How to Spot a Business Friendly Council Candidate

Tuesday, October 11, 2005 09:45 AM

We have finally reached the period when residents can officially declare they are running for a seat on the Prince George City council as either mayor or councilor.

That means it’s time to start separating the business friendly candidates from those who think business is a swear word. Over the next few weeks, business people in Prince George will have a chance to hear and read the platforms of these candidates, as well as ask them some fact finding questions. So here’s a selection of topics and issues which should help identify those truly business friendly candidates.

One of the most glaring measures to use when rating the business friendliness of a candidate is to find out what their thoughts are on the tax rates for businesses in the City of Prince George. For example, do they feel that businesses should carry the brunt of the tax burden, and have no problem “hammering” business with higher taxes? As a benchmark to guide you, our current city council has touted themselves as being “business friendly.” My definition of business friendly was that council realized they needed to ensure Prince George has a vibrant and strong business sector. Unfortunately, the current council’s definition was more along the lines of “being friendly to business people.” This apparent difference came to light during the last round of city tax increases. Council decided to raise tax rates for business even though Prince George businesses were just coming out of an economic downturn. To add salt to the injury, council actually had the opportunity to reduce taxes for both business and residential but instead decided to spend their way to victory in this upcoming civic election. One has to ask the question, if this had not been an election year, would our current council have been as liberal with the spending of our tax dollars?

Another important area revolves around the amount of time the council candidates actually spend talking to and getting to know you, the business operator. While most candidates will argue that they converse with business operators on a regular basis, they are actually referring to the time they spend shopping for groceries and clothes. A truly businesses friendly candidate will take the time to come in and talk to you one on one, visit your business operations, and jot down your concerns and issues.

Of course getting them to put their comments on record goes along way to ensuring they are actually business friendly. While it’s easy to say you support business during a private conversation, it is much tougher to hold that stance when you have a hundred or more residents screaming in your ear. Unfortunately, politicians are usually guided by the loudest voice they hear on their quest to remain in power. I would suggest reviewing candidates past public comments, if possible, to ensure they don’t just cater to the flavor of the week philosophy.

This brings me to a final issue which has been around for a number of elections, the idea of a business vote. Currently business in Prince George pays nearly half of all city taxes collected. Not to mention the business license which to a business owner is just another tax. You may want to ask your civic candidates if they think business owners should have a voice in how this city is run. Their answer will certainly give you a clue to their position of being a business friendly member of the Prince George City Council.

-Myron Gordon owns TMSG Management Services Group, which provides management and financial services to growing businesses.

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Posted on Tuesday, October 11, 2005 09:45 AM in Money by

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Comments

Posted by: owl on October 11 2005 10:38 AM

A simple comment ....

Do you think a candidate who is a businessperson in town would be classified as a business friendly candidate?

Do you think all business people in town are of one mind as far as tax rates go?

Do you think tax rates are the only thing on a business person's mind when they vote for a councillor?

Finally, I understood that this City has one of the lowest components of business taxes in the province. That is not to say that is should be raised, butg it would certainly indicate how "business friendly" we are compared to other communities, at least by your primary definition.

Posted by: owl on October 11 2005 11:55 AM

In case someone is wondering why I have the impression that PG is very business friendly compared to other BC municipalities ....

See table 2 on page 4 of the linked report .... we are seen as the most equitable city when it comes to the business property tax component of our tax rate

http://www.cfib.ca/legis/bc/pdf/BCPTR.pdf

You may also wish to read this report which deals with industrial property taxes as well, showing that BC's taxation is lower than most of Canada with the exception of some very high rates in small communities which are shown in a table as part of appendix 2 on page 33

http://www.fraserinstitute.ca/admin/books/files/Property-Taxes.pdf

Note that Kamloops is the only larger City which stands out for being on this list of otherwise small communities.

Posted by: owl on October 11 2005 12:10 PM

So ... back to you Mr. Gordon

What exactly is it that you want of a candidate?

Hold the line with being one of the lowest in the province? Reduce business property taxes? Give licenses at no cost?

If this city were to do that, what guarantee would you be able to provide the the wanna be counicllors that business in this City would flourish; that industry would start building plants in this community because it is the most business friendly community in the province and in western Canada?

Have you ever considered the cost of industrial property in this community versus others in BC and communities in other provinces. I know at one time it was considerably higher here for light industrial property versus property in a city of comparable size on Ontario. Then there are the incentives given to businesses to locate in communities. Personally, I would think that those are the types of things which are much more important to a new business and somewhat in the control of local government when they are looking for a place to locate or relocate.

Your thoughts?

Posted by: brackencole on October 12 2005 12:22 AM

I have a good business friendly option. Why not just eliminate all business taxes? After all, businesses place no or little value on all that 'soft' mushy stuff about investing in the community and creating a more lively, attractive and welcoming city with a real community spirit, do they? Forget about that stuff. Just drop the taxes and watch all the business roll in, right? Sounds good to me, you may say.

Unfortunately, this is the wrong answer. What this town needs is its business leaders to recognize they have a stake in its rejuvenation, and should be willing to bear the costs of that effort. We cannot even begin to quantify the talent that has left this city because of its state, especially that of downtown. This talent is absolutely crucial to the economic health of our city and the interests of its businesses. Without building a city to attract people here, we will just watch other cities lure them away, and miss out on the innovation, creativity and energy they bring. It is amazing that Myron seems unable to comprehend this. Our economic health in the long term depends on long-term investment, and all members of the community, including businesses, have a stake in it. We need business leaders that have a vision for this city, and are not too timid to invest in it. To advocate a reduction in business taxes will probably be more harmful in the long-run for the very businesses we think they may benefit

Posted by: owl on October 12 2005 8:14 AM

Brackencole ... could it be that those people who understand the concepts you speak of have left the community becuase they recognized that this community is not the place where they will be able to conduct their business and they really need to get on with it rather than spend their time to re-educate the community.

;-)

Posted by: owl on October 12 2005 9:15 AM

Itg is too bad that those who plant such bombs as this opinion piece operate in a hit-and-run fashion. It would be wonderful to engage in an exchange of ideas so that those who are thinking of running for council can truly understand the position of such business individuals.

Here is a link to the type of promotion business-friendly communities conduct, for instance. Those quality of life aspects of a community cost money to provide. The conditions provide businesses with a "happy" pool of workers from which to draw, or make it easy for them to import employees from other parts of the country.

http://www.edforco.org/doing_business/qualityoflife/

A business friendly community assists existing companies to develop value added spin offs of their companies or encourages new companies to start such value added businesses.

Read the information below the picture ... 1,300 employees .... they make mouldings .... enough to make one sick to see the opportunities which Interior Oregon seems to capitalize on when we are still just producing palin or pulp and plain old lumber .....

Brink is the only bit of a light... but 1,100 to 1,300 employees is huge ...

http://www.edforco.org/doing_business/photo_tour/photo_gal2_p6.html

http://www.brightwood.com/sites.html

And, to be even more helpful to business, here is a page which comapares costs of doing business in Oregon versus 4 other "western states.

Notice the tax incentives for locationg in special developed industrial parks

http://www.edforco.org/doing_business/CostComparison/

That is what I call business friendliness which is beneficial to the entire community ... pin pointed assistance where one can see the effects of the policy versus a general tax reduction for all businesses where no cause and effect can be monitored ....