The B.C. government is boasting that it's still full-speed ahead for the province's multi-billion dollar construction boom despite a shaky worldwide economy, while others see warning signs of upcoming trouble.
The government's latest construction projects inventory shows 863 capital projects worth almost $175 billion underway or in the planning stages.
That's up 30 per cent from last year, when 843 capital projects worth about $135 billion were underway or planned.
Economic Development Minister Ida Chong said Monday the government recognizes the economic challenges the world economic crisis is placing on finances, but British Columbia remains a solid place to invest and develop.
"For the 21st consecutive quarter we've seen an increase," she said. "It's a good sign, given that there are some challenges that we all know about that are occurring globally."
The latest construction inventory quarterly report covered construction activity from last July to the end of September.
The inventory measures projects in B.C.'s Lower Mainland of $20 million or more and projects outside of the Vancouver area of $15 million or more.
The government project inventory showed that construction projects started during the last three months are valued at $2.4 billion, with the largest project being Hotel Georgia redevelopment in Vancouver at $400 million.
Other projects underway are an airport expansion at Kamloops and a cultural centre in Chilliwack.
Major hospital projects are also underway in Kelowna, Vernon and Victoria.
Chong said despite the worldwide economic downturn British Columbia is still seeing interest in construction projects.
"We have a triple-A credit rating so people feel British Columbia is a good sound jurisdiction, fiscally stable," she said. "We also have a good labour force that's readily available."
But a spokesman for B.C.'s unionized construction industry said the construction boom appears to be losing some of its steam.
Several projects, especially high-rise developments in the Lower Mainland, are now on hold, and workers are reporting longer waits between jobs, said Wayne Peppard, a spokesman for the B.C. and Yukon Territory Construction Building Trades Council.
"If you would have talked to me a month or so ago, I would have said things are still looking fairly good into next year," he said. "But recently we've been watching a number of the residential high-rise projects, in particular, shutting down or not receiving approval to move forward."
Peppard said three weeks ago the trades council couldn't fill jobs, "now we're starting to see people go onto the out-of-work list."
Last week, the B.C. Finance Ministry released a financial report that cut the government's budget surplus estimate from more than $1 billion to $450 million.
Finance Minister Colin Hansen said the government will not post a deficit budget in February, but revenue losses of more than $800 million are expected.
He said the government is now forecasting revenue losses of $3 billion over the next three years, but believes British Columbia will escape a recession.
Premier Gordon Campbell said in October the government will continue to invest in public infrastructure projects during the economic downturn to keep the province's economy moving.
