VICTORIA — Construction industry stakeholders in B.C. are sounding the alarm after Finance Minister Brenda Bailey’s first budget calling it not strong enough, out-of-touch and concerning.
In the midst of U.S. President Donald Trump’s tariffs on Canadian goods Bailey said the budget defended the province. It includes a deficit that tops $10 billion for the first time, as well as $4 billion in annual contingencies for each of the next three years to cover “unpredictable costs” including tariff responses.
The budget includes $4.2 billion over three years to increase capacity in the health system, and a further $15.5 billion for capital investments in hospitals and other facilities over the same period.
Independent Contractors and Businesses Association of B.C. president and CEO Chris Gardner says the combination of massive deficits, rising debt and a looming trade war will have dire consequences for B.C.’s economy and the construction industry.
“Premier David Eby’s government is spending as if everything is fine when the reality is, British Columbia is on the brink of a recession,” said Gardner in a statement. “This budget was out of date before it was even printed. A full-blown trade war with the United States will hammer B.C. exports, drive up costs for builders, and put tens of thousands of jobs at risk.”
The ICBA is calling for several action items to “protect jobs and investment,” including slashing project approval timelines to speed up housing and infrastructure development; reversing tax and fee hikes; scrapping Community Benefits Agreements; focusing more on core infrastructure such as sewers, water, ports, pipelines and highways; and helping cities fund key municipal infrastructure.
“This government has spent years getting in the way of economic growth. Now we’re facing a crisis that requires bold action,” Gardner said. “The NDP has failed to course-correct, leaving B.C. weaker, in serious trouble and with a limited ability to respond.”
The Progressive Contractors Association of Canada (PCA) shared a similar view, calling the budget not strong enough to “buffer British Columbians from punishing U.S. tariffs.”
“While we fully appreciate the extreme pressures that 25 per cent tariffs have created, this budget creates a bumpy path forward with higher debt, little tax relief, and more rising project costs,” said Dan Baxter, regional director, B.C. at PCA. “It’s time for a course correction and honest conversation about government policies that make today’s fiscal challenges worse.”
He also stated while provincial plans to greenlight more critical infrastructure projects was a welcome inclusion, “we hope the province will give our contractor members and their workers the chance to build these projects and a stronger B.C., but that would require a change in labour policies.”
For the British Columbia Construction Association (BCCA), there were concerns
support for the construction industry continues to be insufficient.
“The provincial government has made clear its commitment to defending our province and growing our economy—now, it’s time to follow through,” says Chris Atchison, president of BCCA. “The construction industry has identified straightforward strategies and solutions that will enhance resilience and drive productivity. We’re ready and willing to work with the provincial government to get these done and build a stronger B.C.”
Eliminating barriers to interprovincial trade, implementing prompt payment legislation, and streamlining approval and contracting processes were all asks outlined by the association in its post-budget reaction.
“The majority of our members are concerned that economic uncertainty will reduce demand for projects in B.C.,” adds Atchison. “We urge the provincial government to take immediate action by passing policies and investing in initiatives designed to protect, preserve, and power one of our province’s strongest industries and economic contributors.”
Mechanical Contractors Association of BC CEO Kim Barbero said the budget was “somewhat sobering” and it did not respond to the importance of investment in the skilled trades workforce.
“Trades training, certification and recruitment are a priority for MCABC, our member company owners and leaders. We need a pipeline of qualified skilled trades workers who can perform our province’s very important work,” said Barbero.
“Mechanical contractors in B.C. make all builds work – hospitals, schools, homes and businesses. We touch every person in every community throughout B.C. Without an investment in developing and advancing our industry’s skilled trades with improved and modernized training systems and clear and encouraged pathways for high school students, projects will continue to be delayed and exceed anticipated budgets.”
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