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

St. Joseph's Mission site is located about six kilometres from Williams Lake First Nation. (Photo submitted)
Williams Lake First Nation planning ground analysis of land near former residential school

St. Joseph’s Mission Indian Residential School operated from 1886 to 1981

Free boxes of fresh produce are currently being provided in Quesnel by the Canadian Mental Health Association of Northern BC thanks to a donation from West Fraser Mills. (File photo)
Fresh produce available for those in need in Quesnel

Donation allows Canadian Mental Health Association to provide free fruits and veggies

Elizabeth Pete is a survivor of St. Joseph’s Mission in Williams Lake. (Patrick Davies photo - 100 Mile Free Press)
WATCH: Kamloops bound convoy greeted by Canim Lake Band along Highway 97

Well over two dozen members of the Tsq’escenemc people (Canim Lake Band) showed up

Five rehabilitated grizzly bears were released this month into the Bella Coola area. The Northern Lights Wildlife Society will also be delivering 36 black bears to areas across the province where they were previously found. “They’re ready to go and they’re already trying to get out,” says Angelika Langen. “We feel good when we can make that possible and they don’t have to stay behind fences for the rest of their lives.” (Northern Lights Wildlife Society Facebook photo)
People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

A health-care worker holds up a sign signalling she needs more COVID-19 vaccines at the ‘hockey hub’ mass vaccination facility at the CAA Centre during the COVID-19 pandemic in Brampton, Ont., on Friday, June 4, 2021. This NHL-sized hockey rink is one of CanadaÕs largest vaccination centres. THE CANADIAN PRESS/Nathan Denette
‘Vaxxed to the max’: Feds launch Ask an Expert campaign to encourage COVID shots

Survey shows that confidence in vaccines has risen this spring

Port Alberni court house (Alberni Valley News)
Inquest set into 2016 death of B.C. teen after a day spent in police custody

18-year-old Jocelyn George died of heart failure in hospital after spending time in jail cell

Children’s shoes and flowers are shown after being placed outside the Ontario legislature in Toronto on Monday, May 31, 2021. THE CANADIAN PRESS/Frank Gunn
Ontario commits $10 million to investigate burial sites at residential schools

Truth and Reconciliation Commission identified 12 locations of unmarked burial sites in Ontario

Singer-songwriter Jann Arden is pictured with a draft horse. (Canadian Horse Defence Coalition)
Jann Arden backs petition to stop ‘appalling’ live horse export, slaughter

June 14 is the International Day to End Live Export of Animals

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Two hundred and fifteen lights are placed on the lawn outside the Residential School in Kamloops, B.C., Saturday, June, 13, 2021. The remains of 215 children were discovered buried near the former Kamloops Indian Residential School earlier this month. THE CANADIAN PRESS/Jonathan Hayward
Days after Kamloops remains discovery, Tk’emlups families gather to unite, move ahead

‘We have to work together because this is going to be setting a precedent for the rest of the country’

In this Saturday, May 29, 2021, file photo, people crowd the Santa Monica Pier in Santa Monica, Calif. California, the first state in America to put in place a coronavirus lockdown, is now turning a page on the pandemic. Most of California’s coronavirus restrictions will disappear Tuesday, June 15, 2021. (AP Photo/Damian Dovarganes, File)
With COVID tamed, it’s a ‘grand reopening’ in California

No more state rules on social distancing, no more limits on capacity, no more mandatory masks

Montreal Canadiens goaltender Carey Price (31) is scored on by Vegas Golden Knights defenseman Alec Martinez, not pictured, during the second period in Game 1 of an NHL hockey Stanley Cup semifinal playoff series Monday, June 14, 2021, in Las Vegas. (AP Photo/John Locher)
Habs fall 4-1 to Vegas Golden Knights in Game 1 of NHL semifinal series

Match was Montreal’s first game outside of Canada in 2021

Most Read