6 l ROOFINGBC l WINTER 2018 PRESIDENT’S MESSAGE KEVIN MOSS RCABC President T he Christmas season may seem like nothing more than a distant memory, but we should all take a second to appreciate the early gift handed down to us by the B.C. electorate: The defeat of the proportional represen- tation initiative. The referendum is now clearly in our rear view mirror, but there are two very notable things to remember: One, we can take solace in the fact that the construction industry (and economy as a whole) is much better off with the rela- tive certainty of the current system. And two, this potentially disastrous change to the most fundamental aspect of our democracy nearly became a disturbing reality because Premier John Horgan had absolutely no qualms about stacking the deck and force feeding us a slice of partisan politics. We were lucky to have common sense prevail among the voting A ROUGH ROAD AHEAD? public, but unfortunately, the NDP do not seem to share that (ironically, not so) common sense approach to a number of other files, such as WorkSafe BC (WSBC) funding levels, the Employer Health Tax (EHT) and Community Benefits Agreements (CBAs). And because of this, our members, and the province as a whole, may soon be witnessing the transi- tion from an otherwise healthy economy to the new reality of Horganomics. While WSBC premiums may not seem like a traditional tax, the vast majority of employers in this province are legally required to pay them. It seems then, that these fees are nothing more than a hypothecated, or dedicated, tax (rather than one going into general revenue). But a tax is a tax, no matter what you call it. And (over) taxing industry, and therefore the consuming public who ultimately pay It`s who we are, it`s what we do Low Slope Roof Systems • Metal Roof Systems • Wall Systems Shingle Roof Systems Phone: 250.336.8088 Toll Free: 1.888.318.8642 www.nelsonroofing.com contact@nelsonroofing.com Comox Valley, Campbell River, Powell River, Lower Mainland Pride, Quality, Innovation, Performance & Safety when costs are passed along by business, is exactly what WSBC has been doing for far too long. In their 2017 financial results, WSBC showed an asset to liability ratio of 153 per cent, meaning that their assets exceeded their liabilities to the tune of more than $6.4 billion worth of your money. And while other jurisdictions (e.g. the WSBC counterparts in Alberta, Saskatchewan and PEI) have found a way to correct this same problem by issuing refunds, no such courtesy should be expected in B.C. Along with persistently unfair WSBC rates, the new EHT will hit our industry particularly hard. So with the increasing cost of employment sure to slow job growth, and consistent job growth funda- mental to a strong economy, it’s truly hard to comprehend why the Horgan govern- ment would create an additional tax that specifically targets payroll. And to make matters even worse, the NDP are double dipping into your wallet by charging the new EHT a full year before the Medical Service Plan is completely eliminated. With this tax already in effect, there is not much anyone can do now. Unfortunately, most companies will just have to plug their nose and pay the additional (almost) 2-3 per cent of payroll costs. Over charged WSBC premiums and the new EHT are certain to hamper busi- ness growth in the near future, but nothing on the horizon should be of greater concern to our members than Premier Horgan’s new CBAs. In what many have described as the NDP shamelessly using tax payer money to settle their political debt with the big unions, the government has quietly granted those unions a labour monopoly on major public infrastructure projects. And despite their charming