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Provincial Government

BC’s provincial government has a key role to play in shaping the province’s economy. Taxation, access to natural resources, transportation, education and skills development, environmental regulation, labour rules and many other social programs all fall under the provincial government’s jurisdiction. The Council conducts research and analysis on all these topics and regularly contributes to public-policy development at the provincial level.

 

Mental Disorder Claims Under the Workers' Compensation Act
- A Human Resources/Labour Relations Perspective

Section 5.1 of the Workers’ Compensation Act (the WCA) was enacted effective July 1, 2012. The intent of the revision was to expand the scope of mental disorder claims arising out of and in the course of employment which would be accepted as compensable under the WCA. One aspect of this expanded coverage involves a mental disorder claim by a worker that “is predominantly caused by a significant work-related stressor, including bullying or harassment, or a cumulative series of significant work-related stressors, arising out of and in the course of the worker’s employment.”

An immediate concern for employers from the implementation of Section 5.1 was an anticipated significant increase in mental disorder claims that would be filed by workers with WorkSafe BC. For those employer representatives responsible for administering compensation claims, it is expected that dealing with mental disorder claims may well evolve into a significant component of their work responsibilities.

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A 'Balanced' but "Challenging' Provincial Budget

In his inaugural budget, BC Finance Minister Mike de Jong delivered on the government’s long-standing promise to balance the operating budget by fiscal 2013-14. While some additional funding is provided for health care and a smattering of small-scale initiatives in support of the government’s Families First agenda, meeting the balanced budget target overshadowed all other aspects of the budget. Eliminating the fiscal shortfall of more than $1 billion on schedule required a combination of tax increases, provincial asset sales, and a hefty dose of spending restraint.

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Five Things You Should Know about BC Budget 2013

1. The BC government’s operating deficit for this year is estimated at $1.2 billion, less than 3% of the pan-Canadian deficits from the national and all provincial jurisdictions

2. BC’s net debt equals 17% of GDP, the third lowest debt-to-GDP ratio in the country

3. According to Budget 2013, the BC government intends to limit the growth of program spending to just 1.5% per year over the next three years.

4. Capital spending is expected to fall from $6.8 billion this year to $6.2 billion in both 2013-14 and 2014-15.

5. Despite a one percent increase in the general corporate income tax rate (CIT), BC will continue to have a competitive CIT compared to other North American jurisdictions – however, the timing of this increase poses a risk for our overall competitiveness

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News Release:

BCBC Acknowledges Government’s Commitment to Fiscal Prudence in 2013 Budget
-Province must renew focus on competitiveness to attract investment and create jobs as priority in post-HST context-

The Business Council acknowledges the province’s disciplined management of expenditures in the years leading up to the 2013 Budget and as projected in the new three year plan, and endorses the government’s efforts to maintain fiscal responsibility through challenging economic times.

“BC’s current fiscal situation is comparatively good – better than most other provinces like Alberta and Ontario, where governments have been less successful in controlling spending growth,” said Jock Finlayson, Executive Vice President and Chief Policy Officer, Business Council of British Columbia. “However, our support for this Budget is tempered by the government’s decision to hike taxes and fees in a number of areas. This is an inopportune time to be adding to the tax burden facing business and industry in British Columbia. We are concerned that this negative signal could become a trend. Further erosion of the province’s overall competiveness will have negative longer-term implications for jobs and the economy.”

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Submission: Land Based Spill Preparedness and Response in BC

The Business Council's response to the Ministry of Environment's request for comments on the Land Based Spill Preparedness and Response in British Columbia, Policy Intentions Paper for Consultation (2012).

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Submission: 2013 Provincial Pre-Budget Submission

The Business Council of British Columbia submits preliminary advice on the 2013 provincial budget to the legislature's Select Standing Committee on Finance and Government Services.

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Boomtown or Ghost Town? The Need to Secure BC's LNG Opportunity

By Greg D'Avignon, President and CEO, Business Council of British Columbia
Even in the best of times, it is extremely rare that a province is presented with an opportunity to develop a new industry with the potential for $50 billion in capital investment over the next five years. Over the longer-term there may be as much as 1.2 million person years of employment, a six-fold increase in annual government royalties and a cumulative total upwards of $1 trillion in additional GDP over the next 30 years. Such are the magnitudes of the economic and social benefits that BC could realize by developing a new liquefied natural gas (LNG) export industry, serving the rapidly expanding Asian markets.

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Submission: Provincial Government's Expert Panel on Business Taxation

In response to the provincial government's request for input, the Business Council of British Columbia is pleased to share our views with the Expert Panel on tax measures that could be implemented to strengthen BC’s economy and competitive position as the province shifts from the HST back to the dual PST/GST system. The Panel is familiar with the benefits of the HST, and the many reasons why economists and public finance scholars almost universally see value-added taxes like the HST as an important and useful element in the revenue mix for governments.

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Public Sector pensions are sure to be reviewed

By Jock Finlayson, Executive Vice President and Chief Policy Officer, Business Council of British Columbia
With governments across the country addressing budget deficits pushed higher by the 2008-09 recession, attention is turning to the pay levels of employees in the public sec-tor and how these compare with private-sector practices.

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2012 BC Budget: Fiscal Caution Amid Economic Turbulence

Business Alert
Against an unsettled external economic backdrop, this week’s provincial budget saw Finance Minister Kevin Falcon reaffirm the government’s commitment to balance the operating budget by fiscal 2013-2014. Meeting this objective – which is mandated by current law – will require downshifting spending growth to about half the pace set during the years preceding the 2008-09 recession. While it featured a few new measures, the dominant theme of Budget 2012 is spending discipline while seeking to maintain core government services. To help address funding pressures across the provincial public sector, resources continue to be reallocated to higher priority areas such as health and education, and efforts to find efficiencies within existing budgets are accelerated.

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Submission: Special Legislative Committee on Cosmetic Pesticides

On June 2, 2011, the Legislative Assembly agreed to appoint a Special Committee to examine the use of Cosmetic Pesticides and to make recommendations that potentially could lead to new restrictions on the use of these products in British Columbia. The Business Council of British Columbia is pleased to provide these comments on the policy and regulatory framework concerning the cosmetic use of pesticides in British Columbia. The Business Council also has some concern about the prospect of a spreading patchwork of regulation in this domain. We strongly support the implementation of a coherent set of rules across the province, recognizing that urban and rural settings may warrant somewhat different treatment. As we understand it, around 20 municipalities in BC have already taken steps to restrict pesticide use, with some prohibiting all pesticides in their jurisdictions while others allow some applications with a municipally‐issued permit. Having an array of diverse or conflicting rules in different communities can create unnecessary confusion for industry as well as consumers and leads to higher compliance costs. The Ministry of Environment should ensure that any changes touching on the cosmetic use of pesticides will supersede municipal regulations in order to establish a coherent provincial regulatory framework for the use of pesticide products.

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Submission: Select Standing Committee on Finance and Government Services

The Business Council of British Columbia submits preliminary advice on the 2012 provincial budget to the legislature's Select Standing Committee on Finance and Government Services.

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B.C. Human Rights Tribunal Changes - Will They Be Enough?

Human Capital Law and Policy       v1 n1
On August 26, 2011, the B.C. Human Rights Tribunal reached out to its stakeholders for feedback and recommendations with respect to any issues or concerns. A broad invitation indeed. However, the invitations is in the context of a request – it is not clear from whom – that the Tribunal "undertake a broad review of its policies, procedures and practices with a view to assessing and improving its process from a variety of perspectives". While any review designed to improve the Tribunal’s processes is welcomed, the employer community might well be concerned, given what has occurred over the last year, that hoped-for amendments to the Human Rights Code may end here, with a review of Tribunal processes.

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Lessons Learned from the Prosperity Mine Decision:
Enhancing Project Certainty Through a Social Licence Strategy

Environment and Energy Bulletin       v3 n1
Since the Federal Cabinet’s decision in November, 2010 to prohibit the proposed Prosperity Mine project from proceeding, questions have arisen about how this outcome came to pass, especially in circumstances where the project was previously approved through the British Columbia environmental assessment process and received strong words of support from the BC Government. One only has to consider the voluminous media coverage of this dilemma to understand the answer and to gain an appreciation of what now appears to be the most critical ingredient for success in any major resource project proposal. The critical ingredient? - “social licence” to develop and operate the project.

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