Highlights of the Year

  • The Ministry of Economic Development continued to contribute toward building a strong economy and a positive business climate in B.C. in 2005/06. The province took advantage of the excitement and preparations for the Vancouver 2010 Winter Olympics and Paralympic Games and a growing and prosperous economy. Consumer spending in B.C. was also up 1.6 per cent. During the year, B.C. employment also climbed: 84,000 people were added to the labour force, and the unemployment rate continued to drop, to 4.4 per cent in March 2005. Ministry's achievements for each core business areas in 2005/06 included:

OLYMPIC GAMES SECRETARIAT

  • B.C.-Canada Place in Torino, Italy, opened in January 2006, to give B.C.'s businesses, tourism agencies and community groups the opportunity to form new partnerships and build new relationships with an international audience at the 2006 Olympic and Paralympic Winter Games. More than 80 B.C. companies joined the province in Torino to take advantage of the facility.
  • From January through March, B.C. – Canada Place in Italy hosted over 100,000 visitors, and dozens of workshops and networking events.
  • The province launched a series of Commerce Centre Workshops, to give B.C. companies access to accurate and timely information about the business and economic opportunities that will be created leading up to the 2010 Winter Games and beyond. In November 2005, the Guide for Business Opportunities was introduced. This publication gives companies early access to information, and advice about how they can grow and prosper from the 2010 Winter Games.
  • Eighty-four Olympic/Paralympic Live Sites totalling over $13M were approved to assist with special projects throughout the province that ensure the benefits of hosting the 2010 Olympic/Paralympic Winter Games are shared throughout B.C. (administered by the Infrastructure Development Branch).

B.C. BUSINESS

  • The B.C. Competition Council was launched to lead B.C.'s efforts to identify and recommend actions that can be taken by industry and by government to increase the competitiveness of the province's key economic sectors. Improved competitiveness will increase market share for B.C. produced goods and services, and contribute to creating jobs and economic activity.
  • The province introduced legislation for Venture Capital and Employee Sponsored Funds to streamline access to private capital. These funds are an important source of investment capital for eligible small and medium-sized B.C. businesses. They diversify B.C.'s economic base and support economic growth and job creation.
  • Film Tax Credit analysis in November 2005 found that over 23,900 jobs are directly attributed to the film industry in B.C., which generates $121 M in tax revenue and receives $66 M in tax credits.
  • Throughout 2005/06, B.C. and Alberta officials advanced negotiations to eliminate impediments to trade, investment and labour mobility between the two provinces. This deal will result in potential increased job creation and economic growth in all B.C. regions and sectors.

INFRASTRUCTURE

  • In 2005, government committed $66 M for the Community Development Initiative (CDI). More than 60 community projects located across the province received funding to enhance community centre, recreation centre and tourism infrastructures.
  • In the 2005/06 Budget, the government announced $50 M towards the Major Regional Sports Facilities Initiative over the year. Funding has been committed to eight projects to date, including Nanaimo, Kelowna, Kamloops, Penticton, Sovereign Lake, Smithers, Kimberley and Fort St. John.
  • In the 2005/06 – 2007/08 Budget and fiscal plan, the government also announced $60 M towards the Major Post-Secondary Sports Training Facilities Initiative. So far, funding from this Initiative has been committed to projects at the Universities of Simon Fraser, B.C. and Northern B.C. and Camosun College.
  • Together with the Federal government, the province embarked on several infrastructure projects to enhance the quality of life for people in communities around B.C. by improving infrastructure (including improving drinking water and wastewater systems, developing energy efficient buildings and supporting community infrastructure).
  • B.C. announced funding for the Quesnel Wood facility under Western Economic Partnership Agreement. The project builds capacity in the Cariboo region's value-added wood product business, and helps diversify the economy of northern B.C.

REGIONAL ECONOMIC DEVELOPMENT

  • B.C. built a new relationship between Columbia Basin Trust and Columbia Power Corporation that meets the goals of both Crown corporations and strengthens the Columbia Basin. This means more funding for community projects in the Columbia Basin and more input for citizens in the region on how the power resources are managed.
  • The province announced an additional $50 M for the Northern Development Initiative Trust(NDI), making a total of $185 M in seed capital available to benefit families and businesses located in B.C.'s north. The additional $50 M includes $30 M specifically aimed at cross-regional pine beetle management and $5 M to each of the four NDI regions for development projects. The Trust was first established in 2004 as part of the B.C. Rail Partnership.
  • $100 M was provided for two new regional initiative trusts to support strategic investments in the economies of the Southern Interior and North Island-Coast, to create economic growth and more jobs based on regional priorities.

ASIA-PACIFIC STRATEGY

  • The Asia-Pacific Trade Council was appointed to lead B.C.'s involvement in the trade/investment and international commerce components of the Asia-Pacific initiative. Through the Council, Market Advisory Groups have been established to access opportunities throughout Asia including China and Hong Kong. The Ports Strategy was completed, which outlines new and expanded transportation links to the Pacific through the Port of Prince Rupert, the Port of Vancouver, and cruise ship facilities all along the coast.

BIOTECH, SCIENCE AND TECHNOLOGY

  • The Premier's Technology Council (PTC) released its seventh report, noting the progress made in advancing B.C.'s technology competitiveness since 2001. In particular, the Council notes the province has acted on over 90 per cent of its recommendations to date.
  • The government has implemented tax changes to make the province an even more attractive centre for biotechnology innovation. Significant new tax incentives will encourage companies that invest in the development of intellectual property in the form of patents to remain and expand their capital investment in B.C. as they move their ideas to market.
  • For the third year in a row, the Venture Capital Programs operating under the Small Business Venture Capital Act were fully subscribed by adding another $67 M of early stage financing for small businesses primarily in the technology sectors. The province now leads the country in terms of venture capital available for companies in the earliest stages of their development. In recognition of this achievement, the Ministry expanded the program budget by another $17 M and legislation was introduced to increase the amount of capital that small businesses may receive under the program.

INDUSTRY TRAINING

  • The province's balanced budget 2006 granted the Industry Training Authority (ITA) an additional $13 M each year for the next three years, bringing its annual budget to $90 M, the highest ever for trades training.
  • An additional $2.2 M in funding was provided for ITA to establish 1,450 additional apprenticeship technical training spaces between October 2005 and April 2006.
  • An ITA Mobile Training Unit was funded to deliver training in skilled trades to rural/aboriginal communities too small for a permanent facility, and thereby offers a new choice for those who are interested in entering the trades or current apprentices needing to continue their training.
  • The provincial budget also announced a training tax credit to encourage employers to create new opportunities and help meet the demand for skilled workers. The credit program will be designed in consultation with industry representatives from around the province.

IMMIGRATION

  • Six organizations were selected who may deliver the B.C. Skills Connect for Immigrants Program (to be launched in early 2006/07). The Program assists employers in hiring skilled workers to meet existing and emerging skill shortages and helps immigrants to gain access to employment opportunities in areas commensurate with their skills and qualifications.
  • The province announced change in investment requirements and credentials allowing more business immigrants and foreign dollars to flow to B.C. through the Provincial Nominee Program.
  • The B.C. Provincial Nominee Program was expanded to include a Regional Business category to support regional economic development. The Foreign Students component has also been expanded to include business-related fields of study.
  • $40,000 in funding was provided to help launch the Employers' Online Resource Guide to assist employers in recruitment, selection and retention of immigrants into the B.C. labour market.
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