Budget 2020 gets a B- from GVBoT, applause from union for ICBC changes

VICTORIA (NEWS 1130) – A lack of economic vision is mostly the reason the 2020 Budget was given a B- by the Greater Vancouver Board of Trade, but investments in childcare and education are why the fiscal plan didn’t get a lower grade.

GVBoT President and CEO Bridgitte Anderson said there are concerns about the province’s  — and more specifically the Greater Vancouver region’s — economic advantage.

“Our members are telling us over and over again how concerned they are about attracting and retaining talent, and the increase in the personal income tax – that impacts professionals, and it’s professionals who grow the business, who contribute to the economy, and who hire staff,” she said on Tuesday.

She called the 2020 budget a “predictable, status quo budget.” Citing other concerns about new and pre-existing taxes, Anderson added there was hope the province would announce initiatives that would encourage investment in the local economy. “And we didn’t see that here,” she said.

However, while the GVBoT takes issue with taxing those who earn more than $220,000 close to an additional four more per cent, the B.C. Federation of Labour is applauding the change.

“I think the minister struck a strong balance between those that can pay a little bit more, and investing it in the infrastructure of people in British Columbia, and also in actual infrastructure, which creates jobs,” Laird Cronk, president of the federation said.

The revenue will help fund infrastructure improvements as well as services, B.C.’s finance minister said on Tuesday.

ICBC will take time, but things are moving, union says

ICBC-related news in this year’s budget wasn’t anything most people didn’t already know, but union MoveUp believes the province is on the right track when it comes to try and dousing the flames of the infamous dumpster fire.

“Certainly, what we’ve been saying all along, is that public auto insurance, when managed effectively, is a benefit for British Columbians,” David Black, president MoveUp, said. “We can see, now that the changes that have been announced are being forecast in the future, that drivers are actually going to be paying less, and getting more from ICBC.”

He said the union is happy to see “the playing field has been set,” but noted the work isn’t done yet.

Black told NEWS 1130 it’s now important to see if ICBC has the resources needed to deliver on promises.

Decreases to premiums aren’t expected until next spring – May 2021 – when, on average, drivers are expected to start saving about 20 per cent, or $400.

Black said while savings are still more than a year away, the silver lining here is there are no increases anticipated this year.

“Having no increase this year is a big victory for drivers, seeing them go down by 20 per cent next year is incredible when you look at what’s happening in other provinces with private auto insurance,” he explained, adding it will take some time to “climb out of the hole.”

“It’s actually remarkable that this province has gone from a $1 billion deficit, to almost breaking even this year, to a profit next year, and that’s good for all drivers in B.C.” he said.