To: russet who wrote (2363 ) 5/28/2002 10:04:57 AM From: russwinter Respond to of 8273 Things seem to be turning for BC natural resources? Also investment cinference with some familiar names in attendance:cambridgeconferences.com BC Builds Foundation for Recovery and Growth -------------------------------------------------------------------------------- BC builds foundation for recovery and growth VANCOUVER, Feb. 27 /CNW/ - Provincial Perspectives - British Columbia, a report issued today by the Investment Dealers Association of Canada (IDA) commends the BC government for taking long overdue measures to ameliorate an ailing economy and deteriorating public finances. Although BC faces a difficult short-term financial situation, the foundation has been laid for recovery in business investment and economic growth in the medium term. The province's recent policy changes are aimed at substantive medium-term results rather than short-term gains. Personal tax cuts were the centrepiece of these policy changes, with BC residents receiving tax cuts averaging 25%. As a result, the top personal federal and provincial combined marginal rate of 43.7% is now the second lowest in the country after Alberta's 39%, with those earning less than $60,000 paying the lowest rates in Canada. A three percentage point cut to the corporate tax rate to 13.5% moves BC's corporate tax rates to third lowest in the country behind Alberta and Ontario. BC will also join three other provinces in eliminating capital tax on non-financial companies in September. Other welcome measures to encourage business and stimulate investment include a deregulation initiative to reduce red tape and the regulatory burden by one third over three years. The IDA believes that these fiscal and regulatory initiatives will have a very positive impact upon investment in the province, particularly in such key resource sectors of the economy as mining and forestry. Slow economic growth will be partly responsible for substantial widening in the budget deficit in fiscal 2002/03, with more red ink in store for the following year. However, the province is committed to return to a balanced budget by fiscal 2004-05. While it faces some challenges to this fiscal plan, particularly from rising health-care costs, it does have some room to manoeuvre. Among options available to the government are asset sales, privatization of Crown corporations and private-public partnerships, where appropriate. In the short-term, the province will face difficult economic conditions, with a second straight year of under one per cent expansion in 2002. Key sectors such as the resource industries, high technology and tourism face another year of difficult operating conditions. Policy changes, however, bode well for the medium-term future of BC's forestry and mining sectors. Despite current setbacks in natural gas prices, the province's oil and gas sector also has bright medium-term prospects that will unfold with recovery in North American economies. The high technology sector, too, will benefit from the recent policy changes that improve prospects for attracting high skilled workers and increased capital infusion in the medium-term. "The IDA applauds the government's efforts to create fiscal order, cut personal income and corporate taxes and reduce the onerous regulatory burden. These policies will help to restore BC to its place as a leading force in the Canadian economy", said IDA President and CEO Joe Oliver.