British Columbia Premier David Eby says his government is putting a planned expansion of the provincial sales tax on hold and launching a $90-million support package for businesses facing the effects of the trade war with the United States.
Speaking to delegates at the Union of British Columbia Municipalities convention in Vancouver on Friday, Eby also announced that BC Ferries will be directed to build future vessels in British Columbia.
The package includes several measures aimed at communities and businesses affected by U.S. tariffs. The province will provide $30 million to renew the BC Manufacturing Jobs Fund, another $30 million for technology companies, and $15 million each for rural infrastructure and BuyBC programs.
Eby had previously defended the planned expansion of the provincial sales tax to professional services, which was scheduled to take effect Oct. 1. The premier had acknowledged that the measure was unpopular among businesses.
On Friday, however, he said he had reconsidered the decision after hearing directly from companies dealing with tariff-related challenges. The exemption will cover accounting, bookkeeping, architectural and engineering services.
The premier also reiterated the province’s commitment not to stock or sell alcohol from the United States until there is a fair agreement in the U.S. for British Columbia’s forestry sector. The statement received a standing ovation from delegates at the convention.
Eby used his annual speech to announce another measure focused on people facing severe and overlapping mental-health and substance-use challenges. His government plans to open more involuntary care beds in every region, with additional announcements expected for new beds in the Interior and on Vancouver Island.
The speech came only days after Eby said he had warned Elections BC and members of his caucus to be “election ready” as the U.S. trade war continues to create disruptions.
That possibility has become a major issue at the UBCM convention, particularly with municipal elections scheduled for Oct. 17.
On Thursday, Alexa Loo, a Richmond city councillor running for mayor, introduced an emergency resolution asking the NDP government not to call a provincial election during the voting period for municipal elections across British Columbia.
“British Columbia voters deserve the opportunity and respect to have unfettered attention on local issues during municipal elections, without being overshadowed by a provincial election,” reads a draft version of the resolution shared by Loo.
The resolution also called on senior orders of government to establish a legislative framework that would prevent the possibility of local, provincial and federal elections taking place at the same time.
Loo said the resolution passed almost unanimously because delegates understood that concurrent elections generally result in lower voter turnout for local councils.
“It’s like having two conversations at the dinner table,” she said in an interview Friday.
“It’s not fair to the elected officials that are running. It’s not fair to our election staff who are working really hard to ensure a clear, fair election happens and it’s not fair to the residents who are being asked to vote to try and wade through all the information.”
During a question-and-answer session, Eby said he would consider the resolution and stressed that he had “no announcement about an election.”
Loo said the resolution was ultimately about asking the provincial government to respect the four-week local election period. In her view, Eby’s decision not to answer directly on that point was itself significant.
Vancouver Mayor Ken Sim, who is seeking re-election, also called on Eby to respect the local election period in a statement released Friday.
“What we need from Victoria isn’t an election call. We need Premier Eby and his government to move forward with the voluntary and involuntary treatment capacity this province so urgently requires. That work can’t wait, and it shouldn’t be delayed by an election,” Sim said.
Eby’s address also came amid growing turmoil within the Opposition B.C. Conservatives.
A day earlier, party leader Kerry-Lynne Findlay told UBCM delegates that she was not going anywhere after two members of her caucus called for her resignation.
The party faced further upheaval Friday when three legislators were expelled from caucus: former leader John Rustad, former interim leader Trevor Halford and Skeena MLA Claire Rattée.
About an hour after Eby’s speech, eight former B.C. Conservative legislators announced that they were joining CentreBC. Peter Milobar is taking over as leader of the party, which will become the third-largest party in the provincial legislature.
At the UBCM convention on Thursday, Findlay described the possibility of a snap provincial election as a “cynical move” by a premier who, she said, knew she would win a byelection taking place in Abbotsford-Mission on Sept. 26.
