Panel data provided by Madison's Canadian Lumber Reporter.

Prince George Business and the Provincial Budget

By

Now that the latest BC budget has been released, we need to ensure that the provincial government moves forward with some of their announced initiatives. This means we have to continue to ask questions and ask for clarification around some of the budget announcements. While we are not here to take exception with any part of this budget, the goal is to ensure that Prince George businesses receive the maximum possible benefit. Some of the areas that require further consultation and explanation include; skill and training, research and innovation, PST, luxury vehicle tax, transportation infrastructure, and home owners grant. 

While all business owners applaud the governments’ announcement of an additional $400 million over four years to increase training and skills development, we need to ensure those funds are spent in the most productive method possible. Hence, there are some further areas that need clarification and commitment. It is imperative that these funds are spent sooner rather than later. If the provincial government back loads this spending we will see an increasing gap between the number of skilled people available and those that are required over the next few years. 

Even though this budget covers the whole province, skills training and development is a particular concern to areas in the province that are focused on natural resources extraction, such as Prince George. It is vital that these new funds are allocated to areas that are going to see economic development in the natural resource area, or are already in that position. If a majority of funds are disbursed in the lower mainland, it is very unlikely that we will see those newly trained people in this region. This is on top of the need for these people to be trained for conditions, such as weather and equipment that are prevalent in this area.
One of the possible solutions is to significantly increase the existent training and skill development programs in Prince George. This could likely be done under the umbrella of the College of New Caledonia, as it already has much of the infrastructure and expertise in place. This would also assist in retaining people once they have completed their training. This is the same argument we have seen when Dr. Jago proposed a medical school at UNBC. We already know that people are more likely to put roots down if they have spend time in an area. It certainly doesn’t make sense to train people in the lower mainland when they are from that area and then expect that they will be more than willing to move 500 miles north. It is crucial that we train our people here. 

Research and Innovation has the same issues as skills and training. Specifically, we need to ensure that Research and Innovation is supported in areas outside of the lower mainland. This includes not only encouraging firms and organization to locate in Prince George, but also to support projects and research that is already being done through out this area. We applaud the move to increase the small business venture capital tax credit program. However, we also need to ensure venture capital funds are available to firms in Northern BC. At present, most venture capital ends up in the lower mainland. 

While we have finally seen an increase in the luxury tax threshold, a move which is applauded by Prince George businesses, we need to ensure that the new amount is adjusted on a regular basis. The minimum suggested adjustment should be tied to the Canadian Price Index. Vehicle costs are constantly rising and the luxury tax threshold should follow. 

Unfortunately the much anticipated decrease in the Provincial Sales Tax (PST) did not materialize, except for a few specific items and services. This will without doubt have a negative impact on Prince George businesses as they compete with firms located in Alberta. While we understand that the provincial government needs the revenue to pay for some of their projects, we note that a reduce sales tax will help to promote spending. Perhaps the next budget will address this issue. 

An important issue is in regards to transportation infrastructure. While we note that this area received some indirect mention in the budget with the mention of the impacts of intense harvesting of the Mountain Pine Beetle, we in fact note that there is no specific mention of funds that are dedicated to this area. Also, while we note specific projects are noted around the southern portion of the province, no projects were given specific mention in the top two-thirds of our province. This brings about a gentle reminder to our provincial government. First, don’t allocate funds based on the number of voters, instead you do need to remember that this portion of the province contributes a significant portion of the provincial revenues. Second, in order to move those natural resources, we need to maintain and enhance our current transportation infrastructure. If we don’t, there will be a detrimental impact on our ability to move goods and people throughout this region. 

Finally, the increase in the home owners grant was long overdue in this province. Again, much like the luxury tax it needs to see regular adjustments.

Previous Story - Next Story



Return to Home