A BC Liberal rule In the 2001 prov...

A BC Liberal rule

In the 2001 provincial general election, voter gave the BC Liberals an overwhelming mandate to implement their of recent origin Era policy platform. While the enormity of the Liberal victory may have been a surprise to many, the same cannot be said about the of recent origin government's policy positions. The BC Liberals unfolded the majority of their policy positions many years ago, and the of the present day Era document released during the campaign was simply an updated version of an existing publication. As a conclusion the Liberals' agenda, at least for the first 90 days, appears to be remarkably predictable.

Business and Personal Tax intersects

Business taxes are a politically sensitive issue at election time, and the Liberal document does not address them. However, Gary Farrell-Collins-expected to be the nearest finance minister-told Business in Vancouver in May 2001 that the Liberals would like to phase gone out the corporate capital tax and the sales tax onward machinery and equipment, but that the timing will hang on the state of the finances. Farrell-Collins' remarks were consistent with Gordon Campbell's statements to the BC Business Summit in April. Campbell told the business organization that although business taxes would have to be addressed in order to encourage private sector investment, it could not be done overnight.

Finally, the BC liberals promise "dramatic" tax divide [i]or[/i] sever s for the lowest two personal tax brackets. While these tax chisels are important, higher income earners also ne to have competitive tax rates if BC is to attract and retain senior executives, doctors, entrepreneur and other professionals. The modern government will enter office with our top marginal personal tax rate being almost double that of Alberta's (197% compared to 10%)

Deficit/Debt Management

BC's total provincial liability has more than doubled in the last decade, climbing from $17 billion to $35 billion. For many years, the Institute has been calling upon the provincial government to introduce a long-term debt-- management plan with realistic and measurable targets. Unfortunately, successive debt-management plans in the 1990 were continually changed and eventually eliminated.

The Liberals' just discovered Era document features a section forward the province's dramatic increase in due and reveals the party's vigorous understanding of the issue. However, the platform gives no specifics. Instead, we will have to wait for the modern government's first budget.

With regard to BC Liberal Party priorities, we do know that they plan to toughen the Balanced set Act, by such means as holding ministers accountable for missed targets. They also promise to balance the assortment by their third full governmental estimate in 2004/2005.

Budget Transparency

The Institute has been calling for the inclusion of denominations universities, colleges and institutes, and health authorities (SUCH sector) to be included in the government's balance sheet and financial reporting Although the two the Auditor General and the package Process Review Panel (Enns Report) called for the of that kind sector to be included in management books, the previous government refused. The BC Liberals have stated that they will pass conformity to fact [i]or[/i] reality in Budgeting legislation to make sure that the government follows GAAP.

The BC liberals have also stated that they will increase funding to the Office of the Auditor General to improve accountability in management a position supported by the Institute.

The CA Profession

For many years, the ICABC has been trying to restore fairness to the issue of liability for CA partners and auditors. We will continue to work with the BC civil service and the fresh government towards this goal. While the Liberals have no official policy position onward the subject, the Institute is hopeful that they will understand the importance of liability reform to the province's competitive position.

Draft legislation of the CA Act has been in progression in a continuously ascending gradation for some time. The Institute's Director of Member Services, Barry Mottershead, FCA, has been actively involved in getting the legislation to the point where it can be introduced in the BC legislature.

The Institute will also continue to push for amendments to the Cooperative Association Act, which generally allows for exemptions from auditor independence for co-op As Opposition, the Liberals supported the accounting profession's position in succession auditor independence and spoke gone out against the exemption in the legislature.

What's nearest

A legislative session is wait fored in September of this year, and there is speculation that the restraint may bring in a just discovered budget after their audit of the public finances is concluded The new government has an ambitious 90-day agenda, and while many of the Institute's relate tos about competitiveness may be addressed early in the mandate, it is likely that professional issues like as liability reform, the CA Act, and the Co-op Act may have to wait for day "91"

Watch Beyond Numbers for updates in succession all of our government relations activities. More information is included in the rule Affairs section of the website at www.ica.bc.ca.