row to 61.6%. Wages and salaries subsequently continued to increase. • The mining, shipbuilding, electrical energy and wood products sectors are facing challenges. • For 2001, economic growth in North America is expected to slow, although Canada’s performance should be stronger than that of the US. Real GDP in New Brunswick is projected to grow by 2.1%. Capital investment is anticipated to be relatively strong despite the completion of major projects. The provincial unemployment rate is projected to make additional progress. Energy prices are expected to moderate, resulting in lower consumer inflation. International Economy • The 2000 world economy, as defined by the International Monetary Fund, grew by an estimated 4.7%. This can be attributed to strong growth in the US, robust expansion in Europe and a fragile recovery in Japan. • The US displayed exceptional growth in the first half of 2000, followed by signs of considerable slowing in the second half. The slowdown affected business spending on capital equipment, housing starts, government spending and personal expenditures. • The Euro area benefited from high consumer and business confidence. The euro continued its poor performance against the US dollar. • Japan’s economy grew due to increasing corporate profits, and investment in plant and equipment, particularly in the high tech sector. Japan continued to struggle with banking and corporate restructuring. • Higher inflation mainly due to increasing energy prices was experienced, although core inflation remained relatively low. Energy prices are expected to moderate in 2001. • Growth for the global economy in 2001 will depend on the ability of the US to engineer a soft landing. Private forecasters estimate US economic growth of about 2.5%. Canadian Economy • The Canadian economy continued its strong growth in 2000 at 4.7%. Business investment and consumer expenditure remained strong contributors to economic growth. • Consumer inflation increased by 2.7%, driven mainly by energy price increases. Core inflation was 1.5%, within the Bank of Canada’s target range. • Employment rose by 2.6% to 14.9 million in 2000, with the unemployment rate dropping to 6.8%, a level not seen since the mid 1970s. • Economic growth in 2001 is expected to be slower (in the 3% range). This is somewhat dependent upon a soft landing for the US economy. The Canadian economy is expected to outperform the American economy as it will be bolstered by fiscal and monetary policies that will enhance domestic demand. • Employment for 2001 is forecast to increase between 1% and 2%, with the unemployment rate staying near the level experienced in 2000. • Energy prices are expected to moderate in 2001 bringing consumer inflation down somewhat. New Brunswick Economic Indicators Growth Rates, 1997 to 2001 Indicateurs économiques du Nouveau-Brunswick Taux de croissance de 1997 à 2001 1997 1998 1999 2000 20011 (percent change unless otherwise indicated) / (écart en pourcentage, à moins d’indication contraire) Economic Accounts / Comptes économiques Gross Domestic Product (GDP) / Produit intérieur brut (PIB) 1.2 4.0 5.3 5.6 4.3 Personal Expenditures / Dépenses de consommation 3.9 4.5 4.5 5.5 4.3 Government Current Expenditures / Dépenses publiques courantes -1.4 3.5 4.1 4.0 5.2 Capital Formation / Formation de capital -4.3 13.1 26.4 -4.9 -19.3 GDP (real) / PIB (réel) 0.4 4.0 4.2 3.5 2.1 Income / Revenus Personal Income / Revenu personnel 1.7 4.3 3.9 5.2 3.2 Labour Income / Revenu du travail 2.2 4.5 5.2 6.2 3.1 Corporate Profits Before Taxes / Bénéfices des sociétés avant impôts -7.4 -1.0 22.2 25.5 5.6 Population and Labour Market / Population et marché du travail Population, Total2 / Population totale2 0.2 -0.1 0.1 0.3 0.1 Labour Force / Population active 2.7 1.7 1.1 1.6 1.1 Employment / Emploi 1.5 2.3 3.3 1.8 1.3 Unemployment Rate (%) / Taux de chômage (%) 12.7 12.2 10.2 10.0 9.8 Participation Rate (%) / Taux d’activité (%) 59.9 60.7 61.0 61.6 61.9 Other / Autre CPI / IPC 1.9 0.6 1.6 3.3 2.5 ______________ 1Projections / Prévisions 2As of July 1 / Au 1er juillet GDP Growth Stronger Than Anticipated in 2000 • The New Brunswick economy showed a better performance than anticipated in 2000 as major construction projects in the transportation, manufacturing and energy sectors fueled growth. • Private sector forecasters pegged New Brunswick’s real GDP growth in the 2.9% to 5.5% range. The Department of Finance estimated growth of 3.5%. • There was strong growth in the construction, manufacturing, transportation, trade, and finance and insurance sectors. Some sectors of the traditional resource industries benefited from higher commodity prices. • In general, goods producing industries posted higher growth than the service producing industries. The public sector also showed positive growth. • Personal income increased 5.2% due to solid labour income and unincorporated business income growth. Corporate profits also registered significant growth. • On the expenditure side, there was strong growth in personal expenditures on goods and services. Net government current expenditures on goods and services also increased. With major investment projects either completed or near completion, capital expenditures declined to the second highest level on record. See tables 4, 6, 7 and 8. GDP Growth Slows in 2001 • Private sector forecasters are anticipating real GDP growth for New Brunswick in the range of 1.1% to 2.8% for 2001. • Economic activity is expected to slow, as construction activity declines to a level seen prior to the major investment projects of the last two years. Capital investment in the utilities; retail trade; information and culture; finance and insurance; and real estate industries will assist in maintaining that level. • Most industries, excluding construction, should see positive growth in New Brunswick. • Slower growth in the US and Canada is expected to have a downward effect in New Brunswick in the form of decreased demand for manufactured and natural resource products. • Helping to offset decreased demand will be increased consumer demand through lower income taxes and interest rates. The New Brunswick economy is forecast to increase 2.1%. Exports Growth Strong • In 2000, the value of New Brunswick’s exports to foreign markets increased by 21.6% to over $7.4 billion. Higher commodity prices had an impact on the outcome, most notably for refined petroleum products, pulp, newsprint and zinc. The national increase was 16.0%. • Most of the gain can be attributed to increases in energy (+57.9%) and forestry (+8.9%) products. Machinery and equipment (+34.7%) and food products (+9.0%) also had significant increases. • Three sectors represent over 85% of exports from the province: forestry products (37%), energy products (32%) and food products (17%). • About 87% of New Brunswick’s exports are destined for the US market. Japan is next at 3%, followed by the United Kingdom, Germany and Brazil at 1% each. See tables 34 and 35. Inflation Jumps • The Consumer Price Index (CPI) for New Brunswick rose 3.3% in 2000, the largest annual increase since the introduction of the Goods and Services Tax (GST) in 1991, and more than double last year’s rate of 1.6%. Higher energy prices exerted the greatest influence on the increase. • New Brunswick’s inflation rate was above the Canadian average for the first time since 1997. • Consumer prices in the province rose in seven of the eight major components of the CPI. Transportation and shelter costs registered the largest gains, up 6.4% and 5.0% respectively. Clothing and footwear prices declined for the first time since 1995. • In 2001, the New Brunswick CPI is expected to increase at a rate similar to the national average of about 2.5%. See table 31. Retail Trade Growth Slows • New Brunswick retail trade increased 4.6% in 2000 following near record growth in 1999. Retail sales per capita in the province were $9,133 in 2000, above the national average of $9,013. • Double-digit sales growth was recorded for New Brunswick gasoline service stations, household furniture and appliance stores, and specialty clothing stores. There were sales declines for motor and recreational vehicle dealers, men’s clothing stores, women’s clothing stores, shoe stores and specialty food stores. • New motor vehicle sales declined slightly after a strong performance last year. In 2000, the value of new vehicle sales decreased 1.3% while the number of new vehicles sold was down 2.0%. • Wholesale trade increased 6.6% in 2000 following growth of 12.3% the previous year. • The retail trade sector represents over 7% of New Brunswick’s GDP and wholesale trade makes up another 6%. • Developments for 2000 include new stores for Sobeys, The Future Shop and Staples. Projects to be completed or started in 2001 involve Canadian Tire, Home Depot, Kent Home Improvement, Sears Furniture and Appliance and another Sobeys store. See tables 11, 29 and 30. Wages and Salaries Continue to Increase • For 2000, New Brunswick wages and salaries rose 6.3%, below the national increase of 7.1%. Changes in earnings, as well as employment, contribute to wages and salaries growth. • Growth was higher for the service sector (+6.5%) than the goods producing sector (+5.7%). • While all 11 major industry categories reported increases, four had growth over 10%: public administration; finance, insurance and real estate; utilities; and mines, quarries and oil wells. There was a significant increase in federal administration (+29.3%) due to pay equity payments in April 2000. • Over 70% of wages and salaries are captured in four industry categories: community, business and personal services (30.1%), manufacturing (14.7%), trade (14.5%) and public administration (11.6%). • For 2000, average weekly earnings for these categories ranged from $417.87 in trade, $478.65 in community, business and personal services, $667.22 in manufacturing, to $693.97 in public administration. Overall average weekly earnings were $553.77. See tables 9 and 14. Record Employment • Employment in New Brunswick reached a record high of 334,400 in 2000. The growth in employment was 6,000 or 1.8%. Nationally, the number of employed increased by 2.6%. • The majority of employment gains were registered in full-time jobs, accounting for 85% of all jobs in New Brunswick. • While employment increased for both males and females, two-thirds of the growth was attributed to gains in the number of women employed. Men represented just over 53% of the total employed. • The number of working youths (those 15-24 years of age) decreased from last year (down 800), while employment for the age group 25 years and over was up by almost 7,000. • New Brunswick’s participation rate rose for the fourth consecutive year in 2000. It reached 61.6%, closing the gap with the national average and recording the best performance since 1976. • Employment is projected to rise by more than 1% in 2001. See table 15. Goods Producing Sector Employment Stronger • The majority of New Brunswick’s employment gains in 2000 occurred in the goods producing sector (up 4,000), shifting from the service sector for the first time since 1997. • All five goods producing industries recorded employment gains in 2000. Manufacturing reported the largest increase (+1,800) followed by natural resources (+1,100). Employment in utilities was up 600, while agriculture and construction posted gains of 300 each. • Of the 11 service industries, the largest gains occurred in the management, administrative and other support industry (+1,800), and the health care and social assistance industry (+1,700). Three industries suffered job losses: other services (-2,800), information, culture and recreation (-1,200), and finance, insurance, real estate and leasing (-900). Employment in public administration was unchanged, while the remaining industries had gains of less than 1,000 each. • In 2000, the service sector employed 250,100 and the goods producing sector 84,300. See table 17. Unemployment Rate Continues to Decline • Employment growth outpaced labour force growth in 2000, causing New Brunswick’s unemployment rate to fall to 10.0%. Canada’s unemployment rate declined to 6.8%. Both unemployment rates were the lowest posted since 1976. • For the second year in a row, provincial unemployment stood at 37,300, the lowest number of unemployed since 1981. Nationally, unemployment fell by 8.4% in 2000. • Males, who comprise almost 60% of the unemployed in New Brunswick, saw their unemployment rate increase to 11.1% from 10.9% the previous year. Unemployment among females declined for the third consecutive year, with their unemployment rate falling below 9%. • Unemployment rates declined for people aged 20-44 years and rose for the other age groups. • New Brunswick’s unemployment rate in 2001 is forecast to fall below 10%. See table 15. Employment Growth in Most Regions • In 2000, four regions posted employment increases ranging from 700 in Edmundston-Woodstock to 3,100 in Moncton-Richibucto. The Fredericton-Oromocto region was the only area in the province to experience a decline, down 1,400. • Unemployment rates improved in both the Campbellton-Miramichi and Moncton-Richibucto areas, while those in Saint John-St. Stephen and Fredericton-Oromocto deteriorated. The unemployment rate was unchanged for Edmundston-Woodstock. • While the number of persons of working age increased in all five regions, those participating in the labour force did not. Higher participation rates were observed in four of the five regions. The Fredericton-Oromocto area saw its participation rate decline 1.4 percentage points to 63.6%. Campbellton-Miramichi, with the lowest participation rate among the regions, exhibited the largest increase (up 1.2 percentage points to 55.2%). See table 16. Population Growth Improves • As of July 1, 2000, New Brunswick’s population was estimated at 756,598, an increase of 0.3% from July 1, 1999. Canada’s population rose 0.8%, virtually the same rate as in the past two years. • Between July 1, 1999 and June 30, 2000, New Brunswick’s growth was estimated at 2,250, more than double the 927 during the previous 12-month period. Population growth has not been this high since 1991-92. • The number of births dropped to 7,659, while the number of deaths rose to 6,788. As a result, the natural increase of the population fell to its lowest level on record. • A considerable increase in the number of in-migrants from other provinces caused net interprovincial migration to record a positive result (+524) for the first time since 1990-91. International migration remained strong (+855), posting a fifth consecutive year of net gains. • New Brunswick’s population is projected to increase 0.1% in 2001. See tables 1 and 3. Aging Population • The median age of New Brunswick’s population reached 37.4 years in 2000, slightly above the national average of 36.8 years. • Population distribution continued to fall in the younger age groups, to 18.0% for children 0-14 years and 13.7% for youth aged 15-24 years. Young adults 25-34 years also exhibited a declining share, falling to 14.3%. • Persons aged 35-49 years, containing the youngest baby boomers, represented an increasing share of the total population at 24.7%. • The oldest baby boomers, who are in their early fifties, are starting to impact the growth of the pre-seniors group (50- 64 years). This is the most rapidly growing age group; it increased its share to 16.4% in 2000. • The proportion of seniors continued to grow, with young seniors (65-79 years) comprising 9.6% of the total population and older seniors (80 years and over) making up 3.3%. See table 2. Capital Investment Remains Strong • Capital investment in the province reached $3.6 billion in 2000, a decrease of 5.5% from last year’s record level. Nationally, investment increased 5.0%. • Estimates for 2000 show spending by the private sector, which represents over 75% of total investment, decreased 4.1%, while public investment declined 10.3%. • In 2000, construction activity continued on the Fredericton to Moncton four-lane highway project. The Irving Oil refinery expansion and the Saint John lateral pipeline were completed, and construction began on the natural gas distribution system. • Spending on construction decreased 7.9% to $2.3 billion, while investment in machinery and equipment declined 1.0% to $1.3 billion. • According to Canada Mortgage and Housing Corporation, housing starts in 2000 increased to 3,079, a gain of 10.9% and the highest level since 1994. • Construction industries account for about 6% of total GDP for New Brunswick. • For 2001, capital investment in New Brunswick is expected to be relatively strong at $3.0 billion despite the completion of major projects. See tables 11, 12, 13 and 27. Manufacturing Shipments Soar • The value of manufacturing shipments rose by 20.7% in New Brunswick in 2000, well above the national increase of 9.2%. • The group of miscellaneous industries1, which includes over one-third of total shipments, increased by 45.1% in 2000, mainly because of strong world commodity prices. Other significant increases occurred in the chemical products, fabricated metal products, machinery, printing and publishing, and paper and allied products sectors. • Employment in the manufacturing sector grew by 1,800 to reach 41,100 in 2000, a 4.6% increase. The sector accounts for almost 13% of total provincial GDP. • Construction of the $1-billion expansion at the Irving Oil refinery is complete. Other developments include construction of the $150-million textile plant of Atlantic Fine Yarns, the $70-million expansion of Atlantic Yarns, and completion of the $19-million toiletry products plant by Solutions International Inc. • Saint John’s Lantic sugar refinery closed after 85 years of operation and the shipyard’s last contract was completed in April 2000. There is a national initiative under way to help find solutions for the shipbuilding industry. • The anticipated slowdown of the American economy, combined with the softening of world commodity prices (most notably petroleum), will moderate growth of manufacturing shipments in 2001. See tables 11, 17 and 26. 1 The miscellaneous group of industries comprises diverse small plants as well as large producers such as the Irving Oil refinery, the Saint John shipyard and Brunswick Mining and Smelting. Wood Products Experience Difficulty • Hit by the some of the lowest prices since 1995, the value of manufacturing shipments of wood products in New Brunswick decreased by 2.6% in 2000. • Production of sawn lumber decreased by 2.7% for the year, dropping to 3.4 million cubic metres. • Demand for wood products was down in 2000, as shown by a 4.4% drop in US housing starts, which led to rising inventories and a sharp drop in lumber prices. • Wood products industries represent almost 2% of New Brunswick’s GDP. • Announcements of new investments include $12 million by Weyerhaeuser, $7 million by Nelson Forest Products and $6 million by Produits Forestiers Alliance. • Negotiations are under way concerning agreements governing Canadian lumber exports, which expire on March 31st, 2001. The Maritime provinces currently benefit from an exchange of letters between Canada and the US which provides free access to the US for our softwood lumber products. • Given the continued drop in US housing starts, market conditions for 2001 are not promising as prices are expected to stay low throughout the first half of the year. See tables 11 and 26. Paper and Allied Products Growth Robust • New Brunswick manufacturing shipments of paper and allied products increased by 27.7% in 2000 on the strength of good market conditions and strong world demand (US elections and Olympic Games). • The market for paper and allied products improved continually throughout 2000. Newsprint and pulp prices rose from the beginning of the year to reach their highest levels since 1995. • The paper and allied products industries account for roughly 2% of total provincial GDP. • There were several mergers and acquisitions in the pulp and paper industry throughout the world. UPM-Kymmene, one of the world’s leading manufacturers in the forestry and paper industries, bought Repap, including its Miramichi operation. • With expected capacity growth below historical trend levels coupled with strong demand, pulp and paper prices should remain favourable well into 2001. See tables 11 and 26. Mining Production Declines • In 2000, the value of New Brunswick mining production declined 6.8% to $791 million. Although zinc and copper prices were higher, the value of production for the metals sector showed a decline (-12.2%) with the closure of the Heath Steele mine. Production at the Brunswick base metals mine was slightly higher at 9,500 tonnes per day. The mine has about eight years of reserves at the present rate of extraction. Metals account for 66% of the total value of production. • The value of production in the non-metals sector was up 9.6%. The sector includes peat (+15.9%), potash and salt. Annual capacity at the Potash Corporation of Saskatchewan mine near Sussex includes 785,000 tonnes of potash ore and 650,500 tonnes of rock salt. Non-metals represent 26% of total production. Structural materials and coal contribute the remainder. • The mining, quarrying and oil wells industry represents over 2% of provincial GDP. • Exploration expenditures in northern New Brunswick were $8.2 million in 2000, up from $7 million last year, and focused on iron, zinc, lead and copper. In southern New Brunswick the focus was on other minerals including platinum-palladium, nickel-cobalt-copper, gold, antimony and base metal sulphide. • In 2000, a significant gas discovery was made northeast of Sussex and the extent of the reserves will be determined with additional drilling. Another development in the Moncton area involves testing wells for the commercial production of crude oil. • In order to address the challenges confronting New Brunswick’s mining industry, a study containing 27 recommendations for revitalizing the industry was released. See tables 11 and 24. Utilities Increase • For 2000, total electric power generation in the province increased by 1.4%, while total provincial usage rose 4.6%. • NB Power projects capital expenditures of approximately $50 million for 2001-2002, compared to $38 million the previous year. The company will spend $40 million to study the potential refurbishment of the Point Lepreau nuclear generating station, with a decision on the refurbishment expected in 2002. Also, plans are progressing for a second transmission line with New England to increase transmission capacity. • Bayside Power will be operational in spring 2001. The $180-million conversion of NB Power’s oil-fired unit at Courtenay Bay to natural gas was undertaken by Westcoast Energy. • Enbridge Gas New Brunswick is developing a natural gas distribution system in the province. Pipeline construction for the areas of Saint John, Moncton and Fredericton should be completed and ready for gas by spring 2001. Construction in St. George is complete. • Utilities industries (electric power, gas distribution and water) represent over 4% of New Brunswick’s GDP. • The province released a 10-year energy policy offering direction on the future development of electricity, natural gas and refined petroleum products. See tables 11 and 33. Technology and Communication Strengthen • In 2000, employment gains in technology and communication continued; growth of 3.7% was above the provincial average of 1.8%. This group accounts for 6% of New Brunswick’s GDP. • Customer contact centres employ about 12,000 people in the province. New developments for 2000 involved CIBC, CanJet Airlines, Cendant, ICT Group, Minacs Worldwide Inc., NBTel, The Spiegel Group, and Virtual Agent Services Inc. Planned expansions at many of these companies and the arrival of ClientLogic and Qualiflyer point to continued growth for 2001. • The National Research Council’s e-commerce institute in the province is progressing. The $37-million initiative includes the construction of a facility in Fredericton and connected activities in Moncton, Saint John and Miramichi. • NBTel is spending $230 million over 2000 and 2001 to develop broadband Internet services and an interactive television system in New Brunswick. The company will have 70% of the province covered with broadband service in 2001. Vibe, their high-speed Internet service, is widely available and VibeVision, an interactive Web-based TV service, is available in Saint John and Moncton. • In late 2000, Rogers Cable Inc. and Shaw Cable swapped some of their assets. Rogers Cable plans to spend $90 million during the next two years to upgrade the cable network in the province. Rogers AT&T will invest about $15 million to expand its wireless network by adding 21 new sites to existing infrastructure. See tables 11 and 17. Transportation Sector Expands • Employment in the New Brunswick transportation sector rose 4.2% in 2000, above the provincial increase. The sector accounts for 6% of total GDP. • Maritimes and Northeast completed construction of the $93-million Saint John lateral pipeline. Delivery of natural gas to industrial customers started in December 2000. • Overall tonnage at the port of Saint John was down 1.8% in 2000 compared to last year. Declines in potash shipments, sugar traffic, and salt were offset by increases in forest products and container cargo. More than 101,000 passengers visited the area on 67 cruise calls. Over the next five years the port authority plans to spend $14 million in its capital works and major maintenance program. • The port of Belledune was officially transferred from Transport Canada to the Belledune Port Authority in 2000. • Plans are under way to construct a new $18-million terminal at the Moncton airport with completion by August 2002. The Fredericton Airport Authority has completed negotiations to transfer the airport from Transport Canada to the local group. The deal includes upgrading the terminal and extending a runway. • WestJet Airlines started flights out of Moncton in 2000. CanJet Airlines will offer flights out of Saint John and Royal Airlines will operate out of Fredericton in 2001. See tables 11 and 17. Food Services Growth Higher • New Brunswick receipts of restaurants, caterers and taverns increased 12.8% to $653 million in 2000. The national increase was 7.5%. • New Brunswick hotels and other lodgings attained an average July-August occupancy rate of 80% for the third consecutive year. • Growth in employment and average weekly earnings for the accommodation and food services sector were each above the provincial average. Employment increased 3.2% in 2000 to 22,400 (representing 6.7% of total employment) and average weekly earnings grew 6.8% compared to 1999. • Accommodation and food services represents almost 3% of the provincial GDP, above each of the four primary sectors. • Tourism revenue in 2000 held steady at last year’s record level of $920 million. While total visitation fell 2.7%, there was a 4.5% increase in US overnight automobile visitation. Nationally, entries from the US were down 1.6%. See tables 11, 17 and 32. Primary Food Production Growth Overall • Farm cash receipts in New Brunswick declined 1.7% in 2000. Livestock receipts were up by 6.0% as livestock prices recovered. Crop receipts declined 9.4% due to a decrease in potato prices. • Overall landings in the commercial fisheries sector increased for a second consecutive year in 2000. Landings were higher for snow crab, shrimp (Gulf and Scotian Shelf), herring and lobster (Bay of Fundy). While prices remained much the same for most species, there was a slight increase for snow crab. • The production of farmed salmon increased to 25,000 tonnes (+14%) in 2000. The farm gate value rose 27% to $190 million. Other aquaculture products, worth $10 million, include mussels, oysters and trout. • Exports of agricultural and fishing products grew by 9.0% to $1.2 billion in 2000. • The agriculture and fisheries industries account for almost 2% of New Brunswick’s GDP. The food component of manufacturing industries represents another 3% of the total. • Farm cash receipts are expected to approach $400 million in 2001. Diversification efforts continue in fisheries and aquaculture. See tables 11, 19, 22 and 35.