The progress made on making B.C. one of the world's most desirable places to invest could all be for naught if the NDP wins power in the next provincial election, Liberal government finance minister Kevin Falcon warned Monday while in Prince George.
The province enjoys a AAA credit rating, is home to the lowest personal income tax rate in Canada and, at 10 per cent, has one of the most competitive corporate income tax rates in the G7, Falcon said.
But the NDP said it will raise the corporate tax rate and tax high-income earners if voted into power, "which is a real red flag for investors and exactly what drove B.C. into the position of being a have-not province in the 1990s," Falcon said in an interview.
He also told Prince George Chamber of Commerce members during a lunchtime speech that the NDP had imposed a corporate capital tax while in power, and if reintroduced, would drive away investment.
Reached Monday, NDP finance critic Bruce Ralston questioned the Liberals' track record and pointed to a B.C. Progress Board report that ranked the province fourth in Canada in terms of its economy, fifth in personal income and seventh in jobs - all declines from 10 years ago.
Ralston said the NDP would pursue a more developed export strategy.
"Somewhat like New Zealand has as a country where you have targets by sector and a very detailed plan rather than just simply talking about it," Ralston said.
As it stands, Falcon said B.C. is in a strong position to draw investment and wants the world to know about it.
"We are going to be extremely aggressive in marketing B.C. as a safe haven to invest," Falcon said.
He also promised that the province's budget will be balanced by 2013-14 and even under current circumstances, has a debt-to-GDP ratio of 17.5 per cent, compared to 35 per cent for Canada as a whole and significantly higher rates in Europe.
"Investors are no longer willing to underwrite poor fiscal discipline," he said.
Falcon asserted that anyone making $60,000 a year will feel the pinch in terms of higher income tax, not just those pulling down triple figures, if NDP wants to balance the budget and increase spending at the rates it says it will.
The Liberals hold a 14-seat margin over the NDP in the legislature.
Voting for the B.C. Conservatives would be counterproductive, Falcon said in an interview after the luncheon, because it would only help the NDP win power.
"That's why we want to build a big tent party," Falcon said.
B.C. Conservative leader John Cummins dismissed Falcon's comments as "thin gruel" and claimed British Columbians pay the highest taxes west of Quebec once sales tax and carbon tax are taken into account.
