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Business and the 10-Year Plan

January 2nd, 2008

by Wayne Stewart

Labour shortages and lack of affordable housing are two sides of the same coin

Illustration by Amie Cunningham

On October 29, 2007, Premier Stelmach announced the creation of an Alberta Secretariat for Action on Homelessness. Its mandate: Develop a strategy to end life on the streets in 10 years.

One might wonder why, in a province with such enormous wealth, anyone should be without a safe, secure home. This economy is hot enough that we assume everyone could at least meet their needs for food and shelter. And even though house prices and rent are increasing significantly, surely salaries must be keeping pace.

The facts suggest otherwise. While many Albertans prosper from good economic times, more and more people can’t keep up. Many continue to work for salaries that simply do not cover basic needs.

The face of homelessness is changing. We see people with jobs, like Jack, new to Calgary, working full-time as a drywaller at $25 per hour and “sleeping under a tree.” We see mothers with children, falling into homelessness after fleeing domestic violence. Now these families have no choice but to sleep in a different church basement every night. In both cases, rising rents outpaced their incomes. These once temporary transitions are lasting longer than ever.

People who provide services and shelter to those in need see the devastating impact every day. We witness growth of up to 20% each year. The situation has reached crisis levels in all major cities and is spreading to Alberta’s towns and villages. In Calgary, the number of people in shelters and on the street in 2006 was 3,400. In Edmonton, 2,600. In Lethbridge, the homeless population doubled from 2005 to 2006. Even in booming Fort McMurray, oilsands workers resort to shelters because they are unable to find affordable housing.

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The impact on business increases with the homeless count. Alberta’s labour shortage is a result of the lack of affordable housing. This is a particular problem for the retail and fast-food restaurant trade where we see advertisements for workers every day. It is a growing concern for builders who require seasonal workers. The situation will get worse until we have housing that these
workers can afford.

Recently, we have seen an exodus from our cities. People are returning to whence they came – places where housing is affordable even if jobs are less plentiful. The impact of workers who stay and struggle with inadequate resources may be less visible but equally profound. The stress that comes from having no home affects physical and mental health. Ultimately, it affects productivity and morale. Business not only has a huge stake in this issue, it has a huge motivation to solve it.

This growing problem requires a long-term plan and a commitment to ending homelessness. Simply managing the issue doesn’t work. While the concept of a 10-year plan is new to Alberta (Red Deer and Calgary were the first cities in Canada to fully adopt the concept), it exists in over 300 cities in the United States. Initiatives already underway in New York, Portland and Minnesota provided a model from which the two Alberta cities drew ideas.

Of course, solving the problem will require financial support from government and efficient provision of services by the not-for-profit sector. But the private sector must also participate. Providing housing to employees in need would be a benefit that distinguishes the good employer. Builders, for example, could include an affordable housing component as part of their condo developments.

People who live without homes want a better future. They want to work, to provide for their families, to contribute to society. This requires a safe, secure place to call home. With that comes opportunity. Businesses can and must help.

Ending homelessness will require additional affordable housing, more treatment facilities and transitional housing. Support services must also be available in sufficient quantity to help people live independent, productive lives.

Premier Stelmach has taken an important first step in creating the Secretariat and in committing to a long-range plan to end homelessness. Still, all Albertans must be involved.

Our hope is that the 10-year plan stirs everyone to action. Ending homelessness will be difficult. The issue is extraordinarily complex, but for moral and economic reasons, we must end it. Anything less will just not do.


Between the Lines is a guest column about current affairs topics that touch on business in the province. Wayne Stewart is president and CEO of the Calgary Homeless Foundation.


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