Here in West Vancouver and across British Columbia, there’s a topic being discussed around quite a few dining room tables: the announcement that the BC NDP and Green Parties have joined forces to take on the Liberals in the next provincial election. As the merger could potentially impact the markets, Mailey Rogers Group is keeping a close eye on these developments and is prepared to make adjustments as required.
This week on the blog, we wanted to share some interesting material on this very subject. The following was produced by the Global Portfolio Advisory Group at Scotia Capital Inc. It can be read in full here, but here’s an excerpt that we found particularly interesting:
With the BC NDP and Green Parties coming to a four-year “Confidence and Supply Agreement” (pending NDP caucus approval – expected Tuesday), we are updating our views on the implications for E&P equities exposed to BC. In our previous report we detailed the results from the ballot boxes and experiences of minority governments in Canada. While the question of which party or parties will form the next BC government remains open, the potential for a NDP/Green Party stable minority government has dramatically increased with this announcement. While the formation of a BC provincial government could take one of several paths from this juncture, we believe that a NDP/Green Party stable minority government would be a near-term negative for the equities of companies with significant BC exposure.
Now what? Enter the Lieutenant Governor. Recall, the Liberals won in 43 ridings while NDP took 41 and the Green party secured three (44 seats are needed for a majority). The Lieutenant Governor of BC is Judith Guichon, who was appointed to the role in 2012 to represent the crown in the province. Christie Clark announced May 30th her intention to advise the Lieutenant Governor that the Liberal party would like to proceed with a throne speech in an effort to win over Green or NDP MLAs who may support a Liberal Government. If that throne speech were to fail to gain passage, the Lieutenant Governor could dissolve the Legislature or invite the NDP to form a government.
As the days and weeks go on, Mailey Rogers Group will remain on top of political developments and ensure that our clients’ investments are attended to with the very high level of personalized, strategic wealth management service that we are known for. No matter what the political climate, we are dedicated to preserving and growing wealth for the families we represent. If you have any questions about your investments or wealth management plan, feel free to give us a call. And, keep reading our blog for weekly updates from Mailey Rogers Group.