ECABC: GOVERNMENT POLICY IMPACT ON CONTRACTORS

November 4, 2024

MATT MACINNIS

BRITISH COLUMBIA – The provincial government has an enormous impact on the construction sector’s operating environment. As a non-partisan industry association, the Electrical Contractors Association of BC (ECABC) spent a significant amount of time engaging with all major parties to raise awareness for the challenges and opportunities that face our members.

This included proactively providing the parties with platform recommendations prior to the start of the writ period. ECABC encouraged BC’s leaders to commit to three apolitical policies: pass prompt payment legislation in the first session of the new Parliament, commit to enhanced funding for electrical tradespeople, and to name a Minister Responsible for Construction.

I’ll get to what the election results might mean for industry in a moment, but understanding what the results mean for the functionality of government is important context.

BC politics has a well-earned reputation for being wild and unpredictable, and the 2024 provincial election did not disappoint when it came to intrigue and drama.

Barring a seat flipping (again) during the judicial recount, the BC NDP have the slimmest possible majority government with 47 of 93 seats. By convention, the governing party supplies the Speaker of the House, which could mean tied votes on issues where both the BC Conservatives and Greens oppose the government’s direction. In those instances, the Speaker – who typically serves a non-partisan role despite being an elected politician – will be forced to cast a tiebreaking vote.

It is a precarious situation that could change at any moment. It’s not unusual for parties to lose MLAs over the course of a mandate. In the two years since he became Premier, David Eby had two MLAs become Independents. BC United lost multiple MLAs to ejection and defection during the same timeframe. And life happens: people need to take leaves for medical or personal reasons.

I’m not predicting a snap election, however. Despite the potentially challenging management of the Legislature, I think the NDP will manage to retain power for a few years. But there’s no debating that there’s uncertainty.

Uncertainty worries businesses, and the construction sector is no exception.

The election campaign saw many commitments related to infrastructure and construction, but not enough focus for my liking on direct actions to support contractors, skilled tradespeople and construction professionals.

There are positives. The NDP committed $150 million to SkilledTradesBC, which it estimates will double the number of apprentices. Assuming electrical gets a significant share of those resources, this is outstanding news to address the shortage of skilled electrical workers.

The NDP also has a robust public sector capital plan underway, including record investments in hospitals and BC Hydro infrastructure. They have also worked to remove administrative barriers to housing. These projects are significant drivers for ECABC’s members.

I am hopeful that Premier Eby will designate a Minister with accountability to the construction industry in his new Cabinet. It doesn’t need to be a standalone Ministry of Construction, but the lack of a lead Minister for our sector to engage with on key files is a real problem with a simple solution.

There’s also room for improvement.

Prompt payment legislation is the top priority for BC’s electrical contractors, a sentiment echoed by other associations including the BC Construction Association and Mechanical Contractors Association of BC. The legislation was supported by more than 30 construction and business associations – and labour organizations – in a letter sent to the BC Government last year. Unfortunately, we are yet to see a firm commitment from the government on this critical policy.

Prompt payment legislation for the construction industry is standard across Canada. I believe the people building BC’s infrastructure and communities deserve the same protections widely available across the country.

Unfair and predatory payment policies in the construction sector are contributing to the escalation of costs.

Prompt payment legislation is proven and should be passed by all parties in the next full sitting of the Legislature. There’s no reason to wait.

Government policies impact contractors in endless ways, including through the Employer Health Tax, WorkSafeBC, Technical Safety BC and SkilledTradesBC. Simplifying and removing unnecessary red tape, while ensuring each of those entities is supporting not constricting construction, represents a real opportunity for BC’s new government.

Matt MacInnis, President, Electrical Contractors Association of BC

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