FILE – Premier John Horgan is joined by Finance Minister Carole James during a press conference at Legislature in Victoria, B.C., on Wednesday, May 15, 2019. The British Columbia government is expected to reveal how it plans to stimulate an economic rebound from the COVID-19 pandemic today. Horgan and James are scheduled to release details of the $1.5-billion economic recovery plan this afternoon. THE CANADIAN PRESS/Chad Hipolito

B.C. releases details of $1.5B economic recovery plan, $660M in business tax incentives

Economic plan includes support for employers, as well as training for workers

The B.C. government is unveiling a host of measures meant to get the economy going, including a tax credit for employers who bring on more employees in the last few months of 2020.

The province’s economy has been hit hard by the COVID-19 pandemic, which shut down much of B.C. for several months this spring. Last week, Finance Minister Carole James said the province was projecting a $12.8 billion deficit for the fiscal year that ends in March 2021.

READ MORE: B.C. deficit forecast $12.8 billion after first three months of COVID-19

Although B.C.’s COVID-19 cases have been increasing in the past few weeks, with an average of more than 100 cases in recent days, the province is pushing ahead with economic recovery plans.

“COVID-19 changed not just our world, but the world,” Premier John Horgan said at a press briefing Thursday (Sept. 17).

“There is no playbook on how to handle a global pandemic.”

Between February and August, B.C. lost 33,900 jobs in wholesale and retail trade; 25,200 in information, culture and recreation; and 24,600 in construction, the only trades field to see a loss of jobs. However, not all industries lost jobs; utilities gained 6,700 thousand jobs; professional, scientific and technical services gained 5,500 jobs and agriculture gained 4,200 jobs.

Consumer spending saw a big dip in the spring of 2020, although monthly retail spending in June rebounded to $7.4 million, just $15,664 below pre-pandemic retail spending in February.

The economic recovery plan is valued at $1.5 billion, part of more than $8 billion in COVID-related funding this year. There is also an additional $660 million in tax breaks, including $190 million to encourage hiring by employers to lower B.C.’s 10.7 per cent unemployment rate, and a $470 million PST rebate on business investments such as machinery and equipment that promotes business expansion.

The province already announced the $1.5 billion for economic recovery earlier this year, but Thursday’s (Sept. 16) announcement broke it down into four categories: recovery for people, recovery for communities, recovery for businesses and building better futures.

Recovery for people, which totals $469 million, includes $300 million set aside for up to 7,000 new jobs in health care, $20 million or supports for people with disabilities, $20 million for short-term skills training for in-demand jobs and $15 million for community skills training and education for Indigenous peoples. It also includes $45.6 million previously announced for school COVID-19 measures.

Recovery for businesses, which totals $405 million, is largely made up of $300 million in small and medium sized business recovery grant, which the province said will save 200,000 jobs. Another $50 million will be allocated to a tourism task force, which will determine where funds are most needed and allocate them before the end of the 2020/21 fiscal year.

Recovery for communities, which totals $375 million, has $100 million dedicated to a COVID-19 Community Economic Recovery Infrastructure Program, which will provide grants for “shovel ready” projects.

Finally, the building better futures segment of the funding, which totals $250 million, includes $25 million for food security programs such as expanding B.C.’s food production and processing and invasive species detection and removal. Another $223 million will go towards future-facing projects including $90 million to improve connectivity along major routes and in rural communities, as well as $35 million towards a Centre for Innovation and Clean Energy.

The last $7 million of the economic recovery plan is dedicated to capital costs, including construction in provincial parks and remote and rural road access, part of which will go to improving the road between Port Alberni and Bamfield on Vancouver Island.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

AdvantageHOPE is working with Boston Pizza to find a franchisee for a Hope location. (Facebook/AdvantageHOPE photo)
Boston Pizza eyeing Hope for new location

With over 395 locations Canada-wide, company is looking to expand to Hope

A woman holds a packet of contraceptive pills. (AP Photo/Tsvangirayi Mukwazhi)
Chilliwack women’s organization among those lobbying for free contraception

Ann Davis Society says while it’s a women’s issue, all of society would benefit from program

Left to right: Sardis Kiwanis Club President Bruce Oakley with nominator Peter Somers, Sovereign’s Medal recipient Brian Cleaver, nominator Derek Fryer and nominator Peter Brown. (Submitted photo)
Chilliwack’s Brian Cleaver wins Sovereign’s Medal for Volunteers

Cleaver is a long-time member of the Sardis Kiwanis Club and a strong advocate for Special Olympics

New Chilliwack restaurant moving into supposedly haunted Nowell Street location

Many restaurants have come and gone, Twisted Thistle the most recent, at Nowell and Princess Ave

Provincial health officer Dr. Bonnie Henry updates the COVID-19 situation, B.C. legislature, Oct. 26, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps by 287, another senior home outbreak

Two more deaths recorded, community outbreak in Okanagan

An untitled Emily Carr painting of Finlayson Point was donated to the Art Gallery of Greater Victoria by brothers Ian and Andrew Burchett. The painting had been in their family for several decades. (Courtesy of the Art Gallery of Greater Victoria)
Never before seen painting by famed B.C. artist Emily Carr gifted to Victoria gallery

Painting among several donated to Art Gallery of Greater Victoria

The B.C. Centre for Disease control is telling people to keep an eye out for the poisonous death cap mushroom, which thrives in fall weather conditions. (Paul Kroeger/BCCDC)
Highly poisonous death cap mushroom discovered in Comox

This marks first discovery on Vancouver Island outside Greater Victoria area

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
Rescued bald eagle that came to life in B.C. man’s car had lead poisoning

Bird is on medication and recovering in rehab centre

Janet Austin, lieutenant governor of B.C., was presented with the first poppy of the Royal Canadian Legion’s 2020 Poppy Campaign on Wednesday. (Kendra Crighton/News Staff)
PHOTOS: B.C. Lieutenant Governor receives first poppy to kick off 2020 campaign

Janet Austin ‘honour and a privileged’ to receive the poppy

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Stock photo
Pair’s lawsuit dismissed against Fraser Valley soccer association and churches

Judge in Abbotsford calls claims against 14 defendants ‘an abuse of the court’s process’

Premier-elect John Horgan and cabinet ministers are sworn in for the first time at Government House in Victoria, July 18, 2017. (Arnold Lim/Black Press)
Pandemic payments have to wait for B.C. vote count, swearing-in

Small businesses advised to apply even if they don’t qualify

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
Sex offender who viewed underage girls as slaves has prohibitions cut from 20 to 10 years

Appeal court reviewed the case of Kyler Bryan David Williams, 29

Most Read