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BC Chamber of Commerce
#1201, 750 West Pender Street
Vancouver, BC V6C 2T8

T 604.683.0700
F 604.683.0416
E bccc@bcchamber.org

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Advocacy & Policy

2010 - 2011 Policy & Positions Manual

<< back to Statements of Policy

Economic Development

The Chamber believes the Provincial Government should provide a positive environment to support the private enterprise system, and that the role of government in economic affairs should be limited to providing a framework within which businesses are encouraged to develop their full potential.

The role of the Chamber in economic affairs is:

  1. to encourage and support its members in the advancement of economic development in their communities;
  1. to assist members in gaining access to government, in supporting constructive government programs, and in opposing counter-productive programs;
  1. to foster educational programs which increase society's awareness that free enterprise and individual initiative are the keys to economic prosperity and social wellbeing; and
  1. to recommend and to support the introduction and implementation of government policies which facilitate economic development and efficiency.

Independent Business Development
For its own purpose, The Chamber defines an independent business as a firm which is owner-managed and/or operated by an entrepreneur and is generally not dominant in its field of endeavour.  The Chamber defines an entrepreneur as a person who takes the risk of profit or loss.
It is estimated that over 98% of the registered businesses in this province can be considered as small or medium-sized enterprises (fewer than 50 employees).  In terms of numbers, this represents in excess of 342,600 independently owned and operated firms.  Over 95% of businesses in BC employ fewer than 20 people, and 82% employ fewer than 5. No other province in Canada is as dependent as BC on independent business for its economic wellbeing. 

Home-based business is a very important aspect of the small business community.  It is estimated that one in four Canadian homes has some form of home business.  The growth in this area is astonishing as there were approximately 349,440 new home-based businesses in Canada in 1997.  This shows a significant shift in our economy.

There are three major areas of concern to the independent business community:

Financing
A major problem for small enterprises involves the identification and acquisition of public or private equity financing opportunities.  Present sources tend to restrict the flexibility of a firm.  Government financial assistance is generally distributed to specific sectors or regions.  The need for venture capital or early stage public financing is frequently a matter of survival.  At times, interest rates, keen competition for reasonable financing, restrictive contractual obligations and cumbersome securities regulations (although we understand the need for securities regulations, the current regime is ineffective), result in a narrowing of the competitive alternatives available to independent business management.

Adverse Impact of Government Policy Development Process
Too frequently, Governments at all levels make regulations pertaining to business without considering the total cost of compliance, or they initiate arbitrary changes to legislation without due consideration of the impact on the business community.  We do not deny the necessity for certain regulations; some demands on business made by government can be a deterrent to the establishment of new enterprises and the operation of existing enterprises.

The operation of government is a public activity.  Public policies ought to be shared with all members of the public who are the customers and owners of the Government.

Information sharing should be widely available and current.  This sharing on the internet is becoming a relatively efficient method of providing information. For example, the Provincial Government has published its regulations on its website.

Frequently, public policies, regulations and laws are created without notice to many affected parties.  If an agreed method of considering and introducing proposed changes to these items were struck so that affected parties could provide input at an early stage, public policies may gain greater public acceptance and government operations may become better managed.

The Chamber believes:

  1. that all governments strengthen their programs and review existing legislation and regulations pertaining to business, and eliminate those measures which result in an unnecessary cost to small business (and ultimately, the consumer);
  1. that all governments, after consulting with the business community, should take those steps necessary in order to implement the required improvements; and
  1. Government continue to provide ample notice of intention to modify its laws, regulations and policies, not just to interest groups, but to the public generally, as a matter of practice.

Taxation
The multiplicity of taxes, and administration thereof, which confronts businesses adds unnecessarily to the cost of doing business in a disproportionate ratio to some other jurisdictions.  They do this in a number of ways.  The first is through the direct costs of taxes, be they personal taxes meaning businesses in BC have to pay higher wages than their competitors to attract the talent, business taxes that go straight to the bottom line, or the proliferation of fees and licenses that businesses face in BC today. This problem will be compounded because the downloading of expenses to municipalities could lead to new fees and taxes.  A second cost is the indirect addition of administrative expenses.  The use of private business as a conduit to collect taxes from the consumer has generally been viewed by government as a politically expedient source of additional revenue. However, some of these administrative costs cannot be passed on to the consumer by business operators because of market forces.

The Chamber believes the Provincial Government should recognize that it is essential that BC industries' ability to compete in world markets not be impaired by undue or disproportionate business taxation, personal taxation or government imposed competitive handicaps which would contribute to significant increases in operating costs.  Such costs place all industries at a disadvantage relative to competitors in foreign countries and within Canada.