The provincial government released its Budget and Fiscal plan this month, outlining its plans to manage through difficult global economic times. The budget is a measured approach to managing the province's finances as government faces a tough balancing act to maintain hard-won improvements in provincial public finances.
The province's debt to GDP ratio - the main indicator of the government's overall fiscal health - declined over the past decade from a high of 21.3% in 2002/03 to 13.8% in 2008/09. The government's debt to GDP ratio will increase to 15.8% by 2011/12 to accommodate additional capital spending of $2.0 billion and an operating deficit of $495 million in fiscal year 2009/10 and $245 million in 2010/11. The increased capital spending is expected to lever an additional $1.0 billion from the federal government. Arguably, if the global economic crisis deepens, the provincial government has further room to move on northern priorities because of past fiscal prudence.
The Throne Speech delivered in the Legislature sketched the provincial government's near to medium term vision and priorities. Included within the Throne Speech are a number of priorities for Northern British Columbia, including (among other things) accelerating the Cariboo Connector four-laning program, undertaking improvements to the Pine Pass and Highway 16, the Northwest and Northeast Transmission Lines, a new Wood Innovation and Design Centre at UNBC, and an ongoing commitment to work with the federal government to expand the "northern transportation hub at Prince George" and the phase two expansion of the Port of Prince Rupert. Specific funding commitments and timelines for northern priorities detailed in both the Throne Speech and the Budget are expected in the coming weeks.
Economic Statistics
Employment
The number of employed persons in Prince George declined by 700 in January; subsequently, the employment rate declined 1.1% from the previous month. Although employment activity in January was weaker than one year ago (with 2,100 fewer persons employed and an employment rate 3.9% lower than in January 2008), the city continues to maintain a higher employment rate than both BC and Canada (66.8% compared to 61.7% and 62.6%, respectively). Last month's 1.5% employment decline matched the 1.5% decline in the province as a whole, but the city's unemployment rate did not rise as much as that of the province, due to a greater relative decline in the city's labour force. The Prince George labour force declined by 1.2% (600 persons) between December and January, compared to declines of 0.7% and 0.2% in BC and Canada. The unemployment rate for Prince George rose 0.3% to 5.9% in January, compared to increases of 0.8% and 0.6% in BC and Canada (to rates of 6.1% and 7.2%, respectively).
Real Estate
In January, 34 single family homes were sold in Prince George, 17 fewer than in January 2008. Average prices were also down relative to 2008, declining 8.1%; the average price for a single family home was $223,254, compared to $242,877 in the same month last year. Comparatively, the number of residential units sold in BC and Canada declined 57.4% and 41.0%, respectively, in January, fitting with the slowdown in sales seen in Prince George. Average prices declined 8.9% provincially and 11.3% nationally, year-over year.
Housing Construction
There were 4 housing starts in January, down from 17 in January 2008. Housing starts were also down significantly compared to last year in BC and Canada, declining 59.8% and 40.4%, respectively, last month. There were 3 single residential housing units completed in the city in December, bringing the year-to-date completions to 206, down 8.0% from the year before. There were 341 housing units under construction at the end of 2008 (262 singles, 4 semis, 41 rows and 34 apartment units); 2.7% more than at the same time the year before.
Building Permits
The City of Prince George issued 20 building permits valued at $1.1 million in January; this amount is only 19% of the value of permits issued in January 2008. The decline was due mainly to the Institutional permits category; one major project accounted for nearly all of the $3.5 million in permits issued in this category in January 2008, while there were no Institutional permits issued in January 2009. Residential permits were also down 79% year-over-year, accounting for $1.3 million of the total permit decline. Building permits have also slowed in BC and across Canada; in December, permit values were down 23.2% nationally and 65.9% provincially, resulting in total declines for the year of 5.2% and 15.7% respectively.
Business Licenses
The City of Prince George issued 65 new business licenses in January, 18 fewer than in the same month last year. Existing license renewals are occurring at relatively the same rate as the same period last year; in December and January, 2,622 licenses were renewed, compared to 2,654 over the same period last year.
Airport Passenger Volumes
30,459 passengers passed through the Prince George airport in January (14,825 inbound and 15,634 outbound). Passenger volumes were down 15.4% over January 2008.
From: Initiatives Prince George
www.initiativespg.com
