Business groups have been advocating for years that local approvals for construction in B.C. are too long and restricted, and that B.C.’s outdates sales tax deter business investment. (Black Press Media file photo)

Business groups have been advocating for years that local approvals for construction in B.C. are too long and restricted, and that B.C.’s outdates sales tax deter business investment. (Black Press Media file photo)

B.C. residents worried about COVID-19 deficit, business survey finds

Respondents support faster local approvals, value added tax

With B.C.’s operating deficit heading past the $13 billion mark due to COVID-19, more than four out of five B.C. residents are concerned that tax increases and service cuts are coming, according to a new survey from the Business Council of B.C.

The business group commissioned a public opinion survey from Ipsos Public Affairs to test support for its “Stronger Tomorrow, Starting Today” recovery plan, to support businesses hit hardest by the pandemic and public health measures to contain it. The plan includes placing a time limit on municipal project approvals and restructuring B.C.’s sales tax to give the private sector a better chance to invest and recover.

The survey was conducted shortly after Premier John Horgan won a majority mandate in the Oct. 24 election. It found 81 per cent agreement that the B.C. government should do more to support businesses, and 79 per cent are concerned that the NDP’s election promises are going to lead to higher taxes or debt.

Business council CEO Greg D’Avignon said a surprising result of the survey is the high level of concern among younger people as well as older people who have lived through Canada’s struggles with debt and deficits before.

“They’re seeing this money fly around all over the place,” D’Avignon said in an interview with Black Press Media Dec. 1. “Everyone has a story about getting money they didn’t think they deserve. They know it’s coming from somewhere, and they know they’re going to have to pay it back at some point.”

Horgan’s campaign promise of $1,000 payments to most B.C. households has no requirement to show lost income. It comes on top of federal relief spending that has been shown to have greatly exceeded income losses across Canada, with more deficit spending promised this week by federal Finance Minister Chrystia Freeland.

VIDEO: Federal deficit nears $400B, more spending to come

RELATED: B.C. legislature sits Dec. 7 for COVID-19 payments

A recent analysis by CIBC found Canadians are saving money at unprecedented rates, due to what economists describe as poorly targeted and excessive federal relief payments that many people have banked because they didn’t need the money.

“COVID-19 has triggered the largest cash accumulation in recorded history,” the bank’s economists found.

And a recent report by the Organization for Economic Cooperation and Development showed household incomes in Canada rose 11 per cent in the second quarter of the fiscal year, despite a sharp contraction in the economy. The OECD calculated that Canadian labour income fell by more than $100 billion in the second quarter, but government transfers grew by $225 billion in the same period, leaving Canada with the largest deficit increase of any developed country.

“With a new government in place and prospects of vaccines being available in 2021, now is the time to be thinking about how to get B.C. businesses back on their feet, how to recoup the 100,000 full-time jobs lost in the last year, and how to reinvigorate the private sector, which will drive the necessary government revenues to provide essential supports and address mounting public debt,” BCBC president Greg D’Avignon said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC politicsCoronavirus

Just Posted

Former UFV Cascades wrestling coach Arjan Singh Bhullar is now the ONE heavyweight champion after defeating Brandon Vera via TKO in round two on Saturday in Singapore. (ONE Championship)
Former UFV wrestling coach wins MMA championship

Arjan Singh Bhullar captures ONE heavyweight title, first Indian origin fighter to achieve honour

Jamie and Erin O’Neill, who are renting a 107-year-old house at 45837 Knight Rd., are wanting to save it from the wrecking ball and move it when it comes time for the owners of the house to build a new house on the property. They are pictured here outside the home on Tuesday, May 11, 2021. (Jenna Hauck/ Chilliwack Progress)
Chilliwack couple wants to save 107-year-old home from demolition, asking for community support

O’Neills have less than year to find new property, raise funds to move Knight Road house

Archway Community Services is among local agencies receiving one-time grants through the Civil Forfeiture Crime Prevention and Remediation grant program. (Photo courtesy of Archway)
Nine Abbotsford projects receive $345K in civil forfeiture grants

Funds awarded to projects aimed at prevention of crime and domestic violence

Karl Eha showing off a fishing rod that was originally made in 1972. Patrick Penner photo.
Mission’s Eha Sports offering store credit for old fishing gear, plans to donate to poor Latin American children

Karl Eha recalls time as hungry kid in post-war Germany, says fishing kept him full

Vehicles line up for the Greater Vancouver Drive-Thru Food Truck Festival at the Chilliwack Coliseum parking lot on March 27. The touring event comes to Abbotsford this weekend, May 15 and 16. (Photo: Jenna Hauck/Chilliwack Progress)
Drive-Thru Food Truck Festival takes place in Abbotsford

Event runs May 15 and 16 at Tradex, featuring 12 trucks each day

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

Astra Zeneca vaccine waits for injection in a Feb. 3, 2021 file photo. A Langley man has become the second B.C. resident to suffer a blood clot following an injection. (AP Photo/Frank Augstein)
B.C. man required emergency surgery after AstraZeneca vaccination

Shaun Mulldoon suffered ‘massive blood clot’ after jab

Chilliwack’s Kile Brown, performing as drag queen Hailey Adler, dances and lip syncs in front of hundreds of people during the inaugural Chilliwack Pride Barbecue at the Neighbourhood Learning Centre on Aug. 24, 2019. Monday, May 17 is International Day Against Homophobia, Transphobia and Biphobia. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of May 16 to 22

International Day Against Homophobia, Talk Like Yoda Day, Sea Monkey Day all coming up this week

Bradley Priestap in an undated photo provided to the media some time in 2012 by the London Police Service.
Serial sex-offender acquitted of duct tape possession in B.C. provincial court

Ontario sex offender on long-term supervision order was found with one of many ‘rape kit’ items

Rich Coleman, who was responsible for the gaming file off and on from 2001 to 2013, was recalled after his initial testimony to the Cullen Commission last month. (Screenshot)
Coleman questioned over $460K transaction at River Rock during B.C. casinos inquiry

The longtime former Langley MLA was asked about 2011 interview on BC Almanac program

Steven Shearer, <em>Untitled. </em>(Dennis Ha/Courtesy of Steven Shearer)
Vancouver photographer’s billboards taken down after complaints about being ‘disturbing’

‘Context is everything’ when it comes to understanding these images, says visual art professor Catherine Heard

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Restrictions will lift once 75% of Canadians get 1 shot and 20% are fully immunized, feds say

Federal health officials are laying out their vision of what life could look like after most Canadians are vaccinated against COVID-19

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read