Business leaders to Premier Eby: Fix B.C.'s economic investment climate now | Daily Hive

Business leaders to Premier David Eby: Fix B.C.'s economic investment climate now

David Eby. (Government of BC)

Four of British Columbia’s most influential business organizations are calling on Premier David Eby to take decisive action to reverse what they describe as a worrying decline in the province’s economic competitiveness.

In an open letter released today, Laura Jones (president and CEO of the Business Council of British Columbia), Alex McMillan (interim CEO of the B.C. Chamber of Commerce), Bridgitte Anderson (president and CEO of the Greater Vancouver Board of Trade), and Ryan Mitton (director of B.C. legislative affairs for Canadian Federation of Independent Business) urged the BC NDP-led provincial government to use the upcoming 2026 provincial budget — set to be finalized and announced early next year — to “rebuild business confidence and make British Columbia a more attractive place for private sector investment.”

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The leaders warn that the economic trends emerging over the past two years are the most troubling the province has seen in decades.

Moreover, the provincial government faces a projected $11.6-billion deficit in the 2025 fiscal year, and anticipated shortfalls of about $12 billion annually thereafter. Employment growth has stalled, and unemployment has climbed to 6.4 per cent — a four-year high. Meanwhile, GDP per capita dropped nearly two per cent in 2024, the sharpest decline in Canada.

The business leaders assert the provincial government must go far above and beyond its recently announced $200-billion “Look West” economic attraction, growth, and investment strategy, with a need to turn the plan’s ambitious goals into executable actions with results. Much of the plan also depends on leveraging federal government investment.

The letter highlights that nearly 60,000 people in B.C. migrated to other provinces in the last year, representing the largest outmigration since the late-1990s and mid-1970s

“These numbers point to a clear need to improve broader investment conditions. A stronger, more productive economy is the engine of higher wages, stronger revenues, and the growth needed to sustain public services and reduce affordability pressures,” the letter states, noting small business confidence also remains among the lowest in the country.

“Avoid having more capital ‘quietly quit’ the province”

In recent months, Premier Eby and his BC NDP government have faced growing scrutiny over their approach to Indigenous reconciliation, particularly regarding Aboriginal title negotiations with First Nations. Critics have raised concerns about the provincial government’s legal strategies in court, the high degree of secrecy surrounding negotiations with First Nations, and the potentially significant number of unresolved land claims currently moving through the judicial system. Many fear that prolonged uncertainty over the security of fee-simple private property — especially following the Cowichan Tribes title decision now under appeal, likely a years-long process — could trigger an exodus of capital and further deter economic investment in B.C.

This provincial government has also faced criticism for policies seen as restricting natural resource development and for other decisions and strategies that, according to business leaders, are contributing to an increasingly challenging economic climate across the province, with the government’s approaches reinforcing and worsening B.C.’s structural economic challenges.

“We ask the province to do everything it can to reduce uncertainty for business to avoid having more capital ‘quietly quit’ the province,” reads the open letter.

“This includes putting forward the strongest possible defence of private property rights, being open and transparent about land use negotiations and transfers, and ensuring that labour, tax, and environmental policies are not working against the objective of attracting more private sector investment.”

Three key recommendations

Additionally, the leaders of the four influential business organizations outlined a trio of proposed policy measures they say could significantly boost economic growth and competitiveness.

First of all, the organizations urge the provincial government to eliminate the provincial sales tax (PST) businesses make on capital investment, arguing that removing this cost barrier on machinery, equipment, and technology would help restore B.C.’s competitiveness, boost productivity, and raise wages.

Secondly, they want the provincial government to set out a credible fiscal plan to reduce the deficit by half within three years and bring taxpayer-supported debt back to sustainable levels — emphasizing that failure to do so signals higher future taxes and undermines confidence.

Finally, they call on the provincial government to build on its existing efforts to open the domestic market by fully implementing legislation that would allow goods and services legally sold in other provinces to be sold in B.C., positioning the province as a leader in removing interprovincial trade barriers.

The letter further points out B.C.’s high personal income tax rates, which they say undermine the province’s ability to attract and retain top talent. B.C. currently has the fourth-highest top marginal tax rate in North America, according to the organizations, adding that the province risks educating skilled workers only to watch them move elsewhere.

The business community previously appealed to the provincial government on these concerns one year ago. While they acknowledge the BC NDP’s efforts in areas like major capital project approvals and industrial strategy development, they say those steps must be paired with broad competitiveness reforms.

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