2009 Annual Report Mission stAteMent Our mission is to build a competitive and growing economy that provides opportunities for all who invest, work, and live in British Columbia. Distinctive excellence The distinctive excellence of the Business Council of British Columbia is our ability to research, develop, and advocate credible policy positions on economic and related issues that influence the Government, business community, and public of British Columbia. Message fro M t h e C h a i r participants discussed the role of the Olympics As the global in shaping our future and your Council tabled a financial crisis synthesis report highlighting key initiatives which caught up with will drive our future growth and prosperity. BC bringing As the global financial crisis caught up with BC unprecedented bringing unprecedented cost-cutting, 19 new cost-cutting, 19 members from all sectors joined the Council demonstrating their belief in the strength of new members association in good times and bad. Already in from all sectors 2009 has been an important year for the Business 2010 we have attracted 12 new members and Council of British Columbia and its members. joined the Council under the direction of Richard Prokopanko, demonstrating The spring saw us in a provincial election in which our revitalized Membership Committee will be their belief in the Council added its voice to other business seeking to bring in new members from around groups in a campaign entitled “There’s No Place the province. the strength of We’d Rather Be” featuring members discussing association in good Our Board of Governors, Executive Committee, the importance of a stable political environment times and bad. dedicated membership and staff have all in attracting investment and creating jobs. played important roles as we have made our Outlook 2020, a visionary piece of policy work way through troubled economic times and saw your Council commissioning 28 papers through the most successful Olympics ever. I on diverse subject areas impacting economic want to particularly thank Virginia Greene, Jock growth in British Columbia to 2020. These Finlayson, Doug Alley and Herb Eibensteiner for papers became the subject matter for a series their high quality work and dedication. of three Summits looking at the impact of We are grateful to our membership for their changing world markets, demographics and ongoing support, particularly when resources the future of the resource sectors and new are tight, and welcome the many new members industries on the future of British Columbia. who have been attracted to the high calibre Hundreds of business leaders came out to work of the Council. debate and challenge ideas while the public was invited into the discussion through a series t R o of editorial pieces. P e R The final piece of this work – Outlook 2020: l Shaping B.C.’s Economic Future Chapter Graham MacLachlan UA n n Four – was held in April 2010 in which the Chair 2 0 0 9 A 3 Message fro M t h e p r e s i d e n t Coming out of 2009 As I sat down to off the mark when things begin to turn around. our financial house, write my 2009 And, in fact, we have been. Coming out of while dealing with a message to our 2009 our financial house, while dealing with members I was a deficit, has a 4-year plan to restore balance, deficit, has a 4-year struck by how our economy is diversified as never before plan to restore quickly and dra- and taxes in this province make us the most balance, our ma tically things competitive jurisdiction in Canada. Our will to economy is can change in succeed is high. diversified as never life. We have We spoke then as well of the importance of before and taxes in just concluded leadership and we saw it everywhere as our one of the best Olympic experiences ever this province make members emerged one after another shaping and the heart-lifting performances of athletes, us the most their organizations to ride out this storm and volunteers, and Canadians, has us looking competitive position themselves for the future. forward with more overall optimism than many jurisdiction in of us thought possible a few short months ago. Your Council experienced a similar refresh Canada. Our will to and refocus. Under the direction of John The Queen said it best when she described succeed is high. Webster and the Finance & Audit Committee, 1992 as an “annus horribilis” after one all expenditures have been carefully looked at, catastrophe after another beset the country priorities have been reassessed and refocused, and her family. These words come to mind as I the fee structure updated, and we come into recall 2009. 2010 lighter on our feet. We are confident that I said in 2008 as we saw what was coming we can provide not only what our members can at us in the world economy that we were not afford but what matters to them; excellence in going to escape the recession and we did economic and policy analysis, opportunities not. Every sector of our diverse economy was to connect with peers, strong advocacy and affected as exports dried up along with capital, most importantly a rigorous look at our future governments slipped back into deficits, jobs economy and prosperity through our Outlook 2 0 0 9 A were shed in record numbers and the growth 2020 initiative. we had come to expect and enjoy evaporated. Even as we were all tightening belts our n n UA We also noted that British Columbia was well- members saw the long-term benefits of l positioned to weather this storm and be first investing in Outlook 2020 and in 28 papers on R e P o R t 4 Even as we were all tightening belts our members saw the long-term benefits of investing in Outlook 2020 and in 28 papers on subjects as diverse as the future of the subjects as diverse as the future of the green me to the quality of our health care system, green economy and economy and the importance of investing in acquainted me with the kindness of strangers the importance of early childhood education. and left my family and I humbled by the support investing in early we have received from the members of the childhood Three major Summits were held, with member Council. We thank you, I thank you, for making support, during which this subject matter education. this experience less lonely and for ensuring was debated by industry leaders. Numerous there was never a day in which I did not feel the editorial pieces and dialogue sessions involved power of your well wishes in my healing. the public in this debate. Government leaders have played an active role and many of the We are poised for greatness. We have seen it priority issues we raised have found themselves in ourselves. Your Council is prepared for the into government thinking and policy already. future, your support has never mattered more, Jock, Herb, Doug, Barbara, Ken, Vicki, Katie Our final Summit on April 23, 2010, brought and I remain dedicated to supporting your together leaders to debate our “Outlook 2020: efforts in making British Columbia a Shaping B.C.’s Economic Future” synthesis prosperous place to live, work and invest. report in which we laid out the way to the future. We started with an exciting look back at Thank you, t the role of the Olympics in propelling us forward R o P and repositioning us in the global economy. e R l On a personal note, my year, while it has Virginia Greene UA been an unusually tough one, has introduced President and CEO n n 2 0 0 9 A 5 2009: Year in review Bc economy slips Statistics Canada’s 2010 Investment Intentions into Recession survey, published in February, projects a 5% increase in planned capital spending this year, The global financial crisis as business confidence improves and access that began with tumbling to capital gets easier. Exports should also get US home prices and a lift from a stronger global economy and the the related collapse of initial stages of economic expansion south of sub-prime mortgage the border. Tourism received a well-timed boost markets caught up to courtesy of the tens of thousands of visitors who British Columbia in the traveled to BC for the 2010 Winter Olympics. second half of 2008. By the final months of the The February 2009 provincial budget was The good news is year, economic indicators were weakening unveiled in an environment of unusual economic uncertainty (as well as a looming election). that the BC across-the-board. By the fourth quarter, the province had clearly tipped into a recession After three years of sizable surpluses, the BC economy is now that persisted through the first half of 2009. government foresaw a barely balanced budget rebounding after Preliminary estimates suggest the province’s for 2008-09, followed by two years of small two poor years. economy contracted by 2.5% last year, on the operating deficits requiring the government Recent data signal heels of a very tepid 0.3% advance in 2008. to amend the legislation mandating balanced a revival of Exports, residential investment, retail sales budgets. Unfortunately, economic conditions consumer and and employment all posted significant drops continued to deteriorate in the weeks and business spending compared to the previous year. Lumber prices months following the February 2009 budget, taking a particular toll on government revenues. and a return to remained low throughout 2009 and natural gas prices were also fairly weak.