The findings of a report released today calculating the cost of living in Greater Victoria is not a surprise.
According to the Community Social Planning Council, the 2023 Living Wage for Greater Victoria is $25.40 per hour. That's $1.11 (4.6%) higher than the 2022 rate of $24.29 per hour. "The Chamber continues to work on helping employers find and keep workers, and one of the biggest challenges for organizations is the impact of labour costs on top of all the other input costs that have gone up over the past year," Chamber CEO Bruce Williams said. "Our members are great employers, but it's not easy passing on higher prices to customers. We need all levels of government to address the root of these rising costs." Annual household expenses for a family of four are up $2,393.29 from 2022. The report, released in partnership with United Way Southern Vancouver Island, cites shelter and food costs as well as non-MSP health expenses for the increase. “Given the pressures of housing and inflation, the rise in the Living Wage is alarming but not totally unexpected,” UWSVI Executive Director Erika Stenson said. “It also provides us — whether we are employers, any level of government, business, or labour—with the incentive to convene and discuss realistic, pragmatic ways to help families in Southern Vancouver Island manage the issues around affordability." The Chamber has joined the Save Our Streets coalition that is raising awareness about the impact public disorder is having on communities across the province.
The coalition wants all levels of government to do better at addressing issues of addiction, homelessness and criminal behaviour that have become increasingly visible in BC's downtowns. Chamber CEO Bruce Williams spoke with CBC Radio this week about what he's hearing from members as well as chambers across Canada. Governments are working on changing the legal system to keep repeat offenders off the street, but the process takes time. There also needs to be a more collaborative approach between all levels of government. "Business people are compassionate and care deeply about their communities, but there is growing frustration with seeing so many people in open distress," Williams said. "We all want to help and we need better solutions than those that aren't working." A Request for Qualifications has gone out for the design and construction of a modern Belleville Terminal. The RFQ will lead to a shortlist for the Request for Proposals to carry out the upgrades to the terminal.
The project has a $303.9 million budgets and is expected to be completed ahead of the 2028 tourism season. The federal government has confirmed $41.6 million for the project. After the upgrade, the terminal will be in compliance with the Canada-U.S. Land, Rail, Marine and Air Transport Preclearance Agreement, allowing passengers to complete the US customs and immigration process in Victoria, prior to disembarking in the United States. The Songhees Nation and Esquimalt Nation will be able to showcase the cultural and geographical significance of the project’s location, and welcome visitors into Lekwungen territory. Travellers spend approximately $174 million annually, generating $268 million in economic output and $155 million in provincial gross domestic product (GDP). "As a gateway to Canada, to British Columbia and to our region, Belleville Terminal serves as a vital connection point for trade and tourism. The Greater Victoria Chamber of Commerce has made the case for modernization for more than 20 years," Chamber CEO Bruce Williams said. "I'm encouraged to see progress being made now. There is an urgency to ensure Belleville can continue to serve as an important border crossing and point of entry, and the time is now for this project to happen." Statistics Canada's latest figures show the nation's August GDP was lower than expected. Real gross domestic product was flat throughout the summer as inflation, international conflicts and climate events continue to drag down many industries.
"The economy is clearly stagnating. With these numbers, you could make the argument that we’re in a technical recession, with the third and fourth quarters now expected to be essentially flat, and weaker than the Bank of Canada’s forecast released last week," Canadian Chamber of Commerce Senior Economist Andrew DiCapua said. "This economic weakness should put a lid on inflation pressures. But we’re dealing with a bit of a mirage, with GDP growth increasingly being fueled by a fast-growing population. That’s concealing a hard truth — that real GDP per person is falling, and poor productivity is expected going forward." Starting last week, all employers in BC will need to include salary or wage information on publicly posted jobs. BC's new Pay Transparency Act takes affect Nov. 1.
The goal is to try to ensure all people are offered the same pay for the same work, and prohibits employers from asking prospective employees about how much they earned in the past. As well, employees can't be punished for disclosing what they are being paid. Large and medium-sized employers must also begin publicly posting reports about their gender-pay gap, based on a phased approach:
Some good news this morning for businesses and households feeling the pinch of higher borrowing costs.
The Bank of Canada kept its target for the overnight rate at 5%, signalling that earlier efforts to cool inflation by slowing the economy are working. Interest rates climbed faster than expected as inflation spiked after a series of global crises. The war in Ukraine, climate events in agricultural areas and disrupted supply chains have been cited for increasing input costs. The central bank said today that it might still raise interest rates further, though some experts say the message is likely more bark than bite. The Conference Board of Canada said that fears of a recession could become a "self-fulfilling prophecy." The Bank of Canada’s recent Survey of Consumer Expectations found that 55% of respondents expect a recession is coming. "It is likely these recession fears are encouraging households to scale back their spending, a finding backed by trends seen in our Index of Consumer Spending and Index of Consumer Confidence," the Conference Board said in its report. "This additional pull-back could give the final nudge to materialize a recession within Canada." Advocacy efforts to extend the CEBA repayment deadline appear to be working. The Chamber and our national network along with many other business organizations are calling on the federal government to give businesses more time to repay without losing the forgivable portion of their CEBA loans.
Chamber Chair Kris Wirk said in a September media release that “The reality facing many small businesses — especially those in hospitality, tourism and retail — is that they have a viable path to making a full recovery but it’s going to take longer than expected.” This week, federal Small Business Minister Rechie Valdez told BNN Bloomberg that she's heard the message and seen the struggles facing businesses firsthand. She promised to go back to government to do more. Under the Canada Emergency Benefits Account, businesses that needed help during the pandemic were offered loans of up to $60,000. Part of the appeal was that one third of the loan would be forgiven if paid by the deadline, which was extended from Dec. 31 to Jan. 18. And while 2024 seemed like a long way off in the depths of the pandemic, unforeseen challenges with inflation and interest rates has kept many businesses from fully recovering. Chamber member Megan Johns, owner of The Green Kiss explained the situation succinctly to CBC, noting that she was on schedule with her CEBA loan until operating costs began to soar faster than her business could grow. "Margins are getting smaller and smaller and smaller due to the rising costs across the board," Johns said. "Every aspect of the business has become more challenging and it is more challenging now than it was in 2020 so far." Kids will fill the streets hunting for sugary treats on Tuesday to celebrate Halloween night, but there is plenty of themed fun to be had be this weekend. Greater Victoria is known as one of the most haunted places in Canada, and this spooky season is the perfect time to experience something new — if you dare! Visit a local pub or nightclub to show off your great costume skills, or have a Halloween meal at a great restaurant before handing out handfuls of candy to trick-or-treaters. Check out Destination Greater Victoria's list of Top 10 Haunted Places in Victoria and Eerie-sistable Halloween Activities in Victoria if you’re dying to see a ghost, and explore famously haunted sites. Spooky stories await at Craigdarroch Castle, Hatley Castle at Royal Roads University, the Fairmont Empress, Rogers’ Chocolates, and many more. If you’re looking to burn off that extra sugar from Halloween treats, check out a local fitness facility, and be sure to recycle your pumpkin at Pumpkin Smash 2023 in the City of Langford on Nov. 4. Whatever you may be up too this Halloween, The Chamber hopes you have a fun (and frightening) time! Chamber members have been calling for a better way to recognize certification gained outside BC. New legislation introduced this week is a step forward, recognizing 29 professions overseen by 18 regulatory authorities.
If the international credentials recognition act passes, the province could have a new superintendent by next summer in charge of fair credential recognition. "We know the stories of highly trained professionals who come to Canada and are only able to find work washing dishes or driving cabs," Chamber CEO Bruce Williams said. "International standards often correspond with provincial standards, so it makes perfect sense to let people who choose to come here continue their careers here. Employers in our region have positions going unfilled and workers are underemployed. Simply put, recognizing international certification will improve this disconnect." The 29 occupations are:
The Chamber strongly supports safe communities. Everyone needs to feel safe at home, at work and in our communities.
Last week, new legislation was introduced to ban the use of illicit drugs from:
The legislation attempts to address concerns raised now that personal possession of small amounts of illegal drugs is permitted. The rule change is part of a pilot program to reduce stigma, cited as a barrier holding people back from seeking help. If passed, the legislation will allow police officers to stop people from using drugs if they don't move to a supervised consumption site or other appropriate area. Last week's announcement by the federal government that it was working with Canada's largest grocers to stabilize food prices is a start. But it will take more than blaming business to bring inflation back to its target rate of 2%.
On Oct. 5, the Minister of Innovation, Science and Industry said grocery store chains were committed to price stability. The government also moved to strengthen the voice of consumers, increase industry transparency and improve available data on Canada's agri-food supply chain. Yesterday, an industry association representing grocers called for a pause on increases to the regulated price of milk. The Canadian Dairy Commission sets changes to the cost of milk that take effect every February. "If government is serious about reducing the price of groceries it needs to look at cutting costs before products get to retailers," Chamber CEO Bruce Williams said. "Government contributes to cost increases when it adds regulatory burdens and increases taxes. We can't expect farmers and other producers to pay for these extra costs which get passed along to the consumer." Cutting through red tape is another way to help construction projects get started faster and proceed more efficiently.
Starting next spring, 16 local governments — including the District of Saanich and the City of Victoria — are piloting a new digital tool that could speed up the process of building new homes. “Digitizing the BC Building Code and building permit processing will help builders more efficiently obtain approvals to deliver the homes and job spaces British Columbians need,” Urban Development Institute president and CEO Anne McMullin said. “UDI is pleased to participate on the digital advisory council for this pilot partnership and is committed to working with the government on innovative solutions like this.” The Chamber has long called for a more sensible approach to recognizing the skills newcomers bring to Canada. We've all heard the stories of trained doctors driving cabs and other professionals who can't work in their chosen field despite high demand for their service.
"That is changing. I'm thrilled to share the news that British Columbia is moving to help regulatory bodies improve the process of credential recognition," Chamber CEO Bruce Williams said. "We hear all the time from employers who are frustrated because they need workers but can't hire qualified newcomers because they were trained out of province." Upcoming legislation will streamline pathways for skilled people with international credentials while maintaining standards and safety. According to the provincial government, 387,000 newcomers are expected to enter the B.C. workforce, filling 38% of job openings over the next 10 years. Chamber advocacy is helping make changes that will increase housing supply. This is critical to a sustainable economy. We need more homes for people of all incomes so our region remains attractive as a place to grow a business, build a career and raise a family.
One of the keys to building more houses is for our construction sector to have enough skilled workers. The industry is expecting more than 72,000 jobs to open up over the next decade. A new fund, announced today, will provide grants of up to $5 million per project. The Workforce Innovation Fund will:
"We continue to work with all levels of government, our partner organizations and our national chamber network to call for investment in the construction industry," Chamber CEO Bruce Williams said. "Builders need to have the people and resources required to improve our critical housing supply." How much is too much when it comes to adjusting price points to ensure your business stays sustainable? In a speech yesterday to the Montreal Chamber of Commerce, the Bank of Canada said changes to how prices are set has become a risk for inflation.
"In ordinary times, prices are sticky. Companies typically don’t adjust prices often, even if input costs change or consumer demands shift. Why not? Because it can be expensive to change prices," Bank of Canada Deputy Governor Nicolas Vincent said, citing steps in a typical process to analyze competitive risks. "But during the recovery from the pandemic, firms were faced with fast-rising input costs and they saw that consumers had less choice because supply was low everywhere. This allowed them to pass those changes on to consumers more quickly and more fully than usual." The Bank, which is scheduled to make its next interest rate announcement on Oct. 23, said it's concerned that rising prices are now seen as normal. "If stores expect their suppliers and competitors to change prices more frequently, and consumers are willing to continue paying higher prices rather than shopping around, then it creates a feedback loop," the Bank said. "This could make prices more sensitive to shocks, making it more difficult to get inflation back to our 2% target." Greater Victoria has risen to the top of Conde Nast's annual ranking of the Best Small Cities on the planet. More than 520,000 people took part in the readers' choice awards.
Our region came close last year, placing second on the list, but this year we are at the top thanks to our proximity to Vancouver and "one of the world’s most scenic ferry rides." The international travel magazine point out the "bucket list-worthy Fairmont Empress," and our reputation as the "most British town in Canada." Other factors were the fact our ancient rainforests are so accessible, as are many easy day trips on the Island. The Chamber advocates for Climate Action Leadership as businesses adapt and respond to changing expectations for seasonal weather events. Updated provincial legislation will help modernize the ability of businesses and their communities to better respond to emergencies and disasters.
British Columbia's new Emergency and Disaster Management Act will replace the Emergency Program Act, which is almost 30 years old. "Including Indigenous knowledge — by developing regulations in consultation with First Nations — is important and something The Chamber fully supports as work toward a sustainable future," Chamber CEO Bruce Williams said. "The climate has changed and we will continue to experience extreme weather events every year. This, of course, goes beyond borders and even local planning needs to consider the global context." The changes align with the international agreement to protect communities from climate events. For more , go to the United Nations Office for Disaster Risk Reduction. Rising costs and finding and keeping staff are two of the biggest challenges facing employers. Yesterday, BC Ferries was told it could only increase fare prices by 3.2% annually between April 1, 2024 and March 31, 2028. The increase had been forecast at 9.2% but was reduced because of a $500 million provincial government subsidy.
The ferry corporation — part of the foundation of Vancouver Island's economy — was also told yesterday that the province will begin levying fines for missed sailings on select routes. The penalties will apply when core services are cancelled — $7,000 if a major route and $1,000 if a minor route. Many of the details have yet to be announced. Over the summer, ferry cancellations made headlines and frustrated travellers as mechanical issues and a lack of available staff affected numerous sailings. "BC Ferries provides a vital connection between the Mainland and the Island, so we do need certainty that sailings will happen as scheduled," Chamber CEO Bruce Williams said. "But perhaps there are regulatory changes or innovative solutions that can be made to modernize staffing requirements while maintaining public safety as the priority." Whether you’re looking to cook your own Thanksgiving meal, or prefer someone else do the work, Thanksgiving is the perfect time to enjoy great food and spend quality time with the people you love.
Take time this long-weekend to check out some of the exciting activities and venues across Greater Victoria. If you’re looking to unwind while staying close to home, or need a place for the in-laws to stay, check out the beautiful hotels Greater Victoria has to offer. As the weather begins to cool, now is a great time to consider supporting one of Greater Victoria's local non-profits. The Chamber would like to wish you and your family a happy Thanksgiving! The Chamber office will be closed Monday, Oct. 9. Unless you're stuck under the proverbial rock, you know that economies around the world are facing some serious doldrums. The latest report from the Conference Board of Canada adds to the dreary outlook. Headlined, "Consumer confidence falls to Its second lowest point to date," the index of Consumer Confidence shows that Canadians are feeling bummed about their finances.
"We had hoped to be through the rough patch by now but it's proving persistent," Chamber CEO Bruce Williams said, noting that the fight against inflation and the re-balancing of global supply chains continues to take a toll. "We will get through this, as we have countless times in the past, by supporting each other. So much work has gone into building a resilient economy for Greater Victoria, and, as a result, we are in a better place than many other regions." The Index of Consumer Confidence was 59.6 in September, compared to 61.2 in August. The Conference Board said wildfires likely contributed to the pessimistic outlook in BC. The targets are now official for three Greater Victoria municipalities deemed to be among the top 10 BC communities with the most pressing housing needs.
The Housing Supply Act requires the following number of new homes within five years:
“These targets are a step toward creating more homes to meet the diverse housing needs of Saanich residents,” Saanich Mayor Dean Murdock said in the province's news release. “We are committed to working together with the Province on housing solutions, and welcome their support to help us achieve our goals.” After six months, and every year thereafter, municipalities will be evaluated on their progress. A second cohort of eight to 10 municipalities will be selected by the end of the year. An adequate housing supply directly supports a robust workforce, which is critical for employers' efforts to find and keep staff. Reducing red tape at the municipal level is one of the keys. Investing in efficiencies is another, which is why The Chamber supports last week's news that funding will help local governments improve their development-approval processes.
The province has $61-million in capacity funding to be distributed over three years. With Sept. 30 marking National Day for Truth and Reconciliation, The Chamber continues to work to support Indigenous entrepreneurs and First Nations. "The more we listen and learn, the more we understand how much we can benefit from embracing Indigenous knowledge about the lands we live on," Chamber CEO Bruce Williams said. "We have acknowledged the role we played in the suppression of Indigenous culture and commerce. Now we need to keep taking action to support the inclusion of Indigenous people and First Nations in our broader business community." Bruce and Chamber member Jamin Zuroski recently spoke with CBC Radio's Gregor Craigie about what The Chamber is doing to support reconciliation. Check out our social media this week for stories about local events happening for the National Day of Truth and Reconciliation. This week's exciting list of Chamber Auction items features some of our great Indigenous businesses. The Chamber office will be closed Monday, Oct. 2 in recognition of National Truth and Reconciliation Day. The effect of high interest-rates is measurable, with Statistics Canada's latest Survey on Business Conditions showing many businesses are challenged by increasing costs and reduced customer spending.
The Canadian Chamber's Business Data Lab explores the stories behind the numbers, including an analysis by Chief Economist Stephen Tapp. "Continuing cost pressures explain why firms’ pricing behaviour still hasn’t normalized yet, even though headline inflation has slowed," Tapp said. "Thankfully, the labour market is loosening up, although there are still significant challenges in sectors such as health care, accommodation and food services, manufacturing and construction. Supply chains are also recovering from their peak difficulties of last year, but they too remain problematic for affected companies." Each year, more than 400 chambers across Canada prepare policies on issues of national importance for the Canadian Chamber AGM. At the conference, days of debate ensue on the best actions needed to support our businesses and the select policies that the advocacy team at the Canadian Chamber will champion on Parliament Hill with federal officials.
Here's a look at the proposed policy resolutions formally supported by the Greater Victoria Chamber of Commerce. All resolutions will be voted on at the Canadian Chamber AGM, Oct. 12-14 in Calgary.
"Many of the policy resolutions are worthy of support but we selected these because they align with initiatives that matter to our members and we were happy to lend our expertise and voice to get these advocacy action items moving ahead," Chamber CEO Bruce Williams said. |
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