Canada’s federal government is responsible for many policies that matter for BC’s business community, including taxation, immigration, innovation programs and employment insurance. The Council provides regular recommendations to the federal government to ensure that the nation’s top decision makers consider BC’s unique economic priorities.
A Snapshot of Government Debt Across the Land
The start of the 2014 government budget season is an opportune moment to update the figures on accumulated public sector debt for Canada’s ten provinces as well as the national government.
Federal Budget 2014 -
Following Through: No Surprises Federal Budget Moves to Surplus
Getting back to surplus remains the cornerstone of federal budgeting. With the deficit having swelled to more than $55 billion in the aftermath of the 2008-09 Great Recession and Financial Crisis, Finance Minister Jim Flaherty delivered a budget that has the government on the cusp of returning to the black. This is an admirable accomplishment, one achieved without any significant tax increases and involving a hefty dollop of restraint after spending had been ramped up during and after the recession.
Submission: Letter to Honourable James Moore re Telecommunications Policy
Correspondence sent on behalf of the Business Council's membership on a matter of national significance, and of considerable importance to British Columbia, pertaining to telecommunications policy, and specifically the regulatory framework for the sector which recently has been under review by Industry Canada.
Let's Tax the Rich - Oh, We Already Do
Last week’s budget offers a timely reminder of something that many Canadians may not realize: a surprisingly large proportion of federal government revenue comes from the personal income tax (PIT). The second biggest revenue source is the corporate income tax, followed by the GST. According to the budget, in the upcoming fiscal year Ottawa’s PIT revenue will reach $131.5 billion, which amounts to half of all of the money collected by the national government.
Who pays the personal income tax? Most Canadian households except those with quite low incomes generally pay something. But an examination of data recently released by the Canadian Revenue Agency indicates that the PIT burden falls mainly on the most affluent families. Consider the following summary statistics:
2013 Federal Budget: A Combination of Following Through, Fiscal Restraint and Some New Funding for Priority Areas
Against a backdrop of softer economic conditions, Finance Minister Jim Flaherty tabled a budget still centered around achieving the Conservative government’s 2015-16 balanced budget target. To meet that objective, the Budget imposes meaningful but not draconian spending restraint. In turn, this left little capacity for much in the way of new spending or tax relief. The Budget does, however, direct additional funding to a few priority areas such as skills training and infrastructure investment.
Presentation: Federal Budget 2013 KPMG Breakfast
Economic outlook presentation by Jock Finlayson to the KMPG Federal Budget Breakfast, March 22, 2013
News Release: Business Council Supports Plan to Balance Federal Budget and Focus on Skills Training
March 21, 2013 (Vancouver, BC) —The Business Council of British Columbia welcomes today’s Federal Budget with its focus on skills training, infrastructure investment, and measures to strengthen the competitiveness of the manufacturing sector in BC and across the country.
“Today’s budget strikes the appropriate balance between fiscal stability and meeting the Federal government’s commitment to eliminate the deficit by mid-decade. We also endorse the new initiatives intended to expand access to skill training and apprenticeships,” said Greg D’Avignon, President and CEO of the Business Council of British Columbia. “Balancing the budget in a timely manner is important to Canada’s competitive position. We believe that the government’s approach of protecting transfers to individuals and provinces, while looking for additional savings in its own operating expenses, makes sense.”
Finlayson: Rethinking Canada's anti-big business tax policy (Troy Media)
Canada ranks as one of the best places in the world to start a new business, according to an annual survey by the World Bank. But the country does less well in encouraging businesses to grow – and in generating private sector innovation.
The two phenomena are linked: an economic environment that supports business growth should also produce a high level of innovation, since growth-oriented companies are more likely to adopt innovative business strategies.
In thinking about these issues, Canadian policymakers would be wise to focus on the outsized economic contributions made by the sub-group of rapidly-growing small- and medium-sized enterprises. A 2010 study by the Kauffman Foundation for Entrepreneurship estimates that, in a typical year, the top-performing five per cent of American businesses – measured by their rates of employment growth – create two-thirds of all new jobs. And the top one per cent of firms are responsible for a remarkable 40 per cent of net new jobs.
News Release: Business Council Supports Government Announcement and Process to Sell Ridley Terminals Inc.
The Business Council of British Columbia, representing the province’s leading companies and institutions in every key sector of the provincial economy, today announced it’s support for the federal government’s decision to sell Ridley Terminals Inc.
“The Government of Canada’s announcement to sell Ridley Terminals Inc. represents the fulfillment of a commitment to divest Crown assets that can be more fully and effectively utilized in the private sector. The decision is good news for Canadian industry and should help to grow our economy going forward,” stated Greg D'Avignon, President and CEO of the Business Council of British Columbia. “We applaud the federal government for taking another in a series of recent steps to make Canada more competitive and to lay the foundations for future economic prosperity through global trade and investment.”
BCBC Statement regarding Canada's decision on foreign investment
The Business Council of British Columbia today welcomes the decision by the federal government in the purchasing processes involving Nexen Inc. and Progress Energy. While we will need to review the conditions in greater detail, we believe this decision sends a positive investment signal and balances the important need for capital investment with a net-benefit framework that advances the interests of all Canadians.
Canada's Economic Immigration Program to be Transformed
The Conservative government is embarking on a major overhaul of Canada’s economic immigration program. The new approach will give employers a greatly elevated role in the immigration process and hopefully reduce lengthy delays that have long plagued the immigration system. If it runs as anticipated, the revamped program should help deliver skilled immigrants to sectors and regions of the country where they are needed – and do so faster.
Jock Finlayson: The centre of economic gravity is tilting (Vancouver Sun)
The rise of China and other emerging economies is having a profound impact on the international economic and political order established by a handful of Western countries at the close of the Second World War. Collectively, the emerging economies of Asia, the Middle East, Latin America and Africa will soon account for half of world production and consumption. They have also driven most of the growth in the global economy since the mid-2000s. One area where emerging economies are making a notable difference is the pattern of foreign direct investment (FDI). Long viewed solely as destinations for FDI by Western-based multinational companies, some emerging economies have become important sources of investment into the U.S. and other advanced country jurisdictions.
Changes to the Fisheries Act - The Sky is (Not) Falling
Recent changes to the Federal Fisheries Act had been the subject of considerable speculation until the Harper Government’s 2012 Omnibus Budget Bill was tabled earlier this year confirming the details of the proposed changes, some of which became law on June 29, 2012.
The Business Council’s latest Environment and Energy Bulletin clarifies some of the misconceptions about the changes to the original Act, which is nearly 100 years old, and outlines what these changes mean for the business community.
Canada Joins the Trans-Pacific Partnership
Canada is now actively negotiating for a formal spot in what many expect will become the world’s most exciting modern trade agreement – the Trans-Pacific Partnership (TPP). This is good news for British Columbia; as the country’s Pacific province we have more to gain than most other provinces. The benefits of the TPP could include increased exports to Pacific Rim markets, a boost to the local tourism sector and the development of stronger business-business and people-people connections between our province and fast-growing Asian economies. This partnership, however, is about more than trade. It will set a course for how nations manage future economic relations with China and there will be challenges for Canada along the way.
Submission: Provincial Government's Expert Panel on Business Taxation
In response to the provincial government's request for input, the Business Council of British Columbia is pleased to share our views with the Expert Panel on tax measures that could be implemented to strengthen BC’s economy and competitive position as the province shifts from the HST back to the dual PST/GST system. The Panel is familiar with the benefits of the HST, and the many reasons why economists and public finance scholars almost universally see value-added taxes like the HST as an important and useful element in the revenue mix for governments.
Public Sector pensions are sure to be reviewed
By Jock Finlayson, Executive Vice President and Chief Policy Officer, Business Council of British Columbia
With governments across the country addressing budget deficits pushed higher by the 2008-09 recession, attention is turning to the pay levels of employees in the public sec-tor and how these compare with private-sector practices.
The Impact of Canadian Environmental Regulatory and Approval Regimes on Business Competitiveness
Environment and Energy Bulletin v4 n3
The global economic environment remains challenging, as Canadian firms and industries address the need to be competitive and maintain jobs and investment in the country. For Canada, one positive trend is the rise of Asia in the global economy. Today, Asia as a whole accounts for more than 35% of global output, and the figure is expected to approach one-half by 2025. Some analysts believe that sustained growth in China and other emerging economies in Asia (and elsewhere) will fuel a prolonged “up-cycle” for many internationally traded commodities, as rapidly expanding middle class populations in these nations enjoy steadily rising incomes and businesses and governments there invest to build infrastructure, factories, and other fixed assets.
Submission: Development of a National Conservation Plan
Business Council submission to the Parliament of Canada's Standing Committee on Environment and Sustainable Development regarding the development of a national conservation plan for Canada. It is the Business Council’s view that the policy context, objectives and processes for identifying future conservation and protected areas is firmly entrenched within the current policy and regulatory construct in BC, and is also supported by public values. When existing federal programs are added to the mix, we do not see a need for another federal government framework or plan addressing conservation, especially if it would result in further layers of policy or administration.
2012 Federal Budget: Some Key Issues for Employers
Human Capital Law and Policy v2 n2
The 2012 federal budget tabled by Finance Minister Jim Flaherty on March 29 included a number of measures of interest to Canadian employers. In this issue of Human Capital Law and Policy, we note the key features of the budget from an employer perspective and comment briefly on the implications of the policy directions signaled by the government.
British Columbia Perspectives on a National Energy Strategy (NES)
Environment and Energy Bulletin v4 n2
There was a time when the words “National Energy Plan” would have caused blood pressure to spike across much of Western Canada, which would then have been followed by colorful descriptions of the federal government. This may no longer be the case - and certainly not if many of the West’s leading think tanks, energy companies and provincial leaders have their way.