A provincial program to help businesses repair and prevent vandalism has been streamlined after consultation with business. The Securing Small Business Rebate Program started as a good idea but onerous rules prevented many businesses from accessing the $10.5 million in funding.
Updates to the application process are being made to:
The funding is intended to help offset some of the costs businesses are facing due to vandalism by offering $2,000 to help fix damage, and $1,000 for preventative measures to deter vandals. Canadians will find out next month whether the federal government is paying attention to the growing calls from business to improve our country's productivity, competitiveness and standard of living.
Federal Finance Minister and Deputy Prime Minister Chrystia Freeland announced today that Budget 2024 will be presented in the House of Commons on April 16. The Canadian Chamber submitted a list of recommendations during budget deliberations that came from business leaders across the country. Many of these are echoed by members of the Greater Victoria Chamber of Commerce. "We need economic growth to be driven by the private sector, and some of the changes that can be done on a federal level are simple — and cost effective — changes to red tape," Chamber CEO Bruce Williams said. "We know innovation is driven by business and it's time for government to focus on policies that encourage investment in the infrastructure needed to build a sustainable and resilient economy." Among the recommendations are to:
Payroll tax change welcomed, though questions remain about province’s fiscal path: Budget 20242/28/2024
Businesses with payrolls of up to $1 million will now qualify for an exemption from the Employer Health Tax, B.C. Finance Minister Katrine Conroy announced last Thursday during the unveiling of the 2024 provincial budget.
“Increasing the EHT exemption is welcome news for business. The experience in other provinces has shown we can expect an increase in productivity as employers have more room to increase wages and promote staff,” said Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, noting The Chamber has been calling for the change since the new tax was introduced in Budget 2018. Minister Conroy joined Chamber members the day after budget day to answer questions and highlight initiatives such as a new tax to deter home buyers from quickly reselling their properties, and a promise to cover the cost of one cycle of invitro-fertilization. Asked about efforts to improve public safety, Conroy noted the province has increased investment in mental health and addiction treatment programs. Business leaders were also concerned about rising debt with the budget including a record deficit. The provincial government is raising the minimum wage by 65 cents, effective June 1.
The increase means the lowest an employee can be paid is $17.40 per hour, up from $16.75. The rate reflects annual inflation in the province. "We know many Chamber members already pay more than the minimum, but inflating the base rate inevitably increases the wages of other employees, which adds further costs during a time of economic uncertainty," Chamber CEO Bruce Williams said. "Businesses are already working hard to find and keep good workers, and we understand that increasing wages is part of that. And while we appreciate that the government is giving businesses time to adjust and offering future certainty by tying the increase to inflation, we think there are better ways government can lower the cost of living to make our province more affordable." The shift to working from home that was sparked by pandemic restrictions is continuing to impact the commercial real estate sector.
CBRE's Canada Real Estate Market Outlook 2024 reports that office vacancy, at 8.7%, remains elevated in Greater Victoria due to turbulent conditions. In an interview with the Times Colonist, CBRE Ltd. Victoria Vice-President Ross Marshall said landlords are trying to be as accommodating and innovative as possible to keep clients and find new ones. Downtown spaces also face challenges from perceptions about parking and social distress in some areas, Marshall said. Greater Victoria has 9.37 million square feet of offices, with rent for Class A spaces going for $27.25 per square foot. "The completion of strata developments in the Westshore will relieve some of the industrial shortage in Greater Victoria and is currently just over 65% pre-sold," the report states. "Inventory levels still remain heavily undersupplied outside the Westshore. Asking rates are projected to stabilize around mid-2024 after tenants fully occupy investor-purchased strata units and the availability rate normalizes." The future of BC Ferries is easier to visualize, now that concept drawings of proposed new vessels have been released. Up to seven of the new ships are expected to be ready for service in 2029.
On Monday, BC Ferries issued a Request for Supplier Qualification for its New Major Vessels program, with the aim of issuing a Request for Proposals this summer. The new vessels will carry up to 360 standard sized vehicles and 2,100 people, and will replace vessels currently operating between Vancouver Island and Metro Vancouver. Those ships have a capacity of 250-310 vehicles and 1,200-1,500 people. “These vessels — greener, more efficient and standardized — represent the future of ferry travel in our province," BC Ferries’ President and CEO Nicolas Jimenez said. "They will significantly increase daily capacity, provide an enhanced customer experience, improve reliability and reduce environmental impacts.” The basic design is being developed in collaboration with LMG Marin AS, and will have engines capable of using bio- and renewable fuels, as well as a battery-hybrid propulsion system that can be converted to full battery-electric operation once shore-based recharging infrastructure becomes available. The seemingly endless not-great news about inflation and interest rates took a pleasant turn this week. On Tuesday, Statistics Canada revealed that the Consumer Price Index rose 2.9% in January.
That's lower than economists expected, and within the target range that the Bank of Canada uses to indicate a balanced economy. As a comparison, inflation was 3.4% in December. "Inflation is now in the target range, which is good news for the Bank of Canada. But the Bank is also acutely aware of the stickiness of core measures and the impact of elevated shelter prices," Canadian Chamber Senior Economist Andrew DiCapua said. However, despite the surprise drop in inflation, the Bank is still expected to hold its interest rate at 5% until late spring. "The unexpectedly large declines in airline fares and clothing prices may be a sign of weakness in consumer spending, but could also partly reflect some data volatility," stated an Economics Report from CIBC. "However, even allowing for a partial rebound, inflation in Q1 is still tracking below the Bank of Canada's MPR forecast (2.9% vs 3.2%). So even with GDP growth running somewhat stronger than they expected, we still anticipate that interest rate cuts will start in June." Indigenous knowledge is an invaluable resource for our region, especially when it comes to improving environmental sustainability.
"Innovation led by business is key to effective Climate Action Leadership, and investing in Nations that are doing the work to improve their communities is the right thing to do," Chamber CEO Bruce Williams said. The province's First Nations Clean Energy Business Fund is providing three communities on the South Island with more than $792,000. T’Sou-ke Nation will receive $492,910 to build and install a solar photovoltaic system, and Malahat Nation will get $149,646 to install heat pumps in priority homes as well as to conduct a band office energy assessment and a rooftop solar photovoltaic system screening. Pacheedaht First Nation is getting $149,961 to help install surge protectors and improve insulation. The next intake for the FNCEBF program closes April 30. Construction has started on 66 below-market homes on Songhees Nation land.
Residents will pay no more than 30% of their income on rent in the six-storey apartment building, which will have studio, one- and two-bedroom homes. “This project symbolizes our unwavering commitment to providing safe and secure housing for all our members,” Songhees Nation Chief Ron Sam said in a news release. “We are excited to declare that this initiative represents merely the first step in a comprehensive plan aimed at ensuring the well-being and prosperity of our people.” The Songhees Nation contributed land valued at $2.8 million, while the Capital Regional District worked with BC Housing, which is providing $10 million, and the Canada Mortgage and Housing Corporation, which is chipping in $9.9 million. The building is expected to be completed in early 2025. Aryze Developments, the builder, is contributing $525,000 of in-kind design services. “The project at 1502 Admirals Rd. represents a true, layered partnership, where the private sector has teamed up with four distinct governments — Songhees, regional, provincial and federal — to deliver much-needed housing for community members," Aryze principal Luke Mari said. "This building is the epitome of rapid housing, from funding to construction in less than a year. On behalf of our team and our dedicated trade partners, we are honoured to be supporting Songhees Nation in this important, Indigenous-led housing solution.” On Friday, federal government representatives were in Victoria to announce agreements that will fast-track more than 900 homes on Vancouver Island over the next three years, with a promise of more than 16,000 homes over the next decade.
The $4 billion Housing Accelerator Fund, launched last March, will provide $33.5 million to Island municipalities, with the City of Victoria receiving almost $18 million for its Action Plan. “It takes collaboration and creativity to address the housing shortfall in our communities," Victoria Mayor Marianne Alto said in the news release. "This federal support empowers the City of Victoria to continue transforming our local housing policies and zoning processes to inspire and accelerate the development of diverse, innovative, affordable housing." Housing supply touches on almost every Chamber advocacy priority, including finding and keeping workers, safe communities and business growth and adaption. The Chamber has kept a watchful eye on the promise of better governance from fewer governments in our region. We're pleased to see the City of Victoria and the District of Saanich have taken the next step to explore the pros and cons of merging municipalities. A Toronto-based agency has been hired to create a Citizens' Assembly, and has launched a new website at victoriasaanich.ca. The website highlights the following steps:
Pictured above: Jaime Clifton-Ross, left, and Taryn Malcolm, right, from the Victoria Foundation bookend Chamber staffers Hanna Bohm, Julia Banks and Summer Sandhu after dropping off cookies at the Chamber office.
The gesture was part of Random Acts of Kindness Week, Feb. 12-17, which asks people to "do something nice for someone and ask for nothing in return," other than to perform another act of kindness to someone else. Today is also Valentine's Day, so The Chamber sends our love to our members and all of Greater Victoria's business community. Make sure to celebrate with your valentine and enjoy flowers, chocolates or a dinner out! This weekend is also Family Day so another great opportunity to support your fellow Chamber members, whether that's sharing a meal, enjoying our region's parks and rec centres or simply spending time together with family. The Chamber office is closed Monday, Feb. 19. Housing supply is a keystone issue. It affects almost all other Chamber advocacy priorities, so we're pleased with yesterday's announcement of the BC Builds program. The goal of speeding up construction of more homes for middle-income earners is vital for ensuring we have the skilled workforce needed by employers.
It's too soon to know all the details of BC Builds, which the province says will leverage land owned by government, municipalities or non-profits along with $2 billion in low-cost financing and a commitment of $950 million for the overall program. The Chamber has called on all levels of government to look at solutions used in other jurisdictions around the world, including Vienna, Austria. BC Builds appears to do just that — though some municipal leaders are already pointing out gaps in infrastructure that need to be addressed. The executive lead for BC Builds, former Victoria mayor Lisa Helps, told Business in Vancouver the program will allow construction to continue on rental homes at a time it is being slowed by other forces. “BC Builds is not an affordable housing program, it's not supportive housing, it's not subsidized housing. It's really meant to close the gap above where BC Housing programs end and where we … start to really see a slowdown in rental development if there isn't an intervention,” Helps said. BC Builds at a glance: > At least 20% of all BC Builds homes will have rents at least 20% below market rate for projects in partnership with non-profits and First Nations. > All BC Builds units have a target of middle-income households spending no more than approximately 30% of their income on rent. > The rents for BC Builds will not exceed market rent for that community, and will in many cases be below. > All households living in BC Builds homes are income tested at move-in. > The income levels vary by community, so homes are within reach for that community’s middle-income households. > BC Builds projects aim to deliver more two-, three- and four-bedroom homes, as many as possible with below-market rents. > Projects owned and operated by non-profit providers mean rents will remain low over time, creating more affordability. The board of directors of the Royal BC Museum announced today that Tracey Drake has been officially appointed CEO of the Royal BC Museum, effective March 1. “Based on Tracey’s exceptional progress, we are removing the 'acting' from her title,” RBCM Board Chair Leslie Brown said. “It has become clear to the board, as well as those working closely with Tracey, that she continues to be the leader to guide the museum and add stability and vision for what is an exciting time of growth, along with important community and province-wide consultation." As CEO, Drake oversees Royal BC Museum operations, BC Archives, and IMAX, as well as province-wide community engagement, repatriation and DRIPA implementation as well as the archives, research and collections building project in Colwood. Last month, the Royal BC Museum announced a diverse slate of feature exhibitions for 2024, including Stonehenge, Canadian Modern and Wildlife Photographer of the Year. Watch the recent Chamber Chat with the RBCM's Tracey Drake
Next week, Chamber members will be among the first to learn about the 2024 provincial budget and hear directly from BC's Finance Minister. The Speech from the Throne is set for Feb. 20, followed by Budget Day on Feb. 22 and the Finance Minister lunch with the Greater Victoria Chamber of Commerce on Feb. 23, sponsored by Coastal Community Credit Union. "As the oldest Chamber in Western Canada, we have a long tradition of connecting government with the private sector," Chamber CEO Bruce Williams said. "That includes the tradition of being the first chamber to host the finance minister after the provincial budget is unveiled. We're thrilled Minister Conroy will join us, once again, and I look forward to seeing many of our members at the Hotel Grand Pacific." Cyber-security will only become more important to businesses as economic activity shifts online. Even traditional storefronts embraced digital sales during pandemic lockdowns, and many are continuing or expanding their services to meet consumer expectations. With that shift, The Chamber recognizes that cyber-security is fundamental to our advocacy for safe communities. On Monday, our national chamber network addressed the House of Commons Standing Committee on Public Safety and National Security to speak to Bill C-26. Canadian Chamber senior director Ulrike Bahr-Gedalia said more than 98% of Canadian businesses are small- or medium-sized enterprises, and need greater awareness and protection from cyber-security threats. She advocated for a prevention-first approach, calling for clear rules to ensure incidents are reported appropriately as well as better communication by the government so businesses can prevent incidents before they happen. There's reason for optimism in Greater Victoria's real estate sector, as a sense of stability is returning after what felt like truly turbulent times.
"Mortgage rates have levelled out, inventory is slowly creeping back up, and we are no longer in that highly pressurized market of recent years which created complicated and sometimes stressful conditions for buyers and sellers," Victoria Real Estate Board Chair Laurie Lidstone said in the organization's latest news release. "If balanced conditions continue, buyers and sellers will have more time to make decisions and there will be less pressure on pricing. Of course, there are many factors that impact the market here in Victoria, and, as we've seen in the past, things can change very rapidly." The real estate board had 2,140 active listings for sale at the end of January, a 23.1% increase from 12 months ago. The benchmark value for a single family home in January was about $1.24 million, down from December's value of $1.27 million. The benchmark value for a condominium in the Victoria Core in January was $559,000, down from the December value of $562,000. Understanding economic trends is invaluable to helping businesses plan for the future. The Chamber relies on a number of sources for information and analysis, including our national network.
On Tuesday, Canadian Chamber Chief Economist Stephen Tapp provided members of The Chamber's Public Policy and Advocacy Committee with his insights. "We're fortunate to have access to a deep pool of experts who help us make effective use of our advocacy efforts," Chamber CEO Bruce Williams said. "The Greater Victoria Chamber of Commerce has a long history as Western Canada's first chamber and we continue to play an active role with the Canadian Chamber." Tapp spoke about the state of the economy and expectations for interest rate cuts, using the latest numbers from the Business Data Lab. Click the image to view Tapp's presentation. For information on joining a Chamber committee, go to victoriachamber.ca/committees for contact info. Canada is a trading nation, and many businesses in Greater Victoria provide goods and services to an international customer base. Building connections across borders is vital to helping business operate as smoothly as possible.
On Monday, the Chamber welcomed Vancouver-based US Consulate General Jim DeHart to Victoria. "I've spoken with Mr. DeHart during trade missions in the past and he's always expressed an interest in learning more about Greater Victoria and Vancouver Island," Chamber CEO Bruce WIlliams said. "I'm glad we were able to host him for a roundtable with some of our region's business leaders for a discussion on trade and cross-border relations." Topics covered an array of interests, including labour force mobility, credential recognition and ongoing efforts to streamline regulations. Investing in celebrations of sports, arts, culture and farming helps build great communities. The economic return also benefits many tourism and hospitality businesses — a sector that is still recovering from the pandemic and the current slowdown in consumer spending.
The Chamber continues to be a vocal advocate for this sector, and we applaud this morning's news that the BC Fairs, Festivals and Events fund is being extended. “The BCFFE program single-handedly saved our business and that of many of our colleagues here in BC," 17 Black Events executive director Scott Gurney said. "The program has also ensured that businesses within BC’s live event ecosystem, like specialty service providers, suppliers and rental companies, have been able to survive, too. The impact of this program reaches far and wide with its economic outcomes, but more importantly, from a social point of view, it has ensured that British Columbians have continued access to arts, culture and live events.” Events between April 1, 2024, and Sept. 30, 2025, are eligible for funding to cover expenses ranging from operational costs, Indigenous consultation and honorariums, to venue rental, marketing, wages and promotion. Applications are being accepted until 11:59 pm, Feb. 25. Organizations are encouraged to submit their applications as soon as possible. “We are extremely grateful for the past two years of BCFFE funding," Rifflandia Entertainment Company president and CEO Nick Blasco said. "Suffice to say, the program has been essential to the growth and future of our festival and so many others throughout the province.” The Secondary Suites Incentive Program, introduced to all BC municipalities last fall, is being expanded to 16 regional districts, including the Capital Regional District.
“We’re using innovative solutions to make it easier for homeowners and communities to build homes faster, so people can live and work in the communities they love,” BC Minister of Housing Ravi Kahlon said in a news release. The three-year pilot SSIP will provide about 3,000 homeowners with forgivable loans for as much as $40,000 to create a new secondary suite or an accessory dwelling unit on their property. To qualify, the units must be rented below market rates for at least five years. In a separate news release, Kahlon also announced that the province issued a request for proposals that could lead to BC adopting an innovative housing solution used in places such as Seattle and New York City. A common practice in Europe, the solution involves allowing single staircases in residential buildings by updating an 80-year-old rule in BC's building code that currently requires two stairwells. The change would allow for larger apartments with more daylight, cross breezes and greenspaces. "The Chamber encourages all levels of government to embrace innovations that allow builders to provide the housing supply we need," Chamber CEO Bruce Williams said. "Looking at how other places in the world have solved the same issue we face makes sense." The Chamber is following up on concerns expressed by local post-secondaries facing a serious and unanticipated financial burden from the surprise federal announcement to cap the international student program.
Yesterday, the organization representing Canadian schools sent a joint letter to federal Immigration Minister Marc Miller. "We urge your department not to impose the letter of attestation requirement for college and undergraduate study permit applications until at least March 31 or until the provinces establish an effective process," the letter from Universities Canada and Colleges and Institutes Canada stated. "Additionally, we request urgent consultations with the sector to modify the cap policy, clarify the many outstanding questions and mitigate the negative impacts." On Monday, BC announced new regulations that will constrict the number of international students in the province. Of BC's 545,000 post-secondary students, 175,000 are from 150 countries other than Canada. "After speaking with our members impacted by these changes, The Chamber is concerned that this policy is being presented as a solution to the housing crisis when it will significantly reduce revenue needed by schools," Chamber CEO Bruce Williams said. "A better solution is to invest in more on-campus housing so that schools continue to provide the workforce our economy needs, while creating a pathway for foreign students to become taxpaying new Canadians." British Columbia's population is expected to reach 7.9 million by 2046, with Greater Victoria accounting for 655,000 people. Overall, the province is getting older than the rest of Canada, with a lower fertility rate, according to a BC Stats report released yesterday.
BC's current population is 5.58 million, with about 450,000 living in the Capital Regional District. The province's annual growth rate of 3.3% is the highest since 1972. The growth is from historic levels of international immigration as 66,190 people from outside Canada settled in BC. However, the province also experienced a net loss in people migrating within Canada as 4,634 more people left for other provinces than moved here. A new report offers insight into how shifting consumer behaviours are changing the way small businesses operate post pandemic.
On Monday, the Canadian Chamber of Commerce’s Business Data Lab released A Portrait of Small Business in Canada: Adaption, Agility, All At Once. The findings shed light on how businesses can thrive despite the rising cost of doing business, the highest borrowing costs in over two decades and the increased pandemic debt loads. Examples for businesses include investing in technology, staying agile to embrace shifting trends and working with their chamber to call for less red tape from government. The report also explores the unique realities, challenges and opportunities for small businesses owned by women, persons with disabilities, members of the LGBTQ2s+ community, immigrants to Canada, Indigenous peoples and visible minorities. Fentanyl abuse is wreaking havoc in many cities, including Greater Victoria. The Chamber advocates for safe communities for all, though there is no simple solution to addiction and the health challenges that are at the root of the issue.
Earlier today, BC's Minister of Mental Health and Addictions issued a statement marking the one-year anniversary of drug decriminalization in BC. “This past year has seen a concerning increase in toxic drug deaths in provinces across the country, and British Columbia was no exception. Ending this measure will not save a single life. As the toxicity of illicit street drugs continues to increase, more people are at serious risk. There is no single solution to this complex and unrelenting public-health emergency, and we will continue to use every tool available to save lives and connect people to care," Minister Jennifer Whiteside said, promising to invest in early intervention and prevention services, expanded access to harm-reduction supports, increased medication-assisted treatments, and expanded treatment and recovery services. The statement comes in the wake of recent comments by former Chief Coroner Lisa Lapointe, who criticized the government for not providing better access to help while making the case for an ongoing pragmatic approach to decriminalization. Lapointe spoke with CBC Radio about her experience and what she believes is needed to address this crisis. The Chamber continues to call for better access to treatment and care, and applauds the recent funding for Our Place Society's New Roads Recovery Community Centre. The province is providing $9 million to fund 20 beds for women to try and replicate the success the men's program has had at the View Royal facility. |
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