Blog 5: First Nation issue and the effects on business models
The article is about the argument raised by the First Nation chief, suggest why shouldn’t Harper Government accept the Union of BC Hydro’s $8-billion Site C hydroelectric mega-project, where the dam would be generating on the Peace River in northeastern British Columbia if it used.
Based on PEST analysis, this would be consider as a political factor to the different industries, since in this case if the project is approved by the supreme court and federal government, this it will intervene a lot into the economy for various industries, creating opportunity to some but threats to others.
First as mentioned in the article, the contraction of the dam would be on the Peace River, as argued by the First Nation, it will seriously damage the environment, including the farmland and natural habitat, which some will reduce the output of agriculture. But more importantly, the river will be occupied by the dam that people cannot fish there, this can significantly affect industries such as out-door activities and camping centers, as there are many provincial parks are established around the river, building a dam would be cause a lost in attraction site.
We can even further expand to other external factors, the environmental factor. With the dam destroying a large ground of farmland and natural habitat, it further affects these campsites, where these sites are becoming less attractive to people, causing fewer campers. If we extent the potential effects, it can affect businesses that provides these camping and fishing equipment, boat service perhaps and other camping services, since less people will be going to Peace River.
However, with the new hydroelectric, it provides new sources of energy and factor of product with bigger capital. Also mentioned in the article, with the Union of BC building this dam, it can help the economy development, as it help provide clean hydroelectric for oil, gas and mining industry, and meeting the demand of the growing population in that area, it will off-set or neutralize the damage caused by the construction of the dam mentioned by the First Nation, which considered both social and environmental factors, yet “demonstrating both a compelling and substantial governmental objective,” However, as argued by the panel, “the proponent has not fully demonstrated the need for the project on the timetable set forth.”
Despite the political conflict between the First Nation and Union of BC as there maybe a sense of intrusion of Aboriginal title lands, both sides supports renewable energy sources such as solar power and wind power, from this environmental factor, the economy can expect there will be more government subsidy on improving technological factor of renewable energy. However, in the matter of the hydroelectric dam, despite that lawyers suggest the likelihood of building the dam, it is still very hard to determine whether the project will pass through or not under the intensive political conflict between the two sides.
Reference:
O’Neil, Peter. “First Nation Chiefs to Stage Site C Showdown.”Www.vancouversun.com. N.p., 18 Sept. 2014. Web. 04 Oct. 2014. <http://www.vancouversun.com/news/First%2BNation%2Bchiefs%2Bstage%2BSite%2Bshowdown/10215965/story.html>.