Winnipeg Free Press

Winnipeg Free Press (Newspaper) - April 10, 2024, Winnipeg, Manitoba B5 WEDNESDAY APRIL 10, 2024 ● BUSINESS@FREEPRESS.MB.CA ● WINNIPEGFREEPRESS.COM BUSINESS Manitoba would benefit from co-ordination on AI sector front A S if it wasn’t a big enough chal- lenge for society to figure out how to use artificial technology without leaving casualties in its wake, a recent headline from Bloomberg News proclaimed: “AI is exploding data centre energy use.” It’s another example of how so much more needs to be learned about how to work with AI. The recent announcement by Prime Minister Justin Trudeau that $2.4 billion will be put aside in next week’s federal budget to provide access to computing capabilities and technical infrastructure to build capacity in Canada in the AI space was welcomed by its practitioners across the country. Perhaps unlike the previous steps taken in the development of the digital economy — software development hubs or silicon chip manufacturing — AI deployment does not have to be concentrated in any particular place. It’s easy to imagine that every sector of the economy — every sector of soci- ety — will somehow be affected by AI. That’s already happening. But it’s also not hard to imagine the effectiveness of the deployment will be spotty and some jurisdictions will emerge as being more comfortable and confident in their approach than others. Manitoba has its share of academ- ics, large corporations and innovative entrepreneurs already exploring AI, so that shouldn’t preclude it from keeping pace. But Manitoba is a small place and the effective use of AI to increase productivity and sustainability proba- bly would benefit from co-ordination. The province already has some leading-edge collaboration work being done in AI in agriculture — an economic sector in which Manitoba is already a recognized leader. Enterprise Machine Intelligence & Learning Initiative (EMILI), a not-for- profit organization, collaborates with more than 20 entities at a working farm (Rutherford Farms, near Grosse Isle) that tests and validates new AI technologies at commercial scale. Jacqueline Keena, managing direc- tor of EMILI, said it’s the kind of work that will be an important contributor to the success of technology adoption. “Because we are showing how it ac- tually works,” she said. “We are actual- ly trying it at a full-scale capacity then we are talking about it very openly in a public way, in a detailed way to an expert audience. “We are risk-mitigating on their be- half. We are taking that first step.” EMILI has been around since 2016. Before its Innovative Farms project began, Keena and the EMILI team had to spend a lot of time talking about just what AI is. They are past that now, and she said the federal government’s AI funding announcement is “an exciting and nec- essary investment to ensure Canada’s global leadership in developing and harnessing the potential of AI.” Among other things, there will be a $50-million investment in an AI safety institute, something Keena is also particularly keen on as she chairs the AI technology and jobs committee of the Manitoba premier’s business and jobs council. At EMILI, they are thinking about issues such as nefarious use of the technology and awareness of the potential for job displacement, Keena added. “I’m not necessarily pointing at regulations, but I am thinking about standards and best practices and things like that.” For those concerned about the potential for AI to destroy society, it is heartening organizations like EMILI are thinking seriously about the issues. However, there are some who worry about Manitoba’s propensity to sit on the sidelines while new technologies are introduced elsewhere, waiting to see how they play out. Kelly Fournel, CEO of Tech Manito- ba, regularly has to deal with that par- ticular type of Manitoba conservatism. However, AI is creating change at a much faster pace than previous itera- tions of the digital revolution, she said. “A year ago, ChatGPT wasn’t even a thing,” Fournel said. “To see how it has already made such strides in impacting organizations and how they internally work, we can only imagine what is going to happen in two, three, five years time.” There is amazing work being done in Manitoba in the AI space, but there’s not a lot of co-ordination, she added. In 2022, Tech Manitoba and others developed an AI road map of sorts that was presented to the province, with the suggestion a dedicated co-ordinator be assigned to bring it to life. The idea was rejected. “The hesitancy I have in terms of my overall enthusiasm for the potential for AI is because, at this point, we have not been able to engage either the current (NDP) or previous (PC) administration in terms of understanding the urgency of needing to be strategic about it,” Fournel said. That’s not to say the provincial government elected last year won’t come around. But it could be folly for Manitoba to this time rely on others to do the groundwork on something that is clearly going to impact us all in ways we haven’t even imagined. martin.cash@freepress.mb.ca MARTIN CASH S&P downgrades B.C. credit rating NEW YORK — British Colum- bia’s credit rating has been down- graded by S&P due to concerns big spending by the provincial government could lead to “out- sized” deficits and lower internal liquidity levels. S&P Global Ratings says it lowered the rating for the prov- ince and BC Hydro’s provincially guaranteed unsecured debt from “AA” status to “AA-minus.” The global finance corporation says B.C.’s 2024 budget outlined a plan for investment and spending at “record levels,” which it says will lead to after-capital deficits of more than 15 per cent of total rev- enues until the 2027 fiscal year. Another global ratings agency, Moody’s Investors Service, separ- ately revised its outlook for B.C. to negative Tuesday. B.C. Finance Minister Katrine Conroy says factors such as the slowing global economy may also have played a role in the S&P ratings drop, but other assessors such as Fitch Ratings have found B.C. to be on stable fiscal ground. S&P says in its decision to downgrade the province the com- pany may lower the rating fur- ther “if B.C. maintains its current fiscal trajectory,” and a reversal is needed along with stronger economic growth for the outlook to be revised to stable. It says the province’s commit- ment to fiscal discipline and sta- bility have “wavered” recently as B.C. increases spending on oper- ations and capital investment to what S&P calls “unparalleled lev- els” amid slowing growth. “Considering B.C.’s focus on taxpayer affordability and on capital investment when eco- nomic growth is weakening, we expect that the province’s fiscal performance will materially de- teriorate in the next two years.” Opposition BC United finance spokesman Peter Milobar says in a statement the “dual down- grades” by Moody’s and S&P “are a clear sign of the NDP’s fiscal mismanagement.” “Each downgrade under the NDP brings higher taxes and tighter budgets for British Colum- bians. The result is higher costs for loans, as (Premier) David Eby’s policies drain our wallets,” he says, calling the downgrades “a wake-up call.” BC Conservatives MLA Bruce Banman says S&P’s lower rating reflects the firm “losing confi- dence” in the NDP’s ability to manage the province’s finances. Conroy said the capital invest- ments noted by S&P were needed because the NDP government “in- herited a deficit of infrastructure” from their Liberal predecessors, now known as BC United. “What we know and what we’ve been telling investors is that we in- herited a deficit of infrastructure when we formed government,” Conroy said in the legislature. “We have had to build hospitals. We have had to build schools. We have had to build roads. We have had to make housing a priority be- cause of what we inherited.” — The Canadian Press JOHN WOODS / FREE PRESS Amber Wilson and daughter Mia, residents of Pineridge Village Mobile Home Park, walk Tuesday beside the proposed site of a pharmaceutical hub northeast of Winnipeg. Birds Hill-area residents, company pitching pharma facility clash over lingering questions Manufacturing dissent A FIELD near Birds Hill Provincial Park has become a battleground over a proposed pharmaceutical manufacturing facility. Last week, residents near the site northeast of Winnipeg received notice of plans to build a factory for injectable emergency and non-emergency drugs. For some, it’s mere steps from their home. They rallied. In less than a week, more than 1,100 people had signed a pe- tition in opposition. Meantime, Mittal Canada is asking locals to give it a shot. “This is something we need in our Manitoba,” said Jacky Maan, a real estate agent and spokesman for Mittal Canada. “There’s nothing (like this) in Manitoba. We are lucky if we have something like this.” The business seeks to make five types of injectable drugs at the rural site. However, nothing is final, Maan stated Tuesday, declining to identify the types of pharmaceuticals Mittal Canada is considering. The facility won’t manufacture any chemicals. Staff in the proposed Rural Municipality of St. Clements facility will use imported chemicals to cre- ate injectable drugs, which will be packaged on site before being shipped throughout North America, Maan said. Mittal Canada is the parent company of three Manitoba businesses which con- duct dental surgeries. It also has a Brit- ish Columbia presence, Maan said, de- clining to identify the local companies. This would be the corporation’s first step into manufacturing. It’s seeking 20 acres of land, though its initial site plans are much smaller; it’s mindful of future expansion, Maan said. A parcel of land roughly four kilo- metres away from Birds Hill Provin- cial Park is ideal, Maan added. It’s close to Provincial Trunk Highway 59 and Winnipeg, and has the necessary space. Mittal Canada is in talks with several municipalities — “Nothing is final yet,” Maan reiterated — but neither Winni- peg nor CentrePort Canada seem to have the space required, he said. Twenty acres would allow for buffer room between the proposed plant and established houses, he added. Mittal Canada advertises a $120-mil- lion investment into the site and the ability to create upwards of 1,000 jobs in the area. Area residents, however, have a lot of questions — and simmering anger. “Why is this all hush-hush, and then all of a sudden, ‘Oh, let’s spring this on you?’” said Roger Sherman, who has a lung condition and is worried about pol- lution. The 64-year-old said he was shocked when a flyer outlining the potential development reached his mailbox. He had moved to Pineridge Village Mobile Home Park last year; it is his retire- ment spot. The proposed facility had him wonder- ing if he’d be kicked off his lot. Would there be smells associated with the fac- tory? Will there be increased crime? He’d gotten no real answers Tues- day, Sherman said. He couldn’t get into an April 4 community meeting on the issue; the building was full. “If we would’ve known last August, we sure the hell would not have bought (the lot),” Sherman said, standing along- side his wife. Neighbours echoed Sherman’s stance and his unanswered questions. Jerry Drobot, a former St. Clements councillor, wondered about traffic. There aren’t traffic lights at Hwy. 59 and Dunning Road East, where Pineridge Village residents often cross. Nicole Goossen, 30, began an online petition against the proposed facility. It hit 1,110 signatures within a week — there’d been a “feeling as if we were out of control,” she said. “They’re saying this is the pristine location, but I know other locations exist,” Goossen said, pointing to indus- trial space in Lockport and Deacon’s Corner. “It’s the wrong location.” Air, water and noise pollution top her list of concerns — locals drink well water and Birds Hill is nearby. “I just don’t understand how they cannot think about people and the wildlife.” Some locals the Free Press spoke to, however, knew almost nothing about the proposed development. Maan said he answered such ques- tions at the April 4 community meet- ing; the company doesn’t “want to do anything under the table.” Mittal Canada will create its own well and water treatment centre, unless the municipality’s lagoon has capacity and is offered. Wastewater will go into a hold- ing tank and be reused, he said, adding the building would output “clean steam.” Mittal Canada plans to build its own roads to its facility. Drug creation takes a long time, and to start, the company will be “lucky” to have one large truck per week packed with product, he said. Maan likened the proposed site to a hospital lab, more than a manufactur- ing facility. Scientists, doctors, medical representatives and machine techni- cians would fill the space, he said. The corporation will not touch the privately-owned Pineridge Village and hours of operation would likely be a typical 9 a.m. to 5 p.m. on weekdays, Maan continued. He doesn’t expect the plant to emit no- ticeable smells or noise. Mittal Canada won’t build housing on site, he added. All the plans are preliminary — there are several government approvals to go through, and construction would likely take two years, Maan said. Deepak Joshi, St. Clements chief ad- ministrative officer, declined to com- ment on the proposed facility. A formal application hasn’t been sub- mitted to council. Only after an appli- cation has been reviewed and assessed will the RM address queries, Joshi said. Maan argued home values in the area would increase. Residents felt otherwise. “We, as a community, would love to see jobs… and we’d be happy to drive to it,” Goossen said Tuesday morning. “It doesn’t have to come to our backyard.” gabrielle.piche@winnipegfreepress.com GABRIELLE PICHÉ ;