The B.C. election outcome is still somewhat in doubt, but with a minority Liberal government for now, how are the markets doing?
Chief Economist with Central 1 Credit Union Helmut Pastrick says markets that are crucial to the province like forestry, lumber, mining, or gas are externally determined.
“For some, there are heightened uncertainty. But the TSX was up, oil was up and the Canadian dollar was up as well, so I don’t think it had any material market impact at this point.”
Pastrick says if there are any drastic changes in the future, that might not last — particularly when it comes to big ticket projects like the Site C Dam or the Massey Tunnel Project.
“It would result in some decline in the amount of fixed investment that might occur. Now, there may well be other projects that could be initiated to take their places. There are substantial plans for transit infrastructure in the Lower Mainland and perhaps for example funds from, let’s say, the Massey Tunnel Replacement would be diverted to one or more of those transit projects. That would be an offset.”
Pastrick says projects like Kinder Morgan and Pacific Northwest LNG likely won’t be impacted because they’ve already been greenlighted by the federal government.
But he says with a minority government there will probably be tweaks in policies.