Forbes, Alex M., "The Economic Impact of the Closure of Canadian Forces Base Summerside"

The federal government's recent announcement to close or reduce 14 Canadian Forces bases and stations throughout the country has left a number of communities surrounding these military facilities with an uncertain future. One of the largest military facilities to be closed was Canadian Forces Base Surnmerside, located near Summerside, Prince Edward Island. The closure of this military facility not only represents a serious loss to the local economy, it represents a significant loss to the regional and provincial economy.

Community leaders faced with a major contraction in their economy have to be able to respond to the loss of a major industry and accept the responsibility of pursuing new economic initiatives that will provide continued growth and stability for the area. In order for local decision makers to undertake such a challenge, they should understand the local and regional economy. Hence municipal leaders will increasingly wish to know fairly accurately the multiplier effect of a particular type of economic activity in their community so that they can influence their industrial development. Policy makers at both the provincial and federal levels of government will also want to understand the dynamics of an economy so that they can make informed decision with regard to evaluating public projects in which regional development benefits are an important component of the analysis.

The main focus of this study is to measure the economic impact of this base closure on the local economy, the surrounding region and the province as a whole. Input-output analysis is the methodology employed to determine the loss of, inter-industry sales, gross domestic product, and person years of employment. This methodology also reveals the indirect and induced economic multipliers associated with CFB Surnmerside spending and employment. The results of this study are intended to assist those decision makers involved in restoring the economic health of the Town of Surnmerside and surrounding communities. It is up to these individuals to assess the impact of this base closure and plan for a future without the annual injection of military expenditures.

Atlantic Planners Institute

This page and all contents are produced by the Atlantic Planners Institute, an affiliate of the Canadian Institute of Planners.

This document was last modified on January 3, 2001.