Greg D’Avignon, CEO of the Business Council of B.C. (BCBC/Youtube)

Greg D’Avignon, CEO of the Business Council of B.C. (BCBC/Youtube)

COVID-19: Cut sales tax, boost daycare, B.C. business group urges

Business Council of B.C. wants local government reform

B.C. should extend its deferral of sales taxes collected by struggling businesses to the end of 2020, and cut the seven-per-cent tax rate in half as a first step to converting it to a value added tax.

That’s among the measures recommended by the Business Council of B.C. in their COVID-19 recovery plan. Another is to add new daycare capacity to give parents the ability to return to work and keep private sector employers going.

Business Council CEO Greg D’Avignon said reforming local government is a vital step in getting the private sector economy back to full speed. And the problem gets worse in big metropolitan areas with a patchwork of municipalities.

“It can take as long as six years to get building permits done, which is longer than the Second World War before you can even start building,” D’Avignon said in an interview with Black Press Media.

“Speeding up decision-making varies by municipality, but it’s been well-known that B.C. has one of the most laissez-faire approaches to municipal governance of anywhere in the country. It manifests itself particularly as centres become more urbanized, whether it’s in the Okanagan, on the Island and obviously the Lower Mainland from Chilliwack through to Pemberton.”

The report, called Stronger Tomorrow, Starting Today, makes 24 recommendations, with increasing child care options high among them.

“There is plenty of vacant retail and office space in cities and towns that can be repurposed to increase capacity for child care,” the Business Council says in the report, released July 29. “This could be coupled with a rapid re-skilling initiative led by the province and post-secondary education institutions to launch programs to train more child care providers who can support B.C. families and children in the COVID period and beyond.”

Premier John Horgan’s minority NDP government has made child care a priority for three years, and the opposition has repeatedly accused it of creating more announcements than actual spaces. The latest announcement on July 22 was that 16,800 new spaces have been funded in the past two years, with extra training spaces to deal with chronic staff shortages.

Keeping daycare facilities going during the pandemic has been helped by temporary emergency funding. MLA Katrina Chen, minister of state for child care, says the funding has reached 4,500 facilities around the province with 85 per cent of them operating.

RELATED: Subsidized child care pilot projects extended to 2021

RELATED: B.C. prepares for COVID-19 economic recovery plan

Finance Minister Carole James has reserved a $1.5 billion financial recovery fund from the $5 billion borrowed in spring to provide pandemic relief. After a consultation period, deployment is expected in September.

The Business Council report calls for a broader value-added tax to replace the PST.

“We are not proposing a return to the federal-B.C. harmonized sales tax that voters narrowly rejected in the 2012 referendum,” the report states. Details would be up to government and the public, but the proposal is to broaden the sales tax base and lower the rate, with a low-income credit similar to the federal Goods and Services Tax.

Tax reform is part of the Business Council’s strategy for reviving private sector investment, in the traditional forest and resource industries as well as technology. The report renews the council’s call for reducing top personal income tax brackets, which have risen both federally and provincially to more than 50 per cent of income combined.

“The first thing we’re saying to the NDP is don’t raise those further,” said Jock Finlayson, the Business Council’s chief policy officer, adding that high personal taxes deter investors and entrepreneurs without raising much revenue for the government.

B.C.’s carbon tax is also targeted for reform, recommending it follow the federal carbon tax that allows protection for exporting industries.

“Today, B.C. natural resource companies, agricultural producers, manufacturers and transportation companies are paying hundreds of millions of dollars in carbon taxes every year, while competitors elsewhere do not face the same tax burden,” the report says. “B.C.’s current approach to carbon pricing is undermining the commercial viability of some of the province’s leading export industries and threatens to accelerate ‘carbon leakage’ as industrial production in the natural resource and manufacturing sectors migrates out of B.C. to jurisdictions with no or less burdensome carbon pricing schemes.”


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Google Maps screenshot taken at 7:30 a.m.
TRAFFIC: Westbound Highway 1 crash blocking left lane in Langley

Incident at 264th Street slowing morning commuters

Elias Pettersson and the Vancouver Canucks drew a large crowd to the Abbotsford Centre in 2019. Canucks management hopes the crowds return for the planned AHL team this fall, and early returns are positive. (John Morrow/Abbotsford News)
Canucks: ‘Incredible’ early interest for Abbotsford AHL tickets

Team has had a strong response to both e-mail information and priority ticket lists

Red dot shows location where fisherman was rescued by boater on Friday, May 7, 2021. Other fisher still missing presumed drowned after boat swamped on Fraser River near Vedder/Sumas confluence. Rescued man swam to shore after boat sank, while friend is still classified as missing as of May 10. (City of Chilliwack map)
Fisherman still missing after boat flipped on the Fraser River

One man made it out, other still missing, after anchor got snagged in the Fraser near Chilliwack

Corina Rochon has been working the front lines of the pandemic in the intensive care unit at Abbotsford Regional Hospital. She is also an instructor in the nursing program at University of the Fraser Valley.
Pandemic the most challenging of Abbotsford nurse’s 16-year career

Corina Rochon works front lines at Abbotsford Regional Hospital

Joan Septembre went for a weekend hike at Lindeman Lake, parking next to a vehicle that had two windows smashed in. (submitted photo)
Thieves active at Lindeman Lake and other parking spots along Chilliwack Lake Road

The hiking community is lamenting an uptick in car theft and vandalism as the weather gets nicer

A bullet hole is seen in the windshield of an RCMP vehicle approximately 4 km from Vancouver International Airport after a one person was killed during a shooting outside the international departures terminal at the airport, in Richmond, B.C., Sunday, May 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Homicide team IDs man in fatal YVR shooting as police grapple with spate of gang violence

Man, 20, charged in separate fatal shooting Burnaby over the weekend

RCMP Assistant Commissioner Dwayne McDonald pauses while speaking during a news conference in Burnaby, B.C., on Monday, May 10, 2021. THE CANADIAN PRESS/Darryl Dyck
‘We will do everything we can,’ B.C. police say to reassure public amid gang violence

Active officers in the Lower Mainland, including those from the Integrated Homicide Investigations Team, are being recruited to an ‘inactive potential future police service’

Dr. Bonnie Henry talks about phase two in B.C.’s COVID-19 immunization plan. THE CANADIAN PRESS/Chad Hipolito
All of B.C. will eventually ease out of COVID-19 restrictions at same time: Henry

People who have received two doses of a vaccine can’t yet return to post-pandemic activities with each other, she says

Winnipeg Jets’ Andrew Copp (9) and Edmonton Oilers goaltender Mike Smith (41) watch an incoming shot during second period NHL action in Winnipeg, Monday, April 26, 2021. THE CANADIAN PRESS/Fred Greenslade
‘Very jealous’: Canadian teams can’t take advantage of NHL’s relaxed COVID-19 rules

League eased some tight COVID-19 health and safety protocols over the weekend for fully vaccinated clubs

A map of Huu-ay-aht-owned forestry cutblock. (SUBMITTED PHOTO)
B.C. First Nations restrict access to territory in wake of forestry standoffs

Huu-ay-aht set up checkpoints after heated and dangerous incidents on southwest Vancouver Island

RCMP are searching for Philip Toner, who is a ‘person of interest’ in the investigation of a suspicious death in Kootenay National Park last week. Photo courtesy BC RCMP.
RCMP identify ‘person of interest’ in Kootenay National Park suspicious death

Police are looking for Philip Toner, who was known to a woman found dead near Radium last week

Vancouver Canucks goaltender Thatcher Demko (35) makes a save on Winnipeg Jets’ Nate Thompson (11) during second period NHL action in Winnipeg, Monday, May 10, 2021. THE CANADIAN PRESS/Fred Greenslade
Vancouver Canucks see NHL playoff hopes dashed despite 3-1 win over Winnipeg

Montreal Canadiens earn final North Division post-season spot

The B.C. legislature went from 85 seats to 87 before the 2017 election, causing a reorganization with curved rows and new desks squeezed in at the back. The next electoral boundary review could see another six seats added. (Black Press files)
B.C. election law could add 6 seats, remove rural protection

North, Kootenays could lose seats as cities gain more

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