The Province of British Columbia’s new budget is getting mixed reviews from the construction industry, with some groups saying it puts the economy on “autopilot.”
While the budget was balanced, the Independent Contractors and Businesses Association (ICBA) said more attention was paid to spending taxpayer dollars than growing the economy.
“It offers nothing for how to grow prosperity, how to get to yes on major projects, or how to attract investment to B.C. In fact, its tax hikes hinder that effort,” stated ICBA communications director Jordan Bateman. “With a razor-thin surplus dependent on a lot of things going right, B.C. taxpayers should be alarmed that the NDP Government has stopped paying attention to growing the economy.”
The BC Building Trades, however, praised the government for the level of capital investment and the implementation of apprenticeship ratios on government-funded infrastructure projects.
“BC Building Trades affiliates invest more than $18 million annually in apprenticeship and training to ensure our members do their best work, and do it safely. We expect these same high standards at every institution and welcome any measures that achieve that goal,” stated BC Building Trades president Dave Holmes.
He also pointed to the provincial government’s commitment to providing resources for women in the trades to enhance their skills and the use of a new Canada-BC Workforce agreement to insure the under-employed and vulnerable receive skills training.
“The significant capital investment of $15.8 billion over three years and support for apprentices and women in trades will not only benefit our industry but the province as a whole through a legacy of skills training and employability,” Holmes said.
The Progressive Contractors Association of Canada – BC applauded the new NDP government’s release of a balanced budget but voiced concern over a lack of infrastructure investment.
“We’re pleased to see some funding for infrastructure projects including the Pattullo Bridge. Major capital investments in schools and hospitals will also create new job opportunities for skilled tradespeople,” explained PCA BC regional director Rieghardt van Enter.
But van Enter pointed to a lack of further government infrastructure commitments in this year’s budget.
“Lifting uncertainty around Trans Mountain Expansion and LNG projects would go a long way in building the economy. Further delays are a missed opportunity to generate thousands of jobs, power the economy and pay for government programs through new revenues rather than new taxes,” he said.
An ICBA release pointed out while the Pattullo Bridge is funded, the Massey Tunnel Replacement Project does not appear in the budget, and planned rapid transit across Vancouver’s busy Broadway corridor and Surrey light rail do not appear as line items either.
The budget does mention the Massey Tunnel project, but only in the context of a South Fraser transmission relocation project completion date changing from 2019 to a “yet to be determined” status pending review of the Massey Tunnel Replacement.
Vancouver Regional Construction Association president Fiona Famulak said while the budget does address the needs of individuals, it falls short in helping business.
“From a tax perspective, construction employs over 220,000 people, and it’s the number one employer in the goods and services sector. It will be significantly affected by the elimination of Medical Services Plan (MSP) by 2020, which shifts the tax burden from employee to employer. That, along with minimum wage and the carbon tax, means business increased costs, which will affect growth,” Famulak said.
“It’s a budget that supports social needs but doesn’t spur innovation, productivity or enhance B.C.’s competitiveness and ability to attract global investment.”
She did point out, however, that the social initiatives in the budget will be beneficial to the construction industry.
“Six billion dollars over 10 years for housing is important and we applaud that. The demand for child care spaces far outweighs supply,” she said. “Child care also frees up parents back into the workplace which lets us shore up the workforce for the billions of dollars in construction work.”
The emphasis on housing will also drive construction employment, Famulak noted.
“The construction industry will be working hard to attract and retain workers for the construction that’s currently happening now and in the next few years. These are good investments that move the industry forward,” she said.
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