BC’s Economy continues to enjoy overall growth, but faces some serious challenges
According to BC Stats, although BC’s economy expanded in 2007 by 3.1%, which puts it above the national average for the sixth year in a row, that positive figure masks some serious issues which will come to bear on the future of BC’s economy.
For the most part the indicators for 2007 were strong: the employment rate increased, unemployment rate fell to its lowest point in more than thirty years. Retail sales grew 7.2% and housing starts advanced 7.6%.
However, the truth is that BC’s economic growth is now being driven in large part by domestic demand, and the value of BC’s exports, both international and interprovincial, continues to decline. The result is a growing trade deficit as the province imports more and more goods and services internationally.
To compound this problem, while BC’s economy continues to grow, BC businesses are not investing as much as they should to create the necessary foundation for future economic growth. In 2007, only the Atlantic provinces invested less in new machinery & equipment than BC, and BC ranked fourth in the country in terms of investment in new structures.
These facts raise the concern that should BC not begin to pay more attention to its areas of economic weakness, the province’s economy will become seriously uneven – a handicap that will eventually begin to show itself in future growth potential
To read the full report, visit:
http://www.bcstats.gov.bc.ca/releases/info2008/in0823.pdf
Climate Action Dividend – a note from the Ministry of Small Business and Revenue
The Province will be providing a one-time dividend in the hope that British Columbians will purchase items that can reduce their greenhouse gas emissions and, by doing so, the amount of carbon tax they would otherwise pay.
This approach allows British Columbians to choose their own unique paths to a lower carbon lifestyle.
Starting in late June every eligible British Columbian will be receiving a $100 Climate Action Dividend, to help British Columbians move towards a lower carbon lifestyle.
The Ministry of Small Business and Revenue has received several questions around the process for receiving the dividend, and so would like to clear up any confusion.
The vast majority of you will receive the $100 dividend automatically:
- If you have filed a 2006 or 2007 income tax form, your $100 payment will automatically be mailed to you at the address on your income tax form.
- For the vast majority of parents, you will automatically receive payment for your children because they are registered for the Canada Child Tax Benefit. Parents are entitled to receive $100 dividend for each child, regardless of their income or the amount (if any) of Canada Child Tax Benefit they receive.
- If your child is not registered for the Canada Child Tax Benefit, visit the Canada Revenue Agency website at www.cra-arc.gc.ca/benefits or contact them directly at 1-800-387-1193 for more information to ensure you receive your payment automatically.
- If you did not file income taxes for 2006 or 2007 or if you will not be registering your children for the Canada Child Tax Benefit, you can apply for the $100 payment through the Ministry of Small Business and Revenue at www.sbr.gov.bc.ca/documents_library/forms/0131FILL.pdf
If you still have questions, please go to www.smartchoicesbc.ca, call toll-free at 1-877-387-3332 or email ITBTAXQuestions@gov.bc.ca.
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Ministry of Environment Announces Plans for the Protection of BC’s Air and Water
Early June saw the launch of two Ministry of Environment stewardship plans. Living Water Smart: British Columbia’s Water plan, “lays out the vision and steps needed to protect our rivers, lakes, streams and watersheds,” according to Environment Minister Barry Penner. The BC Air Action Plan also aims to protect: “As our economy continues to grow, keeping our air clean will be a challenge,” states Penner. “It will be up to us to ensure that our province continues to enjoy the healthiest air quality possible.”
Both plans draw on policy measures and programs including planning, regulatory change, education, economic instruments and rewards, and include between 30 and 40 actions and targets.
To read more:
Living Water Smart: http://www.livingwatersmart.ca/
BC Air Action Plan: http://www.bcairsmart.ca/
Port Mann Bridge Twinning receives Environmental Assessment Certificate, and the go-ahead
The provincial government’s Gateway Program made progress this month with the Ministry of Environment and Ministry of Community Services’ granting of a joint Federal and Provincial environmental assessment certificate for the Port Mann/Highway 1 Project.
With the receipt of this certificate, the project, which includes the construction of a second Port Mann bridge to run parallel to the first, the expansion of Highway 1, and improved safety measures for the highway, will be underway by the fall.
The environmental assessment certificate contains 233 commitments to which construction must adhere in order to remain within acceptable levels of environmental effects.
For more information regarding the joint Environmental Assessment: http://www.eao.gov.bc.ca/
Overtime Class Actions Unlikely in British Columbia
Recently there are many class action overtime claims being brought against major employers such as CIBC, the Bank of Nova Scotia, Canadian National Railway and KPMG, just to name a few. The claims are enormous with the potential liability running into the hundreds of millions of dollars.
The potential for similar class action lawsuits in British Columbia, based on the overtime provisions of the Employment Standards Act (“ESA”), became very real when the BC Supreme Court issued its decision in Macaraeg v. E Care Contact Centres Ltd. and a related decision. Those decisions held that employees could bring civil actions, including class actions, based solely on the overtime provisions of the ESA. Further, these decisions held that the claim was not limited to the six month limitation under the ESA; rather the overtime claims could go back for 6 years.
The BC Court of Appeal recently overturned these decisions.
In the Macaraeg case the employer employed approximately 100 employees. Ms. Macaraeg worked long hours but was told clearly that the company did not pay overtime. She brought a class action lawsuit claiming payment of overtime hours for herself and as the representative of the class of employees who worked but were not paid overtime. What was noteworthy was that Ms. Macaraeg’s claim was based solely on the overtime provisions of the ESA and not on any rights based in her employment agreement.
The Court of Appeal overturned this decision and held that the provisions of the ESA are not enforceable in court and that Ms. Macaraeg was not entitled to enforce her statutory right to overtime pay in a civil action. The exclusive jurisdiction to determine such claims lies with the Director of Employment Standards pursuant to the provisions of the ESA. Further, the Court held that, as a matter of law, the minimum overtime payment requirements of the ESA were not implied terms of the contract of employment between E Care and Ms. Macaraeg.
While the decision is good news for employers and businesses, care should be taken to ensure that any employment agreements or corporate policies that might be considered implied terms of an employment agreement are consistent with the employer’s practice. Employees may still bring actions for overtime pay if it is part of their employment agreement. Secondly, employers should ensure that their overtime and other employment policies are consistent with the minimum standards under the ESA.
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