B.C. economy must brace for a seismic shift from NDP

[Rwede]

B.C. economy must brace for a seismic shift

New government reveals plan that will begin to topple province from its perch as Canada’s leader in job growth and economic vitality

Frank O'Brien Western Investor

September 5, 2017



The West Coast is an earthquake zone and thinking about the “big one” is an ongoing British Columbia fixation, but the province is already quaking from a seismic shift that has dramatically changed the economic landscape.

The election of the BC NDP/BC Green Party coalition has uprooted perceptions of what it is to do business in what has been the strongest economy in the country.

Perceptions like a fair playing field for international investors, the rights of employers to match wages to performance, British Columbia’s potential to become a trusted partner in the global resource industry, and the perception that real estate offers a secure route to financial security.

The new government wasted little time moving to topple B.C. from its perch as Canada’s leader in job generation and economic vitality.

Within weeks of the provincial election, Malaysia-based Petronas killed an $11 billion liquefied natural gas export facility planned for B.C.’s north coast. It is naive to think the coalition’s election did not play a role in that decision. If you think the signal it sent around the world has not been heard, you are not listening.

Now the provincial government has pledged to “use every tool available” to stop the $7.4 billion Trans Mountain pipeline expansion, a project considered vital to Canada’s economy and fully approved by the federal government.


SNIPPPPPPPPPPPPPPPPPPP


The Trans Mountain pipeline would create 37,000 direct and indirect jobs per year during operations. It would provide $5.7 billion per year in provincial tax revenue for more than 20 years and deliver $23 billion in federal tax revenues. But, if the provincial strategy is successful, the project will be dragged into lengthy, costly delays that will eventually kill it.

The new government is also threatening to stop the Site C dam, and the thousands of jobs that depend on it. A large bridge project in Metro Vancouver also appears doomed.

Victoria is also boosting the minimum wage, despite evidence that it will reduce employment.

This government will expand the carbon tax, hike the corporate tax rate to 12 per cent and increase the top personal rate to 19 per cent.

Residential real estate, arguably the province’s most important financial engine, is already reacting to the economic earthquake.

B.C.’s residential dollar volume has plunged nearly 20 per cent from a year ago, housing sales are down 17 per cent and price reductions are becoming common across Metro Vancouver.

It is evidence of a loss of economic confidence that we believe is well founded.

http://www.westerninvestor.com/news/opi ... 1.22441122

[Carrs Landing Viking]

The NDP certainly waste no time in killing a robust economy, don't they.

[seewood]

The NDP certainly waste no time in killing a robust economy, don't they.

In arguably world record time. They must be proud.

[The Green Barbarian]

I have been saying for years that the answer to the housing price boom in BC that is such a "problem" is an NDP government. Just like they killed the housing boom in BC in the 1990's. It's simple really. Elect a bunch of bumbling boneheads whose sole purpose is to kill all economic development, and then they go ahead and kill all economic development. Housing prices plunge, problem solved.

[Cactusflower]

Enough with the sour grapes. The NDP hasn't been in power long enough for anyone to see what they'll do, economy-wise. The BC Liberal fan club's crystal ball could probably use a couple of dishwasher cycles.

[The Green Barbarian]

Enough with the sour grapes. .

In the immortal words of the Carpenters "we've only just begun".

I can't wait until the Liberals are back in power for another 16 year run, and things are back to their natural state of the NDP supporters here constantly whining about things they don't even understand. "Enough with the sour grapes" will be the mantra we'll all enjoy throwing back in your faces NDP lovers.

[Queen K]

B.C. economy must brace for a seismic shift

New government reveals plan that will begin to topple province from its perch as Canada’s leader in job growth and economic vitality

Frank O'Brien Western Investor

September 5, 2017



The West Coast is an earthquake zone and thinking about the “big one” is an ongoing British Columbia fixation, but the province is already quaking from a seismic shift that has dramatically changed the economic landscape.

The election of the BC NDP/BC Green Party coalition has uprooted perceptions of what it is to do business in what has been the strongest economy in the country.

Perceptions like a fair playing field for international investors, the rights of employers to match wages to performance, British Columbia’s potential to become a trusted partner in the global resource industry, and the perception that real estate offers a secure route to financial security.

The new government wasted little time moving to topple B.C. from its perch as Canada’s leader in job generation and economic vitality.

Within weeks of the provincial election, Malaysia-based Petronas killed an $11 billion liquefied natural gas export facility planned for B.C.’s north coast. It is naive to think the coalition’s election did not play a role in that decision. If you think the signal it sent around the world has not been heard, you are not listening.

Now the provincial government has pledged to “use every tool available” to stop the $7.4 billion Trans Mountain pipeline expansion, a project considered vital to Canada’s economy and fully approved by the federal government.


SNIPPPPPPPPPPPPPPPPPPP


The Trans Mountain pipeline would create 37,000 direct and indirect jobs per year during operations. It would provide $5.7 billion per year in provincial tax revenue for more than 20 years and deliver $23 billion in federal tax revenues. But, if the provincial strategy is successful, the project will be dragged into lengthy, costly delays that will eventually kill it.

The new government is also threatening to stop the Site C dam, and the thousands of jobs that depend on it. A large bridge project in Metro Vancouver also appears doomed.

Victoria is also boosting the minimum wage, despite evidence that it will reduce employment.

This government will expand the carbon tax, hike the corporate tax rate to 12 per cent and increase the top personal rate to 19 per cent.

Residential real estate, arguably the province’s most important financial engine, is already reacting to the economic earthquake.

B.C.’s residential dollar volume has plunged nearly 20 per cent from a year ago, housing sales are down 17 per cent and price reductions are becoming common across Metro Vancouver.

It is evidence of a loss of economic confidence that we believe is well founded.

http://www.westerninvestor.com/news/opi ... 1.22441122

OH Stop it with the farm fed BS that housing is down because of the NDP.

Housing was in an unnatural housing BUBBLE for a long time, being fed by stinky BS Liberal inspired downpayment schemes. Why did they do this? To assist in not cutting their HUGE profits from the property transfer taxes. Not allowing housing to deflate on its own hurt families and especially renters in the long run.

The one percent Bank of Canada increase today my hit housing but likely will be easily absorbed by the rich foreign buyers. It's the Canadians who are going to be hurt the most, especially those who are overextended in the first place.

Did the NDP increase the rates? NO, no they did not. So stop it right there.

[rustled]

Enough with the sour grapes. The NDP hasn't been in power long enough for anyone to see what they'll do, economy-wise. The BC Liberal fan club's crystal ball could probably use a couple of dishwasher cycles.

No partisanship here, folks.

The non-coalition coalition has already had an impact on BC's economy. Discussing this impact is "sour grapes".

And anyone discussing it must be a fan of the BC Liberals!

[Rwede]

Did the NDP increase the rates? NO, no they did not. So stop it right there.

The NDP has dashed consumer confidence.

The key indicator of consumer confidence is real estate. People with low confidence in their job/taxes/economy assessment don't rush out and buy new houses.

The NDP is 100% to blame for the current lack of consumer confidence in BC. And they are 100% to blame for the lack of investor confidence in the article.

We've already posted reams of articles on investment drying up here since the Horgan coup. Key among them was the global pitchman who said his foreign investors said "BC? No way, not now" as soon as the NDP got in.

It's really scary to see that sentiment returning among both consumers and investors after a 16 year absence. Even I didn't think it would happen this quickly.

[Rwede]

The one percent Bank of Canada increase today my hit housing but likely will be easily absorbed by the rich foreign buyers. It's the Canadians who are going to be hurt the most, especially those who are overextended in the first place.

There was a one percent increase today?

[gman313]

The one percent Bank of Canada increase today my hit housing but likely will be easily absorbed by the rich foreign buyers. It's the Canadians who are going to be hurt the most, especially those who are overextended in the first place.

best check the math it was raised TO 1% not BY 1%

[The Green Barbarian]

Did the NDP increase the rates? NO, no they did not. So stop it right there.

Did they lobby for intervener status on the Trans Mountain pipeline because they want to kill jobs and economic investment? YES. So stop it right there defending these bumbling bozos.

[flamingfingers]

Ah, yes... Frank O'Brien is the editor of the Western Investor which is owned by Glacier Media, who has donated over $100,000 to the BCLP. The real estate industry funded the BC Liberal Party to the tune of about $12 MILLION!!!

Frank O'Brien
Frank O'Brien is the editor of Western Canada's biggest commercial real estate newspaper, Western Investor, as well as a contributing editor at West Coast Condominium, real estate contributor to Business in Vancouver and a regular media commentator on real estate investment.

Objective in his critique/opinion? Not very likely.

[Leifer]

I don't think anyone needs some opinion piece to see what is coming down the pipe under the NDG.
With all the same players in their roster from the dark days of the 90's....what different outcome can you expect??

NDP PLAYBOOK

- Business - Bad...bad people trying to screw the average working Joe while lining their pockets.

- Corporations - Bad....even more people trying to screw the average working Joe while lining their investors pockets.

- Resource Development - Bad....Literally raping mother earth and screwing the average working Joe while lining
their pockets.

- Balanced Budgets - Teribad!! - Money is made to be spent....we are not sure where it comes from....or how it is generated...

I hope I am wrong about all this.
Maybe we have a much more moderate NDP this time around?
One can hope.

[Retrosnap]

The next domino has fallen...

They sure are doing a lot without having recalled the legislature to test the confidence of the house.

Ain't hypocrisy wonderful?