Jock Finlayson, Executive Vice President and Chief Policy Officer of the Business Council of British Columbia (submitted)

Jock Finlayson, Executive Vice President and Chief Policy Officer of the Business Council of British Columbia (submitted)

FINLAYSON: Government should focus on strengthening B.C.’s leading export industries

To revive the economy, this piece in the strategy is integral, writes Jock Finlayson

As Premier John Horgan and his cabinet colleagues explore options to kick-start the economy while the province slowly emerges from the COVID-19 crisis, they have several strategic options to consider. For example, they could seek to boost industries which employ the most people or those that underpin economic activity in the individual regions that make up the province. They could look to accelerate new business-startups or, instead, put more emphasis on encouraging existing B.C. companies to expand and hire more people. They may decide to double down on industries that have performed well during the pandemic – such as digital services — or, alternatively, concentrate on reviving sectors that have struggled.

One way B.C. policymakers can approach the task of economic recovery and re-building is to focus on the fundamental drivers of our prosperity, or what some analysts call the province’s “economic base.” A paper published by senior B.C. public servants in late 2019 defines the economic base as activities that “bring dollars into the provincial economy through exports of goods and services.” In a small jurisdiction like B.C., export-oriented industries are vital to sustaining and improving living standards. Without competitive export industries, B.C. would have far less capacity to pay for imports. We would also find it harder to grow local companies and the high-paying jobs which are abundant among export-capable businesses.

The industries which generate export earnings for B.C. are diverse. They include businesses in the natural resources and manufacturing sectors as well as others that produce services that are sold to out-of-province buyers. Some of these industries export internationally, while others mainly sell goods or services to the rest of Canada.

In 2019, the total value of B.C.’s exports of goods and services to all external markets – other provinces plus other countries combined – was about $118 billion. The table below divides total exports into four categories, based on the type of export (good or service) and whether it was sold internationally or to other Canadian provinces.

Goods sold to other countries are B.C.’s top source of export earnings. Natural resource-based products account for two-thirds of this category, with forestry providing the biggest slice, followed by ores and minerals, energy, and agri-food products. Several of these industries have been spearheading B.C.’s recovery from the pandemic-induced recession, with exports of lumber, minerals and natural gas all rebounding since mid-2020. Other B.C. products sold in international markets include primary and fabricated metals (notably aluminum), machinery, advanced technology products, and processed food. Our province also exports a similar mix of natural resource-based and other manufactured goods to the rest of Canada, amounting to around $13 billion in final export sales in 2018.

Turning to services, each year B.C. sells in the vicinity of $30 billion of services to other Canadian provinces. Included in this category are transportation, professional and technical services, financial services, and money spent in B.C. by both leisure travelers and business visitors from elsewhere in Canada. B.C.’s status as Canada’s dominant transportation and trade gateway to the Asia-Pacific is reflected in the high value of service exports to the rest of Canada.

B.C. also earns income by selling locally produced services to international customers. Again, these include transportation services, professional, technical and financial services, and spending by international tourists. Film and t.v. production is also on the list of international service exports. It, too, is contributing to B.C.’s ongoing economic recovery. Of note, prior to the arrival of COVID-19, film and television ranked as the fastest growing industry in the province in the decade to 2019. Education is another important international service export, with billions of dollars spent in B.C. by the 130,000 or so foreign students enrolled in B.C. colleges, universities and schools prior to 2020.

Rebuilding a strong economy after the COVID-19 crisis is a top priority for provincial policymakers. Creating an attractive business and investment environment for the industries that comprise B.C.’s “economic base” will be essential to meeting the challenge.

Jock Finlayson is executive vice president and chief policy officer of the Business Council of British Columbia

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

An Interior Health nurse administers Pfizer-BioNTech COVID-19 vaccines to seniors and care aids in Kelowna on Tuesday, March 16, 2021. (Phil McLachlan/Kelowna Capital News)
105 new COVID-19 cases in Interior Health

Just over 8,000 new vaccine doses administered in the region for a total of 158,000 to date

Sand, sandbags will be available at three different locations for Mill Creek for property owners. (Black Press Media file photo)
City prepares for possible Mill Creek flooding

The City of Kelowna is providing sand at three different locations for property owners near Mill Creek

A still from the video taken of a violent arrest on May 30, 2020 in downtown Kelowna. (File)
Kelowna Mountie charged with assault for caught-on-camera violent arrest

Const. Siggy Pietrzak was filmed punching a suspected impaired driver at least 10 times during an arrest

(Amandalina Letterio - Capital News)
Kelowna demonstrators show support for Vancouver Island logging activists

Two Kelowna men stood atop a pedestrian bridge on Harvey Avenue to raise awareness about old-growth forests

(Pexels photo)
Okanagan film boom owes to industry’s strong pandemic response: Sandhu

Vernon-Monashee MLA Harwinder Sandhu lauded the local film industry’s adaptation to the pandemic

Arlene Howe holds up a picture of her son, Steven, at a memorial event for drug overdose victims and their families at Kelowna’s Rotary Beach Park on April 14. Steven died of an overdose at the age of 32 on Jan. 31, 2015. (Aaron Hemens - Kelowna Capital News)
Moms Stop the Harm members placed crosses Wednesday morning, April 14, on Rotary Beach in memory of children lost to drug overdoses. (Aaron Hemens - Capital News)
Kelowna mothers remember children lost to the opioid crisis

It has been five years since illicit drug deaths was announced a public health emergency

Demonstrators at the legislature on April 14 called on the province to decriminalize drug possession and provide widespread access to regulated safe supply across B.C. (Jake Romphf/News Staff)
Rally calls for decriminalization, safe supply on 5th anniversary of overdose emergency declaration

From 2016 to the end of February, 7,072 British Columbians died due to overdose

A Keremeos family lost their home after a fire shortly before midnight on April 13. No injuries were reported. (Contributed)
Keremeos home destroyed in late-night fire

The family inside was unharmed

Naloxone
Op/Ed: Interior Health CEO speaks on five years of strides and challenges in overdose crisis

In 2020, close to 4,000 people across IH had access to opioid medications

Somewhere in the pack being celebrated by his teammates is Vernon Vipers forward Zack Tonelli, who scored in overtime Wednesday afternoon, April 14, to give the Snakes a 6-5 win over the Salmon Arm Silverbacks in B.C. Hockey League pod play at Kal Tire Place. (Liza Mazurek - Vernon Vipers Photography)
Vernon Vipers bite Salmon Arm Silverbacks in OT

Snakes blow 5-3 third-period lead, rally in extra time for 6-5 pod play result over rivals

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

New parking meters have been installed on Main Street, Ellis Street, Front Street, Nanaimo Avenue and Padmore Avenue in Penticton. (City of Penticton photo)
Pay parking now in effect in downtown Penticton

A spot downtown will now cost you $2 per hour

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Feb. 1, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps to 1,168 Wednesday, nearly 400 in hospital

Now 120 coronavirus patients in intensive care, six more deaths

Most Read