VICTORIA – A report detailing hundreds of recommendations for B.C.’s 2023 budget has been released, including contributions from provincial construction leaders.
The Select Standing Committee on Finance and Government Services released its report on the budget with 216 recommendations. The report is intended to provide a comprehensive summary of the priorities, concerns and ideas shared by residents across a range of areas.
The B.C. Construction Association (BCCA) urged the province to take action to address payment issues in the construction sector.
Prompt Payment
The BCCA explained to the committee that construction is the only sector in which it is standard practice for purchasers of services to require 90 or 120‐day payment terms and then to delay payment even on those terms.
They referenced other jurisdictions with prompt payment legislation and noted the BC Lien Act has been reviewed and is ready to be updated, and the adjudication model, developed by Ontario, can be utilized in B.C.
“According to the organization, enacting such legislation would help get funds to tradespeople who may be already struggling to afford housing and groceries due to inflation and rising interest rates as well as free up billions of taxpayer dollars, helping construction projects to be delivered on time and on budget,” stated the report.
While advocating for prompt payment legislation, the association also spoke about increasing risk and uncertainty for small contractors related to cost of materials, gas prices, interest rates, labour shortages, and pandemic and safety protocols.
Climate resilience
In the report, the BC Road Builders and Heavy Construction Association told the committee about the need to immediately invest in climate resilient infrastructure and encouraged sustained long-term funding to allow industry to develop innovative and efficient solutions.
They also noted the importance of considering sustainability when procuring contractors for infrastructure projects, as this saves money for the taxpayer in the long-term.
Worker shortages
The BC Road Builders and Heavy Construction Association raised concerns related to labour challenges, noting the industry has had to dedicate significant resources to attracting workers for current and future projects.
“Without a fully staffed sector, almost every other industry sector in the province will be negatively affected whether through less frequently maintained infrastructure or slower responses to future natural disasters,” stated the report. “They further noted that union mandates for projects reduces the number of contractor bids.”
Budget of opportunity
Many of the respondents in the report highlighted climate change mitigation and resiliency, access to health care, and the need to address the rising cost of living as key themes.
To address these areas, committee members emphasized the need for improved data collection and accountability to ensure better decision-making that is rooted in reconciliation, equity and inclusion.
“During the consultation, we heard about the effects of climate change with respect to natural disasters, food security and supply chain challenges,” said Janet Routledge, committee chair, in a statement. “The committee recognizes that the next budget is an opportunity to invest in climate mitigation to improve resiliency, particularly with respect to transportation infrastructure and agriculture.”
The Select Standing Committee on Finance and Government Services is one of 10 permanent parliamentary committees established to undertake work on behalf of the legislative assembly.
The committee, currently made up of MLAs from government and the official Opposition, holds an annual public consultation regarding the provincial budget.
This year, the committee’s consultation began on May 30, coinciding with the release of the Budget 2023 Consultation Paper by the Minister of Finance, and concluded June 24. The committee heard 306 presentations and received 372 written submissions in addition to 861 responses to the online survey.
The full report is available at www.leg.bc.ca/cmt/finance.
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