The federal government unveiled its 2023 Budget yesterday, offering mixed signals to the business community. The budget comes at a difficult time for economic forecasters. The pandemic is still affecting employers and businesses and global supply chains continue to face stress due to the Russian government's war on Ukraine. With stubbornly high inflation, many people are struggling with affordability and uncertainty about how they can grow their business.

Yesterday's budget committed the government to about $43 billion in new spending over six years, said Canadian Chamber Chief Economist Stephen Tapp.

"While there are many ways to break down these moves, I 'follow the money' to identify five big-ticket categories," Tapp said, pointing to $31 billion for health care, $16 billion for tax credits aimed at spurring investment in a clean economy, and about $25 billion for benefit cheques and other new spending. Tapp also noted that new taxes to high-earners will raise about $14 billion while spending cuts will save another $13 billion.

The Greater Victoria Chamber of Commerce has advocated for infrastructure projects in our region, including modernization of Belleville Terminal. It's not clear yet if there is money in this budget for that.

"On the one hand, The Chamber is a huge proponent of shifting to a green economy and the opportunities that represents for our members. This budget will offer encouragement to chamber members at the leading edge of this shift," Chamber CEO Bruce Williams said, adding that another positive highlight was a promise to lower credit card transaction fees for small businesses. The government says 90% of businesses that take credit cards will see fees go down by 27%.

Still to be determined is how government spending $2.5 billion on relief cheques for lower-income Canadians will affect inflation.

"On the one hand, businesses will be happy customers have a little more money to spend but will it mean costs keep going up? Time will tell," Williams said.

"The rising cost of doing business is a major concern. Food prices are up, and life is getting more expensive for everyone. Inflation is a problem and higher interest rates have increased the cost of borrowing money, which reduces business investment."

A report from RBC shows that Canada's stock of rental housing boomed in 2022, but demand is expected to grow even faster. "Without a significant boost in rental stock, Canada’s rental housing gap could exceed 120,000 by 2026—quadrupling the current deficit," the report says. "This will tip the housing market into a greater state of imbalance and drive the optimal vacancy rate of 3% even further out of reach."

New rental housing is being absorbed by our growing population faster than homes can be built. The report points to increased in-migration and a shift to rental accommodation because of the higher costs of home-ownership.

"The best way to meet current and future demand, as well as provide stability (and hopefully greater affordability) in the rental market is to considerably grow the supply of purpose-built rentals."

A report by the Chartered Professional Accountants of BC says that high interest rates are slowing investment in much needed new housing in the province.

"High interest rates are expected to stay and the significant decline in building permits issued across Greater Victoria indicates building investment may weaken significantly in 2023,” LL Brougham Inc. president Lindalee Brougham said in a new release. “Given how important these investments are in terms of providing additional housing and services, and spurring economic growth, it is more important than ever that we foster an environment that attracts more capital to our region.”

A total of 4,787 housing units began construction in Greater Victoria in 2022, down from 4,809 in 2021. Last year was still higher than the average for 2016 to 2020, which was 3,555 units per year.

“Last year, housing activity was strongest in larger developments with many units. And with the high cost of land here, there is a need for density,” noted

Brougham, a Chamber Governor, who served as board chair in 2007. “Another positive investment trend was a strong level of major project construction.”

The estimated value of Greater Victoria's major projects — those that cost more than $15 million — was $14 billion in Q3 2022, up from $13.9 billion in Q3 2021.

On April 1, the minimum wage is increasing for jobs regulated by the federal government. The new baseline for workers will be $16.65 per hour for industries such as international and interprovincial transportation, telecommunication and banking. In British Columbia, the minimum wage for all other employees is $15.65, and was last raised on June 1, 2022.

Building a more inclusive and diverse network of businesses will strengthen Canada’s economic resilience. On April 4-5, the federal Office of the Procurement Ombudsman hosts a virtual summit to raise awareness of the public and private sector programs that can help small businesses and businesses led by Indigenous Peoples, Black and racialized Canadians, women, Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, and additional sexually and gender diverse people (2SLGBTQI+) Canadians, persons with disabilities and other underrepresented groups access federal contracting opportunities.

Former Gov. Gen Adrienne Clarkson is the keynote speaker. Now in its fifth year, the summit teaches the practical skills needed to win federal contracts. It’s also a chance to build connections with people in government who can help your business. The two-day summit runs from 8 am to 1:30 pm, April 4-5.

Sponsored by: FortisBC

The Chambers of Commerce Group Insurance Plan is offering prescription medication delivery for all Chambers Plan members through PocketPills.

PocketPills is a proudly Canadian online pharmacy and technology company that provides free home delivery for prescription medications — often by the next business day. They also offer direct access to their team of pharmacists by text, live chat, phone or email. And their app allows individuals to manage not only their own prescription needs, but also those of family members.

Plan members are also eligible for an extra 10% drug co-insurance coverage on prescription drugs filled through PocketPills. Get more coverage for the same cost to you and your employees.

Looking for more information on how to use this new benefit? For more than 17 years, RDF Group Ltd has helped Greater Victoria Chamber of Commerce members design a Chambers of Commerce Group Insurance plan reflecting the size and requirements of their businesses.

For more information, contact Ryan at RDF Group

The model for retirement living has shifted to active living and keeping senior residents healthier than ever before.

In this Chamber Chat, CEO Bruce Williams speaks with Lesley Sikorski of Berwick Retirement Communities, one of the most innovative players in this sector.

Special thanks to our series sponsor: Island Savings

Members can post Coupons and Discounts free of charge here.