News Releases and Op-Eds
Finlayson& Peacock Op-Ed: 15% property transfer tax should not apply to non-Canadians who move to Metro Vancouver for bona fide employment reasons (Business in Vancouver)
The way the government designed its property transfer tax scheme means that it will impose a stiff financial penalty on foreigners who locate here to take jobs.
The Lower Mainland’s frothy housing market continues to attract a great deal of media and political attention. In late July, the B.C. government responded to mounting public anxiety over soaring housing prices by instituting a 15% property transfer tax (PTT) on “foreign” purchases of residential real estate in Metro Vancouver. This measure predictably has raised the ire of the real estate industry, in part because it has captured, unfairly in our view, many in-process transactions that pre-date the effective date of the tax.
It is unclear whether the higher PTT will dampen housing demand. Initial evidence does point to some slowdown in the pace of real estate activity. The fact that foreigners have been responsible for at least 10% of all residential property purchases in the Vancouver region suggests that the new tax should have some effect.
Finlayson: Two reasons why average families in Vancouver can't afford housing (Troy Media)
Recent months have seen a politically charged debate over the causes and consequences of sky-high housing prices in Metro Vancouver. The pace of price increases has been unprecedented, particularly for detached homes, which in some parts of the region have more than doubled in value in five years.
Finlayson & Peacock Op-Ed: Business input vital to immigration system’s economic success (Business in Vancouver)
There are currently 4.7 million people living in B.C. Over the past 20 years, our population has risen by 908,000. Back in 1995, the population was growing at an annual rate of 2.8%, based on strong net interprovincial migration, international migration, and a relatively high rate of natural increase (births minus deaths). Now, the population is increasing by 1% annually, which is higher than the Canadian average but slower than in decades past.
In the next 20 years, our population is projected to expand by 1.14 million. Natural population growth dwindles after 2015 and approaches zero by 2030. At that point, B.C.’s population will be rising solely due to net in-migration from other provinces and countries. Of the two sources of in-migrants, international immigration will have a bigger role in determining B.C.’s demographic and economic future. Thus, it is more important than ever that immigration policy is aligned with our economic needs. Unfortunately, based on some initial actions by the Justin Trudeau government, it appears that economic considerations will carry less weight in immigration decisions.
Finlayson Op-Ed: Green energy future a long way off (Troy Media and The Province)
Some Canadian environmental groups claim the world is in the midst of a dramatic move toward carbon-free forms of energy. The implication is that Canada – one of the world’s largest producers of oil and natural gas – should quickly abandon the fossil fuel economy and quickly embrace renewable energy as the only pathway to a prosperous future.
Important shifts in energy production and consumption patterns are undoubtedly underway. However, the timing of any overall global energy revolution is likely to be considerably slower than many believe. Rising global energy demand, and the tens of trillions of dollars of embedded capital that underpin current energy production and consumption systems, are among the factors that stand in the way of rapid change.
D'Avignon Op-Ed: Trade deals, infrastructure, national climate framework key for B.C. business (The Hill Times)
Today, some 40 business, First Nations, and community leaders from British Columbia are in Ottawa. Here’s how we can work together with the federal government.
D'Avignon Op-Ed: LNG deals good for jobs, economy, climate (The Vancouver Sun)
Recent news that two agreements have been reached for the production and sale of made-in-British Columbia Liquefied Natural Gas (LNG) adds to the momentum of positive job and economic growth in the province. These export agreements also underscore the role that B.C. and our locally-based companies are playing in providing cleaner burning fuels to growing markets abroad as jurisdictions in Asia and elsewhere transition over time to lower-carbon energy sources.
British Columbia is home to some of the largest and most productive natural gas fields in the world. Since the late 1980s, we have benefited enormously from this resource in terms of jobs, investment and government revenue. For example, when natural gas prices were high in 2005-06, the provincial government collected enough gas royalties to fund the entire post-secondary education system.
RELEASE: BCBC supports NEB decision which provides pipeline safety, supports the BC and Canadian Economies
Thorough process provides next step in achieving needed market access
The Business Council welcomes the decision of the National Energy Board (NEB) today approving, with conditions, the Trans Mountain pipeline project.
“The approval of this project, after a long and thorough independent process – and despite opposition from some in and outside the province – is a positive development. The NEB carefully reviewed the technical, environmental and social evidence and concluded that the project is safe and provides important benefits for BC and Canada,” said Greg D’Avignon President and CEO of the Business Council of BC. “The Trans Mountain pipeline expansion is of vital importance to the Canadian energy sector – our country’s number one export industry. It is also important for BC, which depends on Alberta for transportation fuels and benefits from Kinder Morgan’s operations in this province through tax contributions, jobs and spin-off business for small and large companies.”
Finlayson & Peacock: Fastest-growing Industries Show BC's Deepening Economic Diversity (BIV)
Amid a weak global economy and extended downturn in many commodity markets, B.C.’s economy has held up surprisingly well. Two decades ago, a worldwide mining/energy slump would have delivered a major blow to the overall provincial economy. No longer. The Business Council estimates that B.C.’s economy expanded by 2.6 per cent (after inflation) in 2015, and that growth will reach 2.8 per cent this year. These are not barn-burning figures, but to put them in context, Canada will be lucky to punch out an annual economic growth rate of 1.6 per cent over the 2015-16 period.
Finlayson Op-Ed: B.C. needs to step up its game on innovation (Vancouver Sun & Troy Media)
The economic and business environment in which British Columbia operates is shifting. A number of trends are transforming the global economy in ways that can either help or hinder the quest for prosperity by countries and sub-national regions. The principal forces identified by the McKinsey Global Institute are: i) urbanization, particularly the rapid growth of cities in emerging markets; ii) accelerating technological change and the rise of the digital economy; iii) population aging and slower labour force growth; and iv) the onward march of globalization, via expanding cross-border flows of goods, services, finance, people and data – a trend that is heightening competition among jurisdictions for capital, talent and high-value business activity.
Council appoints leaders from province’s diverse business community to Board of Governors and Executive Committee
The Business Council of British Columbia is pleased to announce the appointment of Marcia Smith, Senior Vice President, Sustainability and External Affairs at Teck Resources Ltd. as the new Chair of the Business Council for a two-year term. At the 50th Anniversary Annual General Meeting held today, the Business Council also appointed several new members to its Executive Committee and Board of Governors, representing BC’s largest employers.
Statement from the Business Council of British Columbia on the devastation in Northern Alberta
The Business Council of British Columbia expresses our sincere shock and sadness at the devastation impacting Fort McMurray and neighbouring communities in northern Alberta. We stand with all Canadians in support of the families, workers and employers who have faced tremendous loss and challenge in this most difficult of times.
Peacock Op Ed: Consideration for Transit: More People are Settling in Surrey than any other B.C. City (Surrey Business News)
Which B.C. city has experienced the largest population increase since 2011? Most readers will not be surprised at the answer: Surrey. Between 2011 and 2015, more than 43,000 additional people became residents of Surrey, which translates into an average of 900 more people per month over the past four years. During the same period, the City of Vancouver recorded the second biggest absolute population gain of just over 29,000, followed by Coquitlam (+14,000), Richmond (+11,700) and Langley District (+10,600).
BCBC announces exemplary BC business leader as incoming Chair
The Business Council of British Columbia (Council) is pleased to announce Marcia Smith, Senior Vice President, Sustainability and External Affairs at Teck Resources Limited (Teck) as incoming Chair, to be appointed at the Council’s upcoming 50th Anniversary Annual General Meeting on May 12th. Ms. Smith is a recognized leader in BC’s business community and has been an active member of the Council’s Board of Governors since 2010 and a member of its Executive Committee since 2012.
Finlayson Op-Ed: Liberals step up state involvement, downplay role of enterprise in economy (Business in Vancouver)
Bill Morneau’s spending-heavy budget underscores two important shifts in the country’s economic and political landscape.
The first is Canada’s diminished economic prospects in an era of weak global growth and sluggish commodity markets. In the past two years, Canada has been buffeted by a substantial “terms of trade” shock, as the prices of our exports have fallen relative to what we pay for imports. Commodity prices, in particular, have plunged, a real blow for an economy that relies on natural resource industries for half of its exports and two-fifths of business investment.
BCBC Column: Budget 2016: What's in it for British Columbia? (Vancity Buzz)
Tuesday’s budget dips the country deeper into deficit to bring long promised support to lift up the middle class, First Nations, veterans and students. Although short on a clear path towards economic growth, the budget does offer some goodies that will compliment other efforts by the Liberal Government to advance innovation, infrastructure development and investment.
So – what’s in it for BC? Here’s a closer look at what yesterday’s budget means for you and the BC economy.
How far into the red are we going?
While no one likes to accumulate debt, with today’s record-low interest rates and when spent strategically to support economic growth, deficit spending can help boost an otherwise lagging national economy. It is also important to keep some perspective. The $30 billion in red ink that the Finance Minister is planning for each of the next two years should be seen against the backdrop of Canada’s $2 trillion economy. The federal government’s debt-to-GDP ratio is the lowest of the G7 countries. With that being said, the Business Council would like to see a strong focus over the medium term to bring the budget back into balance.
Modest plans for economic growth supported by significant increases in spending
Council urges government to keep an eye towards Canada’s long term fiscal health
Vancouver, BC – March 22, 2016 – The Business Council of British Columbia welcomes today’s federal budget, which provides a modest boost to a sluggish Canadian economy and signals a renewed focus on stimulating innovation and infrastructure investments.
With the government’s decision to run deficits over the foreseeable future leading to a significant increase in debt, fostering an environment for sustained economic growth is essential to ensure the debt is kept manageable relative to the size of the economy. The Business Council believes the government should aim to keep the debt/GDP ratio on a downward track over the course of the updated fiscal plan outlined in Budget 2016.
RELEASE: BCBC welcomes new Advisory Council on Economic Growth
p style="text-align: left;" align="center">Vancouver, BC – March 18, 2016 - The Business Council of British Columbia welcomes the Government of Canada’s new Advisory Council on Economic Growth and looks forward to the opportunity to contribute to a sustainable growth strategy for Canada’s economy.
In today’s environment of sluggish global growth and a widespread and significant downturn in commodity markets, Canada is facing long-term economic and fiscal challenges stemming from an aging population, lagging productivity and declining private sector capital investment. The Business Council remains focused on addressing the erosion of Canadian competitiveness and applauds today’s announcement by the government as a positive step to advance those efforts.
Finlayson Op-Ed: Commodity Slump weighing on Canadian and global economies (Troy Media)
The ongoing decline in the U.S.-dollar prices of most internationally traded commodity products has hit Canada’s economy hard, depressing incomes, triggering layoffs and capital spending cuts by hundreds of resource companies (and their suppliers), and hurting business and consumer confidence across swathes of the country. It’s important to realize that the commodity carnage isn’t restricted to oil. It’s also affecting natural gas, coal, base metals, potash, various industrial raw materials, and some segments of the agri-food sector. Lumber prices have also beaten a hasty retreat in recent months.
Finlayson & Peacock Op-Ed: British Columbia is out-performing most other provinces (Vancouver Sun)
Against the backdrop of slumping commodity markets and tepid global growth, British Columbia near-term economic prospects are surprisingly positive, creating a largely favourable backdrop for this week’s provincial budget. A recent Business Council report highlights some of the reasons why B.C. is doing better than Canada on several widely-cited performance metrics — including economic growth, job creation, retail sales, and housing-related investment.
RELEASE: Business Council Welcomes Budget Surplus and Commitment to Tax System Review
The Business Council welcomes today’s provincial budget and supports the government’s plan to generate modest operating surpluses over the next three years. The Council also applauds the government’s announcement that it will launch a Commission on Tax Competitiveness with a view to strengthening the tax base and improving competiveness for business operating and investing in British Columbia.