Finance Minister Carole James at the B.C. legislature, Nov. 26, 2019. (Tom Fletcher/Black Press)

Consumer spending ‘cautious,’ B.C. finance minister says

Carole James sees housing sales pick up, resources in decline

The B.C. government continues to reduce its expected surplus this year, as consumer spending cools off and revenue from forest products and other resources declines.

Finance Minister Carole James released the province’s second quarter financial results Tuesday, showing $133 million reduction in expected forest revenues for the year ending next March. Coal, electricity and oil and gas revenues have also seen a reduction in revenue forecasts, with natural resource revenues in general down $235 million from the first quarter estimate.

Income tax revenue forecasts are up, based on B.C.’s continued strong population and employment growth, but consumer spending is slowing down. James said that is due to economic concerns, both in B.C. and globally.

Retail sales grew by only 0.6 per cent during the first six months of the 2019-20 fiscal year, continuing a slowdown from 9.3 per cent growth in 2017 and two per cent last year. The slowdown is primarily “a decline in housing-related spending and new vehicle sales,” James said.

Average home sale prices fell by 3.3 per cent up to October 2019, after a slight increase in 2018. Housing starts are up so far in 2019, with 45,112 starts so far in 2019 compared to 40,857 in 2018.

RELATED: ICBC improving, still not out of the red, minister says

RELATED: Population, low mortgage rates drive housing recovery

Revenue forecasts for the B.C. Lottery Corp. and Liquor Distribution Branch are down from the September forecast, with lower casino revenues and sluggish sales for legal marijuana in B.C. James said there is some improvement in sales from B.C. Cannabis and private retail stores, but it is too soon to say if the province will break even on cannabis sales in the current year.

“B.C. Liquor Distribution Branch net income forecast has declined $18 million due to the delayed rollout of private and public cannabis stores and lower than anticipated demand,” the second quarter report states.

James said other cost-saving measures are in the works for ICBC, which saw billion-dollar losses the last two years before a cap on “pain and suffering” awards and diversion of smaller injury claims from court took effect in April. The budget continues to carry a $500 contingency fund to cover ICBC losses this year, as higher premiums and a new risk-based rate system come into effect.

Overall, the province now projects a surplus of $148 million, down from $179 million in the September update.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Creekside Apartments gets utility charge relief from Port Hardy council

The apartment building is undergoing restoration from a fire that happened back in 2017.

LETTER: It’s a labour of love keeping the Port Alice golf course running

‘We North Islanders are indeed fortunate to have two gorgeous golf club’

Mowi’s B.C. salmon farms achieve environmental certification from independent watchdog

Aquaculture Steward Council certification complies with 500 sustainability and social measures

Island Health provides Baby Beds for infants north of the Malahat

A safe place for baby to sleep is key to reduce sleep-related deaths

Author chronicles churches built by pioneers in the Salish Sea

B.C. author Liz Bryan preserving a little bit of pioneer history in her latest book

QUIZ: Are you ready for a summer road trip?

How much do you really know about roads, motor vehicles and car culture? Take this quiz to find out.

B.C. Ferries increasing passenger capacity after COVID-19 restrictions

Transport Canada 50-per-cent limit being phased out, no current plans to provide masks

Shellfish industry get funds to clean up at Island sites and beyond

Businesses can apply to cover half of costs to clean up so-called ‘ghost gear’

Amber Alert for two Quebec girls cancelled after bodies found

Romy Carpentier, 6, Norah Carpentier, 11, and their father, Martin Carpentier, missing since Wednesday

B.C. man prepares to be first to receive double-hand transplant in Canada

After the surgery, transplant patients face a long recovery

Grocers appear before MPs to explain decision to cut pandemic pay

Executives from three of Canada’s largest grocery chains have defended their decision to end temporary wage increases

Bringing support to Indigenous students and communities, while fulfilling a dream

Mitacs is a nonprofit organization that operates research and training programs

RCMP ‘disappointed’ by talk that race a factor in quiet Rideau Hall arrest

Corey Hurren, who is from Manitoba, is facing 22 charges

NHL’s Canadian hubs offer little economic benefit, but morale boost is valuable: experts

Games are slated to start Aug. 1 with six Canadian teams qualifying for the 24-team resumption of play

Most Read