Prince George, B.C.- The  development of the provincial budget has been a very challenging process says Minister of Finance Colin Hansen. “We had built a surplus of just under $3 billion dollars, and we took a lot of criticism from those who said we should be spending that money, well that surplus has become a major shock absorber for the conditions we now face.”

 

Hansen was making the comments at the Opportunities North, Economic Summit which opened in Prince George this morning.

 

Premier Campbell says while the Federal budget, which will be introduced on Tuesday, will have an impact on B.C.’s budget, he is hoping for measures which will spark consumer confidence.

 

 

That is also the type of budget his Finance Ministry is trying to develop for the Provincial budget, although that stimulus doesn’t mean further tax cuts. “We have to be responsible to the services people want, they still want the health services, they still want the education services but let me give you an example. As we look to the future, now is the time for capital building. That capital investment can help build confidence. So you might have a 90 day investment plan that puts people to work in communities all over the province and then one from 90 days to 270 days so we get those construction families saying yes we’re going to do this. We compliment that with the wood first strategy and you’ve got forest families saying yup we’re going to have additional markets. We don’t pretend that British Columbia itself can drive all this but we can start. If we don’t do it at home it’s hard for us to say why don’t you do it in Alberta, or why don’t you do it with other governments”

 

The “wood first” strategy is something the B.C. government has been pushing with other governments in the country with an effort to increase the domestic market. The challenge will be to sell an idea at a time when housing starts are expected to drop by as much as 50%.

 

The Provincial budget will be delivered in mid February.