The latest BC Check-Up completed by the Institute of Chartered Accountants of British Columbia (ICABC) indicated the Kootenays have been hit hard by the effects of the nation-wide recession.

In an article titled “Kootenays reeling from recession,” ICABC representative for the Kootenays Amed Naqvia says the numbers, which state 5,600 jobs were lost in 2008 with a “worst performance in the province” equalling a 7.3 per cent decline. The numbers are based on a recent Stats Canada Labour Force Survey.

He states in his article that, according to BC Check-Up, the Kootenays were in “rough shape before the current recession even began” because of the decline of forestry in late 2007 which is still underway.

The good news is that the primary resource sector has secured its fourth consecutive year of gains as of 2008. “Mineral exploration in the Southeast Region remained strong at an estimated $42 million, just down slightly from last year’s record of $43 million. Roca Mines saw its first full year of operation, and a new mine, Merit Mining Corp’s gold-copper mine near Grand Forks, commenced operations,” states Naqvi.

He also states province-wide, exports of coal grew by 117 per cent over 2007, but by year-end, employment in the primary resource sector declined in response to the dropping of price for metals.

An idea which could help, Naqvi states, is the harmonizing of GST and PST taxes in the province. “It’s more of an administrative, accounting thing. Right now, all businesses are required to report to one agency, the federal agency, for the GST that they collect and the GST that they pay,” he says. “So, it’s a huge process of recording and reporting all this and it’s subject to audit by the federal government.”

He suggests the federal government and the provincial government make an agreement to have the provincial government handle all taxes, and remit what would be taken in for GST to the federal branch. In essence, harmonizing would see businesses create one set of records, instead of two separate ones for the two different governments.

“It’s a small measure. It’s really not addressing the major problem of the economic collapse that we’re suffering, but accountants sort of want to be organized ... It would definitely reduce administrative costs [too],” says Naqvi.

Another good sign things are turning around, Naqvi says, is that housing prices are set to drop 25 per cent in the near future.

“That’s wonderful really, because finally we can have people who can maybe afford a house,” he says. “We don’t need to have these high prices.”