B.C. adds $660M to aid in recovery
NDP adding $300M recovery grant for small businesses
VICTORIA — B.C.’s NDP government unveiled its economic recovery plan Thursday, a mishmash of previously announced money, federal funds, health care spending and a handful of new programs designed to help small businesses survive this fall.
“Historic times call for a historic response,” said Premier John Horgan. “We have followed through on our commitments to protect people, their health and livelihoods going forward and we will continue to do so.
“Our recovery, of course, will not happen overnight. There is a long road ahead of us and it will require a constant opportunity to change and adapt to circumstances.”
But the announcement fell well short of the $680 million requested by B.C.’s ailing tourism sector, which has been hard hit by the ban on mass gatherings, cancellation of events and limits on travel. Instead, the plan promised a “task force” to examine how to improve the 2021 tourism year, $100 million in infrastructure grants for local governments, “targeted tourism development initiatives,” and top-ups to other programs that provide an additional $10,000 to eligible tourism small businesses.
The government plan earmarked roughly $660 million for business tax relief, including a 15 per cent credit on business payroll for employers who retain low-to-medium-income jobs from October to December, with additional incentives to hire more staff. The government estimated the money would benefit 60,000 employers and 80,000 jobs.
Businesses could also apply for a new provincial sales tax rebate if they buy machinery and equipment to expand operations, according to the plan. It could cost up to $470 million.
The recovery plan’s marquee item appeared to be a $300 million “recovery grant” for small and medium sized businesses. Grants up to $30,000 come with a host of conditions, including businesses showing at least a 50 per cent revenue loss and a “viable path forward” to continue operations.
The requirements for the “viable path forward” were not explained by officials Thursday, and will apparently be developed later. The government nonetheless estimated the grants would “protect more than 200,000 jobs provincewide” including many in the tourism sector with an additional $10,000 grant top-up.
Finance Minister Carole James said, to her knowledge, the criteria has been set and the money is available to flow to businesses very quickly.
Also in the plan was $300 million to create 7,000 new jobs in the health care sector, though it was not clear if that was money already announced by government earlier this month as part of targeted health care hiring.