Ottawa’s federal budget, tabled Thursday by the finance minister, includes a range of spending measures for British Columbia aimed at strengthening business investment as the country contends with U.S. tariffs and broader global uncertainty. The incoming B.C. premier, Lorne Doerkson, welcomed the investments in energy, ports, mining and forestry, pointing to projects such as the Roberts Bank Terminal 2, the second phase of LNG Canada and an extension of the Red Chris Mine.
The largest forestry commitment is $6.5 billion over six years for modernization of the forest sector. Within that envelope, the federal government is offering a $65 million loan guarantee for a tree farm operated by the Tla’amin Nation on the Sunshine Coast. The Nation recently acquired Western Forest Products’ Stillwater operation. The B.C. Council of Forest Industries welcomed the support, though the funding does not begin flowing until the 2027–28 fiscal year.
Mining receives $2.3 billion for the Critical Minerals Strategy, covering mining technology and specific projects. The exploration industry, however, expressed disappointment that the Canadian Exploration Expense deduction was not expanded. Separately, the budget proposes a $50 billion Canadian Earthquake Insurance Facility intended to backstop insurers in the event of a catastrophic earthquake. Southwestern B.C. is identified as facing significant earthquake risk, and the province would be directly affected by such a facility.
Other measures address hazards and recent events. The budget allocates $20 million for flood mitigation in B.C. this fiscal year. It also offers up to $2.5 billion in financing for De Havilland Canada to produce waterbombers, a commitment that aligns with Doerkson’s earlier pledge to add more Crown-owned waterbombers to fight wildfires. Okanagan wineries, which suffered wildfire damage and disruption this summer, are covered by $176.9 million over three years to renew the wine sector support program.
The budget also sets aside $113 million in 2026–27 for recovery in Tumbler Ridge, following a mass shooting in February, and a further $10 million a year for four years for ongoing supports in the community. Funding for the George Massey tunnel replacement, previously announced at $3 billion, remains in place. The B.C. Conservatives have said they would scrap the tunnel plan in favour of a 10-lane bridge instead. Several additional projects in Vancouver, Delta, New Westminster, Surrey and Duncan are supported through the Build Communities Strong Fund.
Reactions across the province have been divided. B.C. NDP MLA Jennifer Whiteside credited the work of the former NDP government in building the relationship with Ottawa that produced these investments. B.C. Green Party leader Emily Lowan, by contrast, described the budget as corporate welfare and objected to the deductions available to the oil and gas sector.
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