ICBA’s Jordan Bateman interviewed our new Chief Economist, Jock Finlayson, on the Q1 fiscal report delivered by Finance Minister Katrine Conroy for British Columbia and the impact of legislation C-69 on Alberta’s resource and infrastructure projects.
BC’s Fiscal Report: A Cause for Concern?
The fiscal report revealed a projected $6.7 billion deficit for this year, a staggering $2.5 billion more than initially planned. Finlayson pointed out that this deficit is higher than the one incurred during the peak of the COVID crisis, indicating a rapid rise in expenditures. The government’s plan for a significant increase in debt, both through operating deficits and capital spending, is a looming challenge for BC. The province is on track to reach $100 billion in taxpayer-supported debt by 2027, a significant leap from $41 billion in 2017.
The Housing Crisis and Economic Growth
They also touched on the housing crisis and the government’s forecast of a reduction in housing starts, despite the need for increased supply. Finlayson emphasized the lack of a coordinated response across different levels of government to address the crisis.
Federal Bill C-69 and its Impact on Resource and Infrastructure Projects
Finlayson expressed concern that legislation C-69 has not sped up decision-making in significant resource and infrastructure projects as claimed by the Trudeau government. Instead, it has had the opposite effect, leading to a negative perception of Canada as a place to invest in the natural resource and infrastructure sectors. He hopes that the Supreme Court of Canada will rule in favour of provincial jurisdiction over resource projects, but fears that they may side with the Trudeau government based on their previous carbon tax decision.
