Funds announced today will provide on-campus housing for Camosun College students at the Lansdowne campus.
"This is something that The Chamber has long advocated for, and we're happy to see funding finally made available," Chamber CEO Bruce Williams said. "Building housing for students will open up affordable homes in the community. This is a smart solution to the housing crisis and will help people who face challenges finding a home in our region." The $154.7 million six-storey building is expected to be ready by fall 2027 and will house 423 students in single, studio and quad-unit types. The building will be constructed using mass timber, targeting LEED Platinum Standards. Camosun is contributing $3 million to the project, with the rest of the funding coming from the province. “On-campus housing brings various social, academic and personal benefits, including greater retention rates, while freeing up rental spaces in the surrounding communities,” Camosun College president Lane Trotter said. Pay equity is one of the keys to unlocking productivity in our workforce, and vital for helping employers find and keep workers.
In 2023, British Columbia introduced the Pay Transparency Act to formalize a system for employers to ensure employee compensation was not being influenced by gender. Women in BC earn 17% less than men, based on median hourly wages. The disparity is higher for Indigenous, racialized and newcomer women. The province recently launched an online reporting tool for BC employers to prepare pay transparency reports, which are a legal requirement. By Nov. 1, all B.C. employers with 1,000 or more employees are required to prepare and post reports about their gender-pay gaps. The requirement has been introduced in stages to give employers time to prepare.
Drawing on data from Statistics Canada and pay transparency reports posted by employers last year, the province's first annual report provides an overview of the gender pay gap in BC by sector, employment type and intersectional identities. On Saturday, the province's minimum wage increases from $16.75 to $17.40 an hour.
BC continues to have the highest minimum wage among Canadian provinces. "First, we acknowledge that times are challenging — especially for people trying to make a living while earning minimum wage," Chamber CEO Bruce Williams said, noting that many Chamber members already pay higher than minimum wages. However, increasing the cost for employers and businesses will result in higher costs for goods and services. Businesses set prices based on their costs, including payroll. Linking minimum wage to the outsized inflation of recent years is out of step with today's economy and the pressures faced by recovering businesses. "Increasing minimum wage by almost 4% creates a more challenging environment for businesses in BC, especially compared to Alberta where the minimum wage is now $2.40 less," Williams said. "It doesn’t take a rocket scientist to see that adding expenses is not the way to attract employers to our province." And with fewer employers, there is less competition for employees — driving down their earning potential. "No one wins when businesses leave because they can’t afford to operate here," Williams said. "The best thing government can do is reduce the cost for entrepreneurs and the private sector. We want the economy to grow and lift everyone by enabling employers to hire more people and pay them competitive wages." More homes.
That's the simple answer to so many of the complex challenges affecting our economy — from attracting and keeping workers to providing shelter for people camping on city streets. The Chamber consistently advocates for policy changes and investment that will boost our housing supply. And we applaud the latest announcement this week that sees a pilot Building Permit Hub begin operations in select regions of the province, including in the City of Victoria and the District of Saanich. The online tool is expected to be available at the local level this summer. The goal is to streamline and standardize local permitting processes that can be complicated and delay home construction. "This new one-stop shop for local building permits will reduce red tape for homebuilders, local governments and First Nations, and ultimately save money, speed up construction and help people get into homes faster,” BC Premier David Eby said in a news release. The new hubs:
April's unemployment rate dipped to 4.5% in Greater Victoria, according to Statistics Canada's latest figures.
That's down from 4.8% in March. The region's labour force grew to 244,000 in April compared to 242,000 in March. Nationally, the unemployment rate was 6.1% in April, unchanged from March after dropping consecutively for six months previously. Provincially, the rate was 5% in April, with 23,400 jobs added over the month. Greater Victoria had the lowest unemployment rate in BC in April, and the fifth lowest among all Canadian Census Metropolitan Areas. A new hub close to the "heart of Saanich" was given a key stamp of approval on Monday.
The District of Saanich has an extensive plan for the Uptown-Douglas area, which is at the crossroads of Greater Victoria's core municipalities. The area will be zoned to shape new development designed to grow the neighbourhood as a major hub north of downtown Victoria and between the West Shore and Saanich Peninsula. The plan includes turning Oak Street into a vibrant commercial district that creates a walkable boulevard between Uptown Mall and Mayfair Shopping Centre. The City of Victoria is updating its Official Community Plan this year. The province requires all BC municipalities to update their OCP every five years with a vision for the next 20 years. Victoria — facing a changing climate, growing population and a profound shortage of housing — is looking for input from the public and business community to help shape the next plan.
"Decisions on where housing, businesses and parks should go, how we move around the city and ways Victoria can respond to the climate crisis are all determined by the OCP," states the city's website. "If the City was a train, the OCP would be its conductor leading the way." Community engagement will continue until September and plans currently include an open house, a survey, pop-up events in the city and an online information session. Learn more at engage.victoria.ca/ocp. As part of the plan for transforming the Uptown corridor, the province is proposing changes to Ravine Way to accommodate new bus stops and expanded trails in the area.
An information session is scheduled for May 1, from 3-7 pm at Cedar Hill Golf Course, to review design concepts, get feedback and discuss how to improve the area for people travelling by bus, foot, bicycle, wheelchair or scooter. The slight increase to inflation reported yesterday is not outside the range that could jeopardize an anticipated interest rate cut in June.
Statistics Canada reported yesterday that the Consumer Price Index rose to 2.9% in March — up from 2.8% in February. Gas prices were the biggest reason for the rise. Without those fuel costs, March's inflation actually slowed from the previous month. "Many inflation indicators are trending in the right direction and interest rate cuts are still on the table for the Bank of Canada’s interest rate announcement in June," the Conference Board of Canada stated, adding that getting to 2% inflation target could take awhile. Many employers are forecasting wage growth and consumers still see prices rising in the months ahead. "While there is still one more CPI release to come before the Bank's next policy decision, (yesterday's) data keeps us on track to see a first rate cut at that June meeting," CIBC Executive Director of Economics Andrew Grantham said. Using available land on military bases for direly needed homes for military personnel can help solve Canada's housing crunch.
The Chamber is currently crafting a policy resolution on this solution for our national network to take to the federal government. This week, we heard good news from the feds. The defence policy update titled Our North, Strong and Free includes almost $300 million for Canadian Armed Forces Housing over 20 years. "Chamber members tell us one of the biggest hurdles for finding and keeping workers is the cost of housing in Greater Victoria," Chamber CEO Bruce Williams said. "We have thousands of Armed Forces personnel in our region, and providing more, quality housing on CFB Esquimalt land will free up homes off base for other workers." The update announced a total of $8.1 billion over five years and $73 billion over the next two decades to bring Canada closer to its NATO commitment. The District of Saanich's plan for the area around Uptown received a boost on Monday as the province announced it has secured land for a new transit-oriented development.
“Our communities are growing quickly, and people need affordable homes close to public transit, so they can get to where they need to go – and get ahead in life,” said BC Premier David Eby, who will be speaking to Chamber members on April 30. “This new development in Saanich will create a vibrant, connected community where people can find everything they need at their doorstep.” The land was bought by the BC Ministry of Transportation and Infrastructure’s $394-million property acquisition fund. Early plans for the area in Saanich include hundreds of new homes, public spaces and active-transportation connections. There will also be new retail and commercial spaces. Other suggested services include child care, community health and educational facilities. The development will integrate the Lochside and Galloping Goose regional trails to make it a hub for active transportation and BC Transit services, with connections to downtown Victoria, the University of Victoria, the Westshore and the Saanich Peninsula. “The Uptown-Douglas area is the perfect location for a high-density, transit-oriented development and regional transit hub that will no doubt be transformative for this community," Saanich Mayor Dean Murdock said in the news release. Luke Mari, principal of Aryze Developments commented on the announcement, saying “The best transportation plan is a land-use plan. When we put the right homes in the right places – near existing services amenities and transit – we can reduce our dependence on private car use.” Six new projects in Greater Victoria funded in part by the province will provide 765 affordable rental homes. Two sites, owned by the Luther Court Society, in the District of Saanich at 1525 Cedar Hill Cross Rd. and 3781 Cedar Hill Rd., will be home to 95 new units of intergenerational housing with community support space on the ground floor.
“I’m thrilled to see support from BC Housing’s Community Housing Fund going toward several innovative projects in our community," Saanich Mayor Dean Murdock said. "Once completed, they will provide affordable rental homes for families, students and seniors. We want to provide housing for people at all life stages that provides a high quality of life, and these projects certainly contribute to these goals.” Other projects in the region include:
"The need for housing supply in our region is great, and even small efforts help," Chamber CEO Bruce Williams said. "We want our region to be attractive for people to live, start a family and build a career and affordable housing is key to making that happen." The rules targeting short-term rentals in BC have been updated to provide a little more clarity.
The Short-Term Rental Accommodations Act takes effect May 1. The updates, once approved, will include an exemption from the principal-residence requirement for certain strata-titled hotels and motels, so they can continue to operate. Strata hotels and motels consist of individually owned strata lots, where accommodation is provided in a manner similar to a hotel or motel. The definition requires the facility meet certain criteria, based on whether they were operational before Dec. 8, 2023. "The Chamber has been at the forefront of calling for increased housing supply, but we also stand for fairness and have called on government to protect purpose-built visitor accommodation," Chamber CEO Bruce Williams said. "Difficult decisions are required to find the balance between having enough rooms to adequately support our important visitor economy, and ensuring there are enough homes for all residents." The BC Provincial Nominee Program is being updated to help people new to Canada better understand what is required to be nominated for permanent residency through the BC PNP. The program is the provincial government's only tool for directly selecting immigrants for permanent residency. The program currently prioritizes workers in health care, construction, early childhood education and other in-demand jobs.
"The BC PNP is competitive, but some recruiters misrepresent it as an easy pathway to permanent residency," the provincial media release said. "These updates will give people a better understanding of the education, experience and language skills that they need to be considered for nomination. The program updates align with new measures to protect international students from predatory institutions and recruiters, such as:
"The Chamber continues to work closely with our region's post secondary schools to support their highly successful international student programs," Chamber CEO Bruce Williams said. "The University of Victoria, Camosun College and Royal Roads University have set the bar for the country when it comes to attracting and training people who contribute to our country." A recently released report by Grant Thornton says Canada's real estate industry is looking for optimism in uncertain times. The report highlights current trends impacting the real estate industry, as well as trends across residential, retail, office, industrial and alternative asset classes.
Ongoing concerns include developmental pressures created by a shortage of labour in construction, environmental challenges as governments try to meet climate change targets and stubbornly high interest rates that are dampening investment. "The general economic uncertainty we currently face has left many organizations with less appetite for risk and a resultant focus on risk management," the report states. "To secure financing, borrowers need to get out ahead of their lenders and present a balanced risk profile. It will be increasingly important to present a transparent financial picture, get to know your lenders more closely, and get in front of renewals earlier in the process so that you have time to address potential concerns. Borrowers with less liquidity or poor cash flow are going to have a more difficult time securing financing, and those that do will see less favourable terms." 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:
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." Housing supply is a keystone issue. It affects almost all other Chamber advocacy priorities, so we're pleased with yesterday's announcement of the BC Builds program. The goal of speeding up construction of more homes for middle-income earners is vital for ensuring we have the skilled workforce needed by employers.
It's too soon to know all the details of BC Builds, which the province says will leverage land owned by government, municipalities or non-profits along with $2 billion in low-cost financing and a commitment of $950 million for the overall program. The Chamber has called on all levels of government to look at solutions used in other jurisdictions around the world, including Vienna, Austria. BC Builds appears to do just that — though some municipal leaders are already pointing out gaps in infrastructure that need to be addressed. The executive lead for BC Builds, former Victoria mayor Lisa Helps, told Business in Vancouver the program will allow construction to continue on rental homes at a time it is being slowed by other forces. “BC Builds is not an affordable housing program, it's not supportive housing, it's not subsidized housing. It's really meant to close the gap above where BC Housing programs end and where we … start to really see a slowdown in rental development if there isn't an intervention,” Helps said. BC Builds at a glance: > At least 20% of all BC Builds homes will have rents at least 20% below market rate for projects in partnership with non-profits and First Nations. > All BC Builds units have a target of middle-income households spending no more than approximately 30% of their income on rent. > The rents for BC Builds will not exceed market rent for that community, and will in many cases be below. > All households living in BC Builds homes are income tested at move-in. > The income levels vary by community, so homes are within reach for that community’s middle-income households. > BC Builds projects aim to deliver more two-, three- and four-bedroom homes, as many as possible with below-market rents. > Projects owned and operated by non-profit providers mean rents will remain low over time, creating more affordability. 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. 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. 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." 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. The federal government announced this week that it was putting a cap on the number of international students permitted in Canada each year. The measure is an attempt to ease the demand for housing, which is in short supply across the country.
However, the one-size-fits-all approach will hurt efforts to train international students needed to fill vacancies in industries facing a severe labour crunch. Child care and health care are two examples that depend on foreign workers to help meet the need. There are also concerns about the cap giving Canada a black eye with overseas students who will look to study in more welcoming countries. “The message has to be external, that Canada is open for business for international students. That’s hugely important,” Royal Roads University president Phillip Steenkamp told CHEK News. “There is still a commitment to bring a significant amount of international students. They make an enormous contribution to our economy and society, and we’ll continue to welcome them here.” The Times Colonist reports that Camosun College and the University of Victoria have experienced fluctuations in the number of international students from before the pandemic to now. Camosun had 2,094 international students enrolled in fall 2023, compared to 1,674 in 2019. UVic has roughly 1,600 international students in the current school year, and had more than 2,500 in 2019. 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." |
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