Select Standing Committee on Finance Releases Report

By 250 News

Victoria, B.C.- The all-party Select Standing Committee on Finance and Government Services has released its unanimous report on the Budget 2009 budget consultations.

The committee heard from over 2,900 British Columbians during the past two months, and the report makes 68 recommendations concerning the public's tax and spending priorities. However, in light of the uncertain economic environment, committee members encourage the government to proceed prudently with respect to new and expanded spending proposals in the context of current fiscal realities.

"We feel the report accurately reflects British Columbians' priorities for the next budget. But today we face global economic challenges, and that may make it difficult to fund all spending priorities that we
identify in our report," said committee chair Randy Hawes, MLA. The deputy chair, Bruce Ralston, MLA, agreed that "any changes to tax policy or spending will need to be considered in the context of the
province's fiscal situation."

Tax policy changes include: raising the small business corporate income tax threshold to $500,000, as well as tax credits for the digital media sector, the mining industry, home-based caregivers and for charitable
donations. The report also contains recommendations to simplify PST exemptions for agriculture and forestry, and to close the tax loophole on roll-your-own cigarettes.

For program spending, the Finance Committee's recommendations include:
further investments in agriculture and innovative aquaculture projects; and additional spending for mental health and addictions services, affordable housing, post-secondary education, and the provincial parks
system.

In terms of reallocation of savings, committee members are recommending  accelerated infrastructure spending take precedence over debt reduction to help cushion the effects of the global financial downturn.
Capital spending recommendations include: expanding public transit infrastructure provincewide, and developing rail infrastructure and commuter rail service on Vancouver Island in partnership with other
stakeholders.

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