COUNCILLORS and senior staff at the City of North Vancouver are outraged that the B.C. Liberals appointed an "expert panel" to review municipal business taxes - with no municipal representatives on the panel.
The seven-member board, appointed by Finance Minister Kevin Falcon in January, is chaired by the chancellor of UBC and includes a senior executive from an accounting firm, a vice-president of the Canadian Federation of Independent Business, the vice-president of the Vancouver Board of Trade, a former assistant dean of UBC's Sauder School of Business, a former provincial deputy community development minister and the chief financial officer of a gold mining corporation.
The group is tasked with reviewing all aspects of business taxation in B.C., particularly potential improvements to a resurrected PST.
But the January announcement also points out that "a component of the review will also look at municipal property taxation of business."
In a report presented to council April 2, finance director Isabel Gordon pointed out that the panel will also review provincial grants the city receives to support policing and compensate for capped port industry taxes.
"The lack of municipal representation on the 'expert panel' and the lack of consultation with any municipal representatives in the review of municipal revenues has naturally raised consternation and comment in the municipal community," she wrote.
"The city is well aware of the difficulties that can be created when reviews are undertaken without consultation and is concerned that such a review may be one-sided and unfair, or even erroneous."
"When you look at this expert panel," said Coun. Craig Keating, "there is not a soul on it with a municipal background or municipal perspective.
"I'm continually shocked when provincial government officials appear before the TransLink Mayors' Council and are completely befuddled by the reality of municipal finance and the limited sources we have to fund this thing that we have been charged with funding," said Keating. "The struggle has been to get some adequate sources that are proportionate to the kind of responsibilities we have. . . .
"You can't have a consultation process about municipal finance and say 'Step 1, exclude all the municipalities.' It's unworkable, and it will give these people no information about the realities and issues we face at this table."
Coun. Don Bell agreed whole-heartedly. "Property tax is not appropriate as the sole source of revenue in this modern day and age," said the former MP. We have had a dramatically increased range of responsibilities thrust upon local government as the federal government downloads to the provinces and the provinces download to the local level," said Bell.
"It's incredible that the province would put together a panel reviewing sources of revenue for municipalities and not include
municipalities or at least the UBCM (Union of B.C. Municipalities)."
In an email response to the North Shore News, a Ministry of Finance spokesperson wrote: "The expert panel will examine municipal property taxation of business and its impact on business competitiveness and investment.
"Recommendations must address issues of affordability and sustainability for local governments within the framework of the Community Charter. Local governments and others are encouraged to provide written submissions to the Expert Panel on Business Taxation to inform its work for the Minister of Finance on business tax competitiveness and administrative improvements to streamline the Provincial Sales Tax."
Council voted unanimously to write a letter of protest to Falcon, Premier Christy Clark, North Vancouver-Lonsdale MLA Naomi Yamamoto, and UBCM members.
"It would be equally unfair," said Mayor Darrell Mussatto, "if we reviewed taxation without consulting business.
"It's not fair, it's not democratic and it's not accountable."
