Restoring B.C.'s Competitiveness

July 3, 2008

B.C. has some of the most competitive tax rates in North America:

Compared to the U.S. west coast, B.C. offers a 20 per cent savings in annual corporate operating costs.
Our current corporate tax rate is among the lowest in North America: For example, B.C.’s top marginal corporate income tax rate is 30.5 per cent, compared to California’s 41 per cent.
Effective July 1, 2008, the general corporate income tax rate was reduced to 11 per cent from 12 per cent – with further reductions planned to 10 per cent by 2011. This will put B.C. on par with the lowest corporate tax rates in the country.
Corporate tax reductions planned for the next three years will give B.C. a combined federal-provincial rate of 25 per cent, among the lowest corporate income tax rates of the world’s major industrialized economies – 10 points lower than the U.S. federal rate by 2012.
By 2009, British Columbians will pay the lowest personal income tax in all of Canada for individuals earning up to $111,000.

B.C. has dramatically cut red tape, reducing the regulatory burden on business and citizens:

Eliminated over 163,000 unnecessary regulations, a 42 per cent reduction since June 2001.

B.C. won the right to host the 2010 Winter Olympic and Paralympic Games.

The Games are expected to generate between $6.1 and $10.7 billion in economic activity and create between 126,000 and 244,000 full-time jobs.

B.C. is growing our skilled workforce at a record pace.

In 2006 B.C. launched a new tax credit program to encourage employers to take on apprentices – $90 million over three years. The program provides direct tax credits for employees and employers that support 47 ‘Red Seal’ training programs and 79 B.C.-recognized programs, with additional supports to train First Nations and disabled workers.
Through the Industry Training Authority (ITA), there are now 39,797 registered apprentices and trainees – nearly TRIPLE those registered in 2001.
Through the Provincial Nominee program, 1,881 skilled workers and entrepreneurs were accepted last year – almost 260 over the target for last year – 2008/09 target is 3,000.
B.C. has increased funding for post-secondary education by almost 40 per cent since 2001, and now spends over $2.25 billion annually.
As of this year the government has created an additional 21,838 new student spaces.
The Province has invested more than $1.5 billion in capital at post-secondary institutions and this year created five new universities.
A new Early Childhood Learning Agency will assess the feasibility and costs of full school day kindergarten for five-year-olds. It will also undertake a feasibility study of providing parents with the choice of day-long kindergarten for four-year-olds by 2010, and for three-year-olds by 2012 to help ensure early learners get the best start possible. This will also give parents an option if they wish to return to the workforce earlier.

B.C. is breaking down trade barriers through the TILMA agreement:

TILMA will create the second-largest economy in Canada, 30 per cent larger than Quebec.
This will add $4.8 billion to real GDP and create 78,000 new jobs in B.C.

B.C. is making key investments in infrastructure to grow our economy:

Investing $10.3 billion in schools, roads, health facilities over the next three years.
Through Partnerships BC, committed to $4.7 billion in 23 projects.
Committed to a $14-billion Transit Plan including four new rapid transit lines, nine new RapidBus routes and 1,500 new buses.
Invested in the $170-million expansion of the Port of Prince Rupert. The province is now pursuing phase II, which is a $650-million expansion of the Port of Prince Rupert.

B.C.’s Gateway program will dramatically reduce congestion and get our goods moving again.

Initiated $3-billion Gateway Transportation plan that includes a new Pitt River Bridge, South Fraser Perimeter Road, widening Highway 1 and construction of a new Port Mann Bridge.
This project will restore public transit over the Port Mann Bridge for the first time in 20 years.
The Gateway project also includes the largest expansion of cycling infrastructure in the province’s history.
Construction of Gateway Program facilities will generate approximately 17,000 person-years of direct employment and will contribute $1.7 billion to British Columbia’s gross domestic product.
Depending on their origin and destination, travellers will see time savings of between five and 30 per cent over 2003 travel times.
Gateway will result in travel time (and operating cost) savings at a present value of $8 billion.

B.C. is becoming electricity self-sufficient:

Since 2001 BC Hydro has signed 63 contracts with Independent Power Producers (IPPs) to produce clean power in every region of the province and reduce our reliance on imported coal-fired power.
As a result IPPs have invested more than $2 billion in private sector investment in British Columbia, creating more then 4,000 person-years of employment.
Over the next three years the Ministry of Energy, Mines and Petroleum Resources is anticipating another $2 billion in private sector investment by IPPs in B.C., which is expected to create another 5,000 person-years of employment.

B.C.’s innovative tax, royalty and incentive programs are attracting new investment in the province’s oil and gas sector.

B.C. has increased natural gas production by about nine per cent since 2001.
2007’s industry capital investment was estimated at $5 billion by the Canadian Association of Petroleum Producers, a 61 per cent increase over 2001. In fact, since 2001 the industry has invested almost $30 billion in B.C.
Oil and gas rights sales totalled $1.2 billion for 2007. The 2007 figure is nearly double the previous high of 625.7 million in 03-04. In fact, the province set a single-month record in May 2008, with $441 million in bonus bids. This is more than any complete year in the 1990s.
The average bid price per hectare this May was almost $10,000. This shatters the previous record of $2,915 per hectare and is believed to be one of the highest prices ever paid per hectare in North America (excluding oil sands). By comparison the average price per hectare in Alberta for May 2008 (excluding oil sands) was $404/ha.

B.C.’s new efficiency programs will save people money, stimulate the economy and create new jobs and investment.

The new vehicle emission standards will save the average motorist $485 in fuel costs by 2016.
These savings will result in over $100 million in total fuel savings across B.C., money that will be reinvested back into our economy.
The new green building code will have some of the highest energy efficiency standards in Canada, reducing the average building’s energy consumption by up to 20 per cent by 2020, creating a net energy savings (over and above the cost of building upgrades and new equipment) of $3.4 billion, money that will be reinvested into the economy year after year.
Driving higher levels of energy efficiency and reducing our GHG emissions is positioning B.C. to become a world leader in green technology, a market valued at $1 trillion by 2030.