For Immediate Release
March 22, 2018
VANCOUVER, B.C. — The Greater Vancouver Board of Trade welcomes today’s announcement by the B.C. government to improve our jurisdiction’s competitiveness for bringing British Columbia LNG projects across the finish line.
The revised tax measures in today’s announcement will help put B.C. on a globally-competitive footing for the LNG investments that have many other options around the world. The elimination of the LNG income tax, not faced by project proponents anywhere else in the world, is the centerpiece of the changes. Additional measures announced by the government included placing LNG plants on an equal tax footing with other manufacturing sectors for PST treatment, and establishing that the rate for electricity by LNG plants’ will be lowered to the standard industrial rate.
The carbon tax for the liquefaction terminals, the most stringent in the world and designed to drive technological innovation to further reduce emissions over time, appears to remain in line with B.C.'s overall carbon tax framework.
Iain Black, President and CEO of the Greater Vancouver Board of Trade, said “The LNG framework announced today is a necessary step in the right direction to make B.C. LNG projects attractive and globally-competitive.” He continued, “We have every reason to be optimistic that major projects, like the $40 billion LNG Canada proposal, among others, will be able to make positive Final Investment Decisions. This will unleash hundreds of millions of dollars in project construction, investment, revenues to the Crown, and a new lease on life for British Columbia’s vast upstream natural gas resources in the northeast.”
Should LNG Canada and other projects make FIDs in the near future, the implications for British Columbia’s reputation as an attractive jurisdiction to invest and build major projects will be profound. There will be substantial economic benefits for First Nations partners, and B.C. businesses — including those in greater Vancouver — who will have opportunities in the construction and ongoing operations phases.
The establishment of a sizeable LNG industry speaks to the significant role B.C.’s natural gas can and should play in addressing the global climate challenge, and will serve as a model for the responsible development of our natural resources.
About the Greater Vancouver Board of Trade:
Since its inception in 1887, the Greater Vancouver Board of Trade has been recognized as Pacific Canada's leading business association, engaging members to impact public policy at all levels of government and to succeed and prosper in the global economy. With a Membership whose employees comprise one-third of B.C.'s workforce, we are the largest business association between Victoria and Toronto. We leverage this collective strength, facilitating networking opportunities, and providing professional development through four unique Signature Programs. In addition, we operate one of the largest events programs in the country, providing a platform for national and international thought leaders to enlighten B.C.'s business leaders.