An economic recovery plan unveiled by the British Columbia government on Thursday amid the COVID-19 pandemic focuses on job training, business tax incentives and tourism.
The plan earmarks $417 million to support jobs and training, including $300 million to hire new health-care workers.
Premier John Horgan’s government has also announced funding for the tourism industry, food security, climate action, and technology and innovation.
About $100 million in infrastructure grants will be available for projects that are ready to begin and $300 million in grants for small- and medium-size businesses to help protect more than 200,000 jobs in hard-hit industries.
The tax incentives include a temporary 100 per cent PST rebate on select machinery and equipment for eligible businesses and a 15 per cent tax credit on eligible new payroll to encourage businesses to hire more workers.
The government says that as of August, almost 250,000 jobs have been restored, equal to 62 per cent of the total jobs lost due to the pandemic.
Breakdown of the $1.5 billion:
Summary of COVID-19 measure spending (Province of BC)
The first part of how the $1.5 billion is being allocated (Province of BC)
The second part of how the $1.5 billion is being allocated (Province of BC)
Horgan and Finance Minister Carole James said the entire economic recovery plan includes:
- Making health care better by hiring 7,000 new front-line health-care workers. This includes thousands of health-care aides to manage outbreaks in long-term care homes and 600 contact tracers to help stop further spread of COVID-19 in the community. The plan will also increase support for mental health care in the workplace and introduce a new Hospital at Home initiative that will allow patients to receive medical services in their own home from a team of health professionals.
- Creating jobs and opportunities by investing in targeted and short-term training in the skills people need to get work in high-demand fields, including for those who want to move into new, front-line health, child care and human-service positions. The plan will also expand Indigenous skills training and accelerate the creation of affordable child-care spaces so that more parents, particularly women, can get back to work. It includes investments of over $100 million to support tourism-related businesses and communities.
- Helping businesses grow and rehire with a 15 per cent refundable tax credit based on eligible new payroll. It will also introduce a small- and medium-sized business recovery grant to support approximately 15,000 hard-hit businesses while protecting as many as 200,000 jobs. Tourism operators will be eligible for a special top-up. The plan will also provide a temporary 100 per cent PST rebate on select machinery and equipment.
- Investing over $400 million to revitalize community infrastructure and support local governments to provide the valuable services people depend on. This includes $100 million in infrastructure grants for shovel-ready projects that will create jobs right away. The plan also earmarks over $1 billion in provincial and federal investments to help keep people moving, whether by transit, TransLink or BC Ferries. An additional $540 million in combined federal/ provincial funding will help B.C. communities address other local challenges impacted by COVID-19.
Horgan and James said the next steps in B.C.’s recovery plan builds on the progress it has made with new investments to support programs that will help expand CleanBC, reduce air pollution and tackle climate change while preparing for its impacts and creating new jobs.
Last week, James announced the province’s most recent financial numbers from April to June project an economic decline of 6.7 per cent for this year.
She said the budget is forecast to post a deficit of almost $13 billion for the 2020-21 fiscal year.
“When COVID-19 first hit, we acted quickly to keep people safe and support those in need,” James said Thursday.
“While we are now starting to see hopeful signs of recovery, we know many people are still struggling and there is a lot of work left to do. British Columbians are pulling together, and we’ll be there to support them every step of the way. Our province has a strong foundation to build a recovery that creates opportunities for all.”
B.C.’s total provincial response to the COVID-19 pandemic exceeds $8.25 billion, according to the provincial government.
“As British Columbians, we’ve been through a lot recently. We know our recovery won’t happen overnight, but by focusing on people and taking care of each other, we will ensure there are better days ahead for all of us,” Horgan said.
“The steps we are taking now will improve health care, get people back to work, support B.C. businesses and strengthen our neighbourhoods and communities.
The Opposition Liberals have accused the NDP government of being too slow in responding to the economic devastation of the pandemic, noting other provinces released their plans months ago.
The announcement comes as daily cases of COVID-19 surpass 100 and amid speculation that Horgan is considering calling an early election ahead of next fall’s fixed date.
However, Horgan said during Thursday’s press conference, he has not made a decision at this point whether to call a snap fall election.
Watch Premier John Horgan and Finance Minister Carole James on Sept. 17, 2020, below:
Read more details of the B.C. Economic Recovery Plan:
With files from The Canadian Press
CHEK News
