Finance Minister Carole James at the B.C. legislature, Nov. 26, 2019. (Tom Fletcher/Black Press)

Finance Minister Carole James at the B.C. legislature, Nov. 26, 2019. (Tom Fletcher/Black Press)

Consumer spending ‘cautious,’ B.C. finance minister says

Carole James sees housing sales pick up, resources in decline

The B.C. government continues to reduce its expected surplus this year, as consumer spending cools off and revenue from forest products and other resources declines.

Finance Minister Carole James released the province’s second quarter financial results Tuesday, showing $133 million reduction in expected forest revenues for the year ending next March. Coal, electricity and oil and gas revenues have also seen a reduction in revenue forecasts, with natural resource revenues in general down $235 million from the first quarter estimate.

Income tax revenue forecasts are up, based on B.C.’s continued strong population and employment growth, but consumer spending is slowing down. James said that is due to economic concerns, both in B.C. and globally.

Retail sales grew by only 0.6 per cent during the first six months of the 2019-20 fiscal year, continuing a slowdown from 9.3 per cent growth in 2017 and two per cent last year. The slowdown is primarily “a decline in housing-related spending and new vehicle sales,” James said.

Average home sale prices fell by 3.3 per cent up to October 2019, after a slight increase in 2018. Housing starts are up so far in 2019, with 45,112 starts so far in 2019 compared to 40,857 in 2018.

RELATED: ICBC improving, still not out of the red, minister says

RELATED: Population, low mortgage rates drive housing recovery

Revenue forecasts for the B.C. Lottery Corp. and Liquor Distribution Branch are down from the September forecast, with lower casino revenues and sluggish sales for legal marijuana in B.C. James said there is some improvement in sales from B.C. Cannabis and private retail stores, but it is too soon to say if the province will break even on cannabis sales in the current year.

“B.C. Liquor Distribution Branch net income forecast has declined $18 million due to the delayed rollout of private and public cannabis stores and lower than anticipated demand,” the second quarter report states.

James said other cost-saving measures are in the works for ICBC, which saw billion-dollar losses the last two years before a cap on “pain and suffering” awards and diversion of smaller injury claims from court took effect in April. The budget continues to carry a $500 contingency fund to cover ICBC losses this year, as higher premiums and a new risk-based rate system come into effect.

Overall, the province now projects a surplus of $148 million, down from $179 million in the September update.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

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

Just Posted

RCMP logo
Keen-eyed neighbour’s call to police helps stop South Surrey burglary in progress

Mounties were on the way before suspects triggered home alarm

Naomi Morrisseau and daughter Genesis Reign-Soldat. (Surrey RCMP photo)
Surrey mom and young daughter found and are safe, police say

Naomi Morrisseau and her daughter Genesis Reign-Soldat, age 3, had been reported missing in Whalley

File photo
Surrey RCMP arrest local man accused of threatening Councillor Jack Hundial, prime minister

Hundial said he received a death threat ‘that basically said to put a bullet in me’

Cambridge Elementary School, which was ordered closed for two weeks by Fraser Health due to a COVID-19 outbreak, is seen in Surrey, B.C., on Sunday, November 15, 2020. (Photo: THE CANADIAN PRESS/Darryl Dyck)
Surrey school that shut down due to COVID-19 outbreak set to reopen next week

District, Fraser Health has assessment team going through the school

The City of Delta is receiving $77,250 from Natural Resources Canada’s Zero-Emission Vehicle Infrastructure Program for the installation of 20 electric vehicle charging stations at public facilities in the community, like this one outside the new North Delta Centre for the Arts. (James Smith photo)
Delta to receive $77K for more electric vehicle charging stations

The federal funding will help expand Delta’s network of public charging stations by 20 in 2021

(Photo: Amy Reid)
VIDEO: 2020 Community Leader Awards recognize Surrey’s unsung heroes

They don’t often receive recognition and don’t necessarily have a high profile in the community

A new ‘soft reporting’ room is opening inside the Ann Davis Transition Society offices on Dec. 1, 2020 which is thought to be the first of its kind in B.C. (Ann Davis Transitional Society/ Facebook)
New ‘trauma-informed’ reporting room opening next week in Chilliwack

It’s a space for reporting domestic violence, sexual assault, or gender-based violence to police

The corporate headquarters of Pfizer Canada are seen in Montreal, Monday, Nov. 9, 2020. The chief medical adviser at Health Canada says Pfizer’s COVID-19 vaccine could be approved in Canada next month. THE CANADIAN PRESS/Ryan Remiorz
Health Canada expects first COVID-19 vaccine to be approved next month

Canada has a purchase deal to buy at least 20 million doses of Pfizer’s vaccine,

The online poster for Joel Goddard, who left his Willoughby home Nov. 10, 2020, has been updated by his family and friends who received word that he’s been found.
Langley man missing since Nov. 10 found alive and safe in Abbotsford

Family of the Willoughby area man had been searching for days. Police find him at Abbotsford Airport

A UBC study recommends an multi-government investment of $381 million to protect 102 species at risk in the Fraser River estuary. (Photo supplied by Yuri Choufour)
102 Fraser River estuary species at risk of extinction, researchers warn

UBC team develops $381-million strategy to combat crisis, boost economy

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

FILE – A paramedic holds a test tube containing a blood sample during an antibody testing program at the Hollymore Ambulance Hub, in Birmingham, England, on Friday, June 5, 2020. (Simon Dawson/Pool via AP)
Want to know if you’ve had COVID-19? LifeLabs is offering an antibody test

Test costs $75 and is available in B.C. and Ontario

The grey region of this chart shows the growth of untraced infection, due to lack of information on potential sources. With added staff and reorganization, the gap is stabilized, Dr. Bonnie Henry says. (B.C. Centre for Disease Control)
B.C. adjusts COVID-19 tracing to keep up with surging cases

People now notified of test results by text message

Most Read