Finance minister Colin Hansen released British Columbia's First Quarterly Report showing a steep drop in government revenues from the forest industry, but an unexpected large increase to the overall projected surplus.
“The downturn we are seeing in the forest sector is unprecedented,” said Hansen.
Revenue from the sector is expected to drop 36 percent this year, “reflecting reduced stumpage rates and Crown harvest volumes,” the report said. It blamed the mountain pine beetle infestation, a weak U.S. housing market and the high Canadian dollar.
Hansen could not say when the last time was that harvest levels were so low. “Since 1993 it has never even come close to being that low.”
Government revenue from the sector is now forecast at $690 million for 2008-2009. That's down from $1.36 billion in 2004-2005 and is $262 million less than what was predicted in the February budget.
“The industry is in a tail spin,” said NDP finance critic Bruce Ralston. “The minister acknowledged some of the indicators are the worst they've been in a long long time His only response there is to push out a possible recovery to 2012. His response to people in B.C. is wait and see.”
The shortfall is more than balanced, however, by increased revenues from natural gas, corporate income tax and metals and minerals. The $50 million budget surplus predicted in February is now projected at $1 billion. Including the forecast allowance, the government could have be sitting on as much as $2 billion at the end of the fiscal year as it heads towards the May 12, 2009 election.
Asked if the government would consider tax cuts or sending rebate cheques, Hansen said, “We'll be looking at options to leave more money in people's pockets, which is certainly a priority for this government.”
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Frank
3 years ago
Priorities
Glad to hear Hansen's priorities are tax cuts over helping people who rely on the forest industry. After all, who needs forestry jobs in BC? Or fishing jobs? Or manufacturing?
We can all flip burgers and work in oil and gas while paying big carbon taxes for daring to use some of our oil and gas before US-owned companies ship it all back home.
On a related note Harper wants to allow US ownership of more of our economy, what's holding us back apparently is that the US doesn't own enough of our airlines or uranium, this will soon be fixed and then we can pay more for our uranium than the Americans do, just like oil.
RickW
3 years ago
As a nation, we have achieved.....
...the dubious distinction of becoming a one-industry country.
For this, we can thank the federal Libs and Cons, and any provincial government with policies that mimic these two.
Fiat lux
3 years ago
There are good reasons to
There are good reasons to believe that this is part of a long standing plan for world control.
Any degree of self sufficiency, from the personal to the country levels, are scaring the hell out of economists and big business.
Rural people can be self sufficient to certain degrees with their gardens, chickens, workshops, cutting into potential profits and extortion.
All over the world pimp governments are depopulating rural areas and jamming people into cities, where they become totally incompetent and forced to rely on buying every bite of food and service, filling the pockets of the multinational corporate mafia.
With bank deregulation this criminal element has been able to take control of the world's resources, colonizing, enslaving and expropriating everything with the perceived power of non existing, imaginary capital created from the air.
Now they are in position to cause a huge monetary crash and depression, forcing a desperate humanity, totally reliant on their mercy, to beg for global corporate dictatorship, already in effect in the EU and planned for North America with the SPP and NAU.
The repetition of the history of 1933 desperate, starving, unemployed Germany, where big business put Hitler into power and the country was "booming" within months, making it the envy of the rest of Europe.
Ed Deak, Big Lake.
DPL
3 years ago
Not only a tax cut says
Not only a tax cut says hansen, he will get back the close to 2.millions they managed to send to people who don't live here. why is it if the governemtn is claiming people are flocking to'BC the best place on earth" that the checks went out side the province? That would sort of indicate folks are on the move and not to here.