nierest payments
consume economy

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grown by leaps and bounds,
In 1991-92, B.C.’s per capita
debt stood at $979. Ir has
since ballooned to $2,209, an
increase of 126%.

As a result of the increasi

lebt load, interest casts hay

tiscn noticeably. Interest pay-
ments oa the provincial debr
he: consume $2.7 billion of
provincial finances compared
to $1.7 billion when the NDP
assumed power.

The NIGP government's
record on taxes is equally dis-
mal. In B.C., Tax Freedom
Day fell on June 12 in 1992;
this year, provincial taxpayers
were sal paying tor govern-
ment until Junc 30. in fact,
the tax burden in B.C. is sec-
ond in size only to Quebec.

Ohne statistic gleaned from
The Fraser Institute's Fiscal
Performance Index, which
measures fiscal performance
across all of the U.S. states and
Canadian provinces, neady
captures the government’s
economic policy inadequacies:
In 1999, B.C. ranked 54 out
of 56 jurisdictions!

The onslaught of punitive
taxes and punishing regulation
has come at a price. For exam-
ple, since the NDP govern-
ment took office in 1991,
B.C.’s economic growth has
languished behind other
provinces. A majority of pri-
vate economic forecasters,
including Scotiabank and the
Toronto- Dominion Bank,

xpect B.C. to trail the rest of
‘nada in economic growth
for the next ovo years.

B.C. even holds the dubi-
ous honour of being con:
cred the worst investment cli-
mate in Canada. According to
a recent Fraser Institute survey
of senior investment managers,
while Ontario and Alberta top
the rankings with scores of 7.9
and 7.8, B.C. atrophies at the
bottom of the rankings with a
score of 3.1

Especially troubling for

C. however, is the success of
its neighbouring province,
Alberta. While B.C. languishes
between recession and stagna-
tion, Alberta has moved ahead
with solid annual economic
growth rates of benvcen ovo
and three percent.

The news on per capita
income is even worse.
According to Statistics
Canada, B.C.’s real per capita
income has decreased 0.4% per
year since 1991. This has
occurred while the rest of
Canada was experiencing a
1.5% increase, and Alberta
generated an average increase
of 2.7%. The employment pic-
ture is also quite disturbing.
B.C’s unemployment rate, at
8.6%, is significantly above the
national average (7.6%) and, in
particular, Alberta’s at only
5.6%.

Sadly, there isn’t a single
area of B.C. government cco-
nomic policy that one can
point to and claim success.
From the fiasco with the fer-

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ries, to the political sell-out
over saw mills, to the repeated
failures regarding balancing
the budget, the NDP govern-
ment has been a dismal failure.
Period.

Although we've painted a
prerty gloomy economic por-
trait, we remain optimistic.
Based on the recent experience
of other Canadian provinces,

lat a great idea to have my, mortgage,

Puiling pins

CELA Mansbridge (left) and Sara Frederking, two members of SC Hydro’s Power Smart youth team,
patrolled Lonsdale recently to strip hydro poles of nails, stapies and tacks used fo aiiach temporary
signs, The youth team aims to raise awareness tiiat these sharp objects are a major hazard to line crews.

most notably Alberta and
Ontario, the road to economic
renewal (and clectoral success)
is clearly paved. The series of
interconnected steps along this
road include reduced govern-
ment spending, lower taxes on
individuals and businesses,
eliminating handouts to both
business and political friends,
and a thrashing of the regula-

tory thicket that chokes
employment with red tape.
The critical question is
whether or not interim
Premier Dan Miller has the
political courage to make the
difficult decisions necessary to
return economic prosperity to
this province. In return, B.C.
taxpayers would be rewarded
with higher disposable income

and job seekers with greater
emplovment opportunities.

And the NDP, itself? Some
good economic news just
might improve those poll
numbers.

Jason Cleenens, Patrick
Basham, and Joel Emes are pol-
icy analysts at The Frasr
Institute, a Vancouver-based
economic rescarch organization.

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