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B.C. Financial and Economic Review 1999

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B.C. Financial and Economic Review 1999 ◆ ◆ ◆ 1 9 9 9 British Columbia Financial and Economic 59th Edition REVIEW Ministry of Finance and Corporate Relations ◆ ◆ ◆ 1 9 9 9 British Columbia Financial and Economic REVIEW Fifty-ninth Edition ◆ Ministry of Finance and Corporate Relations Cover Photo Hiking in British Columbia's coastal mountains. Courtesy of British Columbia Hydro and Power Authority. Photo by Eero Sorila Canadian Cataloguing in Publication Data Main entry under title: British Columbia financial and economic review. Ð 1994- Annual. Continues: British Columbia economic and statistical review, ISSN 0847-1525. ISSN 1201-3633 = British Columbia financial and economic review (1994) 1. British Columbia - Economic conditions - 1945± - Periodicals. 2. British Columbia - Statistics - Periodicals. 3. Finance, Public - British Columbia - Periodicals. 4. British Columbia - Periodicals. I. British Columbia. Ministry of Finance and Corporate Relations. II. Title: Financial and economic review. HC117.B7B74 330.9711'005 C95-960026-4 How to get a copy of the Financial and Economic Review This document may be found, along with other financial and economic reports on the Ministry of Finance and Corporate Relations Internet web site (www.fin.gov.bc.ca) or British Columbia Government Publications Index Internet web site (www.publications.gov.bc.ca) or BC STATS, Ministry of Finance and Corporate Relations 553 Superior Street Victoria, British Columbia Canada V8V 1X4 or Crown Publications 521 Fort Street Victoria, British Columbia Canada V8W 1E7 Message from the Minister I am pleased to present the 59th edition of the British Columbia Financial and Economic Review. The Review provides a wealth of information on the province's economy and finances. Individual chapters describe the province's people, industries, government, major programs, and activities of its Crown corporations for the year. The Review is a tool for a wide variety of users, from the financial community seeking reliable statistical information and historical trends, to students looking for an extensive and easy-to-understand description of provincial programs and priorities. This year's Review has five topic boxes. One describes the diversification of British Columbia's economy, while another profiles the Okanagan region. Other topic boxes cover the impact of technology on provincial programs, B.C.'s film and television industry, and the work of the Business Task Force. We welcome our reader's comments and suggestions. Please contact our editors at the address below or e-mail us at www.fin.gov.bc.ca: The Editors B.C. Financial and Economic Review c/o Ministry of Finance and Corporate Relations PO Box 9417 STN PROV GOVT Victoria, British Columbia V8W 9V1 Paul Ramsey Minister of Finance and Corporate Relations Table of Contents RUSSIA CHINA EUROPE JAPAN CANADA British Columbia AFRICA U.S.A. HAWAII AUSTRALIA NEW SOUTH ZEALAND AMERICA Table of Contents Page Topic Boxes................................................................................................................................................................................. ix Tables................................................................................................................................................................................................ ix Charts ................................................................................................................................................................................................ x Maps................................................................................................................................................................................................... xi 1 Economic Review British Columbia Overview....................................................................................................................................... 3 External Environment .................................................................................................................................................... 4 British Columbia Economy ....................................................................................................................................... 6 Current Situation ................................................................................................................................................................ 12 2 Financial Review Introduction............................................................................................................................................................................ 23 Historical Overview......................................................................................................................................................... 23 1998/99 Overview............................................................................................................................................................. 25 Consolidated Revenue Fund Revenue............................................................................................................. 27 Consolidated Revenue Fund Expenditure .................................................................................................... 32 Consolidated Revenue Fund Net Deficiency ............................................................................................. 36 Crown Corporations and Agencies..................................................................................................................... 37 Provincial Financing........................................................................................................................................................ 37 Financing Process ............................................................................................................................................................. 39 Sources of Funds ............................................................................................................................................................... 39 Credit Rating.......................................................................................................................................................................... 40 Provincial Net Debt Trends ...................................................................................................................................... 41 Review of 1998/99............................................................................................................................................................ 42 Capital Spending................................................................................................................................................................ 45 Debt Indicators.................................................................................................................................................................... 47 Banking and Cash Management........................................................................................................................... 47 Trust Funds............................................................................................................................................................................. 47 Other Liabilities................................................................................................................................................................... 49 Note: Appendix 2 outlines the province's financial cycle and provides a glossary of terms 3 The Province and Its People Physical Attributes ............................................................................................................................................................ 55 Economic History.............................................................................................................................................................. 57 Population ............................................................................................................................................................................... 60 Labour Market...................................................................................................................................................................... 65 Regional Profiles ................................................................................................................................................................ 69 4 Industrial Structure and Performance Introduction............................................................................................................................................................................ 93 British Columbia's Changing Industrial Structure................................................................................... 93 The Role of Services ....................................................................................................................................................... 95 Goods-Producing Industries ............................................................................................................................. 96 Agriculture............................................................................................................................................................................... 96 Fishing and Trapping..................................................................................................................................................... 98
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