B.C. Jobs Minister Ravi Kahlon announces formation of a new Crown corporation called InBC to manage $500 million in public funds to help startup companies expand, B.C. legislature, April 27, 2021. (B.C. government photo)

B.C. Jobs Minister Ravi Kahlon announces formation of a new Crown corporation called InBC to manage $500 million in public funds to help startup companies expand, B.C. legislature, April 27, 2021. (B.C. government photo)

Opposition questions B.C.’s ‘people-planet-profit’ investment fund

Low investment returns, high tax rates for entrepreneurs cited

Despite a deficit of nearly $10 billion this year, the B.C. government has devoted a half billion dollars over three years to an Crown corporation investment fund with a broad range of goals: homegrown technology companies, high-paying jobs, a cleaner environment, promoting diversity and advancing Indigenous reconciliation.

B.C. Jobs Minister Ravi Kahlon calls InBC a “people-planet-profit” investment fund, offering “patient capital” to help startups expand rather than be bought up by international players. The investment fund was promised in Premier John Horgan’s “StrongerBC” economic recovery plan, launched last fall days before a surprise election call.

B.C. Liberal jobs critic Todd Stone, who founded a Kamloops software company before he was elected as an MLA, questioned Kahlon this week about B.C.’s competitiveness for attracting and retaining entrepreneurs and skilled workers, including tax rates on high earners.

“When the facts are that a software developer earns $27,000 less in British Columbia than they do in Ontario to start with, when we’re staring down lower income tax rates next door in Alberta — when we’re staring down no income tax in the state of Washington…. These are all our competitors,” Stone told the B.C. legislature May 18.

B.C. Green MLA Adam Olsen questioned Kahlon on the need for “strategic capital” that isn’t looking for a quick return. Olsen agreed with Stone that the COVID-19 pandemic put investment on hold around the world, and asked if now is the time for “putting $500 million of public money into a space that has billions and billions of dollars of private capital looking to be spent.”

RELATED: B.C. launches $500M fund to support green business

RELATED: Horgan calls for private investment at B.C. Tech Summit

Kahlon said the fund is to assist companies to grow without being taken over and leaving B.C. to expand. “We’ve heard the most amount of excitement from the clean tech sector, which sees an opportunity for them to access capital and stay here in British Columbia,” he said.

When InBC was launched April 27, the ministry said its target was a modest annual return of five per cent on public money invested. A board of directors has since been appointed, chaired by VanCity CEO Christine Bergeron and including former finance minister Carole James, Susan Trottier, vice president of First Nations Bank Trust, and Iglika Ivanova, an economist with the Canadian Centre for Policy Alternatives. Deputy jobs minister Bobbi Plecas and deputy finance minister Heather Wood are also directors, with a chief investment officer to be appointed this fall.

The NDP government created InBC by converting a dormant Crown corporation started by the previous B.C. Liberal administration in 2001, called the B.C. Immigrant Investment Fund. Its purpose was to receive federal money from its immigrant investor program to make low-interest loans for schools, hospitals and other infrastructure, and Ottawa ended that program in 2014.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislatureBC politics

Just Posted

The Pool at the Esquimalt Rec Centre. (Courtesy of theTownship of Esquimalt/ Facebook)
Esquimalt Rec Centre restarting everyone welcome swim times later this month

The 90-minute sessions will be on select evenings and weekends

Steve Mann and Tim Hackett consider Marigold Lands their finest development. (Rendering courtesy Marigold Lands)
Marigold residences grow more townhouses and condos in Central Saanich

50 condos, 14 townhouses up next for project adjacent to Pat Bay Highway

Norman Mogensen sets up strings for his beans in his plot in the Oak Bay community gardens. (Christine van Reeuwyk/News Staff)
Oak Bay gardener spends decades cultivating, improving daddy’s beans

85-year-old vegan part of the community gardens scene

Theatre SKAM is offering mobile, pop-up performances to Greater Victoria residents once again this summer. They’ll feature emerging artists Yasmin D’Oshun, Courtney Crawford, Kaelan Bain and Kendra Bidwell (left to right). (Courtesy of Theatre SKAM)
Theatre performances can be ordered to Greater Victoria front yards this summer

Theatre SKAM offering mobile, pop-up performances once again

Diana Durrand and Arlene Nesbitt celebrate the new artist space in 2014. Gage Gallery moves this summer from Oak Bay to Bastion Square in Victoria. (Black Press Media file photo)
Gage Gallery moving to Bastion Square

Vivid Connections, a showcase by Laura Feeleus and Elizabeth Carefoot, opens new venue June 29

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

Emily Steele holds up a collage of her son, 16-year-old Elijah-Iain Beauregard who was stabbed and killed in June 2019, outside of Kelowna Law Courts on June 18. (Aaron Hemens/Capital News)
Kelowna woman who fatally stabbed teen facing up to 1.5 years of jail time

Her jail sentence would be followed by an additional one to 1.5 years of supervision

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

The George Road wildfire near Lytton, B.C., has grown to 250 hectares. (BC Wildfire Service)
B.C. drone sighting halts helicopters fighting 250 hectares of wildfire

‘If a drone collides with firefighting aircraft the consequences could be deadly,’ says BC Wildfire Service

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

A aerial view shows the debris going into Quesnel Lake caused by a tailings pond breach near the town of Likely, B.C., Tuesday, Aug. 5, 2014. THE CANADIAN PRESS/Jonathan Hayward
Updated tailings code after Mount Polley an improvement: B.C. mines auditor

British Columbia’s chief auditor of mines has found changes to the province’s requirements for tailings storage facilities

A North Vancouver man was arrested Friday and three police officers were injured after a 10-person broke out at English Bay on June 19, 2021. (Youtube/Screen grab)
Man arrested, 3 police injured during 10-person brawl at Vancouver beach

The arrest was captured on video by bystanders, many of whom heckled the officers as they struggled with the handcuffed man

Patrick O’Brien, a 75-year-old fisherman, went missing near Port Angeles Thursday evening. (Courtesy of U.S. Coast Guard)
Search for lost fisherman near Victoria suspended, U.S. Coast Guard says

The 75-year-old man was reported missing Thursday evening

Most Read