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."

A high-level plan to disrupt housing supply in BC was announced by the province on Monday.
 
“Even though our province is currently building more housing than ever before, it’s just not enough to meet the need," BC Premier David Eby said in a news release.
 
The province identified four areas of focus that it says will increase the number of available homes, make them more affordable, help people in need and reduce the appeal of homes as short-term investments.
 
Most of the changes will come after legislation is introduced in the fall, though critics are questioning whether the proposals will inadvertently make housing less affordable.
 
"Everyone agrees that we need more housing supply," Chamber CEO Bruce Williams said. "There are some positive ideas in this announcement but we'll need to see more details to know how this will impact things like municipal governance and how realistic the plan is, given the dire need for more skilled workers to build enough homes to meet demand."

The fight against inflation is working as the Consumer Price Index for February was down 5.2% year over year. That compares to 5.9% in January and is the largest deceleration since April 2020. Lower costs at the pumps and for home energy helped lower the CPI, while the cost of groceries remains high as supply constraints and weather-related production issues is adding to the cost of food.

The global economy is getting back to normal but there's still a ways to go, says the Canadian Chamber of Commerce Chief Economist Stephen Tapp.

"In this context, the latest Canadian Survey on Business Conditions shows that costs and labour issues remain the biggest near-term obstacles for Canadian companies," Tapp said the Q1 2023 Canadian Survey on Business Conditions Report. "Even as higher interest rates slow demand, there are a few bright spots. First, while long-standing supply-side bottlenecks for the workforce and supply chains remain elevated, they have eased in recent surveys. This might be
because businesses are taking proactive steps to address these problems, such as raising wages, embracing flexible work options and working with suppliers. Second, while the near-term outlook for sales is clearly subdued, all things considered, most companies remain optimistic about the year ahead, especially larger firms and those in services."

The Chamber applauds news of a Canadian Armed Forces housing benefit that will help make life a little more affordable for people stationed at CFB Esquimalt. With one of the higher costs of living in the country, Greater Victoria is a challenging region for employers looking to find and keep employees. This is amplified when people living in areas with lower housing costs are asked to move here for their job.

The Canadian Forces Housing Differential takes effect July 1 and replaces the current allowance for members of the military living in expensive communities. The new benefit is tied to income to help lower earning members.

The Chamber is also supportive of ongoing efforts to develop more housing for CFB Esquimalt members. The Department of National Defence has previously announced plans for an 84-unit apartment on the base.

"This is a great example of how non-market housing can help add homes to our region's housing supply that are catered to the needs of a specific employer or sector," Chamber CEO Bruce Williams said. "This will eventually allow for more market homes to be available to people in other industries."

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.

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.

New legislation introduced yesterday by the provincial government will require employers to include wage or salary ranges on all advertised jobs. The move is aimed at closing the gender pay gap in BC. The new law, once passed, will prohibit employers from asking prospective employees about their pay history or prevent staff from disclosing their own pay to co-workers or job applicants.
 
The rules will take effect Nov. 1, and will also include a staged implementation of reporting requirements for employers.

• Nov. 1, 2023: BC Public Service Agency and Crown corporations with more than 1,000 employees (ICBC, BC Hydro, WorkSafeBC, BC Housing, BC Lottery Corporation and BC Transit).
• Nov. 1, 2024: all employers with 1,000 employees or more
• Nov. 1, 2025: all employers with 300 employees or more
• Nov. 1, 2026: all employers with 50 employees or more.

 
BC's Ministry of Finance will publish an annual report by June 1 that will serve as centralized reporting of gender pay in British Columbia.

Camosun College announced last week it has selected a company to be pre-qualified to design, build and fund a film studio with education components.
 
The Visionary Group of Toronto will now enter into discussions with Camosun to determine the scope, timelines and cost for the project.
 
In 2021, the province gave Camosun $150,000 to explore educational opportunities for students in the BC film industry and the potential development of an on-campus film studio. The project has been touted for land at Camosun's Interurban Campus in the District of Saanich.

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.”

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."

A priority for business that has become more urgent in recent years is the fundamental need for safe communities. It's clear there's no simple answer, but one of the evidence-based solutions is the need to do more to address mental health.
 
"Our members have been vocal about the need for better support for people facing mental health and addiction challenges," Chamber CEO Bruce Williams said. "This is how we can begin to address the situation we see on our streets and in parks, as well as the hidden struggles that many people are going through silently in their own homes."
 
The Chamber has advocated to government for investment in complex care, so we applaud the news of an $8.2-million provincial grant to the Canadian Mental Health Association.
 
“We are honoured to be part of the solution, co-designing care to improve health, social and employment outcomes for people with long-term experience of complex barriers to employment," CMHA BC Division CEO Jonny Morris said. "We are excited to see the expansion of behavioural health-care integration with primary-care centres in more sites in B.C.”

Housing supply is a hot topic as many regions compete for skilled workers. The demand is especially high for homes accessible to people who earn a living in Greater Victoria's economy. One of the solutions is to think about workforce housing as an investment that directly benefits our region's employers. Last week, BC Housing announced the Capital Regional District Housing Corporation project in the City of Langford is now open. The five-storey wood-framed building at 2782 Spencer Rd. includes 58 rental units for families and individuals.
 
BC Housing also announced 72 new units in the City of Victoria — 51 affordable housing and 21 supportive units — are open at 210 Gorge Rd. in partnership with the Cool Aid Society. A five-storey wood-framed building as well, the Victoria site includes ground-floor offices that include supports that will help residents become more employable and make the community safer.
 
“We are already seeing the positive impact of this unique project," Victoria Cool Aid Society CEO Kathy Stinson said in a news release. "Families, single people, seniors and people who need supports are getting to know one another, which is having the desired effect of helping to reduce the stigma around homelessness and creating a sense of community for everyone who lives there.”

On Feb. 14, The Chamber facilitated a Zoom session with Paul Robinson of the Vancouver Island Transportation Corridor Coalition and Larry Stevenson, CEO of the Island Corridor Foundation.
 
Members of chambers from across Vancouver Island attended to listen and ask questions about the corridor's future. It's currently uncertain as a March 14 court-imposed deadline looms. In 2021, the BC Court of Appeals gave the federal and provincial governments 18 months to renew their commitment to improve the infrastructure required for rail. The deadline was triggered by a lawsuit launched by the Snaw-naw-as First Nation. They want to reclaim the land that runs through their territory, arguing the right-of-way granted by Canada in 1912 is no longer being used as intended.
 
Island communities enjoyed rail service for more than 100 years, until it was suspended indefinitely in 2011. Since then, a vocal group of train enthusiasts, environmentalists and transportation planners have been calling for a modern passenger train that will reduce the number of cars and transport trucks on Island highways, cut greenhouse gas emissions and offer an alternative for commuters.
 
Island communities have also lost inter city bus service creating yet another barrier to safe travel for people who can't access a vehicle. The Chamber has asked the Federal Government to subsidize a return of that service.

A transformative housing development is going to the City of Victoria for approvals this week. The proposal for Harris Green Village includes 1,500 suites and more than 100,000 square-feet of commercial and retail space.

The neighbourhood, adjacent to downtown Victoria, is considered an up-and-coming-area of the city. The proposal by Starlight Investments goes to Public Hearing on Feb. 9, for council to consider an amendment to the Official Community Plan and rezoning for 1045 Yates St. and the 900-block, as well as a development permit for Phase 1.

"We know our region needs housing supply and this is a significant opportunity to create much needed rental homes in an area that has a lot of appeal," said Chamber CEO Bruce Williams, who is speaking at the hearing via video on behalf of the need for housing.

The Chamber's top advocacy priority for at least the last five years has focused on helping employers find and keep workers. It's a complex problem that affects many layers of our economy. Housing, child care and affordability are key and real progress is being made to find solutions.

However, everyone who cares about our region's long-term prosperity should be concerned about a proposal that could upend a cornerstone of Greater Victoria's economy. The province is being pitched a plan that could mean fewer public sector workers downtown, and potentially see jobs shipped out of our region.

“The fact that people living anywhere in B.C. can apply for these jobs means that yes they can stay home and work that would create some prosperity in other places but it doesn’t help the circumstance here when the economy has largely been framed around government workers working downtown in office buildings,” Chamber CEO Bruce Williams told CHEK News.

The Chamber is urging the province to consider the full implications the proposal would have on the stability of BC's capital city. Speaking to the Times Colonist, Williams said "there is a long-standing synergy" between many family-supporting businesses that have been built to service government workers.
“The public sector is a ­cornerstone of our economy and communities depend on that ­stability,” Williams said in in the article.

The Chamber is listening to our members about how their business could be impacted by this plan, which contrasts with federal government efforts to increase productivity in its workforce by having employees back in office more often.

Share your thoughts with The Chamber at communications@victoriachamber.ca.

Canada's economy continued to grow in November, although at an almost negligible rate of 0.1%, according to the latest report from Statistics Canada.
 
Many economists are calling for a brief recession this year as higher borrowing costs are starting to impact consumer spending and business investment. The Bank of Canada said that it expects inflation, currently about 6.3%, to return to its target rate of 2% later in 2023. That will enable the bank to lower interest rates and stimulate the economy with less risk of overheating.
 
"Greater Victoria has traditionally fared better than many regions during recessions due to our large public sector." said Chamber CEO Bruce Williams, who also spoke to CHEK News about the need to consider broad implications before making quick decisions on future of public sector work. "Those workers are very important customers to many local businesses. They've created a synergy over many decades that can't take be taken granted. We need decision makers in government to understand how important it is to keep workers in Greater Victoria for the stability of BC's capital city."

One of the solutions for helping employers find and keep workers in Greater Victoria is to ensure there are homes for all income levels. A proven method to do that is non-market housing that provides homes for the people who help tourism and hospitality businesses operate at their full potential. Affordable rent is key, and helping non-profit organizations manage housing to create homes for workers is a practical way to keep our region's economy resilient and sustainable.

The province's recent creation of a $500 million Rental Protection Fund has the potential to help, by allowing non-profits to acquire affordable housing units facing market pressure to be redeveloped. "According to Canada Mortgage and Housing Corporation data, between 1991 and 2021, approximately 97,000 purpose-built rental units in B.C. were either redeveloped or converted to more expensive units." states the province's news release.

The provincial government appears to be sharpening their scissors as they look to cut through red tape slowing new homes from being built in BC.

On Monday, Premier David Eby announced a "one-stop-shop" for provincial permitting to make it easier for more housing to be created. The Permitting Strategy for Housing co-ordinates housing-related permits across ministries. This eliminates the need for multiple applications to get permits for "riparian area approvals, water licences, transportation approvals, road rezonings, contaminated sites, and requirements for heritage inspection."

Having fewer bureaucrats shuffling paper on projects is a positive sign that the province is serious about adding urgency to promises to increase housing supply.

"From finding and keeping workers to helping people without homes and making sure Greater Victoria remains attractive for people looking to start their careers and raise families, the biggest challenge is the lack of accessible housing," Chamber CEO Bruce Williams said. "We have had great conversations with local governments about adding to our region's housing supply. Speeding up the provincial process is a signal to municipalities that housing is critical, and they need to lead the way to get more homes built to meet demand."

Finding and keeping workers has been an ongoing challenge facing every sector and almost all employers in Greater Victoria and across the country. We need a larger workforce to enable organizations to reach their economic potential. One of the key solutions is to welcome more new Canadians to our region. Last year, Canada set a record for immigration as 431,645 people became new permanent residents — the most since 1913. The target for 2023 is 465,000.
 
Canada's labour force growth is almost 100% dependent on immigration. The Chamber has been working with community partners and our national network to advocate for immigration that prioritizes workers with skills needed by employers. We're also working to ensure Greater Victoria receives its fair share of immigration, which typically gravitates to Canada's larger cities.

The federal ban on foreign purchases of Canadian homes is now in effect. The intent of the regulation is to free up housing to meet the intense demand that has seen real estate prices skyrocket over the past decade. However, just how effective the rule will be remains to be seen as foreign buyers account for less than 0.5% of real estate sales in BC.
 
The prohibition isn't permanent. It's set to run for two years and does not apply to non-Canadians who are looking to rent. The Act defines residential property as buildings with fewer than four homes, as well as parts of buildings like a semi-detached house or a condominium unit. The law does not prohibit the purchase of larger buildings with multiple units.
 
Anyone convicted of violating the Act faces a $10,000 fine, and non-Canadians could face a court order to sell the house.

As property assessments arrive in BC mailboxes, people in Greater Victoria can expect a mixed message about the value of their properties.
 
“Homeowners across Vancouver Island can generally expect about 10% to 20% rise in assessment values with a few exceptions," BC Assessment's Vancouver Island Deputy Assessor Jodie MacLennan said in a news release. “While the current real estate market has been trending downwards, it is important to consider that 2023 assessments are based on what your home could have sold for as of July 1, 2022, when the market was performing higher."
 
The increase in property values is reflected in an increase to the threshold for the Home Owner Grant, which is now available for properties worth up to $2.125 million. The grant amount has not changed, however.
 
An increase in your BC Assessment does not directly result in an increase to your property taxes. If your property increased by the average rate or less for your municipality, your taxes could decrease.

Could this be the end of interest rate increases? The Bank of Canada increased its rate today to 4¼%, but softened the language it uses around future increases.
 
A statement from the bank said the bottlenecks that had been affecting global supply chains are loosening.
 
The Consumer Price Index was at 6.9% in October, though core inflation was 5% — much closer to the bank's target of 2%.
 
"Three-month rates of change in core inflation have come down, an early indicator that price pressures may be losing momentum," the bank stated. "However, inflation is still too high. The longer consumers and businesses expect inflation to be above the target, the greater the risk that elevated inflation becomes entrenched."
 
Make sure to consult with your preferred financial and mortgage advisors —The Chamber's Member Directory is a great place to find experts who can help you make your business thrive.

Greater Victoria continues to have one of the tightest labour markets in Canada. The latest numbers from November show our unemployment rate is back to 3.5%, according to Statistics Canada. That's down from 4.3% in October and closer to where the region typically was before the pandemic.
 
"We know there is work in our region and that makes us attractive to ambitious people who want to move here and build their careers," Chamber CEO Bruce Williams said. "Our regional economy benefits from having the stability of BC government jobs as well as CFB Esquimalt. However, we still need to address housing supply in Greater Victoria to make sure we can retain people who want to work here and contribute to our community."
 
There is some good news on that front as new construction jobs appear to be driving the lower rate. There were 18,400 people employed in construction this November compared to 13,500 in November 2021.

Businesses that service the real estate industry are a major contributor to Greater Victoria's economy. However, rising interest rates have slowed sales. Throw in the traditional quiet period around the holidays and fewer properties are changing hands. Only 384 sales were recorded in the region for November, down from 653 last November.
 
There are also concerns about potential unintended consequences of recent changes to the provincial Strata Property Act.
 
"It is an open question whether these changes will bring any additional rental stock to the market — with BC's complex Residential Tenancy Act not all homeowners of vacant strata homes have a desire to become landlords and current interest rates are less attractive to investors who may want to purchase strata rental properties," Victoria Real Estate Board President President Dinnie-Smyth said in a news release. "It is also possible that these measures will contribute further to eroding housing affordability as older stratas with rental restrictions were generally valued lower than their rentable counterparts."
 
Slower sales have also contributed to a slight dip in market values over the last few months. That could mean some property assessments — being sent out soon to homeowners from BC Assessment — will be higher than current market value.
 
“I want to emphasize that assessments are based on July 1 values of this year, meaning that when similar properties were sold up to and around July 1, those market value sales are used to calculate your assessed value," Assessor Bryan Mura said in a news release. “An increase in assessment value does not, however, necessarily result in an increase in property taxes. Taxes are typically only affected if you are above the average value change for your community."

BC Premier David Eby hasn't wasted any time putting his stamp on the provincial government. In less than two weeks, the province has rolled out a series of almost daily announcements that take aim at some of the top concerns facing British Columbians.

Among the barrage of news releases was a promise to add $230 million to RCMP funding to increase staff and a plan to train more doctors. Those, along with announcements of a new Housing Ministry and a strategy for making communities safer, are welcome news. The Chamber will continue to advocate for business as these announcements move from the idea stage to implementation.

Tell us what you think by emailing communications@victoriachamber.ca.