As part of its new budget, the B.C. government is looking to introduce a $400 million fund to allow the province to invest in — and take an equity stake in — certain types of major projects.
These could include defence-related initiatives, critical mineral projects and more.
The goal is for the money — dubbed the Strategic Initiative Fund — to be used for investments taking advantage of the federal government’s new Defence Industrial Strategy. This strategy aims to expand domestic defence production over the next 10 years.
“They have to be profitable,” Premier David Eby said of potential projects while announcing the initiative on Tuesday, Feb. 24. “They need a solid business plan. They’ll have to qualify. They’ll need strong partnerships, like the federal government, to deliver real economic value for British Columbians.”
B.C. points out in a news release announcing the fund that other major jurisdictions, such as Ontario, Quebec, the federal Canadian government and the United States, all have this type of funding flexibility.
Right now, B.C. can only support private-sector companies through grants. The province is trying to profit from these deals by taking equity stakes in companies, issuing loans, signing profit-sharing agreements and providing conditionally repayable grants.
Eby said this type of arrangement creates a “virtuous circle” that benefits everybody.
“In the budget legislation are the tools that allow us to not just write a cheque to a company to locate in British Columbia, but actually to participate with the company and to benefit with the company on behalf of British Columbians as that company delivers profits and opportunity,” Eby said.