News Releases and Op-Eds
Finlayson: Rebound in global trade augurs well for B.C.'s economy (Troy Media)
Economic growth has been tepid in B.C. in the past two years, with inflation-adjusted gross domestic product (GDP) eking out an average annual gain of barely 1.5 per cent. But the picture should brighten over 2014-15, as consumer spending strengthens, some momentum returns to the job market, and the province’s export shipments continue to expand.
The latter factor – stronger export growth – will be particularly important in creating a more positive economic environment. According to the latest forecast from the World Trade Organization (WTO), the volume of global trade is on track to increase by 4.7 per cent this year, followed by a 5.3 per cent jump in 2015. This represents a significant turnaround from the sluggish 2.2 per cent annual pace recorded during 2012-13. It’s also good news for the thousands of B.C. companies involved in selling various goods and services to foreign customers.
News Release: Business Council appoints prominent business leader, Jonathan Whitworth, CEO of Seaspan ULC, as Chair for a two-year term
April 17 (Vancouver, BC) - The Business Council of British Columbia is pleased to announce the appointment of Jonathan Whitworth, Chief Executive Officer of Seaspan ULC, as the new Chair of the Business Council for a two-year term. Mr. Whitworth replaces Hank Ketcham, Executive Chairman at West Fraser Timber who will become the immediate past chair of the Business Council.
Statement from the Business Council of British Columbia on the passing of Former Finance Minister Jim Flaherty
The Business Council of British Columbia is saddened to learn of the death of former Finance Minister Jim Flaherty.
“Mr. Flaherty was a dedicated public servant and man of character who gave of himself and his family to Canadians through public office, including over 8 years as the country’s Minister of Finance,” said Greg D’Avignon, President and Chief Executive Officer of the Business Council of British Columbia. “He was a leader not only in Canada, but internationally among his counterparts, and his contributions to our country have ensured a more prosperous future for our country today and years to come.”
Finlayson: Higher minimum wages not the best answer to reducing poverty (Troy Media and The Province)
Proposals to boost the minimum wage have been drawing attention on both sides of the Canada-U.S. border.
In January, U.S. President Barack Obama called for lifting the U.S. federal minimum wage to $10.10 an hour. Since 2011, several American states and cities have increased minimum wages in their jurisdictions.
In Canada, four provinces are raising their minimum wages in 2014 — Ontario, Quebec, Nova Scotia and Newfoundland. Ontario is taking the biggest step, hiking the minimum wage to $11 an hour and indexing it to the Consumer Price Index going forward.
Are higher statutory minimum wages an effective way to improve the economic well-being of low- to moderate-income workers and families? Will some businesses respond to escalating minimum wages by shedding jobs? These questions have been extensively studied by academic economists in the past decade. Overall, the research yields mixed results.
Finlayson: Return to PST has hurt BC's competitiveness (Vancouver Sun)
April 1 marks the one-year anniversary of the return of the Provincial Sales Tax following B.C. voters’ decision in 2012 to scrap the Harmonized Sales Tax. It is a good time to reflect on the province’s competitive position in a world where many jurisdictions are aggressively seeking to attract private sector investment and the jobs and economic activity that come with it.
There can be no doubt switching back to the PST altered the business landscape in a way that left the province at a competitive disadvantage. That’s why virtually all economists supported the HST. The situation varies by sector, and not all industries have been hurt by restoring the PST. But most have been.
D'Avignon: British Columbians support resource exports (Vancouver Sun)
British Columbians, as well as potential investors, are too frequently confronted by headlines declaring B.C., and Metro Vancouver more specifically, are paralyzed by conflict over natural resource exports with supposedly profound opposition to development among a majority of citizens.
Is this really the case?
News Release: Business Council of British Columbia points to benefits of Canada-Korea Free Trade Agreement
March 10, 2014 (Vancouver, BC) - The Business Council of British Columbia today welcomed the Government of Canada’s announcement that negotiations to establish a bilateral free trade agreement with South Korea have been successfully concluded.
“The federal government has worked long and hard to secure a free trade agreement with South Korea,” said Greg D'Avignon, President and CEO of the Business Council of British Columbia. “We applaud the Prime Minister, International Trade Minister Fast and his senior officials for their efforts to get this significant agreement over the finish line.”
BC Needs to Encourage Small Businesses to Grow
Jock Finlayson's article, BC Needs to Encourage Small Businesses to Grow was published in this month's Chartered Professional Accountants of British Columbia publication CPABC in Focus.
News Release: Business Council applauds budget for providing sound fiscal framework - Global competitiveness requires greater focus on skills training, efficient regulatory processes and effective tax structures
February 18, 2014 (Victoria, BC) – The Business Council of British Columbia applauds today’s provincial budget in which the government delivered on the commitment to keep the operating budget balanced and to manage the overall provincial debt, preserving BC’s Triple A credit rating.
“As the province moves into surplus and focuses on realizing new economic opportunities, there will need to be definitive action taken to ensure both new development opportunities and ongoing business operations are more competitive,” said Greg D’Avignon, President and CEO of the Business Council of British Columbia. “This focus on competitiveness will need to encompass infrastructure, human resources, regulatory systems and taxation policies that enable success in a highly competitive world.”
Finlayson: Three external developments that could affect Canada's economy
For Canada, what happens beyond our borders is often more important to our economic prospects than what transpires at home. With that in mind, here are three things that Canadian forecasters and market analysts will be carefully tracking in 2014.
- U.S. monetary policy: the end of quantitative easing
- Europe returns to growth
- Japan struggles to revive its economic engine
Finlayson: The over-qualification equation: higher education, fewer jobs
(Business in Vancouver)
Statistics Canada’s latest Labour Force Survey points to a softening in the job market. Across many advanced economies, employment has been slow to recover from the punishing blow delivered by the 2008-09 recession, with young adults in particular shouldering much of the burden.
Canada has done better than most, but even its youth unemployment rate still hovers near 14%, double the overall rate. Many young adults are finding the search for gainful employment tough sledding.
Finlayson: Labour shortages not about a shortage of workers (Troy Media)
An odd feature of today’s economy is the juxtaposition of widespread concerns about talent and labour shortages together with evidence that the incomes of many workers are under downward pressure. While CEOs, human resource managers, and business gurus proclaim that recruiting, retaining and motivating skilled employees is key to their organizations’ success, a sizable body of economic data presents a somewhat different picture – one of predominantly stagnant real (inflation-adjusted) earnings for a significant fraction of the workforce.
News Release: BC's Economy and Job Market to Gain Momentum over 2014-2015
Broadly-based gains across many segments support growth in 2014,
LNG and related activity to fuel stronger growth in 2015
The Business Council of British Columbia today released its semi-annual BC Economic Review and Outlook publication for 2014, noting that it expects economic conditions to improve over the next two years. This year, the Council forecasts that real (inflation-adjusted) gross domestic product (GDP) in BC will increase by 2.3%, a notable improvement from the 2013’s estimated 1.4% expansion. In 2015, BC’s economy should accelerate further, with real GDP growing by more than 3%.
Finlayson: The Plight of the Overeducated Worker (Troy Media)
Statistics Canada’s latest Labour Force Survey points to a softening in the job market. Across many advanced economies, employment has been slow to recover from the punishing blow delivered by the 2008-09 recession, with young adults in particular shouldering much of the burden. Canada has done better than most, but even here the youth unemployment rate still hovers near 14%, double the overall rate. Many young adults are finding the search for gainful employment tough sledding.
Finlayson: Thank exports for any improvement in Canada's economic performance in 2014 (Troy Media)
After a generally lacklustre 2013, what are the prospects for Canada's economy in the coming year? As 2014 gets under way, the signs are mixed.
In the plus column are accelerating U.S. economic growth, continued low interest rates, and the positive impact of the weaker Loonie on Canada's trade position and competitiveness. Among the factors likely to hold our economy back in the year ahead are sluggish global commodity markets, record high Canadian household debt, government fiscal austerity at both the federal and provincial levels, and a slowdown in residential spending.
News Release: Business Council of BC releases Top Economic Questions for 2014 with Council Predictions
December 30, 2013 (Vancouver, BC) – On the eve of a New Year, the Business Council of British Columbia has released its Top 10 Economic Questions for 2014, including predictions from the Council’s senior leadership and policy team. The questions and answers highlight the pressing issues facing the province and will help shape BC’s economic fortunes for the coming year.
While the Business Council predicts a respectable 2.4% GDP growth for the province in 2014, up from the estimated 1.5% GDP growth for 2013, there are many factors at play in the BC economy which will impact British Columbia’s job and investment climate.
D'Avignon: YVR project Earns Environmental Assessment Certificate
It is crucial that capacity grows to meet trade and travel opportunities
The B.C. government recently approved the Vancouver Airport Fuel Delivery Project and granted its Environmental Assessment Certificate. This is an important milestone and something we support specifically on its merits, but just as importantly for the signal this sends to investors that seek to do business and create jobs in B.C. The message underlying this project and this decision is that B.C. is open for investment and the province can get projects approved on their environmental, social and economic merits. This includes robust review and engagement, within reasonable time frames that are crucial to economic and investor certainty.
News Release: Business Council Condemns Apparent Attack and Violent Protest at Port Metro
December 18, 2013 (Vancouver, BC) – The Business Council of British Columbia is asking elected leaders, environmental, business and other organizations along with all British Columbians who embrace rigorous, informed and respectful debate on economic development to condemn the activists who allegedly attacked innocent staff and damaged property at Port Metro operations and offices this week.
“We are privileged to live in a democracy which functions through the rule of law, supports a prosperous quality of life that is the envy of the world and provides transparent processes which encourage informed, rigorous and open debate,” said Greg D'Avignon, President and CEO of the Business Council of British Columbia. “We fully expect that in a civil society, based on Canadian values, the police will aggressively investigate and seek appropriate charges and that the alleged perpetrators of this unacceptable attack will be prosecuted to the full extent of the law.”
Finlayson: With Victoria’s commitment to develop a global LNG industry, should B.C. revise its greenhouse gas reduction targets? (Business in Vancouver)
When the B.C. government decided, in 2007, to make climate change a central focus of its legislative agenda, the world looked different than it does today.
There had been no global recession, no financial crisis, no disheartening spike in unemployment rates. At the same time, the public was becoming more worried about climate change and support seemed to be building for action to reduce the greenhouse gas (GHG) emissions that most scientists believe contribute to global warming.
Finlayson: Vancouver not an island, economically speaking (Vancouver Sun)
Vancouver Mayor Gregor Robertson shared his thoughts on the future of the city's economy in an address to the Vancouver Board of Trade on Oct. 16. The mayor got it partly right. He provided an update on recent economic and business developments in the city, particularly in the high-technology sector, and he emphasized the goal of making Vancouver a recognized leader in innovation.