FINANCE

 

The Chamber believes the provincial government should continue the process of encouraging efficiency within ministries.

 

The Chamber appreciates the prompt manner in which the government introduces legislation to implement budget proposals.  However, in some instances, the proclamation of Bills or the release of regulations relating to certain laws has been delayed unduly.  It is our hope that the proposed streamlining of the federal budget process will provide a better atmosphere for the provincial government to announce a timetable whereby the proclamation of laws and the release of associated regulations will be accomplished within a shorter period of time.

 

The Chamber is concerned about government controlled supply costs, the sum total of taxes collected and the efficient use of those tax dollars.  In that regard, we believe government must reduce expenditures and annual deficits and improve in the areas of financial reporting and administration.

 

The BC Economy

In the past, the province has been heavily dependent upon a few key industries for its economic prosperity, namely agriculture, energy, forestry, mining and tourism.  These industries still supply the greatest portion of the province's income, and employment, but our economic potential will be enhanced through the continued growth of our emerging industries such as high technology and film, and through further diversification.  The health of these industries in turn affects the many varied business enterprises which directly or indirectly rely on them for income, and has a major impact on the tax dollars available to fund government services and social programs.

 

The large sums of new investment capital required for expansion and for replacement of old plants and equipment and for the development of these new industries will not be made available from domestic or international sources unless certain conditions exist.  Government must be prepared to ensure that prudent business people are able to realise a reasonable return on investment in relation to risk after payment of taxes, and investors have reasonable assurances that the legislative and regulatory ground rules will not be changed to the detriment of the investor after his or her funds have been committed.

 

It is essential that efforts continue in the development of secondary industries in BC to further process our primary products and to manufacture more of the products used in BC, increasing our capacity to export such products.  At the same time, efforts should continue to further enhance the service sector of the BC economy.

 

The Chamber believes that the provincial government should continue to direct its efforts and resources to the stimulation of economic conditions which encourage business investment through the following:

 

1. provincial, corporate and personal income tax policies that are competitive with other provinces and international trading partners and which encourage long term investment;

 

2. achievement of a common labour and management goal of improved productivity in and competitive position of BC industry;

 

3. reduction of the proportion of gross provincial output consumed by government services; and

 

4. consolidation of small business development programs and maintenance of clear legislation, rules and regulations relating to those programs.