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New tech minister promises more capital for B.C. startups

Andrew Wilkinson, a lawyer who trained as a physician, says B.C. is working to create equal entrepreneurial opportunities for all tech sectors
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B.C. government not planning to get into tax incentive war with Ontario, Quebec to prop up the province’s gaming sector

BC’s mining, forestry and oil and gas sectors still get much of the headline ink, but the province’s high-tech sector accounts for more jobs than all three.

The appointment of a political neophyte to the newly reorganized Ministry of Innovation, Technology and Government Services might therefore seem questionable. And Andrew Wilkinson, recently elected MLA for Vancouver-Quilchena, is certainly a newcomer to the tech sector.

Wilkinson originally trained as a physician before going into law, and he served as B.C.’s deputy minister of economic development from 2003 to 2006.

He recently spoke to Business in Vancouver about his government’s plans for the province’s tech sector.

Cabinet Q&A

Q: The B.C. high-tech sector is generally thriving, but the biotech and gaming sectors are struggling. Should we be propping up these sectors with tax breaks or other incentives?

A: The working premise is that government should not be picking winners and losers. What we do is provide an environment and framework for entrepreneurs to succeed. And so there’s equal access to all sectors to some things like small-business venture capital, and we leave it up to those entrepreneurs to make their own decisions.

Q: According to DigiBC, Canada is ranked third in the world for production of interactive entertainment and B.C. was ranked first in Canada prior to 2008. But B.C. is now losing that lead to Ontario and Quebec, which has led to calls for tax parity with those provinces.

A: The idea that we should get into a race with Ontario and Quebec for credits for certain sectors is not one that our government has subscribed to. We’d much rather talk about a stable playing field across Canada for these sectors, so that they can focus on growing their business in a stable environment rather than this race to the bottom in tax credits.

Q: It’s estimated that 95% of our technology and digital media companies are startups or small businesses. But they have little access to the venture capital needed to grow. What can be done to increase the flow of capital here?

A: We’re fully aware of the need for access to capital. One of the items in my mandate letter is to expand the value of the small-business venture tax credit program in the future – set for 2015-16 – by a further $5 million in credits, and to work with the BC Technology Industry Association to encourage the federal government to adopt a similar program so that we can double the credits that are available in B.C.

Q: Telus has been bringing broadband Internet to remote communities, thanks to partnerships with the B.C. government, like the $48.8 million Pathways to Technology project. Will these partnerships continue in the coming era of belt-tightening?

A: That remains a priority for our government. We’re continuing to work busily toward getting broadband as far into the corners of British Columbia as we can. We’re going to do whatever we can to make sure that every community in British Columbia is linked to broadband.

Q: What other policies is your government working on that assist B.C.’s tech sector?

A: We’re going to be continuing the commercialization voucher program that’s organized through Mitacs. Thirty-seven businesses have retained graduates.

Q: Twitter and Facebook have both set up development centres here, which has led to an interesting criticism: that they are just here to poach skilled immigrant workers for Silicon Valley, because it’s easier to get a working visa in Canada than in the U.S. Does that concern you?

A: No, I don’t think we need to spend our time worrying about success. When we have major international companies coming here to set up development facilities because they recognize the talent pool here, and they recognize the Canadian and British Columbia policy frameworks are good for them, that’s good for all of us. •