Local-first policy is good in theory but…

FRIDAY MORNING EDITORIAL — Ship building isn’t normally a big topic of conversation around here, but it was cause for quite the discussion at Thursday’s meeting of the Thompson-Nicola Regional District’s board of directors.

The board received a letter from B.C. Federation of Labour president Jim Sinclair asking the board to pass a resolution asking the provincial government to ensure that shipbuilding is done in B.C.

Sinclair wrote that there are significant social and economic benefits of building new ships in B.C. The decision to build three new intermediate class ferries in B.C. will mean a $200-million increase in consumer expenditure, an average annual increase in employment of 1,063 workers over three years, and an increase in government tax revenue of $66 million at the federal level and $36 million at the provincial level.

Those are impressive numbers and, rather than simply moving that the letter be “received for information,” some directors thought it was worth supporting. Anything that creates jobs at home is a good thing, they reasoned.

Fortunately, other directors took a broader view, which is that if the shoe were on the other foot — that is, if B.C. companies were trying to get contracts elsewhere — they wouldn’t be pleased to be told some other jurisdiction was allowing only local contractors to apply.

Aside from the economic logic of a level playing field on awarding contracts, taxpayers benefit by being assured they get the best deal possible.

It applies just as much at the local level as it does provincially or federally. Those who call for preferential treatment for local contractors fail to remember that such barriers actually hurt employment and potentially raise taxes.

And that’s true whether it be shipbuilding or building a new sidewalk.