A speech from the throne is typically little more than a movie trailer without the money shots.
Sure, there are spoilers – how the plot line aims to work out – but precious little of the narrative on how the plot unfurls. It also tends to be more of an upbeat Hallmark moment than a horror show. In other words, we have to wait to see the devilish details before we can judge if the experience of it will be worthwhile.
Those details come next Tuesday in the budget, but Monday’s provincial throne speech suggests this remains more of a time of provision than of imposition.
Even next week’s meat on Monday’s bone is unlikely to identify how the expanded presence of government in the provincial economy will tap those here to pay for the privilege. Don’t worry, the government hasn’t forgotten about it.
It is hardly surprising that Lieutenant Governor Janet Austin, in her ceremonial reading of the government’s agenda for the year, would be scripted to recite the Horgan government’s ambitions yet shielded from identifying the cost and the streams of revenue necessary. These speeches are feel-good, even in a deadly pandemic.
But what’s clear is that the BC NDP, not unlike the federal Liberals, is using this window as an opportunity to broaden its (actually, our) benevolence without necessarily preparing to tell us how the bills will be paid and who will do so.
We can guess.
As a result, for lower- and middle-income British Columbians, the speech was syrupy. For businesses, thinner gruel.
The most idealized investment, vague as it was Monday, was “targeted” initiatives for women, young people, people of colour and gig economy and front-line workers. This will be a test of its innovative capabilities, because these are difficult to make effective.
The most dubious one is the creation of the InBC “strategic investment fund” to build some scale in companies to presumably keep jobs here. Governments are not typically wonderful at picking winners that venture capital here and abroad doesn’t first scout, and one of our larger issues is intellectual property, about which governments are beguiled.
Record infrastructure spending is coming, sure, although that comes these days with the government proviso of more expensive organized labour building it. More rental housing will be built for the “missing middle,” but in cities like Vancouver and Victoria, that middle still has to make a lot of money to occupy them.
There will be legislation to avert old-growth forestry, timely anti-hate legislation long overdue in this diverse market, and an effort the speech says will see the province depend much less on energy and resource development. Good luck on that one any time soon.
These and other expenditures are oversized, even seemingly inefficient, but their returns eventually come – particularly with workforce participation arising from accessible, lower-cost childcare.
But there was no mention of the business community’s greatest call: for a thorough review of tax competitiveness. It either isn’t the time or, more likely, there will never be one. To do so would be to make government smaller, and nothing about this pandemic is truer than the expansion of the public sector.
This couldn’t have been better timed for a majority government of this stripe.
Later on we can expect further income redistribution through taxation or even reduction of business supports. But right now safety is paramount, and to be fair, that does include businesses. This government might be in need of more business savvy, but it is not altogether oblivious to the constituency that drives growth and prosperity. It just takes it for granted and presumes a bottomless reservoir of revenue.
The speech suggested we are in the final stretch of the marathon, where it is most necessary to reach back for that last push to the finish line. But the speech's content suggests we are really closer to the starting line of some significant enhancements to programs, for which there will be prodigious expenses. It will leave some in this marathon feeling like jubilant medalists, others with participation certificates as they finish worked over and up the track.
Just don’t forget about the shoe that hasn’t dropped.
Kirk LaPointe is publisher and editor-in-chief of Business in Vancouver and vice-president, editorial, of Glacier Media.
