News Releases and Op-Eds
Finlayson Op-Ed: Too little investment puts BC economy at risk (Troy Media)
Economists have long worried about Canada’s sluggish productivity growth and the seemingly ever-widening gap with the United States on this key indicator of economic well-being. It is widely recognized that the problem stems in large part from relatively low levels of investment in Canada, particularly in certain types of assets that are strongly associated with productivity improvements in modern economies – machinery, plant, equipment, software, and digital and other advanced and process technologies.
Release: Budget 2015 Reflects Sound Fiscal Management and the Benefits of a Diverse Economy
The Business Council of British Columbia applauds today’s provincial budget, which features another three years of operating surpluses and a plan to reduce the province’s net debt measured relative to the size of the economy (GDP). Budget 2015 is built around prudent economic and revenue growth projections and includes a handful of modest, but well-targeted, spending increases.
“We support the government’s budget plan and acknowledge its steady stewardship of the province’s finances,” said Greg D’Avignon, President and CEO of the Business Council. “The government is focusing most of the proposed spending increases on health care and education while containing expenditure growth in most other areas.”
“We believe, however, that overtime it will be necessary to refocus efforts on strengthening BC’s competitive position through increased investments in infrastructure, further streamlining of regulatory processes, and the refinement of current tax policies to spur business investment and innovation,” added D’Avignon.
Finlayson Op-Ed: Economic prospects bright for BC (Vancouver Sun)
As Finance Minister Mike de Jong gets ready to table his 2015 budget, the incoming economic data paint a mixed picture. Projections for global growth have been marked down by the International Monetary Fund and other leading forecasting agencies. The Eurozone hovers on the brink of recession, China’s once frenetic economy is slowing, and the prices of many internationally traded commodities remain in the doldrums.
Canada has also lost a step, with real gross domestic product (GDP) shrinking in November and the job market seeming to run out steam as 2014 progressed. Last month’s decision by the Bank of Canada to trim its trend-setting overnight lending rate by 25 basis points signalled policymakers’ worries about the state of the national economy.
Release: Strengthening Asian Investment in British Columbia
Today, the Honourable James Moore, Minister of Industry and Minister Responsible for British Columbia, joined by the Honourable Michelle Rempel, Minister of State for Western Economic Diversification, the Honourable Teresa Wat, B.C. Minister of International Trade, as well as the Business Council of British Columbia (BCBC) announced a new project to attract Asian head offices to Vancouver. This project, entitled HQ Vancouver, will build on Canada’s competitive advantages in key sectors and attract major Asian firms to set up their North American head offices in British Columbia.
Finlayson: Canada looks set for another year of modest economic growth (Troy Media)
The early weeks of 2015 have been a reminder that we live in a turbulent and risk-prone world. From plummeting oil prices to terrorist attacks in France, jittery stock markets, slowing growth in China, and renewed political uncertainty in Greece, there has been much to capture the attention of those inclined to fret about the future. But the underlying economic picture is more favourable than a glance at the newspaper headlines may suggest.
Finlayson Op-ed: Income inequality not a problem in Canada (Vancouver Sun, Troy Media)
Canada has long been known as a country that promotes the values of equity and fairness within our society. That helps to explain why the issue of economic inequality resonates with the media and among many of our political leaders. With a federal election expected sometime in 2015, inequality is sure to get more attention in the months ahead.
Globally, concerns over inequality are also on the rise. A recent article in The Economist magazine noted that 56 per cent of citizens in the advanced countries believe inequality is a problem. On most indicators, income inequality has indeed increased within most industrial countries, although it has diminished at the global level owing to a long stretch of relatively strong economic growth in China and many other emerging markets.
Finlayson: Low Interest Rates make this a great time to invest in infrastructure
Ottawa has the fiscal room to invest in infrastructure projects
Second annual survey shows strong partnerships and $373 million in charitable contributions by British Columbia’s business community
Today, the Business Council of British Columbia released the second annual study quantifying the charitable contributions made by the province’s business community, conducted by MNP LLP. The report, Prosperous Companies, Prosperous Communities found that in 2013 British Columbia businesses donated $373 million in cash donations, sponsorships and partnerships to the province’s charities with the top types of charities supported being social services, health, education and environment.
Finlayson: The Bank of Canada: An Overview (CPA Industry Update)
Release: Business Council of BC White Paper and Nov.7 Summit focus attention on BC infrastructure needs and issues
VANCOUVER, BC (Nov. 5, 2014) - With the economic prosperity of British Columbia and Western Canada relying increasingly on global trade and our ability to deliver goods to foreign markets, the Business Council of British Columbia (BCBC) today released Building BC for the 21st Century: A White Paper on Infrastructure Policy and Financing in advance of its second annual BC Business Summit (Building BC for the 21st Century: Innovation in Infrastructure), to be held on Friday, Nov.7 at the Vancouver Convention Centre.
Peacock Op-ed: Infrastructure - We need more and now is a good time to build (Vancouver Sun)
On several levels, it may seem that we have adequate infrastructure in place today. After all, British Columbia is blessed with a solid road network, excellent port facilities, modern airports (including the award winning YVR), leading telecommunications and wireless capacity, good water, sewer and solid waste systems, and generally high quality education and health care facilities. But the reality is greater global economic integration, population growth, demographics and the need to enhance BC’s competitive position means we cannot be complacent about infrastructure.
Finlayson: The fiscal impact of an aging population in Canada (Troy Media)
An update on Canada’s demographic future from Statistics Canada confirms what is readily discernable through casual observation: our population is growing modestly and becoming greyer at an accelerating pace.
Under all of the scenarios modelled by Statistics Canada’s researchers, the country’s population is on track to exceed 40 million by 2063 (up from 35.2 million in 2013). Three different scenarios are examined.
A slow-growth scenario puts the population at 40 million in fifty years’ time.
Under the medium-growth scenario, the population reaches 51 million in 2063.
And a high-growth scenario sees the number of Canadians swelling to 63.5 million.
D'Avignon and Ross: 'Green shoots' of First Nations business development (Vancouver Sun)
A critical cornerstone of reconciliation is building economic opportunities for First Nations at the community level. There is a strong, positive correlation between economic empowerment — generating investment, business ownership and jobs — and improving social conditions.
As The Vancouver Sun series First Nations Inc. has shown, we are rapidly moving down this path from a business formation and economic development perspective.
To measure these advancements, the Aboriginal Business Investment Council, with the Ministry of Jobs, Tourism and Skills Training, have funded and developed a database which provides B.C.’s first comprehensive accounting of First Nations business development and economic benefit agreement activities.
The data, which will be publicly available later this fall, highlight the sea change occurring in many First Nations communities as rights and title interests combine with higher educational attainment and economic development agreements to spur increased First Nation business formation, jobs and growth.
Finlayson: Exportable services an important source of job growth for BC
More than three-quarters of all employed people in British Columbia are engaged in producing “services” rather than “goods.” Services span a wide array of industry sectors, everything from retail and wholesale trade to professional services (engineering, law, accounting, architecture, etc.), scientific and technical services, transportation, financial services, accommodation and food services as well as services that are mainly delivered and/or largely funded by governments (public administration, education, and health and social services). Many of these service industries loom large in the labour market. Retail and wholesale trade, for example, together employ 350,000 British Columbians, another 200,000 or so toil in the broadly-defined education sector, 150,000 work in financial services, and 275,000 earn their livelihood by providing health-related services.
Finlayson & Syer: Building on Success: Assessment of First Nations – Industry Relations in BC (Vancouver Sun)
Increasingly over the past decade industry and First Nations in B.C. have engaged with each other with an overarching objective in mind - to advance resource development by ensuring better outcomes for all parties from economic, environmental and social perspectives. The business case for this kind of industry-First Nations engagement is clear: First Nations have rights and title interests (to a degree unknown) that have to be addressed in order to pursue new development. And while governments (federal, provincial and aboriginal) have crucial responsibilities in the process of reconciliation and in creating certainty for all parties, businesses also have a critical role to play as partners that can provide some of the vital ingredients – investment, expertise and jobs.
D'Avignon op-ed: Economic reconciliation with First Nations looks promising (Vancouver Sun)
British Columbia is a diverse and relatively wealthy province. This diversity comes in many forms, including environmental, economic and cultural. Reconciling and harnessing this diversity is what has enabled B.C. to build and sustain a high standard of living and of livability.
However, we are still performing below our collective potential in significant ways.
Within this broad canvas, the province has only recently begun a new relationship between government, First Nations and industry. This relationship has its legal foundations in constitutionally protected aboriginal rights and title and, more directly, in a new era of economic partnerships that both governments and industry have entered into with many of B.C.’s First Nations.
Finlayson: The growing role of women in the workforce (Troy Media)
The growing role of women in the workforce arguably qualifies as the most consequential socio-economic development of the past fifty years. As more women have entered the formal labour market, the productive capacity of our economy has been augmented. Indeed, increased “labour input” – more people working – has been the principal factor pushing up gross domestic product (GDP) and household incomes in Canada. And women account for a large majority of this increase in “labour input.” A study done last year by the economics team at RBC estimated that the rise in female labour force participation since the early 1980s has boosted Canada’s GDP by more than $130 billion.
Finlayson: Vancouver’s Incomes are Low, But Costs are High (Vancouver Sun)
Spending time in the downtown Vancouver business district or in the tonier residential neighbourhoods scattered across the lower mainland can easily foster a misleading impression of the financial health of the households that comprise the region. That point was hammered home for me recently after reviewing the latest Statistics Canada data on incomes.
Finlayson: US may be poised for economic housing boost (Troy Media)
Is it possible that America’s economy might surprise us with a sustained growth surge? The question came to mind as I recently slogged through a series of blog entries and reports on the web site of the Harvard Joint Center for Housing Studies. The Center’s researchers keep close tabs on U.S. housing markets and have a particular interest in the factors believed to influence the demand for housing.
Finlayson: BC must up its productivity game (Troy Media)
A fundamental long-term challenge facing British Columbia is to improve upon the province’s lackluster productivity record. B.C. trails the national benchmark on overall business sector productivity by around 10%. In 2012, BC ranked sixth among the ten provinces in the level of productivity. Moreover, the province has had very limited success in boosting productivity since the 1980s. This is a worrisome trend, since higher productivity will be essential to raising real incomes and living standards as the growth of the workforce slows due to the effects of an aging population. In the end there are really only two ways to expand the “economic pie”: i) higher productivity, and/or ii) greater “labour input” – i.e., more people working. The size of the workforce is limited by underlying demographic patterns, whereas in theory there is no limit to future productivity growth.