Making it easier to get around Greater Victoria, and addressing climate change were among the many topics addressed yesterday by BC's Minister of Transportation and Infrastructure Rob Fleming.
The Minister spoke to Chamber members as part of our ongoing Business Restart Series, which continues March 30 with Agricultural Minister Lana Popham (details below). Fleming spoke about continuing efforts to make getting to work convenient for commuters who live in more affordable areas of the region. For example, he said the McKenzie Interchange, which is "substantially complete," has cut commute times to the West Shore in half. As well, an additional widening of the highway will make the route ready for Light Rapid Transit. Another concept that is still being looked at is a ferry from Colwood to Victoria. The Minister also addressed The Chamber's calls for better transportation governance in the region. Fleming said the solution requires something other than the system of weighted votes used by the Capital Regional District. Greater Victoria needs a body that looks at the region as whole, and not as a collection of 13 municipalities. The Minister also responded to a Chamber member question by encouraging businesses to lend their voice to a proposed "flyover" overpass from the Pat Bay Highway northbound to Keating Cross Road westbound, eliminating the left turn across highway traffic onto Keating Cross Road. If you missed yesterday's event but would like to hear more about what the Minister had to say, the video is available for purchase. Ferry service between Greater Victoria and destinations in Washington State are hoping for a return to service as soon as it's safe to travel. The Canadian government has extended the closure of the US border until March 21.
Black Ball Ferry Lines, which operates the Coho ferry, and Clipper Navigation suspended operations when the border was closed almost a year ago. Both companies say they will be ready to resume sailing as soon as they're permitted to do so. “I think there’s lot of pent up demand, but we really don’t know the circumstances of what an opening will be," Black Ball's president Ryan Burles told the Times Colonist. “We know it has to be safe to travel, and not just kind of safe. I know that about 90% of B.C. people don’t want the border to be open until it’s safe.” Government relief funding has helped BC Ferries survive what would have been a devastating drop in revenue last year. The ferry corporation released its Financial Statements last week for the third quarter of 2020. The highlight was $308 million from the provincial and federal governments' Safe Restart Fund.
The Chamber had called on the federal government to help BC Ferries deal with the loss of revenue as fewer passengers, vehicles and buses were travelling to Vancouver Island due to the pandemic. The federal government announced in July that it was working with provinces to provide emergency funding. The relief funding helped BC Ferries avoid a net loss that could have affected the long-term sustainability of the service. The hard-hit hospitality sector received some good news this week as the provincial government announced it was making wholesale liquor pricing permanent.
Last March, the province agreed to allow restaurants, pubs and tourism operators to purchase alcohol products for the same cost paid by public and private retail liquor stores. The change was originally set to expire next month. A strong public sector and consistently low cases of COVID-19 helped Vancouver Island place six communities in the Top 10 Most Resilient Cities in BC, according to BC Business Magazine. The City of Langford ranks No. 1 overall for its continued growth during the pandemic, with high volumes of residential home sales, housing starts and one of the youngest populations in the province. The move to employees working from home was another factor in Langford's favour, giving communities outside urban cores more points than in previous polls. Cities that rely heavily on tourism were typically farther down the list this year. Starting Feb. 15, more financial institutions are able to accept applications for the federal governments Highly Affected Sectors loan program. The funding provides low-interest loans between $25,000 to $1 million to cover operational cash flow needs. The money is guaranteed by the government through the BDC, and is intended to help tourism and hospitality businesses — sectors hit the hardest by the pandemic.
A program offering $5,000 grants has reopened applications to help Canadian businesses cover the costs of personal protective equipment, office space adjustments or e-commerce development.
The Canada United Small Business Relief Fund was initially announced in October, but money is still available. The program is administered by the Ontario Chamber of Commerce though businesses from any province can apply. Businesses that have already applied for the funds can email cusbrf@occ.ca to determine the status of their application. Recognizing the challenges of continuing to offer opportunities for post-secondary education during a pandemic, the provincial government will allow schools to run deficits for the next two years. Post-secondary institutions are required to get government approval before incurring an annual deficit. A temporary change to the rule allows the schools to use available surplus to maintain operations. The University of Victoria and Camosun College are among schools pre-approved for deficits.
Having a trained workforce will be key to economic recovery, and The Chamber supports this initiative to help post-secondary schools continue with their missions. The suspension of cruise ships in Canada until March 2022 is devastating news for the many businesses in Greater Victoria that served the industry. The move is necessary to protect public health, and the Greater Victoria Harbour Authority released a statement that is committed to being ready to welcome passengers and crews back to our region once it's safe to do so.
Chamber CEO Bruce Williams spoke with Global News after the announcement to voice concern for vulnerable businesses. Greater Victoria's unemployment rate was 5% in January, down from 5.8% in December. The region's unemployment rate was 11% last July. The number of people in the labour force was 217,000 in January. That's down from 221,000 in January 2020.
"Our region typically has one of the lowest unemployment rates in Canada, so it's good to see us getting closer to where we were before the pandemic," Chamber CEO Bruce Williams says. "On the other hand, there are people who have left the workforce who will be needed as our economy recovers. Employment flexibility and accessible childcare remain key to bringing them back." With the Victoria Film Festival in full swing, there's some good news from the film industry. MovieMaker magazine has named Greater Victoria the fifth-best small city to live and work as a movie maker in 2021. The magazine praises our region for its locations, which can "double for everything from Central Park to English castles to the French Quarter to Napa Valley."
The Chamber continues to work with the Vancouver Island South Film and Media Commission as well as Malahat Film Studios, Camosun College, the District of Saanich and all of our partners working on bringing production facilities to Greater Victoria. When the world changes, we all need to change with it. One of the best ways to ensure BC has a workforce with the skills needed to fill new jobs being created is through training.
On Monday, the provincial government announced $4 million for micro-credentials programs to provide the education and skills required for high-demand occupations. BC's Ministry of Advanced Education and Skills Training worked with post-secondary institutions — including the University of Victoria, Camosun College and Royal Roads University — to develop 24 micro-credential programs. Half of the funding for the program comes from the federal government, with the province covering the other half. Course are designed for working people with families, and take weeks rather than months to complete. There was good news for Greater Victoria's office market as the vacancy rate remains lower than expected. As with most things these days, there is still plenty of uncertainty about what will happen when government programs that have buffered the market are removed. According to Colliers International's latest Victoria Office Market Report, the overall vacancy rate was 6.2% in the fourth quarter of 2020. That's up from 5.9% the previous quarter. The report credits the relatively stable numbers to the public sector and tech businesses, which account for a large portion of office inventory in Greater Victoria. Businesses that have lost revenue because of the pandemic are depending on a successful immunization rollout so the economy can begin a full recovery and allow government to end subsidies. The report forecasts that demand for quality office space in good locations will continue to be strong after the pandemic. The Chamber continues to advocate for focused relief to ensure all businesses have an opportunity to get through the pandemic. On Monday, Chamber CEO Bruce Williams was on a province-wide broadcast on CBC Radio speaking about what government needs to do to help specific sectors.
As well, on our national Chamber network, Canadian Chamber CEO Perrin Beatty interviewed Arlene Dickinson, a noted investor and former cast member on Dragons' Den, about the opportunities awaiting businesses that pull together on a local level and embrace innovation. Beatty was also a recent guest of The Chamber's Business Restart Series, discussing what's in store for Canada-US relations under the Biden administration. There have been plenty of changes during the pandemic as businesses were forced to find new ways of serving their customers. In the City of Victoria, a temporary program allowed for new uses of public spaces to help businesses. Now the city wants to know what's working, and what should be continued into the spring and summer.
A survey is live asking for feedback on Build Back Victoria, which allowed for new commercial activities such as temporary patios, business in parks and street closures. The opioid crisis has been exacerbated by the pandemic, with overdose deaths creating a worsening crisis in our community. A federal/provincial pilot project announced yesterday will help by providing alternatives to the dangerous street drugs at the root of suffering. In Victoria, $4 million has been allotted for a medically validated supply for people with addictions.
"This medication option will provide a life-saving alternative to the contaminated drug supply that is driving our drug poisoning crisis," Dr. Richard Stanwick, Chief Medical Health Officer for Island Health said in a news release. "The recent increase in overdose deaths in communities within Island Health shows a clear need for better access to a safer drug supply." This crisis affects all corners of society, and we know safe communities are fundamental for all of us to be able to function well at work and at home. There is uncertainty beyond anyone's control, and then there is uncertainty caused by surprise shifts in government policies. It's the latter that causes concern for many businesses, especially after operators in the food and beverage industry lost thousands of dollars when the province suddenly banned alcohol sales after 8 pm on New Year's Eve.
Businesses need to plan for their future, regardless of their sector, and it shouldn't be up to industry associations to get clarity on rules as it was this week ahead of Super Bowl Sunday. The Chamber will continue to work with the provincial government to ensure better transparency around public health restrictions that affect business operations. "We've heard from Dr. Henry that businesses are doing the right thing and have not been problematic," Chamber CEO Bruce Williams says. "We need to work together with government to make sure businesses can do the type of long-range planning they need to stay viable and get through this pandemic." An updated wage subsidy program is available for employers to help cover costs of hiring or training staff. The WorkBC Employer Wage Subsidy covers a percentage of employees wages for up to 24 weeks.
WorkBC has opened the program up recently to make it accessible to more people looking for work. The hope is that it can help people get the training needed to take on roles that employers are having a difficult time filling. The Chamber continues to advocate for programs that help employers find and keep workers, and we know that this is an underlying concern for our region's economy. To find out more about the program, an info session is planned for Feb. 10, starting at noon. WorkBC is also hosting an info session on cultural awareness on Feb. 8, from 9 to 11 am. Inclusion is another advocacy priority for The Chamber, allowing employers to successfully widen their talent pool and contribute to the community. The reality is stark for tourism and transportation businesses, and without immediate help many vital services and experiences will disappear before the pandemic ends. On Monday, Wilson's Transportation announced it cannot afford to resume bus service to Tofino on Feb. 12, as previously planned. Wilson has asked the province for help ensuring its essential service could continue. “There is a similar subsidy model in place to ensure public safety along the Highway of Tears in Northern BC,” said John Wilson, President and CEO of Wilson's Group of Companies in a news release. “We know how important our services are to island First Nations and other communities and we also know the devastating effects the loss of a service like ours can have.” The Times Colonist reports that Transportation Minister Rob Fleming acknowledged, in a statement, that some inter-city bus providers, like other businesses, are struggling. “I recognize how dire the situation is, and am fully committed to working with this sector in the recovery from pandemic-induced financial challenges.” According to the latest industry statistics from Chemistry Consulting, the number of buses using BC Ferries was down almost 90% in 2020 from 2019. The situation is also dire for accommodation providers who saw revenue per available room drop by almost $85 per night in 2020 compared to the year before. Wilson's has also started an online petition to try and collect as many signatures as possible to show support for keeping the service. Sign the petition here: https://www.change.org/SaveTofinoBus CHEK News and reporter Rob Shaw deserve a shout-out this week for looking beyond the doom and gloom, and highlighting a hopeful message in an interview with Provincial Health Officer Dr. Bonnie Henry.
While many media stories this week have focused on pandemic fatigue, the CHEK report offers some context to Henry's plea for British Columbians to do more. “If we can just get through the next few months and get to that place, we’ll be able to do a lot more this summer than we ever did last summer," Henry said in the interview. "And we’ll be able to get to that point where we can get back to not wearing masks again, where we can get back to being together in that way we all so want to." There was some good news yesterday for businesses that have been the hardest hit by the pandemic as the federal government launched the Highly Affected Sectors Credit Availability Program. Up to $1 million in low-interest, government guaranteed loans are now available for businesses. Businesses with multiple locations can receive up to $6.2 million.
"We've been calling for help for the tourism and transportation sectors, which have been devastated," Chamber CEO Bruce Williams says. "This program is a lifeline, but we have concerns about adding more debt to businesses that have lost their revenue sources. Instead of loans, these businesses need relief to stay afloat until restrictions are lifted and they can start to make a living again." To qualify, businesses need to show year-over-year revenue decline of at least 50% in three months, within the eight months prior to their application. The Business Development Bank of Canada will work with participating Canadian financial institutions to provide the loans. In the fall, the province acknowledged that Fraser Health is where most of the cases of COVID-19 in BC are occurring and imposed further restrictions on that region. However, as the pandemic's second wave grew larger, all British Columbians were asked to take a step back and limit activities through the holidays. "We now need to talk about going back to regional restrictions, even though it's not an easy conversation," Chamber CEO Bruce Williams says. "Re-opening of businesses and ensuring economic activity is vital to public health. Restrictions are taking a toll on the mental and emotional well-being of people in our community." Throughout the pandemic, Vancouver Island has consistently had much lower case counts than other health regions in BC. Clearly, Islanders are overwhelmingly abiding by restrictions that slow the spread of COVID-19. "We can do this. Better times are coming. As entrepreneurs and business leaders, our members know how to deal with adversity while keeping a healthy sense of cautious optimism," Williams says. "They deserve to be recognized for their efforts by being allowed to get back to business with restrictions that reflect what's happening in our region." ICBC customers will save money in 2021 under the crown corporation's new Enhanced Care program. On Tuesday, Minister of Public Safety and Solicitor General Mike Farnworth showcased an online calculator that gives customers an idea of how much lower their ICBC premiums will be going forward.
The change reflects a shift to a no-fault model that significantly lowers legal costs. "For eligible customers, the tool will display a refund amount of the difference between their current Autoplan coverage and the new, lower-cost Enhanced Care coverage," says a statement from the ministry."The refund amount depends on the customer’s renewal date and how much of their current policy extends beyond May 1, 2021." The Victoria Police Department is warning businesses about a disturbing spike in property crimes to start the new year. A little more than half-way through January, there have already been more break-and-enters reported (28) than in all of December (26). Three-quarters of the crimes have been in downtown Victoria and the Burnside Gorge neighbourhood.
The break-ins are predominately taking place at unoccupied businesses, police say. Some of the crimes involve the removal of glass panes using specialized tools. VicPD urges businesses to take precautions and asks anyone with information about the crimes to call 1-800-222-8477. The Chamber advocates for safe communities as a fundamental requirement for people to be successful at work and in life. In 2020, this advocacy priority became more urgent due to increases in crime and the number of people experiencing homelessness. We will continue to call for adequate resources for police, and will keep an eye on municipal budget deliberations currently underway. There's still time to tap into a provincial grant program that has been underutilized by BC businesses. The office of Oak Bay-Gordon Head MLA Murray Rankin has sent out a reminder to local businesses that they can access the program until funds are fully allocated, or March 31 — whichever comes first
Grants of $10,000 to $30,000 are available, while an additional $5,000 to $15,000 grant is available to eligible tourism businesses. The province lowered barriers to the program on Dec. 18, but it still has had less uptake than expected. Businesses that sent in applications before the change will be reevaluated under the new criteria. If you haven't applied, find out if you're eligible and submit an application here. |
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