The construction industry is an important contributor to B.C.’s economic health, so it is equally important for the government to make improvements to ensure projects get shovels in the ground, said B.C. Minister of Finance and Deputy Premier Mike De Jong.
Improving coordination between levels of government and shortening the time to get shovels in the ground were two areas cited for improvement, as De Jong acknowledged the challenge of delays (ie development permits) to the industry.
The Finance Minister was the guest speaker at this year’s annual CEO breakfast hosted by the Independent Contractors and Businesses Association of B.C. at Buildex Vancouver where he highlighted the financial strength of the province.
“We are in an enviable position compared to virtually every other jurisdiction not just in Canada but in North America,” he said, discussing the province’s balanced budget and a forecast surplus for the fiscal year 2015/16 close to $400 million. That surplus is expected to continue until 2018/19.
He characterized B.C.’s economic growth as “steady and stable,” commenting that the province is projected to lead the country for the next three years. He touched on housing starts, employment (more people coming back to the province looking for work) and pointed out B.C. has the lowest provincial personal income taxes for individuals.
Direct operating debt is at its lowest point since 1984/95, said De Jong. The combination of a balanced budget and Triple A credit rating means the province “can borrow money at the cheapest rate.”
“We borrow to build,” he said, explaining the budget includes the largest three year capital program in the history of the province. The taxpayer-supported infrastructure spending will inject $12 billion into areas such as highway maintenance, youth skills training and transit funding.
The budget also implements a commission on tax competiveness, said De Jong, to evaluate the current tax structure to make sure it’s keeping pace with the changing economy but HST will not be a consideration. The commission will report back to the government in the fall.
