B.C.’s commercial Crown corps release latest forecasts on budget day

Bob Mackin

Crown Corporation, which operates BC Place Stadium and the Vancouver Convention Center, expects to lose nearly $60 million over the next four years.

BC Pavilion Corporation’s (PavCo) maintenance plan, released Tuesday at the same time as the NDP government’s provincial budget, forecast losses of $12.05 million for the fiscal year ended March 31. BC Place Stadium accounts for more than 70% of the total.

Loss next year is estimated at $17.32 million.

BC Place forecasts an annual attendance of 771,000 by the end of the current fiscal year, but only 656,000 next year.

The number of delegate days at the Vancouver Convention Centre, based on confirmed and provisional bookings, is forecast at 372,000 for delegates outside of Metro Vancouver and 272,000 outside of BC. or.

• BC Lottery Corp. forecasts record net income of $1.62 billion for 2022-2023, the first full fiscal year of normalized gaming operations in what BCLC describes as a “post-pandemic” environment.

Lotteries and Casinos Crown Corporation’s pre-pandemic record was nearly $1.42 billion in 2018-2019. For the coming year, 1.58 billion US dollars are forecast.

BCLC’s service plan says it expects revenue growth from Gateway’s new Cascades Casino in Delta, Lotto 6/49 improvements and the expansion of its sports and other betting site PlayNow.com into Saskatchewan.

The new fiscal year is the goal for completing the replacement of 3,500 lottery terminals and systems across the province, a $48 million project with $11 million remaining to be completed.

“The capital cost of this project increased by $5 million year-over-year, primarily due to ongoing challenges related to the pandemic in the global supply chain,” the BCLC report said.

• The Liquor Distribution Branch forecast net income of nearly $1.18 billion through March 31 and $1.15 billion next year.

“In fiscal 2023-24 and the years ahead, beverage alcohol sales dollars will increase by an average of 2.2 percent, primarily due to low growth in volume in liters sold and higher costs,” the LDB report reads.

Meanwhile, LDB doesn’t expect the surge in marijuana sales to have a material impact on liquor sales. More private pot traders will enter the market, product selection will increase, and direct delivery will improve product access.

• The Insurance Corporation of BC is forecasting a net loss of $298 million for the current fiscal year, a significant change from the $327 million gain it had expected for the year.

“Projected net income for 2022/23 is $625 million below plan, primarily due to investment losses driven by global market volatility amid rising inflation and interest rates,” the ICBC report said.

ICBC expects to break even in 2023-2024 and then be back in the black at $450 million in 2024-2025.

• BC Hydro projects net income of $712 million each year for 2025-2026.

Total revenue of $8.014 billion this year, falling to $7.95 billion next year.

The electric company expects a decision on its August 2021 tariff application with the BC Utilities Commission in spring 2023. The report warns that the regulator’s decision could change revenue and spending forecasts.

Seven capital projects totaling $451 million are expected to come online during 2023.

The GM Shrum control system upgrade and the streetlight replacement program were each budgeted at $75 million. The latter involves the conversion of high-pressure sodium and mercury vapor streetlights from 95,000 BC Hydro to LED.

BC Hydro’s largest project, Site C Dam, is still scheduled to be commissioned in 2025 with an approved 2021 budget of $16 billion. As of December 31, BC Hydro had spent $10.46 billion.

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