Business groups are still looking for answers on several economic issues as the hotly contested federal election campaign winds down and a new government begins to gear up.
‘‘There has been very little debate about the economy, how to improve production, how to ensure Canada becomes a better place in the world to invest,’’ says Jock Finlayson, executive VP of the Business Council of B.C. (BCBC).
The key issues raised in the campaign focused on health care – ‘‘where the parties want to spend more money’’ – the Liberal sponsorship scandal and social issues, such as abortion.
But the BCBC wants the next government to provide a better fiscal and tax regime, while also ensuring that B.C. goods, products and services have better access to U.S. and overseas markets, particularly Asia.
Finlayson says the Asia-Pacific issue is hugely important to B.C. companies because, in the last decade alone, B.C. exports to China have increased 300 per cent. But during the campaign, he notes, the candidates paid it scant attention.
He is also calling on the new federal government to help ensure the quick movement of goods through the Port of Vancouver and along the province’s roads and railways.
‘‘We are faced with some big challenges here in this part of the country because of volume growth,’’ notes Finlayson.
Vancouver is a key point for Canadian imports and exports. But transportation costs are hampering the competitive position of ports and railways.
The federal government is the major player on transportation and infrastructure in Canada, but many in the business community feel it has failed to provide leadership on the issue.
The BCBC is a non-partisan group and does not back any party. But Finlayson says the tax cuts proposed by the Conservatives are appealing to some members – as long as the reductions do not gut other programs.
As former finance minister, Prime Minister Paul Martin helped eliminate the federal deficit. But Finlayson noted the Liberals did not trumpet this track record during the campaign. ‘‘It’s difficult for me to explain why they chose to downplay that,’’ he says.
Dan Kelly, western region vice-president of the Canadian Federation of Independent Business (CFIB), says the next federal government must help maintain B.C.’s economic momentum.
‘‘It takes years to get out of economic difficulties – but it’s easy to get back into them,’’ says Kelly.
B.C.’s economy is perceived to be on the upswing since Premier Gordon Campbell’s Liberals took over from the New Democrats at the provincial level.
Supporting that, a recent annual survey by the CFIB of its members in B.C. found them to be the most upbeat about economic prospects.
Kelly is now calling for solutions to labour shortages on 2010 Winter Olympic-related construction projects, offshore oil and gas, insurance, crime and high taxes.
He says a new government must ensure funding for training and employment insurance programs – and address labour shortages in all businesses, not just those related to the Olympics.
‘‘The shortage of skilled labour is a huge issue in B.C., and potentially made worse by the demand of the Olympics,’’ says Kelly.
CFIB members in B.C. also want Ottawa to lift the moratorium on offshore oil and gas development that has been in place since the early 1970s. B.C. has a similar moratorium, but the provincial government has indicated it will lift its ban once the feds lift theirs.
The new faces in the federal cabinet must also curb rising property and casualty insurance premiums, says Kelly. Because B.C. has public auto insurance, it receives less attention than elsewhere in Canada, such as Alberta and New Brunswick, where it was a major issue in the latter’s provincial elections.
However, privately operated property and casualty insurance is a key issue in B.C., he says.
‘‘We’ve seen premiums rise roughly 20 to 30 per cent just in the last few years,’’ says Kelly.
The big question is how the new government will perform in its first few months in office, says Kelly, adding the CFIB will continue to press its concerns.
Darcy Rezac, president of the Vancouver Board of Trade, says his group wants the next federal government to get tough on crime.
‘‘B.C.’s crime rate is the worst in North America for any state or any province,’’ says Rezac. ‘‘The overall crime rate of Vancouver is the highest of 354 cities in North America. Part of the solution to that is better sentencing guidelines out of Ottawa (and) better laws.’’ Rezac also calls for better-quality health care and improved productivity, suggesting that tax dollars could be better utilized elsewhere.
But, he adds, the Vancouver Board of Trade does not want taxes diverted away from health care to become handouts to businesses.
‘‘We don’t support direct-to-business incentives,’’ says Rezac. ‘‘We look for a favourable and competitive tax regime, enlightened policies that seem to be world-class that will attract a lot of businesses to come to Canada, invest and stay. Our view is that business is good for people – and people need jobs.’’
