BCBC In The News
Vancouver Sun: New Trudeau Senate appointee Yuen Pau Woo has both his fans … and panned in B.C.
[Excerpt] But a business community spokesman said Woo’s appointment is in fact a positive contribution to Canada’s economic interests.
Woo, who was en route to Canada from India Thursday and unavailable for comment, will help B.C. and the rest of the country take advantage of the “huge shift” in the global economy towards Asian markets, said Greg D’Avignon, president of the Business Council of B.C.
“It was an inspired choice.”
He pointed out that Woo, as head of the government- and private sector-supported HQ Vancouver, was instrumental in bringing eight head offices to Vancouver over the past 18 months.
Vancouver Sun: Help us or we may leave Vancouver, Lululemon tells Ottawa
[Excerpt] But economist Jock Finlayson, the business council’s executive vice-president, said Lululemon — operating in a country with a relatively small apparel industry — is the kind of company that needs to headhunt overseas.
“Canada needs well-educated and highly skilled foreign workers to help grow our companies and drive innovation, but the ‘regular’ immigration program tends to be very difficult to use to get this kind of talent, especially in a world where employers can’t wait 18-24 months to bring on the right person,” he told Postmedia in an email.
Ken Peacock on Roundhouse Radio
[14:30] BCBC Chief Economist Ken Peacock discusses the latest BCBC column in Business in Vancouver which delves into the province's need to cultivate more large companies in BC.
Vancouver Sun, Vaughn Palmer: B.C. businesses lobby for value-added tax, minus HST furor
The B.C. Liberals face growing pressure from the business community to reform the provincial sales tax to stimulate investment and improve productivity, particularly in the manufacturing sector.
But as business leaders themselves acknowledge, the politicians need to avoid reviving the backlash over the ill-advised move to harmonize the provincial sales tax with its federal goods and services counterpart.
The chamber’s concerns about the erosion of B.C.’s competitive position were echoed in a submission from the Business Council of B.C. While acknowledging that the province currently leads the country in jobs and growth, the council cited some longer term obstacles to investment in the resource industries and manufacturing.
“This is especially true of industries operating on the land base where First Nations claims, permitting and environmental rules, high and still rising energy costs, and social licence, poses challenges for existing operations and make it hard for companies to sanction new investment,” said the brief.
“Manufacturing for the most part is also at a competitive disadvantage. Among all developed country jurisdictions, B.C. now has one of the highest aggregate business tax burdens as measured by the average “marginal effective tax rate” for the business sector as a whole.
Such are the business council’s concerns, that it recommends the government postpone a promised one-point reduction in the corporate income tax.
Instead the estimated $275 million in tax room should be used to “finance new measures designed to spur business capital spending, innovation and growth and offset some of the damage that the restored PST regime has done to the province’s overall investment climate.”
For starters, the council would eliminate the sales tax on the electricity purchased by industrial and commercial firms, particularly those trading internationally. Then, in keeping with the value added model, begin lifting the PST on machinery, equipment and other business inputs.
“The PST will raise more than $6 billion in the current financial year,” says the council. “Some 40 per cent of this comes from tax levied on business inputs, everything from machinery and fixtures to construction materials, vehicles and legal services.”
Hence the call for the government to “reduce and over time eliminate the PST on business purchases of all types of machinery and equipment, software, vehicles and telecommunications and data services.”
The goal being to “stimulate investment in up-to-date capital equipment and the digital and other communications-related technologies that are fundamental to driving productivity gains and improved operational performance.”
The business council’s recommendations to the legislature committee were a short-form version of a longer brief to a second panel, the government-appointed commission on tax competitiveness.
Like the legislature committee, the commission will report out later this fall with recommendations that could be incorporated into the next provincial budget, due in February.
The Province: B.C. lumber towns braced for U.S. trade assault
B.C. is bracing for pain as the U.S. lumber industry stands poised to launch a punitive softwood lumber trade battle as early as Thursday.
That’s when a one-year “standstill” agreement tacked onto the 2006 Canada-U.S. Softwood Lumber Agreement expires, opening the door to years of costly litigation and likely mill closures and job losses.
Economists say Metro Vancouver is largely insulated from the economic impact, thanks to growth in sectors like housing construction and high tech.
“Much of the growth we are seeing in B.C. is urban-based, and urban areas of the province will not feel much impact from reduced logging and lumber production,” said economist Jock Finlayson, executive vice-president of the Business Council of B.C.
“The interior and the north will feel most of the pain.”
While B.C.’s economy overall will be hurt, the trade dispute won’t drive the province into recession because of other sectors like tourism, the film and TV industry, and the partially-recovering mining sector, he said.
Vancouver Sun: Tsawwassen Mills mall is a sign of 'reconciliation in action,' says local First Nation chief
[Excerpt] The mall’s opening comes a few weeks after the Business Council of B.C. and the B.C. Assembly of First Nations signed a new formal agreement designed to help lift indigenous communities out of poverty and build the province’s economy.
Council chair Marcia Smith, a senior vice-president with Teck Resources Limited, described the memorandum of understanding as the first of its kind in Canada and said it would give investors more confidence in B.C.-based projects.
“We are going to work together to build shared understanding of aboriginal rights and title issues, economic opportunities and the priorities of First Nations communities,” she said.
Reconciliation is a key theme of the memorandum. Gottfriedson pledged his commitment to the 94 recommendations of the Truth and Reconciliation Commission, and promised he would not support economic development that conflicted with the needs of indigenous people or threatened the environment.
The memorandum also contains a commitment to erasing some of the disadvantages First Nations face in terms of education, health care and social supports. After the signing, Gottfriendson said he hoped the agreement would bring opportunities for training and employment.
Vancouver Sun: Innovators need help to keep driving the B.C. economy
[Excerpt] In the past decade, high-tech was B.C.’s fastest growing industrial sector, according to B.C. Stats, but there remain barriers to starting and scaling up good business ideas.
The Business Council of B.C. in a report last month said the industry is limited particularly by a shortage of workers, locally and globally, and it called on the province to make innovation a priority through policy changes to encourage growth, to help B.C. businesses export, to use public sector procurement to spur businesses, to improve education, training and immigration, and to make tax changes to attract investment.
“There is no question that talent belongs on the top of the list,” said the report’s author, Jock Finlayson.
Attracting and retaining workers is the biggest challenge for B.C. in the innovation sector because countries worldwide are trying to attract the same trained employees.
The province needs to increase post-secondary funding of the STEM disciplines — science, technology, engineering and mathematics — especially engineering “because engineers are critical to enable companies to grow,” he said.
Finlayson said it’s important not only for the province to increase the number of workers trained for entry-level positions in the digital world, but to produce more masters and PhD students who have the vision to build companies beyond small startups.
“Grad students are increasingly required for growing an innovation economy,” he said.
And more foreign graduate students should be automatically allowed to stay in Canada on working visas once they’ve completed their degrees, said Finlayson.
A federal program already allows the province to fast track entry for 5,000 immigrant workers a year based on education, training and experience gained in Canada or elsewhere, through the Immigration Canada’s provincial nominee program.
“We’d like to see that doubled,” he said.
BNN: BC Premier Christy Clark counts on LNG to drive economy after real estate-fuelled boom
[Excerpt] While it is true B.C. has by far the strongest provincial economy in the country, Clark failed to mention a huge proportion of that growth has been borne on the back of what most economists consider unsustainable gains in the Vancouver real estate market. According to the Business Council of British Columbia, roughly 40 per cent of economic growth in that province is directly related to housing.
B.C. has taken shots at Alberta’s overreliance on energy before. In its February speech from the throne, the provincial government set its legislative agenda for the year by warning it must “stay vigilant” to avoid the mistakes its neighbour to the east has made when “over the decades, Alberta lost its focus.”
Despite that cautionary tale, B.C. appears no more focused today on avoiding a very similar fate to the one Alberta is now facing.
“The hot housing sector, while boosting the economy today, is creating a somewhat unbalanced economic growth dynamic in the province,” Jock Finlayson, chief policy officer for the British Columbia Business Council, wrote in a July 26th report. “It also leaves B.C. vulnerable to potentially adverse market shifts.”
Financial Post: Seattle and Vancouver look to create a West Coast hub for innovation
The Emerging Cascadia Innovation Corridor Conference held in Vancouver last week was the next step in Seattle’s and Vancouver’s drive to create a West Coast hub for innovation to help businesses in the region compete globally.
Keynote speakers, including Bill Gates Microsoft, co-founder and co-chair of the Gates Foundation; Satya Nadell, Microsoft CEO; Brad Smith, president of Microsoft; BC Premier Christy Clark; Washington Governor Jay Inslee; and Seattle Mayor Ed Murray, discussed the need for greater connectivity and alignment around education, biosciences, workforce, health care, transportation, and natural resources.
Greg D’Avignon, president and CEO of the Business Council of British Columbia, said one key focus of the initiative is fostering relationships both within startup communities and between investors and entrepreneurs to increase the availability of capital and other support.
“There’s a real opportunity for small businesses when you have larger companies like Microsoft, Amazon, Starbucks and Telus becoming incubators for small business vendors and service providers. Bigger companies provide access to talent, capital and the ability to scale to reach international markets,” he said.
D’Avignon claims Vancouver, and British Columbia in general, has more startups than any other region in Canada, with particular expertise in digital entertainment, special effects, biotech, life sciences, genomics and cancer care. “The University of British Columbia, for example, is a leading incubator for creating ideas for new companies moving forward,” he said, adding, Washington State is Number 1 for startups among the 50 states.
Vancouver Sun, Peter O'Neil: Don't 'sabotage' Canada on LNG, says B.C. business group
The Trudeau government would “sabotage” an enormous Canadian advantage in world markets by capitulating to environmentalist pressure to block an $11.4-billion West Coast liquefied natural gas project.
That is the B.C. business community’s warning in a letter to Environment Minister Catherine McKenna as the federal cabinet prepares to make its final decision on the Pacific NorthWest LNG proposal.
On Monday, Ottawa is expected to announce its verdict on a project that is a key component of Premier Christy Clark’s strategy to boost the B.C. economy and her chances of getting re-elected next spring.
The federal cabinet is expected to discuss the matter at a cabinet meeting Tuesday.
“We are writing to express our concerns with ongoing negative commentary from certain environmental groups who are opposed to fossil fuel development in Canada — and specifically, to proposed energy projects in British Columbia,” said Greg D’Avignon, president of the Business Council of B.C., in a letter that went to senior members of the federal and B.C. cabinets.
D’Avignon said that, contrary to arguments from environmentalist groups, Canadian LNG exports would allow Asian countries to transition away from more carbon-intensive methods of generating electricity. Such exports would also stimulate the national economy and create jobs and wealth, he argued.
If Canada doesn’t export LNG, other countries with worse environmental records would step in to fill the void, he said
“So it is difficult to understand why Canadian policy-makers would want to sabotage the country’s comparative advantage in energy resources,” the letter states.
BIV Radio: Ken Peacock
[43:25] BCBC's Chief Economist Ken Peacock joins BIV Roundhouse Radio to talk about his latest column in Business In Vancouver and why real estate is acting as B.C.’s economic buffer during the current energy downturn.
Tech Vibes: Vancouver, Seattle Eager to Create 'Cascadia Innovation Corridor' Between Two Cities
The creation of a new global hub for innovation and economic development was the focus of a conference held this week in Vancouver.
The Emerging Cascadia Innovation Corridor Conference brought together business and government leaders to explore the potential for joint partnerships in education, transportation, university research, human capital and other areas. The conference was jointly hosted by the Business Council of British Columbia, the Washington Roundtable and Microsoft.
Leaders on both sides of the border acknowledged the opportunity to create a single interconnected region that could be more competitive in today’s global economy—and took action to deepen relationships and strengthen partnerships. At the conference, Washington Governor Jay Inslee and British Columbia Premier Christy Clark signed a formal agreement that committed the two governments to work closely together to “enhance meaningful and results-driven innovation and collaboration.”
Seattle and Vancouver, the two cities at the heart of the new initiative, share a number of complementary strengths. And yet, according to a new Boston Consulting Group (BCG) study released at the conference, the level of connectedness between the two cities remains remarkably low for two cities so close together. While only 120 miles or 190 kilometers apart they behave more like cities that are thousands of miles apart.
“In an increasingly competitive global market for talent and capital, harnessing our collective strengths and the power of innovation will drive greater productivity and business growth across the region,” said Greg D’Avignon, Business Council of British Columbia President and CEO. “We welcome leading thinkers from both sides of the border to British Columbia to discuss how improved collaboration will create greater prosperity for the benefit of all residents in B.C. and Washington State.”
The region has the “potential to become an important innovation corridor,” but doing so will require regional leaders work together, the study said. This could be possible through sustained collaboration aided by an educated and skilled workforce, a vibrant network of research universities and a dynamic policy environment.
604 Now: Bill Gates In Vancouver To Headline Conference
Microsoft founder, Bill Gates, will be attending the Emerging Cascadia Innovation Corridor Conference today in Vancouver.
Among B.C. Premier, Christy Clark, the Governor of Washington, Jay Inslee, and Microsoft CEO, Satya Nadellaare, will also be in attendance.
The conference will have a heavy focus on increasing connections between Vancouver and Seattle, with talks about “education, the workforce, health care, transportation and natural resources”, according to CBC.
Organized by the Business Council of British Columbia, the conference will hopefully allow for our province to establish a better link to places like Seattle, in order to work closely as one region.
Navdeep Bains, Canada’s Economic Development Minister told reporters that we need to “recognize that we live in a globally connected world.” With global companies becoming local competitors, Bains emphasized that having a stronger connection to the U.S. will create more networks.
Yahoo Finance: New Regional Effort Aims to Establish Cascadia Innovation Corridor
British Columbia and Washington leaders come together to strengthen collaboration, create cross-border opportunity
The creation of a new global hub for innovation and economic development is the focus of a conference being held today in Vancouver.
The Emerging Cascadia Innovation Corridor Conference brings together business and government leaders to explore the potential for joint partnerships in education, transportation, university research, human capital and other areas. The conference is jointly hosted by the Business Council of British Columbia, the Washington Roundtable and Microsoft Corp.
Leaders on both sides of the border acknowledged the opportunity to create a single interconnected region that could be more competitive in today's global economy and took immediate action today to deepen relationships and strengthen partnerships.
Seattle and Vancouver, the two cities at the heart of the new initiative, share a number of complementary strengths. These include a high quality of life, diverse communities, skilled and well-educated workforces, and strong economic and social ties to Asia. And yet, according to a new Boston Consulting Group (BCG) study released at the conference, the level of connectedness between the two cities remains remarkably low for two cities so close together. While only 120 miles or 190 kilometres apart they behave more like cities that are thousands of miles apart.
"In an increasingly competitive global market for talent and capital, harnessing our collective strengths and the power of innovation will drive greater productivity and business growth across the region," said Greg D'Avignon, Business Council of British Columbia President and CEO. "We welcome leading thinkers from both sides of the border to British Columbia to discuss how improved collaboration will create greater prosperity for the benefit of all residents in B.C. and Washington State."
CBC: Bill Gates in Vancouver for Emerging Cascadia Innovation Corridor Conference
Politicians, CEOs and academics from the Pacific Northwest will meet in Vancouver today to discuss creating a hub for innovation in the region.
B.C. Premier Christy Clark, Washington Governor Jay Inslee and Microsoft founder Bill Gates and Microsoft CEO Satya Nadellaare all scheduled to attend the Emerging Cascadia Innovation Corridor Conference.
The conference, which was organized by the Business Council of B.C., will focus on increasing connections between Vancouver and Seattle.The agenda includes talks on education, the workforce, health care, transportation and natural resources.
Canada's Innovation, Science and Economic Development Minister Navdeep Bains says we live in a globally connected world, so it's important to explore ways that Vancouver and Seattle can work more closely as one region.
"Global companies are becoming local competitors. We need to recognize that we live in a globally connected world," Bains told reporters after speaking to the Vancouver Board of Trade Monday.
"Any kind of relationship we can have with the United States for example, in this particular case, or other jurisdictions, to create those networks, to create those clusters, is something we should explore."
Bains said it's crucial to strengthen domestic talent through education and training, saying that learning to code is now equally as important as learning to read or write.
But he said immigration is also key to growing Canada's economy. He touted billions in investments the government has made in upgrading institutions and buildings and in research funding for individuals.
"Those kinds of investments attract the best and brightest to come to Canada, and then if we create an environment for them to grow their company, succeed and we provide a good quality of life, there's a good chance we'll be able to retain them."
He stressed that opening doors to immigrants doesn't mean taking away jobs from Canadians. The government wants to foster an environment for newcomers to create companies, he said.
"When individuals start up companies and grow companies, then they employ Canadians. That's the idea. We want to create an innovation culture."
Globe and Mail: Home sales eclipse resources as B.C.’s top source of revenue
British Columbia will haul in more tax revenue from the sale of homes this year than its combined revenues from the province’s historical economic foundation of mining, energy, forestry, Crown land tenures and natural gas.
The first fiscal update on this year’s budget, released on Thursday by Finance Minister Mike de Jong, forecasts the property transfer tax will bring $2.2-billion into the treasury, a massive increase from the $1.2-billion predicted in the budget introduced in the spring. Direct revenues from the province’s top five resources are forecast to total $1.8-billion.
Economist Jock Finlayson, executive vice-president of the Business Council of British Columbia, cautioned that the province’s economic growth, which is leading the country, is heavily reliant on a housing boom that is susceptible to a downturn.
“We estimate the residential real estate complex is generating up to 35 to 40 per cent of all economic growth in the province,” Mr. Finlayson said in an interview. That includes new home construction, the renovation industry, and the spin-off industries of intermediaries – lawyers, realtors, home inspectors and others – who profit from the turnover of real estate.
“For the B.C. government, it is producing something of a revenue bonanza. The question is, is it healthy in the long run to be dependent on it, and the answer is no, because you are vulnerable to a painful correction.”
The Province: B.C. indigenous leader Shane Gottfriedson 'a guy who wants to get stuff done'
A B.C. First Nations leader, coming from a region of the province known for producing aboriginal rights trail-blazers, is at the centre of two unique efforts to generate economic activity on traditional territories.
Assembly of First Nations B.C. regional chief Shane Gottfriedson, who took over that role last year from current federal Justice Minister Jody Wilson-Raybould, will participate in a “groundbreaking” joint announcement here later this month.
The B.C. wing of the assembly is working with the federal government and a national aboriginal business organization to assemble “cutting-edge data analytics,” including information from a new national poll of 1,100 indigenous businesspeople.
The goal is to provide government, industry and aboriginal leaders with new information on “capacity, opportunities and critical challenges” within First Nations across the country.
Gottfriedson, the former chief of the Tk’emlups Te Secwepemc (formerly Kamloops) First Nation, was also a key player this week in an “historic” accord with the B.C. Business Council to create a “Champions’ Table.”
The regular gatherings will let chiefs and chief executives to “explore opportunities, identify barriers and discuss policy approaches for increased clarity, decision making and capacity for both parties,” according to a joint news release.
That effort was supported by a $2.5-million contribution spread over three years from the B.C. government.
The goal is to educate both sides of the partnership.
“The corporate sector needs to understand how to do business on First Nations land, and First Nations need to understand how business works,” Gottfriedson said in an interview.
Gottfriedson, 50, wants to create a “black book” of economic development on indigenous territories. His favourite catchphrase is that nations must transition from “managing poverty to managing wealth.”
It’s not all talk, said B.C. Business Council president Greg D’Avignon.
“He’s going to make a difference in B.C., not just for First Nations people but for the province as a whole,” D’Avignon said Thursday.
“He’s a guy who wants to get stuff done, and that’s not uncommon among the next generation of First Nations leaders.
“But he has got a combination of vision and execution. There are lots of people who think in big terms, and there are some people who are good at doing.
Vancouver Sun, Editorial: First Nations-business agreement sets positive tone
The memorandum of understanding between the B.C. Assembly of First Nations and the Business Council of British Columbia released this week says all the right things.
It sets out in respectful terms that the parties agree to “establish and define a collaborative and constructive relationship”, they will “engage to create a formal ongoing dialogue”, and they will “advance an agenda that supports the delivery of shared prosperity.”
To be sure, these sound like motherhood statements with which no one could disagree. But we shouldn’t underestimate the power of words. As a veteran observer of aboriginal affairs told The Vancouver Sun editorial board this week, “First Nations don’t sign bullshit agreements.”
At a time when confrontation seems to greet every development, an understanding that emphasizes collaboration, economic reconciliation and a mutual desire to increase the prosperity of the province, marks a significant milestone in the economic relationship between business and First Nations. It is a giant leap from paternalism to partnership.
Of course, neither First Nations nor businesses were depending on this document to move forward. There are hundreds of existing agreements between businesses and First Nations worth billions of dollars that predate the agreement.
It was pure coincidence that at roughly the same time as this week’s deal was released, oilsands giant Suncor Energy announced that the Fort McKay First Nation in Alberta would acquire a 34-per-cent stake in Suncor’s East Tank Farm project, a bitumen storage terminal, for $350 million. The band will issue bonds to raise the money. While the deal had nothing to do with B.C., it reflects the spirit of the agreement, a BCBC spokesperson said.
The deal makes clear that there is still work to do to ensure First Nations have the tools they need to equitably share in B.C.’s prosperity — access to capital through loan guarantees, for example, something the federal government has been talking about since January.
The agreement states that the parties seek new opportunities to jointly advance the shared interests of sustainable economic development in B.C. through increased public engagement and understanding. That’s an objective many British Columbians will have no trouble buying into.
Vancouver Sun: B.C. First Nations, business council pledge economic support with new agreement
B.C. business and First Nations leaders are touting a new formal agreement as a way to help lift indigenous communities out of poverty and build the province’s economy at the same time.
A memorandum of understanding between the Business Council of British Columbia and the B.C. Assembly of First Nations, signed Tuesday morning in Vancouver, aims to bridge the divide between the two groups and help share the province’s economic prosperity.
“For far too long, we’ve administered poverty, and this is unacceptable,” said Regional Chief Shane Gottfriedson. “No longer can we accept the deplorable conditions faced by many of our nations. We need to collectively find ways to ensure that no nation is left behind, that all of our First Nations people are supported.”
Marcia Smith, chair of the business council and a senior vice-president with Teck Resources Limited, described the agreement as the first of its kind in Canada, and told an audience of businesspeople and indigenous leaders that it would give investors more confidence in B.C.-based projects.
“We are going to work together to build shared understanding of aboriginal rights and title issues, economic opportunities and the priorities of First Nations communities,” she said.
Globe and Mail: B.C. to restore Central Coast ferry service to boost aboriginal tourism
[Excerpt] The government’s announcements are part of a new economic agreement with the B.C. Assembly of First Nations. Ms. Clark said her government will provide up to $2.5-million over three years to support the continued development of the assembly’s First Nations Sustainable Economic Development Strategy.
The strategy will include establishing a roundtable of First Nations “economic champions” from all regions of the province to advise leaders, as well as improving employment data for on-reserve communities.
The Business Council of B.C. and the provincial Assembly of First Nations also announced Tuesday that they have signed what they say is a “landmark” memorandum of understanding to ensure sustainable economic development.