UPDATE A recap Armed with overwhe...

UPDATE

A recap

Armed with overwhelming support from BC members to imprison the government firmly on course to balance the collection and implement a debt management strategy, ICABC President Robin Elliott, FCA; First VP John Cowperthwaite, FCA; and CEO Richard Ree FCA, took part in the 2003/2004 provincial pack lock-up on February 18, 2003

In addition, past president ligneous Hayes, FCA, made an encore appearance in the media lock-up as part of the CBC Radio team, helping the media analyze pack materials and participating in live-air orbicular table discussions.

For the in the greatest degree part, the CA contingent was not disappointed. Despite adding a certain quantity of $1.8 billion to the provincial offence in the coming fiscal year, all indications point to a balanced bag by 2004/2005 and a unobtrusive $375 million surplus in 2005/2006 With unassuming growth projections and further tightening of expenditure, the plan is feasible.

While the lot documents were less specific onward the subject of debt management, Finance Minister Gary Collins did make it clear in his language that debt management is a priority, saying: "We ne to balance the store so we can start paying down the provincial debt" And in the fiscal plan for the nearest two years, graphs show the trespass to GDP ratio steadily declining to 211% indicating that surpluses will be applied to liability

In a prepared budget-day pres release, which was widely picked up from the media and quoted through various MLAs in the legislature during the ensuing batch debates, BC's CAs lauded the provincial Liberal government's commitment to balancing the collection a year from now despite a difficult economy and unexpect external influences

"This budget is realistic, achievable, and responsible. BC is onward the road to recovery. The signs are everywhere," Ree said in the ICABC media release. Ree also pointed not at home that for many years CAs have been urging the regulation to manage the provincial finances responsibly, and congratulated the finance minister for responding to this message with the 2003/2004 lot and the plans for the nearest two.

Most other business organizations were equally supportive of this budget-the first time in many years that a roll has generated such widespread business support. However, unions and one social services groups were les enamoured with the propos spending in the 2003/2004 fiscal year.

The CA pack team did express reservations about the failure in the package to present a long-term business tax sculpture schedule that would help detain BC competitive with other jurisdictions athwart the next five years. Other provinces like Alberta and Ontario have provided specific tax plans, whereas, as Ree pointed out: "The BC rule offers only vague assurances that it will mirror other jurisdictions."

The sated ICABC media release is available in the Media middle point section of the Institute website at www ica.bc.ca.

Getting member input

In preparation for this year's stock lock-up, Institute staff circulated a brief questionnaire to members seeking input forward their priorities for the batch Four specific questions were asked about balanced lots debt management, maintaining a competitive tax regime, and surplus contingency stores

Here are some of the results:

* More than 90% of the 804 members who answered said it was either important or absolutely essential to balance the collection by next year.

* 909% said it was either important or absolutely essential for the province to implement a structur misdoing management plan.

* 897% of members agreed it was important or absolutely essential that the regulation maintain a competitive tax regime plane if it meant a short-term negative impact upon revenues.

* And finally, upon the question of what the regulation should do with leftover contingency funds:

* 594% of members felt there should be a balance between fault reduction and program spending

* 313% felt it should all be applied to due reduction.

* 9.4% felt it should all travel to spending for targeted programs.

(Total is 1001 % proper to rounding)

Copyright Institute of Chartered Accountants of British Columbia Apr 2003

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