NDP victory a reminder Canada is no utopia for those fleeing Hong Kong
- The socialist-leaning party’s triumph means its policies of higher taxes, regulation and restrictions on real estate investment are likely to remain in place
- Hongkongers should not put much hope in an NDP-run British Columbia or a Liberal-run federal government to take a hard line against China
Although the official election results will not be announced until all of the 500,000 postal votes are in, the counted votes show that the New Democratic Party (NDP) will gain 55 seats in the provincial Legislative Assembly while the Liberal Party and Green Party won only 29 and three seats, respectively.
The landslide victory is an expected result of the effective response of the NDP minority government to the coronavirus pandemic. British Columbia has so far done one of the best jobs in keeping the virus under control. The province has recorded fewer confirmed cases and deaths than others such as Quebec, Ontario and Alberta.
But its handling of the economy is less reassuring. The NDP has raised taxes and imposed restrictions on economic activities, especially in the real estate sector. The party’s lack of economic vision is surely jeopardising the future of heavily Chinese Canadian-populated British Columbia, especially Vancouver.
The NDP’s political gains are from its success in fighting the pandemic, which will most likely inspire Prime Minister Justin Trudeau’s Liberal Party, the ruling minority in the federal government, to call for an early election. Since Trudeau is more popular than the newly elected Conservative Party leader Erin O’Toole, he can replicate the NDP’s success and regain majority control of the legislature.
Those considering moving back to Canada, however, should take into account the country’s left-leaning policies.
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Now that Vancouver is governed by the NDP, the foreign buyer’s tax and vacancy tax are likely to remain. The NDP might even raise taxes to offset its enormous welfare expenditure, which will make Vancouver less attractive.
Political anxieties aside, many Hong Kong Canadians are reluctant to leave the city. In this part of the world, they have a high income and good quality of life.
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Those in this group who have extra capital are likely to invest in a condo or off-plan property as a backup or holiday housing. Under British Columbia’s current policy, however, not only would they have to pay a vacancy tax, they would also have to bear the risk of volatility in their properties.
This is not the best time to invest in properties in Canada. In comparison, especially for the Hong Kong Canadians who do not live in the country, it would be a safer move to buy in Canadian dollars for fixed deposits. The returns would be much higher than Hong Kong dollar savings.
They should also be mindful not to put much hope in the British Columbia NDP government. As it has won big in the province’s urban areas, including in heavily Chinese-populated Richmond, the NDP will have to please its pro-Beijing voters and not confront China on Hong Kong’s situation.
Hong Kong has gained more international attention than ever. Hong Kong Canadians who live in Hong Kong should pay close attention to events in Canada and keep the country’s political reality in mind, especially after the British Columbia election.
Albert Cheng King-hon is a political commentator
