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VICTORIA — B.C.’s Business Council is warning the province’s economic collapse due to the coronavirus could shrink the economy by an unprecedented 12 per cent, and overwhelm a new $5 billion action plan unveiled Monday by the government.

Premier John Horgan said the provincial support, which includes deferring a host of taxes for businesses and a $1,000 tax-free cash payment for employees unable to work, will complement previously-announced federal benefits.

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“There has to be hope as we get through these difficult challenging times,” said Horgan.

B.C.’s economic plan represents an eight per cent boost to the $60-billion B.C. budget tabled in February, and is worth about two per cent of B.C.’s gross domestic product, said Horgan.

Though welcome by B.C.’s business sector, it won’t come close to mitigating the damage caused by widespread business closures, job losses, travel bans and the collapse of the tourism sector, said Jock Finlayson, executive vice-president of the B.C. Business Council.