Despite uncertainty around the provincial tax system, one of B.C.’s oldest industries said it’s committed to working with the province to expand its market presence worldwide.
The province’s coastal forest industry said Friday that it plans to work closely with the province in the coming months to develop a “Plan B” tax regime that will replace the HST, which was voted down on Friday.
Coast Forest Products Association president and CEO Rick Jeffery told Business in Vancouver the outcome of the HST vote is not what the industry would have hoped, but that it’s prepared to move forward, despite the impact it will have on companies.
“Obviously we’re disappointed,” said Jeffery. “[It means] $140 million off the bottom line, so that’s going to affect our ability to invest in the business.”
The tax repeal comes at a time when the coastal forest products industry faces challenges to its global competitiveness such as a strengthened loonie, a slumping housing market in the U.S. and concerns about China, which has been a bright spot for exports in recent years.
Still, Jeffery said there are opportunities for the industry to diversify into new value-added products and expand its market presence into the Asia Pacific region.
But the return of the PST/GST tax system sends a poor message to investors abroad.
“I think what this is is a signal to any investors that there’s a little bit of uncertainty around government tax policy.”
Joel McKay
Twitter:jmckaybiv