B.C.'s ports will be even more attractive to Canadian and international investors as the Province moves to make the existing cap on municipal port property tax rates permanent for designated ports.

B.C. continues to build a tax structure that attracts investment. This commitment will encourage significant additional infrastructure expansion, allowing us to get our goods to market - one of the key goals of 'Canada Starts Here: The BC Jobs Plan'.

The caps were introduced in 2004, on a temporary basis, through the Ports Property Tax Act (PPTA). Since then, the private sector has announced, initiated, or completed port investment projects worth more than $1 billion - creating hundreds of new jobs, and significantly improving the competitive position of B.C.'s ports.

Permanently capping municipal property tax rates under the PPTA will provide greater long-term cost certainty for investors, and an incentive for further investment. The BC Wharf Operators Association has estimated that more than $2 billion in future private sector investments in B.C. ports could be stimulated by this proposed amendment.

Additional private sector investment in B.C. port terminals will support economic growth, create full-time, high-paying jobs, and give the province's ports the capacity needed to carry Canadian products and resources to the expanding Asian markets.

B.C will continue to compensate local governments for the resulting impact. Municipal compensation payments are indexed to the rate of inflation. The changes are subject to approval of the legislature.

Quotes:

Transportation and Infrastructure Minister Blair Lekstrom -

"B.C. benefits greatly from this amendment, as it will keep our port tax system competitive and makes our Pacific Gateway the preferred gateway for Asia-Pacific trade. The proposed amendment will encourage investment so our ports can grow to serve our rapidly increasing export trade."

Finance Minister Kevin Falcon -

"This move gives port operators increased certainty and supports long-term investment decisions that create jobs, support trade, and grow the economy."

Robin Silvester, president and chief executive officer of Port Metro Vancouver -

"Port Metro Vancouver is very pleased with the provincial government's decision to permanently extend the BC Ports Property Tax Act. These changes are essential in supporting the competitiveness of Port Metro Vancouver and our industry stakeholders."

"As Canada's largest port and a gateway to Asia, we appreciate the important steps the Province has taken to encourage port investments and create new jobs, while maintaining support for our municipal neighbours."

Don Krusel, president & CEO of the Prince Rupert Port Authority -

"The Port of Prince Rupert is on the verge of historic growth. We are seizing the opportunities of Asia-Pacific trade and working with investors who are eager to share the success of B.C.'s northern trade corridor."

"A permanent cap on municipal property tax makes investment here even more attractive. It means adding tax stability to the long list of Prince Rupert's advantages. The inevitable result will be sustainable growth, more jobs, and long-term benefits for our communities."

Bob Wilds. executive director at BC Wharf Operators Association -

"Marine Terminal Operators welcome the announcement of the permanent extension of the BC Port Property Tax Act. Since 2004, our members have invested in excess of $1 billion in buildings, infrastructure and equipment. With this greater certainty in taxation we estimate that our members will make over $2 billion in additional investments, create an estimated 1,000 additional high-paying full-time jobs in the industry, increase spending in local communities and continue to provide a solid tax base for host communities."

Ian Kilgour, Senior Vice President for Coal at Teck Resources Ltd. -

“Ensuring we have a modern, efficient transportation network is critical to economic growth and job creation across our province. “This decision will allow for continued expansion of B.C.’s ports which, in turn, creates the capacity necessary to support investment in job-creating industries such as mining.”

Quick Facts:

• The Ports Property Tax Act was enacted in 2004 and extended in 2007, to 2018.
• The act capped municipal tax rates on designated port facilities and mandated compensation to municipalities that were affected by a loss of tax revenue (i.e., if tax rates were higher than the capped rate at the time of PPTA implementation).
• These measures addressed concerns from port terminal operators that rising or uncertain municipal taxes on industrial land were impacting investment decisions and putting B.C. port terminals at a competitive disadvantage.
• Currently, 20 terminals with 30 facilities in the following municipalities are covered by the act:

• The Corporation of Delta
• The Corporation of the City of North Vancouver
• The Corporation of the District of North Vancouver
• City of Port Moody
• City of Prince Rupert
• District of Squamish
• City of Vancouver
• The District of West Vancouver
• City of Surrey

Learn More:

Canada's Pacific Gateway: http://www.th.gov.bc.ca/PacificGateway/index.htm

Canada Starts Here: The BC Jobs Plan: http://www.bcjobsplan.ca/

Prince Rupert Port Authority Supports Tax Initiative for BC Ports (rupertport.com)

Squamish Terminals: BC Port Property Tax Act Changes (sqterminals.com)

BC Wharf Operators Association: Port Property Tax Act (sqterminals.com)

UPDATE NOTE: As part of its BC Jobs Plan (bcjobsplan.ca) , on April 2, 2012, the Province released The Pacific Gateway Transportation Strategy: 2012-2020 (bcjobsplan.ca) . They are also seeking public input on this related question: “How can Vancouver become a globally recognized maritime centre of excellence, by 2020?” (engage.bcjobsplan.ca) Join the conversation and share your ideas.

Media contact:

Kate Trotter
Ministry of Transportation and Infrastructure
250 356-8241