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

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

Just Posted

Brett Alexander Jones is wanted on several warrants province-wide, in connection with multiple charges. Jan. 21, 2021. Kitimat RCMP photo
Kitimat RCMP searching for man wanted on several warrants province-wide

Jones is described as a five-foot 10-inches Caucasian man, with blond hair and blue eyes.

Administering naloxone to a person experiencing a benzo-related overdose event won’t help. Naloxone is used to neutralize opioids. (Jenna Hauck/The Progress file photo)
Northern Health warning drug users of potential benzo contamination

The drug does not respond to naloxone, and is being included in street drugs

The food hub survey showed that over 61 per cent respondents were looking to expand their business. (Priyanka Ketkar photo/Lakes District News)
RDBN’s food hub survey highlights producers’ needs

The project team to set up further discussion sessions with producers this year

Marianne and Peter Giesbrecht of the Vanderhoof Tim Horton’s donated $4306 to the St. John Hospital Auxiliary Society. “The funds were raised through the efforts of the 2020 Tim Horton’s ‘Smile Cookie’ campaign and graciously donated to the St. John Auxiliary towards the purchase of Panda IRES (baby warmer) for the hospital. What a great way to finish of 2020!” as stated in a social media post by the hospital auxiliary group. (St. John Hospital Auxiliary Society/Facebook)
Vanderhoof Tim Horton’s donates to St. John Hospital Auxiliary Society

Marianne and Peter Giesbrecht of the Vanderhoof Tim Horton’s donated $4306 to… Continue reading

Businesses continue to struggle under COVID-19 restrictions as the pandemic reaches the one-year mark. (B.C. government)
Another 564 COVID-19 cases, mass vaccine plan coming Friday

15 more deaths, community cluster declared in Williams Lake

A specialized RCMP team is investigating a suspicious trailer, which might have connections to the illicit drug trade, found abandoned outside a Cache Creek motel. (Photo credit: <em>Journal</em> files)
Police probe U-Haul trailer linked to illicit drugs left outside Cache Creek motel

Hazardous materials found inside believed to be consistent with the production of illicit drugs

Premier John Horgan leaves the podium following his first press conference of the year as he comments on various questions from the media in the Press Gallery at B.C. Legislature in Victoria, B.C., on Monday, January 13, 2020. THE CANADIAN PRESS/Chad Hipolito
Interprovincial travel restrictions a no-go, Horgan says after reviewing legal options

The B.C. NDP government sought legal advice as concerns of travel continue

Gem Lake Top, at Big White Ski Resort, seen at Jan. 8. (Big White Ski Resort)
Big White cancels $7.3M in lift tickets, accommodations due to COVID-19 orders

Since November, the ski resort has been forced to make several changes

Darlene Curylo scratched a $3M ticket, BCLC’s largest ever scratch and win prize. (BCLC)
Kelowna woman in shock after winning BCLC’s largest-ever instant-ticket prize

Darlene Curylo couldn’t believe her eyes when she saw the amount of money she’d won from a scratch ticket

While each person has different reasons for becoming homeless, a UBCO study shows they learn through their interactions with different services to perform ‘as homeless’ based on the expectations of service providers. (Contributed)
Kelowna homeless forced to ‘perform’ for resources, says UBCO study

One participant in the study said ‘It is about looking homeless, but not too homeless’

Gov. Gen. Julie Payette takes the royal salute from the Guard of Honour as she makes her way deliver the the throne speech, Wednesday, September 23, 2020 in Ottawa. THE CANADIAN PRESS/Fred Chartrand
Gov. Gen. Julie Payette resigns, apologizes for ‘tensions’ at Rideau Hall

Payette, who is the Queen’s representative in Canada, has been the governor general since 2017

Grounded WestJet Boeing 737 Max aircraft are shown at the airline’s facilities in Calgary, Alta., Tuesday, May 7, 2019. WestJet will operate the first commercial Boeing 737 Max flight in Canada today since the aircraft was grounded in 2019 following two deadly crashes. THE CANADIAN PRESS/Jeff McIntosh
Passengers unfazed as WestJet returns Boeing 737 Max to service on Vancouver flight

After a lengthy review process, Transport Canada cleared the plane to return to Canadian airspace

The top part of the fossil burrow, seen from the side, with feathery lines from the disturbance of the soil – thought to be caused by the worm pulling prey into the burrow. (Paleoenvironntal Sediment Laboratory/National Taiwan University)
PHOTOS: SFU researchers find evidence of ‘giant’ predatory worms on ocean floor

Fossils found the prove the existence of an ancient Taiwanese worm as long as two metres

Most Read