Implementing the new era agenda

The current legislative session concludes on May 30, 2002, and resumes from October 7 to November 28th. As the BC government continues to implement its New Era agenda, over 100 pieces of legislation are expected. The ICABC has been monitoring the session for some key pieces of legislation.

New Company Act

As Beyond Numbers went to press, the Institute was anxiously awaiting the revised BC Company Act.

Last year, the ICABC recommended that the BC government harmonize its corporate legislation with the federal Canada Business Corporations Act (CBCA). There's been speculation that the new act would be modern and "investor-friendly," but not completely harmonized with federal legislation.

Harmonization is of particular interest to the profession since the CBCA replaced joint and several liability with a modified proportionate liability regime. The Institute has advocated a similar amendment to the BC legislation.

The Institute will review the new legislation when it's introduced in the house. It's been widely speculated that the government won't pass the legislation until the fall session so that stakeholders will have time to provide feedback.

Legislative Priorities

The government's Throne Speech was very clear about the kinds of legislation coming this session.

Changes are con-ung to the Employment Standards Act, the Workers' Compensation Act, and the Labour Relations Code. Measures will be introduced to boost investment and job creation in both the energy and mining sectors, and to provide more certainty over access rights to Crown lands for coal tenures.

The government is also going to release a white paper on reforms to the Forest Practices Code this spring, with the objective of tabling legislation this fall.

2002 BC Budget

The ICABC was represented at the 2002 BC Budget lock-up by 1st Vice-President Robin Elliott, FCA, 2nd Vice-President John Cowperthwaite, CA, and CEO Richard Rees, FCA.

A special thanks goes to J.S. (Woody) Hayes, FCA, for attending the budget lockup as a guest of CBC Radio. Hayes served as a technical advisor to the CBC and also went on air both before and after the budget to explain the details to listeners.

Overall, the 2002 budget received a mixed reaction from the province's business organizations. For the Institute, one of the few bright spots in the budget was an increase in the small business tax threshold from $200,000 to $300,000.

Rees pointed out that individuals and employers are facing higher MSP premiums and sales tax, and government services are being cut. Corporations are also hurting, and weaker profits from a global recession have resulted in a projected $741 million drop in corporate income tax revenues for the province in 2002/03.

The silver lining, as stated in an ICABC news release, was that the government had used fiscally conservative assumptions and risk management strategies in the budget, along with presenting three-year plans and incorporating a $750 million contingency fund to act as a cushion against unforeseen risks.

The Institute's news release on the budget is available in the media centre section of the ICABC website at www.ica.bc.ca.

2002 Alberta Budget

Alberta's bad news budget had some good news for BC. The Alberta government has slowed down its proposed business tax cuts. Alberta will now reduce the general rate to 11.5% by 2004, instead of 8%, and will increase the small business tax threshold to $400,000 effective April 1, 2003 (instead of this year).

While the Klein government still maintains it will reduce the general rate to 8%, no date has been set to do so.

Effective April 1, 2002, Alberta's general rate drops to 13.0%, the small business rate drops to 4.5%, and its small business tax threshold increases to $350,000.

Unlike Ontario, which legislated its business tax cuts, Alberta said it would only proceed if the tax cuts were affordable.

Free Electronic Newsletter Available to CAs: The CA Public Policy Review

The ICABC publishes the CA Public Policy Review ten times a year. The electronic newsletter provides an overview of recent public policy announcements and reports. CAs can subscribe to the newsletter at no cost by sending an email request to fitzsimm@ica.bc.ca.

Members are welcome to send the pdf-formatted newsletter to clients or colleagues, and/or post it on their own websites.

The CA Public Policy Review is also available on the ICABC website in both the Publications and Government Affairs sections.