As trusted economists and policy advisors to business and government leaders, the Council relies on sound, evidence-based analysis to inform its policy recommendations. Through diligent tracking of BC’s economic performance, we help identify the opportunities and challenges the province must navigate in order to reach its full potential.
HST Era Food Services Receipts Rose and Fell, But Stronger Growth has Followed the Return to PST
BC reverted back the PST system on April 1st of this year. It is still too early to determine what specific impacts this important change in tax policy will have on BC’s economy. Economists and public finance scholars are virtually unanimous in believing that shifting back to the PST will have negative long-term consequences in key areas such as business investment, productivity and the growth of real wages. However, the picture is a bit less clear from a shorter-term perspective.
One sector where the return to the PST may have a favourable near-term impact is the food services industry. This is because the HST raised the tax-inclusive price of meals purchased from food services establishments, whereas restaurant meals are not subject to the PST – meaning the retail price is lower for consumers. While it is still early, data on restaurant sales receipts are available through July of this year, providing a full quarter of sales figures under the reinstated PST. The graph below shows the total value of all food services receipts in BC (full service and limited service food establishments, drinking places and special food services such as caterers). The data are seasonally adjusted to better show short-term changes and trends.
New study finds British Columbia's corporate community contributes $370 million annually to the province's charities
Today, the Business Council of British Columbia released a first-of-its-kind study conducted by MNP which found that British Columbia’s business community contributes approximately $370 million in cash donations, sponsorships and partnerships to community and charitable organizations across the province each year. This is the first comprehensive study on the current levels of overall charitable contributions and partnership made by BC businesses in the province.
BCBC study conducted by MNP finds corporate community contributes $370 million annually to the province's charities
Ono October 18th, the Business Council of British Columbia released a first-of-its-kind study conducted by MNP which found that British Columbia’s business community contributes approximately $370 million in cash donations, sponsorships and partnerships to community and charitable organizations across the province each year. This is the first comprehensive study on the current levels of overall charitable contributions and partnership made by BC businesses in the province.
Submission: Business Council Pre-Budget Submission to the Select Standing Committee on Finance, Province of BC
The Business Council of British Columbia is pleased to provide this submission to the Select Standing Committee on Finance and Government Services, outlining our views and advice on the 2014 provincial budget to be presented next February.
BC Agenda For Shared Prosperity Final Report
September 25, 2013 (Vancouver, BC) – The Business Council of British Columbia and the British Columbia Chamber of Commerce today released the final report of the BC Agenda for Shared Prosperity initiative. For a year, the two organizations have sought expert and community-based answers to the question: “How can BC become a more prosperous province for all British Columbians?”
British Columbia's Resource Sectors are the Foundation of a Diversified Economy
A review of BC Business Magazine’s Top 100 list of British Columbia companies by revenue for 2012 reveals the province’s economic mosaic, showcasing diverse organizations such as Telus, HSBC Bank Canada and Finning International. It also reveals the extent to which the foundation for British Columbia’s economic prosperity is our natural resource sector. More than 20 of the top 50 private sector companies are directly involved in mining, forestry or natural gas, and there are dozens more throughout the list which act as service providers to these core industrial sectors.
Productivity: BC's Position and Why We Should Care
Over the long term, productivity levels and growth rates are the most important factors determining the evolution of the standard of living in any economy. In more productive economies workers typically receive higher wages and governments have more resources available to pay for services.
Finlayson: It's a mistake to ignore Japan (Troy Media)
Japan may be in a stronger financial position than some other nations with proportionately smaller government debt burdens
Working Age People Drive Inter-provincial Migration
After many years of a net inflow of people from other parts of Canada, BC is now in a period of net interprovincial outmigration. As the graph below depicts, net migration tends to cycle up and down, largely reflecting relative economic strength and job opportunities. This is the fourth period of negative interprovincial migration BC has experienced since 1970.
New Census and National Household Survey Highlight Key Demographic Trends in BC
Statistics Canada has started to release data drawn from its 2011 census and a major National Household Survey which the agency undertook at the same time. The results confirm what most people already know: the population is aging, with the front-end of the baby boom generation having reached 65 in 2011; Canada’s society is urbanizing, as more of us are living in large and mid-sized cities; there are more one-person households, reflecting the high incidence of divorce as well as longer life spans; and the workforce and population are becoming more multi-ethnic, as immigration continues to shape the nation’s demographic profile.
All of these national-level trends are certainly evident in British Columbia.
D'Avignon: Why we should keep an eye on BC's core services review
There is nothing easy about governing in tough economic times, but it can provide the impetus to assess priorities, focus resources and think more innovatively about the provision of public services.
While governments typically have internal checks and balances to ensure new budget expenditures are done in a systematic manner through the Treasury Board, cabinet and a variety of budget development processes, in Canada more comprehensive reviews of existing expenditures have tended to be done on a more ad hoc basis.
Frequently, these ad hoc reviews have been linked to changes in government and a desire for new approaches that meld political and policy directions to re-shape government. However, in recent times many of these reviews have been driven less by ideology and more by fiscal and technological imperatives.
Submission: Letter to Honourable James Moore re Telecommunications Policy
Correspondence sent on behalf of the Business Council's membership on a matter of national significance, and of considerable importance to British Columbia, pertaining to telecommunications policy, and specifically the regulatory framework for the sector which recently has been under review by Industry Canada.
Exports, Skills and Incomes
Small open economies depend heavily on trade to stimulate growth, provide employment and sustain incomes. The development of competitive export-oriented industries is particularly important for small regional economies that, by definition, aren’t able to reap the economic advantages associated with having large internal/domestic markets. British Columbia is a good case in point.
Update on the BC Government's Financial Health
This week’s release of the 2012-13 Public Accounts provides a timely opportunity to review the provincial government’s financial position and the underlying trends in the public finances. Produced by the Office of the Comptroller General, the Public Accounts cover the financial activities of all provincial Ministries and Crown agencies on a consolidated basis. It is the best available source to follow what is happening with the government’s activities in the area of spending, revenues, borrowing and debt management.
What does the new document show?
All Quiet on the Inflation Front
Statistics Canada’s latest update on the Consumer Price Index (CPI) confirms that inflation remains muted across the country and all but invisible here in British Columbia. This may come as a surprise to those convinced the cost of living is climbing, but an examination of the full array of consumer purchases indicates an absence of apparent upward pressure on the overall price level.
Mid-Year Update: BC Economy Slows in 2013, Rebounds in 2014
Against a subdued global backdrop and fairly soft domestic economic conditions, the near-term growth outlook for BC has been trimmed. We now expect real GDP to increase by a sub-par 1.6% in 2013, which is still a bit better than the BC government’s 1.4% projection in its recently tabled budget. At the start of the year we thought that a mid-year pick up in exports and some additional investment spending would lift the province’s GDP growth rate above the 2% mark. While an improved external economic setting will eventually translate into stronger growth for BC, the timing for this positive turn has been pushed back.
Finlayson: Get Ready for an Underperforming Canadian Economy (Troy Media)
It’s hard to believe, but true: Canada and the United States are now entering the fifth year of economic recovery from the recession that hit both countries over 2008-09.
In the United States, the downturn first took hold in late 2007 and extended through the next 18 months. After enduring its worst slump in 50 years, the American economy officially stopped shrinking in June 2009. Since then, the U.S. has enjoyed 15 consecutive quarters of growth in inflation-adjusted gross domestic product (GDP), although the expansion has been sluggish by historical standards. Indeed, America’s economy has been growing at barely half the pace typical of previous recession-recovery cycles. Moreover, per capita GDP has yet to return to its 2007 level, and employment remains well below its pre-recession peak.
Good News: Canada (and by extension BC) is Sustainably Competitive
Whether we like it or not, today the wealth of a nation is primarily measured by its Gross Domestic Product, which is an annual summation of the value-added of the goods and services produced within a country's borders in a specific time period. However, what about the value of things that are uncounted in GDP but still integral to the functioning of our economic, social and governance systems?
Surge in Cross Border Shopping Weighs on Retail Sales in BC
The additional consumer purchasing power stemming from the stronger Canadian dollar, recent increases in the duty-free exemptions, and the large gap between gas prices in Metro Vancouver and Washington state have all contributed to a recent jump in cross-border shopping.
British Columbia should continue to focus on Building Connections with Asia
More so than other jurisdictions in Canada, BC’s economy is being reshaped by Asia’s influence on the global stage. The sheer size of the population in the region suggests that BC should be doing everything it can to continue to leverage the economic benefits coming out of Asia.