Election campaign promises and surging debt could further weaken B.C.’s economy.
That’s according to West Coast business groups urging provincial party leaders to prioritize the state of an economy that’s lagging behind as various sectors face deteriorating performance and job losses.
“We extend our appreciation for your commitment and willingness to serve British Columbians,” stated an open letter released Wednesday by the Greater Vancouver Board of Trade (GVBOT) and B.C. Chamber of Commerce, among others.
“However, given parliamentary conventions, including the need for a Speaker [of the House], greater collaboration may be required to ensure the effective operation of the legislature.”
The letter cited an from the Canadian Manufacturers and Exporters (CME) industry group, which found around 12,400 manufacturing jobs have been lost since 2017. The report said a lack of investment in the sector is “nearing crisis level.”
“Zooming out, B.C. has seen effectively no growth in private sector employment between 2019 and 2023,” read the letter. “This is unprecedented and unsustainable.”
The letter also underscored the “extraordinary” affordability challenges faced by small businesses having difficulties meeting payrolls and keeping their doors open.
Other signatories to the letter include the Mining Association of B.C., the B.C. chapter of the Canadian Federation of Independent Business, the Business Council of B.C., the Independent Contractors and Businesses Association in B.C. and the B.C. Council of Forest Industries.
Since 2020, 80 per cent of Metro Vancouver residents and 92 per cent for businesses believe affordability has worsened, according to a pre-election survey from the GVBOT.
The letter also took aim at the provincial budget, the most recent of which is projecting a $7.9-billion operating deficit for 2024-25 – the largest in B.C. history. This figure could surge to almost $9 billion, according to the letter.
“This does not include the promises made during the current election campaign,” the letter stated. "New spending promises over the next two years ranged from $3.4 billion from the BC Conservatives, $10.3 billion from the NDP, and a staggering $18.7 billion from the BC Green Party.”
The business groups claim this economic trajectory could increase the provincial debt by over $50 billion in two years.
“In a world looking for reliable partners in uncertain times, British Columbia’s potential is immense, but action is needed now to improve our underperforming economy,” the letter stated.
The business groups are asking the next government to prioritize economic health to improve affordability and boost employment opportunities.
