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British Columbia's Strong and Vibrant EconomySince 2002, the provincial government has followed a consistent, but ambitious strategy to re-energize the provincial economy. The strategy continues to reap dividends. In 2004 the economy fired on all cylinders and growth is estimated at 3.3 per cent. Job creation was also strong in 2004. Employment growth was 2.3 per cent, the third highest in the country. Since December 2001, British Columbia has had the highest rate of job growth of any province in Canada.
Investment by the private sector continued to be a source of strength in 2004. Housing starts totaled 32,925 exceeding the benchmark set in 2003. The 2002 Budget and Fiscal Plan first laid out the government's strategy for revitalizing and restoring confidence in BC's future. The core elements of this strategy have remained unchanged. The plan includes four key components:
The Plan has worked to restore confidence in British Columbia's economic future. The provincial economy is expected to grow by 3.1 per cent in 2005, the second highest in the country. In the coming year the government will work to maintain and build on this newfound confidence to ensure British Columbia's economy reaches its full potential. Stable and Competitive Policy FrameworkResponsible Fiscal Policy and a Competitive Tax StructureIn 2004/05, the government will meet its balanced budget target with a forecast surplus of $1.4 billion and the new three-year fiscal plan includes balanced budgets in 2005/06, 2006/07 and 2007/08. The achievement of a stable and sustainable fiscal policy is a basic requirement to build and reinforce consumer and investor confidence. BC's personal and business taxes are now competitive. The overall level of taxes for BC families is generally the second lowest in the country. The province also has the lowest personal income tax rates in the country for the bottom two tax brackets, meeting a key New Era commitment. Changes to restore investor confidence include:
Since Budget 2004, the fiscal situation has improved significantly and the government was able to meet its commitment to return the provincial sales tax rate to 7 per cent. This will return $270 million annually to British Columbians. DeregulationBritish Columbia's groundbreaking deregulation initiative has surpassed its one-third reduction target, reinforcing the province's commitment to developing an easier and more efficient regulatory environment for businesses. A cross-government count three years ago yielded a total of 382,139 regulations on the books in British Columbia. Since beginning the deregulation initiative, the government has eliminated 173,000 regulatory requirements and achieved a net reduction of more than 143,000 or 37 per cent. The government is committed to maintaining a zero percent increase throughout 2005/06 and will continue to identify further regulatory reduction and reform opportunities.
The focus will also be on improving quality to create a regulatory environment that is more effective, less costly, results-based and more flexible to promote competitiveness and innovation. The government will continue to seek the input of the business community on how best to achieve SMART (Sound, Modern, Accountable, Results-based and Transparent) regulation – a comprehensive and innovative approach to regulatory reform. Key achievements include:
InfrastructureThe government continues to make progress on last year's multi-year transportation infrastructure plan. The plan has been updated and now calls for provincial spending of $2 billion for the three years to the end of 2007/08. In addition, another $1.3 billion will be invested through federal cost sharing and partnerships with private partners and local governments, including cost-shared border crossing improvements. Major capital projects are underway across the province. A proposal call was issued for the $130 million Park (10-Mile) Bridge Project in Kicking Horse Canyon and construction continued on the Yoho (5-Mile) Bridge Project. Progress was also made on the $52 million Nisga'a Highway Project, as year six of the seven-year project was completed. Bids from proponents interested in constructing the new Okanagan Lake Bridge are currently under review. This more than $100 million project will improve safety, reduce traffic congestion and will create a more efficient transportation corridor in the Okanagan. Construction is now underway on a series of improvements along the Sea-to-Sky Highway and contracts for the remainder of this $600 million improvement project will be issued shortly. The upgrades will improve the highway's safety, capacity and reliability, both in support of the 2010 Winter Olympics and for the long-term future of corridor communities. Upgrades to roads at Ootsa Lake, Fort St. James, Vanderhoof and Prince George have supported the expedited removal of beetle-killed timber from those areas. Continued investments on Highway 37 are strengthening and resurfacing this critical route to support the heavy traffic generated by the province's mining industry. Substantial investments in bridge replacement and paving have kept 76 per cent of the province's main highways in good condition. 43 per cent of the side road system is now in good condition. Rehabilitation of these roads, which are so important to rural and Northern economies and communities, will continue. The $1 billion BC Rail Investment Partnership was concluded this past year, and British Columbians are already benefiting from it. The partnership has eliminated BC Rail's debt, opened the door for a new tourist passenger service to be developed and begun streamlining freight rail operations in our province. Part of the proceeds from the BC Rail partnership will be used to fund a $135 million Northern Development Initiative. Legislation to establish a trust and board has now been passed in the legislature, and progress is being made on setting up the required organizational infrastructure. The government remains steadfast in its commitment that the Northern Development Initiative will be managed by northerners for northerners. This past year, BC Ferry Services Inc. marked its first anniversary as an independent, commercial company. Since then, it has selected a proponent to build three new Super-C Class vessels through a contract worth $325 million. The ships will be built at no cost and no risk to B.C. taxpayers, an important milestone in the progressive development of our province's coastal ferry service. The new Super C-class vessels are among the first of BC Ferries' Newbuild program, which will see an additional 19 vessels built over the next decade and a half. The vast majority of these vessels will be small or intermediate open car deck ferries. The Richmond-Airport-Vancouver Rapid Transit Project (RAV) is moving ahead, providing B.C. with a tremendous opportunity to enhance our economy and improve our environment. TransLink has selected a preferred proponent, and the provincial government has authorized contributions of $435 million. Other partners, including TransLink, the Vancouver International Airport and the federal government, have made similar commitments for a total investment of $1.7 billion ($2003). This is a generational agreement that will create substantial new private sector investment and 6,500 person-years of employment, while reducing congestion and improving air quality. The private sector proponent will also invest in and operate the line, which will improve access and quality of life for commuters and residents in Greater Vancouver. The government's Transportation Investment Plan is facing increasing worldwide prices for commodities such as steel. The government is responding with a renewed commitment to the use of innovative partnerships as a means of ensuring British Columbia's infrastructure needs are met in a responsible and sustainable manner. These partnerships protect taxpayers by transferring risk, bring a fresh perspective and secure additional investment that might otherwise not be available. The strength of the provincial economy, combined with continued improvements in the working relationship with the federal government, is creating new opportunities to advance high priority infrastructure projects. This represents a critical step in building the economy for the future. Strategies for Key SectorsThe government continues to make progress in revitalizing and fostering renewed growth in key sectors of the economy. ForestryThe performance of the forest sector in 2004 was encouraging, but challenges remain. Over the next year, the government will move ahead with revitalizing the industry and responding to forest threats including Mountain Pine Beetle (MPB) and fire. Four main policy thrusts are to:
In 2003, legislation was passed that fundamentally changed the way the forest sector is managed. These changes include the reallocation of timber rights and market-based policy reforms to forest tenure and revenue administration. The objective is to create a more competitive, dynamic forest industry that contributes sustainable well-paying jobs to BC's economy. During 2004/05, market-based tenure reforms were implemented across the province with the result that transfers, sub-divisions and consolidations are easier, impediments to log flows have been removed and there are no longer policies that require the harvest of uneconomic wood. Progress was also made in moving to a market-based stumpage system with the launch of market-based pricing for the Coastal region on February 29, 2004. The market-oriented changes, coupled with improved markets for wood products, resulted in strong growth in Coastal timber harvesting in 2004. Interior harvesting also increased. During 2004, the implementation of the timber reallocation process continued. Company takeback volumes are now being translated into specific areas on a licence-by-licence basis. To assist in the transition to a more competitive, flexible industry, the government recently announced its intention to add $50 million to the BC Forestry Revitalization Trust. In addition, $50 million will be set aside for compensation to cover the cost of improvements made by forest companies to Crown land that will be taken back as part of tenure reallocation. The Forest and Range Practices Act (FRPA) and its regulations were brought into force on January 31, 2004. The Act creates a streamlined, science-based, results-oriented regulatory approach to conserve forest and range resources, protect human health and key habitats and to ensure effective enforcement. By focusing on practices on the ground, the regulatory requirements from the existing Forest Practices Code were reduced by 55 per cent. To ensure a seamless transition, agreement has been reached with industry to extend the timeframe for FRPA implementation to December 31, 2006. Negotiation of Forest and Range agreements with First Nations are continuing. To date in 2004/05 another 30 offers have been made and 17 agreements have been completed. Since September 2002, 39 Forest and Range agreements have been concluded. Throughout 2004, BC continued to work towards the resolution of the softwood lumber dispute. Dispute-related legal processes will continue until a resolution is reached. Over the past few years, the forests of BC have faced a two-pronged attack. The last two fire seasons have left 500,000 hectares charred. In addition, the outbreak of the Mountain Pine Beetle (MPB) has already affected 7 million hectares of BC's Interior and over the next decade is expected to damage or destroy 80 per cent of the Province's 12 million hectares of mature lodge-pole pine. At the end of 2004 there was over 280 million m3 of beetle-killed wood province wide. To address this infestation, the Chief Forester increased the Allowable Annual Cut (AAC) by 4.9 million m3 in the Prince George, Lakes and Quesnel Timber Supply Areas. To help maximize the return for this diminishing-value resource, the government will encourage new uses for the beetle-killed volume. Larger volumes will be made competitively available to non-lumber producers in areas with high infestation levels. Smaller opportunities, open to a full range of interests will also be offered. Diversifying the uses of MPB wood will create economic opportunities and support the economic health of affected communities. Maintaining the forest land base is critical to ensuring a stable timber supply and healthy communities that rely on the flow of benefits from productive forests. Most of the beetle-killed trees will remain usable for five to fifteen years and plans are being developed to harvest and reforest many of the affected areas by licensees. Other affected areas are on poor quality growing sites or too remote to warrant investment. The government will allocate $85 million through 2007/08 for a long-term, large-scale, reforestation program to speed the recovery from these natural disasters as quickly and efficiently as possible. Following the 2003 forest fire season, an independent review by Gary Filmon identified actions necessary to reduce fire hazards and improve fire preparation and response. Government accepted the report's recommendations and in 2004/05 increased fire-fighting resources with two additional air tankers and seven additional unit crews, initiated fuel management pilots and funded community wildfire protection plans. The government will commit $51 million over the next three years for fuel management and the ongoing implementation of the Filmon report recommendations. This will reduce the risk of extreme fire seasons such as those that occurred in 2003 and 2004. Energy DevelopmentIn 2003, the government's energy plan was introduced. The plan was based on four cornerstones:
In October 2004, the government issued a Report Card on Progress for the implementation of the Energy Plan. The report card showed significant progress had been made on each of the four key goals. For the first time in a decade, the BC Utilities Commission (BCUC) thoroughly reviewed BC Hydro's costs and revenue needs. After conducting a public process with substantial opportunities for stakeholder input, the BCUC approved a 4.85 per cent rate increase. BC Hydro's customers were rebated the difference from the April 1, 2004 interim rate increase of 7.23 per cent. Low electricity rates benefit consumers and give BC an edge in attracting new businesses. In September 2003, BCUC ruled that that the proposed Vancouver Island Generation Project was not the most cost-effective means to meet Vancouver Island's power needs. BC Hydro subsequently issued a Call-for-Tender and the Duke Point Power Limited Partnership was the successful proponent for a 250 MW gas-fired facility. BCUC is conducting a review of the electricity purchase agreement and a decision is expected in February 2005. The BCUC also recently approved a 10-year $2.8 billion capital plan for the BC Transmission Corporation, a publicly owned Crown entity. The government will develop an Alternative Energy Strategy to complement the 2002 Energy Plan. The strategy will embody initiatives to advance emerging new energy resources, encourage innovation in energy technology, and continue British Columbia's leadership in energy efficiency and conservation. To encourage environmentally-friendly energy generation, a school property tax exemption will be available for penstocks and related infrastructure that are part of qualifying hydro projects. Penstocks are pipe or tunnel systems that carry water to the generating turbines in a hydroelectric plant, but do not include dams.
In 2004/05, the following independent power producers achieved or are expected to achieve commercial operations:
BC Hydro is on track to meet its goal that 50 per cent of BC's future power needs will be from clean energy sources. Hydro anticipates achieving a combined total of 2,530 gigawatt hours of clean energy and efficiency improvements in the next ten years, representing 52 per cent of incremental power needs. Oil and GasBritish Columbia's Oil and Gas Development Strategy, announced in 2003, is designed to create a growing, dynamic oil and gas industry that is positioned to take full advantage of the province's abundant oil and gas resources. The Strategy has four key objectives:
There continues to be considerable optimism about the future of BC's oil and gas sector. Continued high commodity prices for oil and natural gas, combined with strong investor confidence in BC's resources and its fiscal and regulatory environment are creating high paying jobs and business opportunities. The government, industry, and other stakeholders are working together to ensure that BC residents can take advantage of these opportunities. The Alaska Highway Pipeline presents a unique opportunity for the energy sector in BC. The pipeline, if constructed, will be one of the largest capital projects of the 21st century. Construction of the pipeline would provide significant benefits in terms of employment, GDP growth, and new opportunities for resource development. Finally, the development of an oil pipeline from Edmonton to the mid-coast of British Columbia, in either Kitimat or Prince Rupert, would create additional jobs and investment along the proposed pipeline route. The third phase of the Oil and Gas Development Strategy (OGDS III) is now being implemented and includes the following new elements:
The government is also undertaking geoscience initiatives, such as identifying new aggregate sources and assessing tight, deep and shale gas potential in NEBC. These initiatives are designed to identify, stimulate and facilitate development of under-explored and unconventional resources. The Oil and Gas Resource Road Strategy was launched with an initial investment of $18 million for the public roads in NEBC. This initiative to improve access to the resource was complemented by the Sierra Yoyo Desan (SYD) Public Private Partnership. This project will see $38 million invested into the SYD road near Fort Nelson. In addition, the resource road royalty credit program, which makes credits available to companies constructing, upgrading and maintaining road infrastructure in support of resource exploration and extraction, will be extended for an additional year with an additional $30 million in funding. The government continues to work with industry to reduce the regulatory burden while meeting its environmental objectives. The Industry/Government Best Practices Steering Committee has had numerous successes, resulting in annual savings to industry of over $20 million per year. The Oil and Gas Regulatory Improvement Initiative (OGRII) will continue through 2004/05 and into 2005/06, with the goal of improving BC's oil and gas permitting and compliance through regulatory streamlining and results-based regulation where appropriate. The government has developed a First Nations Engagement Strategy for British Columbia and is currently negotiating with the Treaty 8 First Nations to improve operational certainty in Northeast BC. The success of the Oil and Gas Development Strategy is apparent. Industry investment in Oil and Gas is forecast to increase to $4 billion in 2004/05, from $3.8 billion in 2003/04 and only $1.8 billion in 2000/01. The number of wells drilled in BC is expected to increase to 1,328 in 2004/05 from 1,281 in 2003/04. This compares to fewer than 900 in 2000/01. Proven reserves are up and the oil and gas industry now generates more than $2 billion annually in direct revenue to government – the largest amount of any resource sector. These successes and new opportunities will further reinforce BC's reputation as the province of choice for new natural gas exploration and development in Canada. MiningThe government's changes to the tax and regulatory system, combined with rising commodity prices, have led to resurgence in British Columbia's mining industry. Exploration expenditures have soared from a low of $29 million in 2001 and exceeded $130 million in 2004, well on the way to meeting the target of $200 million annually required to sustain the industry. Four mines opened or re-opened in 2004, and a proposed new coal mine near Tumbler Ridge was recently granted an environmental assessment certificate. The certificate signifies that the project has adequately addressed environmental, First Nations and socio-economic concerns. Plans are for the new Wolverine Coal Mine to begin production in late 2005. Staking of mineral claims is up significantly. From January to November 2004, mineral claim units recorded stood at 46,802, an increase of 33 per cent compared to the same period in 2003. This clearly demonstrates that grassroots exploration is back in BC and that people once again see the opportunities available from BC's rich geology. Two recent initiatives build on the gathering momentum in mining. First, on January 12, 2005 Mineral Titles Online (MTO) became fully operational. MTO is a cutting-edge Internet-based title system for mineral and placer claims and represents another step in the government's ongoing strategy to streamline mining regulation. The new system allows free miners to acquire mineral rights by selecting a claim on an Internet-based map, rather than by physically staking a claim. Second, the BC Mining Plan was introduced on January 18, 2005. The plan is based on four core objectives:
The BC Mining Plan further builds on recent achievements by including targeted actions to support the four cornerstones and to encourage growth in the coal, metals, industrial minerals, placer and aggregate sectors. The government recently announced its intention to grant $25 million to the BC and Yukon Chamber of Mines for a new BC centre for geoscience. Called Geoscience BC, this new independent organization will provide $20 million for new mineral goescience projects and $5 million to create partnership opportunities with industry for oil and gas projects. The Ministry of Energy and Mines is conducting an aggregate pilot project in partnership with the Fraser Valley Regional District. The purpose of the project is to develop a way to expand, and make more efficient, aggregate production in the Fraser Valley and throughout the province. AgricultureIn recent years agriculture has suffered from the combined blows of BSE and the avian flu. In 2005, the government is renewing its commitment to creating growth in BC's agricultural and aquaculture industries, while protecting food safety. As part of the response to BSE and avian flu, the government will commit $27 million to assist producers and improve surveillance and testing. In addition, initiatives will be undertaken to improve competitiveness and invest in research and innovation. A further $6 million will be available for fisheries initiatives including improved inspection and monitoring as well as programs designed to improve aquatic animal health. High TechBC's high tech sector continues to rebound, fuelled, in part, by the province's earlier initiatives to create a competitive environment for the high tech sector. The government continues to work with the Premier's Technology Council to achieve the goal of establishing BC as one of the top ten high tech centres in the world.
Many of the tax cuts introduced since 2001 are of direct benefit to the high tech sector, including:
More recently, the bio-technology industry and others in the high tech sector have pointed out that intellectual property such as patents is often moved offshore for tax reasons. This can remove an essential anchor holding emerging high tech firms in BC. Over the next several months, the government will examine how to encourage firms to keep intellectual property in BC and plans to introduce changes during the 2005/2006 fiscal year. Other key initiatives include: BC Innovation Council – the new BC Innovation Council was launched in 2004 to act as a one-stop point of access and support to high tech companies, educational institutions, technology industry awareness groups (including regional technology councils), federal science and technology agencies and university research labs. The Council will leverage resources from federal, private and commercial institutions to support innovation throughout British Columbia. It will also complement the province's Leading-Edge BC initiative. The BC Innovation Council is the central agency responsible for supporting and funding regional science and innovation councils and technology transfer centres. Doubling the number of graduates in computer science, electrical and computer engineering – The government continues to make progress on achieving this goal. 2,485 student spaces have been funded to date (2002/03 to 2004/05) and the initiative will be completed over the next two years by funding an additional 925 new student spaces for a total of 3,410 by 2006/07. Participating institutions are working with the government to track the number of new graduates from this initiative.
Forging closer links between education and the economy – In November 2004, the government announced that the University of Victoria would receive $2.42 million from the BC Knowledge Development Fund towards the cost of a supercomputer – one of the largest in the world – as the centrepiece of a new regional facility for advanced research on climate change. The new supercomputer represents a strategic boost to UVic's research capabilities, and will further enhance Canada's capacity to effectively compete in the global technology arena. In November 2004, $1.3 million in provincial funding was announced to help build a state-of-the-art centre at the Emily Carr Institute of Art and Design where students, artists, researchers and educators will use technology to collaborate and conduct research on art design. The province is providing research infrastructure funding to the Emily Carr Institute for the first time, to support its goal of capitalizing on new technology for creative endeavors. The government has established and fully funded the Leading Edge Endowment Fund (LEEF) to provide for the creation of research chairs in the province (20 BC Leadership Chairs and 6 Regional Innovation Chairs). Competition for LEEF research chairs is ongoing. PortsThe British Columbia Ports Strategy provides direction and priorities for action to maximize trade traffic and economic growth opportunities for BC and Canada and to maximize BC's position as a world cruise destination. The BC port system currently handles about $35 billion a year in trade and contributes approximately $4 billion annually in economic output to the Canadian economy, $3 billion of which flows to British Columbia. As gateways to the Asia-Pacific region, BC ports will continue to be critical to the economic future of Canada and British Columbia. China is a major driving force of trade expansion, particularly for container traffic. British Columbia's proximity to Asian markets also offers major growth opportunities for resource exporters and manufacturers across western Canada. Successfully capturing this growth potential means that by 2020: port capacity would reach annual trade of $75 billion; port employment would increase to 50,000 and the annual contribution to GDP would almost triple. The BC Government has already made significant commitments:
Building on these initiatives, a new BC Multi-modal Action Plan will be released in the Spring of 2005. The Plan will identify critical system improvements in BC's ports as well as key inland road and rail developments needed to ensure the province realizes its full potential as an Asia-Pacific gateway. In addition, development of the Gateway program to improve traffic flaws and goods movement in the Lower Mainland is continuing. Film and TelevisionA rising Canadian dollar, combined with aggressive action in other jurisdictions, has created significant challenges for BC's film and television production industries in the last year. In 2004 production activity dropped off and further reductions were feared in 2005, particularly in light of tax credit increases announced in Ontario and Quebec. The government responded by announcing its intention to increase BC's domestic and foreign film tax credits, on an interim basis, to match the new rates in Ontario. The basic Film Incentive BC tax credit available for domestic productions will increase to 30 per cent from 20 per cent, while the Production Services Tax Credit for foreign productions will rise to 18 per cent from 11 per cent. For its part, industry will undertake a broad-based effort to help the sector thrive in an increasingly competitive marketplace. TourismBritish Columbia's tourism industry is continuing to recover from challenges such as forest fires, BSE, Avian Flu, SARS and security fears. The tourism industry employs about 115,000 people and is expected to contribute nearly $9.4 billion in tourism revenue to the provincial economy in 2004, an increase from $8.9 billion in 2003. In May 2004, government released the Spirit of 2010 Tourism Strategy. The strategy sets government's tourism priorities and is guiding the effort to double tourism's contribution to the provincial economy. In 2005, the focus will be on enhancing marketing efforts, simplifying resort development approvals and encouraging communities across the province to maximize their tourism potential. To help achieve this, the annual marketing budget for Tourism BC has been doubled to $50 million. As well, a one-time contribution of $25 million to the Union of BC Municipalities (UBCM) will go towards a five-year plan to help individual communities and regions better market their tourism products and services. As the 2010 Winter Olympic Games approach, British Columbia will need to produce or attract more well-trained tourism employees. A private-public Tourism and Hospitality Training Consortium was established in August 2004 to ensure tourism employees receive relevant, adequate training to support industry expansion. British Columbia's resorts and resort communities are key components of the province's tourism sector. The resort tourism sector is worth $1.9 billion and employs over 26,000 people. Resorts contribute significantly to the provincial economy and present enormous economic opportunities. The BC Resort Task Force, created by the Premier, submitted a report to government identifying fourteen recommendations applicable to industry, local government, First Nations and the provincial government to strengthen the resort industry. In response, the province launched the BC Resort Strategy and Action Plan on November 9, 2004 to facilitate all-season resort expansion and development. It is estimated that more than $1 billion in private sector investment could be spent over the next five years on expanding existing resorts. The province will also create more circle routes and a Spirit of 2010 Trail system to create new opportunities for visitors to explore British Columbia. Small BusinessSmall business continues to play a leading role in British Columbia's economy as the primary source (58 per cent) of private sector jobs, and 98 per cent of all businesses in the province. The sector is growing, with 3.4 per cent more small businesses in 2003 than the previous year. Almost 30 per cent of BC's GDP was attributed to small business in 2003, ranking it first among the provinces. Of particular note is that women owned and operated almost 36 per cent of small businesses in BC, the highest rate of ownership by women in the country. BC has one of the lowest small business corporate income tax rates in the country and effective January 1, 2005 the threshold for this rate is increased to $400,000 from $300,000. BC small businesses continue to benefit from the second lowest top marginal income tax rate in the country as well as the fact that BC has no general capital tax and exempts production machinery and equipment from the provincial sales tax.
BC's business legislation has been modernized to accommodate innovative e-government services making it faster, cheaper and easier to do business. The Small Business Number has been implemented, which simplifies the relationship between business and government by creating a single identifier for an individual business when working with the federal, provincial and municipal governments. In October 2004, the province officially launched the OneStop Business Registry, an improved e-government service that meets modern business needs. The province's Venture Capital Programs continue to help small businesses increase their access to equity capital with significant improvements in take up since streamlining amendments to legislation were enacted in early 2003.
In 2004, Small Business BC was created by rebranding the Canada/British Columbia Business Services Society, a partnership between the federal and provincial governments and the private sector. This organization is the gateway for entrepreneurs to access business resources. Marketing the BC EconomyWorking with Leading Edge British Columbia and other stakeholders, the government has developed a comprehensive plan to attract new investment into the province. Particular emphasis will be on maximizing the opportunities created by the 2010 Winter Games. The first elements of the new business plan will be launched in February 2005. The 2010 Commerce Centre – first phase launched in September – will be a place for domestic companies to identify international business opportunities in the form of partnerships, representation agreements, joint ventures and mergers and acquisitions. The province has committed $8.3 million over the next three years to Leading Edge British Columbia, a partnership between government, industry and other stakeholders in the technology industry. This partnership is aggressively marketing BC as an internationally competitive location for technology investment and research. Already, the organization is showing results by helping BC companies set up strategic alliances with international companies.
As well, on November 9, 2004, the Leading Edge Technology Centre opened in downtown Vancouver. The technology centre brings together BC's leading technology industry associations and support organizations under one roof to help promote BC as an innovative and emerging world leader in technology enterprise. Sustainable Environmental PoliciesA commitment to science-based environmental stewardship, sustainable resource management and respect for the strong environmental values of British Columbians remain an essential component of the province's economic strategy. These objectives are vital to its long run success. Several key steps have already been taken since 2001 including:
In the past year several new measures have added momentum to the government's environmental agenda. The Wildlife Act was amended in the spring of 2004 to enhance the government's ability to designate and protect species at risk in BC. The Drinking Water Protection Act was amended to strengthen accountability for the management and delivery of drinking water and establish an advisory board to assist with development of groundwater regulations. The government will spend an additional $8 million to implement the Act including research into the protection of groundwater and contaminated sites. The new Integrated Pest Management Act replaced previous legislation and is intended to reduce our reliance on pesticides. The regulations will protect the environment and drinking water while making the process more streamlined for industry. The process for dealing with contaminated sites has been streamlined and made more effective through changes to the Contaminated Sites Regulation. With the changes, more sites will be cleaned up and re-developed at lower cost, allowing government to focus on the high-risk sites. The government has committed $91 million for the investigation and remediation of contaminated sites on Crown Land. After a review of the product stewardship program, an industry-lead oil-recycling program was approved and government is continuing to explore opportunities to extend industry-led product stewardship (e.g. recycling of electronics). The government has set up a $7 million trust fund to assist in protecting and restoring British Columbia's rivers and established an $8 million Trust to improve the protection of key environmental values that occur on private lands. The provincial government has developed a climate change plan for British Columbia that supports the government's drive for economic revitalization. In direct support of government's effort to maintain or improve its position of generating the third lowest greenhouse gases per capita in Canada, BC has approved a plan including funding to significantly increase the number of "green" vehicles in government's fleet – the largest fleet of light vehicles in British Columbia. It is also important to encourage consumers to conserve energy and reduce green house gases. For the next three years the government will double to $2,000 the provincial sales tax incentives available for hybrid passenger vehicles and will exempt ENERGY STAR rated home heating equipment from provincial sales tax for the next two years. In the coming year, the province will focus on:
Education ExcellenceAn education system that allows for every individual to reach his or her goals is an essential linchpin for a strong and productive economy. The province is continuing to increase per student funding in the kindergarten to Grade 12 system. In 2005/06 per pupil funding will increase by 4.8 per cent to $7,079. The increased funding will be linked to local plans that ensure access to:
In partnership with the post-secondary sector, the province is on track with its plan to create 25,000 new public post-secondary spaces between 2004 and 2010. Over 3,200 spaces were created last year in regions across the province. Almost 13,000 more will be added over the next three years.
The province will fund its share of the annual costs of these new spaces at an average of $9,200 each and will provide almost $800 million for capital infrastructure to support the extra seats. The government will work with post-secondary institutions to ensure the new spaces address critical labour market needs and contribute to the development of British Columbia's knowledge economy. Other developments include:
The Industry Training Authority (ITA), which is governed by a nine member, industry-based board, began to implement a new model of industry training that is industry-led in early 2004. Key goals of the ITA are to provide an accessible, affordable, and relevant industry training system, and to support innovative, flexible and high quality training that provides learners with the skills and knowledge to secure jobs in the workforce and address critical shortages in the labour market. The ITA is accountable to increase the number of trainees in the industry training system by 30 per cent by 2006/07. Government has established education and training groups in key sectors (aerospace, oil and gas, hospitality and tourism). The groups bring together government, industry and educators to provide advice on how to ensure that the training needs of those sectors are met. Two private colleges and one private university are authorized to offer and grant specific degrees under the new Degree Authorization Act. Private and out-of-province post-secondary institutions are continuing to apply and undergo a quality assessment process to gain approval to offer degree programs, grant degrees and to use the term "university" in British Columbia. Overall, the province's strategic post secondary investment plan supports government's economic strategy to build a highly skilled labour force that will
ConclusionSince 2001, the government's economic strategy has worked. British Columbia's economy is strong and vibrant, investor interest is high and British Columbians have renewed confidence in their province. The government will build on this success by focusing on:
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