VICTORIA, B.C.: While British Columbia’s credit rating suffers its fifth downgrade in four years, the BC NDP government is rolling out a $1-billion loan guarantee program reserved exclusively for Indigenous-led projects. Announced June 16, the First Nations Equity Financing Program offers government backstops for band councils and Indigenous development corporations. If these projects fail, British Columbian taxpayers will be on the hook to cover the losses. Every other business and entrepreneur in the province must secure financing without this special government backstop.

Scott McInnis, Critic for Indigenous Relations, raised concerns about the risks and sustainability. “Indigenous communities deserve real economic pathways, but government should not be removing all the risk from business ventures by backstopping them with taxpayer guarantees,” said McInnis. “Such support should be extended equally to all British Columbians who need it. If government can not afford to make this available equally, then it should not go forward with it at all. We need reconciliation approaches that deliver genuine results without creating an uneven playing field or exposing taxpayers to unnecessary risk.”

“Access to capital is crucial for small businesses that create jobs across BC. Most entrepreneurs must earn the confidence of a lender based on their idea, their track record, and their ability to repay, without a government backstop,” said Gavin Dew, Critic for Jobs, Economic Development, Innovation & AI. “We all want to see the next generation of Indigenous entrepreneurs succeed on their own merits. But government should be opening doors for every entrepreneur, not giving one group access to an advantage that other job creators cannot get. A strong economy needs a fair playing field.”

Kerry-Lynne Findlay, Leader of the Conservative Party of B.C., called the policy misguided. “This is neither fair nor smart,” said Findlay. “At a time when B.C.’s credit has been downgraded for the fifth time in four years, the NDP is putting taxpayers on the hook for up to a billion dollars in guarantees offered to some groups but not others. Support should be available equally to all British Columbians who need it. Government has no business deciding who is deserving of help and who isn’t. The NDP has once again shown they govern for special interests rather than for the benefit of all British Columbians. B.C. deserves fiscal responsibility, unity, and equal opportunity, not more potential debt and special treatment for some but not others.”

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Media Contact:
Nikki Bal
Conservative.Communications@leg.bc.ca
+1 (672) 922-0948