1. Transportation Partnerships Conference July 8 & 9th, 2002
Process Panel
Transportation Partnerships Conference
July 8 & 9th, 2002

2. Overview Fiscal Strategic Budget Legislative Policy Framework
Organizational

3. BC’s Rising Taxpayer Supported Debt/GDP
1998/ /02
Newfoundland
46.5
47.0
30.9
34.7
44.1
47.1
PEI
Nova Scotia
New Brunswick
30.8
24.5
36.2
42.5
33.9
32.5
Quebec
Ontario
21.2
24.1
Manitoba
$4.4. b deficit forecast for 2002/03
tax supported debt forecast to increase from $27.3b in 2002 to $34.3 b in 05
total debt/GDP (i.e. all gov’t) increase from 26.6% in 01 to 31.3% in 2003
23.4
29.4
Saskatchewan
4.4
13.3
Alberta
20.3
21.3 BC 5 10 15 20 25 30 35 40 45 50 55
% of GDP
Source: Toronto Dominion Bank estimates, October 2001.

4. Real Private Capital Formation
% change
Average
46.1%
Real private sector investment = private capital portion of GDP - adjusted for inflation (i.e. real $)
includes investments in residential & non-residential sectors (e.g. commercial, high-rise, industrial), oil & gas infrastructure, investments in technology & computer equipment, etc.
21.2%
Source: Statistics Canada

5. Competitive B.C. Tax Rates
2002 Selected Tax Rates 0% 5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Personal Income Tax
Corporate Income Tax
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
Corporation Capital Tax
43.70%
39.00%
46.40% BC
Alberta
Ontario
0.15% 0%
0.30%
¹Personal income tax: the top marginal rate, including federal and provincial tax rates, is shown.
² Corporate income tax: the rate shown is the provincial rate; Alberta has announced it will reduce its rate to 11.5% by 2004/05; Ontario, plans to reduce its rate to 8%.
³ Corporate capital tax: rate is for general corporations; the BC tax will be eliminated on September 1, 2002.
13.50%
13.00%
12.50%

6. BC’s Cost Structure Competitive With Other Jurisdictions 120 100 80 6040 60 80
100
120
Vancouver
Calgary
Toronto
Ottawa
Montreal
Seattle
San Diego
Portland
Dallas
Raleigh
Total Cost & Tax Index
(U.S. Average = 100)
Source: KPMG Competitive Alternatives 2002 Edition, 12 Industry Average
85.0
87.9
86.2
85.3
105.7
102.2
100.8
103.3
98.7
88.2

7. Strategic Process Strategic Government direction to consider P3s
Ministry Service Plans
Government focus on core business
From:
Command & control
To:
Accountability and performance

8. Budget Process Budget From: Capital as free good
Publicly financed as first choice
To:
All-in & multi-year budgeting
Emphasis on ASD & P3

9. Legislative P3 Considerations: Changes to date
Ability to deal freely with land & buildings
Authority to borrow, incur liabilities, give guarantees & indemnities
Authority to make expenditures and enter into agreements
Approval requirements
Changes to date
Transportation Investment Act & Tolling Policy
School Act
Bill 27, 28 and 29

10. Policy Framework - Objective
Encourage Innovative Delivery Solutions
ASD & P3 part of mainstream capital planning
Assess options
Best value for money & protect the public interest
Guiding principles, standards, and tools
Auguston School

11. Policy Framework - Objective
Establish Best Practices (Traditional & P3)
Business cases & risk management
Transparent & predictable budget process
Competitive & open procurement
Reporting & monitoring standards
Risk based oversight
Tech BC at Central City

12. Partnerships British Columbia
Need:
New risks
Limited expertise in government
Provincial resources managed in silos
Improve planning synergies & cross pollination of ideas
Capture policy experiences
Capitalize on private sector expertise
Mt. Saint Mary (site)
Sunrise Assisted Living

13. Partnerships British Columbia
Vision:
Centre for knowledge & expertise
Educator
Reduce transaction costs
Standard documents & contracts
Advice to government
Deal structures and policy issues
Remove barriers
Help achieve consistent government policy objectives
Entry point for private sector
Help identify & manage risk