B.C. business leader calls for tax cuts, sped-up permitting, with the economy the priority
The head of the British Columbia Chamber of Commerce is calling for tax cuts and steps to speed up permitting.
The head of the British Columbia Chamber of Commerce is calling for tax cuts and steps to speed up permitting.
Fiona Famulak, president and chief executive officer, cited these specific proposals, when speaking to Black Press Media about a letter that her organization and other business associations addressed to the leader of three parties represented in the provincial legislature following completion of the final vote count by Elections BC.
The letter itself raises concerns about the state of the provincial economy and urges leaders to prioritize steps to improve it.
“Without a strong economy, “affordability will remain unachievable for British Columbians,” it reads. “Overall, B.C.’s fiscal and economic trajectory is deeply concerning. As you shape the next government and plan your work in the upcoming legislative sessions, we urge you to give serious consideration to the state of B.C.’s economy.”
Famulak did not attach specific figures to her pitch for tax cuts.
“But I can tell you the types of taxes that could be cut,” she said. “That would be corporate taxes and also the income taxes that…employees pay. That would be helpful, but certainly corporate taxes.”
Famulak also called for the raising of the threshold for paying the Employers’ Health Tax. While Famulak acknowledged that the provincial government had raised the EHT threshold by $500,000 to $1 million in this year’s budget, government should raise it by at least another $500,000. That would allow businesses to re-direct money toward innovation and the hiring of staff, she added.
When asked about ways to make up the foregone revenues from any future tax cuts given the size of the provincial budget deficit of around $9 billion, Famulak linked it to the second proposal — sped-up permitting.
“Let’s unleash the natural resource sector in all its forms, whether it’s natural gas, whether it’s mining extraction, whether it’s forestry, whether it’s agriculture and agri-food. We have a plethora of natural resources that the world needs. Let’s expedite the permitting that holds up certain operations, so that they are able to operate, so that they are able to create good paying jobs, engage the supply chain, address some of the affordability issues.”
While the B.C. NDP has enough seats for a bare majority pending judicial recounts, it is also exploring avenues of support from other parties in the legislature, including the B.C. Greens. Their platform, however, platform opposes the expansion of natural gas and other fossil fuel projects while calling for greater oversight of the mining sector and reforms to bring it in line with “current environmental, social and Indigenous rights concerns” among other related measures. The party is also calling for a different approach on forestry.
More broadly, B.C. Greens are proposing a transition toward a knowledge-based economy based on alternative energies in questioning B.C.’s historical reliance on natural resources. The party’s platform calls this view “outdated” in noting that service industries now account for over three-quarters of the province’s economic activity, with less than two percent of jobs tied to oil and gas extraction, mining and related activities.
In other words, the B.C. NDP might not find much support from the B.C. Greens for an agenda around natural resources as proposed by the chamber.
So which of the chamber’s two calls for action — tax cuts, sped-up permitting — are more likely to happen?
“I’m not going to get into the politics of it until we know how the government, how the legislature is going to function, which don’t at this point,” Famulak said. “There (are) still lots of conversations to be had there. But it would say it’s not either-or, it’s both.”
Given the state of the provincial economy, nothing can be left off the table, she added.
Speaking Tuesday, Premier David Eby said affordability is a key issue for his government in re-affirming an earlier promise to eliminate the consumer portion of the carbon tax if Ottawa eliminates the legal requirement for it. The B.C. NDP also campaigned on a $1,000 income tax cut for the average family every year, starting next year, first as a rebate, then as a permanent cut.
“I’m not going to comment on the value, but I will comment on the nature of that break,” Famulak said. “They (British Columbians) are looking for long-term strategies, because they are not concerned only about themselves. They are concerned about the younger generations to follow.”
Government, she added, must put the “economy front and centre and create an environment where businesses grow.”
While macroeconomic issues played a secondary role in the provincial election campaign, Famulak’s appeal for action is the second in as many weeks, the first coming last week when the initial vote count showed neither the B.C. NDP nor the Conservative Party of B.C. with a clear majority.
Conservatives had campaigned on an expansion of the natural resource sector and earned an open endorsement from Independent Contractors and Businesses Association. Its president Chris Gardner said at the time his organization would be “deeply concerned” about a B.C. NDP government supported by the Greens.
As she did last week, Famulak stresesd the non-partisan nature of her organization.
“So we are not going to take sides,” she said. “What I will say is we’re excited to work with the government, as well as engage the other parties…because we all have a role to play in reversing the trajectory that we are on. So it’s helpful that there is a majority because the majority provides clarity and certainty for business.”
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