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

Brandon Hobbs (turquoise shirt), brother of missing Abbotsford man Adam Hobbs, gathers with other family and friends to distribute posters in Chilliwack on Thursday, June 17, 2021. (Jenna Hauck/ Chilliwack Progress)
Search efforts expand to Chilliwack and beyond for missing Abbotsford man

Family, friends put up posters in Chilliwack, Agassiz, Hope for missing 22-year-old Adam Hobbs

poster
Drop-in Covid vaccine clinic in Mission June 17-18

Neighbourhood clinics complement appointment-based clinics currently operating in Mission

Stock photo by LEEROY Agency from Pixabay
Drop-in vaccination clinics slated in Abbotsford for construction workers

Among three sites in Lower Mainland holding no-appointment clinics in June and July

A CH-149 Cormorant from 442 Transport and Rescue Squadron out of CFB Comox on a training exercise in Chilliwack on June 16, 2021. (William Snow photo)
VIDEO: Military search and rescue training in Chilliwack Wednesday

CH-149 Cormorant and CC-115 Buffalo from CFB Comox participated in downed aircraft rescue simulation

(Black Press Media files)
Get ready for mosquito season

Fraser Valley Regionsl District has already taken measures to curb the number of mosquitos

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

Most Read