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British Columbia Financial & Economic ◆ ◆ ◆ 1 9 9 8 British Columbia Financial and Economic 58th Edition REVIEW Ministry of Finance and Corporate Relations ◆ ◆ ◆ 1 9 9 8 British Columbia Financial and Economic REVIEW Fifty-eighth Edition ◆ Ministry of Finance and Corporate Relations Cover Photo View of the Parliament Buildings from the Canadian Pacific Railway terminal, circa 1919. 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 Copies of this document may be obtained from: Crown Publications 521 Fort Street Victoria, British Columbia Canada V8W 1E7 (250) 386-4636 or BC STATS 553 Superior Street Victoria, British Columbia Canada V8V 1X4 (250) 387-1502 Cost is $25 plus applicable taxes. Message from the Minister I am pleased to present the 58th edition of the British Columbia Financial and Economic Review. The Review is the most comprehensive annual source of information on the province's economy and finances, and summarizes government's programs and the activities of its Crown corporations for the year. The Review is a tool for a broad range of users, from the financial community seeking reliable statistical information and historical trends, to students looking for a substantial but easy-to-understand description of provincial programs and priorities. This year the Review celebrates the 100th anniversary of the British Columbia Parliament Buildings, and one of this year's topic boxes profiles the construction of the Buildings. Other topic boxes highlight the Nisga'a Treaty, youth in British Columbia, and northern British Columbia. Your comments and suggestions help us improve the Review and are most welcome. Please contact the editors at the address below: The Editors B.C. Financial and Economic Review Ministry of Finance and Corporate Relations Room 100, 617 Government Street Victoria, British Columbia V8V 1X4 Joy K. MacPhail 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 ................................................................................................................................................................................................ ix Maps................................................................................................................................................................................................... xi 1 Economic Review British Columbia Overview....................................................................................................................................... 3 External Environment .................................................................................................................................................... 4 British Columbia Economy ....................................................................................................................................... 7 Current Situation ................................................................................................................................................................ 12 2 Financial Review Historical Overview......................................................................................................................................................... 19 1997/98 Overview............................................................................................................................................................. 20 Accounting Policy ............................................................................................................................................................. 21 Revenue..................................................................................................................................................................................... 21 Expenditure............................................................................................................................................................................ 26 Net Deficiency ..................................................................................................................................................................... 31 Summary Financial Statements .............................................................................................................................. 31 Provincial Government and Crown Corporation Financing.......................................................... 32 Financial Management Plan...................................................................................................................................... 33 Financing Process ............................................................................................................................................................. 34 Sources of Funds ............................................................................................................................................................... 35 Components of Provincial Net Debt ................................................................................................................. 36 Debt Indicators.................................................................................................................................................................... 38 Credit Rating.......................................................................................................................................................................... 39 Banking and Cash Management........................................................................................................................... 40 Trust Funds............................................................................................................................................................................. 40 Other Liabilities................................................................................................................................................................... 41 Note: Appendix 2 outlines the province's financial cycle and provides a glossary of terms 3 The Province and Its People Physical Attributes ............................................................................................................................................................ 45 Economic History.............................................................................................................................................................. 47 Population ............................................................................................................................................................................... 50 Labour Market...................................................................................................................................................................... 60 Regional Profiles ................................................................................................................................................................ 64 4 Industrial Structure and Performance Introduction............................................................................................................................................................................ 71 British Columbia's Changing Industrial Structure................................................................................... 72 The Role of Services ....................................................................................................................................................... 74 Goods-Producing Industries ............................................................................................................................. 75 Agriculture............................................................................................................................................................................... 76 Fishing and Trapping..................................................................................................................................................... 79 Logging and Forestry ..................................................................................................................................................... 81 Mining, Quarrying and Oil Wells......................................................................................................................... 83 Manufacturing......................................................................................................................................................................
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