Ministry of Small Business and Economic Development


MINISTRY OF SMALL BUSINESS AND ECONOMIC DEVELOPMENT

The mission of the Ministry of Small Business and Economic Development is to promote strategic leadership in government to create a strong, prosperous and diverse economy in all regions.

MINISTRY SUMMARY
($000)



	Estimates 2003/04¹	Estimates 2004/05

VOTED APPROPRIATION
Vote 34 — Ministry Operations	174,713	139,689


STATUTORY APPROPRIATIONS
Northern Development Fund Special Account.	1,500	500
Olympic Arts Fund Special Account	483	625
Physical Fitness and Amateur Sports Fund Special Account	2,215	2,200


OPERATING EXPENSE	178,911	143,014


PREPAID CAPITAL ADVANCES ²	—	—


CAPITAL EXPENDITURES ³	692	470


LOANS, INVESTMENTS AND OTHER REQUIREMENTS ⁴	—	—


REVENUE COLLECTED FOR, AND TRANSFERRED TO, OTHER ENTITIES ⁵	—	—


FULLTIME EQUIVALENT (FTE) EMPLOYMENT ⁶	200	157

NOTES
¹		For comparative purposes only, figures shown for 2003/04 expense, FTEs and capital expenditures have been restated to be consistent with the presentation of the 2004/05 Estimates. Schedule A presents a detailed reconciliation.
²		Details of prepaid capital advances are presented in Schedule C.
³		Details of capital expenditures are presented in Schedule D.
⁴		Details of loans, investments and other requirements are presented in Schedule E.
⁵		Details of revenue collected for, and transferred to, other entities are presented in Schedule F.
⁶		Details of FTEs are presented in Schedule G.


CORE BUSINESS SUMMARY
$000

	2003/04		2004/05 ESTIMATES


OPERATING EXPENSE		Net	Gross	External Recoveries	Net

Core Business
Improving British Columbia's Investment Climate and Competitiveness (includes special account)		6,646	3,891	—	3,891
Marketing and Promoting British Columbia		2,949	2,816	(10)	2,806
Enhancing Economic Development Throughout British Columbia.		22,360	19,142	—	19,142
BC Olympic Games Secretariat, Sport and Culture		62,944	30,504	(1)	30,503
Executive and Support Services		84,012	86,677	(5)	86,672
TOTAL OPERATING EXPENSE		178,911	143,030	(16)	143,014




CAPITAL EXPENDITURES		Net	Disbursements	Receipts	Net

Core Business
Improving British Columbia's Investment Climate and Competitiveness (includes special account)		—	75	—	75
Marketing and Promoting British Columbia		600	50	—	50
Enhancing Economic Development Throughout British Columbia.		15	—	—	—
BC Olympic Games Secretariat, Sport and Culture includes special accounts)		25	70	—	70
Executive and Support Services		52	275	—	275
TOTAL CAPITAL EXPENDITURES		692	470	—	470

OPERATING EXPENSE BY CORE BUSINESS
$000

	Estimates 2003/04	Estimates 2004/05

VOTE 34 — MINISTRY OPERATIONS
This vote provides for ministry programs and operations described in the voted appropriations under the following five core businesses:Improving British Columbia's Investment Climate and Competitiveness; Marketing and Promoting British Columbia; Enhancing Economic Development Throughout British Columbia; BC Olympic Games Secretariat, Sport and Culture; and Executive and Support Services.


IMPROVING BRITISH COLUMBIA'S INVESTMENT CLIMATE AND COMPETITIVENESS

Voted Appropriation
Improving British Columbia's Investment Climate and Competitiveness	5,146	3,391

Statutory Appropriation
Northern Development Fund Special Account	1,500	500
	6,646	3,891

Voted Appropriation Description: This sub-vote provides for development and enhancement of a positive investment climate and prosperous economy within the province, with particular emphasis on the deregulation initiative to reduce regulatory burden; management of tax policy programs to assist small and medium sized businesses; development of effective strategies to provide economic and business information on business sectors, regions and economic trends; and management of significant cross-government projects to enhance the province's competitiveness.

Statutory Appropriation Description: This statutory appropriation provides for the Northern Development Fund Special Account, which is governed under the BC-Alcan Northern Development Fund Act.


MARKETING AND PROMOTING BRITISH COLUMBIA

Voted Appropriation
Marketing and Promoting British Columbia.	2,949	2,806

Voted Appropriation Description: This sub-vote provides for facilitating trade and investment by developing a marketing strategy to provide the framework for communicating British Columbia's advantages and opportunities; showcasing British Columbia at national and international industry events; planning and managing trade missions to profile British Columbia in key markets; assisting the private sector to leverage identified marketing opportunities; and leading the marketing of British Columbia as a film and television production location. Recoveries are received from outside organizations and individuals for services provided by the BC Film Commission.


ENHANCING ECONOMIC DEVELOPMENT THROUGHOUT BRITISH COLUMBIA

Voted Appropriation
Enhancing Economic Development Throughout British Columbia	22,360	19,142

Voted Appropriation Description: This sub-vote provides for development and implementation of strategies to revitalize the economy and create greater economic diversification by leading the implementation of the Heartlands Economic Strategy; establishing a fast-track approval process for key projects; managing the British Columbia/Canada Infrastructure program to improve urban and rural local government infrastructure; developing and implementing a Tourism Development Strategy; and promoting the province as a competitive business location for the science and technology sectors.

OPERATING EXPENSE BY CORE BUSINESS (Continued)
$000

	Estimates 2003/04	Estimates 2004/05


BC OLYMPIC GAMES SECRETARIAT, SPORT AND CULTURE

Voted Appropriations
BC Olympic Games Secretariat	38,590	6,290
Sport.	8,698	8,713
Culture and BC Arts Council.	12,958	12,675
	60,246	27,678

Statutory Appropriations
Olympic Arts Fund Special Account	483	625
Physical Fitness and Amateur Sports Fund Special Account	2,215	2,200
	62,944	30,503

Voted Appropriations Description: This sub-vote provides for the BC Olympic Games Secretariat to ensure intra- and intergovernmental relations; provide assistance to the Organizing Committee for the 2010 Olympic and Paralympic Winter Games; build community support of the Games throughout the province; and the administration of the Olympic Arts Fund and the Physical Fitness and Amateur Sports Fund. The sub-vote also provides support for cultural, sport and physical activity policy and programs and for the administration and delivery of government programs under the Arts Council Act. Transfers are provided in support of the Organizing Committee for the 2010 Olympic and Paralympic Winter Games, amateur sport associations, physical activity projects, community development projects, Games-related programs, and for the programs of the BC Arts Council. Some costs are partially recovered from external organizations for program services.

Statutory Appropriations Description: This statutory appropriation provides for the Physical Fitness and Amateur Sports Fund Special Acount and for the Olympic Arts Fund Special Account.


EXECUTIVE AND SUPPORT SERVICES

Voted Appropriations
Minister's Office.	729	729
Corporate Services	9,763	8,323
British Columbia Pavilion Corporation.	5,000	5,000
Vancouver Convention Centre Expansion Project	67,000	71,300
Reserves for Doubtful Accounts	1,520	1,320
	84,012	86,672

Voted Appropriations Description: This sub-vote provides for the office of the Minister of Small Business and Economic Development, and administration and ministry executive support, including the deputy ministers' offices, financial and human resources, legislation and administrative services, records management and information systems, and the library. This sub-vote also provides for administrative support services for the Ministry of Energy and Mines. Transfers are provided to the British Columbia Pavilion Corporation towards capital, operating and facilities maintenance costs and for amortization of the provincial investment in the corporation and to the Vancouver Convention Centre Expansion Project. This sub-vote also provides for reserves for doubtful accounts and write-downs of investments. Recoveries are received from parties external to government for ministry services.


VOTE 34 — MINISTRY OPERATIONS	174,713	139,689
STATUTORY — NORTHERN DEVELOPMENT FUND SPECIAL ACCOUNT	1,500	500
STATUTORY — OLYMPIC ARTS FUND SPECIAL ACCOUNT	483	625
STATUTORY — PHYSICAL FITNESS AND AMATEUR SPORTS FUND SPECIAL ACCOUNT	2,215	2,200

MINISTRY GROUP ACCOUNT CLASSIFICATION SUMMARY
GROUP ACCOUNT CLASSIFICATION
Salaries and Benefits	15,749	13,995
Operating Costs	14,990	14,480
Government Transfers	143,253	109,862
Other Expenses	5,150	4,693
Internal Recoveries.	(16)	—
External Recoveries	(215)	(16)
TOTAL OPERATING EXPENSE	178,911	143,014

SPECIAL ACCOUNT¹
$000


NORTHERN DEVELOPMENT FUND
This account was created by the BC-Alcan Northern Development Fund Act, 1998. The purpose of the account is to promote sustainable economic development in northwestern British Columbia. Expenses are to support investment in new or existing businesses, to create new employment or stabilize existing employment, to support other goals consistent with the Act, and for the operations of the Nechako-Kitimat Development Fund Society. Interest earned on the fund balance is credited to the account as revenue. Administration costs are funded through the Ministry Operations Vote. No financing transactions are provided for under this account.

	Estimates 2003/04	Estimates 2004/05

SPENDING AUTHORITY AVAILABLE AT THE BEGINNING OF THE FISCAL YEAR²	6,866	7,466
OPERATING TRANSACTIONS
Revenue	600	575
Expense	(1,500)	(500)
Net Revenue (Expense).	(900)	75

Difference Between 2003/04 Estimates and Projected Actual Net Revenue (Expense)	1,500

FINANCING TRANSACTIONS
Loans, Investments and Other Requirements
Receipts	—	—
Disbursements - Capital	—	—
Disbursements - Other	—	—
Net Cash Source (Requirement)	—	—

PROJECTED SPENDING AUTHORITY AVAILABLE AT THE END OF THE FISCAL YEAR²	7,466	7,541


OLYMPIC ARTS FUND
This account was established under the Special Accounts Appropriation and Control Act, 2001. The account provides funding to promote hosting the 2010 Olympic and Paralympic Winter Games in British Columbia. Interest earned on the account balance is credited to the account as revenue. Expenses consist of transfers to groups and organizations for cultural and artistic activities that will promote hosting of the 2010 Olympic and Paralympic Winter Games in BC. Administration costs are provided through the Ministry Operations Vote. The initial account balance was established at $5 million. The balance was increased by $5 million on April 1, 2002 and April 1, 2003. A further increase of $5 million will be made April 1, 2004, under the authority of the Special Accounts Appropriation and Control Act, 2001. No financing transactions are provided for under this account.

	Estimates 2003/04	Estimates 2004/05

SPENDING AUTHORITY AVAILABLE AT THE BEGINNING OF THE FISCAL YEAR²	5,087	10,087
OPERATING TRANSACTIONS
Revenue	483	625
Expense	(483)	(625)
Net Revenue (Expense)	—	—
Transfer from General Fund	5,000	5,000

FINANCING TRANSACTIONS
Loans, Investments and Other Requirements
Receipts	—	—
Disbursements - Capital	—	—
Disbursements - Other	—	—
Net Cash Source (Requirement)	—	—

PROJECTED SPENDING AUTHORITY AVAILABLE AT THE END OF THE FISCAL YEAR²	10,087	15,087


PHYSICAL FITNESS AND AMATEUR SPORTS FUND
This account was originally created as a fund under the Revenue Surplus Appropriation Act, 1969, was continued under the Funds Control Act, 1979, and was changed to a Special Account under the Special Accounts Appropriation and Control Act, 1988. The account promotes the physical fitness of residents of the province and their participation in amateur sport. Interest earned on the account balance is credited to the account as revenue. Expenses consist of transfers to physical fitness and amateur sport projects, groups and organizations, and awards to individuals. Administration costs are provided through the Ministry Operations Vote. The account balance was increased by $5.5 million before April 1, 2002 and by $5.5 million on April 1, 2002 and on April 1, 2003. A further increase of $5.5 million will be made April 1, 2004, under the authority of the Special Accounts Appropriation and Control Act, 2001. No financing transactions are provided for under this account.

	Estimates 2003/04	Estimates 2004/05

SPENDING AUTHORITY AVAILABLE AT THE BEGINNING OF THE FISCAL YEAR²	7,437	12,937
OPERATING TRANSACTIONS
Revenue	2,215	2,200
Expense	(2,215)	(2,200)
Net Revenue (Expense)	—	—
Transfer from General Fund	5,500	5,500

FINANCING TRANSACTIONS
Loans, Investments and Other Requirements
Receipts	—	—
Disbursements - Capital	—	—
Disbursements - Other	—	—
Net Cash Source (Requirement)	—	—

PROJECTED SPENDING AUTHORITY AVAILABLE AT THE END OF THE FISCAL YEAR²	12,937	18,437

NOTES
¹		A Special Account is an account in the General Fund where the authorization to spend money from the account is located in an Act other than the Supply Act.
²		The Projected Spending Authority Available represents the cash and temporary investments projected to be available at the end of the fiscal year. The Spending Authority Available at the beginning of the fiscal year 2003/04 is based on the 2002/03 Public Accounts.