Premier Gordon Campbell's economic plan announced Wednesday night (Oct. 22) could be the unofficial kickoff to the May 2009 provincial election campaign.
Increased security for credit union deposits, tax breaks for small businesses and new pension opportunities are among the highlights of the 10-point plan to bolster B.C.'s economy and help the province weather the economic storm brewing around the globe.
Until today, credit union deposits were insured up to $100,000. Campbell's move brings B.C. in line with Alberta, Saskatchewan, Manitoba, P.E.I. and New Brunswick, that offer unlimited coverage. The announcement will "add to the confidence our members currently have in us and their deposits," said Dale Eichar, CEO of the Sunshine Coast Credit Union.
For the 75 per cent of B.C. workers without a group pension plan, the premier announced a new, privately financed, defined contribution pension plan. The decision evolved from work done with the Joint Expert Panel on Pension Standards with Alberta.
In addition to the two per cent personal income tax cut announced in July - a cut that means no net savings after being balanced by the carbon tax - the premier has applied a three per cent income tax reduction retroactive to Jan. 1, 2008. That tax cut was scheduled to come into effect in 2009.
Effective Dec. 1, 2008, an accelerated tax relief plan will mean small business tax rates will drop over three years from 3.5 per cent to 2.5 per cent. The move follows a reduction from 4.5 per cent in July.
The premier's accelerated public investments in capital infrastructure projects "could be good news for us," said District of Sechelt co-ordinator of council and community affairs Connie Jordison. Funding will focus on projects without a long lead-time that will keep people employed in the construction sector.
A 50 per cent school property tax rebate for light and heavy industry, some of B.C.'s oldest and often rural companies, was also announced. Al Strang, manager of environment and external relations for Howe Sound Pulp and Paper, said the rebate will save the company $750,000 per year.
"Anything that helps reduce our costs helps us, and we're happy with this announcement," he said. The province is aiming to have the lowest corporate tax rate in Canada by 2011.
Since some of the measures require legislative approval, the premier will commence a legislature session on Nov. 20 - three weeks beyond when the optional fall session was scheduled to begin, said Powell River-Sunshine Coast MLA Nicholas Simons.
"It's not the fall session that should've taken place. I don't think these short-term solutions will be enough for long-term problems," he said. As a member of the NDP opposition, Simons said question period will provide an opportunity for his party to shed light on some election-relevant issues.
