Bringing Out the Best in British Columbia's Economy

The government's plan to revitalize and bring out the best in the economy is working. The British Columbia economy showed newfound resilience in 2004. Despite forest fires, pine beetle infestations, SARS and floods, the economy continued to expand.

In the last two years BC's job growth has recorded stronger job growth than any other province – including 84,400 since December 2002. Private sector investment has also been strong. Housing starts increased by 21 per cent in 2003, while non-residential building permits increased by 6.8 per cent in 2003. In the third quarter of 2003, for the first time in six years more people moved to BC, from within Canada, than moved away.

Significant employment gains in 2003

The 2002 Budget and Fiscal Plan included an ambitious strategy for revitalizing and restoring confidence in BC's future. Last year a new element was added – the Heartlands Economic Strategy to focus attention on an essential part of BC's economy.

The plan now includes five key components:

• developing a stable and competitive policy framework;
• ambitious, but achievable strategies for key sectors of the economy;
• moving towards efficient, performance-based environmental policy;
• a flexible, responsive and affordable education system for British Columbians of all ages; and
• the BC Heartlands Economic Strategy to create new opportunities in all regions of the province.

Much has been accomplished since 2002. In the coming year the government will continue to refine and develop the plan to ensure the focus remains on:

• bringing out the best in British Columbia by building a strong and vibrant economy characterized by new investment, new job opportunities and a higher standard of living for British Columbians.

Stable and Competitive Policy Framework

Responsible Fiscal Policy and a Competitive Tax Structure

The new three-year fiscal plan includes balanced budgets in 2004/05, 2005/06 and 2006/07. Achieving balanced budgets will complete the shift to a stable and sustainable fiscal policy – a basic requirement to build and reinforce consumer and investor confidence.

With the changes introduced since 2001, BC's personal and business taxes are now competitive.

The overall level of taxes for BC families are the second lowest in the country. The province also has the lowest personal income tax rates in the country for the bottom two tax brackets, meeting a key New Era commitment.

Changes to restore investor confidence include:

• lowering the general corporate income tax rate by almost 20 per cent;
• eliminating the corporation capital tax for general corporations;
• introducing sales tax exemption for production machinery and equipment; and
• implementing sector specific tax reductions, such as new incentives for digital animation and new media productions.

Last fall a new initiative was announced to improve the competitiveness of BC's vital ports infrastructure by capping property tax rates and providing compensation to municipalities for lost revenue. The changes will support much needed new investment in all British Columbia's major ports. It will also assist in meeting the Vancouver Port Authority's short term goal of increasing capacity by more than 20 per cent to almost 2 million containers annually at the Port of Vancouver by 2005.

In Budget 2004, in keeping with the Premier's Technology Council recommendations, the government will extend the Scientific Research and Experimental Development Tax Credit for an additional five years. The credit has been instrumental in encouraging a resurgence of research and development in BC and the extension will build on this momentum.

The government is also taking advantage of an opportunity to expand BC's status as an international financial centre. The existing provincial tax advantage for international financial activities will be expanded to include a broader range of activities and will no longer be restricted solely to financial institutions or to Greater Vancouver. (These enhancements are described in Part 2: Revenue Measures).

Deregulation

Since 2001 the government has eliminated nearly 90,000 regulations and has cut five regulations for every new one introduced – far exceeding the commitment to reduce two for every new one. As a result, there has been a net reduction of over 79,000 regulatory requirements – approaching two thirds of the way toward the government's target for reducing the regulatory burden in BC.

The province is already reaping the benefits of reduced red tape. For example, increased sales of petroleum, oil and gas rights reflect, in part, recent streamlining and regulatory reform efforts. Land use decisions in the Heartlands have also been streamlined, saving time and money, while protecting provincial interests. The move to a regulatory environment that is SMART (Sound, Modern, Accountable, Results-Based and Transparent) – a comprehensive and innovative approach to regulatory reform – is attracting international attention and boosting BC's competitiveness.

In November 2003 the government introduced the Significant Projects Streamlining Act to provide a fast track approval process for designated major projects that will make a substantial contribution to meeting the provinces economic and social objectives. Projects that could be designated include major transportation infrastructure projects, regional sewage treatment plants and major resort developments.

Infrastructure

Last year the government announced a multi-year plan to build an integrated and competitive transportation system throughout BC.

Budget 2004 updates and builds on the initial three-year plan. Over the next three years the province will invest an additional $1.3 billion in transportation infrastructure in British Columbia and will leverage an additional $1.1 billion through federal and private sector partnerships.

The Transportation Investment Plan includes investing more than $800 million in British Columbia's Heartlands. Roads in the Heartlands represent 72 per cent of the provincial highway system and the province will invest a significant amount in upgrading these roads. The plan also includes $30 million for upgrading ports and airports in the Heartlands.

In partnership with the federal government, significant improvements will be made at provincial border crossings and the Kicking Horse Pass section of the Trans Canada Highway – BC's gateway to the rest of Canada – will be upgraded.

Subject to financial feasibility and final negotiations with a private sector partner, the Province, TransLink, Vancouver International Airport, and the federal government will each contribute approximately $300 million in 2003 dollars to build the Richmond-Airport-Vancouver rapid transit project. The private sector firm will also invest in and operate the line. The RAV line will provide improved access for commuters and residents, control the growth of traffic congestion, improve air quality, and contribute to greater economic development in the region and at the Airport.

The $1 billion BC Rail Investment Partnership with CN Rail will revitalize the BC rail system, eliminate the railway's debt and support new job growth. Part of the proceeds will be used to establish a $135 million Northern Development Initiative. The initiative will be managed by Northerners for Northerners. The province will also establish a $15 million First Nations Trust to provide benefits to 25 First Nations along the rail corridor. In addition, another $200 million from the partnership will finance projects included in the government's transportation plan. The partnership initiative is subject to review by Canada's Competition Bureau.

British Columbia Ferry Services Inc. – a new independent, commercial company – now delivers coastal ferry services under a 60-year contract with the province signed in April 2003. The new company, which is governed by the BC Ferry Authority, is designed to attract private sector investment and establish innovative partnerships that respond to the marketplace. An independent regulator has been established to protect customers by regulating price increases.

The government is also addressing BC's past infrastructure deficit through innovative partnerships that ensure accountability and best value for taxpayer's dollars, while harnessing private sector efficiencies and best practices. Partnerships B.C. is presently engaged in approximately 11 major infrastructure projects around the province including a major resource road in Northeastern BC, major bridge construction in the Southeast and Okanagan, the new academic ambulatory (outpatient) care centre in Vancouver, the new Abbotsford Regional Hospital and Cancer Centre, the new Fraser River Crossing, the proposed Richmond-Vancouver rapid transit service and the Sea to Sky Highway improvement project.

Partnerships B.C. is also in discussions with a number of public sector agencies regarding further provincial and municipal government infrastructure priorities. New partnership opportunities are expected in the transportation, health care, local government and education sectors.

Strategies for Key Sectors

The government continues to make progress in revitalizing and fostering renewed growth in key sectors of the economy.

Forestry

In 2003, legislation was passed that fundamentally changed the way the forest sector is managed. These changes include the reallocation of timber rights and market-based policy reforms to forest tenure and revenue administration. The objective is to create a more competitive, dynamic forest industry that will contribute sustainable well-paying jobs to BC's economy.

The changes will:

• diversify BC's forest economy by increasing the number of tenure holders and expanding the variety of economic uses for BC's public forests;
• ensure that more logs flow to open markets, where their highest value and best use within the province can be determined;
• help create a more open pricing system for public timber, ensuring British Columbians receive fair value for the use of their forest resources.

The government's commitment to provide economic development opportunities for First Nations is reflected in 29 agreements with First Nations that have been established since September 2002. These agreements provide access to 7.62 million cubic metres of timber and will share forestry revenue of $38.6 million. Over the next three years up to $120 million will be available for new and existing agreements throughout the province. In 2004/05 alone, negotiations are expected with an additional 20 First Nations.

The Working Forest initiative is well advanced. Consultations were completed and the enabling legislation, the Land Amendment Act (Bill 46) was passed in November. The Working Forest land base will be designated by June 30, 2004. Work continues on the development of the Working Forest sustainable resource management framework to be completed by April 2004. This framework will create greater land-base certainty for the forestry sector and complement the other revitalization initiatives that are underway.

The Forest and Range Practices Act that took effect in January 2004 is a key to modernizing and revitalizing the forest industry. The Act introduces a streamlined, science-based, results-oriented regulatory approach to protect human health and the environment and ensure effective enforcement within a market-based pricing system. Full implementation of the Act is a major objective in 2004/05. It places a greater emphasis on defining acceptable results on the ground, thus allowing licensees and individual professionals to enjoy greater autonomy in deciding how best to achieve specified results.

In 2003, BC continued to pursue negotiations and litigation as a means to establish a durable long-term solution to the softwood lumber dispute with the United States. Although progress was made, the issue has not been resolved. Work on the softwood dispute will continue until a satisfactory resolution is achieved.

A new Minister of State for Forestry Operations has been appointed to provide an additional voice for forestry revitalization at the cabinet table.

A new market-based pricing system will be introduced for the coastal forest sector on February 29, 2004. The new system will contribute to industry renewal by ensuring competitive stumpage rates that better reflect global markets and local harvesting costs. Introduction of market-based pricing in the interior is expected later this year.

Work is continuing on implementation of the tenure reallocation that requires major licensees to return approximately 8 million cubic metres of Allowable Annual Cut (AAC) to the Crown. About half of this AAC will then be redistributed to create woodlot, community forest, and First Nation opportunities. The other half will be sold at auction establishing a stronger foundation for market-based pricing and creating additional log purchase opportunities.

The Filmon Firestorm Provincial Review is anticipated to have useful insights and recommendations pertaining to fire prevention, planning and response that will improve the long-term sustainability of the industry.

In keeping with the government's alternative service delivery objectives, 104 partnerships have been established to manage the province's forest recreational sites and trails.

Energy Development

Last year the government unveiled a new energy plan designed to capitalize on BC's competitive advantage in energy. The plan included four cornerstones: Low electricity rates and public ownership of BC Hydro; Secure, reliable supply: More private sector opportunities; and environmental responsibility and no nuclear power sources. The energy plan is well on its way:

• legislation has been passed to confirm public ownership of BC Hydro's core generation, transmission and distribution assets, and to implement the Heritage Contract to preserve the benefits of low-cost generation for BC ratepayers;
• the BC Transmission Corporation, the publicly owned, independent transmission operator, has been created to provide greater access to transmission for independent power producers;
• BC Hydro's goal is that 50 per cent of BC's future power needs will be met from clean energy sources. Hydro has already made the largest offer to purchase green energy in BC's history and this could result in up to $800 million in private sector energy projects and create up to 1,000 construction jobs throughout the province.

Oil and Gas

BC's potential oil and gas reserves are immense. In May 2003, the government announced the Oil and Gas Development Strategy for the Heartlands to promote all-season oil and gas activity, attract industry investment, and generate revenue. The Strategy is targeted at increasing natural gas production by 17 per cent, and the number of wells drilled by 31 per cent by 2006/07. The Strategy has four key objectives:

• improve resource and community road infrastructure;
• target royalty incentives to encourage increased exploration and open up new basins, promote year-round activity, and maximize resource extraction of unconventional resources;
• reduce and streamline regulation; and
• develop and expand the province's service sector supporting the oil and gas industry.

In November 2003, to build upon initial successes, the government announced a second phase of initiatives. Royalty credits of up to $30 million annually may be available to companies constructing, upgrading and maintaining road infrastructure in support of resource exploration and development. As of December 2003, three projects were awarded $9.5 million in royalty credits to develop resource roads.

A public–private partnership is expected to invest $37 million in the Sierra Yoyo Desan Road near Fort Nelson to improve safe, reliable, year-round access for industry to 27,000 square kilometers of oil and gas territory in northeast BC.

New royalty rates have been established as incentives for marginal and deep wells and summer drilling. Work is underway on incentives to encourage frontier exploration as well as development of unconventional resources, and new basins.

In addition, regulations are being reduced and streamlined with assistance from an industry-stakeholder advisory group.

Finally, a comprehensive service sector strategy is being implemented to ensure BC-based businesses and communities are better able to capitalize on opportunities in the oil and gas sector. Government funding of $500,000 is being matched by industry funds to provide oil and gas skills-development training for British Columbians.

The success of the strategy is clear:

• the September 2003 sale of petroleum and natural gas rights hit an all time record of $418 million;
• in 2003, summer drilling was more than double the previous year;
• rigs drilling in BC in the week of December 9, 2003 increased by 80.4 per cent, compared to the same week last year; and
• provincial government revenues from oil and natural gas royalties and sales of petroleum and natural gas rights are now forecast to increase to $2.04 billion for 2003/04, which would be a 38 per cent increase over 2002/03 revenues. And new opportunities exist in under-explored and unconventional oil and gas resources, such as coal bed gas, deep gas and tight gas in both northeast BC and new basins such as the Bowser and Nechako.

The government has also established the BC Offshore Oil and Gas Team and has allocated $17 million over the next three years to pursue the goal of an environmentally sound offshore oil and gas industry by 2010. The Team is working with First Nations, coastal communities and the federal government to ensure development reflects the needs and interests of British Columbians. BC is preparing to engage the federal government in negotiations on a fiscal and regulatory regime for the offshore resource should a decision be made to lift the federal moratorium.

These successes and new opportunities will further reinforce BC's reputation as the province of choice for new natural gas exploration and development in Canada.

Mining

British Columbia has extensive mineral reserves and is ranked eighth in the world in terms of its potential mineral wealth.

There are further indications of recovery in the province's mining sector due to improved tax competitiveness, regulatory streamlining, and the extension of the federal and provincial flow-through share tax credits.

Mineral exploration in BC is rebounding and claim staking and exploration spending are increasing. Exploration expenditure sank to a low of $25 million the late 1990s, but is expected to reach between $45 and $55 million in 2003/04. The goal is to achieve annual exploration expenditures of $200 million – the level required to support a sustainable industry.

A $100 million construction aggregate quarry has been approved in the Alberni Valley and is a joint venture between First Nations and the private sector.

The "Health, Safety and Reclamation Code for Mines in British Columbia" has been rewritten to streamline the regulations and introduce a more results-based focus.

To reinforce the government's commitment to restore BC's mining industry, a new Minister of State for Mining was recently appointed. Among other tasks, the new Minister will work on implementing the two-zone system for mineral exploration. A review of "no staking" reserves will be concluded by the end of March 2004. This is expected to free up significant land for new mining exploration and development.

High Tech

Prospects for BC's high tech sector have brightened in recent months with spending on technology increasing and stocks rebounding. The government has taken great strides in creating a competitive environment for the high tech sector and continues to work with the Premier's Technology Council to achieve the goal of establishing BC as one of the top ten high tech centres in the world.

Many of the tax cuts introduced since 2001 are of direct benefit to the high tech sector, including:

• the reduction in the top marginal personal income tax rate to the second lowest in Canada;
• the elimination of the corporation capital tax on general corporations;
• the sales tax exemption for production machinery and equipment; and
• the enhancements to the small business venture capital programs announced in the last budget.

Other initiatives already underway include:

Doubling the number of graduates in computer science, electrical and computer engineering. The government has provided funding for 1,650 student spaces to date (2002/03 and 2003/04) and will complete funding for this initiative over the next three years, by funding an additional 1,750 new student spaces for a total of 3,400 by 2006/07.

Forging closer links between education and the economy. In 2003/04, through the government's BC Knowledge Development Fund and funding leveraged from the Canada Foundation for Innovation and other contributors, close to $125 million was awarded to post-secondary institutions for research infrastructure.

In October 2003, $30.5 million in provincial funding was announced under this program for the NEPTUNE project, which will benefit BC through research into early earthquake warning, fisheries protection, understanding climate change, and offshore resource extraction methods. In addition, the province has provided $45 million to the Leading Edge Endowment Fund to create 20 B.C. Leadership Chairs, and $7.5 million for six B.C. Regional Innovation Chairs at colleges. These investments create direct economic activity in many industries including: information technology, engineering, pharmaceuticals, instrument development and research support services. In addition they will be instrumental in attracting world-class researchers and educators to the province.

These initiatives build on BC's reputation for scientific innovation and will generate new opportunities to attract and retain high quality scientists to the province.

The fifth report of the BC Technology Council was recently released and included recommendations to increase the availability of venture capital in the province, continue work on improving the education system to meet the needs of the new economy, attract more highly skilled managers to the province and continue to encourage innovation and research.

The government has implemented many of the Council's earlier recommendations, including the Budget 2004 decision to extend the Scientific Research and Experimental Development Tax Credit by five years. The other recommendations will be considered within the context of other priorities and the overarching requirement to balance the budget in 2004/05 and beyond.

Film and Television

BC's film and television production industry remains a success story. Although competition for film and television production is fierce, industry expenditures approached $1 billion in 2003, similar to the 2002 level.

Last year, the government introduced two new measures. First, a new bonus credit for digital animation and visual effects was added to the existing Film Incentive BC and Production Services Tax Credit (PSTC). Second, $5 million dedicated to New Media was added to the budget for tax credits under the small business venture capital program.

In addition, eligibility criteria were relaxed and a new add-on credit was introduced to the PSTC to enhance the regional tax credit.

New guidelines for filming on provincial property were completed in November 2003, and published on the BC Film Commission website. Considerable progress has been made on a streamlined and consistent province-wide location policy (e.g., common approach to applications and contracting processes).

Tourism

The government remains committed to doubling tourism's contribution to the provincial economy and in the last year progress has been made on several fronts to boost the tourism sector.

BC's successful bid to host the 2010 Olympic and Paralympic Winter Games will create opportunities for tourism development across the province. The BC Tourism Strategy: The Olympics and Beyond sets out a plan to stimulate and grow tourism throughout the province. The four primary objectives are:

• increased numbers of visitors, particularly visitors with high spending ability;
• increased tourism investment;
• increased use of existing tourism resources; and
• using the Olympic to leverage new tourism opportunities.

An agreement signed with Tourism Vancouver in December 2003 represented an important milestone for the Vancouver Convention Centre expansion project. The agreement cements the partnership between the tourism industry and the provincial government by confirming that Tourism Vancouver will contribute $90 million to the $495 million expansion. The project will generate up to $5.1 billion in economic activity and the expanded convention centre will be a magnet for international events in the lead up to the 2010 Olympics and beyond.

The BC Resort Task Force was formed in June 2003 to enhance resort development partnerships in BC and to identify and eliminate barriers to resort creation, development and expansion. The work of the Task Force has been strengthened by the recent appointment of a new Minister of State for Resort Development.

Over the next twelve months, the Task Force will:

• review all acts, regulations and policies that affect resort development and investment, looking to improve deregulation and streamline application processes;
• document, review and analyze barriers to expanding existing resorts and to proposals for new resorts;
• review application timelines and costs;
• conduct a review of BC's competitiveness relative to other resort jurisdictions;
• work with industry, communities and First Nations to identify economic opportunities associated with resort development; and
• develop an aggressive action plan that will lead to increased investment in resort development;

To improve Crown Land access, Land and Water BC (LWBC) has reduced land tenure application processing time by 50 per cent, and has eliminated the land tenure application backlog that accumulated over the past 14 years. As a result, 99 per cent of land tenure and water licence applications are now processed within 140 days.

Over the coming year, LWBC will:

• improve land security and increase its focus on land-based investment opportunities;.
• eliminate constraints on economic development by increasing land inventory for development; and
• move toward a one-window service delivery approach. LWBC will work with government agencies, ministries and the private sector to continue to improve decision-making processes.

Small Business

Small business remains a critical source of strength in the BC economy. Small business accounts for almost 98 per cent of all businesses in BC, and nearly one million people are employed by small business in the province, representing 58 per cent of all private sector jobs.

BC has one of the lowest small business corporate income tax rates in the country and the threshold for this rate was increased to $300,000 in the last budget. In addition, BC now has the second lowest top marginal income tax rate in the country, has eliminated the corporation capital tax for general corporations and introduced a sales tax exemption for production machinery and equipment to encourage new investment and growth by small business.

The introduction of competition to venture capital funds has had a dramatic and successful impact. Business registrations have increased by more than five times from 31 in 2002, to 158 in 2003. Venture capital raised has more than tripled, from $15 million in 2002 to $51 million in 2003.

In May 2003, government made additional changes to the Employment Standards Act to further reduce unnecessary regulation and make employment standards more flexible, understandable and effective. The government has also introduced the One-Stop on-line business registration system that has reduced application times from days or weeks to less than an hour. These changes have opened up new opportunities for small business by making it easier to raise capital, simplifying workplace rules and reducing tax compliance costs.

A Single Business Number (SBN) is in the final stages of implementation and should be fully available in March 2004. The SBN will simplify the relationship between business and government by creating a common identifier for business among partner agencies and expands on the One-Stop Business Registration services offered by the three levels of government.

Marketing the BC Economy

BC's economic success depends on building greater awareness around the world of British Columbia's new competitiveness and capacity for innovation and expansion in a broad range of industries throughout the province.

In the last year, British Columbia's innovative capabilities have been promoted to key markets in North America, Asia and the European Union. Joint government-industry marketing missions were conducted in the US (California and Texas), China, India, South Korea and Taiwan, and at the World Economic Forum summits in Davos, Switzerland and Beijing, China.

Investment opportunities in British Columbia's key innovative industries were also showcased at investment forums in San Francisco, San Jose, San Diego, Los Angeles, Seattle, Washington DC, Vancouver, and Toronto.

A new Invest British Columbia website was deployed that highlights British Columbia's competitive advantages and expansion opportunities for international investment, and provides a one-stop shop for business location information and services.

Through Leading Edge British Columbia, a new partnership with industry and other stakeholders in the technology community more than $8.3 million will be invested over three years to aggressively market British Columbia as an internationally competitive location for technology investment and research.

BC has established a foothold in attracting international call centres to the province. To capitalize on this progress in an extremely competitive marketplace, the province created Linx BC a unique public/private partnership. Its sole purpose is to create employment opportunities in BC through the attraction of quality inbound Contact Centres. Linx BC has been involved in attracting 10 US-based contact centres that have created 7,350 jobs, provided more than $150 million in direct investment and produced approximately $155 million per year in new provincial payroll. New contact centre announcements made in 2003 include eBay (1,000 jobs in Burnaby), West Corporation (800 jobs in Central Saanich) and JP Morgan Chase Bank (800 jobs in Surrey).

Sustainable Environmental Policies

The government remains committed to the principle of revitalizing the economy while balancing environmental and community values. Science-based environmental stewardship, sustainable resource management and respect for the strong environmental values of British Columbians are essential to the long run success of the economic strategy. Several key steps have been taken:

• effective December 30, 2002, the new, streamlined Environmental Assessment Act and accompanying regulations came into force;
• a new AOX regulation has been enacted to appropriately limit discharges of absorbable organic halides;
• a response to the final report of the Advisory Panel on Contaminated Sites will be developed;
• the Environmental Management Act, passed in the fall 2003, is a significant change from the 23-year-old Waste Management Act. This Act will streamline approval processes, thus removing impediments to business and fostering economic development. It will also provide better use of penalties and incentives to ensure compliance and help to address the cumulative impacts of pollution;
• under the Environmental Management Act, government will regulate and advise on the province's highest-risk contaminated sites. This will provide more opportunities for the private sector with environmental consultants having an increasing role in advising on the cleanup of lower-risk sites; and
• a review of the product stewardship program was completed with a view to extending industry-led product stewardship (e.g. used oil recycling; electronic recycling).

Education Excellence

A flexible and modern education system is a basic requirement for an energized and productive economy. Steps will be taken to create an even better system in British Columbia. Per student funding will increase by $219 in 2004/05 for a total increase of more than $500 since 2000/01. The province has also introduced new graduation requirements and will launch a new major initiative to promote literacy for all British Columbians.

In the new economy of the 21^st century 70 per cent of new job openings will require some form of post-secondary education or training. The government will introduce a comprehensive new approach to create 25,000 new student spaces in BC's colleges, universities and institutions by 2010. Almost 12,000 of these new spaces will be created over the term of the new three-year plan.

The government has already made substantial progress in improving our post secondary system, including the addition of approximately 6,000 new spaces over the last two years. Other developments include:

• an on-line loan application system that allows students to apply for student financial assistance on-line was introduced in the Spring of 2003;
• the new Degree Authorization Act enables private and out-of-province post-secondary institutions to apply for Ministerial consent to grant degrees, provide or advertise degree programs, and/or use the word "university" in BC;
• the Industry Training Authority Act (ITA) came into effect in early 2004. A nine member, industry-based board has hired a CEO and is beginning to implement the new model of industry training. The ITA will become fully operational in 2004/05 and will finalize a three year business plan which will see an overall 30 per cent increase in industry trainees and graduates; and
• adding 230 student spaces for online learning in each of the next three years, to bring the total number of student spaces to 1,310 in fiscal 2006/07 from 260 in fiscal 2001/02.

Summary

Since 2001, the government has made great strides in bringing out the best in the BC economy by restoring the confidence of investors and consumers alike. Job growth has been strong and private sector investment is picking up.

The government's economic strategy is working and more progress will be made in the next year:

• the new fiscal plan includes balancing the budget in each of the next three years and marks a major step in restoring sound fiscal management to the province;
• further steps will be taken to improve competitiveness by extending the scientific research and experimental development tax credit and expanding the tax incentives available for international financial business;
• the government will achieve its goal of reducing the regulatory burden by one third;
• work will continue to build a modern competitive efficient transportation system with particular emphasis on BC's Heartlands;
• implementation of the sector strategies will continue;
• to ensure BC's people are able to take advantage of economic opportunities, steps will be taken to further improve BC's education system; and
• the Heartlands Economic Strategy will ensure people all across the province will benefit from BC's economic resurgence.

The government is committed to revitalizing the economy and providing opportunities for all British Columbians to achieve their goals.