Business Association Letter to Leaders Post-Election

October 30, 2024

Dear Leaders,

On behalf of the undersigned business associations, we extend our appreciation for your commitment and willingness to serve British Columbians. Thanks to the diligent work of Elections B.C. officials these past few days, we now know that we are headed for the narrowest of majorities in the legislature. However, given parliamentary conventions, including the need for a Speaker, greater collaboration may be required to ensure the effective operation of the legislature.

Regardless, we urge you all to prioritize improving the state of the B.C. economy. Without a strong economy, affordability will remain unachievable for British Columbians.

British Columbia’s economy is falling behind, and many sectors are experiencing deteriorating performance and job losses. The province has lost 12,400 manufacturing jobs since 2017, and the lack of investment in the sector is “nearing crisis levels,” according to the Canadian Manufacturers and Exporters (CME). Forestry has shed over 10,000 direct jobs in just four years, along with hundreds of millions of dollars in lost investment. More broadly, B.C. has seen effectively no private sector employment growth between 2019 and 2023—an unprecedented and unsustainable situation.

As you heard throughout the recent campaign, families, communities, and businesses across British Columbia are grappling with extraordinary affordability challenges. Rising costs for essentials like housing and groceries are putting immense pressure on households, while many small businesses struggle to meet payroll and stay open. The Greater Vancouver Board of Trade’s pre-election survey found that since 2020, a significant majority of Metro Vancouver residents (80%) and businesses (92%) believe affordability has worsened. Both businesses and residents are feeling the strain of these rising costs.

The government is not immune to these pressures either. The most recent budget projected a $7.9 billion operating deficit for 2024-25—the largest in the province’s history. More recent data shows the deficit will jump to nearly $9 billion.

This figure does not account for the new spending promises made during the election campaign. These ranged from $3.4 billion by the B.C. Conservatives, to $10.3 billion by the NDP, and a staggering $18.7 billion by the B.C. Green Party. These commitments will only deepen the fiscal challenges and could increase provincial debt by over $50 billion in just two years.

B.C.’s fiscal and economic trajectory is deeply concerning. As you shape the next government and plan your legislative work, we urge you to give serious attention to the state of the economy.

Our province has all the building blocks for a strong economy: abundant natural resources, a well-educated and skilled workforce, and a reputation for stability and the rule of law. From cutting-edge technologies to the natural resources needed to produce them, B.C. has the assets to position itself as a leader in the global economy.

In a world seeking reliable partners during uncertain times, B.C.’s potential is immense. However, action is needed now to reverse the province’s economic underperformance. The next government must prioritize economic health if it truly wants to make life more affordable and create well-paying employment opportunities.

Thank you for your commitment and willingness to serve British Columbians. We look forward to working with all of you.

Sincerely,