The B.C. Liberals introduced the 2017 provincial budget Tuesday and it is built for business and investments in a time of global economic uncertainty.
The investments for business, the economy and Surrey are reflected in the Surrey Board of Trade’s (SBOT) top policy priority areas:
• Health care
It’s a good first step to see MSP premiums cut in half for those with family net income of up to $120,000. The SBOT would like to see the elimination of the MSP.
Increasing health funding to 41 per cent is good news and we are pleased to see a $100-million, three-year enhancement in services for mental health and substance use issues, particularly for youth.
• Fiscal responsibility
A balanced budget is good, however, the focus needs to be on the total debt, which will rise 75 per cent from $45 billion in 2010-11 to $77.7 billion by 2019-20. The total debt, which includes Crown corporation debt – as well as taxpayer-supported debt (hospitals, etc.) and operating debt – is decreasing, and is a good step.
• Tax reduction
The SBOT applauds the elimination of the Provincial Sales Tax on electricity over the next two years for all businesses. However, we call on government to revisit a Value Added Tax System in B.C. to harness further capital investments and business investments.
• Real estate
This year, B.C. forecasts the property transfer tax revenue to drop significantly, due to reduced sales activity after the foreign buyers’ tax was introduced last year to cool the market. The additional 15-per-cent tax on foreign buyers in Metro Vancouver – since revised to exclude foreigners with work permits is expected to make up $150 million of the total transfer tax in the coming year.
• International trade:
The SBOT is pleased to see continued investments in global trade. The board's International Trade Centre will continue its collaborative work and trade services with global partners. The SBOT’s next global trip is in April to Dubai.
• Transportation
The SBOT didn’t observe anything specific to the overall Mayors' Council Regional Plan for Transit and Transportation investments in this budget, but we know that the B.C. government is committed to this plan.
The mention of a $3.5-billion George Massey Tunnel bridge replacement project has for the first time appeared in government financial figures at $583 million to be spent this coming year.
• Education
In late January, $217 million was announced for Surrey schools. Further investments were announced that included: $740 million over three years for kindergarten to Grade 12 education and $13.7 billion for infrastructure.
There have also been significant capital investments for SFU and Kwantlen over the past year. The continued focus of additional seat allocations (and education in general) and enhanced operational needs in Surrey to support student spaces will continue to be a policy priority for the SBOT.
• Public safety
Continued focus on combatting guns and gangs is good for Surrey. Public safety is important to ensure we have a livable city.
• Business investments:
The extension of the scientific research and experimental development tax credits, as well as the mining flow-through share tax credit, is good news Surrey has the highest number of manufacturers in B.C. and a growing health and technology hub.
Enhancing sector tax credits and venture capital to support innovation and commercialization needs to happen to diversify Surrey’s economy and create good quality jobs.
• Social infrastructure spending:
Government has committed $920 million to support the creation of more than 5,300 affordable housing units, but the budget did not include any mechanisms to encourage municipalities to increase density along proposed transit lines.
As for child care, a good first step is to increase child care spaces with $20 million, including up to 2,000 new child care spaces. However, in Surrey alone, there is a deficit of more than 12,000 child care spaces.
It is also worth nothing the B.C. budget is unlikely to pass before the May 9 election and is subject to change by whichever party wins.
Anita Huberman, CEO
Surrey Board of Trade