Business groups have come out of the woodwork to urge the province to do more to address economic challenges
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Various industry groups wasted no time Wednesday issuing their wish lists to the newly re-elected NDP government, including an increase in the cap of the Employer Health Tax, the introduction of prompt payment legislation and more investments in Surrey infrastructure.
There was no immediate response from the NDP and the Finance Ministry told Postmedia News that it’s still in caretaker mode.
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Many of the asks came from the Greater Vancouver Board of Trade, which released an open letter Wednesday alongside the B.C. Chamber of Commerce, B.C. Business Council, Canadian Federation of Independent Business and several other industry groups.
The letter says the province has lost 12,400 manufacturing jobs since 2017 as well as 10,000 direct forestry jobs over the last four years. It states the private sector had almost no growth between 2019 and 2023, a situation the organizations call “unprecedented and unsustainable.”
Also raised by industry groups was the provincial debt, which, at almost $9 billion, is the largest in B.C. history.
“We are seeing stagnant economic growth, declining productivity, increasing costs and affordability issues,” said Bridgitte Anderson, CEO of the Greater Vancouver Board of Trade.
She says there are many ways the government can help reverse some of these trends, such as increasing the Employer Health tax to $2 million, exempting PST on business inputs, distributing innovation and investment grants, and streamlining permitting for major projects.
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At the same time, she said the province has been hamstrung by the size of the provincial debt and the closeness of the election means all three parties in the legislature will need to work together to get changes through the House.
“There still are concerns that it’s going to take too long to get things done. We have to get things moving in this province. We have to increase competitiveness. We have to increase our economic growth for investors,” said Anderson.
Premier David Eby said Tuesday he will have to wait for Election B.C. recounts before appointing a cabinet and a Speaker, and that any substantive promises requiring legislation will need to wait until the spring.
He said his priorities moving forward will remain affordability, public safety and health care.
“It’s not my intention to introduce legislation in the fall, but it is my intent, if we can, to have a sitting, get the Speaker elected and get the legislature working for people, as well to get a cabinet selected and sworn in so that we can start working straight away,” he told reporters.
His government has previously touted its work on the economy, including the addition of over 250,000 net new jobs since 2017 as well as increases to the minimum wage that have made it the highest in the country at $17.40 an hour.
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Other achievements promoted by the NDP include data showing it has grown the economy by almost 17 per cent since 2017, one of the largest growth rates in the country. The party also says it attracted $117 billion in capital investment across 2022 and 2023 alone.
Manufacturing and forestry aren’t the only two sectors facing challenges, with the construction industry also warning about labour shortages, increasing costs of doing business and payment uncertainty.
Chris Atchison, president of the B.C. Construction Association, told Postmedia he would love to see the province introduce legislation that ensures contractors get paid in full and on time. He said it’s something he has advocated for over the last number of years.
He said the association has done plenty of work with the Attorney General Ministry, including task forces and jurisdictional comparisons, and yet has still received a “lukewarm” response.
“I really feel that this is a missed opportunity in British Columbia, we see provinces to the east of us, most notably Alberta, Saskatchewan, Manitoba and Ontario, have all ushered in an era of payment certainty for the construction industry that they depend on,” said Atchison.
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“We’re trying to make sure that the building community in British Columbia stays healthy and robust, and it means a lot to the GDP of this province.”
The construction sector is also having to prepare for the completion of several marquee projects, including the Site C dam and LNG Canada. He said that while plenty of investment went into these projects, it remains unclear what is going to replace them.
According to statistics provided by the BCCA, the value of proposed major infrastructure projects has decreased by 20 per cent over the last five years, even as demand for housing, hospitals, schools and bridges grows.
There is also a shortage of workers, with the number of unfilled construction jobs expected to increase to 6,600 by 2033. That is 600 more than last year’s estimates for 2032.
“We’re facing an ongoing workforce shortage in all aspects of the construction industry, so everything from skilled trades people to people that are estimators and project managers,” said Atchison.
“We need to make sure our trades facilities have the seats, the spaces, the educators there to train that next generation. So when people are ready to take the training and to be introduced into the industry that our wonderful trades schools have the spaces available.”
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As part of his 2024 election platform, Eby promised to spend $150 million over three years to double the number of trade-apprentice seats offered by Skilled Trades B.C. from 26,000 to over 50,000.
One final problem area for the NDP when it comes to the economy is in Surrey, where the local board of trade is seeking greater investment in transit infrastructure and the city’s struggling health-care system.
Jasroop Gosal, interim spokesperson and policy and research manager for the Surrey Board of Trade, said the city has too long fallen behind cities north of the Fraser River when it comes to the availability of services.
“We’re hoping to see the Surrey-Langley SkyTrain built with expediency, and we’re hoping for the King George Bus Rapid Transit to be implemented and fully funded and built as quickly as possible as well,” said Gosal.
“We’re also hoping that they will work with the City of Surrey and the Surrey school board to build enough schools for our growing population.”
The Surrey-Langley SkyTrain has been delayed to 2029 from an original completion date of 2028 and will now cost $6 billion compared with an original budget of $4 billion.
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Garry Begg, NDP MLA-elect for Surrey-Guildford, told reporters at the legislature Wednesday he knows his party has work to do to repair trust in Surrey after an election where the NDP lost three incumbents in the city.
Begg’s seat is subject to a recount after he won the riding by 27 votes during the final count after being down 103 votes on election night. His victory is the reason the NDP are clinging to a majority.
“I always think of myself as a bridge-builder. I don’t build walls. I build bridges, and we have bridges to build here,” he said.
“We have issues in health care, we have issues in housing, children in schools, but that’s a job that we want to take on.”
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