Canada's Finance Minister and Deputy Prime Minister Chrystia Freeland made a surprise visit to Victoria on Monday for a meeting with BC Premier David Eby. With the federal budget coming on April 16, Freeland was in town to promote her government's investment in housing across Canada. "For me, it's actually pretty simple," Freeland said at a media event ahead of her meeting with Eby. "It's housing, housing, housing. Supply, supply, supply, affordability, a strong economic plan that delivers great jobs and a real focus on younger Canadians." Freeland stated $34 million in federal funding has helped create homes in Greater Victoria — something the Greater Victoria chamber continues to call for to help our region meet the demand at the root of housing affordability. Freeland highlighted Sawyer Block on Fort Street, which has 60 rental apartments, and a project in Cook Street Village that helped build 47 rental apartments. "Through the Apartment Construction Loan Program, we will also be offering low-cost loans to post-secondary institutions — like the University of Victoria ... so that they can build more student housing on- and off-campus," Freeland said in her presentation. "This will help more students to find housing they can afford close to where they study, and at the same time, it will mean that there are more homes available for those who live in those same communities year-round." Adding on-campus housing is another long-standing chamber advocacy priority, Chamber CEO Bruce Williams said. "This is a big win for our advocacy work. We know that one of the biggest challenges for building homes in Greater Victoria is our land constraints," Williams said. "Post-secondaries have the space. They need the right financing to make housing work and this is part of that solution."
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Chamber members have an opportunity for a seat at the table with BC's Premier as The Chamber hosts the Hon. David Eby on April 30 for a breakfast and discussion about business in BC.
"We know our members have many questions for the Premier during this electing year, and I'm grateful for this opportunity to get answers and learn more about the government's plans to help the private sector strengthen our economy," Chamber CEO Bruce Williams said. The MLA for Vancouver-Point Grey became leader of the BC NDP in October 2022 and BC Premier in November 2022. Before he was elected, Eby was the Executive Director of the BC Civil Liberties Association, an adjunct professor of law at the University of British Columbia, and president of the HIV/AIDS Legal Network. He also served on the Vancouver Foundation's Health and Social Development Committee. Chamber events are always popular so reserve your spot now to ensure you have a seat at the table. Leading to Election: Breakfast with Premier Eby
A special roundtable held today gave Chamber members doing business in the US a chance to talk trade directly with federal Minister of Export Promotion, International Trade and Economic Development Mary Ng.
During the face-to-face meeting, the Minister said that Canadian businesses are all part of a Team Canada approach needed to remind Americans that Canadians are key customers and important allies. “The US is our closest friend and biggest trading partner. No one knows that better than Greater Victoria businesses — the US is BC’s biggest customer, importing more than $30 million in goods and services annually," Minister Ng told The Chamber after the meeting. "Through our Team Canada engagement, we are working together at all levels to make sure Canada and our relationship with the US stays centered in the minds of Americans. That effort needs the help of our businesses, like the members of the Greater Victoria Chamber of Commerce, to help highlight the incredible strength of this partnership. At the heart of this work is advancing opportunities for Canadian workers, businesses, and communities across the country and right here in BC.” Among the many questions brought up during the discussion were challenges with the development of innovative mining equipment. Canadian firms face unfair competition from some overseas companies that don't have the same strict environmental and labour standards. Minister Ng noted that the Canada United States Mexico Agreement can give BC companies an edge because it includes prohibitions against trade that involves forced labour or bad environmental practices. The Minister also heard from Chamber members who wanted help making the connections needed to get products on US shelves, as well as others asking for a better coordinated national approach to procurement and distribution of goods and services. To share questions or comments with the Minister's team, email communications@victoriachamber.ca. Canadians will find out next month whether the federal government is paying attention to the growing calls from business to improve our country's productivity, competitiveness and standard of living.
Federal Finance Minister and Deputy Prime Minister Chrystia Freeland announced today that Budget 2024 will be presented in the House of Commons on April 16. The Canadian Chamber submitted a list of recommendations during budget deliberations that came from business leaders across the country. Many of these are echoed by members of the Greater Victoria Chamber of Commerce. "We need economic growth to be driven by the private sector, and some of the changes that can be done on a federal level are simple — and cost effective — changes to red tape," Chamber CEO Bruce Williams said. "We know innovation is driven by business and it's time for government to focus on policies that encourage investment in the infrastructure needed to build a sustainable and resilient economy." Among the recommendations are to:
Payroll tax change welcomed, though questions remain about province’s fiscal path: Budget 20242/28/2024 Businesses with payrolls of up to $1 million will now qualify for an exemption from the Employer Health Tax, B.C. Finance Minister Katrine Conroy announced last Thursday during the unveiling of the 2024 provincial budget.
“Increasing the EHT exemption is welcome news for business. The experience in other provinces has shown we can expect an increase in productivity as employers have more room to increase wages and promote staff,” said Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, noting The Chamber has been calling for the change since the new tax was introduced in Budget 2018. Minister Conroy joined Chamber members the day after budget day to answer questions and highlight initiatives such as a new tax to deter home buyers from quickly reselling their properties, and a promise to cover the cost of one cycle of invitro-fertilization. Asked about efforts to improve public safety, Conroy noted the province has increased investment in mental health and addiction treatment programs. Business leaders were also concerned about rising debt with the budget including a record deficit. The provincial government is raising the minimum wage by 65 cents, effective June 1.
The increase means the lowest an employee can be paid is $17.40 per hour, up from $16.75. The rate reflects annual inflation in the province. "We know many Chamber members already pay more than the minimum, but inflating the base rate inevitably increases the wages of other employees, which adds further costs during a time of economic uncertainty," Chamber CEO Bruce Williams said. "Businesses are already working hard to find and keep good workers, and we understand that increasing wages is part of that. And while we appreciate that the government is giving businesses time to adjust and offering future certainty by tying the increase to inflation, we think there are better ways government can lower the cost of living to make our province more affordable." The shift to working from home that was sparked by pandemic restrictions is continuing to impact the commercial real estate sector.
CBRE's Canada Real Estate Market Outlook 2024 reports that office vacancy, at 8.7%, remains elevated in Greater Victoria due to turbulent conditions. In an interview with the Times Colonist, CBRE Ltd. Victoria Vice-President Ross Marshall said landlords are trying to be as accommodating and innovative as possible to keep clients and find new ones. Downtown spaces also face challenges from perceptions about parking and social distress in some areas, Marshall said. Greater Victoria has 9.37 million square feet of offices, with rent for Class A spaces going for $27.25 per square foot. "The completion of strata developments in the Westshore will relieve some of the industrial shortage in Greater Victoria and is currently just over 65% pre-sold," the report states. "Inventory levels still remain heavily undersupplied outside the Westshore. Asking rates are projected to stabilize around mid-2024 after tenants fully occupy investor-purchased strata units and the availability rate normalizes." The future of BC Ferries is easier to visualize, now that concept drawings of proposed new vessels have been released. Up to seven of the new ships are expected to be ready for service in 2029.
On Monday, BC Ferries issued a Request for Supplier Qualification for its New Major Vessels program, with the aim of issuing a Request for Proposals this summer. The new vessels will carry up to 360 standard sized vehicles and 2,100 people, and will replace vessels currently operating between Vancouver Island and Metro Vancouver. Those ships have a capacity of 250-310 vehicles and 1,200-1,500 people. “These vessels — greener, more efficient and standardized — represent the future of ferry travel in our province," BC Ferries’ President and CEO Nicolas Jimenez said. "They will significantly increase daily capacity, provide an enhanced customer experience, improve reliability and reduce environmental impacts.” The basic design is being developed in collaboration with LMG Marin AS, and will have engines capable of using bio- and renewable fuels, as well as a battery-hybrid propulsion system that can be converted to full battery-electric operation once shore-based recharging infrastructure becomes available. Next week, Chamber members will be among the first to learn about the 2024 provincial budget and hear directly from BC's Finance Minister. The Speech from the Throne is set for Feb. 20, followed by Budget Day on Feb. 22 and the Finance Minister lunch with the Greater Victoria Chamber of Commerce on Feb. 23, sponsored by Coastal Community Credit Union. "As the oldest Chamber in Western Canada, we have a long tradition of connecting government with the private sector," Chamber CEO Bruce Williams said. "That includes the tradition of being the first chamber to host the finance minister after the provincial budget is unveiled. We're thrilled Minister Conroy will join us, once again, and I look forward to seeing many of our members at the Hotel Grand Pacific." There's reason for optimism in Greater Victoria's real estate sector, as a sense of stability is returning after what felt like truly turbulent times.
"Mortgage rates have levelled out, inventory is slowly creeping back up, and we are no longer in that highly pressurized market of recent years which created complicated and sometimes stressful conditions for buyers and sellers," Victoria Real Estate Board Chair Laurie Lidstone said in the organization's latest news release. "If balanced conditions continue, buyers and sellers will have more time to make decisions and there will be less pressure on pricing. Of course, there are many factors that impact the market here in Victoria, and, as we've seen in the past, things can change very rapidly." The real estate board had 2,140 active listings for sale at the end of January, a 23.1% increase from 12 months ago. The benchmark value for a single family home in January was about $1.24 million, down from December's value of $1.27 million. The benchmark value for a condominium in the Victoria Core in January was $559,000, down from the December value of $562,000. Understanding economic trends is invaluable to helping businesses plan for the future. The Chamber relies on a number of sources for information and analysis, including our national network.
On Tuesday, Canadian Chamber Chief Economist Stephen Tapp provided members of The Chamber's Public Policy and Advocacy Committee with his insights. "We're fortunate to have access to a deep pool of experts who help us make effective use of our advocacy efforts," Chamber CEO Bruce Williams said. "The Greater Victoria Chamber of Commerce has a long history as Western Canada's first chamber and we continue to play an active role with the Canadian Chamber." Tapp spoke about the state of the economy and expectations for interest rate cuts, using the latest numbers from the Business Data Lab. Click the image to view Tapp's presentation. For information on joining a Chamber committee, go to victoriachamber.ca/committees for contact info. Canada is a trading nation, and many businesses in Greater Victoria provide goods and services to an international customer base. Building connections across borders is vital to helping business operate as smoothly as possible.
On Monday, the Chamber welcomed Vancouver-based US Consulate General Jim DeHart to Victoria. "I've spoken with Mr. DeHart during trade missions in the past and he's always expressed an interest in learning more about Greater Victoria and Vancouver Island," Chamber CEO Bruce WIlliams said. "I'm glad we were able to host him for a roundtable with some of our region's business leaders for a discussion on trade and cross-border relations." Topics covered an array of interests, including labour force mobility, credential recognition and ongoing efforts to streamline regulations. Investing in celebrations of sports, arts, culture and farming helps build great communities. The economic return also benefits many tourism and hospitality businesses — a sector that is still recovering from the pandemic and the current slowdown in consumer spending.
The Chamber continues to be a vocal advocate for this sector, and we applaud this morning's news that the BC Fairs, Festivals and Events fund is being extended. “The BCFFE program single-handedly saved our business and that of many of our colleagues here in BC," 17 Black Events executive director Scott Gurney said. "The program has also ensured that businesses within BC’s live event ecosystem, like specialty service providers, suppliers and rental companies, have been able to survive, too. The impact of this program reaches far and wide with its economic outcomes, but more importantly, from a social point of view, it has ensured that British Columbians have continued access to arts, culture and live events.” Events between April 1, 2024, and Sept. 30, 2025, are eligible for funding to cover expenses ranging from operational costs, Indigenous consultation and honorariums, to venue rental, marketing, wages and promotion. Applications are being accepted until 11:59 pm, Feb. 25. Organizations are encouraged to submit their applications as soon as possible. “We are extremely grateful for the past two years of BCFFE funding," Rifflandia Entertainment Company president and CEO Nick Blasco said. "Suffice to say, the program has been essential to the growth and future of our festival and so many others throughout the province.” The Secondary Suites Incentive Program, introduced to all BC municipalities last fall, is being expanded to 16 regional districts, including the Capital Regional District.
“We’re using innovative solutions to make it easier for homeowners and communities to build homes faster, so people can live and work in the communities they love,” BC Minister of Housing Ravi Kahlon said in a news release. The three-year pilot SSIP will provide about 3,000 homeowners with forgivable loans for as much as $40,000 to create a new secondary suite or an accessory dwelling unit on their property. To qualify, the units must be rented below market rates for at least five years. In a separate news release, Kahlon also announced that the province issued a request for proposals that could lead to BC adopting an innovative housing solution used in places such as Seattle and New York City. A common practice in Europe, the solution involves allowing single staircases in residential buildings by updating an 80-year-old rule in BC's building code that currently requires two stairwells. The change would allow for larger apartments with more daylight, cross breezes and greenspaces. "The Chamber encourages all levels of government to embrace innovations that allow builders to provide the housing supply we need," Chamber CEO Bruce Williams said. "Looking at how other places in the world have solved the same issue we face makes sense." The Chamber is following up on concerns expressed by local post-secondaries facing a serious and unanticipated financial burden from the surprise federal announcement to cap the international student program.
Yesterday, the organization representing Canadian schools sent a joint letter to federal Immigration Minister Marc Miller. "We urge your department not to impose the letter of attestation requirement for college and undergraduate study permit applications until at least March 31 or until the provinces establish an effective process," the letter from Universities Canada and Colleges and Institutes Canada stated. "Additionally, we request urgent consultations with the sector to modify the cap policy, clarify the many outstanding questions and mitigate the negative impacts." On Monday, BC announced new regulations that will constrict the number of international students in the province. Of BC's 545,000 post-secondary students, 175,000 are from 150 countries other than Canada. "After speaking with our members impacted by these changes, The Chamber is concerned that this policy is being presented as a solution to the housing crisis when it will significantly reduce revenue needed by schools," Chamber CEO Bruce Williams said. "A better solution is to invest in more on-campus housing so that schools continue to provide the workforce our economy needs, while creating a pathway for foreign students to become taxpaying new Canadians." British Columbia's population is expected to reach 7.9 million by 2046, with Greater Victoria accounting for 655,000 people. Overall, the province is getting older than the rest of Canada, with a lower fertility rate, according to a BC Stats report released yesterday.
BC's current population is 5.58 million, with about 450,000 living in the Capital Regional District. The province's annual growth rate of 3.3% is the highest since 1972. The growth is from historic levels of international immigration as 66,190 people from outside Canada settled in BC. However, the province also experienced a net loss in people migrating within Canada as 4,634 more people left for other provinces than moved here. A new report offers insight into how shifting consumer behaviours are changing the way small businesses operate post pandemic.
On Monday, the Canadian Chamber of Commerce’s Business Data Lab released A Portrait of Small Business in Canada: Adaption, Agility, All At Once. The findings shed light on how businesses can thrive despite the rising cost of doing business, the highest borrowing costs in over two decades and the increased pandemic debt loads. Examples for businesses include investing in technology, staying agile to embrace shifting trends and working with their chamber to call for less red tape from government. The report also explores the unique realities, challenges and opportunities for small businesses owned by women, persons with disabilities, members of the LGBTQ2s+ community, immigrants to Canada, Indigenous peoples and visible minorities. There can be no doubt about it, Greater Victoria loves hockey. That was on full display last week as the many communities that have a connection to the sport came together for a celebration of Canada’s game.
Scotiabank Hockey Day in Canada was a major success, raising community spirits and bringing activity to businesses downtown and across the region. The mid-January festival took place over four days last week, with the official "hockey day" bringing 20,000 people to Ship Point in the Inner Harbour on Saturday. "We heard reports that it was like a summer day for tourism," Chamber CEO Bruce Williams said, noting that $100,000 was raised for the Courtnall Society for Mental Health. The impact on tourism is still being assessed, as more than nine million Canadians saw images and stories of Greater Victoria during a full-day of NHL broadcasts on Sportsnet. “Civic pride was the big thing here,” Williams told the Times Colonist. “We were successful because people came together and really celebrated the game we love so much.” The Chamber was among many organizations that stepped up to sponsor the event. The Consumer Price Index rose 3.4% on a year-over-year basis in December, following a 3.1% increase in November. The increase adds a little more uncertainty to what the Bank of Canada will do at its next interest rate announcement on Jan. 25.
Some of the reasons for the acceleration in inflation include higher costs for airfares, fuel oil, passenger vehicles and rent. Prices for food rose 4.7% year over year in December. After months of planning and preparation, Scotiabank Hockey Day in Canada kicked off with an incredible night of storytelling. The Legends of Broadcasting event, held Tuesday night at the Bayview Presentation Centre, saw an awestruck crowd watch Ron MacLean host a panel discussion with Jim Robson, Bernie Pascall, Jim Laing and Tim Ryan.
Stories about chopping trees with Muhammad Ali, the eternal debate between Gretzky vs. Orr and being the voice behind some of the most iconic broadcasts in Canadian sports history brought cheers and laughter. Unfortunately, snowy weather caused Wednesday morning's activities with school kids to be cancelled. However, the Skate with the Stanley Cup and the Player Draft for Friday's Alumni and Celebrity Classic were still able to go ahead. Go to victoriahockeyday.ca for the latest on events and activities happening this week. Greater Victoria's unemployment rate of 4.1% in December was unchanged from November 2023. According to Statistics Canada, the region's population increased to 367,400 from 366,700 over the month.
Our local labour force was also up with 244,700 people in December compared to 242,900 in November. The stats reflect the national trend as employment growth slowed in the second half of 2023 with population growth outpacing the number of new jobs added to the economy. "The momentum in the labour market is weakening alongside the fastest population growth in more than 50 years," Canadian Chamber Senior Economist Andrew DiCapua stated in a news release. "With essentially flat job growth in December, the Canadian labour market ends 2023 with over 5% wage growth and an unemployment rate steady at 5.8%. Although hours worked rose for the month, this will be a drag on fourth quarter GDP as we round out the year. This signals to the Bank of Canada that the guise of a strong labour market is cracking amid strong labour force gains. With wages accelerating, the Bank was wise to not celebrate at their last meeting, possibly delaying their intentions to begin rate cuts." Property owners, check your mail. You can expect to receive your 2024 assessment notice any day now. The assessments reflect market value as of July 1, 2023, and can also be viewed at bcassessment.ca.
“For 2024, most homeowners can expect generally flat values including a mix of small decreases or only modest increases, reflecting the softening real estate market," Vancouver Island Deputy Assessor Matthew Butterfield stated in a news release. "Homeowners throughout Vancouver Island will generally see somewhere in the range of -5% to +5% change in assessment values." Total assessments for Vancouver Island properties were more than $386 billion this year, up about $1 billion from 2023. Assessments are not directly connected to any change in your property taxes, as those are set according to the needs of the municipality your property is in. However, if your property's value changed relative to other properties, you might see a change in your tax bill. In Greater Victoria, every municipality experienced a drop in the assessed value of a "typical home," including the examples below: Never bet against the ingenuity of small business, especially when entrepreneurs and employers work together.
The Chamber was among 240 organizations that sounded the alarm last year about the looming Jan. 19 deadline for the Canada Emergency Business Account. The federal government has committed to reviewing, on a case by case basis, the circumstances of businesses still struggling to pay back their loan. However, the Canadian Chamber of Commerce reports that more than three-quarters of businesses that accessed the loan were able to repay in time. Additionally, a company specializing in small business financing recently announced it has secured $300 million to help businesses that need to refinance their CEBA loans. BC-based Merchant Growth is working with financial advisor Raymond James to help businesses that need to refinance their CEBA loans. "Help is available for businesses who continue to be impacted by the effects of the pandemic and the rise in inflation and interest rates," Chamber CEO Bruce Williams said. "If you're ever facing a situation where you are not sure what to do, please know that The Chamber is here for you and we will do everything in our power to help." The New Year marked the start of new rules for Canada's Pension Plan. The change introduces a second earnings ceiling for middle-income earners making more than $73,200.
For employers, this means changes to the amount they need to withhold for eligible employees. And for the self-employed, the changes impact CPP contributions based on net income. The federal government says the enhancement will increase the maximum CPP retirement pension by about 50% for people who have recently entered the workforce. In 2023, generative artificial intelligence was suddenly everywhere. It's showing up in business software applications, Internet search functions and standalone apps that enable even non-technical users to overcome writing, coding and design challenges.
To help businesses benefit by adopting AI responsibly, the Canadian Chamber of Commerce held an AI Executive Summit on Nov. 22. Among the key themes that emerged were:
The themes will guide the work of the recently formed Future of AI Council, a 30-member forum representing a cross-section of organizations. The council "will play a leading role in advocating for government policies that establish AI as a positive economic force through the responsible development, deployment and ethical use of AI in business." |
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