Next to reduced taxation, deregulation is the single most important thing that government can do to support and encourage success in business, British Columbia’s new minister of small business and economic development told a business audience in Vancouver recently.
“Those things end up stifling as much as they end up guiding business activities,” John Les told a Vancouver Board of Trade luncheon, adding that the provincial government is well on its way to fulfilling its promise to reduce by one-third the 420,000 regulations that were in place three years ago.
Les drew applause when he said he will be introducing new securities legislation in May that will eliminate 7,000 regulations. He noted that economic growth in B.C. this year is forecast by the private sector at 2.9 per cent, which would match the national rate for the first time since 1996. Investment in the province is bouncing back, he added, resulting in increased revenues in the forest, mineral, oil and gas, biotech and knowledge-based industries.
A $130-million expansion at the Port of Vancouver by P & O Ports Canada is a direct result of provincial tax changes, Les said. “I’m here to tell you today, tax cuts work,” he told the receptive audience.
“We are absolutely committed to restoring this province to a place where individuals can take initiative, put ideas into action, create jobs and turn a profit, and be rewarded for it as they should be,” said Les, the former mayor of Chilliwack who took on the expansive new economic portfolio in January.
The new ministry amalgamates a number of programs formerly under several other ministries, including the 2010 Olympics, high tech, securities, small business, sport, film, arts and culture, infrastructure and deregulation.
Speaking to Business Edge in a later interview, Les emphasized that low taxes, flexible labour laws, a deregulated environment and a results-based orientation are good for all sectors of the economy. “The whole initiative of deregulation is important. It’s an important signal to business that we are serious about getting impediments out of their way,” he said, adding that he is a strong supporter of public- private partnerships.
Les was also adamant that B.C. will continue to have an open economy, and will not be favouring B.C.-based companies. “If you’re going to purport to be open to business and to fair competition you have to follow through. We are not going to pick economic winners and losers. We are going to pick those who have the best ideas, those who offer the best deal.”
Inter-provincial trade barriers is another issue Les said must be dealt with quickly. “Often we talk in terms of trade barriers about the United States and other countries that put up artificial trade barriers, but we do that between provinces as well,” he said.
B.C. and Alberta have already held a joint cabinet meeting and will be holding another one next month in Prince Rupert, B.C. Les said they are working together to eliminate trade barriers between the two provinces, which will hopefully become a template for relations with the rest of the provinces.
“Those efforts result in good things for both of our provinces,” he said.
