Plan for prompt payment rules supports construction

The Chamber applauds a new agreement that will let builders build, and spend less time chasing wayward payments.

On Tuesday, the province announced legislation that will help contractors, subcontractors and workers get paid on time.

“We welcome this critical step toward payment certainty for B.C.’s construction industry,” BC Construction Association president Chris Atchison said. “It marks a new starting line that requires sustained collaboration between industry and government. Establishing fairness in how money flows means the industry can focus on building, not battling over payment. BCCA remains committed to continuing to work with the provincial government on this important issue.”

With housing supply a critical component for improving the cost of living in Greater Victoria and across BC, governments need to address all barriers facing contractors.

The prompt-payment legislation, once passed, will:

·     set clear timelines for payment on construction projects

·     establish a fast-track adjudication process to resolve payment-related disputes

·     improve cash flow and stability across the construction industry.

Ontario and Alberta already have prompt-payment laws, and industry groups in BC have supported bringing those rules here. The province said there will be a transition period to establish an adjudication authority and conduct outreach and education regarding rights and responsibilities under the new system.

Prompt-payment rules will apply broadly to both private- and public-sector projects in BC, including government contracts, unless specific exemptions are set out by regulation.

Chamber’s new advocacy focused on urgent action

You might have noticed some changes to how The Chamber is using our position as the unapologetic Voice of Business.

The series of messages, shown below, will start appearing more on Chamber social channels and in other media. The focus is on action. Businesses have had too many years of uncertainty caused by societal shifts and the growing burden of red tape. Our members and our Board of Directors have been clear that we need to speak up and call for change.

Our first focus is downtown Victoria and other central areas being devastated by a permissive attitude toward disorder and crime. People need to feel safe. That means all levels of government need to do their part — and do it with urgency.

We know what’s needed: consistent police and bylaw presence and enforcement, immediate options for people needing mental health and addiction care and changes to a legal system that currently allows repeat offenders to harm our communities.

Our other current priorities are more responsible spending by governments, and reduction in regulatory roadblocks that make building homes and providing services for families too expensive.

New SIPP report says Greater Victoria at a crossroads

A report released this week offers a path forward for a regional economy that is spinning its wheels in some sectors.

The South Island Prosperity Partnership offers a series of recommendations to overcome stagnation and reach our potential in Igniting Momentum, a 105-page report that came out of its Rising Economy Taskforce.

“The stakes are too high for business as usual in Greater Victoria,” the report concludes. “The evidence is clear: affordability pressures, productivity gaps, essential-worker shortages and external shocks are converging. But so are our advantages: world-class research, a thriving tech ecosystem, ocean and climate leadership, strong public anchors, entrepreneurial grit and a quality of life that draws talent from around the world.”

The Chamber helped contribute to the report’s findings, which align with much of the work the Chamber continues to do to attract investment and support our community.

“Greater Victoria is at a crossroads. Without bold, immediate action, we risk losing the talent, businesses and vibrancy that sustain our economy. Governments at all levels must do more to coordinate with the private sector to help ensure businesses can succeed,” Chamber CEO John Wilson said. “As BC’s second-largest metropolitan area, we can’t wait any longer. The Chamber promises to work with our members and partners across the region as the voice of business to address social challenges, increase access to skilled workers and grow our regional economy in ways guided by innovation, inclusion, and resilience. The time to act is now — to build a safer, stronger, and more prosperous Greater Victoria for everyone.”

Hospitality businesses urged to stock up on liquor

The BC Restaurant and Foodservices Association is advising its members to stock up on liquor inventories in the event the BCGEU strike targets BC Liquor Distribution Branch warehouses and stores.

“We advise you to immediately stock up on your liquor inventories. Based on multiple conversations and reliable intel, it’s very likely that the BCGEU strike action will target BC Liquor Distribution Branch warehouses and stores,” BCRFA President and CEO Ian Tostenson said in a statement. “If this happens, restaurants and bars will not be able to access product through normal channels.”

The Chamber works closely with the BCRFA and will call for changes to supply chain regulations to ensure this type of costly disruption can’t happen in future. The Chamber is currently working with the BCRFA on resolving concerns about the Temporary Foreign Worker program. The Chamber has called for regions of low unemployment such as Greater Victoria to be exempt from a nationwide pause on the program. A one-size-fits-all approach does not work. And current efforts to politicize immigration do a disservice to people who are new-to-Canada contributing to our workforce.

The Chamber will continue to advocate on behalf of members who need help finding and keeping workers.

Military pay raise a boost for region’s economy

Greater Victoria’s economic ties to Canada’s military go back more than a century. Today, our business community has a symbiotic relationship with CFB Esquimalt, home to more than 4,000 Canadian Armed Forces personnel.

“We know the base benefits our community in many ways, from purchasing goods and supplies from local businesses to providing thousands of jobs to local families,” Chamber CEO John Wilson said. “We support efforts to invest in our military and the recent news that CAF members will be better compensated will help a major local employer find and keep workers — an issue for a lot of organizations in our region.”

The funding will provide as much as a 20% pay raise for some sailors, and offer up to a $20,000 bonus for recruits who complete training. Canada’s military has been facing staffing challenges, and the last significant overhaul of CAF pay was in 1998.

Market for office space remains healthy across region

There has been an increase in vacant offices in Greater Victoria, largely driven by new spaces being reintroduced, according to the latest report from CBRE.

The report, Tenant preferences remain resilient against macroeconomic headwinds, noted that Downtown Victoria had zero vacancy for Class AA space for the fourth consecutive quarter.

“In the Downtown core, there is sustained interest from small tenants seeking spaces under 2,000 sq. ft., alongside notable activity from larger groups pursuing spaces exceeding 5,000 sq. ft.,” the report said. “Across all size categories, tenant preferences reflect a continued flight-to-quality, with many organizations prioritizing high-quality, long-term premises to support employee return-to-office strategies.”

The report noted that downtown social disorder is also a factor in where tenants are choosing to locate.

The West Shore is a popular choice for many, which is creating pressure on that area’s available supply. The report also said the market in Saanich is stable with demand coming from professional and personal service providers catering to the large suburban population.

Region’s unemployment up, but still lowest in Canada

Greater Victoria employers continue to face pressure from a tight labour market.

Our region’s unemployment rate rose slightly to 3.9% in June, up from 3.7% in May.

Greater Victoria’s employment rate was 65.2% in June. Those numbers compare to national rates of 6.9% unemployment and 60.9% employment.

Our region consistently has among the lowest unemployment rates in the country, and The Chamber has called on the federal government to grant our region an exemption on the restrictions imposed last year to the Temporary Foreign Worker program.

Finding and Keeping workers has been cited as a top advocacy priority by Chamber members for almost a decade. And while the latest numbers show access to labour continues to be an issue, the national numbers do offer optimism for businesses facing the uncertainty of an ongoing tradewar with the US.

“Canada’s labour market remains strong and resilient despite tariffs and counter-tariff measures. The market shows signs of marginal improvement across many parameters, a result of trade-partner diversification,” Canadian Chamber economist Anupriya Gangopadhyay said. “Employment rose to its new peak for the year, especially in the manufacturing sector after consecutive declines. At present it is hard to gauge exactly when or if at all the impact of tariffs will break this momentum. But this outcome may nudge the Bank of Canada to deliver fewer than the two rate cuts in the remaining half of the year, as expected earlier.”

 

Armed Forces funding good news for Greater Victoria

Last week, the Canadian Chamber took part in the federal government’s announcement that Canada is investing in rebuilding our Armed Forces. The move is expected to help the economy, especially in communities such as Greater Victoria that are home to significant Armed Forces infrastructure.

“Canada has a long and proud history of remarkable military and peacekeeping achievements around the world. From NORAD to Operation UNIFIER in Ukraine, to defeating forest fires here at home, Canada’s military personnel have stepped up and defended Canada and Canadian interests in extremely difficult and dangerous conditions,” Canadian Chamber CEO Candace Laing said. “The inclusion of cyber security and year-round Canadian presence in the Arctic as key features reflects the global reality we live in.”

While there was no specific mention of bases such as CFB Esquimalt, the government did promise to improve pay for Armed Forces personnel. More than 4,000 currently are based out of CFB Esquimalt.

Prime Minister Mark Carney said Canada will achieve NATO’s 2% this year — half a decade ahead of schedule – promising more than $9 billion invested in 2025-26.

“In addition to making Canadians and Canada safer amidst rising geopolitical uncertainty, these investments signify that we are serious about securing and protecting our trade relationships and the global supply chains that we play a pivotal role in,” Laing said. “As global threats evolve, so must we. The Canadian business community stands ready to support achieving this vital national mission.”

Feds expand summer job subsidy for students

The latest job numbers show that Greater Victoria, at 3.7%, continues to have one of the lowest unemployment rates in Canada. The average rate across the country for May was 7%. However, the rate for students ages 15 to 24 was 20.1%. It’s increased steadily each year from a low of 11.4% in May 2022.

To help, the federal government is reallocating $25 million from internal funds to subsidize an additional 6,000 summer jobs on top of the 70,000 already supported by the Canada Summer Jobs program.

“From now until July 21, young job seekers between the ages of 15 and 30 can find local job opportunities on the Job Bank website and mobile app,” a media release from Employment and Social Development Canada stated. “Youth can apply for summer jobs in fields that interest them, such as the recreation sector, the food industry and marketing and tourism. Jobs are also available in a variety of high-demand and growing fields, including housing construction and environmental protection.”

Greater Victoria real estate market ‘boring’ but stable

Home sales in Greater Victoria picked up in May, though the total is still slightly below the same month last year.

“Ample inventory coming to market outpaced brisk sales, which provided a consistent amount of choice and eased competition on high-demand properties,” Victoria Real Estate Board Board Chair Dirk VanderWal said in a media release. “More balanced market conditions were supported by stability both in prices and in interest rates. The May market was resilient, and that steady pace is a little boring to report on but has been much more comfortable for buyers and sellers to navigate than markets we’ve seen in past years.”

The benchmark value for a single family home in the Victoria Core was $1,326,600 in May, down from April’s value of $1,345,200. The benchmark value for a condominium in the same area was $564,100 in May, down from the April value of $566,300.