ENSURING GOVERNMENT INITIATIVES PRODUCE RESULTS (2006)

The Province has undertaken two key initiatives to reduce regulatory burdens and high costs for small business to operate in British Columbia. These are:

• The Small Business Roundtable
• The Provincial Sales Tax Review

Businesses and individuals had the opportunity to make submissions in person, on line or via fax until the end of May 2006. The Ministry of Small Business and Revenue plans to present its recommendations to the Ministry of Finance by early September, 2006.

The Chamber welcomes these initiatives as important to business across the province and welcomes the fact that the Hon. Rick Thorpe, Minister for Small Business and Revenue, and Minister Responsible for Regulatory Reform himself is the Chairperson for both of these groups.

The meetings across the Province have commenced with the sessions on the Small Business Roundtable followed by a session on the PST Review. A long list of opportunities is being created as this group hears from local business representatives throughout the Province. Two consistent themes that have been raised at all of the meetings include:

a. Simplify and/or reduce the burden of the PST so that small business can have a more competitive edge with jurisdictions that do not have PST.
b. Work with industry to address the shortage of skilled workers, especially in the trades.

Both of the above issues require a significant amount of work in order to obtain results that will create a win-win situation for both business and government. To accomplish this it is important that these processes are as open as possible to encourage dialogue on how we can move forward.

THE CHAMBER RECOMMENDS

That the Provincial Government;

1. publish all presentations and recommendations to both the Small Business Roundtable and the PST Review Panel;

2. remove the limitation on the PST review that calls for all recommendations to be revenue neutral;

3. where it can be established that a specific business sector is losing business or has a distinct competitive disadvantage due to lack of an exemption for Out-of-Province visitors, the Province of British Columbia consider a PST exemption with conditions attached;

4. look seriously at all submissions to the PST Review with a view to make some changes that will positively affect business and maintain a competitive edge with jurisdictions where there is no PST; and

5. work with business to break away from traditional thinking around revenues generated through taxation and come up with some creative solutions to the issues presented. It is our opinion that the benefits to be gained will far outweigh any revenue losses that may be anticipated by the Ministry of Finance.