The province received some welcome news about its financial state of affairs when Moody's reaffirmed BC's AAA credit rating on May 17. Moody's is the last credit agency to release its results. In April, Fitch Ratings maintained its AA+ rating for the province, while S&P Global Ratings downgraded BC from AA+ to AA. On May 1, DBRS Morningstar kept BC at AA(high).
Moody’s noted British Columbia’s attractiveness to businesses and individuals, as well as migration into the province. Good credit ratings are vital for the province to get competitive rates on borrowing for infrastructure projects and service demands. BC has the highest credit rating among Canadian provinces across the four agencies. Tables are selling fast for the upcoming chance to attend in-person the Bank of Canada's Economic Progress Report in Victoria.
The Greater Victoria Chamber of Commerce has secured the Victoria Convention Centre to ensure we have a large enough facility to meet anticipated demand for our June 8 event. The last time the Bank spoke live in Victoria, a sold-out Crystal Garden was filled with business and community leaders who had high praise for the experience. "Our event is the day after what could be a crucial rate announcement, and we know many will want to better understand how the Bank makes its decisions," Chamber CEO Bruce Williams said. "It's not easy to secure an event of this importance. Business people across the country will have their eyes on Victoria, and it's pretty cool that we get to experience it in-person." The Economic Progress Report will be broadcast live on. A press conference for national media will take place after the speech and Q&A session with Deputy Governor Paul Beaudry. Big decision looms for Bank of Canada With the next announcement on interest rates set for June 7, there are mixed opinions on what the bank will do. Some analysts are calling for another rate hike to help mitigate the risk of high inflation, while other market strategists say they don't forecast an increase next month. On May 18, the Bank of Canada's Financial System Review found three areas of concern in the economy. The next scheduled event, after the interest rate announcement June 7, is the Economic Progress Report speech in Victoria on June 8. Making downtown Victoria cleaner and safer benefits our entire region. Last week, the City of Victoria announced the Our Dwtn revitalization program to attract people back to downtown. The city has allocated $1 million for the plan, which includes a Feet on the Street program utilizing VicPD foot patrols and city bylaw officers to provide a more visible presence. The intent is to help people feel safer. The program also includes a mix of cultural and retail programs to enhance the experience of being downtown. In June, the city and the Downtown Victoria Business Association are hosting a Scrub-Up event to refresh the area ahead of the busy summer season. Chamber op-ed calls for regional approach to Greater Victoria's collective downtown By the Greater Victoria Chamber of Commerce in collaboration with the BC Restaurant and Foodservices Association, Downtown Victoria Business Association, and the Urban Development Institute – Capital Region. There has been a lot of talk lately about downtown Victoria. Some of the talk is positive. Greater Victoria often ranks highly in lists of desirable places to live, work and visit. Our region has a sterling reputation — especially to people who aren’t from here. But it would seem many of us believe our own bad publicity. Have we taken on an inferiority complex? Crime and violence are real but not rampant as some would have us believe. And at the root of these issues are housing and mental illness. This year, the Buy BC Partnership Program is providing $2 million for marketing activities that increase consumer awareness and drive sales of local food and beverage products.
The program, managed and administered by MNP LLP on behalf of BC's Ministry of Agriculture and Food, has helped generate an estimated $80 million in sales since 2017. More than 800 businesses are registered to use the Buy BC logo on almost 4,000 food and beverage products. A new approach to help more businesses with exporting and investing internationally was announced by the province last week.
The Trade Diversification Strategy targets three new markets for increased exports and investment, as well as expansion in existing markets. The aim is to help BC businesses "grow on the world stage while creating jobs and protecting British Columbians from supply-chain disruptions and global uncertainties." The new target markets are Mexico, Vietnam and Taiwan. The province will add Trade and Investment Representative offices in Taiwan and Mexico. Offices have also been opened in Vietnam. The Trade Diversification Strategy will provide funding to successful programs, including $1.2 million annually for Export Navigator and $913,000 to deliver new cohorts of the Trade Accelerator Program (TAP), which supports BC businesses and entrepreneurs to be export ready. The Royal BC Museum is bringing back Old Town. The much-loved exhibit will re-open July 29, after it closed to visitors in January 2022.
The museum is going through a modernization process that will eventually see a new building that is seismically safer and better suited for 21 century audiences. The current building opened in 1968. "The museum is part of the fabric of Greater Victoria and many people feel strongly about what they want to see happen," Chamber CEO Bruce Williams said after the museum hosted The Chamber's 160th Celebration. "I'm fully confident in the work that museum staff are doing to modernize their facility, and The Chamber is excited about helping to ensure the museum continues to serve its important role in our region for generations to come." Many features of Old Town remain untouched. Among the additions is a new loop playing in the old-time movie theatre showing the diversity of voices who contributed to the province's history. The provincial government announced today it is providing $2.5 million to Vancouver Island Life Sciences to create a 650-square-metre facility to help up to six companies with access to low-cost, specialized lab space. The lab will be in Greater Victoria, but the specific location is still in the works.
Vancouver Island Life Sciences is a volunteer, non-profit society in Victoria that connects Island researchers with the global life science community. Phase 1 of a project that shows how innovation led by business can help with some of our community's most complex challenges has officially opened.
The Dalmation, located at 1021 Johnson St., was built by Jawl Residential Ltd. (Dalmation Developments), and features 130 rental units, office space and a new firehall for the Victoria Fire Department within an eight-storey building. The homes will rent for between $375 and $2,900 per month based on unit size and resident income. The next phases of the project will include more than 480 market-rate rental homes and a diverse mix of commercial, retail and restaurant space, as well as dedicated public spaces, including a 250-square-metre public plaza. “We are very proud of the work that went into developing and constructing The Dalmatian and Victoria Fire Department Headquarters," Director of Development for Dalmatian Developments David Jawl said in a news release. "The completion of this project is a wonderful example of how partnerships between the private and public sector can succeed to deliver much-needed housing and safety infrastructure in our communities.” The project is a partnership between BC Housing, the City of Victoria, Pacifica Housing and Dalmatian Developments. It is the largest purpose-built affordable rental project of its kind in downtown Victoria. As Greater Victoria municipalities reveal their 2023 budgets, many businesses are finding out if they'll face higher taxes this year.
Victoria, for example, has seen operating costs surge due to inflation and new spending. City council tried to scale back but businesses and residents are still facing hundreds of dollars in new costs. The typical business property assessed at $714,000 will pay an extra $445 despite getting few of the services or benefits provided to residents. It's much worse for industrial lands, which face a 37% increase that could add hundreds of thousands to major operations. "It's clear that we have work to do to help many of the new councillors in our region understand why reducing business taxes is an investment in community," Chamber CEO Bruce Williams said, noting that businesses need cost certainty and many were hit with rising inflation as they were beginning to return to normal after the pandemic. "These businesses provide goods and services as well as jobs for their owners and employees. Jobs that are at risk of going away if the business is unaffordable," Williams said. "And in the case of industry, these new taxes effectively replace good jobs with money for the city to spend. That's wrong. We need to invest in our marine industries, especially, to preserve the value they add to our region." If you enjoy understanding the policies behind decisions that impact our daily lives, you'll want to read the Bank of Canada's latest report released today. The Summary of Governing Council deliberations offers a glimpse behind the scenes of why the Bank chose to pause interest rate hikes on April 12.
The council expressed concern about public perceptions fueling higher inflation and, after discussion, chose to signal that though the rate is unchanged it could go up if needed. It's a fascinating read that offers great insight into why the cost of borrowing will remain high until inflation can be tamed. Good data used in the right way is critical to making sound business decisions. It's an advantage that many large organizations have had, though the cost of accessing the info has been a challenge for smaller businesses. Until now.
The Chamber is pleased to announce a new tool recently released by the Canadian Chamber of Commerce Business Data Lab. The Business Conditions Terminal was developed in collaboration with Statistics Canada, and is available to the public at no cost. More than 2,200 indicators from 30 different data providers are accessible through the terminal to deliver granular, real-time insights to businesses. “We’re helping Canadian companies unlock the power of better business data,” Canadian Chamber Chief Economist Stephen Tapp said. “Most small business owners are too busy running their businesses. They don’t have time to moonlight as forecasters or data scientists. They’re looking for easy to use, easy to understand data tools that quickly give them customized, actionable results for their local region and industry.” Stay on top of shifting economic conditions and better understand new trends as they emerge by utilizing the Business Conditions Terminal. The Chamber's 160th annual general meeting took place April 18 at the Inn at Laurel Point.
After making sure operations and financials were in order, members in attendance were treated to a frank discussion with BC's Housing Minister Ravi Kahlon. Chamber CEO Bruce Williams emceed the session and asked about the provincial government's plan to increase housing supply. The minister noted that legislation had been introduced that morning that will help projects avoid time-consuming delays. Among other topics was a discussion about the need to remove barriers for skilled workers coming here from other countries and provinces. Delays in the recognition of credentials has been an ongoing concern for newcomers wanting to work in their chosen professions. Minister Kahlon encouraged The Chamber to continue advocating for change, noting the message is being heard. He pointed to efforts to increase BC's health care workforce that are beginning to pay off. Also discussed were increasing student housing to free up rental properties for workers, strategies to house the homeless and using public land to build non-market housing following models that have proven successful elsewhere. "The Chamber is grateful to Minister Kahlon for sharing his time with our members to talk about the many challenges facing housing in Greater Victoria and the province," Chamber CEO Bruce Williams said. "This year's annual general meeting was the 160th time we've reported to our members and we are working to make sure the next 12 months are successful for our organization, for all our member businesses and for everyone in our community." It was a warm welcome on a cold morning as the first cruise ship of 2023 in Canadian waters pulled into Ogden Point yesterday.
“It’s great to have the cruise ships back because of the economic boom that it brings to the city,” Chamber CEO Bruce Williams told Black Press. “People disperse around the region — they stay downtown, they go to Butchart Gardens, they go to other attractions around (Greater Victoria) and they bring that whole energy that we need to get us back into the swing of things.” The Greater Victoria Harbour Authority expects 850,000 passengers will visit Greater Victoria aboard 330 ships between now and October. The 209-foot Sapphire Princess can carry 2,600 passengers. The industry injects about $130 million into our regional economy, helping many businesses beyond those that cater directly to passengers. The next ship arrives April 21. And regardless of the temperature, it's a clear sign that business is heating up for our hospitality and tourism sectors. Last week, the province announced it was contributing $9 million for the GHVA's efforts to bring shore power to their facilities. That will allow ships to use electricity rather than generators, cutting down on emissions and noise in the neighbourhood. In a big win for business, sustainability and Chamber advocacy, the provincial government announced today it was moving forward to bring shore power to Ogden Point.
Minister of Transportation and Infrastructure Rob Fleming, MLA for Victoria-Swan Lake, announced $9 million for the Greater Victoria Harbour Authority. The money will be used for planning and installation of infrastructure that will let cruise ships turn off their engines while docked by enabling access to electricity from BC Hydro. GVHA expects 320 cruise ships this season, carrying 850,000 passengers. “Innovation led by business is key to addressing the biggest challenges facing our community and our planet,” Greater Victoria Chamber of Commerce CEO Bruce Williams said. “Adding shore power to Ogden Point benefits people living nearby. It also shows how the cruise ship industry is adapting to public demand and embracing new ways of doing business. The Chamber has a long history of working closely with all levels of government and the cruise industry. We are grateful for the work of Minister Fleming to help champion this important project for our region.” GVHA has been working on plans for shore power with the Songhees and Esquimalt Nations, BC Hydro, the cruise industry and the City of Victoria. “Today’s funding announcement by the Province of British Columbia is key to launching the next phase of this important initiative,” GVHA CEO Robert Lewis-Manning said. “Shore power is one of several initiatives supporting a sustainable working port cherished by the Lekwungen people, residents and visitors alike." The minimum wage in BC is going up to $16.75 an hour starting June 1. The increase is expected to affect 150,000 employees in the province. The current minimum wage is $15.65 an hour.
The new rate was brought in to reflect the high rate of inflation in 2022. After the change, BC will have the second highest minimum wage in Canada after the Yukon, where it is $16.77 an hour. "The Chamber is concerned about how businesses will be affected by this decision, which was made without adequate consultation," Chamber CEO Bruce Williams said. "Most of our members pay their employees higher than minimum wage but this increase has the potential to create a domino effect that will add unexpected costs for all businesses as well as for consumers who ultimately pay the price." On Monday, the Bank of Canada released its Canadian Survey of Consumer Expectations as well as its Business Outlook Survey. Both are for the first quarter of 2023.
The surveys show that many Canadians are concerned about how high levels of government spending will impact inflation. Consumers are optimistic that costs will come down eventually but are reducing their discretionary spending for the time being. The survey found that low unemployment was giving confidence to workers, though there was some concern about the quality of jobs related to the quantity available. Businesses are planning for sales to grow at a slower pace than the exceptional growth many experienced in the past year. As supply chains continue to normalize, businesses said they expect the prices of their services and products to stabilize. The Chamber is thrilled to welcome the Bank of Canada's Deputy Governor to Victoria on June 8 to deliver the bank's next Economic Progress Report. See below for more information. The end of Flower Count is a good sign that patio season is right around the corner. Last week, the hard work of business and industry associations was rewarded when the provincial government announced it was giving businesses more time to make outdoor seating permanent. The deadline has been extended to Dec. 31, 2024.
During the early days of the pandemic, many restaurants, pubs, bars and breweries found innovative solutions to create safe spaces for customers. These outdoor areas were well received by the public and helped economic activity thrive. To support the efforts of business, the province provided temporary expanded service area (TESA) authorizations to thousands of liquor-licensed businesses. “Many licensees have not applied to make their TESA permanent due to the stress and pressure as a result of the effects of the pandemic and the unprecedented labour shortage," BC Restaurant and Foodservices Association president and CEO Ian Tostenson said. "We would like to thank government for being conscious of this and providing the much-needed extension.” Meanwhile, the CIty of Victoria will have to decide tomorrow, March 16, how it will proceed with its new Patio Regulation Bylaw. The bylaw updates the emergency measures implemented during the pandemic to provide more municipal oversight. City staff have been engaging with businesses and neighbourhood groups to develop its rules before the provincial TESA program was originally supposed to end. Now that an extension has been granted, the City should have more time to ensure its changes are workable for businesses. The Provincial Budget for 2023 was only recently announced but consultation for the 2024 is already underway. The Chamber has asked to meet in-person with the Select Standing Committee on Finance and Government Services, as we do every year.
Public hearings are anticipated to take place in late May and June. Chamber members with questions or comments on next year's budget are encouraged to share with our team at communications@victoriachamber.ca. Seeing tiny buds turn to bright blossoms is a sure sign of spring. Another, at least in Greater Victoria, is the growing buzz around the region's real estate. Sales in February were up 65.5% from the month before — though still down from February 2022.
"The market is seeing some positive growth as we move into springtime, which is traditionally the busiest market for home sales," Victoria Real Estate Board Chair Graden Sol said in a media release. "Inventory levels are starting to increase, a welcome trend when compared to the record lows of last year. We're also seeing a stabilization at some price points and properties that are priced in accordance with current market conditions are selling at a good pace." There were 1,809 active MLS listings for sale in Greater Victoria at the end of February. That's up from 849 for the same period in 2022. The benchmark value of a single family home was $1.25 million in February, down from $1.32 million in February 2022. Benchmark value for a condo dropped from $580,900 to $568,200. As expected, the Bank of Canada held off on changing its target interest rate. The move signals that efforts to curb inflation are working. The forecast is for inflation to keep falling and reach 3% by summer. Statistics Canada will provided its next update on the Consumer Price Index on March 21.
Yesterday, the 2023 budget was released with a focus on addressing many of the symptoms of unaffordability affecting British Columbians. However, there was a lack of new investment aimed at improving the province’s business climate.
The Chamber is traditionally the first business association to host the finance minister after the unveiling of the province's annual budget and BC Finance Minister Katrine Conroy addressed more than 100 business and community leaders today at the Hotel Grand Pacific. Among the highlights of BC Budget 2023 are $1 billion in new money for mental health and addiction services, new funding to improve food security and the $480 million Future Ready Plan, which will help employees gain the skills needed by employers. The province is forecasting deficits for the next three years but has chosen to increase spending this year. Minister Conroy said global inflation and the lingering effects of the pandemic are contributing to systemic challenges that make life less affordable for British Columbians. In the next 30 days, the $3.6 billion surplus left over from last year needs to be spent and will be used for a number of projects currently in the works. Details of that spending will be made available in the coming weeks. “The Chamber has heard from our members that they need help finding and keeping workers, and they want more done to ensure safe communities for all,” Chamber CEO Bruce Williams said, noting there are also annual increases to the Carbon Tax, which will add to the cost of doing business. “This budget will help by addressing symptoms of unaffordability through the renter’s tax credit, school food programs and a significant increase to healthcare funding. It’s a start but we would have liked to see BC Budget 2023 give a higher profile to the role business plays in improving the quality of life for all British Columbians. Businesses are the ones who make the investments needed to build resilience and create real solutions to affordability.” A $204.8-million contract has been awarded for a major project that will see the Royal BC Museum build an important new facility in the City of Colwood.
Construction is expected to begin this summer on the museum's Collections and Research Building as part of a long-term plan to protect the Province’s collections, including more than seven million artifacts and the BC Archives. Total capital project costs for the building are valued at more than $270 million. The project is being undertaken in consultation with the Songhees Nation and Esquimalt Nation. The state-of-the-art facility will be 163,611 square feet and use mass timber construction to safely house the Province’s collections, BC Archives and research departments. There will also be dedicated research labs and learning spaces. “Alongside the safe and modern storage of the collections and provincial records, the (Collections and Research Building) will be a dynamic and welcoming community space,” RBCM CEO said Alicia Dubois said. “We hope to inspire future paleontologists, entomologists, botanists and historians through greater learning opportunities by enhancing public access to our work.” The new building will provide a secure location for a number of items that had been at risk, such as: archival books and manuscripts; rare and priceless artworks, including watercolours from the 1700s; several paintings by Emily Carr; and early provincial maps. The Chamber takes its role as the voice of business seriously. When our members ask us to speak up on their behalf, we listen.
The power of that unified voice was on display last week as Chamber CEO Bruce Williams collaborated with the Downtown Victoria Business Association, Destination Greater Victoria, the Hotel Association of Greater Victoria and the BC Restaurant and Foodservices Association to call on the province to keep government jobs in Greater Victoria. A letter sent to the Deputy Minister to the Premier, Shannon Salter, expressed the concerns of Greater Victoria's business community about a directive taking effect April 1. The BC Public Service, like almost every employer, is struggling to find and keep staff. A proposal to hire workers who would report to offices in other BC communities and connect with co-workers virtually was being touted as a modern solution. The Chamber celebrates change — specifically those "pivot pilots" who quickly found new ways of serving customers and showed the way forward during the pandemic. However, we also can't stand by and watch good jobs be removed from regional economy — particularly our regional downtown that drives a significant share of that economy. Public sector workers are protected from recessionary pressures that face most private sector workers. Having that as a foundation is one of the keys to allowing a relatively small city like Victoria develop an internationally envied tourist economy and high tech sector. "The Deputy Minister wrote back to us four days later to reassure Chamber members that government has heard our concerns," Williams said. "All we want is government to consider the impact of any directive on business before the harm is done." It's Budget Season for all levels of government. After the province reveals BC Budget 2023 on Feb. 28, the federal government will announce its own budget at some point in the following weeks. Municipalities in BC don't have the same flexibility, with legislation requiring financial plans be adopted by March 31 and tax rate bylaws before May 15.
The Chamber is working to remind Greater Victoria municipalities that they need to support their community's businesses through fair taxation. We encourage Chamber members to get involved with their local government through however they can. In the City of Victoria, for example, Council is asking The Chamber for member feedback on a 6.96% increase to residential property taxes that's largely the result of inflation. While that's down from the almost 9% increase initially proposed in January, there might be more opportunities to find efficiencies. Businesses that pay property taxes in Victoria are urged to voice their formal feedback by:
If you have questions or concerns about municipalities outside Victoria, please let us know by emailing communications@victoriachamber.ca. And watch for more coverage on The Chamber's budget advocacy on social media and in upcoming editions of BizNews. The planned RapidBus route between the West Shore and downtown Victoria will be a game changer for commuters when it launches April 10.
The service will run every 15 minutes, making the ride more convenient. That's key for convincing people to leave their cars at home. Buses will run between 7am and 10pm Monday to Saturday and 8am to 10pm on Sundays. There will be additional buses during peak times on weekdays to improve customer experience, BC Transit said. "Smart regional transportation is important for businesses that depend on staff being able to get to the workplace," Chamber CEO Bruce Williams said. "Taking the bus instead of a car is much better environmentally, especially with BC Transit's commitment to reduce greenhouse gas emissions in its fleet." |
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