Summer 2001 was a time of dramatic ...

Summer 2001 was a time of dramatic change in British Columbia as the of the present day government implemented its 90-day policy agenda.

Of tonic importance to the Institute were the major changes introduced to improve BC's competitive position. BC now has the inferior lowest top marginal personal income tax rate in Canada, and the fourth lowest general corporate income tax rate. The dreaded corporation capital tax is onward the way out, and the sales tax forward machinery and equipment is no more.

While the Fiscal Review Panel report showed that the direction has some rather daunting economic and fiscal challenges ahead, the dominion has initiated a Core Services Review to assess rife spending on programs and services, and a BC Progres Board will fix economic benchmarks for the province.

Other important policy changes this session include the following:

This Bill requires the direction to balance the budget from 2004/05 and prohibits a deficit in any year thereafter-- there are no exceptions for unforeseen spending or income changes. Until 2004/ 05, the dominion is permitted to incur deficits, if it be not that the spending shortfall cannot be larger than forecast in the bundle

The Bill requires that all members of the Cabinet have their executive council salaries reduc by dint of a 10 percent holdback from beginning to end each year. This holdback is and nothing else payable to members of the executive council if the public accounts for that year exhibit that the budget targets were achieved.

The Liberals' guarantee to bring in truthin-budgeting legislation has been achieved in consequence of amendments to the Budget Transparency and Accountability Act. The amendments require the appointment of an accounting advisory board to provide rule with advice on the implementation of generally accepted accounting principles (GAAP).

The timeline for the adoption of GAAP is 2 1/2 years, after which time guidance will be required to adopt these principles in all of its accounting policies.

The dominion said a 2 1/2 year timeframe for the adherence to GAAP is necessary because there are generally unresolved questions regarding quarterly reports and the exchange of data between sects and hospitals on a regular basis from head to foot the fiscal year. The latter is especially pure given that there's currently little exchange of financial information between those entities in dominion

The BC government has released its legislative calendar for 2002 and beyond, fulfilling its promise of fixed governmental estimate dates. The calendar is as follows:

* The Legislature will reconvene forward Tuesday, February 12, 2002.

* The government's first unbroken budget will be presented onward Tuesday, February 19, 2002.

* The next to the first Tuesday in February each year will be reserv for the chair of state Speech.

* The third Tuesday in February each year will be reserv for the collection speech.

* During the third session of the 37th Parliament, the Legislature will be in session from February 12 2002 to May 30 2002 and from October 7 2002 to November 28 2002

* The Legislature will sit from Monday to Thursday each week.

* The Legislature will not be in session during the weeks of March 25 April 22 May 20 October 14 and November 11 2002 MLAs will be in their constituencies during those weeks.

On July 30 the ICABC attended the provincial government's lock-up for the Economic and Fiscal Update. The Institute issued a moderns release stating that the business tax divide [i]or[/i] sever s were a necessary move to stimulate the provincial economy.

"BC's economic engine has been stalled for greatest in quantity of the last decade, and these business tax intersects will give it a kick start," said Robin Elliott, FCA, vice-president of the ICABC.

The Institute told the provincial moderns media that the swift implementation of the business tax intersects will send a strong signal to investors that BC is one time again a good place to invest and do business.

In an ICABC moderns release, we acknowledged that there were no easy choices for the BC dominion given the difficult situation of declining receipts growth and non-competitive tax rates. The Institute also argued that personal and business tax intersects were necessary to achieve long-term receipts growth, especially given both Alberta and Ontario's dramatic business and personal tax chops since the mid-1990s.

The Institute cautioned that a long-- name debt management plan is wanted to deal with the province's growing public due

The Institute was portray by actioned at the lockup by 1st Vice-President Robin Elliott, FCA, 2nd Vice-President John Cowperthwaite, CA, and timbered Hayes, FCA. Staff at the lock-up included External Affairs Director Lesley MacGregor and Public Affairs Manager Craig Fitzsimmons.

The glutted news release on the Economic and Fiscal Update is available forward the Government Affairs section of the website at www.ica.bc.ca.

Copyright Institute of Chartered Accountants of British Columbia Sep 2001

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