Proposition
Whereas we are managing the province for today and tomorrow Balanced Budgets are necessary for the long-term health of the government.
Whereas we have resource wealth that represents a massive collective asset, and we are liquating said asset with every tree cut, every mineral extracted it behoves us to convert this asset to assets and avoid spending the proceeds from their sale on operations.
Solution
To satisfy this requirement we must trend toward clear delineation of resource revenue and ensure it is earmarked for capital acquisitions and new asset development – AND - effect a trend toward clear delineation of “operational revenue” and it being earmarked for “operational spending”.
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Whereas, prosperity builds prosperity, in BC we should seek to move the provincial growth to the top performing region in the G20 by aggressive use of region-specific stimulative policies that seed entrepreneurialism, provide a regional advantage and build the economy from the ground up.
Whereas in British Columbia, like many western economies, we are ageing and with an ageing population comes economic stagnation and to counter this trend we must initiate a stimulative policy that is executed at minimum cost to the government.
Whereas, the move of many into retirement has people seeking a safe place for their retirement funds and this is causing a massive amount of latent capital to sit in RRSPs generating very little good for capital’s holders and failing to find its way to the people that really need capital, entrepreneurs. Given this reality, it is necessary to engage in a form of quantitative easing that benefits in a significant way the retirees, builds out business opportunity and represents a limited cost to the government.
Region Specific Stimulative Policy
I propose the development of three bonds, BC Forestry Bonds, BC Municipal Bonds and BC Venture Capital Bonds.
The BC Forestry Bonds will be based on returns to the government gained through more aggressive forest management. There is a basket of silviculture practices that effect a 5% to 7% annual return by hastening the forest cycle to viable fibre. The proposal is to augment this return to sufficient degree that the bond offering competes effectively from the perspective of return and security. Cost recoveries come from the volume gained AND spin-off from forest improvement activity.
BC Municipal Bonds will provide a platform whereby, municipalities can at their own initiative, issue bonds to attain capital for infrastructure improvement. The Provincial government’s role here will be to supply the platform and to secure and augment returns to sufficient degree to permit the bonds to be completive in the investment space. Cost recovery is garnered to a degree through an immediate spinoff from increased economic activity and medium and long-term improvements to vital infrastructure.
BC Venture Capital Bonds will be a means by which people can issue bonds to raise capital for business start-ups. The Provincial government’s role here will be to supply the platform and to secure and augment returns to sufficient degree to permit the bonds to be completive in the investment space. Cost recovery in the short term comes from increased economic activity and regional advantage (an in-migration of capital) and in the medium and long term an innovation-based economy with a larger tax base.
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CLICK HERE FOR - LIBERAL LEADERSHIP 7 POINT PLAN
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I have had some challenges with computer security, please notify me if you see anything untoward - thank you.
I have had some challenges with computer security, please notify me if you see anything untoward - thank you.
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