Minister's Message

The provincial budget and speech from the throne, both tabled in the month of February, have established the government’s priorities and action for the coming year. Together, they lay out an aggressive agenda, focused on a strong economy, a 33 per cent reduction in greenhouse gas emissions by 2020, and robust social programs, including affordable housing, for the province.   In addition to these two significant events, the last month has also seen the government unveil a new Energy Plan, which sets a North American leading target of zero net greenhouse gas emissions from new electricity production.

This newsletter provides an overview of these important announcements. You will also find news about the Provincial Sales Tax review, the Children’s Education Fund, a new discussion paper on the Insurance Act, and more.

I hope you find this Minister’s Update informative and helpful in keeping you up to date.

Minister of Finance

Balanced Budget 2007 Balanced Budget 2007 delivers a comprehensive range of new supports, including a $250 million Housing Endowment Fund, to help address the housing challenges created by a strong economy. It provides improved supports for the homeless, seniors, those with special needs, low-income renters, and first-time home buyers. In addition, to help every taxpayer with their housing expenses, the budget cuts British Columbia personal income taxes by 10 per cent

Since 2001, most British Columbians have seen personal income tax reductions of between 30 and 70 per cent. British Columbia now has the lowest personal income taxes in Canada for individuals earning up to $108,000

on earnings up to $100,000. This personal income tax reduction builds on the tax cuts introduced in 2001 and 2005. As a result, 250,000 British Columbians now pay no provincial income tax, others have seen reductions of up to 70 per cent, and most have seen reductions of between 30 and 35 per cent.

Balanced Budget 2007 takes a major step towards ensuring every British Columbian has access to a safe, appropriate and affordable place to call home. More on Balanced Budget 2007

Provincial Sales Tax Review

A competitive and streamlined tax structure benefits British Columbians by making it easier to do business, encouraging business growth and investment, and promoting B.C. as the most small-business-friendly jurisdiction in Canada. Based on consultations that took place across the province in 2005 and 2006, the Minister of Small Business and Revenue completed a review of provincial sales tax policies and legislation to develop options to simplify, streamline and enhance the fairness of the sales tax.

Balanced Budget 2007 implements 13 recommendations that flow from the PST review. These changes will save B.C. businesses approximately $40 million annually. The PST Review identified other options to simplify tax applications that will require further discussion and analysis, since they would result in fundamental changes for certain businesses. Through 2007/08, the Ministry of Small Business and Revenue will continue consultations with affected businesses on these issues.

More on Provincial Sales Tax Review

 

Children's Education Fund

Insurance Act Review

To help British Columbia's young people meet their post-secondary skills development needs, the B.C. Children's Endowment Fund will invest $1,000 for each child born or adopted in British Columbia beginning in 2007. The fund is expected to grow over 18 years to almost $1 billion. Grants may be used at a range of B.C.-based facilities providing academic, trades or other vocational training.

More on the Children's Education Fund

Investment Tour

Finance Minister Carole Taylor recently met with financial and business leaders in New York and Toronto to discuss the new budget and British Columbia’s economic success. The annual visit helps maintain an open dialogue with major government-bond investors. Increased investor confidence and higher credit ratings mean reduced borrowing costs for the Province and a better business investment climate.

Speech from the Throne

The Third Session of the 38th Parliament was launched Feb. 13 with a Speech from the Throne that calls for bold action to reduce greenhouse gas emissions, create better choices for students and patients, and a plan to reduce homelessness.

More on the Throne Speech

BC Energy Plan

Aggressive targets for zero net greenhouse gas emissions and new investments in innovation highlight the new B.C. Energy Plan: A Vision for Clean Leadership. The 55 policy actions in the plan focus on the Province's key natural strengths and competitive advantages of clean and renewable sources of energy.

More on B.C.'s Energy Plan

 

 

 

Enhanced consumer protection and clearer legislation are the focus of a new discussion paper on proposed amendments to the Insurance Act. The act regulates contractual agreements between insurers and their customers, and has not been substantively reviewed since the 1960s.

The consultation paper is intended to provide interested parties with the opportunity to comment on a proposed direction for reforms to the act. The proposals do not represent government policy; rather, the paper is intended to elicit discussion. Legislation to implement reforms to the act is targeted for the spring of 2008.

More on Insurance Act Review

 

Minister Taylor at the Budget Day media lockup

Procurement Achievements

The Province of British Columbia buys more than $4 billion worth of goods and services each year on behalf of British Columbians. Therefore, it is important to promote best practices that ensure an open and fair procurement process and value for the taxpayers of British Columbia.

On February 16, the first graduating class of the Procurement and Contract Management program (PCMP) was honoured at a graduation ceremony in Victoria. The PCMP is a comprehensive and award-wining training program that provides B.C. government employees with the necessary skills and knowledge to achieve successful performance in procurement and contract management.

This made-in-B.C. program has four proficiency levels. It requires approximately 225 hours to complete the 13 courses needed to achieve Level 3 certification and full graduation. The first class began the program in 2004 and graduated in 2007.

This graduation marks an important milestone in a broader effort to modernize the government's corporate procurement policy, provide support and training to staff, and monitor compliance with procurement policies.

The new training and other initiatives are generating tangible results, with the latest audit report showing significant improvements in procurement policy compliance and management across government ministries.

More on Government Procurement

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