Strategic Thoughts

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January 16, 2002

Loose Cannons, Lost Jobs

Minister Rick Thorpe got the rubber stamp from a staged cabinet meeting to eliminate 22 government programs that he declared as offering business subsidies. Thorpe snuck his announcement out 24 hours before black Thursday when hundreds of public programs will be terminated as thousands of workers are laid off. Any backlash from those affected by Thorpe's cuts will likely be buried in the chaos created by Thursday's announcements. Anyone working in one of the 22 terminated programs now has a good idea of what to look forward to on Black Thursday.

Included in Thorpe's hit list is Summer Student Works, a program that not only helps students but also helps non-profit agencies throughout the province. To his credit, Ted Nebbeling asked whether Thorpe really meant to eliminate the entire program or just that portion that applied to for profit business. It took a couple of rounds of questions before clarification was obtained that the portion of the program applicable to non-profit organizations was subject to a second review. That might have helped the ill prepared Thorpe off the hook, but it looks like it is another case of ready, fire, aim.

The full list of axed programs includes:
Job Start (linking youth to jobs)
Student Summer Works
Shuswap Lake Ferry Subsidy
Mt. Timothy Ski Hill Road Maintenance
Green Economy Development Fund
Financial Administration Act Loan Guarantees
Financial Administration Act Fiscal Agency Loans
Job Protection Commission Remissions
Industrial Incentive Fund
Small Business Incentive Program
Technology British Columbia
Technology Assistance Program
First Job in Science & Technology
Partners in Cooperatives
Community Enterprise Micro-loans
Grazing Enhancement Fund
Shellfish Aquaculture Working Capital Fund
Fisheries Development & Diversification
Fisheries Renewal Development & Diversification

Employment in BC stood at 1,984,800 when the Campbell government was sworn in on June 5th, 2001. Statistics Canada has just reported that BC employment fell to 1,899,600 in December, 2001 - a drop of 85,200 jobs.

Many jurisdictions use policy instruments like those found in Thorpe's hit list to assist business and create jobs. The timing of eliminating those programs when BC is leading the nation with job loses is bewildering.

 

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