Michael Walker Fraser Institute Columnist HARRY Johnson was undoubtedly one of Canada’s greatest econ- omists. He wrote voluminously and well about thousands of economic topics. He died prematurely, just a few years after he had agrecd to be a founding member of the Fraser Instivute’s Editorial Advisory Board. He left many good thoughts, including, “Most things about economics are simple, the problem is to rec ognize simplicity when you sec it!” Something along these lines is presently true of the economic situation in British Columbia. Government poli- cy, not Asian Flu or the price of forest . Products, is laying waste to the econo- my of the province. As I pointed our; some months : a gO, the: tfect of B.C. government policies was. perfectly p . fctable’ Bi veatly as 1995. In published reports and a letter to the premier, we warned what-would happen to.the ¢ and why. The gov- _.ernment’s response was, well, consider che source” c 10 pi y, any attention. ¢ mining industry evaporated. So we “.. ‘siirveyed the mining industry © iid asked them to rank. the rer ther. particular issues A anes WILSON © BARRISTERS &s DUCITERS “Most things about economics are simple, the problem is to recognize simplicity when you see it.” ists forever disbelieved by Ni were deterring investment in the provinces and the territo- ries. We asked whether there were sufficient minerals, ve asked about the infrastruc- ture, about tax policy, labor regulations, land claims, pro- tected arcas strategy, environ- ment policy, imposed socio- economic agreements and general gov- ernment atti- tude toward the industry. We were inter- ested to sec how B.C. stacked up against the rest of the provinces. We also sought information about how Canada coni- pared to foreign opporcuni- ties. Putting together the assessments of the different jurisdictions gave a ranking. B.C. ranked last out of 12 — che worst in the country and the least likely to attract min- ing companies’ exploration budgets. That it was the " industry saying this and not the institute didn’t matter to Mr. Clark. In fact his response to the survey is not printable i in this newspaper. Then we thought we should get the upinions of minutes - FAST! ;of 10w30 Quekerstate Expires Sept 4/98 = policies not law. I will ge i ial award. “Another one of our designs. For Free Estimate call 922-4975 or 987-2966 . (Ask about our Seniors Discount) Labour $12.50 per panel unlined, $13.50 fined. Custom Rods, peg & Bedspreads the people who allocate the investment dollars flowing into all of the industries in the province. Perhaps the premicr would iisten if he thought money managers had a difficulty with our gov- ernment’s policies. We asked the investment managers of the pension funds and other large blocks of funds sotalling $200 bil- ion what they thought about the policies in the 10 provinces. Once again, B.C. came out dead last, with fully 49% saving they had a nega- tive attitude toward the province. Only three per cent indicated a positive outlook. This is a crucial finding. It says that the people who are dec iding where to allocate the investment capital in Canada have said that B.C. is not on. Is the premier willing to listen now? If he was you'd think he would with- draw the labor code changes he is proposing — changes which provide further evi- dence that both the mining sector and the investment managers are correct in their assessment of the govern- ment’s attitude. The Fraser Institute plans to release another study which attempts to provide a comparative rating of the provinces. This new measure- ment tries to calibrate the extent of economic freedom and ranks the governments accordingly. If you guessed that this fatest reading con- firms the impressions given by the mining and invest- ment manager surveys, you are correct, The economic freedom of the provinces measurement ALL EYEGLASSES. Sunday, August 23, 1998 - North Shore News — 7 uses 12 factors, including tax rates, spending and owner- ship of business by govern- ment, regulatory spending, interprovincial trade restric- tions, labor market regula- tion, and transfer and subsi- dization rates to rank the performance of the ditferent jurisdictions. What the study shows is that there have been large changes in the rates of economic freedom in the srovinces since 1981, B.C. had been showing a steady improvement in its perfor- mance until the latter days of the Vander Zalm govern- ment. Since then there has been a steady erosion in the absolute level of economic freedom in the province. While Alberta and Ontario vie for the top spat amongst the provinces, B.C. has slowly, deliberately, and Save $100 on any pair of prescription glasses from our entire selection. Includiiyg brand names. Simply purchase a complete pair of prescription glasses, including frames and lenses and you'll pay $100 less than you normally would. You won't see value fike this again soon, so hurry in today. SALE ENDS SUNDAY, SEPTEMBER I3TH! PEARLEVISION You won't believe your eyes! Eaton Centre Metrotown Coquiclam Centre Oakridge Centre Surrey Piace Mall Artanged 430-3126 464-1822 263-2514 582-6941 Sevenoaks Mail © West Broadway Willowb:ook Mail Park Royal South \p as a direct result of changes in policy, fallen to the sev- enth freest province. So you sec, in the sense that Harry Johnson noted, the reason for B.C.’s current economic decline is simple. It is the direct and pre- dictable consequence of B.C. government policies, which are in sharp contrast to most other provinces, The prob- len: is that the current gov- crument seems incapable of recognizing this simple fact. Or, perhaps even more disturbingly, they kaow the result of their policies but continue with them anyway. — Michael Walker is exec- utive director of the Vancouver-based Fraser Institusz. dhaniev@istar.ca ‘Timothy Renshaw is on vacation. Contact Lenses 853-8101 873-5234 530-908! 925-9515 Ereat Prices Cornplece pair purchase required. No other coupons, discounts, or frame and lens package pricing apply. Offer valid at participating locations through 9/13/98. .