As independent experts and business leaders continue to question the state of the B.C. economy, Finance Minister Katrine Conroy said B.C. can afford its rising spending and debt.
"We understand that comments are made...we are coming up to an election," Conroy said. "I will continue to say that David Eby and the government will continue to support businesses. We'll listen to what the issues are and work with them to ensure that we have a good business community in our province."
B.C. continues to attract private investment and listen to the concerns of business, Conroy said, in pointing to the decision to cut the Employers' Health Tax for most businesses by raising its threshold in this year's budget.
She made these comments Tuesday afternoon after presenting financial figures for the first quarter of the fiscal year. These April to June numbers peg the deficit at $8.9 billion, about 1.1 billion higher than forecast. Cited reasons for the increase include higher spending on wildfires, servicing the debt, and lower corporate revenues following federal changes.
Figures also show B.C.'s debt-to-GDP ratio at 22 per cent, a figure lower than many other jurisdictions. By comparison, the federal government's debt-to-GDP ratio is about 42.4 per cent. But the figures also show that this ratio is expected to rise to almost 29 per cent by 2026-27.
Conroy said all available debt-metrics are within "reason" and B.C.'s economy remains strong. She acknowledged ongoing economic uncertainties, but predicted B.C. is starting to "turn the corner" thanks to improving economic conditions and investments in social and physical infrastructure.
This prediction appears against the backdrop of assessments that raise questions about government's economic management.
A report released last month by Parliamentary Budget Officer, an independent federal agency, ranks British Columbia toward the bottom of several economic metrics. They include long-term productivity, standard of living and per-capita income growth. The report also found B.C.'s current fiscal policy is not sustainable.
When asked about that assessment, Conroy said B.C. will continue to support people as it has in the past.
"We will continue to ensure that we are not making cuts," she said. "We will continue to ensure that we are providing the services that people are need. It's not the right time to tell people that they are not going to get the services they need. It's not the right time to tell people, 'we have to raise your taxes.'"
Closer to home, representatives from leading B.C. business organizations Tuesday released a statement that can also be read as criticism.
“If we do not create conditions conducive for growth, businesses will invest and grow in other provinces, the United States and elsewhere," it reads. The Business Improvement Areas of B.C. representing 70 business districts across the province Tuesday also released the findings of survey that found 97 per cent of businesses have seen the costs of doing business rise during past five years against a backdrop of growing public safety issues. Almost 40 per cent said they don’t believe they can remain viable or continue operating successfully past two years, unless conditions change.
Conroy repeated an earlier promise that government will eventually balance the budget, but did not give a firm timeline. She also evaded the question of whether this is the right time to provide additional relief.
"You are asking me about platform things...but from perspective, we have shown very clearly how we will support to people," she said, pointing to various initiatives. "I believe that people just need to look at our past actions. Actions speak louder than words."
That question came as figures show available contingencies of around $4 billion. Critics of government have referred to this contingency as a 'slush fund' to be distributed during the election campaign.
