Economic development should be a focal point of this spring's B.C. election, say provincial business leaders.

"Both (the Liberals and New Democrats) are going to have to put a reasonable platform in place that builds on the (economic) momentum that's been created," says Daniel Muzyka, dean of UBC's Sauder School of Business who will become chairman of the Vancouver Board of Trade (VBOT) this spring.

B.C. voters don't go to the polls until May 17. But the campaign is already heating up because of the Liberal government's fixed-term policy, which meant the election date was revealed several months - rather than weeks - in advance.

Muzyka is wary that a major shift in government economic policy will prompt a return to the recessionary times of the 1990s.

Daniel Myzyka, dean of the Sauder School of Business.

"There's no back to the future," says Muzyka, currently the VBOT vice-chairman. "If you go back to the policies that were here in the 1990s, the impact is critical."

As a result of those policies, says Muzyka, B.C. lost its ability to fund education, health care, social programs and infrastructure.

Muzyka says each party's platform must help boost productivity, recognize what works and doesn't work in terms of economic policy, and provide "a context for growth."

Under Premier Gordon Campbell, B.C. has reported a $2-billion surplus this fiscal year.

Muzyka says he fears a new government will scare businesses away from the province. "You have to provide a proper economic context for development - and by all of the economic statistics that we saw in the 1990s, we weren't doing that," says Muzyka. "We're still living through that legacy. Look at what's happened with economic development here in the last few years. It's dramatic."

A booming oil and gas industry, strong housing market, megaprojects such as the RAV rapid transit line, a resurgence in mining and forestry, and growth in biotechnology, among other factors, have revitalized B.C.'s economy, analysts say.

In many sectors, particularly in oil and gas where producers and shippers have received millions in royalty breaks and other incentives, pro-business provincial policies are seen as catalysts if not the main drivers.

But despite the improved economic times, polls repeatedly show that Campbell's personal popularity is low and many observers are predicting a close race between the Liberals and New Democrats, who ruled from 1991-2001 before former premier Glen Clark's scandal-plagued government was ousted.

NDP Leader Carole James has promised that a New Democrat government will adopt policies that serve business interests while remaining true to the party's socialist roots. Her comments have produced skepticism from the business community and, occasionally, anger from her own party members.

Jock Finlayson, vice-president of policy for the Business Council of B.C. (BCBC), says the business community would like the economy to be the focal point of the election - but he doesn't think it will be.

Finlayson predicts that the Liberals will tout the province's economic gains under their stewardship, while the NDP will attack the government's social track record.

Still, in contrast to last fall's federal election - when the Liberals did not present an economic policy let alone brag about their fiscal record - he anticipates the economy will be front and centre in the provincial election.

While B.C.'s economy has improved, says Finlayson, it still has a long way to go. The province trails the rest of Canada in such key indicators as income per capita, gross domestic product per capita and productivity.

Government is not solely to blame, he says. B.C.'s erosion of wealth stems from a decline in economic structures that began in the 1980s and increased in the 1990s, and was also influenced by currency exchange rates, commodity prices and other factors.

He says the government has to help build a diversified, knowledge-based economy that does not depend on resource industries.

Meanwhile, Dave Park, chief economist for the Vancouver Board of Trade, says the board plans to issue public statements and use other strategies to make sure economic development gets plenty of discussion, but will not host public forums for candidates.

Park says the board of trade is seeking assurances that the successes of the current Liberal administration will continue in terms of where the economy is now compared to where it was in the 1990s.

The government's decision to reduce provincial income taxes has had a major effect, he says, and the Liberals have done an excellent job of restoring business confidence in the province.

Like UBC's Muzyka and BCBC's Finlayson, Park is calling on the next government to address employment skills shortages - especially since 80 per cent of high school students do not go to university.

"So closing the gap (between trained and untrained employees) is something that we as a society have a responsibility to do," says Park.

The NDP, he says, must show that it's willing to continue Liberal policies, listen to the concerns of business and work more cordially with the business community, which drives the province's economic engine.

Finlayson says the provincial budget, due to be released Feb. 15, will show where the Liberals want to take the province if they're re-elected.

The NDP has slammed the government's handling of the BC Rail sale and a decision to give a contract for Super C-class ferries to a German firm - a BC Ferries decision supported by the province - is expected to get plenty of airplay during the campaign.

The BCBC has come under fire for its "You're Hired" TV commercials, which have been airing over the past few months. Finlayson says the ads are part of a campaign to help fill one million jobs that are going to open up between now and 2015 - not to tout the Liberals.

He says the BCBC is a non-partisan group but it's no secret the "vast majority" of the business community would like to see the Liberals re-elected.

(Monte Stewart can be reached at monte@businessedge.ca)