Thank you, Chair. Thank you to our witnesses. I find this incredibly engaging, trying to understand what the indicators are showing us.
I want to clear something up first, and it was a bit of a C.D. Howe fight that I think we had going on here, or “debate” is what I meant to say.
In your report, Mr. Ambler, I think you talked about this and I want to compare it to what Mr. Cross said about the time it takes for the impact to be felt on natural resource industries.
Mr. Cross, broadly speaking you said that the natural resource sector doesn't react to a price change like this in the most immediate and quick turnaround.
But in your report, Mr. Ambler, there was a consensus that:
In other words, the negative impact may be faster than traditional models would predict because companies are quickly adjusting their capital plans.
I don't know if there is a contradiction, but just in your testimony today, Mr. Cross, you talked about there being a slower tendency within the natural resource sector to come off of certain investments.
Mr. Ambler, the consensus out of the economists you spoke to talked about this particular uniqueness of the sector, being able to ratchet back much quicker, and feeling those negative impacts faster.
Am I reading what you said right, Mr. Cross, or am I getting it wrong?