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BC Sessional Papers

[Report of the Ministry of Economic Development for the fiscal year ended March 31, 1979] British Columbia. Legislative Assembly [1980]

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 To the Honourable
D.S.O., O.B.E..E.D.
Lieutenant-Governor of
British Columbia
I beg to submit the
Report of the Ministry of
Economic Development
for the fiscal year ended
March 31, 1979.
Minister of Economic
To the Honourable DON
PHILLIPS, Minister of
Economic Development,
Victoria, British Columbia
I have the honour to
submit herewith the
Report of the Ministry of
Economic Development
for the fiscal year ended
March 31, 1979.
Deputy Minister of
Economic Development
Table of contents
Trade and Industry Division    4
Small Business Assistance Division     10
Policy Planning Division    16
Economic Analysis Division   18
Special Projects Division   20
Trade and Tariff Analysis Division  21
Central Statistics Bureau     22
BRANCH     24
5. GRANTS    30
and industrial
The objective of the BUSINESS AND
promote strength, growth, and diversity in the
British Columbia business community through the
development of new export markets, the addition of
new investment and new industries, the expansion
of existing operations and the servicing of small
The Branch is composed of two Divisions:
Trade and Industry; and Small Business
Assistance Division.
  Trade and
DIVISION has the capability to
pursue three major objectives: to
increase the production and export of British Columbia goods
and services; to expand and
diversify the existing industrial
base; and to attract and encourage
new investment into the Province.
In order to accomplish these
objectives Division personnel
work within the frameworks of
Industry Development; Trade
Development and Capital Projects;
and Business Development.
During the year, staff of the
Division met with over 4,500
companies in the Province who
were seeking advice or assistance
on expanding their operations.
As well, the Division handled
in excess of 1,000 incoming
telephone calls a month.
Senior staff from the Division
were involved in the study of the
proposed Vancouver Trade
Convention Centre and also had
observer status on the Board of
Directors for the Federal
Enterprise Development Program.
As well they were involved in
federal/provincial/private sector
task forces set up to study the
problems and opportunities facii
22 industrial sectors in Canada.
Industry Development
The Division is responsible
for working closely with the
Province's manufacturers and for
assisting them to develop to their
maximum potential. Thus the
Division is extensively involved
export marketing activities, in
productivity improvement and L
encouraging the development of
industries that add value to our
basic resources.
 Market Development, Incoming
iyers and Trade Show programs
e three specific ways in which
e Division assists individual
anufacturers and service commies explore new markets,
iring the year 190 companies
ok advantage of these programs.
ade Missions
During the year, the Division
ionsored 15 trade missions to
troduce groups of British
)lumbia companies to new
les opportunities. Nearly 100
mpanies participated in these
issions, which covered the
llowing areas:
udi Arabia/Kuwait
instruction Industries
lp/Paper Project
lited States
estern Europe
gh Technology Products
irestry Equipment
3 an
iuth East Asia
instruction Equipment
n Francisco
Hong Kong/Singapore
Fish and Food Products
Industrial Machinery
New Zealand
Boat Building
South East Asia
Telecommunications Equipment
IVade Shows
The Division was also very
active in sponsoring exhibits in
nine major trade shows, as
Hotel/Restaurant Equipment
and Products
Food Products
Forestry Equipment
Resource Development
Building Products
Puerto Rico
Fishing Equipment
New Orleans
Work Boat Products
Forestry Equipment
Book Publishing
Special Events
As the Alaska Highway Gas
Pipeline moved closer to reality,
the Division hosted seminars to
highlight the business opportunities available to British
Columbia companies from the
riulti-billion dollar project.
Working in conjunction with
P'oothills Pipe Lines and Westcoast
Transmission, seminars were held
in Vancouver, Prince George, Fort
St. John, and Fort Nelson. Almost
1,000 companies attended.
A Provincial exhibit was designed for the annual meeting of
the Inter-American Development
Bank, held in Vancouver. The
exhibit, demonstrating the
capabilities of British Columbia
companies in resource development projects, was viewed by
more than 2,000 delegates from
Latin America and elsewhere in
the world.
B usiness Development
The Division is responsible
for encouraging new business investment in British Columbia both
by established companies and by
firms located elsewhere in Canada,
in the United States, and abroad.
Emphasis is placed on stimulating
local companies to develop joint
venture or licensing arrangements,
and also on identifying import
replacement and public purchasing opportunities. The Division is
also responsible for assessing the
viability of business proposals
made by foreign entrepreneurs
interested in emigrating to
British Columbia.
Promotional Activities
The Division staffed an
exhibit at the Inter-Idex industrial
development show in Basel,
Switzerland. Countries, from
around the world participated in
the show, which was visited by
several thousand companies
interested in new industrial
 Trade Development and
Capital Projects
Trade Development and Capital
Projects is an area of activity in
which the Division identifies key
capital projects around the world
that offer major opportunities for
the sale of British Columbia goods
and services. The Division also
maintains close liaison with
international financing agencies
to ensure that British Columbia
companies obtain maximum
advantage from the projects that
they finance.
Trade Development and
Capital Projects Officers travelled
extensively around the world
identifying projects that offered
strong potential for British
Columbia suppliers. Special emphasis was placed on South East
Asia, the Middle East, and Latin
America. As well, over 700 British
Columbia companies participated
in seminars sponsored
by the Division on /
such subjects as:
□ Market opportunities
in OPEC countries       I
□ U.S. Markets
□ Canadian International
Development Agency
□ Export Marketing through
Capital Projects
Seminars on Business Opportunities in British Columbia were
held in Amsterdam, Dusseldorf,
and Seattle and were attended by
well over 100 interested companies. Business development
missions were organized to
Vienna, Austria and Houston,
Texas to introduce British
Columbia manufacturers to potential joint venture partners in such
product areas as castings, coal
mining equipment, and metal
Industrial Benefits
The Division has been active in
trying to ensure maximum benefit
to British Columbia from the New
Fighter Aircraft contract soon to
be signed by the Federal Government. The company that wins this
$2 billion-plus contract must agree
to create substantial new busines
activities in Canada. This could
result in several hundred million
dollars of new investment in
British Columbia. During the yea
all six of the prime contenders fo
the contract visited the Province
and were introduced to scores of
local companies with suitable
supply capabilities.
Economic Development
As one element in the
Industrial Development
Subsidiary Agreement, co-signed
with the Federal Government in
July 1977, the Division has taken
responsibility for assisting
Regional Districts throughout the
Province to establish Regional
Economic Development
Commissions. The prime role of
the Commissions is to coordinate
and promote economic activity ii
their respective areas. The first
project for each commission is tc
identify the benefits that the
region has to offer, the addition?'
support needed to attract new
industry and the type of industry
that would be most suitable.
Thirteen commissions are no
in place and a further five or six
are anticipated.
   Ixport Assistance Results
The Ministry's support to
iritish Columbia exporters re-
ulted in an increase in exports of
aanufactured goods of $45-50
nillion, equivalent to the creation
if almost 1,500 new jobs in the
'rovince's manufacturing sector,
lome of the key contracts signed
Canron (Western Bridge
Division) signed a $4.8 million
contract for a railway bridge in
Costa Rica.
J Crippen Engineering was
awarded a $2.2 million design
contract for an irrigation
project in Central Java.
3 Springate & Associates has a
$400,000 contract to design
a fibreboard plant in the
□ Zenith Steel negotiated a
$1.6 million contract in Iraq to
fabricate and erect a steel and
glass observation platform
and restaurant.
□ Citation Cabinets signed a $3
million distribution contract
covering Japan.
□ MacDonald Dettwiller and
Associates Ltd. (MDA) signed
a $4.5 million sales contract
in Australia.
D Finning Tractor sold $250,000
worth of rebuilt earth moving
equipment to Venezuela as a
result of participating in a
Ministry Trade Mission.
□ Fryer Cruikshank Kilns is
supplying and erecting 2
lumber drying kilns valued at
$300,000 to South America.
□ Homexpo Canada delivered
prefabricated housing with a
factory value of $9 million to
Saudi Arabia and is negotiating
for additional contracts with an
estimated value of $50 million.
D Cove Dixon obtained a contract
to design a tuna seiner for New
Zealand. The vessel is valued at
$3 million and is being
constructed using equipment
and other fittings provided by
several British Columbia
Business Development Results
As a result of the efforts of the
Division, over $50 million of new
investment was brought into the
Province creating nearly 1,500
new jobs. The major development
was a $25 million facility, announced by Fiberglas of Canada,
to produce insulation products in
Mission, B.C. An additional $50
million of entrepreneurial capital
flowed into British Columbia in
1978 from cases reviewed by the
As well, the Division directly
nfluenced $21 million of contracts gained by British Columbia
manufacturers from the provincial
government and its agencies.
support, strengthen and stimulate
smaller enterprise activity in all
industry sectors in recognition of
the importance and contribution
made by this sector to the British
Columbia economy.
Through the Division's four
major assistance areas: Business
Enterprise Services; Financial
Assistance Services; Management
Development Services; and
Program Research and
Development Services, programs
are aimed towards promoting and
assisting the orderly start-up and
development of viable new
businesses, and improving the
productivity of existing ones.
Advisory Services
Small Business Advisers
candidly counsel owner/operators
in the planning and start-up of
new business and in the expansion
and productivity improvement
of existing businesses. They
diagnose and analyze business
problems and assist in solving
problems with practical help in
the areas of marketing, financing,
production and management.
When appropriate, the advisers
make referral arrangements to
other public or private agencies.
Over 8,000 responses for business
assistance were handled in 1978.
Community Calls
Visits are made to communities
throughout the Province on a
regular basis working with chartered banks, the Federal Business
Development Bank, government
agencies, Chambers of Commerce
and individual businesses. These
visits, which are known as
"transfers of office," provide a
counselling and business information follow-up service in all
regions of the Province.
In 1978 visits were made to
120 communities. This represents
250 business calls outside of the
Lower Mainland and Southern
Vancouver Island.
 Business Information Services
Business Information Centres,
publications, Small Enterprise
Management Aids, bulletins and
newsletters are used in an
"outreach" program to provide
practical and easily available
business management information
to those interested in small
Business Information Centres
were established in business
communities throughout British
Columbia in 1978. After the
development work, 55 Centres
were phased into place. A further
22 Centres will be established over
the next year. The Centres ensure
quick and easy access to business
information and to the Ministry's
Business Advisers. The local
Chambers of Commerce in British
Columbia have been offered
the first opportunity to house
the Centres.
From these applications, 260 small
manufacturing or processing companies have had over $4.7 million
in loans approved to assist them in
purchasing manufacturing equipment, in erecting or buying
Duildings, or in carrying out
leasehold improvements. More
han 1,100 new jobs in the
manufacturing or processing
sector are projected as a result of
this funding.
Technical Assistance
Thirty B.C. companies
were assisted by the Ministry's
Technical Assistance Program to
hire outside consultants, to carry
out research and studies for
business irriprovement.
The Ministry also used a
portion of the technical assistance
funds to conduct studies or
support the activities of six
particular industry sectors. As
e:xamples, the Division assisted
the SKICADE PROJECT, a promotional venture sponsored by the
B.C. ski industry. Technical assistance was also provided to the
crafts industry in the Province.
Assistance to Small Enterprise
Program (ASEP)
Since the program's inception
in November 1977, more than 600
applications for financial assistance were evaluated by the Small
Business Assistance Division.
A greatly expanded
mall Enterprise Management
evelopment Program was
unched this year in conjunction
id cooperation with the Ministry
E Education, the public education
/•stem and industry associations,
he Division supports and pro-
lotes business management skill
evelopment for smaller entre-
reneurs and owner/operators,
mphasis is directed to the prac-
cal rather than the theoretical
spects of business operation.
anagement Aids Program
A series of business and
anagement training packages
e being created and developed
i ensure a basic pool of practical
isiness management informa-
:>n. Preparation for the develop-
ent and production of the series
eluded a "Readability Analysis"
representative publications
>ed by small business for
formation and training. The
aterials were assessed for read-
g level by a computer analysis of
cross-section sample of small
isiness owner/operators in
ritish Columbia. The study
early established that small
isiness information and man-
;ement training material needs
be communicated around a
rade 10 to 12 level to be used
fectively by a large segment
' the small business sector.
ssistance to Industry
This initiative is being
iplemented and promoted to
■ovide financial assistance and
ivisory services to business,
ade, and industry associations,
he program is designed to
icourage management develop-
ent opportunities for the owner/
lerator members in their own
idustries. The program is exacted to provide support to 50
idustry associations during the
irrent fiscal year.
Planning was carried out for
ve regional "needs review"
orkshops in business manage-
ient. The one-day strategy planing sessions are held outside the
ower Mainland, with representa-
on from approximately 35
jsiness communities. They are
designed to focus on each region's
specific needs and on the problems
they encounter with access to and
delivery of small business management services. The workshops,
for people from the small business
sector, education and government,
are to be co-hosted by each
region's community college,
Chambers of Commerce, and
the Ministry.
Training Assistance and Services
A Province-wide education
and training support program is
directed at small firm entre-
preneurship and continuing adult
education. The program assists
schools, post-secondary institutions and community education
programs by providing small
business courses, advertising
assistance, speaker services, counselling services, workshops, and
literature. For example, the Small
Enterprise Course/Advertising
Subsidization Program provides
regional colleges and school board
districts with financial assistance
to encourage courses/workshops/
seminars for small firm operation.
The program assisted 92 such
projects which presented over
1,500 individuals with new
learning opportunities.
Program Research and
Development Services
A greatly expanded role of the
Division is that of planning and
developing programs that are of
practical help to the small
business sector. The past year's
activities have largely centred
around planning, designing and
implementing a model for the
coordination and delivery of
business management services in
all areas of British Columbia.
Additionally, the Division acts
es liaison in the coordination and
delivery of projects/activities for
other public and private agencies
which have programs affecting
small firms. Many proposals,
briefs, and requests are reviewed
and evaluated for potential
program areas.
Of major interest to the
Division is the analysis of requirements of specific industry
sectors and "Special needs"
groups. For instance, the Division
has assisted the crafts industry,
h ospitality industry, ski industry,
Native Indian economic development projects, and handicapped
persons' workshops.
In December 1978, the Small
Business Assistance Division was
transferred to the new Ministry of
Tourism and Small Business
 Policy planning
and research
The objective of the POLICY PLANNING AND
RESEARCH BRANCH is to coordinate overall policy
development, undertake economic and trade
analysis and collect and tabulate statistical data. In
this role the Branch formulates economic
development strategies for the government, and
helps coordinate the activities of other ministries
and agencies in matters affecting the
economic development of the province.
The Branch is composed of five
Divisions: Policy Planning, Economic
Analysis, Special Projects, Trade and
Tariff Analysis Division, and Central
Statistics Bureau.
The objective of the
to develop a provincial economic
strategy or policy framework, and
to contribute to the development
of a national economic strategy
that would benefit British
Columbia. Within these overall
objectives, the Division formulated
and evaluated federal and provincial policy initiatives, including
sectoral policy proposals and
individual investment projects, to
encourage the economic development of British Columbia.
The Function of the Division
The Division's function
is to plan, develop, and evaluate
economic policies. As such, the
Division's role is primarily advisory. Considerable emphasis
is placed upon analysis of the
efficiency and effect of provincial
policies, and the impact on the
British Columbia economy of
federal policies. In addition, the
effect of changing domestic and
international economic conditions
is closely monitored.
Towards ai &***.
?*" Economic fc??***:
1*=°? for Can* "^Canada
British ( olumbij
Main Policy Areas
Federal/Provincial Economic
The Division coordinated
the preparation of the documents
"Towards an Economic Strategy
for Canada" tabled by the Premier
at the First Ministers' Conference
in February 1978. To ensure that
the British Columbia viewpoint
was included in the subsequent
framing of federal policies, the
Division was actively involved in
the various areas of follow-up to
the Conference. This included
participation in many of the
Federal/Provincial committees
established to examine designated
issues including the recommendations of the Tier I and Tier II
Consultative Task Forces.
The Division elaborated upon
its contribution to the February
conference by preparing "Towards
an Economic Strategy for Canada:
The Industrial Dimension" tabled,
at the more recent First Ministers
Conference in November 1978. In
conjunction with other Divisions
r,     .-V i
and Ministries, the Division developed for the November conference provincial positions on
federal commercial policy, energy
policy, and transportation policy.
Also, a program to facilitate
industrial adjustment to trade
liberalization was designed.
Provincial Economic Strategy—
The Division has devoted
much of its attention to the
formulation of a provincial
economic strategy. This involved
in-depth analysis of the structure
and behaviour of the British
Columbia economy plus detailed
examination of several key provincial policies including science
policy, immigration policy, and
aspects of deregulation. The
strategy is essentially concerned
with defining economic goals for
the province and identifying those
market failures which, if corrected, would lead to increased
investment opportunities in the
 In addition to its work directly
in economic strategy and policy,
;he Policy Planning Division
irovided economic input into the
development of the Province's
iroposals for constitutional
change. Federal policies are of
:onsiderable importance to the
attainment of British Columbia's
3conomic objectives and through
:onstitutional revision it is hoped
that the process of national policy
formation can be made more sensitive to the concerns and aspirations
if the Province.
In December 1978 the Policy
Planning Division was transferred
:o the Ministry of Finance as part
if the general government
■mI                                         111/;? ■■■-
The objective of the
is to perform economic policy
analysis and research as required,
and to undertake long-term
economic assessment, planning,
and forecasting activities. This
work accords the Division an
important role in the development
of the economic strategy for
British Columbia. The goals of this
strategy are to promote the growth
of employment and real incomes;
the improvement of economic
efficiency; the greater stabilization
of prices; and the achievement of
balanced regional development.
With its capacity to produce
economic analysis and forecasts
for individual sectors and regions,
the Division supplies the profiles
and policies which are woven into
the framework of the strategy.
The development of the
industrial strategies which harmonize with the overall economic
strategy for British Columbia is a
primary function of the Division.
In addition to the large proportion
of the on-going research, analysis
and forecasting which is relevant,
many projects have been undertaken specifically as industrial
strategy initiatives. Included
among these projects are a set of
sector profiles and strategy papers
for energy, selected metals and
minerals, transportation, coal,
research and development, forest
industry, commercial fisheries,
estuarine development and resource roads. Market studies have
been undertaken for a number of
specific commodities which are
important to the provincial economy. An example is the "Pacific
Rim Metallurgical Coal Market
Survey", which was prepared
recently in cooperation with the
Department of Industry, Trade and
Commerce in Ottawa. Ongoing
liaison with industry and the
federal government is an important component of this activity.
Regional research and analysis
is another basic activity. Because
the economy of British Columbia
comprises diverse regional
economic structures and patterns
of development, special consideration is warranted. The Division
has responded to numerous requests for economic reviews and
advice regarding specific regional
development proposals.
Briefing notes and background
papers are prepared, as required,
for the use by the Minister and by
Cabinet members on economic
missions to Europe, the Far East,
and elsewhere, and at Conferences
of First Ministers, Western
Premiers, Industry Ministers, etc.
The Division has participated
in several socio-economic and
manpower evaluations, including
several studies which were carried
out for the inter-ministerial Equal
Employment Opportunities
The objective of the SPECIAL
coordinate, and direct Ministerial
operations associated with special
development projects in the mineral, forest, and other natural
resource fields; in resource processing; in manufacturing; and in
related areas.
Special Projects also provides
close liaison with other branches
of the Ministry, other government
Ministries, consultants and business organizations in order to
develop concepts and coordinate
activities to produce specific
economic development objectives
for British Columbia.
In addition, the Division is
responsible for the preparation of
the Ministry's economic publications including the Monthly
Bulletin of Business Activity;
British Columbia Economic
Activity, Review and Outlook; as
well as other sectoral, regional and
foreign trade publications.
The Division has completed a
joint study with the Ministry of
Labour of construction plans of
Provincial Ministries and Crown
Corporations for fiscal years 1979
through 1981, which was a part of
a planning program to explore
stabilization of construction activity by counter-cyclical action.
Currently, it is finalizing a
report on the feasibility of establishing a metallurgical complex at
a British Columbia location to
process zinc, lead and copper
concentrates and ferro-alloys.
A study of capital markets
in British Columbia is being
conducted in cooperation with
the Ministry of Consumer and
Corporate Affairs and the Program
Implementation and Coordination
Branch of the Ministry of
Economic Development.
 Trade and
tariff analysis
In conjunction with Energy,
vtines and Petroleum Resources,
Dttawa, the Division is assessing
he feasibility of processing deep-
ea nodules at a British Columbia
Division staff are
epresented on the IDSA
Industrial Development
Subsidiary Agreement) Research
technical Sub-Committee.
The main responsibility
ANALYSIS DIVISION is to identify policies for international trade
which will encourage industrial
development and higher real
incomes for British Columbians.
The Division has made
numerous representations of
British Columbia's trade policies
and positions to Ottawa during
the long Multilateral Trade
Negotiations (MTN) for reduced
trade barriers, which have taken
place under the General Agreement
on Tariffs and Trade (GATT). The
Division prepared two papers
which were tabled at the
November 1978 Conference of
First Ministers. These were
"Canada's Commercial Policies in
a Changing World", and "A
Positive Approach to Canada's
Traditional Industries". On a
number of occasions the Division's
work has required close cooperation with the other western
provinces in formulating common
With the recent signing
of the trade accords in Geneva the
Division has begun an in-depth
impact assessment of the agreements on the British Columbia
economy. This assessment will be
coordinated with similar efforts in
the other western provinces, as
was agreed by the Western
Premiers at their conference in
1978, and reaffirmed in 1979.
Given the momentum of trade
activity which has been generated
by the political and economic
developments in the Pacific Rim,
the Division has undertaken both
to analyze the significance of
these developments for the British
Columbia economy and to
appraise the opportunities that
they represent.
During the past year, the Trade
and Tariff Analysis Division continued its representations to the
federal government in seeking a
reprieve from the wide flange steel
anti-dumping decision.
The Division has been active in
aiding a local truck manufacturer
to receive benefits of the Auto
Pact, and in cooperating in a
program to encourage automotive
investment in British Columbia.
In addition, it has been able to
provide a wide variety of support
to individual firms seeking either
duty remission or tariff line
The objective of the CENTRAL
the requirements of government,
business and the 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.
The mandate of the Central
Statistics Bureau derives from the
British Columbia Statistics Act
which was proclaimed in late
1977. The Act provides for access
to data not previously available
to government, including data
collected and maintained by
Statistics Canada. These provisions are predicated upon a
strict set of confidentiality
safeguards, which were written
into the Act.
Many of the activities
of the Central Statistics Bureau
during the year were aimed at
maximizing the amount of data
available to the government while
at the same time restricting the
numbers of surveys and forms
needed to collect the data. This
was accomplished in two major
ways. First, administrative records
were used wherever possible as an
alternate to surveys, thereby
reducing respondent burden
especially in the private sector.
Second, close ties with Statistics
Canada were established in order
to gain access to large amounts of
previously unavailable data held
by the federal agency.
The close cooperation with
Statistics Canada was highlighted
by the signing of three agreements
under Section 11 of the British
Columbia Statistics Act and
Section 10 of the Canada Statistics
Act. These agreements cover the
Annual Censuses of Manufacturing and Forestry, the Annual
Surveys of Capital and Repair
Expenditures, and the Monthly
Employment and Payrolls Survey.
Under the terms of the agreements,
the Central Statistics Bureau has
direct access to the individual
responses to these important
Another significant
cooperative venture with Statistics
Canada was initiated in January of
1979 when a senior official of the
Central Statistics Bureau was
assigned to Ottawa for a period of
one year to direct a joint British
Columbia/Statistics Canada team
which will be responsible for
developing a continuing program
of reliable information relating to
international and interprovincial
trade in goods and services.
^ Wf.
In addition to cooperative
projects and data-sharing
agreements, extensive consultations were held with Statistics
Canada on a wide range of
statistical topics including:
statistical standards and classifications, census data, household
statistics, use of administrative
records for statistical purposes,
and statistics relating to manufacturing and primary industries,
merchandising, construction,
prices, labour, transportation and
communications, and provincial
accounts. One major result of
these consultations was that more
subprovincial data for British
Columbia was made available by
Statistics Canada.
Significant additions to
valuable data were also obtained
from other federal sources.
Agreements between the Central
Statistics Bureau and Health and
Welfare Canada, and the Canadian
Employment and Immigration
Commission respectively, provided
access to selected federal adminis
trative records for the first time.
The high level of cooperation
between the Central Statistics
Bureau and the federal government
eliminated the need for the
expensive duplication of data
collection by the Province and
resulted in more data being made
available for program and policy
The demand for the new
data was reflected by a very
substantial increase in the volume
of enquiries received by the
Bureau from the public, small
businesses, planning agencies and
other provincial ministries and
crown corporations over the year,
necessitating the efficient use of
computer facilities for retrieving
and processing data in order to
meet the increased workload.
The Bureau was charged with
ensuring that the Premier's Office
and Ministry offices were always
kept informed of the most current
key economic and social indices
for the Province.
 Special Projects
□ Continued to develop and
update a set of economic
accounts for British Columbia
Wr F~ '""' im      WH
which provide detailed infor
.            y™        v
mation on the structure of the
provincial economy and its
major sectors.
D Provided statistical material to
official British Columbia rep
resentatives for use in various
Federal/Provincial conferences
and meetings, including sub
stantial statistical inputs to the
British Columbia position
paper for the First Ministers'
Conference on the National
Economy of November 1978.
D Prepared and updated forecasts
'   ■"     1
economy and commenced de
velopment of a forecasting
model to facilitate similar
activities in the future.
D Developed computerized financial models for evaluating
proposed resource projects in                                                                               JiX
the North East and in the South                                                                     ifl
ing, rail and port analyses,                                                                          Ml
townsite location and
accounting.                                                                                    ^^^^M ■'
n Commenced development                                              ^^^^M
of a system to generate sub-                                           A
provincial labour market                                           Mf%<
statistics.                                                                    Jg
□ Initiated a program to produce                                 Hm
current sub-provincial popula-                               ^t K__
tion estimates, and projections                              U
of future population trends.                               ja
□  Commenced development of a                              ig|
computerized system for pro-                            fl
ducing regional and small area                         A
statistics and used the system                         4jj
to produce statistical material                        fl
for the publication "British                           S&
idex".                          M
The objective of the
is to negotiate, implement, and
coordinate inter-governmental and
joint government-industry programs, and to provide financial
management for these. 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 responsible 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.
The Branch was formed
following the government reorganization of December 1978. It
evolved from the former Financial
Analysis and Program Implementation Division, and reflects the
increasing number of important
economic development programs
which the Ministry designs,
negotiates and administers.
 Economic Development Minister Don Phillips (front centre] shown
with eleven of British Columbia's Regional Economic Development
Program Design and Project
The Branch provides the core
research and analytical work for
economic development initiatives.
This role requires the provision of
technical backup for input in
economic, financial, and resource
management submissions to the
Minister and Cabinet. As part of
this function, responsibilities include recommendation with respect to level and timing of
possible government financial
participation in economic development projects.
Program Development
Since the 1974 signing of the
General Development Agreement
(GDA) between the Ministry and
the federal Department of Regional
Economic Expansion, the Ministry
has achieved the signing of the
following eight major development sub-agreements with DREE.
Each of these agreements is
equally cost-shared by the two
levels of government.
$10 million
Interim Highways Subsidiary
Agreement (1974-1975)
$6 million
Fort Nelson Water and Sewer
Subsidiary Agreement (1975-1978)
$30 million
Western Northlands Highways
Subsidiary Agreement (1976-1978)
$3 million
North East Coal Subsidiary
Agreement, Phase I (1976-1977)
$10 million
North East Coal Subsidiary
Agreement, Phase II (1977-1978)
$60 million
Agricultural and Rural Development Subsidiary Agreement
$70 million
Industrial Development Subsidiary Agreement (1977-1982)
$50 million
Travel Industry Development Subsidiary Agreement (1978-1983)
These sub-agreements, which
serve overall provincial economic
objectives, have brought a total
joint and dedicated commitment
of more than $230 million to the
Province. The programs under the
first four sub-agreements have
been successfully completed,
while the other four are still in
Program development activity
during 1978 has included the
formulation of the $50 million
Travel Industry Development Subsidiary Agreement which was
signed October 17, 1978, and the
development and negotiation of a
federal-provincial financial assistance package of over $4.5 million
to aid Castlegar in the construction of a water supply system
crucial to the future industrial
growth of the area.
Program Implementation:
Industrial Development
Subsidiary Agreement (IDSA)
The Branch continued to
administer this five year agreement, signed in 1977, under its
four major program areas: Industrial Infrastructure, Regional
Economic Development Commissions, Small Enterprise Assistance,
and Research. Since the signing of
the agreement nearly $35 million
of the total $70 million has been
committed in the form of low
interest and forgivable loans, and
these funds are being put to use by
individuals and communities in
the development of the Province's
industrial potential.
Under the IDSA Industrial
Parks program, $21 million has
been committed to aid the
development of park land and
facilities in Nanaimo (Duke Point),
Chetwynd (S.S. Moore), Port
Hardy (Tacan), and Kamloops
Southgate, Campbell Creek,
Mount Paul), and Prince George
iDanson). Under this program over
(334 acres of new industrial land
have been developed in the
Province. It is estimated that when
fully occupied these facilities will
generate 6,000 new jobs for these
communities. In conjunction with
the Industrial Parks Program, the
Branch offers a parallel Community Economic Development Service program which is designed to
assist regional and local governments and private investors with
 economic development planning
and with obtaining the necessary
development approvals from provincial agencies.
Since the 1977 signing of
IDSA, the Regional Economic
Development Commission's program has seen the establishment of
13 Commissions in the Province.
The role of the Commissioners in
the regional district is to assist in
the area in its industrial opportunity identification and realization. By March 31, 1979 the
Commissions program had received over $700,000 in funding
under IDSA.
As with many new economic
ideas and opportunities, identification, planning and development
require funding. Hence, the Research program of IDSA is being
aimed at just that. To date more
than $400,000 has been committed
in 23 research proposals to study a
diverse range of industrial, market
and technical opportunities such
as ski facility development, ammonia manufacture or marine
product development.
The Assistance to Small
Enterprise Program (ASEP) has
been an unqualified success in the
Province. Over 600 applications
for assistance under this program
have been received and reviewed
leading to authorization for funding of 260 of these proposals. The
history of the program to date
illustrates that ASEP funding has
gone to a diverse variety of small
businesses ranging from granola to
steel bar manufacture and horse
harness production to prefabricated homes and trailers. More
than $4.7 million in financial
assistance has been approved for
small business establishment and
expansion. This funding is projected to create more than 1,100
new jobs in the manufacturing and
processing sector.
Travel Industry Development
Subsidiary Agreement (TIDSA)
Signed in October 1978, implementation of the $50 million,
five year TIDSA program has
commenced in conjunction with
the Ministry of Tourism and Small
Business Development. The agreement will help take advantage of
the employment and income potential of British Columbia's unique
natural attractiveness as a tourism
To date, 526 general
applications for assistance have
been received under the five main
1. Planning Program develops
long-term strategies, feasibility
and opportunity studies.
2. Industry Organization Program
involves the development of
structures needed to coordinate
travel industry associations.
3. Industry Upgrading Program
provides financial assistance to
upgrade travel industry facilities.
4. Travel Generators Program
creates, improves, or expands
attractions which will entice
tourists to stay longer.
5. Skiing Development Program
aids in the development of
world-class ski resorts offering
year-round multi-recreational
By March 31, 1979 three
planning studies had been initiated including a major study to
prepare a Tourism Development
Plan for the Province. In addition,
the resort community of Whistler
had been allocated more than $9
million destined for community
infrastructural improvements to
assist Whistler in becoming a
world class, year-round destination ski and resort facility.
 p    . .. _ T Jj^fer-   '*.
rogram Coordination
] The Fort Nelson Sewer and
Water Sub-Agreement, signed
in 1975, reached a successful
conclusion during 1978, with
the official opening of the
system in October by the
Premier, the Minister of
Municipal Affairs and Housing,
and the Minister of Economic
1 The Ministry continued its
coordinating role in the 1977
Coal Planning Agreement,
which provides for the cost-
sharing of studies relating to
North East Coal.
Budgeting and financial
planning contributions to the
Cooperative Overseas Market
Development Program continued. This Program, aimed at
increasing export sales and
opportunities for specific
provincial forest industry
products, is jointly funded by
the Ministry of Economic
Development, the federal
Department of Industry, Trade
and Commerce, and the Council of Forest Industries of
British Columbia.
Representatives of the
Ministry participated in the administration of the Agriculture
and Rural Development
Sub-Agreement, and the
Special Agriculture and Rural
Development Agreement.
Foreign Investment Review
The Foreign Investment
Review Act, a federal Statute,
provides for the consultation of
provinces likely to be affected by
an investment proposal subject to
review under the Act. The Branch
was responsible for review of
foreign investment proposals, and
for recommending to the Minister
and Cabinet a provincial position
which, once approved, is forwarded to the federal agency.
During the 1978 calendar year
a total of 125 cases were handled.
Of these, 64 cases came under the
short review process form (adopted
for businesses with gross assets of
less than $2 million and fewer
than 100 employees), and 61
under the regular more detailed
review process. Of the 61 regular
cases, 58 were allowed and 3 were
disallowed. Of those approved 36
involved the acquisition of
wasting businesses and 22
involved the establishment of new
lusinesses. A significant number
if these approvals were subject to
undertakings which will increase
he benefits to Canada and British
Columbia. It is estimated that over
2,000 new jobs were created and
more than 2,500 jobs were maintained through the approval of
responsible foreign investment.
In addition, the Branch
performed research on overall
investment levels and requirements and closely monitored the
federal agency to ensure that the
Province's economic interests
were respected.
In April 1977, Mr. Lance
Howey was appointed to the
position of European Economic
Adviser to work out of British
Columbia House. His appointment
reflected British Columbia's increasing involvement in international economic affairs.
In December 1978, Mr. Richard
Landahl was assigned to the
position of Business Development
Officer in the same office. Mr.
Landahl brought to this new
position an excellent working
knowledge of the Province and its
industrial and economic base.
Prior to accepting this appointment, he had spent most of his
career in the shipping and
transportation industry.
The top priority of the
European Economic Adviser is to
inform the Minister of Economic
Development on the issues and
progress in the GATT trade
negotiations in Geneva and on
economic and trade developments
in the European Economic
Community that may present
opportunities for, or have an
impact on, British Columbia. He
also calls on European industrialists, bankers, and their trade
associations to stimulate increased
participation in British Columbia
The Business Development
Officer's main activities are to
identify and encourage those
European companies and businessmen most likely to either
 ivest directly in British Columbia
• to establish joint ventures or
censing arrangements with
ritish Columbia firms. He also
isists British Columbia firms in
cpanding and diversifying their
cports to Europe.
ATT Tariff and
•ade Negotiations
The negotiations which will be
included in April 1979, involve
any questions of provincial
risdiction and concern which
iuld have a major impact on
isiness development in the
•ovince. Mr. Howey has main-
ined regular and close contacts
ith Canada's negotiating team,
s Trade Commissioners in
irope, the GATT Secretariat, and
hers close to the negotiations to
isure that the British Columbia
ivernment was well briefed on
e issues as they developed. He
so advised Canadian negotiators
id trade representatives of
ovincial priorities and the
lpact which decisions could
ive on the B.C. economy.
Other Economic and Trade
Policy Matters
Mr. Howey has maintained
close contact with Canadian and
EEC Commission representatives
responsible for the development
of industrial co-operation under
the Canada-EEC Agreement on
Commercial and Economic
Co-operation. He represented
British Columbia on Canadian
delegations and missions
in Brussels.
Mr. Howey monitored and
reported on the negotiations
which led to the development of
the Organization of Economic
Co-operation and Development
(O.E.C.D.) Steel Committee. He
has consulted with European
Government and steel industry
officials and has advised the
Ministry on the measures which
have been taken by the EEC,
U.S.A., and Canadian Governments to insulate their domestic
steel industries from low priced
imports. He assisted the Trade and
Tariff Division in urging the
Government of Canada to relieve
British Columbia steel users from
anti-dumping duties.
Business Development
Because of the high level of
trade policy activity, Mr. Howey
had to limit his business development activities mainly to follow-up
calls on the leading industrialists
who met the Premier's Mission in
September, 1977. Most interest has
been shown in participating in the
development of the Province's coal
and mineral resources.
Messrs. Howey and Landahl
organized and assisted the Trade
and Industry Division in business
development seminars in Holland
and Germany which were attended
by over 200 industrialists. They
helped in the organization of, and
participated in, trade missions to
Britain, Germany, Austria, and
Italy. They advised and assisted
trade groups in Britain, Holland,
Belgium, Germany, France, and
Austria to organize business
development missions to British
Columbia. Since his arrival in
London, Mr. Landahl has been
giving priority to improving contacts with industrialists who could
become involved in secondary
manufacturing in British Columbia.
The Ministry's offices at B.C.
House assisted provincial firms to
develop export opportunities in
3urope, in addition to providing
: nformation and contact service to
he European business community.
The Ministry of Economic
Development provided, in its
1978/79 estimates, for a number of
grants and other financial contributions to support the following
specific activities:
Co-operative Overseas Market
Development Program—$975,000
This program, jointly
financed by the Ministry, the
federal Department of Industry,
Trade and Commerce, and the B.C.
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
third 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
forest industry.
Following a mid-term review
of the program's effectiveness,
which showed that its potential
was being seriously eroded by the
lower value of the Canadian dollar
abroad and by worldwide inflation,
all parties agreed that the funding
levels should be increased.
Because of COMDP involvement, sales of British Columbia
lumber, plywood and shingle
products were increased substantially during 1978. For example,
British Columbia plywood was
introduced and marketed in Italy
and Denmark and a strong growth
of platform frame construction in
Holland resulted in an increased
consumption of interior lumber
and western red cedar.
The program continued to
successfully break down technical
barriers to allow greater product
acceptance in overseas markets.
For example, lumber grade
demonstrations were held in Italy,
France, Germany, Holland and
Belgium. The Japanese Standard
was revised to bring it into line
with the National Lumber Grade
Association which will increase
British Columbia product
acceptability in Japan.
Canada West
The Ministry contributes
a grant to this non-profit society
whose broad objective is the representation and realization of Western
Canada within Confederation. The
Ministry has an elected representative to the Foundation.
The Foundation is currently
engaged in several major studies
of interest to British Columbia:
a study of Western Canadian
agriculture, the development of an
economic/industrial strategy for
Western Canada, an assessment of
coal potential, and a major
analysis of the problems and
prospects for developing the water
resources of the four Western
During the early months of
1979 the Canada West Foundation
sponsored a total of fifteen workshops in the western provinces.
These included the following
British Columbia workshops in
Prince George, Kelowna, Victoria
and Vancouver.
Junior Achievement—$15,000
The Junior Achievement
Program is designed to introduce
students to the workings of
business enterprise. The grant,
which contributes to the general
funding of the program, is
indicative of the Government's
recognition of the important role
played by the organization.
The grant is also used to fund
awards for students showing the
most imagination and enterprise
in their mini-business ventures.
During 1978, members of
Junior Achievement formed and
managed 45 separate mini-business
ventures, each manned by 20
teenagers. Approximately 150
adults, giving freely of their time,
provided advice and support.
B.C. Research Council—$320,000
B.C. Research is a non-profit
research society located adjacent
to the University of British
Columbia. It conducts contract
research for industry and government, and maintains co-operative
relationships with other research
One project funded by the
grant involved the development of
a magnetic tape attachment to a
highway scanning device called a
photo logger. This product is now
being marketed to highway maintenance departments throughout
North America.
Another project involved the
production of specialty chemicals
by electro-chemical methods, a
potentially new industry designed
to take advantage of British
Columbia's abundant hydroelectric potential.
In another area, the grant
funded an investigation into
methods of inhibiting the breeding
of black flies in streams. This work
resulted in a practical system for
black fly control.
A portion of the grant was
used on improvements to the Ocean
Engineering Centre, the facility for
testing models of ships and offshore structures. Naval architects
and owners of deep sea equipment
are now utilizing this facility thereby strengthening the Province's
reputation in ocean engineering.
During the year, the grant
supported a technical information
service for use by industry and
government. Over 1,300 enquiries
were handled.
 Ministry of
Economic Development
Staff Complement
March 31, 1978
March 31, 1979
Minister's Office
General Administration
Central Statistics Bureau
Program Implementation and Coordination Branch
Econonic Analysis and Research Bureau
Policy Planning*
Business and Industrial Development Branch
Small Business Assistance*
*17 established positions were transferred to the Ministry of Finance, and Tourism and
Small Business Development.
0  «
 Ministry of Economic Development
Organization Chart
(On November 30, 1978)
-| B.C. Rail
B.C. Research
Deputy Minister
Planning &
& Coordination
Trade &
Business and
Analysis &
Prog. Design
 Ministry of Economic Development
Organization Chart:
(On March 31, 1979)
Deputy Minister
Analysis &
Trade &
& Social
B.C. Rail
B.C. Research
LB.C. Harbours
Business and
In dustrial
Development and
Capital Projects
& Coordination
Economic &
Services &
mentat: on
Analysis &
Prog. Design
illowing is a list of publications
sued by the Ministry in 1978:
onthly Bulletin of Business
monthly summary and review of
irrent economic and business
;tivity with statistical data
lowing comparisons to the
evious month and the same
onth of the preceding year. Also
mtains special articles of current
terest and lists new publications
they are released by the
C. Market News
ewsletter for businesses in
:itish Columbia. Outlines current
isiness activities and introduces
;w Ministry programs.
ade and Industry Bulletin
i-monthly listing of foreign
lquiries regarding distribution
id manufacturing of foreign
oducts under licence in British
ritish Columbia Economic
ctivity, 1978 Review and
nnual summary and review
1 the economic pattern of the
irrent year and an economic
itlook for the following year.
Iso contains a statistical supple-
ent with ten year historical
eternal Trade Through British
olumbia Customs Ports
nnual report providing
ith detailed and summary tables
lowing exports and imports
rough British Columbia customs
irts. Includes data by commodity
id country and graphs.
Directory of Importers and
Manufacturers' Agents in British
A catalogue listing. Information is
also listed by commodity groups.
British Columbia Facts '78
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
Industrial and Commercial
Expansion in British Columbia
Two publications detailing active
industrial and commercial projects
in the Province for the first and
second half of 1978.
B.C. Manufacturers'
Directory 1978
A listing of manufacturing activity. Indicates products manufactured, first alphabetically by
company and then by product
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
s ell goods and services to provin-
e:ial, municipal governments or
e>ther "public" agencies, corporations, or institutions. Lists key
The publications listed are
available from Information
Services, Ministry of Economic
Development, Victoria, British
Columbia, V8V 1X4, and Ministry
eif Economic Development, #315
Robson Square, 800 Hornby Street,
Vancouver, British Columbia,
V6Z 2C5.
Also contact Information
Services for information on the
availability of all reports, studies,
etc., mentioned throughout the
Annual Report.


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