British Columbia’s business community is expressing concerns about the possible economic impact of the province’s political uncertainty.
The outcome of B.C.’s historically close provincial election remains unclear, pending recounts and the final count of absentee and mail-in ballots. But should those counts fail to change the election night results, the province would likely see an NDP minority government, reliant on support from the BC Green Party.
Business leaders argue that the outcome could create uncertainty, stall development and potentially discourage investment in the province.
“Uncertainty is never great for business,” said Laura Jones, president and CEO of the Business Council of B.C.
Jones said between $80 billion and $100 billion of investment decisions in the province are currently pending, and that business groups are concerned that capital could shift elsewhere.
“It’s going to go where it’s clear that things can proceed in a timely manner and where decisions can be made,” she said.
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“The big concern and the message from business and the electorate in this election is that affordability and a strong economy are top of mind. So that’s what I think people are waiting to hear from whoever may form the next government.”
While the province’s last minority government proved remarkably stable, lasting three years before former NDP premier John Horgan called an early election, minority rule has historically proven to be short-lived.
The BC NDP and BC Conservatives both appear to be interested in wooing the BC Greens for the support they would need to command the confidence of the B.C. legislature, an outcome some B.C. business groups also see as a red flag.
“The question is what is the Green Party going to be asking of David Eby, and what is David Eby going to be prepared to give to stay in power,” said Chris Gardner, president of the Independent Contractors and Businesses Association.
Gardner believes the Greens’ platform if enacted, would “unleash a frenzy of tax increases, spending, red tape and regulation.”
“All of that would not be conducive to growing and expanding our economy,” he argued.
“British Columbia’s economy is already under pressure. We have $100 billion of projects that are now coming to an end. We don’t have another $100 billion of projects in the pipeline ready to go.”
In his election night speech, Premier David Eby argued that voters had expressed broad support for left-of-centre ideals.
But Andrey Pavlov, an economics professor at SFU’s Beedie School of Business, said the tight margins in the house could force whoever forms government to moderate their positions.
“There is a silver lining. And the silver lining I think is no political platform really has a full mandate to proceed as they were planning, and I think that’s a healthy check on anyone running government,” he said.
The Greens, he said, have criticized “bloated bureaucracy and government waste,” which could have a positive influence on government policy.
While B.C.’s political uncertainty has rattled nerves in the business community, it is not the only factor at play.
The Bank of Canada is set to assess interest rates again on Wednesday, with a cut potentially helping ease concerns in jittery markets.
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