Good morning and thank you, Mr. Chair and members of the committee, for this invitation to appear and share a community perspective on this global issue. Certainly it's going to be different from the ones you've heard before.
The Regional Municipality of Wood Buffalo consists of 10 communities in 66,000 square kilometres in northeastern Alberta. We are home to five first nations, several Métis locals, and many different nationalities, with over 156 different languages spoken in the homes of our school population.
In the 2012 census we identified a resident population of 77,000 and some additional 39,000 guest workers who live on-site in project accommodations. They come from all over Canada to work in the oil sands and then take their paycheques back home, wherever that is, and that brings our population up to about 116,000. We are well educated and earn an average household income of about $190,000 per year. Unemployment is at 3.8%, and yet there is a notable wage gap. The average age is 32, and just over half of our citizens are under the age of 35. In fact, over the last five years, our local hospital has delivered anywhere from 1,100 to 1,400 new babies each year.
Ladies and gentlemen of the committee, when I say that we've seen this before, what I mean is that we've seen variations of this before. When our region experiences a downturn, we find a way to take advantage of that.
In mid-2008 we had our first breather since the rush of new oil sands development took hold a decade before. We had a chance then to catch up, a chance to plan, and a chance to get ready for what was coming next. What came next was a very busy rebound.
Even today we have $21 billion in oil sands projects that are already approved, $4 billion that are in various forms of construction, and another $26.5 billion in applications, yet that capital spending pales in comparison to what these companies will spend in operations over the life of each of those projects. Each and every year forward, that combined value will go up from the approximate $5.3 billion that it was in 2012.
On the ground, people are still working and living normal lives. They're going to doctors and taking kids to sports, arts, and anything else that kids will do. They are still getting groceries, going out for meals, and even travelling, though they may be more carefully considering large purchases like cars, trucks, or RVs.
Businesses vary, and those that have exclusive ties to industry are further constrained and being asked to do more with less. There have been layoffs, but local businesses are in fact still hiring.
The non-profit sector has long been familiar with doing more with less, but now it is strained even further. Our food bank use was up 75% this January over last, and our February numbers are worse. Thankfully, we're a community that cares, and we will be able to overcome these challenges.
My council approved the 2015 budget with the expectation that we would not need to raise taxes. Four months later we are revisiting the capital projects and discretionary spending to ensure fiscal prudence in changing economic times. Our local economy and the contractors within certainly do need projects to bid on. In times like these, it's how we help keep people working, and Canada's investment in infrastructure helps us keep these projects on our books and those people working in our communities.
Our community is really still just catching up from the more than doubling of our population since the year 2000. The work is real and it is truly needed, and so is the need to curb inflation, reset expectations, and achieve greater efficiency in the industry, but experience tells me that it is really hard to predict the price of oil in either direction. From a community perspective, the rapid upswings can be even more difficult than what we're currently experiencing.
While these are challenging times, there remains a great deal of confidence in our local community. We take a long-term view and we remain optimistic that we will see a rebound someday and that we will once again change our economic outlook and activities.
To conclude, I believe that the need for energy will never cease. I believe that the oil sands will remain an important contributor in satisfying global demands. I know humanity must adapt and innovate in an ever-changing world. I also know that we must work together to ensure that my home, my community, and my people are able to survive, thrive, and prosper for ourselves and for our nation.
We've come through darker economic days of our past even stronger than before, and I believe that we will do that again this time, too. Believe me when I tell you that you simply have to see this place before you believe anything at all about it.
Thank you very much for the opportunity. I certainly look forward to any questions.