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ECONOMIC STRUCTURE
Industry Sectors
The industrial base of the North Okanagan is well diversified
and like many other regions in Canada,
it is growing in the area of services. Traditionally, the economy
of the North Okanagan has been dependant on forestry and agriculture
for growth and expansion. However, over the past ten years, there
has been considerable growth in manufacturing and service economies.
The globalization of the economy, easy export access and advanced
technology have not only allowed new business to move to the region
and still be competitive, but have attracted service professionals,
national retailers, and advanced technology manufacturers.
Industrial Sectors (% of labour distribution)
|
|
|
North Okanagan
|
BC
|
| Goods: Primary
|
8.3
|
4.6
|
| Goods: Manufacturing
|
12.3
|
9.6
|
| Goods: Construction
|
7.6
|
5.9
|
| Services: Non-government
|
68.7
|
74.3
|
| Services: Government
|
3.0
|
5.6
|
Source: BC Stats Regional District Demographic Profile, 2006 Census
The North Okanagan business community is characterized by a large
percentage of small- and medium-sized enterprises. Ninety-one
percent of all businesses in the region have less than twenty
employees and those considered large businesses (200+ employees)
constitute less than 0.5%. The economy is very diverse and no
longer relies on one or two industries.
The increase in the service industries in this region can be attributed
to the ease of transportability,
the availability of technology,
and the desire by professionals to enjoy the
North Okanagan lifestyle while at the same time growing
their businesses.
| Number of Business Incorporations
|
| Year
|
N. Okanagan
|
B.C.
|
| 2004
|
260
|
24,703
|
| 2005
|
421
|
30,937
|
| 2006
|
479
|
33,273
|
| 2007
|
504
|
34,036
|
| 2008
|
421
|
30,085
|
Source : Ministry of Finance, BC Government, 2006
Major Projects
The North Okanagan has major projects in various stages of progress.
(Source: BC Major Projects Inventory):
Vernon Jubilee Hospital Expansion:
Multi-story diagnostic and treatment centre for the Vernon Jubilee hospital. Infusion Health KVH was
awarded the contract to construct the project, along with the Kelowna General Hospital Patient Care Tower
as a single contract in August 2008. As a single contract, the combined capital cost is $432.9 million
(reported under Kelowna General Hospital Project ID 685). The Central Okanagan Regional Hospital District
and the North Okanagan Columbia Shuswap Regional Hospital District are contributing a combined $166M toward
the total capital cost of this contract. The expansions have been designed to meet Leadership in Energy and
Environmental Design (LEED) Gold certification.
Status: In Progress
Construction started Start: Sep 2008
Estimated Cost ($ million)
Finish: Summer 2011
Sparkling Hill Resort and Spa:
A 150-room hotel, 240,000 sq. ft. wellness
spa and conference centre to be developed in three phases is integrated
with the summit and existing reservoir.
Phase 1 includes the hotel and is expected to complete in Spring 2010. Also included is 4,500 sq. ft. of commercial
space. The City of Vernon approved rezoning and the Community plan.
Website:www.sparklinghill.com
Status: Construction Started
Start: Fall 2008
Estimated cost: $100 million
Finish: Spring 2010
Silver Star Ski Resort Expansion:
As part of a ten-year resort master plan, there are numerous ongoing projects. Concert Properties built 12 townhouses
and a 40 unit condominium building in 2003. Phase 1 of the 54 unit Snowbird Lodge in the Village began construction
in Spring 2004 and completed Feb 2005. Phase 2 of the Snowbird Lodge contains 60 units which completed construction
in Summer 2006. The Ridge has 70 building lots with provision for single-family homes. The Vance Creek Hotel is a
19 unit leasehold development and the Pinnacles Suite Hotel has completed three townhouses in the East Wing.
The Silverwood Lift completed construction Dec 2005.
Website: www.skisilverstar.com
Status:Construction started
Start: 1999
Est. Cost $ 150 million
Finish: Fall 2009
Labour Force
The labour force of the North Okanagan
has many characteristics which can be found in full detail at
BC
Stats and Statistics Canada. Generally, the labour force consists of
individuals 15 years and older who are employed, or unemployed
and actively seeking employment. As of November 2009
the unemployment rate for the Thompson-Okanagan was 6.3%. The
North Okanagan
is a tourist destination region and therefore there are moderate
employment fluctuations during the different tourist seasons.
This is reflected in the percentage of full-time/full-year workers
in the region.
Participation Rates (2006)
| North Okanagan |
BC |
| 61.9% |
65.6% |
Source:
BC Stats, 2006 Census
In the past the
North Okanagan
relied heavily on primary industries for its economic development
growth. To this day, forestry and agriculture continue to be important
industry sectors for the region. However, over the past five years
the
North Okanagan
has encouraged
the diversification of its economy, resulting in a significant
increase in service industries in the area. Service industries
have relocated or emerged due to:
- availability of highly skilled
workers
- advanced education/training
facilities
- attraction and retention
of professionals through quality of life opportunities
- ease of accessing export
markets
- high quality/quantity of
technical infrastructure
- the portability of the service
industry
| Experienced Labour Force By
Industry 2006 |
| Total
Industries |
30,690 |
| Agriculture, Forestry,
Fishing & Hunting |
2,320 |
| Mining, Quarry,
Oil & Gas Extraction |
85 |
| Utilities |
220
|
| Manufacturing
Industry |
3,685 |
| Construction
Industry |
1,715 |
| Transportation
& Warehousing |
790 |
| Wholesale
Trade |
1,065 |
| Retail
Trade |
4,640 |
| Information
& Cultural Industries |
355
|
| Finance
& Insurance |
975 |
| Real
Estate, Rental & Leasing |
755
|
| Professional,
Scientific & Technical Services |
1,655 |
| Management
of Companies & Enterprises |
30 |
| Administrative
& Support, Waste Mgmt |
1,070 |
| Educational
Services |
1,840
|
| Health
& Social Service |
4,065 |
| Arts,
Entertainment & Recreation |
770
|
| Accom.,
Food & Beverage |
2,180 |
| Other
Services (excluding Public Admin) |
1,565
|
| Public
Administration |
915
|
Census 2006
Source: Statistics Canada
Updated March 2009
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Self Employment
Self-employment rates in the North Okanagan
are above the BC average as many individuals take advantage of
the entrepreneurial spirit of the community and the support resources
available for small business. Much of the entrepreneurial development
has occurred in the service sector, particularly in emerging industries
in the high technology and tourism sectors. The location of the
North Okanagan and the quality
of life associated with the region often attract professionals
to start up their profession and/or move their practices from
other locations. Engineers, doctors, business consultants, accountants,
architects, software producers, and many other professional service
enterprises have moved to the area and are successfully providing
services in the local community or are exporting their services
domestically and internationally.
Percentage of Self Employed
| North Okanagan |
BC |
| 8.5% |
7.6% |
Source: BC Stats, 2006
Updated March 09
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Labour Standards
| The
accompanying table presents a brief summary of important
labour legislation in British
Columbia. |
| Provincial Labour Legislation
in British Columbia |
| APPLICATION |
PROVISIONS |
AUTHORITY
& RESPONSIBILITY |
| Employment
Standards |
|
Employment Standards
Act
Ministry of Labour |
| Minimum
Wage |
Cdn.
$8.00/hr. |
|
| Hours
of Work |
Up
to 40 hrs/week at regular pay |
|
| Vacation |
2
weeks/year paid at 4% of gross annual pay |
|
| General
Holidays |
9
days/year with pay |
|
| Maternity
leave |
Up
to 17 consecutive weeks without pay and full reinstatement |
|
| Parental
leave |
Up
to 37 weeks without pay and full reinstatement (35 weeks
for subsequent pregnancies) |
|
| Termination |
Dismissal
for cause with 2 weeks' notice or pay in lieu |
|
| Factory
Standards |
Standards
for employee facilities in the workplace |
Workplace
Act
Workers' Compensation Board |
| Occupational
Health and Safety |
Workplace
inspections for health/safety |
Workers'
Compensation Act
Workers' Compensation Board |
| Human
Rights |
Prohibits
discrimination by race, ethnic origin, religion, sex and
age |
Human
Rights Act
Council of Human Rights |
Last updated March 2009
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Federal and Provincial Taxes
Corporate Taxes:
Business taxes in Canada
are levied by federal, provincial and municipal levels of government
and are similar to the basic forms of taxation in the United States. For a listing of
municipal business property rates for the North
Okanagan communities, please refer to the Real Estate
section of this website.
The corporate tax environment in the province of British Columbia
can be very favourable, especially for manufacturing, processing
and research-intensive firms
Federal Tax:
British Columbia, in its 2010 budget, has reduced its corporate income tax rate to 10.5 per cent. And as of January 1, 2011 the rate will be 10-per-cent.The Canadian and British Columbian
governments recognize the vital role of small- and medium-sized
enterprises (SMEs) in the economy, and many federal tax incentives
work to foster an environment in which SMEs can create goods,
generate wealth and reach full potential for growth. Tax incentives
provide the opportunity for small- and medium-sized businesses
in
Canada
to prosper. Incentives include:
- a lower corporate income
tax rate
- special deductions for small
business
- capital gains taxation exemptions
- scientific research and
experimental development tax credit
- film tax credits
As
well, Revenue Canada
has recognized the need to make Canada
a more competitive place for doing business and has taken steps
to make the administration of taxes more efficient and provide
a secure, paperless way to file returns.
Specific information about these federal tax incentives can be
found at Industry Canada. More detailed
information about federal tax credits can be found at Revenue Canada.
Provincial Tax:
Provincial
corporate income tax rates in BC are expressed as a percentage
of taxable income earned in the province. Small Canadian-owned
businesses benefit from a preferred federal-provincial tax rate
ranging from 15 to 29 percent, depending on the business payroll.
The province
of BC also
offers tax credits and incentives for investment. Tax credits
available in BC include:
More
specific information regarding corporate provincial taxes and
tax credits can be found at the BC
Ministry of Finance
Provincial Social Service (retail sales) Tax:
Provincial
sales tax in British Columbia is 7%.
The Consumer Taxation Branch registers businesses that collect
tax on behalf of the province; conducts field audits and inspections
of these businesses' tax collection records; and carries out office
audits and compliance programs.
Businesses must register with the Consumer Taxation Branch and
collect social service tax (retail sales tax) on their taxable
sales and leases, if they engage in any of the following activities:
- selling goods at retail;
- leasing goods as a lessor;
- providing legal services;
- selling parking rights within
the Vancouver Regional Transit Service Area;
- providing taxable services
(e.g. repairs to goods);
- providing telecommunication
services.
The Consumer Taxation Branch will issue you a
Certificate of Registration and provide information on your responsibilities.
Goods and Services Tax:
Currently the Goods and Services Tax (GST) is 5% and applies to the supply of most goods and services in Canada. On July 1st, 2010, BC will be implementing a harmonized sales tax (HST) of 12% which will represent the provincial sales tax (7%) and the GST (5%) and will be administered through the Canada Revenue Agency.
You must register for GST/HST if you are a person, business or organization operating in Canada with worldwide annual revenues from taxable supplies of goods and services over $30,000.00 in a single quarter or in four consecutive quarters. As well, mandatory registration is necessary if you are a taxi or limousine operator whose fares are regulated by federal/provincial laws, even if the revenues do not exceed $30,000.
Registration is not required; however you can voluntarily register for the following reasons:
- to claim input tax credits (ITCs) to recover the GST/HST you pay or owe on your business purchases;
- if you are just starting business activities and want to register before the total worldwide revenues of taxable goods and services exceed $30,000; or
- clients prefer to do businesses with GST/HST registered organizations.
It is important to note that if you voluntary register for GST/HST, it is mandatory to charge and remit on sales of all taxable goods and services, file GST/HST returns on a regular basis and remain registered for a minimum of one year before cancelling the registration unless the commercial activities cease altogether.
Anyone who is not registered cannot charge GST/HST to customers and cannot claim the input tax credits.
More information is available from Canada Revenue Agency. (Link http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html )
Personal Taxes:
The Basic
Income Tax Rate in
British
Columbia is expressed as a percentage
of personal income tax rates determined under the Income Tax Act
of Canada. In addition to the basic rate, the province charges
high-income taxpayers a surtax. Information on the rates and provincial
surtax can be found at BC Ministry of Finance
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