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ICBA: Budget falls short in key investments

Wednesday, April 21, 2021

The economic devastation and dislocation of the COVID-19 pandemic reinforce how important it is for the B.C. government to make investments today in the infrastructure  needed to lock-in long-term prosperity, said the Independent Contractors and Businesses Association (ICBA) in response to BC Budget 2021.

Among the vital infrastructure projects left out of the budget were a replacement for the Taylor Bridge in northeast B.C., North Shore rapid transit, the Massey Tunnel replacement, the Brunette Highway 1 interchange, and the Quesnel Bypass.

“We need to get to yes on some of the most important infrastructure needs in B.C., projects that are key to the provincial economy,” said Chris Gardner, president of ICBA. “For example, the Taylor Bridge is 60 years old, in rapid decline, and a vital connection between the north and south Peace River regions. At a time when natural gas royalties from that area are booming and providing an important boost to the provincial economy, now is the time to re-invest in the region.”

The Massey Tunnel replacement was also pushed off another year, with no substantial money for construction in the budget. Four years ago, the province cancelled a replacement bridge that was tracking well under budget and would have opened in 2022; since then, Massey has been delayed again and again, forcing commuters south of the Fraser to navigate one of the worst traffic bottlenecks in Canada.

The importance of speeding up approvals of construction projects was highlighted earlier this year when the World Bank published its annual rankings of competitiveness. In the category of “dealing with construction permits”, Canada ranked number 64 in the world.

“We simply wait too long to pull the trigger and make the investments we need in the infrastructure to power our economy and improve our quality of life and, as a result, we continue to fall behind compared to other parts of the world,” said Gardner.

The construction industry accounts for nearly 10 per cent of the provincial economy. Last year, the industry weathered a 16 per cent drop in housing, along with drops in building permit values of 26.6 per cent for commercial and 22 per cent for industrial.

By far, the biggest issue in the construction industry is the shortage of construction workers. Taking into account people retiring and the demand for new workers, the construction industry in B.C. will need 60,000 more workers between now and 2030. The association noted the budget should have included major investments in trades training and for the expansion of trades and technical related programs and training institutes.

In addition, said the association, the government should have scrapped its community benefits agreements (CBAs) scheme and instead focused on maximizing value for every taxpayer dollar.

 

 

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