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Harmonized Tax is Avenue to Provincial Trade October 21, 2009

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Much has been said about sales tax harmonization in Canada. In each of the provinces where a provincial sales tax continues to exist, separate and apart from the goods and services tax, business groups and governments continue to review the merits of harmonization. But despite the similarities of those discussions, our voices remain distinctly regional, without recognizing the opportunity harmonization presents to stimulate the Canadian economy from coast to coast to coast.

That changed when chambers of commerce and boards of trade from across the country resoundingly endorsed sales tax harmonization at the recent Canadian Chamber of Commerce annual general meeting, encouraging the federal government to bring all remaining provinces on board.

The merits of harmonization have been well documented. The production side of the economy becomes virtually sales tax free when provincial sales taxes on business inputs join GST as qualifying for rebates. This lower cost of operating will encourage more firms to reinvest in their operations, increasing their productivity, creating more jobs, raising Canadians’ standard of living, and in many cases, rivaling their competitors by using savings to generate lower prices on their products and services. In a harmonized environment, business investment becomes more attractive, luring more domestic and international investors. On the collection side, businesses further save costs and time as they only need to collect one tax for government, not two. Remittances and audits become simpler. Governments also benefit from the simplification of tax collection.

In addition to all those well known arguments, though, one has been overlooked. Sales tax harmonization will, if applied across this vast country of ours, break down what is one of the many obstacles we have erected to doing business with each other.

It’s not often that an issue unifies us from sea to sea to sea. Ironically, this summer, another barrier to business has done just that. The “Buy American” clause imposed by the U.S. Congress has succeeded in uniting communities across Canada, and in fact voices from all walks of life, in a chorus of words against protectionism. This is just the latest effort, in fact, to reduce barriers at our border with our largest trading partner, the United States. For decades, Canadian groups, including many Chambers of Commerce, have studied the barriers, quantified the loss to our collective economies, sent letters and delegations, and lobbied vigorously with great support across Canada.

Canadians rail against any barriers imposed by the U.S. on trade between our two countries. And yet, in our own backyard, self-imposed barriers receive very little scrutiny. Sales tax harmonization will remove a significant obstacle to trade from one province to the next.

A single sales tax provides a chance to standardize the taxes applied to all goods and services, regardless of their size and shape; to treat consumers, no matter their purchase, the same; to consolidate the collection and auditing of a major source of tax revenue in the hands of one level of government, instead of a dozen; to simplify our tax policies so that a garment company from Ontario can sell its product to a retail chain in British Columbia within the same set of rules.

It’s an opportunity to get our own house in order.

Ontario and British Columbia have followed the leads of Quebec, Nova Scotia, New Brunswick and Newfoundland, despite great opposition. Manitoba, Saskatchewan and P.E.I., where provincial sales taxes are applied, have an opportunity to follow.

It’s time we stopped talking about sales tax harmonization as if it were a matter merely of provincial interest, and started talking about it as an issue of national interest. And perhaps the same level of passion that’s applied to the fight against “Buy American,” could be applied to breaking down trade barriers in our own country so that we all find it easier to buy Canadian.

Len Crispino is president and CEO of the Ontario Chamber of Commerce.
John Winter is president and CEO of the BC Chamber of Commerce.

Ogilvie explains Jumbo vote August 18, 2009

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Kimberley Mayor Jim Ogilvie was one of the RDEK directors who voted yes to the motion to ask the province to designate Jumbo a resort municipality. Reaction to the controversial decision, both pro and con, has been fast and furious.

Ogilvie, who voted no on a similar resolution three years ago, explained the thought process that led him to changing the vote this time. “I’m looking at it from a point of view of fairness and jobs,” Ogilvie said. “The proponent has been in this process for a long, long time. 18 years. “He’s been told all along to do certain studies, which he’s done. The project has been endorsed by four different premiers.

“It has gone through just about every review imaginable, and a very strenuous environmental assessment. All of this work was handled through the province. The province has had control of this project.” Ogilvie also said that the jobs created cannot be discounted. “Our local economy was at one time resource based, but given the present state of the forest industry and construction industry, this is a good opportunity to put people back to work. We have to have taxes to pay for schools and highways.

“We are talking about a major international resort. We have to look at it as making the airport project viable.” Ogilvie also believes that rather than hurting Kimberley’s ski hill by pulling people away, Jumbo will help it. “If more people travel through our airport to go to the Jumbo resort then we have a better chance of latching on to them. Certainly a better chance than if they come in from the north and drive right past three or four other ski hills. “Plus Jumbo will be a different demographic than Kimberley Alpine Resort.”

Ogilvie also says that people have to remember that Jumbo is not a pristine wilderness area. “There are people in that area all the time. And the grizzly bear argument, well St. Mary’s Alpine, the south country, Elk Valley and White Swan, those are where the major grizzly populations are, not at the Jumbo glacier.”

Anti-HST voices off-key August 17, 2009

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The opposition overture to Gordon Campbell’s Harmonized Sales Tax can be best described as discordant.

In spite of being out of tune – and equally out of touch – the usual bleaters have the volume fully cranked. In order of appearance, the NDP, in full uninformed voice, is literally drooling at the hope of seeing the HST do in Gordon Campbell’s Liberals the way the GST did in Brian Mulroney’s Progressive Conservatives.

Next in line the pundits, particularly those who flog fact-free opinion pieces as real reporting. They’re having a heyday predicting economic disaster and an absolute rout of the Liberals in the next provincial election.

On the other side and singing in tune with the harmonized tax, the Business Council of British Columbia, the CD Howe Institute, the B.C. Progress Board and the B.C. Forest industry. If you’re betting on the long-term HST review, go with the experts. The NDP and the Chicken-Little sky-is-falling press have been wrong too many times to be convincing.

On the HST, the Business Council says, “For anyone keen to see a more productive and globally competitive BC economy, this is welcome news.”

Analysts Ben Dachis and Alexandre Laurin of the CD Howe Institute say, “British Columbia has taken a step towards greater prosperity for its citizens with plans to harmonize its seven-per-cent PST with the federal goods and services tax.” The CD Howe analysts go on to say, “PST is an antiquated tax in today’s world of complex supply chains.”

So why the uproar? Like any new tax, the HST is seen as a grab. By way of a quick trip down memory lane, look at our experience with the GST. In spite of the fact that it replaced a 13.5 per-cent manufacturer’s sales tax, the seven-per-cent GST was seen as government-on-the-take when it was introduced in 1991. GST was a good idea with bad optics. The manufacturers sales tax was hidden and embedded in the product price, the GST was not. Consumers seem more adverse to tax transparency than to the actual amount they pay.

HST is not a tax grab, rather it’s a tax shift and on balance a beneficial one at that. Currently, BC businesses pay provincial sales tax on purchases made to operate their business. The Business Council says PST represents additional costs of $2 billion annually. Adoption of the HST would eliminate those PST charges as the province harmonized with the GST rebate base.

Andrew Sharpe, an analyst consulting to the BC Progress Board said, “Harmonizing the PST with the federal GST would do more to stimulate investment in the province than the complete abolition of the corporate income tax.”

All of the above is a snapshot of the business case to be made in favour of a harmonized sales tax. I could fill this page if I used the press release material from the various business-interest groups in support of the HST.

As well, CNC economics instructor Al Idiens offered an upbeat and accurate explanation of the change to HST in a July 27 Citizen story.

So where are the politicians, and in particular Premier Campbell in the HST debate? To date we’ve seen a Pat Bell comment and finance minister Colin Hansen has responded on a few occasions to the press.

On the other side, NDP supporter and political consultant Bill Tieleman has put a NO BC HST Facebook group in place and gathered 50,000 signatures. I’ve worked with Tielemen – on a different issue – and he’s good. The NDP have a petition out and at as of last week had 17,000 signatures opposing the HST.

Yet Gordon Campbell seems to be missing in action, in spite of the fact that his constituency, the B.C. business community, is largely on side with the tax transition to an HST. If HST is such a positive economic step, and all the evidence says it is, then why is he avoiding the issue?

He’s ducking the HST debate because there’s nothing in the fight for him. In all likelihood, Campbell will not be around for the next provincial election in 2013. Plus, once the harmonization tax package with Ottawa is signed, the HST omelette will be impossible to unscramble.

A year from now, HST will be in place. Two years from now, no one will remember the summer of our HST discontent and in the election of 2013, with two new provincial leaders in place it will be all but forgotten.

Still, if Gordon Campbell is so in favour of his harmonization plan, and it is a change whose time has come, it would be nice to see him join the choir.

Bruce Strachan is a former B.C. cabinet minister and Prince George city councillor. His column appears Thursdays. E-mail: brucestrachan1@shaw.ca

East Kootenay Forest Roads Benefit April 14, 2009

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East Kootenay residents will benefit from $270,300 to improve
travel and safety conditions on several Forest Service roads (FSRs),
Forests and Range Minister Pat Bell, Community Development Minister
Kevin Krueger and Tourism, Culture and the Arts Minister Bill Bennett
announced today.

“These Forest Service road improvements will provide important
access to extensive recreation opportunities for British Columbians,”
said Bennett. “As an important draw for tourists who covet B.C.’s
backcountry, it’s critical to the local tourism economy that these
extensive roads are maintained.”

The maintenance will occur over approximately 356 kilometres of
Forest Service roads and the works include brushing, ditching, surface
grading and packing.

Gray Creek, Redding Creek, and St. Mary’s Lake FSRs provide a
more direct, but rugged, link between Kootenay Lake and Kimberley. Pilot
Bay FSR provides access from Highway 3A to Pilot Point Provincial Park,
on the shores of Kootenay Lake.

The Bugaboo and Spillimacheen North FSRs, near Spillimacheen on
the Columbia River, provide access to rural residences and numerous
recreation sites, including Bugaboo Provincial Park. The Horsethief and
Horsethief-Forster FSRs, near Radium, provide access to numerous
recreation sites.

The Findlay and Whitetail Lake FSR, west of Canal Flats, provide
access to a children’s camp and recreation sites. The Whiteswan Lake and
Lussier FSRs, east of Canal Flats, provide access to Whiteswan Lake
Provincial Park, Lussier Hot Springs and Top of the World Provincial
Park. The Bull River and Galbraith Creek FSRs, east of Cranbrook,
provide access to various recreation sites.

“We want to ensure that crucial Forest Service Roads that connect
rural communities, as well as parks and recreation areas, receive the
maintenance needed to keep those communities accessible,” said Bell.

“Communities in the Kootenays have told this government they value
the economic and social opportunities that come from having a stronger
road network. We listened and we are taking action to strengthen the
connection between isolated communities and city centres,” said Krueger.
“Whether it’s accessing health care, exploring new mineral opportunities
or opening new regions to tourism, the benefits of this investment will
strengthen the region as a whole.”

British Columbia’s 55,000-kilometre network of Forest Service
roads is bigger than the provincial highway system. As first announced
by Premier Campbell at the 2008 Union of B.C. Municipalities convention,
the Ministry of Forests and Range is providing $20 million to improve
travel conditions on Forest Service roads that serve as crucial
transportation links to rural communities and recreation sites. The
Province of British Columbia and the Government of Canada committed on
April 7, 2009 to a further $20 million in shared funding for additional
Forest Service road upgrades that will be announced in the coming
months.

New road maintenance funding is the latest in a series of
initiatives to improve safety on Forest Service roads, which include the
establishment of radio protocols, speed enforcement through expanded use
of radar guns, and the expansion of the Vehicle Identification Plates
Program.

The Political Question of Wages March 19, 2009

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Carole James used her weekend provincial council to once again promote her
policies on minimum wage. The problem is that she continues to only tell
half the story.

* The fact is, our plan based on low taxes, high job creation and programs
to help our most vulnerable has actually created nearly 375,000 new jobs and
record-low unemployment rates for everyone including youth. Meanwhile, her
scheme would put tens of thousands of people out of work and crush small
business under new costs. Here are the facts:

* The average wage in B.C. today is over $22 an hour — the third highest in
Canada and two-and-a-half times the minimum wage. The average youth wage is
over $13 an hour, one-and-a-half times the minimum wage.

* According to StatsCan, the number of people earning minimum wage is
actually decreasing — from 6% in 2001 to 2.7% in 2008, the second lowest
proportion in Canada. Nearly two-thirds of those individuals today are under
the age of 25, and a very large number of those individuals attend school as
well as work.

* Recent research suggests a 25% increase to minimum wage as Carole James
suggests could cost small business $450 million a year and result in the
loss of up to 50,000 jobs at a time when our workers need more jobs, not
less.

* Finally, Carole James conveniently forgets that she voted against tax
relief and new programs that actually give money BACK to our lowest income
families, including:

– Multiple reductions to personal income taxes, making them the lowest in
B.C. for everyone earning up to $116,000, with 250,000 of the lowest income
earners now paying no income taxes at all. For a family of four earning
$30,000 a year, that’s nearly $1,000 a year in savings.

– Changes to MSP premiums now means that 215,000 families have their
premiums reduced from 2001 levels, and Fair Pharmacare lowered costs for
280,000 people, saving lower-income families hundreds of dollars a year.

– The new Rental Supplement Program is giving rental subsidies to over 7,700
families of up to $765 a month for a lower-income family of four (nearly
$9,200 a year) — a program that the NDP rejected as “a gift to landlords.”

– Enhancements to programs such as the childcare subsidy, where a single
parent of two kids under age 6 earning up to $38,000 a year will see their
annual subsidy double to over $14,200 a year (a nearly $7,000 a year
increase)

The bottom line — Carole James’s plan will undo all of our progress that
has actually put MORE money into people’s pockets, while also putting
unsustainable new costs on small business that will kill jobs. That’s simply
reckless and irresponsible.

K-12 Education March 10, 2009

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Let me make one thing clear: “I like and respect teachers!” I have a brother and sister-in law who are teachers. I was a substitute teacher during university and enrolled in McArthur Teachers College before choosing to work in the fishing lodge industry full time. My comments here are not critical of good teachers who are worth their weight in gold, but of their militant, partisan union.
The BCTF has been shovelling its member’s money off the back of a truck for several weeks now, saying we don’t care about children or education. They hope to influence the provincial election in May and frankly they seem to subscribe to the old saying that if you repeat a lie often enough, some people will believe it. So, with no disrespect to hard working teachers, here are some facts:
•    B.C. has the highest budget ever [$5.68 billion].
•    K – 12 education budget has increased by nearly $1.2 billion – 23%.
•    We’ve invested $3.1 billion in renovations, maintenance and new schools.
•    Our legislation states that the maximum class size for kindergarten is 22 students; for Grades 1-3 is 24 students; Grades 4-7 classes with more than 30 students require the consent of the teacher; and Grades 8-12 classes with more than 30 students require consultation with the teacher.
•    All 60 school districts in B.C. have complied with class size legislation and government will continue to monitor class sizes throughout the province and work with parents, students, teachers and school districts to ensure balanced class size and composition.
•    95% of B.C. classrooms have 30 or fewer students.
•    99% of B.C. classrooms have 32 or fewer students.
•    The number of classes in B.C. with more than 30 students has decreased by nearly 64%.
•    Enrolment has declined by about 50,000 students.
•    Yes, some schools have closed because it makes more sense to spend education dollars on students in the classroom than on keeping half empty schools open.
•    I helped get the Sparwood high school replaced and I will help get Mount Baker in Cranbrook replaced.
The system is not perfect and will always need improvement. We are making progress, but the continued partisan, biased propaganda of the BCTF does not help students

Premier Gordon Campbell’s Economic Speech February 4, 2009

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This is a very difficult day.

Colin has laid out the picture.

Over the last few weeks the slides haven’t been getting any better.

I’d like to thank Colin, all our deputies and all the officials in finance for the exceptional work they have done in the last weeks.

As you probably all know the general framework for the budget is normally finalized by mid December. That was not possible this year, if we wanted to present a credible budget document in February.

Everything has been changing.

Over the last few weeks we have been forced to confront the most difficult decisions I have ever personally faced in two decades of public life.

I have been pretty clear. I abhor deficits.

But the changes have come too fast and too big for me to honestly tell you we can credibly present a balanced budget on February 17th without doing significant harm to critical health services and essential education services.

I know what I have said. I know the clips and I am sure we will all be reminded of them in the days ahead.

I wrestled with this decision for many sleepless nights.

I know I will have supporters who counted on me and on us who will be disappointed, some may be angry.

But I hope they will understand that in these unprecedented times we must ALL take action that reaches beyond ideology to protect the services that are essential in the short term, so we are stronger in the long term.

I don’t believe in deficits.

I have consistently railed against them for my two decades in public life.

My colleagues in our caucus dislike deficits as much as me.

But we are facing a situation we couldn’t plan for.

We haven’t experienced anything like it before in scope, speed, scale, suddenness and synchronicity.

It has been a stark reminder that no one can escape the global forces at play.

There’s been a seismic shift in the world’s economies.

It was just a couple of weeks ago that it became clear, that without massive reductions in planned health and education budgets that a credible balanced budget was not achievable.

I meant it when I said, as I have in so many ways, “when anyone talks about a deficit, they’re talking about turning their back on the next generation and sending our problems forward to them.”

That’s true, especially if you allow deficits to build, year after year, as empty debt, with nothing to show for it.

That is why we worked so hard in B.C. to pay down our operating debt.

Through prudent fiscal management and some very tough decisions, we’ve cut that operating debt by 47 per cent from its peak.

We’ve reduced it by $7.4 billion over the last five years.

But there’s still another $8.3 billion to go, in addition to whatever gets added back in the next two years.

However, today we face reduced economic growth and a precipitous collapse in projected revenues that has thrown all our earlier budget plans out the window.

Maybe we should have seen it coming.

In December our forecast council was forecasting a 0.6 per cent economic growth for ‘09.

By January, that had fallen to  zero.

It is very difficult to finalize a credible budget when so many parts are moving so fast. To give you an idea, previously the most dramatic shift the senior finance staff had seen was $100 million in one week. This year they saw a shift of $300 million in one day.

Today the jury’s out on whether our growth will be flat or whether we are already living with the “R” word.

However, if we want to build confidence, we have to plan for some bad news and work tirelessly to create some good news.

We are determined to present to the public our best assessment of what we face and how we plan to deal with it.

I meant it in the fall when I said, “We don’t need to run deficits” and that we would not run a deficit in this province. I didn’t think we did or would.

Those comments were made in anticipation of the budget that we were actively planning to deliver on February 17.

Since then, our revenue expectations have been repeatedly revised and new expenditure pressures have emerged.

The balanced budget we were planning even in December included a provision for reasonable forecast allowance that would have provided the confidence necessary to make it credible.

And here’s the really hard part.

The truth is – we could STILL deliver a balanced budget that would comply with our legislation.

But to do that, we would have to cut hundreds of millions out of planned budget increases for health care and education.

We would have to table a budget with absolutely no margin for error and no room to manage in the event our forecasts are wrong.

It would be a budget that hurts more than it helps while aggravating our current economic predicament.

In short, it would be a budget that satisfied the law, but that undermined public confidence and our province’s fiscal credibility.

One of the worst things that ever happened to British Columbia’s reputation was the NDP “fudge-it budgets.”

The only thing worse than a deficit budget is a duplicitous budget. That is why we introduced truth in budgeting legislation and Generally Accepted Accounting Principles. No matter how politically tough it may be to table a deficit budget, the heart of any budget’s credibility is its commitment to telling the truth.

As viscerally challenging as this decision is, I believe people expect their government to be honest and transparent about the challenges at hand.

That they don’t want us to clinging to ideology or dogma at the expense of the public interest.

This is a tough decision and people will judge us for it.

We will be recalling the Legislature on noon Monday, February 9, a day earlier than planned.

We will take that full week, and through that weekend if necessary, to debate the legislative changes necessary to ensure that the budget we table is legally compliant.

Those amendments will effectively suspend the current balanced budget requirement for the next two years.

They will require the budget to be balanced in 2011/12 and thereafter.

They will also require that every penny of future operating surplus is first applied to eliminating the direct operating debt.

The Speech from the Throne will be delivered on Monday, February 16, and the budget will be presented as legally required, the next day.

It will be a budget that protects and increases funding for health and education, consistent with the 2008 budget.

It will be a budget that includes immediate, time-limited investments to support job creation and to help build confidence in these turbulent times.

And I hope everyone hears this: it will NOT be a budget that abandons our obligations to future generations.

Just because we have been forced to present a deficit budget that may be unavoidable for the next two years, does not mean that we will not also manage down spending during that time.

On the contrary, we WILL.

You will see significant reductions in every area of discretionary spending – in travel, advertising, administration, service contracts, grants and contributions and some government programs.

In short, discretionary spending will be kept to a minimum.

A new restrictive spending regime will be put in place. We will do everything we can to protect core services.

We have created a fund out of savings to mitigate impacts on individuals and to make smart decisions to ensure we have critical staff available for key programs. We have also made a purposeful effort to ensure that it is not just the lower ranks of staff that manage through change. The senior executive ranks will be reduced by 20 per cent to contribute to this overall belt-tightening.

This will be the toughest budget we have ever faced.

There is far less room for cost savings in our budgets today than there was seven years ago.

British Columbians have been fantastic in helping us to manage those pressures in their interests.

We will not return to the days of runaway spending, high taxes and endless deficits.

We will not abandon our abiding commitment to fiscal discipline.

This is not about changing priorities. It’s about protecting them.

We will demonstrate the depth of that conviction.

To the extent there is new stimulus spending, it will be focused and limited to the next two or three years.

Every effort will be made to minimize the structural deficit.

That will be evident on February 17.

I regret that we are faced today with this situation.

But I want to assure everyone that we will not only get through this difficult period; we will emerge stronger than ever.

The relative strength of our economy and our strong fiscal position will allow us to do just that.

There is no place better positioned to successfully get through this than British Columbia.

We will use this period to embark on a building program for our province that will create jobs in every region of the province.

We will lay that out in more detail in the days ahead.

Tough as it is today for so many, our fastest route forward is to build stability and confidence in our future. That is what our budget will be all about.

Here’s to a Prosperous New Year December 13, 2008

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As we approach a new year, it’s surprising how differently things feel from just a short year ago. In the span of the last 12 months, the world has changed. We’ve seen some exciting things take place, like the United States electing its first black president. And some unfortunate things have happened as well, such as the political turmoil our nation recently witnessed in Ottawa. But the biggest event on people’s minds this past year has been how the world economy seems to be crumbling around us.

2008 was a big year for the world, and in the East Kootenay it was even better. Our region experienced a boom of prosperity, investment and job creation, the likes of which the Kootenays have not seen in 100 years. But this boom did not happen by accident. It happened because of difficult work done in our government’s first term to reduce taxes and regulation and to build a solid platform for the BC economy based on investor confidence. We shouldn’t lose sight that that work will put us in good stead as we enter into this economic downturn. Unlike other provinces that increased their taxes and allowed their job creation to decline, BC is much better positioned to face this crisis than most North American jurisdictions.

As for how tough it could get, no one really knows how long the recession will last. I remember experiencing the last major recession in the early 1980’s. I had to go around to the business people who supplied my fishing lodge, cap in hand, and ask them to wait for their money while my wife Beth and I fought to keep our small business alive. It was a character-building experience and perhaps many people will have to meet similar challenges of reduced revenues over the next while.

But we will get through this. You have a government behind you that understands the best way to stimulate an economy is to reduce taxes, provide relief for job-creators while also investing in infrastructure that keeps the people working. So as we enter into this holiday season, keep that in mind and be confident. Remember that we are a blessed province and we are so fortunate to live in the Best Place on Earth.

Christmastime, despite all the stress and frenzy that the season brings, is many people’s favourite time of year, mine included. This is because of the confident hope and joy that is represented during this holiday. I feel both of these emotions as I look back on this eventful year and onwards to 2009. Joy at the success and prosperity that the East Kootenay and BC has enjoyed, and confidence that as a province we are readily able to take on any economic downturn that may come our way.

So to all my constituents, I wish you a Happy Holidays and a wonderful New Year. I plan to take a few quiet moments during this hectic season and give thanks for all the blessings that I have, most especially for my family and the fact that I get to live in such a pristine and beautiful area such as ours. So have yourself a very Merry Christmas!

A Safe-Haven in Uncertainty December 2, 2008

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As we all know, what goes up must come down. It’s a law of the universe and even the economy must follow suit. For the past few years, we have enjoyed unparalleled prosperity, not only here in British Columbia but across the country and the continent at large. Yet now it seems we’re in for an economic downturn, one that has come upon us rather suddenly. I know you’re worried about the economy and the future. These are uncertain times and our country and province’s biggest market, the United States, is down on its luck. But you should take heart that economists say BC and Alberta are likely to weather this storm better than anywhere else in North America. That’s because of the foundation built in this province during the BC Liberal’s two terms as government.

Over the past eight years, our government has reduced personal and business taxes to the point where we are first or second in all categories in the country – unlike the 1990’s when BC had the highest taxes and worst economy in the land. People around the world have come to respect and trust our province as a safe place to invest. And with their investment has come new jobs, new prosperity, new hope.

We have been thriving recently in BC and I believe British Columbia will manage what comes our way. Nevertheless, the economy remains unsteady and because of that you have a right to expect your elected representatives to do everything we can to help you. In the past month, Premier Campbell announced a list of initiatives to keep more cash in your pocket and to help us all get through this slow down:

  1. Most provinces provide unlimited insurance on Credit Union deposits, but previously BC did not. We have changed that and the East Kootenay Community Credit Union has already come out publicly thanking our government for protecting their members.

  2. Many British Columbians don’t have access to a pension plan. We are starting a new pension opportunity for those who don’t have one.

  3. We are reducing your personal income tax by 5%, retroactive to January 1, 2008.

  4. Our big employers, the pulp mills, the mines and the saw mills, are challenged by the slow-down. To ensure they stay healthy and can continue to employ thousands of British Columbians, we are rebating 50% of all school tax paid by them.

  5. Small business in BC creates most of our new jobs. And obviously a healthy small business sector means more jobs for families. We are reducing the small business tax rate to help keep small business flourishing.

  6. We are accelerating our spending on highway, bridge, airport, hospital and school construction over the next few years. It’s important that we keep construction workers busy, and that we keep money circulating in our provincial economy. We have asked the federal government to do the same thing and with Jim Abbott’s help, PM Stephen Harper has agreed.

  7. We will not be increasing ministry budgets during these difficult times. Unlike the NDP, we understand that we cannot spend beyond our means. However, that does not mean there will be cuts. Don’t worry – budgets will NOT be reduced.

  8. You now have the opportunity to lock in your property assessment for one year based on your 2007 assessment. However, if your 2008 assessment is lower, BC Assessment will automatically go with the lowest number between the two!

  9. You can now defer your house taxes for two years and not pay them until you sell your house, if you are short on cash during this slow-down. You must have at least 15% equity in your home to qualify.

  10. We are changing the rules so that creditors cannot go after your RRSP’s. The current law is unfair to you.

  11. We will invest $20 million immediately into road construction in rural BC to generate economic activity and keep people working. The great news is that this will include Highway 3.

No government can completely change what is happening around the world but there are some concrete things that your provincial government can do to help you weather this economic crisis. Considering the initiatives I pointed out above, I think it is reassuring as a citizen of BC to know that we have a Premier who is pro-active in times of economic uncertainty and is planning ahead rather than simply leaving us to the mercy of this economic storm. Please contact me at my constituency office at 250-417-6022 if you have any questions or comments.