Tag Archives: revenue

BC, economy

BC Ferries: Losing money by cutting service

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Think of the money the government could save by closing down the Trans Canada highway! No more expensive road maintenance, and the land could be sold off to build more condos!

…Of course there may be some negatives associated with closing that highway.

Here on the coast much of our province is across water, which means the transportation system we rely on is BC Ferries.

An economic analysis shows that the expected $725k savings from recent cuts is actually causing a loss of $870k in tax revenues as tourism plunges $3.9 million following deep service cuts.

About one in five tourism- ism-based businesses in the Coast-Chilcotin region report foreclosure is a near-term possibility.

More than 40 per cent report losing most or all of their tourist bookings when agencies couldn’t sell the Discovery Coast package due to worries over ferry service.

And three in four businesses report decreased income in the year after the service cuts, according to the report by Larose Research Strategy.

Read the full article here.

Canada, debt, economy, opinion

Business Confidence dips again, now at 3 year low

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It’s not just Vancouver house sales that are heading down.

Business confidence in Canada dipped for a fourth month in a row and is now at a 3 year low.

This according to a survey from the Canadian Federation of Independent Business.

The last time it was lower was in July of 2009, when it stood at 58.6.

CFIB chief economist Ted Mallett says the index’s current position in relation to gross domestic product puts it very close to the zero-growth mark, suggesting Canada’s economy is nearing a standstill.

On Tuesday, Statistics Canada reported the economy had grown a disappointing 0.1 per cent in May, leaving the pace of the recovery at slightly below two per cent on an annualized basis.

The CFIB says confidence declined in July even in resource-rich provinces like Alberta, which saw a drop of three points to 70.3.

So taking out a home equity loan to fund your underperforming small business?  Maybe not such a good idea unless the revenue is there.