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

No more ferries will sail from Departure Bay, Mill Bay, Brentwood Bay during COVID-19 pandemic

B.C. Ferries announces major changes to sailing schedules for 60 days starting Saturday, April 4

Qualicum Beach Farmers Market to re-open on Saturday, April 4

Only fresh, frozen, prepared items to be sold

COVID-19: Nanoose Bay woman celebrates 90th birthday with Model T ride as neighbours line streets

WATCH: Pandemic ruined plans for a party, so friends got creative

COVID-19: ‘The Ballad of Bonnie Henry’ recorded and released

LISTEN: Quick turnaround for song penned by Qualicum Beach musician Phil Dwyer

From inside the ER: B.C. doctor tells it like it is from the frontlines of COVID-19

‘Stay home. It’s working,’ says ER doctor in a Q&A discussion, ‘And please don’t worry.’

Couple won’t self-isolate after returning from overseas: Cowichan by-law

New law requires 14 days of self-isolation when returning to Canada

Businesses advised to prepare for federal, B.C. COVID-19 assistance

Canada Revenue Agency portal expected to open next week

Suspect with pellet gun draws serious police response in downtown Nanaimo

Officers respond with guns drawn at Port Place shopping centre

Dogs are property, not kids, B.C. judge tells former couple

Court decision made on competing lawsuits over Zeus and Aurora — a pit bull and pit bull cross

COVID-19 PQB business update: looking for takeout food?

Email messages to editor@pqbnews.com

B.C. senior gives blood for 200th time, has ‘saved’ 600 lives

There was no cutting of cake for Harvey Rempel but he’s challenging youth to start donating blood

Trudeau commits $100M to help food banks amid COVID-19 crisis

Funds will help ‘urgent food needs’ for Canadians awaiting federal emergency benefits to kick in

Most Read