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[Report of the Ministry of Industry and Small Business Development for the fiscal year ended March 31,… British Columbia. Legislative Assembly 1981

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 To the Honourable
DON PHILLIPS,
Minister of Industry and Small
Business Development, Victoria,
British Columbia.
SIR:
I have the honour to submit herewith
the Report of the Ministry of Industry
and Small Business Development for
the fiscal year ended March 31,1980.
A. L. PEEL
Deputy Minister
Ministry of Industry and
Small Business Development
To the Honourable
HENRY P. BELL-IRVING,
D.S.O., O.B.E., E.D.
Lieutenant-Governor of British
Columbia
MAY IT PLEASE
YOUR HONOUR:
I beg to submit the Report of the
Ministry of Industry and Small
Business Development for the fiscal
year ended March 31,1980.
DON PHILLIPS
Minister of Industry and
Small Business Development
 INDEX i.     BUSINESS AND INDUSTRIAL DEVELOPMENT BRANCH
□ Industry Development	
□ Trade Development and Capital Projects	
□ Business Development	
2.    ECONOMIC ANALYSIS AND RESEARCH BUREAU
□ Economic Analysis Division	
□ Special Projects Division	
□ International Economic Relations Division	
3.    PROGRAM IMPLEMENTATION AND COORDINATION BRANCH . i
□ Program Design and Project Appraisal Division  i
D Community Economic Development Services Division  IC
□ Industrial Development Subsidiary Agreement (IDSA)  1(
□ Program Coordination Division  12
4.    CENTRAL STATISTICS BUREAU  U
□ Provincial Economic Performance  IA
□ Regional Statistics  If
□ Business & Industry Statistics  IC
□ Statistical Services  1(
5.    SMALL BUSINESS DEVELOPMENT BRANCH  lc
□ Business Enterprise Services  \c
□ Financial Assistance Services  2C
□ Management Development Services  2C
□ Research and Development Services	
       2C
6
BRITISH COLUMBIA HOUSE, LONDON	
       22
7
GRANTS 	
       21
8.
INDUSTRY AND SMALL BUSINESS
DEVELOPMENT STAFF COMPLEMENT	
       28
9
ORGANIZATION	
       3C
10.
PUBLICATIONS	
       31
 OBJECTIVE
The Business and Industrial
Development Branch, operating
from Vancouver, pursues three
major objectives: to expand and
diversify the existing industrial base,
to increase the production and export of British Columbia goods and
services, and to attract and encourage
new investment into the Province.
In order to accomplish these
objectives Division personnel work
in three groups: Industry Development, Trade Development and
Capital Projects, and Business
Development
INDUSTRY DEVELOPMENT
The Industry Development group
works closely with the Province's
manufacturers, assisting them to develop their full potential. The group
is extensively involved in export
marketing activities, productivity
improvement, and encouraging the
development of secondary industry.
During the year, staff members
met with over 5,500 B.C. companies
who were seeking advice or assistance on expanding their operations.
The group administers several
programs to assist British Columbia
manufacturers and service companies in developing new markets.
A Market Development Program
helps firms investigating new export
market opportunities by providing
return economy air fare to a maximum of $1,500 to the designated
market for a company or association
representative. In 1979,137 British
Columbia companies took
advantage of this program.
An Incoming Buyers Program
assists firms in attracting potential
buyers from outside the Province.
Again the assistance consists of the
return economy air fare for the
potential buyer to a maximum of
$1,500 and the Ministry will encourage
and assist the buyer to visit as many
other local companies as appropriate. In 1979,27 British Columbia
companies participated in this
program.
A trade show program provides
financial assistance and organizing
expertise to companies participating
in trade shows outside of British
Columbia. In 1979,74 companies utilized this program and four major
trade shows in which the Ministry
was very active in sponsoring
exhibits were:
Toronto: Hotel/Restaurant
Equipment and Products
New Zealand: Fishing Equipment
San Francisco: Giftware
Los Angeles: Book Publishers
TRADE DEVELOPMENT AND
CAPITAL PROJECTS
The Trade Development and
Capital Projects group identifies key
capital projects around the world
that offer major opportunities for the
sale of British Columbia goods and
services. The group also maintains
close liaison with international financing agencies to ensure that British
Columbia companies obtain maximum advantage from projects that
they finance.
During 1979 Latin American and
U.S. Market Specialists joined the
South East Asian, Australasian and
Middle Eastern specialists already
engaged in identifying export
opportunities.
During 1979 the specialists met
with several hundred British
Columbia companies to review
exporting plans and opportunities.
Seven opportunity identification missions led to five Ministry sponsored
trade missions.
Arrangements were also made
for the Ministry to sponsor incoming
BUSINESS AND
INDUSTRIAL
DEVELOPMENT
BRANCH
missions from Mexico, Malaysia,
China and Holland. The visiting
businessmen and government officials were shown British Columbia
technology and equipment which
matched their needs.
The group also sponsored or co-
sponsored trade oriented seminars
in Vancouver, Langley, Nanaimo and
Vernon. Topics included: "Business
Opportunities in Latin America"
"Foreign Investment in China"
"Canadian International Development Agency—Industrial Co-operation Program" and "Export Canada
79—Selling in the U.S. Market?
EXPORT ASSISTANCE RESULTS
The Trade Development and
Capital Projects and Industry Development Groups cooperate closely to
provide Ministry sponsorship and
coordination of trade missions to
countries outside of Canada.
In 1979, fifteen trade missions were
conducted to introduce British
Columbia companies to new sales
opportunities. Over 100 companies
participated. The missions were:
Brazil: Environmental Management
South East Asia: Aircraft Maintenance
Chile and Argentina: Forest
Equipment
San Francisco: Electronics
Japan: Fish Products
Scotland: Offshore Petroleum
Technology
Germany: Plastic Products
Germany: Food Products
Germany: Sporting Goods
Holland: Timberframe Housing
Alaska/Yukon: Construction Services
California: Capital Projects
Australia: Industrial Equipment
Germany: Joint Venture and Licensing
United States: Health Care
  These missions and related
activities ultimately resulted in an
increase of exports of British
Columbia manufactured goods of
580 million.
Some of the key contracts signed
were:
Two contracts to supply housing
into Saudi Arabia, total value:
519 million.
3 Three sawmills for Malaysia,
sstimated total value: $5 million.
TJ Sawmill and logging equipment
:or Central and South America,
stimated value: $15 million.
3 Timberframe housing components
for Holland, estimated value:
53.7 million.
3 Design and engineering services to
Baudi Arabia, value: $4.5 million.
3 Construction contracts in the
Vukon, value: $10 million.
3 Aviation servicing and maintenance equipment for South East
4sia, value: $300,000.
BUSINESS DEVELOPMENT
The Business Development
jjroup is responsible for encouraging
lew business investment in British
'olumbia by both established com-
Danies and firms located elsewhere
n Canada and abroad. Emphasis is
Dlaced on encouraging local companies to develop joint venture or
icensing arrangements and on
dentifying import replacement and
jublic purchasing opportunities. The
^roup also assesses the viability of
business proposals made by foreign
ntrepreneurs interested in
migrating to British Columbia.
During the year the Business
Development group coordinated
/isits by incoming missions from
\ustria, Germany, the Netherlands,
China and Italy. These visits focused
on the exchange of technology and
on joint venture opportunities in
British Columbia.
As a result of the group's efforts,
over $20 million in new investment
and additional entrepreneurial
capital of $25 million flowed into
British Columbia in 1979.
The Business Development
group has also been active in ensuring maximum benefits to British
Columbia from Canadian defence
contracts. During the year sub-contracts of more than $6 million were
awarded to British Columbia aerospace firms and licensing
agreements with a value of more
than $2 million were negotiated.
Canada will soon spend over $4
billion to purchase new fighter aircraft, resulting in several hundred
million dollars in benefits to British
Columbia. The Business Development group organized two British
Columbia mini-missions which visited major aircraft contractors in the
United States and Eastern Canada to
apprise them of our expertise.
The Business Development
group, in cooperation with the Program Implementation and Coordination Branch in Victoria, also
provides assistance to Regional
Economic Development Commissions. The prime role of these commissions is to coordinate and promote
economic activities in the respective
regions of British Columbia. There
are currently sixteen commissions in
place and four more are anticipated.
During the year, the commissioners
made over 2,800 calls on local businesses and assisted companies
applying to government assistance
programs. In cooperation with the
Business Development group, the
commissions were instrumental in
encouraging more than $90 million
in new investment in British
Columbia.
SPECIAL EVENTS
The Trade and Industry Division
assisted in arranging several seminars to inform British Columbia
companies on changes to international trade and tariffs agreements.
During 1979 incoming missions
from South East Asia, Latin America
and Europe were welcomed to British
Columbia. These visits were a direct
result of export promotion activities
and helped to better inform potential
customers of British Columbia's
industrial capabilities.
Senior staff from the Division
were also involved in the study of
the Vancouver Trade and Convention
Centre and participated as observers
on the Federal Enterprise Development Program Board of Directors.
 ECONOMIC
ANALYSIS AND
RESEARCH
BUREAU
OBJECTIVE
The objective of the Economic
Analysis and Research Bureau is to
assess, for Cabinet, government poli
cies and initiatives related to trade,
commerce and industrial development; to perform sectoral, regional
and socio-economic analysis of the
British Columbia economy; and to
provide analytical support to other
Branches of the Ministry and other
Ministries. The Bureau achieves
these objectives through three Divisions: Economic Analysis, Special
Projects and International Economic
Relations.
ECONOMIC ANALYSIS DIVISION
The Economic Analysis Division
performs economic research and
policy analysis and undertakes long-
term planning and forecasting
activities. The Division is largely
responsible for the development
of the Province's economic
and industrial strategies. The
strategy's goals are to facilitate the
growth of employment and real incomes, improve economic efficiency, stabilize prices, and achieve
balanced regional development.
Using its economic analysis and
forecasting the Division supplies profiles and policies for individual
sectors and regions which are
woven into the strategy framework.
S*
mm
 ACTIVITIES
A primary function of the Division
is to develop sectoral strategies in
harmony with the overall British
Columbia economic and industrial
strategy. Important projects included
the preparation of sector profiles and
strategy papers for energy, selected
metals and minerals, transportation,
coal, research and development, the
forest industry, commercial fisheries,
estuary development and resource
roads. Market studies have been
undertaken for a number of commodities important to the provincial
economy. One example is the
"Pacific Rim Metallurgical Coal
Market Survey','which was prepared
in cooperation with the Federal
Department of Industry, Trade and
Commerce. Continuing liaison with
industry and the federal government
is an important component of
market analysis.
Regional research is another basic
activity. The British Columbia
economy comprises diverse regional
structures and development patterns
which warrant special consideration.
Projects have included developing a
resource infrastructure policy,
providing assistance in developing
impact guidelines for major developments to the Environmental Land
Use Committee and reviewing the
recommendations of the Royal Commission on the British Columbia Railway. The Division has supplied
advice on regional development
proposals and compiled numerous
economic reviews.
Briefing notes and background
papers are prepared for the Minister
and Cabinet members for economic
missions to Europe, the far east, and
elsewhere; and for federal-provincial
and inter-provincial Ministers'
conferences.
Division staff have participated in
socio-economic and manpower
evaluations including several studies
for the inter-ministerial Equal
Employment Opportunities Committee. Community impact studies of
major projects were also conducted.
SPECIAL PROJECTS DIVISION
The Special Projects Division
plans, coordinates, and directs Ministry development projects in the
natural resource, processing, and
manufacturing sectors.
Close liaison is carried out with
other branches of the Ministry, other
ministries, consultants and business
organizations in order to coordinate
formulation of economic development objectives for British Columbia.
The Division prepares the Monthly
Bulletin of Business Activity, British
Columbia Economic Activity Review
and Outlook, and other sectoral,
regional and foreign trade
publications.
ACTIVITIES
The Division is conducting a
feasibility study for non-ferrous metal
smelting facilities in British Columbia. An investigation of British
Columbia-China trade opportunities
is also underway. A study of capital
markets in British Columbia was
completed and passed on to the
Ministry of Consumer and Corporate
Affairs.
Division personnel are members
of the IDSA (Industrial Development
Subsidiary Agreement) and TIDSA
(Travel Industry Development
Subsidiary Agreement) Research
Technical Sub-Committees.
INTERNATIONAL ECONOMIC
RELATIONS DIVISION
The International Economic
Relations Division identifies policies
for international trade which will encourage industrial development and
thus produce higher real incomes for
British Columbians.
ACTIVITIES
The Division made strong representation to Ottawa on British
Columbia's position on trade policy
during the long Multilateral Trade
Negotiations (MTN) for reduced
trade barriers, which have taken place
under the General Agreement on
Tariffs and Trade (GATT). Since the
signing of the trade accords in
Geneva, the Division has begun an
in-depth assessment of their impact
on the British Columbia economy.
This effort is being coordinated with
the other western provinces, as
agreed by the Western Premiers at
their conferences in 1978. The Division is monitoring the implementation of the MTN decisions by other
nations with particular attention
being paid to the effects of the U.S.
Trade Agreements Act on British
Columbia exports.
The Division, in conjunction with
the Business and Industrial Development Branch, is formulating a Pacific
Rim trade development strategy.
British Columbia companies facing
difficulties in maintaining their access
to export markets are being assisted
with up to date information and
guidance.
 0,   ^_ 0
"
 OBJECTIVE
The objective of the Program
Implementation and Coordination
Branch is to negotiate, coordinate
and implement intergovernmental
and joint government-industry programs, and to provide financial management for these programs. The
Branch also performs analyses of a
financial, accounting, and taxation
nature in response to requests from
government Ministries and agencies.
Finally, the Branch has been
designated responsibility for evaluating applications to the Foreign
Investment Review Agency which are
pertinent to the Province and for performing research on overall foreign
investment levels and requirements.
PROGRAM DESIGN AND
PROJECT APPRAISAL DIVISION
This division provides analytical
input for the development and management of intergovernmental and
joint government-industry economic
development programs. Technical
information for economic, financial,
and resource management submissions to the Minister and Cabinet is
also prepared. The division evaluates
and recommends amounts of cost-
shared funding for major development projects. The division also conducts program management and
PROGRAM
IMPLEMENTATION
AND
COORDINATION
BRANCH
evaluation activities. Finally, the
division participates for the Province
in the Foreign Investment Review
Act process.
ACTIVITIES
Since the 1974 signing of the General Development Agreement (GDA)
between the Ministry and the federal
Department of Regional Economic
Expansion (DREE), the Ministry has
signed nine major subsidiary agreements with DREE. These agreements
are equally cost-shared by the two
levels of government. The currently
active agreements are:
 □ North East Coal Subsidiary Agreement, Phase II (1977-1978)
(extended to 1980) $10 million
□ Agriculture and Rural Development Subsidiary Agreement
(1977-1982) $60 million
□ Industrial Development Subsidiary Agreement (1977-1982)
$70 million
□ Travel Industry Development Subsidiary Agreement (1978-1983)
$50 million
□ Intensive Forest Management
Subsidiary Agreement
(1979-1984) $50 million
□ Castlegar Water Supply
Agreement (1978-1983)     $3 million
Subsidiary agreements have
brought a total joint commitment of
more than $280 million to the
Province.
Program development activity
during 1979 included the formulation
of the $50 million Intensive Forest
Management Subsidiary Agreement
which was signed May 15,1979.
FOREIGN INVESTMENT REVIEW
The federal Foreign Investment
Review Act provides for consultation
with provinces affected by investment proposals reviewed under the
Act. The Division is responsible for
reviewing foreign investment proposals and for recommending a
provincial position to the Minister
and Cabinet.
During the 1979 calendar year, a
total of 141 cases were handled. Of
these, 58 came under the short
review process (for businesses with
gross assets of less than $2 million
and fewer than 100 employees), and
83 under the more detailed regular
review process. Of the 83 regular
cases, 44 were allowed and 12 were
disallowed, 11 were withdrawn and
16 are still under review. Of those
approved 31 involved the acquisition
of existing businesses and 13
involved the establishment of new
businesses. A significant number of
these approvals were made subject
to undertakings which will increase
their benefit to British Columbia and
Canada. Many jobs were created or
assured through responsible foreign
investment.
In addition, the Division studied
overall investment levels and requirements, and closely monitored
the federal review agency to ensure
that the Province's economic interests
were respected.
The Program Design and Project
Appraisal Division is responsible for
provincial participation in the Cooperative Overseas Market Development Program. This program, aimed
at increasing export sales for specific
Provincial forest industry products, is
jointly funded by the Ministry of
Industry and Small Business
Development, the federal Department of Industry, Trade and Commerce and the Council of Forest
Industries of British Columbia. The
1979 Ministry contribution was
$1,116,000.
Representatives of the Division
participated in the administration of
the Agriculture and Rural Development Sub-Agreement and the Special
Agriculture and Rural Development
Agreement and one representative is
a member of a three man intra-
provincial agency responsible for
overseeing the operations of the
Burns Lake Native Development
Corporation.
COMMUNITY ECONOMIC
DEVELOPMENT
SERVICES DIVISION
The objective of Community
Economic Development Services is tc
encourage new industrial development capacity at the community level
by providing for the planning and
implementation of programs coordinating public and private sector
actions.
Working with municipal and
regional governments, the Division
emphasizes close liaison with the
needs of the private sector. The
means for realizing the Division's
objective include the $70 million
Industrial Development Subsidiary
Agreement. It provides programs for
Research, Industrial Parks, Industrial
Malls, Advance Factory Space,
Industrial Commissions, and Assistance to Small Enterprises. Other
activities include participation in
municipal, regional and provincial
land use planning processes, providing resources and guidance to
municipal and regional governments
in their respective industrial developments, and assisting the private
sector with its industrial land needs
INDUSTRIAL DEVELOPMENT
SUBSIDIARY AGREEMENT
(IDSA)
In 1979 the Division undertook
the administration of this equally
cost-shared, federal-provincial
agreement. Signed in 1977, this 5
year program now has commitments
in excess of $41 million of which $20
million were committed in the 1979
fiscal year. There are six program
components:
10
 RESEARCH
To date, 36 studies have been
funded, covering a variety of
subjects including industrial land
analyses, feasibility reports, socioeconomic impact studies and regional profiles. In recognition of the
needs of the private sector the program has been expanded to fund up
to 50% of the costs of market and
economic feasibility studies for
individual businesses.
ECONOMIC DEVELOPMENT COMMISSIONS
To date, 16 commissions are in
place, all supported by a cost-sharing
arrangement with Regional District
governments. In cooperation with
the Ministry's Trade and Industry
Division in Vancouver, this program
sponsors the activities of each individual commission in the promotion
of economic development at the
regional level.
INDUSTRIAL PARKS AND SITES
IDSA has assisted nine industrial
land developments since the signing
of the agreement, increasing the
Province's supply of serviced industrial land by 792 acres. It is estimated that this new industrial land
will accommodate 8,000 new jobs
when filled and will place the Province on a more sound competitive
footing with its neighbours to the
south and east. Two new major
projects valued at over $3 million
were approved in 1979. One, at
Campbell River, will provide over 33
acres of serviced industrial land.
INDUSTRIAL MALLS
A $1.2 million low interest loan
was approved for the construction of
a Marine Technology Centre adjacent
to the Institute of Ocean Sciences at
Patricia Bay near Victoria. On completion, this facility will accommodate up to 175 technical and
professional people engaged in lygh
technology marine research and
development.
 ADVANCE FACTORY SPACE
A $1.6 million loan was made
available to an Okanagan Valley
Indian Band to establish a new winery
creating 25 new full-time jobs.
ASSISTANCE TO SMALL
ENTERPRISE PROGRAM
The Assistance to Small Enterprise Program (ASEP) continues to
be an unqualified success in the
Province. It is designed to assist
small businesses in the manufacturing
and processing sectors, in recognition
of the fact that more than 85% of the
industrial firms in the Province have
fewer than 50 employees. The
success and popularity of this program has resulted in additional funding of $5,000,000 being made available. The program has received 878
applications and assistance has been
approved for 362 projects. New
facility projects account for approximately 65% of these applications
while modernizations and expansions account for the remaining 35%.
A total of $6,943,902 has been approved to date, and it is projected
that this assistance will create 1,637
new jobs in the manufacturing and
processing sector.
Also under the IDSA, $3 million
of federal-provincial money was
committed for a new water system
for the City of Castlegar to assist the
community in achieving its industrial
development potential. This was
augmented by a $1.5 million provincial grant sponsored by the Ministry.
PROGRAM COORDINATION
 DIVISION	
The major activity of the Program
Coordination Division in 1979 was
the implementation of the Travel
Industry Development Subsidiary
Agreement (TIDSA). Signed in
October 1978, implementation of the
$50 million five year agreement is
taking place in conjunction with the
Ministry of Tourism. The agreement is helping the Province to take
advantage of the employment and
income potential of its unique
natural attractiveness as a tourism
destination.
TRAVEL INDUSTRY DEVELOPMENT
SUBSIDIARY AGREEMENT
To date, more than 1,000 enquiries
for assistance have been received
under the five program components:
PLANNING
The studies and planning
program helps develop long-term
strategies, feasibility and opportunity
studies. In 1979, several industry
studies were completed including a
Province-wide assessment of travel
industry development opportunities.
Several specific opportunity identification studies were nearing completion at year end including such
tonics as heli-skiing, river rafting,
and coastal cruising. These studies
are expected to be available for distribution in the spring of 1980.
INDUSTRY ORGANIZATION
The industry organization program involves the development of
structures needed to coordinate
travel industry associations. During
the year, an analysis of the organization of the travel industry was
completed.
INDUSTRY UPGRADE
The industry upgrade program
provides financial assistance to upgrade travel industry facilities.
Through this program, 57 applicants
were offered assistance totalling
$6.7 million.
TRAVEL GENERATORS
The travel generators program
helps create, improve, and expand
attractions which will entice tourists
to stay longer in the Province. Seven
applications were approved under
this program during the year representing total assistance of $1.9 million.
SKI DEVELOPMENT
The skiing development program
aids in the development of world-
class ski resorts offering year-round
multi-recreational facilities. Applications approved under this program
during the year totalled $1.5 million.
This is in addition to more than $9
million allocated for infrastructure
improvements to assist the resort
municipality of Whistler in becoming
a world class, year round destination
resort.
A major destination ski resort project in 1979/80 was the development
of the new Mount Washington Ski
Resort on Vancouver Island. The
Mount Washington project has excellent potential as a four season
employer and over $1 million of
TIDSA money was used for improvement of roads, installation of parking
areas, hydro electric power, water
supply and distribution and sewage
collection and treatment systems.
12
  CENTRAL
STATISTICS
BUREAU
OBJECTIVE
The objective of the Central Statistics Bureau is to satisfy the requirements of government, business, and
the British Columbia public for statistical information and forecasts on the
economic and social characteristics
of the Province and its regions. This
is achieved through the utilization of
existing data sources and the development of new statistical programs,
including the use of administrative
data for statistical purposes. In addition, the Bureau provides technical
statistical advice and services to
government ministries including the
provision of quantitative analysis
based on mathematical and
computer models.
During the past year, the Central
Statistics Bureau has progressed towards realizing its mandate as a
service agency for the entire
Government as outlined in the British
Columbia Statistics Act of 1977. The
Act provides for access, under strict
confidentiality safeguards, to data
not previously available to the provincial government, including data
collected and maintained by Statistics
Canada. The Act also provides for the
adoption of regulations to establish
appropriate standards for statistical
activity in government and for the
avoidance of duplication in data
gathering by different ministries.
ACTIVITIES
The Bureau's work can be partitioned
into four activities on the basis of the
principal main uses of its services.
PROVINCIAL ECONOMIC
PERFORMANCE
Considerable progress was made
during 1979 in preparing statistics so
as to measure the economic performance of the Province. A set of
annual current dollar income and
expenditure accounts was prepared
covering the period 1961 to 1978, and
work is underway to provide similar
information on a quarterly basis and
in constant dollars. Progress was also
made in developing an econometric
model to forecast short and medium
term levels of economic activity in
the Province.
During 1979, the Bureau continued
to work closely with Statistics Canada
in order to expand and refine the information available to measure provincial economic performance. A
cooperative venture with a high
potential pay-off was undertaken in
the area of provincial trade where a
senior official of the Central Statistics
Bureau was assigned to Ottawa. He
successfully directed a Federal-
Provincial program to develop measures of international and interprovincial trade in goods and services.
 REGIONAL STATISTICS
This activity serves needs for
quantitative information about the
many economic, administrative, resource and political regions of the
Province. During 1979 a system was
designed and implemented which is
capable of sorting and aggregating
individual records into a variety of
geographical groupings. The system
requires that individual records
carry a postal code and that "translators" are available which link postal
codes to the required groupings. The
translation file is still being expanded,
but the capability already exists to
aggregate postal coded records to
15
 economic regions, school districts,
human resource districts, and a
variety of Census of Population areas.
The major thrust of the Bureau, in
terms of developing new sources of
regional statistics during 1979, was to
assess the feasibility of using information contained in administration
records rather than implementing
surveys which impose a response
burden on the people and businesses of the Province. It is likely that
administrative sources will prove to
be invaluable in the development of
regional population estimates and
projections and in monitoring regional trends in the supply and
demand for labour.
Another key effort of the Bureau
during 1979 was to enter into selected data sharing arrangements with
Statistics Canada under Section 10 of
the Federal Statistics Act and Section
11 of the British Columbia Statistics
Act. Arrangements of this kind
permit the Bureau to have access to
survey responses without adding to
the burden of surveys on the Province. Responses can be processed
and aggregated in such a fashion as
to produce regional and other types
of distributions that are not directly
available from Statistics Canada.
During 1979, considerable progress
was made in developing regional
manufacturing, investment and
employment information via data
sharing agreements.
BUSINESS AND
INDUSTRY STATISTICS
This activity is designed primarily
to serve the needs of ministries and
agencies of the Government that
have specific missions for private
sector development. The statistics
developed under this activity are
also of direct value to decisionmakers in the private sector.
16
Although this activity is relatively
new, considerable progress was
made during 1979 in several areas.
Work began on the development of a
comprehensive register of all incorporated and unincorporated businesses in British Columbia. When
completed, the register will contain a
variety of information about each
establishment including names,
addresses, type of business, size,
inter-corporate links, location of
head office, etc. Certain confidentiality restrictions will apply to the
register, but in general, much of the
information is derived from publicly
available sources. The register will
be invaluable in a number of applications, including support to the
Business Opportunities Sourcing
System (B.O.S.S.), a major federal-
provincial project to identify export
opportunities for domestic producers. The Central Statistics Bureau
provided representation for the
Government of British Columbia on
this important project during 1979.
Progress was also made during
1979 in the development of a comprehensive statistical profile of the British
Columbia small business community.
When completed in 1981, this project
will provide a wide range of statistical information for analysis of
policies and programs promoting
small business development.
STATISTICAL SERVICES
This activity encompasses the
provision of a wide range of
information and services to the
government and people of British
Columbia. It ranges from responding
to fairly routine requests for information to providing highly technical
quantitative analytical support to
professional studies undertaken
elsewhere in the Government. This
activity also includes the responsibility for coordinating statistical activities among government ministries.
During 1979, a wide range of
economic and social statistics compiled by the Bureau appeared in
publications of the Ministry of
Industry and Small Business
Development and in those of other
ministries such as Education, Finance
and Labour. The Bureau provided
analytical support in a variety of projects designed to assess the impact of
proposed industrial development
measures. Study areas included the
extension of rail transport facilities
and the costs and benefits associated
with mining and other resource
related developments.
In addition to the cooperative
ventures and data sharing agreements described earlier, intensive
consultations were held with Statistics
Canada on a wide range of technical
statistical topics of concern to the
Province, including standards and
classifications, Censuses of Population and Housing, social statistics,
and economic statistics relating to
agriculture, manufacturing and
primary industries, merchandising,
construction, transportation, prices,
labour and economic accounts.
These consultations were designed
to maximize the availability and relevance to the Province of statistical
information gathered by Statistics
Canada.
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 SMALL
BUSINESS
DEVELOPMENT
BRANCH
OBJECTIVES
The Small Business Development
Branch* works to support and
strengthen small enterprise activity
in all industry sectors in British
Columbia. Recognizing the significant contribution small businesses
make to the provincial economy, the
Branch offers assistance and advice
to ensure that healthy small enterprises play their role.
There are four major services that
the Branch provides to assist the start
up, operation, efficiency and expansion of small business. They are:
business enterprise services, financial
assistance services, management
development, and research and
development services.
*In 1979 the Ministry of Tourism and
Small Business Development was
combined for a time with the Ministry
of Economic Development to form
the Ministry of Industry, Tourism and
Small Business Development. These
functions were subsequently separated to form two ministries, the
Ministry of Tourism and the Ministry
of Industry and Small Business
Development. The activities of the
Small Business Development Branch
are therefore included in this annual
report.
BUSINESS ENTERPRISE
 SERVICES	
Enterprise Development Officers
responded to over 12,000 business
enquiries in 1979. Information and
counselling was provided to those
wishing to start new businesses or to
improve the productivity of their
firms. Enterprise Development
Officers diagnose, analyze and assist
in solving business problems in the
areas of marketing, financing, production and management. When
appropriate, the advisors make
referral arrangements to other public
and private agencies.
  A counselling and follow-up service is provided in all regions of the
Province. During 1979,1,500 calls
were made to agencies such as
chartered banks, government agents,
Chambers of Commerce, the Federal
Business Development Bank, and
provincial and federal government
departments who work with small
firms in more than 120 communities
in the Province.
In 1979, sixty-four Business
Information Centres were established in communities throughout
British Columbia, anchored by a
Small Business Centre in the
Branch's Vancouver office. The
centres ensure quick and easy
access to business information and
Ministry personnel. Local Chambers
of Commerce in the Province have
been offered the first opportunity to
house the Centres.
FINANCIAL ASSISTANCE
 SERVICES	
The Small Business Development
Branch is responsible for the "field
operations" aspects of the Assistance
to Small Enterprise Program and the
commercial programs of the Travel
Industry Development Subsidiary
Agreement. Branch officers provide
detailed evaluations of applications
for assistance under these programs
which, along with the efforts of the
Program Implementation and Coordination Branch, ensure effective
program delivery.
20
A Professional Services Assistance
Program is also offered by the
Branch. This program can provide
financial assistance of up to $5,000 to
assist smaller firms and business
groups to hire outside consultants to
carry out business improvement
research. Studies this year have
included a technical survey to determine expansion of production capacity, a retail impact study, new
product identification and research on
up-to-date processing formulations.
MANAGEMENT DEVELOPMENT
 SERVICES	
The Small Enterprise Management Development Program places
emphasis on the practical, rather
than the theoretical, aspect of business operation. In conjunction with
the public education system, federal
and provincial government departments, and industry associations,
assistance is provided for small firm
management development. The
Branch has presented the small firm
perspective in projects with many of
the Province's colleges, the Open
Learning Institute, Simon Fraser
University, high schools, and technical and vocational schools. The
Branch also provides financial assistance to continuing education programs in regional colleges and
school districts in order to stimulate
courses, workshops and seminars on
small firm operation. The program
assisted 236 classes which allowed
over 3,404 individuals access to
training.
Three "needs review" workshops
were conducted during the year. Two,
on management, development and
entrepreneurship were held in
Dawson Creek and Cranbrook. The
third workshop, in Vancouver,
brought 75 small firm owners together to discuss areas of concern
and to make recommendations for
government programs.
A series of business management
training packages is being developed to provide a basic pool of practical business management information. In 1979, specifications for these
packages were determined after a
detailed comparison of existing
materials with management training
needs. Approximately 12 "how to"
packages will cover such topics as
small firm financing, marketing,
management and expansion.
The Branch responded to numerous requests for speaking engagements, literature, research and assistance with industry organization.
Sixty-five associations have used the
services of the Branch, reaching over
2,000 small firm owners and managers. The Branch also represents the
Ministry on industry advisory
committees.
RESEARCH AND DEVELOPMENT
 SERVICES	
An expanded role of the Branch
is that of developing programs that
are of practical help for the small
business sector. The past year's
activities have centered on determining the small firm owner's information needs and then building a good
business information base within
the Branch. A library of books,
publications, extended files, and
resource files are used by the Branch
staff, educators and individuals
researching a business.
In cooperation with the Central
Statistics Bureau of the Ministry, a
statistical description and data base
for the British Columbia small enterprise sector is being compiled. The
first phase, to be completed March
1980, is the development of a basic
profile of small manufacturing activities. Phase 2 will provide a complete
data base for the total small
enterprise sector.
  BRITISH
COLUMBIA
HOUSE,
LONDON
During 1979, the focus of the Ministry's activities in British Columbia
House, London, shifted markedly.
For the previous two years major
efforts had been oriented toward
monitoring the progress of the GATT
trade negotiations in Geneva and ensuring that Provincial interests there
were appropriately represented.
Once these negotiations were concluded in April 1979 the Ministry was
able to redeploy its staff in London
and strengthen its efforts in other
areas.
The role of the Ministry's unit in
London is multi-faceted and reflects
the full range of Provincial interests
in Europe. Prime objectives are:
□ to analyse and report on economic, financial and business developments in Europe that could have
an impact upon British Columbia's
future economic prosperity;
□ to represent the Province in meetings with officials and committees of
the European Economic Community;
□ to monitor the implementation of
the 1979 GATT agreements; and,
□ to encourage appropriate European
companies to consider business
operations or joint ventures in British
Columbia, thereby stimulating job
creation.
To fulfill these objectives, the
Ministry now has three professionals
based in London. An Executive
Director of Economic Development,
Europe was appointed mid-1979.
Working with him are a Business
Development Officer whose top
priority is to seek out European
companies who might wish to establish a business presence in British
Columbia, and a Commercial Officer
who handles most of the export and
entrepreneurial enquiries received
in British Columbia House.
22
ACTIVITIES
During the year, the London unit
was involved in British Columbia
business opportunities presentations
and seminars in London, Paris, Milan,
Cologne, Hamburg and Amsterdam.
Subsequently, three senior business
missions visited British Columbia to
explore opportunities for establishing business links. British Columbia
House, London assisted them, ensuring that their itineraries were
effectively planned.
One blue-ribbon group was
sponsored by the BDI (the West
German Federation of Industry) and
comprised twenty leading industrialists representing all sectors. Another
mission to British Columbia from
West Germany was sponsored by a
leading bank, the Stadtasparkasse
Koln, which brought a group of its
senior clients to the Province. Finally,
almost 40 companies from the
Netherlands discussed opportunities
for joint ventures and cooperation in
third country projects with their
British Columbia counterparts as
part of a mission sponsored by the
Netherlands Council for Trade
Promotion.
The Ministry's Vancouver and
London based groups cooperated to
ensure a strong British Columbia
presence at trade shows in the United
Kingdom and West Germany and to
organize business development
missions into West Germany and
Austria.
INTO 1980
1980 will be a most important year
in the development of relationships
between Western Europe and British
Columbia. About 1.5 billion dollars a
year of our products are exported to
this market and thus its economic
stability is vital to our own economic
strength. Present currency exchange
rates and continued buoyancy in the
West German economy indicate continued opportunities in this vast
market for British Columbia's commodity and manufactured goods
producers.
 u fl!,IH.III Mill
The London staff plan to visit
ern Europeans, with German industry
more than 500 European companies       in particular showing a strong
with potential interests in British
Columbia. They will also be involved
in several seminars in the United
Kingdom, France and West Germany.
Already, six investment missions
to our Province are planned by West-
interest in British Columbia.
23
  GRANTS
The Ministry of Industry and
Small Business Development provided, in its 1979/80 estimates, for a
number of grants and financial contributions to support the following
activities:
COOPERATIVE OVERSEAS MARKET
DEVELOPMENT PROGRAM
$1,116,000
This program, jointly financed by
the Ministry, the federal Department
of Industry, Trade and Commerce,
and the British Columbia Council of
Forest Industries, was established to
promote the development of new
overseas markets for British
Columbia lumber, plywood and
shingle products.
The program which is in the fourth
year of its second five-year term is
an outstanding example of an aggressive, cooperative venture
between governments and industry
and contributes to stability and
growth in the Province's first industry.
 A mid-term review of the program's effectiveness showed that its
potential was being seriously eroded
by the lower value of the Canadian
dollar abroad and by worldwide
inflation and all parties agreed that
the funding levels should be
increased.
Because of COMDP involvement,
British Columbia lumber sales to
Japan increased 60%. Platform
frame starts were estimated at 15,000
compared to 9,500 in 1978. Also in
Japan the second "Caravan" of
display homes was displayed in fourteen centres and 1979 marked initiation of the first training program for
platform frame tradesmen in Japanese vocational and technical high
schools. Other highlights of 1979:
□ Spruce/pine/fir exports to overseas markets of 497 million fbm
were 50% higher than 1978
shipments.
□ Major timber frame housing developments were planned or started in
the Netherlands and involved several
thousand houses.
□ There was a significant increase in
sales of B.C. lumber and plywood to
Italy with favourable and growing
product acceptance in many end-
use areas.
CANADA WEST FOUNDATION
$30,000	
The Ministry contributes a grant
to this non-profit society whose
objective is to represent western
Canada within Confederation. The
Province has elected representatives
to the Foundation.
The Foundation is currently
engaged in several major projects of
interest to British Columbia: a study
of western Canadian agriculture,
developing an economic/industrial
strategy for western Canada, assessing the problems and prospects for
developing the water resources of
the four western provinces.
In 1979 the Foundation tabled two
major reports, "Confederation 79"
and "Attitudes Towards a New
Federal System for Canada." As
background for these reports and for
input into federal statements, the
Foundation sponsored twenty-four
public workshops in the four
western provinces.
JUNIOR ACHIEVEMENT
 $15,000	
The Junior Achievement Program
is designed to introduce students to
the world of business. The Ministry
grant, which contributes to the general funding of the program, is representative of the Government's recognition of the important role played
by the organization. Part of the grant
is used to fund awards for students
showing the most imagination and
enterprise in their new-business
venture.
B.C. RESEARCH COUNCIL
$420,000
B.C. Research is the technical
operation of an independent society,
the British Columbia Research
Council. The annual grant received
from the Government of British
Columbia is used to defray the costs
of a free technical information service
carried out in conjunction with the
National Research Council of
Canada, and to provide funds for
exploratory, high-risk research for
the benefit of industrial development
of British Columbia.
During 1979 the Ministry of
Industry and Small Business provided $100,000 to assist in staffing
and in providing mechanical facilities
in the Ocean Engineering Centre
located alongside the research laboratories of B.C. Research, on the
south campus of the University of
British Columbia. Funds from the
Ministry also supported research
and development on the supercritical
gas extraction of wood, a program
which later gained sponsorship
under one of the Government of
Canada energy assistance programs.
The Ministry assisted also in a project
for undertaking research on the bulk-
handling of materials, such as wood
chips, sawdust, coal fines, and other
small particulate materials that are
conveyed by flow systems.
BRITISH COLUMBIA
DEVELOPMENT CORPORATION
$4,000,000
This grant was provided to the
Development Corporation, who act
as trustees for the Province in the
administration of a Low Interest
Loan Assistance program, to cover
the 1979 program costs.
The program, an adjunct of the
1977 Canada-British Columbia
Industrial Development Subsidiary
Agreement, provides low-interest
loans for the capital costs of fixed
assets for new and expanding manufacturing and processing facilities.
26
  INDUSTRY AND SMALL BUSINESS DEVELOPMENT
STAFF COMPLEMENT
Employed Vacancies Total
March 31,1979
109
18
127
March 31,1980
134
15
149*
DISTRIBUTION
VICTORIA
1979
1980
Minister's Office
7
7
General Administration
21
22
Central Statistics Bureau
21
22
Program Implementation and Coordination Branch
22
26
Economic Analysis and Research Bureau
Policy Planning*
32
32
VANCOUVER
Business and Industrial Development Branch
22
27
Small Business Assistance*
9
LONDON
2
4
TOTAL
127
149
*Nine established positions were transferred from the Ministry of Tourism
and Small Business Development.
28
  ORGANIZATION
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30
 PUBLICATIONS
Following is a list of publications
issued by the Ministry in 1979:
Monthly Bulletin of Business
Activity
A monthly summary and review
of current economic and business
activity with statistical data showing
comparisons to the previous month
and the same month of the preceding
year. Special articles of current interest and lists of new publications are
also included.
B.C. Market News
A quarterly newsletter for businesses in British Columbia. Outlines
current business activities and introduces new Ministry programs.
Trade and Industry Bulletin
A bi-monthly listing of foreign enquiries regarding distribution and
manufacturing of foreign products
under licence in British Columbia.
British Columbia Economic
Activity, 1979 Review
and Outlook
An annual summary and review
of the economic pattern of the
current year and an economic outlook for the following year, containing a statistical supplement with ten
year historical perspectives.
External Trade Through British
Columbia Customs Ports
An annual report providing both
detailed and summary tables showing
exports and imports through British
Columbia customs ports, including
data by commodity and destination
country.
Directory of Importers and
Manufacturers' Agents in British
Columbia
A catalogue listing including
information by commodity groups.
British Columbia Facts 79
A leaflet containing statistical information on population, the economy, government, transportation,
and retail trade.
B.C. Economic Development
A full colour quarterly magazine
highlighting the achievements of
businesses and individuals throughout British Columbia.
B.C. Regional Index
A seven hundred page marketing
and educational tool containing statistical and descriptive information on
each and every community in the
Province. Price: $10.00. Please remit
cheque or money order payable to
Minister of Finance, (individual
reprints on each region and area are
available free of charge.)
Manufacturing Opportunities
Through Import Replacement
A listing of import items which
have a potential for domestic
manufacture.
Industrial and Commercial
Expansion in British Columbia
A semi-annual publication detailing active industrial and commercial
projects in the Province for the first
and second halves of 1979.
B.C. Manufacturers' Directory
1979
A listing of manufacturing activity
which indicates products manufactured, alphabetically, by company
and by product classification.
Directory of Lumber, Plywood
and Building Materials...
Made in B.C.
A guide which indicates the
products manufactured by the British
Columbia forest industry and the
companies which manufacture
them.
A Directory of Public Buying
Agencies in B.C.
A guide for businesses wishing to
sell goods and services to provincial
and municipal governments and
other "public" agencies, which lists
key contacts.
Manual of Resources
A summary of current data about
the resources and economic
activities of the Province.
Establishing a Business in
British Columbia
A guide to government rules and
regulations controlling the establishment of businesses in B.C.
The publications listed, several
series of brochures, and small business aids are available from:
Information Services,
Ministry of Industry and
Small Business Development,
Victoria,
British Columbia V8V1X4
and
Ministry of Industry and
Small Business Development,
315 Robson Square,
800 Hornby Street,
Vancouver,
British Columbia V6Z 2C5
Also contact Information Services
for information on the availability of
reports, studies, and etc. mentioned
throughout this report.
31
 '    Queen's Printer for British Columbia ©
Victoria, 1981

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