March 8, 2010 – A report released today on Harmonized Sales Tax by public economic expert Jack Mintz states that the HST will have an unequivocal benefit for the province by attracting $11.5 billion in capital investment and creating 113,000 jobs by the end of the decade.

“This report is further evidence that the HST is essential for creating jobs and attracting new investment in British Columbia”, said John Winter, President and CEO of the BC Chamber of Commerce.  “The HST will further contribute to BC being one of the best investment climates in the world and make our businesses more competitive.”

The Mintz Report, commissioned by the Provincial Government, states that every industrial sector in British Columbia will benefit from the implementation of the HST.  Effective tax rates for businesses will decline by 30 percent, putting them below the G20 average.  The report estimates that the same tax rate for small businesses will drop by 60 percent.  With the introduction of HST, the tax burden on small business investment will be virtually eliminated by 2012.

“There has been much discussion about the increased prices facing consumers with the implementation of HST,” continued Winter.  “Making businesses more competitive, and eliminating the layers of imbedded PST on consumer products, will mean lower prices on a wide range of goods.  We saw this when the Atlantic Provinces adopted HST.  Savings passed on to consumers means that household incomes will have increased purchasing power, and that too will strengthen BC’s economy.”

Jack Mintz, a noted tax expert, states that by 2020 the combined effect of the corporate tax cuts and HST will be to increase capital stocks by more than $14 billion, which translates into an increase of 141,000 jobs.

For further details contact;

John Winter
President and CEO, BC Chamber of Commerce
W 604 638 8113
C 604.376.3577
E jwinter@bcchamber.org

Summary of the BC Mintz Report on HST – March 2010

Impending British Columbia tax reforms will create increased capital investment, jobs, and incomes in the province, and will make BC one of the most competitive economies in the world.

Small Business Marginal Effective Tax Rate (METR)

HST will reduce the METR on capital investment from 24.7% in 2009 to 11.5% in 2010, and 9.9%. By 2018.  By 2018, BC’s METR on capital will be lower than the current G20 average, and lower than all other provinces except the three HST Atlantic provinces.

Tax Rate Reduction

• The B.C. government reduced the general corporate income tax rate to 10.5% on 1 January 2010. This will be followed by a further 0.5% reduction 1 January 2011, and the elimination of corporation capital tax.  The effective tax rate on new investment will decline from 29.5% in 2009 to 17.9% in 2018, also below the 21.3% average of 20 major industrialized and emerging economies.
• By 2020, the combined effect of the corporate tax cuts and HST will be to increase the capital stock by more than $14 billion, which translates into an increase of 141,000 jobs.
• Small businesses will see their effective tax rate on new investment decline by almost three-fifths, from 24.7% to 9.9 %.  This will make British Columbia’s businesses much more competitive in export markets since costs of production will decline.
• The provincial tax burden for small businesses has already declined sharply from 19.1% in 2000 to 2.2% in 2010, and by 2012 the tax burden on small business investment will be virtually eliminated (Figure 6).

Sectors Affected
All industrial sectors in British Columbia will benefit from sales tax harmonization (Figure 5). The largest beneficiaries will be construction, communications, business, and household services sectors, which will see their effective tax rates on new investment drop by more than one third.

Competitiveness
Small businesses are intensive users of machinery and equipment in production. Figure 5 shows the sharp decline of METR on small business investment (from 24.7% in 2009 to 11.5% in 2010), primarily due to sales tax harmonization.  The competitiveness of the small business sector will benefit primarily from sales tax harmonization and the elimination of sales taxes on business inputs will more than halve small businesses’ tax burden on new investment.

Attracting Foreign Investment
Corporate income tax rate reductions enable governments to collect tax on a much larger base, reducing potential revenue loss.  With federal and provincial corporate tax rate reductions resulting in a combined corporate rate of 25% (down from 33% in 2009), multi-jurisdictional companies will be much more willing to shift profits into British Columbia, especially from foreign jurisdictions.

A lower tax burden for consumers
It has been suggested that British Columbia’s adoption of the HST will raise product prices for consumers, but this is far from clear.  Currently, the prices that consumers pay incorporate various hidden and embedded retail sales tax on business inputs that will be removed once the HST is implemented.  Prices fell in the Atlantic provinces that eliminated retail sales taxes on business inputs when they harmonized their sales taxes with the federal GST.  Savings passed on to consumers means that household incomes will have increased purchasing power.

Delta Chamber members invited to participate in an employers’ survey, click here: http://www.deltachamber.ca/wp-content/uploads/2010/03/Delta-Chamber-of-Commerce-Employer-Survey.doc

Contact:
Sandy McLeod
Program Coordinator
Delta Employment Skills
smcleod@deltasd.bc.ca
604-946-6926

Ottawa, March 4, 2010 – The Canadian Chamber of Commerce today welcomed the federal government’s strategy to achieve its recovery plan, to return to balanced budgets and to promote a more innovative and competitive economy.

“Business people throughout Canada are worried about the federal deficit. We’re glad that the government responded to the Canadian Chamber’s call for a commitment to balance the books, but they must now make it happen. The substantial spending increases of past years are clearly not sustainable and the Canadian Chamber will focus on ensuring that Ottawa reins in spending and improves efficiencies as the recovery takes hold,” said Canadian Chamber President and CEO Perrin Beatty.

The Canadian Chamber strongly believes that the government can balance its books over the medium term without increasing taxes. “In recent years we have made Canada a more attractive place to invest, innovate and create jobs by improving our international tax competitiveness. We cannot afford to erase this hard-earned progress,” said Beatty.

“With changing demographics and the need to sustain an aging population, the cost of government programs will be increasingly shouldered by a shrinking percentage of workers. We must get our fiscal house in order to gain the economic flexibility needed to prepare for the jobs of tomorrow and to adapt to future economic shocks. The government must not only recognize this pressing issue, but must also lay out a specific plan to address it” added Beatty.

The Canadian Chamber has long called for a digital economy strategy that encourages businesses to adopt e-commerce technologies. The recognition of the economic clout of our small and medium-sized businesses to innovate and the need to enable them to continue – even increase – their contribution by removing unnecessary, job-killing regulation is long overdue. Holding the line on direct and indirect tax increases and promoting innovation will help Canada compete on the world stage.

“The global economy rewards world leaders and punishes stragglers. It’s time for Canada to go for gold,” Beatty stated.

For further analysis by the Canadian Chamber of Commerce click here: http://www.deltachamber.ca/wp-content/uploads/2010/03/Budget_2010_Analysis_04-03-10_.pdf

March 2, 2010

The British Columbia Chamber of Commerce gave a cautious welcome to the provincial Budget unveiled by the Finance Minister today as being based on sound economic principles that present a responsible approach to difficult economic times by resisting irresponsible calls for unsustainable increases in public spending.

“Business will be pleased to see that there are no surprises either good or bad in Budget 2010. At a time when global economic recovery is far from secure, the government must be congratulated for presenting a fiscal plan that reins in public spending and gives the business community certainty that we will be moving back into surplus,” states John Winter, President and CEO of the BC Chamber of Commerce.

“With that said, the timeframe to return to balanced budgets is perhaps too cautious. While we welcome the government’s prudence, we will be looking to government to take a more aggressive approach to returning to balanced budgets sooner than 2014.”

Budget 2010 continues to focus on investing in municipal infrastructure while also providing measures to encourage growth in new sectors such as digital media, carbon trading, venture capital and clean energy development.

“Our members will continue to be concerned that even while we control spending in most areas, healthcare continues to demand unsustainable levels of funding with no plan for reform,” continues Winter. “This is exacerbated by the fact that we are now dedicating funding streams to healthcare. Our members have been clear, funding for healthcare must be tied to measurable outcomes, not a sense of entitlement.”

-30-

For the BC Chamber of Commerce facts and figures summary on the BC Budget Update 2010 click here: http://www.deltachamber.ca/wp-content/uploads/2010/03/2010-BC-Budget-Update-Facts-and-Figures.pdf

For further details contact:
John Winter
President and CEO, BC Chamber of Commerce
W 604 638 8113
C 604.376.3577
E jwinter@bcchamber.org

Sharkey’s Seafood Bar & Grille partner with the Delta Chamber of Commerce, inviting you to join us at the March AFTER 5 event! Come and enjoy some fun and make new business friends for 2010!

In 1873, a wharf was built on property donated by William Ladner. Farmers loaded their agricultural produce and livestock on steamboats for markets in Victoria, Nanaimo, New Westminster, and eventually Vancouver. The site became known as Ladner’s Landing, where a village grew up to serve the farmers and fishermen. We hope you enjoy the pioneer spirit at Sharkey’s, located on the spot where it all began since 1992.

In keeping with Article 5.1 of the Delta Chamber of Commerce by-laws, the Board of Directors gives notice of the 2010 Annual General Meeting on Thursday, March 25, 2010. All members are invited.

This event will include opportunities for business networking, lunch, as well as the Annual General Meeting. Non-members and members are welcome (only members vote during the AGM). Doors open at 11:30 a.m.

Annual General Meeting includes: Election & Installation of Directors, Chair’s Report.

For more information: http://www2.news.gov.bc.ca/news_releases_2009-2013/2010PREM0046-000210.htm

That’s the view of a panel representing business sectors in the local food chain, at a Delta Chamber of Commerce business networking lunch meeting on February 25. This special presentation recognizes the important role of agriculture and food production as a founding industry of the Delta Chamber of Commerce as it celebrates its 100th Anniversary.

Grower

The first panelist was Murray Driediger, who is President & CEO of BC Fresh. BC Fresh is a limited company wholly owned and operated by 32 produce farmers in Delta and the Lower Mainland, with warehouse and head office in Delta. Of the combined sales from 70,000 tons of root vegetables per year – enough to fill 3,000 semi-trailer trucks — 60 percent comes from farms in Delta, including, potatoes, rutabagas, carrots, turnips, cabbage, beets, squash, shallots and parsnips. Prior to BCfresh, Murray was President of the Golden Eagle Group of Companies in Pitt Meadows, an agri business consisting of 5000 acres and 9 divisions. He was also General Manager of the BC Vegetable Marketing Commission for 8-years where he provided analysis to the industry and handled inter-provincial and international trade issues.

View the BC Fresh presentation

Every dollar earned by farmers growing crops in British Columbia generates $7 to $9 in income for other British Columbians. Most retailers are very supportive. It’s mainly up to the consumer to drive retail space for local products and, in turn, drive a major part of our provincial economy through the food chain.

View a video clip

The consumer trend towards eating locally grown food is growing. The “100 Mile Diet” (eating food grown within a 100 mile radius of your community) is catching on, and global warming has increased consumer awareness about sustainability of our lifestyles.

While consumers and retailers alike may be moving in a positive direction in terms of local produce, land supply remains a big problem. While important to the economy of Delta, as well as BC and Canada, the expansion of Deltaport and the Tsawwassen First Nation treaty and the South Fraser Perimeter Road, now under construction, have taken hundreds of acres of land out of agricultural reserve and actual use. Another factor is the wealthy “martini farmer” as Mr. Driediger puts it: a farmland owner who considers the personal recreation value to be higher than that of keeping the land in production. Less land means less produce to feed us and fuel the economy. It also means higher and higher land costs.

Food Safety regulations, on top of all the other challenges, have become a tipping point that drives farmers off the land. All produce growers in the province are audited annually, many more than once. Potable water (fresh and uncontaminated) must be used in washing produce. In Delta the cost of potable water is 30 percent higher than it is just across the border in Point Roberts and more than five times the average in California.

View a video clip

Irrigation water supply has been a long term challenge for local farmers in Delta, but they have managed to negotiate a deal. In return for loss of land and other negative impacts on farmers, a new irrigation system is being developed through the provincial and federal Gateway Program which is building the South Fraser Perimeter Road. Irrigation is still a challenge on Westham Island, however.

View a video clip

Processor

The second panelist, Travis Drew, is Manager of the Lucerne Foods frozen fruit and vegetable processing plant in Abbotsford, BC. His facility receives fresh fruits and vegetables from growers throughout the lower Fraser Valley to Hope. The produce from local farms is cleaned and frozen, packaged into poly bags, cases, bulk totes, and drums, then distributed across North America to both retailers and the food services industry. The plant processes and packages 65 million pounds of produce annually.

View the BC Fresh presentation

Processing plants such as the Lucerne facility in Abbotsford, BC, connect growers to customers. Lucerne has been processing local produce since 1958. Thirty years ago there 11 other food processors in the area. Now there are two. That means there is less flexibility for the farmer, processor and retailer alike as supply from the farmer is negotiated in terms of demand from the retailer and ultimately the consumer to achieve fair market value. Farmers need to make a decent living, food processors and retailers need to make a profit and consumers deserve best value for quality food.

View a video clip

Delta, BC and area has many strengths as a growing region. It is located near local markets, but is also well situated for export to the United States and Asia. The weather along with good farmland are key factors. Canadian standards are high throughout the food chain leading to good quality as well as safe product. “Buy local” is also possible for a wide range of food.

View a video clip

On the supply side, the challenges for growers in Delta and other areas of the province include the reduction in land for farming, the price of land, global competition, food safety regulations, rising costs of various inputs and the availability of water for processing and irrigation.

On the demand side, consumer trends change over time. Consumers, and the retailers who serve them, want quality, convenience, new and innovate items, environmentally conscious products and companies and competitive prices.

View a video clip

In the middle are processors like Lucerne. They support growers in Delta and area through a good working relationship, a focus on quality of what they receive for processing and what they produce for distribution. They conduct research related to their production, purchasing, equipment and existing or new markets.

View a video clip

Retailer

Andy Carter is General Manager of the Thrifty Foods store in the Delta, BC community of Tsawwassen. He has been with Thrifty Foods for 15 years and prior to his current position he has been a retail manager at stores in Victoria and Campbell River. Earlier in his career he was a master baker who became owner and operator of a chain of both retail and wholesale outlets in the United Kingdom. The success of Thrifty Foods has been founded on good relationships with local growers and suppliers and a commitment to top-quality products, competitive pricing and outstanding customer service.

View the Thrifty Foods presentation

The Thrifty Foods philosophy of sourcing local and regional supply starts with closest to home geographically. It only looks further afield if key elements required by their customers are not satisfied.

In keeping with the “buy local” theme, Thriftys sources the highest grades of apples which return the grower the most money. It does not pursue the lowest price or grade. Local Thrifty stores also source the freshest, first dug yellow onions out of the Okanagan in May. Everywhere else the market is using old crop from the United States. For asparagus the company contracts with a grower in Creston, BC. For these kinds of growers, Thrifty becomes a key customer, making the grower’s property viable in making a living.

From potatoes to cucumbers, onions to peppers, and a wide range of berries, Thrifty does business with all the big growers such as BC Fresh, Houwelling Nurseries, Windset, Fraserland Organics, BC Hothouse, Villages and many more.

Buying locally also has the advantage of giving a personal touch when the produce staff are explaining the company’s buying practices to consumers. In the process consumers can become connected indirectly to the local farmland. Buy local also provides a viable and sustainable career for local farmers for the long term benefits to BC. Every dollar spent in BC goes around up to nine times, but every dollar spent on imported produce goes in once and then is lost to a foreign economy.

View a video clip

CONTACTS:

Peter Roaf

Executive Director

Delta Chamber of Commerce

6201 – 60th Avenue

Delta, BC

V4K 4E2

tel. 604-946-4232

fax 604-946-5285

www.deltachamber.ca

Murray Driediger

BCfresh

#201-7560 Vantage Way

Delta, BC

V4G 1H1

Phone: 604-946-3139

Toll Free: 1-800-699-6899

Fax: 604-946-2924

Toll Free: 1-800-881-6022

murray@bcfreshinc.com

www.bcfreshinc.com

Travis Drew

Manager- Lucerne Foods

1 604 854 1191

travis.drew@safeway.com

Andy Carter

Store Manager

Thrifty Foods

1207 56th Street

Delta, BC, V4L 2A6

ajcarter@thriftyfoods.com

(604) 948-9210

(C) (604) 345-7393

Event Sponsor

Cloverdale Cold Storage

Ian Cameron makes a presentation on Cloverdale Cold Storage Ltd. – sponsor of the February 25, 2010 Delta Chamber of Commerce luncheon panel presentation on Delta and area food chain – which operates a large cold storage facility in South Surrey and intends to double in size.

Powerpoint:

Cloverdale Cold Storage Ltd

View more presentations from DeltaChamber.

Economic downturns draw attention to labour market conditions that directly affect the economic well-being of Canadian workers and their families.

To provide a more complete understanding of the effect of the recession, this paper examines the performance of Canada’s labour market in 2009 (year-over-year changes in employment levels between December 2008 and December 2009) across a range of demographic categories, industries and regions.

It compares recent employment trends with past recessions, draws attention to the principal forces shaping the future workforce and focuses on initiatives that could help to ease the projected slowdown in the working-age population in the coming years.

For a copy of the paper click here: http://www.deltachamber.ca/wp-content/uploads/2010/02/Labour-Market220210.pdf

National News

• Government of Canada Takes Action to Strengthen Housing Financing
• Government of Canada supports employers and workers of the Asia-Pacific Gateway
• Canadian Entrepreneurs can Reignite their Business with a Long-term Plan
• Canada and United States Reach Agreement on Buy American

Government of Canada Takes Action to Strengthen Housing Financing

A number of measured steps to support the long-term stability of Canada’s housing market and continue to encourage home ownership for Canadians were announced: http://news.gc.ca/web/article-eng.do?crtr.sj1D=&mthd=tp&crtr.mnthndVl=&nid=512829&crtr.dpt1D=&crtr.tp1D=1&crtr.lc1D=&crtr.yrStrtVl=&crtr.kw=&crtr.dyStrtVl=&crtr.aud1D=&crtr.mnthStrtVl=&crtr.yrndVl=&crtr.dyndVl=

Government of Canada supports employers and workers of the Asia-Pacific Gateway

A new research project for the Asia-Pacific Gateway will help ensure that Canada has the best educated, most skilled and most flexible workforce in the world. The Asia-Pacific Gateway is vital to Canada’s future economic prosperity: http://news.gc.ca/web/article-eng.do?m=/index&nid=508009

Canadian Entrepreneurs can Reignite their Business with a Long-term Plan

The January edition of BDC’s eProfit$ newsletter aims to inspire entrepreneurs to gear up for growth:  http://news.gc.ca/web/article-eng.do?m=/index&nid=508199

Canada and United States Reach Agreement on Buy American

Canada and the United States have reached an agreement that would allow Canadian companies to participate in U.S. infrastructure projects financed under the American Recovery and Reinvestment Act (Recovery Act):  http://news.gc.ca/web/article-eng.do?crtr.sj1D=&mthd=tp&crtr.mnthndVl=&nid=510479&crtr.dpt1D=&crtr.tp1D=1&crtr.lc1D=&crtr.yrStrtVl=&crtr.kw=&crtr.dyStrtVl=&crtr.aud1D=&crtr.mnthStrtVl=&crtr.yrndVl=&crtr.dyndVl Read the BC Chamber news release: http://www.bcchamber.org/news/releases/buy_american_agreement_feb_2010.html