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 Tb the Honourable
HENRY P.
BELL-IRVING, D.S.O.,
O.B.E., ED.
Lieutenant-Governor of
British Columbia
MAY IT PLEASE YOUR
HONOUR:
I beg to submit the
Report of the Ministry of
Economic Development
for the" fiscal year ended
March 31, 1978.
DON PHILLIPS
Minister of Economic
Development.
To the Honourable DON
PHILLIPS, Minister of
Economic Development,
Victoria, British
Columbia
SIR:
I have the honour to
submit herewith the
Report of the Ministry of
Economic Development
for the fiscal year ended
March 31, 1978.
A. L. PEEL
Deputy Minister of
 TABLE OF CONTENTS
Page No.
1. BUSINESS & INDUSTRIAL
DEVELOPMENT BRANCH        3
TRADE AND INDUSTRY
DIVISION 4
SMALL BUSINESS ASSISTANCE
DIVISION 8
INDUSTRIAL LOCATIONS
DIVISION 10
2. POLICY PLANNING AND
RESEARCH BRANCH 11
POLICY PLANNING DIVISION 12
ECONOMIC ANALYSIS DIVISION 13
FINANCIAL ANALYSIS AND
PROGRAM
IMPLEMENTATION DIVISION IS
SPECIAL PROJECTS DIVISION 17
CENTRAL STATISTICS BUREAU 18
TRADE AND TARIFF ANALYSIS
UNIT 19
WOMEN'S ECONOMIC RIGHTS
DIVISION
3. EUROPEAN ECONOMIC
ADVISER
4. GRANTS
20
21
22
5. STAFF COMPLEMENT 23
6. ORGANIZATION CHART        23
7. PUBLICATIONS 25
Left to
Mr. Fred Spoke, General Manager of the 1
Vancouver, Economic Development Ministt
Phillips and the Right Honourable Roy Jt
President of the Commission of Ew
Communities seen together during a tour
Vancouver Harbour fac
 1
BUSINESS AND
INDUSTRIAL DEVELOPMENT BRANCH
Objective
The objective of the BUSINESS AND
INDUSTRIAL DEVELOPMENT BRANCH is
to promote strength, growth and diversity in
the B.C. 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 business.
The Branch is composed of three Divisions:
Trade and Industry; Small Business Assistance,
and Industrial Locations Division.
t*
 TRADE AND INDUSTRY DIVISION
Objective
The TRADE AND INDUSTRY DIVISION has
the capability to pursue two major objectives: 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 the
Division completed a number of specific projects
that included trade missions, trade shows,
industrial development seminars and a series
of export assistance programs.
In addition, officers of the Division visited
2,000 companies throughout the Province and
held 1,800 interviews in the Vancouver office
with business people seeking advice and help.
During the year the Division handled in excess
of 1,000 incoming telephone calls per month.
Export Assistance Programs
The Division is responsible for the
implementation of four programs designed to
assist individual British Columbia manufacturers
explore new export markets. During the year,
166 B.C. companies took advantage of the Market
Development, Incoming Buyers, and Trade Show
Assistance programs. In addition, approximately
100 British Columbia companies participated in
the Trade Mission program. This year a total of
16 trade missions visited almost every major
market in the world. The trade missions
sponsored by the Ministry were as follows:
Food Products
Fishing and Marine
Eguipment
Construction Products
Fabricated Metal Products
Forestry Equipment
Forest Products
Construction Products
Lumber/Manufactured Wood
Products
High Technology Equipment
Miscellaneous Products
Construction
Equipment/Products
Consulting Engineers
Fish Products
Forestry Equipment
Construction Industries
Fishing Equipment
Trade Missions
South East Asia
South East Asia
Middle East
West Germany
South East Asia
Japan
Korea
Western Europe
Australia
Ottawa
Central America
Washington, DC
Western Europe
West Africa
Middle East
South America
Trade Shows
The Division's exhibit was on display at the
Construction Equipment Show held at the Pacific
National Exhibition in November 1977. The
Division also participated in the following shows:
Hostex Show in Toronto in June 1977 was
a national exhibition aimed at the hotel and
catering trade. This year marked the first time
that a large contingent of B.C. manufacturers and
suppliers exhibited together in a common
display sponsored by the Ministry.
Western Manufacturers' Opportunity Show
was organized by the four western provinces to
promote inter-regional trade between the manufacturers of industrial materials and components.
Seventeen B.C. companies attended the
Edmonton Show in September 1977.
World Fishing Exhibition was held in
Halifax in August 1977. Nine B.C. manufacturers of
commercial fishing boat equipment participated.
In addition, Ministry personnel staffed an
information booth where numerous enquiries
were received concerning West Coast fish
products and marine equipment.
South East Asia Sawmill Show was held
in Manila in November 1977. A British Columbia
display featured photographs and information
on 20 local firms involved in the design and
manufacture of logging, sawmilling, plywood
and waferboard equipment.
Gift Shows were held in Seattle in August
1977 and Toronto in February 1978. A total of
30 British Columbia giftware manufacturers
attended the Shows, exhibiting such products as
   high quality jade and ivory sculptures.
Seattle Book Show. In September 1977 a one
day exhibit of B.C. published books was jointly
sponsored by the Ministry of Economic Development and the Seattle office of the Canadian
Consulate. Twenty-two B.C. publishers were the
only exhibitors in this mini-show, which drew
over 150 buyers from the U.S. Pacific Northwest.
Apparel Shows held in Toronto in March
1977 and Montreal in February 1978 drew 12
British Columbia participants from the fashion
industry. On display were a wide range of styles
from leisure suits and sportswear to the latest in
business and formal suits for both men and
women.
Business Development Seminars
Trade: Over 1,000 company representatives
attended a series of trade-oriented seminars
co-sponsored by the Ministry of Economic
Development and the Federal Department of
Industry, Trade and Commerce. These seminars,
which were part of Enterprise Canada 77, were
held in Vancouver, Victoria, Kelowna, Kamloops,
Trail and Prince Rupert, Opportunities for trading
in Latin America, the European Economic
Community, Japan and the U.S. were among the
subjects included for discussion,
Business Development: A series of seminars
on Investment Opportunities in British Columbia
were held during the year in Toronto, Phoenix,
Los Angeles, San Francisco, Seattle and Portland.
More than 350 companies attended these
seminars.
Offset Projects: The Division has been active
in maximizing British Columbia participation in
offset agreements negotiated between Canada
and the suppliers of Leopard Tanks, Long Range
Patrol Aircraft and new Fighter Aircraft. "Offset"
refers to the concept where in order to offset
major purchases made outside Canada, foreign
suppliers agree to purchase their other company
requirements in Canada, To promote this
concept, a series of opportunity briefings were
held for B.C. industries. Representatives from
such companies as Northrop, Lockheed, and
Krauss-Maffei were on hand to identify the types
of Canadian goods and services they could
purchase to satisfy the production requirements
of their own manufacturing activities and those of
their sub-contractors.
Special Projects
Pacific Rim Specialist: During 1977 the Ministry's
Pacific Rim Specialist met with over 300 British
Columbia companies either to tell them about
specific opportunities in the Pacific Rim Market
or to identify how he could help them sell their
products in those markets. Six solo visits were
major capital projects with business opportunities
for British Columbia companies. He was also
associated with three Ministry trade missions into
the area.
Alaska Highway Pipeline Project: In September
1977 Canada and the U.S. formally signed an
agreement to build the northern natural gas
pipeline. In order to identify key opportunities
for B.C. suppliers the Ministry hired a special
consultant to be "our man on the pipeline".
The consultant will also assist B.C. companies
understand the procurement procedures of the
pipeline companies, and their requirements
for goods and services.
Results
The Ministry's support to British Columbia
exporters resulted in $90 million of increased
exports during 1977; the equivalent of 2,500 jobs.
Some of the successful export contracts
included:
• Homexpo Canada Ltd. (a consortium of
B.C. pre-fabricated housing manufacturers) sold
$25 million worth of pre-fabricated housing into
Saudi Arabia.
• Seaboard Lumber Sales Co. Ltd, sold
plywood to West Germany valued at $1 million.
The sale was a direct result of the Leopard Tank
Offset Program,
• Sales of B.C. kiln dried SPF (spruce, pine,
fir) lumber valued at $10 million were concluded
with the Middle East.
• Sales of British Columbia food and other
consumer products in Australia are now worth
$10 million per year.
• As a result of two years development
work undertaken by the Division, sales of winter
herring have been concluded with Western
European Markets. It is estimated that these sales
could reach $25 million per year.
 SMALL BUSINESS ASSISTANCE DIVISION
Objective
The role of the SMALL BUSINESS ASSISTANCE
DIVISION is to improve the stability and assist in
the orderly startup and development of individual small businesses and thereby strengthen the
small business sector of the community.
Management Development
Through the support and promotion of
small business training and education, seminars/
workshops, speaking engagements, and
counselling, the Division is striving to increase
the knowledge and develop the skills of small
business owners and managers throughout the
Province, Emphasis is directed to the practical
rather than the theoretical aspects of business
operation.
Seminar/workshop subjects covered
advertising and business promotion, sales
forecasting and cash flow, financing and the
availability of government assistance programs.
For example, the cash flow seminar explains
to business people how to estimate the amount
of money that will have to be borrowed to
finance day to day operations.
During 1977 the Division conducted and
participated in 34 seminar/workshops which
attracted 770 participants comprised of actual or
aspiring business people. Business advisers also
spoke at secondary schools, colleges, business
associations, trade conferences and other
business and education functions.
The Small Business Education Subsidization
Program helped defray the costs of 87 business
courses and assisted in the advertising and
promotion of 293 others.
Business Development
Business advisers work with owner/operators
counselling in the startup, expansion and operation of individual business enterprises. They
diagnose, analyze, and solve small business
problems and advise on marketing and financing.
Working out of the Division's headquarters
in the Ministry's Vancouver office, the business
advisers responded in 1977 to some 4,500
requests for assistance and replied to a similar
number of general business information
enquiries.
Information Services
Business information is made available through
publication of appropriate business aids,
bulletins and newsletters.
Advisers direct business people to other
sources of information if appropriate.
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,
^GareRMAingfMCp
 Chambers of Commerce, and individual
businesses. These visits, which are known as
"transfers of office", are designed to provide
a counselling service for businesses outside the
immediate Vancouver area.
In 1977, 65 such visits were made to 38
communities. This represented 364 calls outside
of the Lower Mainland and Southern Vancouver
Island.
Technical Assistance
Twenty-five B.C. companies were assisted by
the Ministry's Technical Assistance Program to
hire outside consultants to carry out research and
studies for business improvement.
The Ministry also used a portion of the
technical assistance funds to conduct studies or
support the activities of nine particular industry
sectors. As an example the craft industry was
surveyed, research done and the resulting
information included in the Ministry's new Crafts
Directory. The directory is being made available
to crafts people throughout the Province.
Assistance to Small Enterprise Program
Since the program's inception in November 1977,
until March 31, 1978, over 1,000 general enquiries
were received. This in turn generated 118
specific applications for financial assistance.
From these applications 33 small manufacturing
or processing companies have had loans
approved to assist them in purchasing manufacturing equipment, to erect or buy buildings
or to carry out leasehold improvements.
The total amount of loans made was $623,000
with the average size of loan being $18,880.
 The staff of the INDUSTRIAL LOCATIONS
DIVISION provides guidance and assistance
to Regional Districts and local governments
throughout the Province, helping them improve
the climate for the business and industrial
development within their jurisdiction. Assistance
is also provided in coordinating these development projects with provincial government
ministries and agencies.
In July 1977 the Industrial Development
Subsidiary Agreement (IDSA) was signed
between the Province of British Columbia and
the Federal Government, One section of this
agreement provides for Regional Districts,
outside Victoria and the Lower Mainland, to
take further responsibility for the economic
development of the region and apply for financial
assistance in setting up an office for an Economic
Development Commissioner.
During the latter part of 1977 meetings
were held with Regional Districts, business and
industrial development groups and local government representatives to explain the program and
give guidance in submitting applications for
funding.
Communication has also been maintained
with a large number of communities through a
program designed to help communities organize
and improve their own economic well being.
This program ranges from documenting detailed
information on industrial facilities in the
community, to coordinating their plans with
government ministries and agencies, and guidance, discussions and negotiations with potential
industrial developers. In all cases, the objective
is to improve lines of communication, coordinate
activities, and cut government red tape.
Other important activities involved
participating actively with other ministries or
government agencies leading to recommendations affecting policy and legislative changes
related to community development.
 2
POLICY PLANNING
AND RESEARCH BRANCH
Objective
The objective of the POLICY PLANNING AND
RESEARCH BRANCH is to coordinate overall
policy development, undertake economic and
financial 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 seven Divisions:
Policy Planning, Economic Analysis, Financial
Analysis and Program Implementation, Special
Projects, Central Statistics Bureau, Trade and
Tariff Analysis Unit and Women's Economic
Rights.
Economic Development Minister Don
Phillips, Mel Smith, Deputy Minister in the
Premier's Office, Dr. Jim Rae, Assistant
Deputy Minister of Economic Development
and Premier Bill Bennett during the First
Ministers' Conference in Ottawa.
 POLICY PLANNING DIVISION
Objective
The objective of the POLICY PLANNING
DIVISION is to develop an overall economic
strategy, or policy framework, for the Province.
Within the overall policy framework the Division
develops and evaluates alternative substrategies
for major policy areas, specific policy proposals
and investment projects appropriate to the
economic development of British Columbia.
The Operation of the Division
The staff of the Policy Planning Division serve as
project managers for the required policy work.
The Division utilizes the expertise of other
Divisions and Ministries in addition to providing
guidance on policy development priorities
consistent with the economic strategy and
objectives. Since the Division's role is primarily
advisory, there is heavy emphasis on preparing
clear, understandable presentations to Cabinet
on alternative strategies and policies. Policy
advice is normally based on frequent complex
technical studies and considerable effort is
required to ensure that the options put forward
are readily understood by decision-makers.
Main Policy Areas
Federal/Provincial Policy Issues — The Division
coordinated the preparation of the documents
"Towards an Economic Strategy for Canada"
tabled by Premier Bennett at the First Ministers'
Conference in February 1978. Work continues
toward the development of British Columbia
positions on a broad range of national policy
issues and on means of ensuring that the
Province's views are incorporated in the framing
of such policies. Positions developed on federal
government policies are based on analysis
regarding the kinds of measures, falling within
federal jurisdiction, that are required to support
the Province's own economic strategy and
objectives.
Industry Strategy — Part of the Division's work on
economic strategy is devoted to the development
of an industrial strategy for the Province. This
work requires considerable coordination of
work with Divisions such as Trade and Tariff
Analysis. It is essentially concerned with identifying and priorizing industrial development opportunities and adjustments likely to arise as a result
of changing domestic and international market
conditions, domestic and international policy
changes, and emerging economic circumstances
within British Columbia.
Sector Policies — The Division also undertook
policy developmental work specific to certain
sectors of the British Columbia economy. Policy
analysis covered such areas as the Government's
role in the funding and provision of roads
primarily constructed to access resources; pipeline policy; energy policy; and evaluation of
policies and approaches to the development of
various natural resources sectors.
Prominent among sectors where
considerable policy advice was generated
were coal development and the forest sector.
With regard to coal, extensive analysis was
undertaken on developmental alternatives in
both the northeastern and southeastern parts of
the Province. Studies dealt with evaluation of the
coal resource, market analysis, transportation
and infrastructural alternatives. In terms of the
forest sector, the Division participated on the
British Columbia Forest Policy Advisory
Committee in its review of forest policy and the
disposition of timber rights in the Province.
Primary Divisional responsibility was to analyze
the financial and economic impacts of the
recommendations contained in the Pearse Royal
Commission Report and the new forestry legislation
Related policies such as the taxation of private
forest land and the British Columbia Logging Tax
were also analyzed.
 ECONOMIC ANALYSIS DIVISION
Objective
The objective of the ECONOMIC ANALYSIS
DIVISION is to analyze, interpret and record the
sectoral, regional and international forces
affecting the provincial economy.
The assessment and understanding of
the provincial economy requires an intimate
appreciation of its parts. These include not only
the major resource and industrial sectors that form
the backbone of the economy but also the system
of regional economies contained in British
Columbia and the role of international and interprovincial trade. These various parts, sectoral,
regional and international are analyzed individually, then assembled to form an economic
blueprint.
s*£"
■     ■
1
m  > /J* *
 Activities
Improvement in the economic performance of
the Province is a major objective of the government. The Economic Analysis Division is seeking
to contribute to this aim through constant analysis
and study of certain key aspects of the economy.
These include: productivity, cost competitiveness
of industry, problems of the economy, past and
present economic performance, long term
development prospects, unemployment and
provincial taxation. From these and other
economic activities the Province's economic
development strategy can be kept current,
relevant and dynamic.
During the year the market potential (foreign
and domestic) for a wide range of commodities
was explored, using both statistical and survey
approaches.
A variety of economic studies were
underway or completed by the Division in 1977.
These included an econometric modeling of the
British Columbia energy sector, an analysis of the
Province's strategy with respect to the Alcan
Pipeline, non-ferrous metal market analyses, land
use studies, the Regional Index of British
Columbia, taxation and land tenure studies.
Background Papers/Briefing Notes
During 1977 the Division prepared a number
of background papers and briefing notes for
ministers and government officials. They
included:
• Premier's European Mission
• Visit by Republic of Korea Ambassador
Byung Ki Han
• Visit by German Chancellor Helmut
Schmidt
• Visit by Roy Jenkins, European Economic
Communities
• B.C. Ministerial Mission to Japan and Korea
 FINANCIAL ANALYSIS AND
PROGRAM IMPLEMENTATION DIVISION
Objective
The objective of the FINANCIAL ANALYSIS AND
PROGRAM IMPLEMENTATION DIVISION is to
perform analyses and provide information of a
financial, accounting, and taxation nature in
response to requests from government ministries
and agencies. It also implements and coordinates
inter-governmental and joint government-
industry programs, particularly relating to
financial management aspects.
Activities
Project Appraisal and Evaluation:
The Division is responsible for financial
appraisals of private and public sector project
proposals so as to determine overall viability and
impact; preparation of cash flow projections and
financial implications of government initiatives;
evaluation of projects, briefs, and requests from
other ministries and agencies.
Recent activity included capital and
operating cost development and analyses for
joint North-East coal proposals.
Provision of Information of an Accounting,
Financial and Economic Nature:
The Division provides financial research and
analysis as input in the preparation of Cabinet
documents prepared at the Minister's request by
virtue of his role as Chairman of the Cabinet
committees responsible for Economic Development and Coal, Further, the Division provides
advice and counsel on a broad range of financial,
investment and taxation matters.
Special Studies:
Special studies of an accounting, taxation, or
financial nature are undertaken by the Division,
This year the Division, jointly with the Ministry of
Consumer and Corporate Affairs, directed an
intensive analysis of capital markets in British
Columbia.
Premier Bill Bennett, Prime Minister Pierre Trudeau and Justice Minister Ron Basford witness the signing of the
Industrial Development Subsidiary Agreement on July 8, 1977 following a news conference in Vancouver. Looking
on from left to right are - British Columbia Economic Development Minister Don Phillips, British Columbia
Agriculture Minister Jim Hewitt, Federal Minister of Regional Economic Expansion Marcel Lessard and Minister of
 Program Development:
The Division has a direct responsibility for the
drafting and negotiation of proposed Federal-
Provincial cost-sharing agreements under the
terms of the General Development Agreement.
These agreements involve not only the Ministry
of Economic Development, but also the Ministry
of Agriculture (Agriculture & Rural Development
Sub-Agreement).
During 1977 the Division was responsible
for or assisted in the execution of the following
agreements:
• Industrial Development Sub-Agreement
(IDSA) (Executed July 8, 1977.)
— A $110 million joint B.C.-Canada
Industrial Development Sub-Agreement which
will encourage greater sectoral and spatial
diversification of economic activity in the
Province.
• Agriculture and Rural Development
Sub-Agreement (ARDSA) (Executed July 8, 1977.)
— A $60 million joint B.C.-Canada
program to promote more efficient and economic
development of rural lands in the Province.
• Special ARDA (Executed May 18, 1977.)
— A DREE funded program to assist
native people in rural areas.
• Amendment to extend the N.E. Coal
Sub-Agreement to 1980.
Program Implementation:
The Division is responsible for delivery of various
industrial development and business assistance
programs, and in 1977 these included:
• Implementation of the Coal Planning
Sub-Agreement (signed in January 1977,
providing for the cost-sharing of studies related
to North-East coal.)
• Implementation of the Fort Nelson
Sewer and Water Sub-Agreement (jointly with
Department of Regional Economic Expansion.)
• Budgeting and financial planning
aspects of the Co-operative Overseas Market
Development Program. (Sponsored jointly by
Economic Development; the Department of
Industry, Trade and Commerce; and the Council
of Forest Industries of British Columbia.)
• Representation of the Ministry on the
Management Committee for the N.W. Rail
Agreement, ARDSA, and Special ARDA.
• Implementation of the IDSA program;
jointly with the Business and Industrial
Development Branch.
• The Director also serves as the Provincial
member of the Secretariat to the Federal-
Provincial Industrial Development Committee for
IDSA.
Foreign Investment:
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 Division
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 year, 103 such cases were handled.
In addition, the Division performed research
on overall investment levels and requirements
and closely monitored the Federal Agency to
ensure that the Province's economic interests
were respected. The Division also participated
in investment seminars held in Los Angeles,
San Francisco and Seattle. Over 160 American
company representatives attended these
seminars.
 SPECIAL PROJECTS DIVISION
Objective
The objective of the SPECIAL PROJECTS
DIVISION is to plan, 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.
It also provides close liaison with other
branches in 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, the Annual Review and
Outlook, as well as other sectoral and regional
publications.
Activities
• Conducted, along with the Financial Analysis
Division, a two-phased analysis of capital markets
in British Columbia and the financing of industrial
development.
• Commenced a joint study with Energy,
Mines and Resources, Ottawa, of the feasibility of
processing deep sea ocean nodules at a B.C.
location.
• Currently conducting a feasibility analysis
of establishing a zinc smelter complex at a B.C.
coastal location.
• Completed Ocean Industry Study, designed
to provide information for assessment of
opportunities for development.
• Director served as council member of the
Canada West Foundation and participated in
March conference to explore alternatives
towards developing a more effective federal
system for Canada.
• Division co-ordinated metric conversion
activities of the Ministry along with the Business
and Industrial Development Branch.
 CENTRAL STATISTICS BUREAU
Objective
The objective of the CENTRAL STATISTICS
BUREAU is to satisfy the requirements of govern
ment, business, and the public for statistical
information and forecasts on the economic and
social characteristics of the Province and its
regions, through the utilization of existing data
sources and the development of new statistical
programs. Also the Bureau accesses
administrative data for statistical purposes, and
provides technical statistical advice and services
to government Ministries.
Activities
The British Columbia Statistics Act was
proclaimed in late 1977 and creates within the
Ministry a Bureau which will be able to compile
and access data not previously available to
Government. This activity can now be
undertaken by the Bureau because of the
confidentiality safeguards inherent in the Act.
The Act also provides for access to data
collected by Statistics Canada; enables the
setting of standards for data quality; and provides
for coordination of statistical activity of the
government. The coordination of questionnaire
mailing, for example, should help reduce
duplication and red tape.
The number and complexity of enquiries
received by the Bureau increased from the
previous year. In order to service this demand,
increased utilization was made of computer
systems for both retrieval and processing of data.
The Bureau also continued to expand its
inventory of data available in microfilm and
published form.
Through the use of personnel with expertise
in theoretical and applied statistics, a relatively
greater proportion of the Bureau's activities was
directed to providing technical advice and
consultation to users both within and outside the
government.
Special Projects
• Continued to develop and update a set of
economic accounts for British Columbia which
provide detailed information on the structure of
the provincial economy and major sectors.
• Provided statistical material to government
members and senior public servants for use in
various federal-provincial conferences and
meetings, including extensive data inputs to the
provincial government group working on the
National Economic Strategy.
• Continued to develop and test various
computer models for analysis and study of the
potential for coal development in northeast
British Columbia.
• Developed a financial simulation model of the
pulp and paper industry.
• Developed an on-line, interactive computer
system for the retrieval and assembly of 1976
Census data.
• Examined financial and investment flows
for the major sectors of the British Columbia
economy. Undertook preliminary work on
developing domestic sectors of the provincial
financial flow accounts.
• Prepared and updated forecasts of the British
Columbia economy; laid the groundwork for
developing a forecast model of the provincial
economy.
• Examined Crown land holdings for the
possibility of developing an information base for
potential industrial and commercial locations.
• Developed a preliminary version of a
composite leading indicator of the British
Columbia economy.
• Developed and compiled data on federal
and provincial government spending, revenue,
deficit, borrowing and debt.
Federal-Provincial Liaison
Extensive consultations were held with Statistics
Canada, on a wide range of statistical topics
including: census data, household statistics,
administrative records, manufacturing and
primary industries, merchandising, construction,
prices, labor, transportation and communications,
provincial accounts, and standards and
classifications.
 TRADE AND TARIFF
ANALYSIS UNIT
The primary objective of the TRADE AND
TARIFF ANALYSIS UNIT is to assess and to
recommend Provincial commercial policy
positions to foster the achievement of the
Province's economic development objectives.
Much of the Unit's immediate focus has been on
the developments in the intermediate trade
negotiations under the General Agreement on
Tariffs and Trade (GATT). General and specific
Provincial GATT policy positions have been
formulated to ensure that British Columbia's
interests are reflected in the Canadian GATT
bargaining strategy.
Concurrently, the unit has undertaken
analysis of other Federal trade policies that
adversely affect British Columbia consumer and
producer interests. Prominent examples include
the clothing and footwear quotas and the recent
intervention by the British Columbia Government
before the Anti-dumping Tribunal on Wide
Flanged Steel on behalf of industrial users in the
Province,
esearch Program
With the anticipated resolution of the negotiations
at the July Summit of the major western countries
in Bonn, the Unit has undertaken an evaluation of
the likely impact of the trade barrier reductions
on both British Columbia producers and consumers. A major element of this analysis is an
appraisal of the inter-regional impact of the
negotiated Canadian tariff reductions, and an
assessment of Canada's success in obtaining
export access. The purpose of this analysis is to
identify export opportunities which will emerge
over the next decade, to assess the impact of the
evolving international commercial policy
environment upon the cost- competitiveness of
British Columbia industries, and to recommend
policies which will promote industrial adaptation
to exploit the potential gains from freer trade.
Federal-Provincial GATT Consultations
ig the past year the Unit has maintained a
;tant liaison with the Federal GATT negotia-
;. This has included detailing the specific
ariff and non-tariff barrier reductions that the
■'rovince sees as necessary to conclude a
successful negotiation. The Province has also
defined Canadian trade barrier reductions that
will assist competitive industrial production and
will yield substantial consumer benefits.
The Unit has continued to cooperate with
dtoba in preparing a "Western" position on
common trade policy requirements. Two
documents were released at the recent Western
Premiers' Conference at Yorkton, Saskatchewan.
They are:
1, The Non-tariff Barrier Codes in the Multilateral
Trade Negotiations;
2. Western Trade Objectives,
Intensive negotiations on international
codes to regulate non-tariff barriers to trade will
continue in Geneva into the spring of 1979. The
non-tariff barrier codes involve many issues
under Provincial jurisdiction and are becoming
increasingly important to achieving meaningful
trade liberalization. It will be necessary to
monitor the negotiations on international non-tariff
barriers and to identify the implications for British
Columbia.
During 1977 the Unit became actively involved in
appraising Canadian commercial policies outside
the realm of GATT. The Province has intervened
on behalf of its producer and consumer interests
where Federal policies have been found to be
contrary to British Columbia's interests.
Prominent examples of this include the use of
quotas on imports or voluntary export restrictions
in the clothing and footwear sectors. The Unit is
in the process of estimating the cost of these
programs and is examining alternatives to this
type of industry support which will facilitate
longer-term adjustment.
The Unit recently intervened on behalf of
the Province's industrial consumers of wide
flanged steel before the Anti-dumping Tribunal.
The case was the first in which a provincial
government had intervened. The British
Columbia submission documented the traditional
reliance upon offshore suppliers and indicated
the disruption of normal regional trade patterns
and loss of employment in British Columbia that
would result from the imposition of dumping
duties. The case served to focus attention on the
potential negative impacts that the application of
national commercial regulations have upon the
diverse economic regions in Canada. As a result
of British Columbia's representations, the Federal
Government has granted some relief to the
British Columbia wide flanged steel consumers
by temporarily exempting the Province from the
extra duties levied in other regions as a result
of the Tribunal's decision. The temporary
exemption is in effect pending final resolution
of the whole issue.
 Objective
The objective of the WOMEN'S ECONOMIC
RIGHTS DIVISION is to examine, plan and
recommend on all issues affecting the economic
rights, economic development and socioeconomic status of women in British Columbia.
The Division worked within the framework
of this mandate to ensure that all economic
development projects of the Ministry offered
equivalent benefits to women and men. Staff from
the" Division concentrated much of their attention
on policy review and participation in policy
making committees. Much of this work area
involved review or development of terms of
reference of development studies along with
review of socio-economic impact of economic
development on areas and communities, and
identified target groups within those areas and
communities. Division personnel participated in
impact reviews of coal and pipeline development
and were responsible for developing studies on
Women in Mining and Labour Turnover and
Community Stability.
Activities
Business Workshops — A series of business
workshops co-sponsored by community groups
or women's organizations was coordinated by
the Division to provide information and guidance
to women interested in starting a business of
their own. Most of these workshops were held in
the north of the Province to satisfy a growing
demand from craftspeople attempting to make or
making a full-time living from crafts, The Division
also made available three papers entitled
Making a Living from Crafts, A Market Handbook, and Bookkeeping for Craftspeople to
further encourage the growth of crafts as a small
business.
Resource Centre — The Division served as a
resource centre for many individuals and groups
in British Columbia. It is estimated that over 200
requests for information and statistical data were
processed in 1977. These requests encompassed
requests for survey design assistance, acceptance and forwarding briefs from women's
organizations, providing resource persons for
workshops, putting together LEAP proposals,
providing research material on employment
outreach schemes for native Indians, providing
assistance in planning a university outreach
"Women in Management" course, as well as
answering requests from many individual women
in the Province.
In 1977 Division staff attended conferences
and participated in conference seminars dealing
with Women and Economic Development,
Canadian Research Institute for the Advancement of Women, Canada West Conference and
the Canadian Institute of Planners biennial
meeting.
Federal/Provincial Co-operation — The
Co-ordinator of the Division acted as a provincial
delegate to a federal/provincial/territorial
meeting on the status of women held in Ottawa in
February 1978. The purpose of this meeting was
to design and develop outlines for policy papers
on such subjects as Women in the Development
Process and Women in the Economy aimed at
providing a base for both national and provincial
action plans to promote equality of opportunity
for Canadian people.
 EUROPEAN ECONOMIC ADVISER
Objective
In May 1977, Mr. Lance Howey was appointed
to the position of European Economic Adviser to
work out of British Columbia House, London.
Mr. Howey's many years of experience in senior
federal trade positions and as the person responsible for implementing the Canada-EEC Trade
Agreement give him a unique background for
this responsibility. His appointment reflects
British Columbia's increasing involvement in
international economic affairs. Mr, Howey has
economic, industrial investment, and trade
promotion responsibilities.
The top priority of the EUROPEAN
ECONOMIC ADVISER is to inform the Minister
of Economic Development on the issues and
progress in the GATT negotiations in Geneva and
on economic and trade developments in the
European Economic Community that may
present opportunities for British Columbia. He
also calls on European industrialists, bankers,
and their trade associations to stimulate
increased participation in British Columbia
development.
The current GATT negotiations involve many
questions of provincial jurisdiction and concern
which could have a major impact on business
development in the Province, Mr. Howey has
maintained regular and close contacts with
Canada's negotiation team, our foreign trade
representatives in Europe, the GATT Secretariat
and others close to the negotiations to ensure that
the British Columbia Government was well
briefed on the issues as they developed. He also
advised our negotiators and trade representatives of provincial priorities and the impact
which decisions could have on the B.C. Economy.
One of Mr. Howey's first tasks was the
preparation for and European coordination of
the Premier's Mission to Europe in the fall of 1977.
The response of European business and government officials to this mission was excellent and
Mr. Howey has been welcomed and encouraged
in his follow-up calls on the many businessmen
who met the Premier and his Ministers. The main
areas of interest are participation in the development of our coal and mineral resources and the
possibilities of joint ventures with Canadians in
the production and servicing of the machinery,
equipment and supplies used by our resource
industries.
Mr. Howey advised and assisted European
officials in the planning of European Economic
Community missions to Canada which included
Mr. Roy Jenkins' successful visit to British
Columbia in March,
From his strategic vantage spot in London,
Mr. Howey has been able to provide invaluable
assistance and intelligence to the Trade and
Industry Division in planning and conducting its
European trade development activities. In some
instances Mr, Howey accompanied provincial
mission members on their visits to European
trade fairs and markets.
In carrying out his responsibility to promote
trade, Mr. Howey alerted both the businessmen
and government of British Columbia of developments in Europe which could have provided
opportunities for new investments and increased
trade between British Columbia and Europe. He
also advised European business representatives
on business and economic matters in British
Columbia and Canada.
 The Ministry of Economic Development provided
in its 1977/78 estimates for a number of grants
and other financial contributions to support the
following specific activities:
Cooperative Overseas Market
■IsTZw rnOMUyTi 1
hnfClillllJ
lis 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 B.C.
lumber and plywood products.
In spite of slack markets around the
world the COMDP promotional and market
development initiatives continued to make
inroads into overseas markets; these activities
were supported in part by the lower Canadian
dollar. The Program continued to promote the
Canadian Wood Frame Housing methods in
Japan.
The Research Council is a provincial institute
located adjacent to the University of British
Columbia, Vancouver. The Council works closely
with industry and government and maintains
cooperative relationships with other research
facilities.
The grant funded a number of projects
during the year; for example it was used to
establish a technical information service for use
by industry and government. A portion of the
grant funded an "action research" program, a
problem-solving technique used successfully on
one occasion to reduce labour turnover in areas
removed from urban centres. The funds were
also used to improve the Ocean Engineering
Centre, a facility for testing models of ships and
offshore structures.
$30,00(
The Ministry contributes a grant to this non-prom
society whose broad objective is the representation and realization of Western Canada within
Confederation. The Ministry has an elected
representative to the Foundation,
Several studies have been completed by
the Foundation. One such study is called:
Alternatives Towards the Development of an
Effective Federal System for Canada. The
Foundation also held a major conference on
confederation in Banff in March 1978.
unior Achievement
$15,00C
The Junior Achievement Program is des
to introduce students to the workings of 1
enterprise. This grant is used to fund awards
for students showing the most imagination and
enterprise in their mini-business ventures.
The grant is indicative of the Government's
recognition of the important role played by the
tganization.
 jj          MINISTRY OF ECONOMIC DEVELOPMENT
O                             STAFF COMPLEMENT
Employed                       Vacancies
Total
March 31, 1977                                                          87                                    27
114
March 31, 1978                                                        103                                    41
144
DISTRIBUTION
Victoria
Minister's office  7
General Administration  22
Policy Planning and Research  78
Vancouver
Business and Industrial Development 36
London      1
TOTAL    144
6
MINISTRY OF ECONOMIC DEVELOPMENT
ORGANIZATION CHART
MINISTER
-
EXECUTIVE
ASSISTANT
I   B.C.D.C.
H B.C. RAIL             i
i B.C. RESEARCH 1
DEPUTY
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ESTABLISHING
A BUSINESS
IN BRITISH
COLUMBIA
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report
1976