1974 Legislative Session: 4th Session, 30th Parliament

HANSARD

The following electronic version is for informational purposes

only.

The printed version remains the official version.

Official Report of

DEBATES OF THE LEGISLATIVE ASSEMBLY

(Hansard)

MONDAY, FEBRUARY 11, 1974

Afternoon Sitting

[ Page

127 ]

CONTENTS

Routine proceedings

Budget address. Hon. Mr. Barrett — 127

Special Funds Appropriation Act, 1974 (Bill 7).

Hon. Mr. Barrett. Introduction and first reading — 141

Municipalities Aid Amendment Act, 1974 (Bill 9).

Hon. Mr. Barrett. Introduction and first reading — 141

Burrard Inlet (Third Crossing) Fund Amendment Act, 1974 (Bill 10).

Hon. Mr. Barrett. Introduction and first reading — 141

Income Tax Amendment Act, 1974 (Bill 11).

Hon. Mr. Barrett. Introduction and first reading — 141

Succession Duty Amendment Act, 1974 (Bill 12).

Hon. Mr. Barrett. Introduction and first reading — 141

Probate Fees Amendment Act, 1974 (Bill 13).

Hon. Mr. Barrett. Introduction and first reading — 141

Social Services Tax Amendment Act, 1974 (Bill 14).

Hon. Mr. Barrett Introduction and first reading — 141

Elderly Citizen Renters Grant Amendment Act, 1974 (Bill 8),

Hon. Mr. Nicolson. Introduction and first reading — 142

British Columbia Auditor-General (Bill 19).

Mr. Gardom. Introduction and first reading — 142

The House met at 3 p.m.

Prayers.

MR. D.A. ANDERSON (Victoria): Mr. Speaker, it gives me a

great deal of pleasure to introduce a guest to the House today. He

comes from a great tradition of public service. His father, indeed, sat

in this House and made a great name for himself as a battler against

corruption in high places. He comes with impressive credentials of his

own, Mr. Speaker. He's a graduate of UBC, a graduate with distinction

from the Masters of Business Administration course at Harvard, and he

comes with a distinction of having won out over three other very fine

candidates by a landslide victory in the North Shore. I give you, Mr.

Speaker, our new colleague to the House, Gordon Gibson.

HON. D. BARRETT (Premier): Mr. Speaker, I too would like to

add my words of welcome to the new MLA. I don't know whether or not I

should admit this, but I knew his father well. I'm not concerned so

much about the relationship, which was one that I enjoyed very, very

much when I was a new MLA, but what I'm concerned about is that it is

beginning to date me by age. Nonetheless, I welcome the new Member, and

I hope that if there are any inherited traits he brings with him his

father's sense of humour.

I'd also at this time, Mr. Speaker, like to welcome to the floor of

the House Dianne Baigent, who was our unsuccessful candidate in that

very by-election.

Also, Mr. Speaker, we have with us the dean of our caucus, a man who

spent many years with us and who is back today for a visit — Arthur

Turner.

Mr. Speaker, by consent among the leaders of all parties, it was

agreed to dispense with the oral question period today. I would ask

leave of the House to implement this agreement.

Leave granted.

Orders of the day.

HON. D. BARRETT (Premier): Mr. Speaker, I'd like to move that

the public accounts for the fiscal year 1972-73 be referred to the

Select Standing Committee on Public Accounts and Economic Affairs.

Motion approved.

Presenting reports.

Hon. Mr. Barrett presents the Report of the Comptroller-General, pursuant to provisions of the Audit Act.

ESTIMATES OF SUMS REQUIRED

FOR THE SERVICE OF THE PROVINCE

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Estimates of Sums Required for the Service of the Province

for the fiscal year ending March 31, 1975.

Hon. Mr. Barrett moves that the said message and the estimates accompanying the same be referred to a Committee of Supply.

Motion approved.

BUDGET ADDRESS

HON. MR. BARRETT: Mr. Speaker, our government came to office

in the fall of 1972 with a mandate to increase the public financial

return on the resources of this province. Such a mandate requires

careful planning, and it is the nature of long-range changes to show

their benefits gradually.

Accordingly, Mr. Speaker, our government decided to meet its most

pressing commitments first, those of improving the financial position

of the elderly citizen and of giving immediate catch-up relief to

school districts and hospitals that had been held back by the previous

administration. But today I have the pleasure to report that our

policies coincided with great prosperity to British Columbia during the

past year.

Combined with sound management of our resources, this prosperity has

put us in a stronger position to undertake the programmes of public

spending that will give British Columbians a chance to benefit directly

from the policies that they endorsed in the last election.

The voters of this province called for a programme designed to

eliminate school taxes from residential property. Our budget today will

provide a substantial move in this direction. The citizens of British

Columbia asked for a broader public direction in housing. Our budget

today will fund several programmes of land assembly, servicing, house

construction and mortgage financing that will make this democratic

right accessible to all citizens.

Municipalities, which lack the taxing flexibility of senior

governments yet face increasing costs every year, will find in this

budget several substantial programmes designed to assist them. Our

government will initiate a programme today that will provide a first

measure of financial relief to renters under the age of 65 years.

Our capital spending will be generous in a variety of areas. Funding

will be made for the imaginative programmes of farm income assistance

and free drugs for the elderly.

These and other benefits amount to a public

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resource dividend, Mr. Speaker, and that is why I

am pleased to present this resource dividend budget on behalf of the

citizens of British Columbia.

When our young government took office 17 months ago, some

irresponsible politicians suggested we would be unwise in our spending,

that the province's international credit rating would weaken, and that

the previous government's accumulated cash surplus would disappear.

None of these things has happened. British Columbia continues to enjoy

the highest ratings possible outside the United States by both Moody's

Investors Service Incorporated and Standard and Poor's Corporation of

New York.

Our cash surplus has actually increased, and is substantially up

from $98,557,814 on March 31, 1972, to $144,354,385 at March 31, 1973.

The huge inherited parity bond demand debt has been reduced by $74

million, Mr. Speaker, to a manageable $179 million, so that it will not

interfere with government fiscal management.

Mr. Speaker, despite major innovative social policies, our

government has been prudent. This prudence is also reflected in the

good news that none of the spending programmes to be proposed in

today's budget will require an increase in tax rates for the individual

citizens of this province.

That's good news indeed, and our government is able to give this

message to our citizens because of their confidence in the economy of

our province, because they worked hard to make this province what it is

today. It is time to bring the dividends back to the ordinary citizens

of British Columbia — the loggers, the fishermen and the farmers, the

wage and salary earners in all walks of life, the men and women and

children whose lives and dreams are invested in the home we call

British Columbia.

While at this point we do not have the audited accounts for the

province representing a full year of management by the government, I am

able to offer a measure of the general performance of provincial

finances and the economy over the past 17 months. I have tabled today

the Comptroller-General's detailed report on the province's revenues

and expenditures for the first nine months of the fiscal year. Hon.

Members will be impressed by the 25.6 per cent increase in revenues.

Some collapse, Mr. Speaker; some collapse!

The major part of the increase in provincial government revenue arises from

the very high level of economic activity prevailing in the province rather than

from any significant change in tax rates. And, Mr. Speaker, not a single firm

has been nationalized. Rather, we have conducted purchase negotiations in the

open market under mutually agreed terms, Mr. Speaker — mutually agreed terms.

We have bolstered the smooth operation of a mixed economy by inviting the business

community to fully discuss problems with us. However, we have made clear to

industry that super profits, special tax concessions granted by former administrations,

or blatant exploitation of natural resources will no longer be tolerated. Business

also must demonstrate more responsiveness to changing social and environmental

values.

Our New Democratic government has not only matched the rate of

economic development reached by the former administration, but it has

surpassed it. Let me point out some of the remarkable gains realized in

1973 over 1972.

The most comprehensive indicator of overall economic well-being is

the change in the Gross Provincial Product. This economic measure rose

an astounding 16 per cent in 1973, an annual increase that compares

very favourably with the province's previous best years, even after

taking the inflation factor into account. Selling value of factory

shipments soared upward by 25 per cent under the first year of our

administration, Mr. Speaker, and public and private investment

increased by 10.4 per cent, compared to only 0.1 per cent in 1972. The

number of jobless, instead of skyrocketing, was actually 8.5 per cent

below the 71,000 unemployed we inherited from the previous

administration, despite a labour force growth of 5.5 per cent. Personal

income rose by 15.4 per cent and corporation profits strengthened too,

Mr. Speaker. And we're happy about that, as long as they pay their fair

share.

Mr. Speaker, I want to turn now to the legislative accomplishments

of our government. In three legislative sessions we have introduced and

had enacted by this House a significant quantity of social legislation

designed to raise the living standards of our citizens. We have been

successful in many respects in a very short time. The Mincome

programme, which had become effective in December, 1972, today now

covers over 121,000 people — who deserve this protection from their

fellow citizens. It also includes an estimated 15,000 people who are in

the new age category of 60 to 64 years of age, and another 7,000

handicapped. And I'm proud to state the guaranteed income for each

person in these categories now stands at $213.85 per month.

The minimum wage level was raised to $2.25 on December 3, 1973, the highest in Canada, and will

[ Page 129 ]

move to $2.50 an hour on June 4, 1974. Contrary to

predictions that the new rate would result in high unemployment, a

provincial government study revealed that few firms had trouble

adjusting, and a federal report shows that the number of unemployed has

actually decreased in British Columbia during the past year. Yes, Mr.

Speaker, we have provided jobs under this government, and we have

reduced unemployment, and we intend to continue those policies.

The recent establishment of the Department of Consumer Services and

the Department of Housing will provide many fundamental and

long-overdue services to British Columbians. Consumer Services will

supply the public with up-to-date consumer information and conduct

extensive investigation into buyer complaints, and a continuous

programme of revising and expanding existing consumer legislation will

be carried out. The Housing Ministry will consolidate, rationalize and

accelerate housing programmes throughout the province. Because adequate

housing is a basic human right, our government intends to increase

building and land development projects as a priority until the needs of

our people are met.

It is not necessary to list the large number of other legislative

improvements in the fields of health, education and other essential

social services, for they are a matter of public record.

Our budget will show clearly that the provincial economy and

government finances are in excellent shape. Large gains were

experienced throughout the various sectors of the economy, and the

Government of British Columbia revenues and expenditures are at record

levels. I am certain that continued sound management of the vast

resources of the province will enable our government to make the 1970s

the most progressive in British Columbia's history.

The past year, Mr. Speaker, was one of expanded consultation and

our government's objective stated in last year's budget address, "to

bring a new direction for British Columbia inside the Canadian

Confederation."

The Western Economic Opportunity Conference between the Government

of Canada and the governments of the four western provinces held in

Calgary, Alberta, July 24 to 26, 1973, was the most important

federal-provincial conference last year, from our point of view, for it

has the potential of producing the greatest long-term advantages to

British Columbia. This meeting was unique for two reasons.

First, the federal government had never met with the provinces of a

region of Canada in open forum to discuss vital issues which, in our

view, hinder western attainment of fulfilment as equal participants in

Canadian Confederation.

Secondly, the four western provinces set aside parochial issues to

present a common position. The agenda included discussions on

transportation, emphasizing anomalies in the Canadian railway

freight-rate structure; economic and industrial development, including

fostering the growth of secondary industry; agriculture; fisheries; and

tariffs.

Mr. Speaker, the submission on "Capital Financing and Regional

Financial Institutions" was particularly important to British Columbia.

This was one area in which the provinces obtained from the federal

government a promise of early action on giving provincial governments

the same right as any other Canadian investor in the holding of voting

shares of a Canadian chartered bank.

The Prime Minister of Canada, in his closing remarks at the

conference, indicated his government's intention to introduce amending

legislation to the Bank Act in 1974 to make this possible. He also

indicated that that was the last western conference that he'd be

having. Nonetheless, it was successful. I think his words were: "Thus

ends the first and last conference of the western Premiers."

Interjection.

HON. MR. BARRETT: Well, nonetheless they did make a promise, and I expect to see that Bank amendment Act in the House this spring.

Government equity investment not only offers the potential of

increased competition in the banks — in the important and essential

banking industry — to the advantage of all citizens and businessmen,

but allows the general public to share in the generous profits of the

industry. And believe me, Mr. Speaker, bank profits are almost as good

as oil company profits these days. Increased competition can only

foster increased responsiveness of the financial institutions of Canada

to the region they serve.

The federal Minister of Finance (Hon. Mr. Turner) introduced in his

1973 budget, without consultation with the provinces, the concept of

annual indexation of the personal income tax. Indexation allows for an

annual escalation of personal exemptions and of the tax brackets in the

schedule of rates by the annual rate of inflation, with the result

taxpayers pay income taxes only on gains in real income.

While we accept the principle of indexing the

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personal income tax, I am concerned over the

federal government making a change in a provincial tax base without

discussions with the province, for the British Columbia income tax is

calculated from the federal base.

As a result of the federal government's action, Mr. Speaker, British

Columbia will lose approximately $20 million in income tax revenues in

1974, and this amount will be compounded in future years. Again, Mr.

Speaker, I want to emphasize that, while I am not against the tax

principle involved, I am concerned that the federal government took

such action alone. Regardless of that action, Mr. Speaker, this

government does not intend to raise its provincial income tax rate from

the lowest level in Canada to recoup this loss. It will remain as the

lowest rate in all of Canada along with Ontario's.

The federal government has joined with the province in a major

undertaking that will be mutually beneficial to Canada and British

Columbia. I am referring to the agreement entered into last year by the

respective governments covering the expansion of the Port of Prince

Rupert and extensions of the British Columbia and Canadian National

Railway systems in the northern part of the province. This co-operative

effort will provide the transportation structure essential to the

development of this area of the province. However, Mr. Speaker, there

is a great deal of negotiation yet to be carried on.

At a First Ministers' meeting in Ottawa last month, the energy

problem, which had been brought to a head by the strong position taken

by the major oil-exporting countries, was fully discussed. Canada is

more fortunate than most industrial nations; we are self-sufficient in

all energy supplies and have a substantial reserve for future needs.

As I see it, Mr. Speaker, the two major energy problems for Canada

are the short-term one of distribution and the long-term one of future

development. The distribution problem should largely be resolved with

the extension of the trans-Canada oil pipeline into Quebec and the

Maritimes, the planned construction of which was announced by the

federal government last month.

Because energy is essential to the industrial state, governments

must be involved in its development as a public utility. Virtually all

the provinces have taken over responsibility for electric generation

for general consumption. The current situation in Canada respecting oil

and natural gas, both essential and irreplaceable energy sources,

demands active government participation. Gas and oil are a national

requirement and the needs of all regions of Canada must be met, ideally

from within Canada.

Mr. Speaker, it is our government's intention to continue the

development of communications with British Columbia's neighbouring

American state. An exchange of views in areas of common concern should

foster the spirit of understanding and cannot but help preserve

friendly relations. It was our distinct pleasure to have two visits

from Washington state representatives during this past year.

The government, Mr. Speaker, is concerned over the increasing costs

of municipal government services relative to the ability of the local

revenue base to support such expenditures. The property tax, the

principal source of revenue for municipalities, has not been as

responsive for their requirements as it can be. The annual limitations

on increases in assessed values introduced by the previous government

to safeguard residences and farms from the tax effect of rapidly

escalating residential property values had the same effect on

commercial and industrial properties. This government considered this

unjust, if for no other reason than the income-tax advantage on

property taxes enjoyed by businesses.

Enactment by this Legislature a year ago of amendments to the

Assessment Equalization Act re-established the intent of the original

Act which was to have the assessment base of commercial and industrial

properties and land held for speculation at 50 per cent of the current

market value.

However, Mr. Speaker, some small businesses, as well as persons

owning small parcels of vacant land for their future homes, have had

increases in property assessments higher than we would like. To

alleviate this situation the government proposes to introduce a partial

property tax deferment of increases above the level of 1973 taxes on

most improved properties and small landholdings.

Further, Mr. Speaker, we wish to remove the immediate burden of all

property taxes for residents 65 years of age and over and for the

disabled, blind and widows through a full deferment of all property

taxes on most homes of persons in these categories commencing in 1974.

MR. G.B. GARDOM (Vancouver-Point Grey): Optional?

HON. MR. BARRETT: Optional; purely voluntary.

Mr. Speaker, it is the idea proposed by many legislators in the

past, proposed to a government that wasn't willing to listen. Now we've

listened and we've brought about this move on behalf of all the people.

I welcome the ideas because this is a receptive government.

One further step this government has taken on business assessments

effective in 1974 is the ending of special property-tax concessions to

a number of industrial firms. Why should the industrial firms receive

tax concessions? It was a question we asked the former administration

and we've now ended that practice. We see no necessity for an incentive

which adversely affects the property-tax liability of other

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property-owners, especially the small people in this province.

I will be proposing legislation today which will initiate our

programme to remove school taxes from residences and farms. Thus, the

total tax burden upon homeowners will be reduced.

The government, Mr. Speaker, is also acting in other ways to assist

the municipalities in meeting their responsibilities. I will shortly

reveal our proposal for direct financial assistance to municipalities

in the next fiscal year. We have already announced our intention to

assume responsibility from the municipalities for the administration of

the provincial courts. This will reduce the substantial municipal

administration-of-justice costs and free highly-trained personnel for

law-enforcement duties.

AN HON. MEMBER: Hear, hear!

HON. MR. BARRETT: Mr. Speaker, in the field of municipal

social services, we have recently taken responsibility for the

administration of welfare services in the City of Vancouver, following

upon similar action in Victoria and Saanich. We also propose to reduce

the municipal share of the cost of welfare programmes in the province

from 15 per cent to 10 per cent.

There are other areas in which we are extending assistance to the

municipalities. Our greatly expanding housing programme has significant

import to the municipalities, and I will be commenting later on our

proposal for financing transit in the lower mainland.

We would hope the municipalities would respond to our proposals to

increase their revenues and to adjust their costs in a positive manner

to the benefit of the homeowner. By the provincial government assuming

some of the municipal-expenditure responsibility while increasing

support to municipal revenue, municipalities have more flexibility to

budget without the need for excessive increases in property-tax mill

rates.

Mr. Speaker, shortly after the 1972-73 fiscal year end, the Abridged

Public Accounts and the British Columbia Financial and Economic Review

were released in order to provide an accurate, up-to-date picture of

the provincial government and Crown corporation fiscal positions. I

have already distributed the detailed public accounts for the year

ending March 31, 1973 to the House to be carefully analyzed by the

Select Standing Committee on Public Accounts and Economic Affairs. My

comments here therefore, will be brief.

There were impressive increases in that fiscal year in the value of

provincial government fixed assets, total assets, and excess of assets

over liabilities and reserves. Fixed assets as of March 31, 1973 of

$1,565 million were approximately $140 million above those of March 31,

1972. While the total assets were up 12.8 per cent, the provincial

surplus, or excess of assets over liabilities, grew to a gain of 11. 5

per cent.

Revenue receipts went up from $1,437 million for the fiscal year

ending March 31, 1972 to $1,667 million in the past fiscal year, a gain

of 16 per cent in one year, or $230 million.

Expenditures from current revenue, including all capital, registered

a 14.2 per cent gain over the previous year, as $1,621 million was

appropriated in the fiscal year ending March 31, 1973. With the

addition of $45 million in revenue surplus for the fiscal year 1972-73,

the budgetary cash reserves of the province climbed to $144 million

compared to $98 million we had when we came to office, Mr. Speaker.

The direct debt of the province decreased by $999,407. The direct

debt. We do have debt. If some Members would like to leave the House at

this part of my speech to preserve a sacred memory, they may do so.

(Laughter.)

The direct debt of the province decreased by $999,407 in 1972-73 and

totalled at fiscal year end $46,753,164, all fully covered by

sinking-find investments. The gross contingent liability debt of the

province grew by $250 million to reach $3,248 million as of March 31,

1973, offset partially by sinking-fund investments of $298 million.

The spectacular gains attained in 1973 in all sectors of the

provincial economy make the year one of the best in the province's

history and equal to any of the overall annual growth records realized

under any former government. Much of this advancement was a direct

result of exceptional business activity in the economy, together with

excellent national and international markets for our natural resources,

many selling at record prices — and, I might say, Mr. Speaker, record

returns from those resources because of this government's policies.

The value of the 1973 export shipments expanded in nearly every

market, bringing the total to $4,530 million — over 39 per cent above

the previous year. Exports of forest, mineral and fishery products were

especially higher.

The 1973 Gross Provincial Product grew by a phenomenal 16 per cent

over 1972 to an estimated $13,848 million. Even if the annual 6.3 per

cent rise in the Vancouver consumer price index is used as a deflator,

there was still a substantial real gain of almost 9 per cent,

impressive by any standards.

The value of capital and repair investment rose to $4,114 million

from $3,726 million a rise of 10.4 per cent, compared to an increase of

just 0.1 per cent in 1972 over 1971, hardly an indication of business

uncertainty, Mr. Speaker — but I would say a vote of confidence in a

new aggressive government in the Province of British Columbia.

Mr. Speaker, where are the "doom and gloom"

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boys today?

British Columbia's population at October 1, 1973, was estimated to

be 2,343,000, an increase of 3.3 per cent from a year earlier and

almost two-and-one-half times the rate of increase of the total Canada

population. The labour force, representing the persons with employment

plus those seeking work, increased by 52,000, or 5.5 per cent, over the

one million mark for the first time in the history of this province.

However, the increase in employment was even greater, with a gain of

58,000 more persons working, or up 6.6 per cent — the highest in both

absolute and relative terms in the past 10 years. More jobs, Mr.

Speaker, more jobs.

The result of this increase in persons employed was a decline in the

rate of unemployment from 7.5 per cent of the labour force in 1972 to

6.5 per cent in 1973. Despite the increase in the number of people

looking for work, there was a decrease in the number of unemployed in

this province.

Income from wages and salaries increased by 23 per cent to $7,350

million. The employment and income advances stimulated consumer

spending, and retail sales climbed to $4,780 million, up 16.7 per cent

from 1972. Housing construction, particularly single-family dwellings,

continued at a high level, reaching 36,000 housing starts, surpassing

the record 1972 total.

There was a 25.4 per cent increase in the selling value of factory

shipments to $5,920 million in 1973. While all sectors of our economy

registered gains, almost two-thirds of this advance was in the forest

industry, Mr. Speaker. Unfortunately, the lack of rail cars to

transport wood products forced a slowdown in shipments from the

Interior. Our government has taken steps to meet this problem through

establishment of our own rail-car manufacturing plant at Squamish.

Mr. Speaker, a truly impressive 55 per cent annual growth in the

value of mineral production was registered last year as the value

reached $993 million, up from $637 million in 1972. It was just one

year ago that some unnamed Members of this House were predicting that

the whole mining industry in this province would collapse, Mr. Speaker.

AN HON. MEMBER: That's throwing sand in the gears.

HON. MR. BARRETT: It's not throwing sand in the gears. I feel

a sense of embarrassment for that unnamed Member, Mr. Speaker. And I'm

pleased that the advances that I am reading today actually took place

with no filibuster.

Substantially higher prices for a number of key minerals and the

first full year of operation of several large properties accounted for

much of the gain. The volume of copper production increased by 50 per

cent, and the value soared to $500 million, a gain of almost $300

million in one year. The agriculture and fishing industries also

experienced favourable advances — do we still have an agricultural

industry left after the Bill 42 debate?

Strong provincial economic growth is expected to continue in 1974 in

almost all sectors. The demand for newsprint, pulp, lumber, coal,

natural gas, copper, and fishery products is particularly buoyant. Of

potential concern is the extent to which the prevailing

petroleum-related energy crisis affects the economies of those advanced

industrial nations that buy the major portion of our exports. There is

little evidence to this date of any reduced demand for our products and

we may be safeguarded by their relative basic importance to our

customers. There is even the potential for us with a surplus of certain

types of energy to further process our resources for our customers and

increase our manufactured product capability.

Mr. Speaker, at this point I'd like to mention that we are concerned

about a constant supply of steel. And this government has not lost

sight of its goal to have a steel mill in the Province of British

Columbia.

Some say that it is not feasible in this province. Some say that it

was not possible to even consider. Mr. Speaker, I hope that they, like

all other predictions of those soothsayers of doom and gloom, will be

proven wrong, and proven wrong much sooner than I thought it would be

possible.

The British Columbia....

AN HON. MEMBER: Was it Kaiser money?

HON. MR. BARRETT: The Kaiser money? We don't want to talk about that. We will anticipate what we will anticipate.

The British Columbia business community is demonstrating optimism

for 1974. The capital investment intentions outlook indicates an even

higher rate of growth than in 1973. However, with many businesses at or

near the limit of productive capacity it is too much to expect a rate

of growth in the Gross Provincial Product at the level of the 1973

experience. An annual growth rate of 10 per cent to 12 per cent appears

attainable, with price changes a significant element of the overall

growth. World economic consequences from the curtailment and pricing of

oil shipments by the major oil-exporting countries are indeterminable

at the present and will

[ Page 133 ]

bear watching in view of the importance of the

industrialized countries to the British Columbia economy. The year 1974

is also a major year in labour negotiations and we encourage tolerance

and understanding by both sides in all negotiations so as not to be

seriously disruptive of the economy.

Provincial corporations now include the British Columbia Hydro and

Power Authority, the British Columbia Railway Company, British Columbia

School Districts Capital Financing Authority, the British Columbia

Regional Hospital Districts Financing Authority, the British Columbia

Harbours Board, the British Columbia Cellulose Company, the Ocean Falls

Corporation, the Insurance Corporation of British Columbia, the British

Columbia Petroleum Corporation and the British Columbia Development

Corporation.

Mr. Speaker, it is the opposition's record that they voted against

the British Columbia Petroleum Corporation. Yet it was that little

corporation, run by a faithful servant, James Rhodes, which enabled

this province to reap a benefit of returns up from 15 per cent under

Social Credit administration to over 40 per cent returns on our natural

gas, all in one year.

Natural gas sold out of this province at 31 cents per thousand cubic

feet under the former administration. We've doubled the price to 61

cents. All we're seeking, Mr. Speaker, is to go to the Louisiana

purchase price, and that is $1.10 per thousand cubic feet. We will

never, never, never allow those natural resources to be given away, Mr.

Speaker, as they were by the former government. No business sense, Mr.

Speaker....

Interjection.

HON. MR. BARRETT: Oh, Mr. Speaker, there's a voice from the

past — a voice laden with guilt, anxiety and wonder. Mr. Speaker, I can

sense the heartfelt, downtrodden twangs of patience, conscience,

whatever it is. That Member said that this government couldn't run a

peanut stand. Well, you were in business when you were selling peanuts,

through you, Mr. Speaker — we're selling natural gas. Why, Mr. Speaker,

not one of our cabinet Ministers now needs a guard to walk with him on

any street. (Laughter.)

The province continues to meet the provincial Crown corporations'

capital requirements from its own internal investment fund, thus

keeping away from costly borrowings in the public market. In 1973, $152

million from the Canada Pension Fund and $181 million in provincial

trusteed funds were made available at market prices.

The province has also made repayable advances at prime bank rates to

the provincial Crown corporations in the current fiscal year. Mr.

Speaker, the corporations that we inherited from the former

administration haven't got the same repayment record on a percentage

basis as we have. The advances to the Insurance Corporation of British

Columbia, the British Columbia Cellulose Corporation and the British

Columbia Petroleum Corporation are now repaid.

The Insurance Corporation of British Columbia began providing

general insurance in British Columbia, on a competitive basis, on

October 1, 1973, under the authority of the Insurance Corporation of

British Columbia Act, passed April 19, 1973. It is expected that $12

million in general insurance premiums will be written in the calendar

year 1974.

I understand, Mr. Speaker, that the school boards of the Province of

British Columbia will be relieved of the cost of insurance premiums.

The Minister of Education (Hon. Mrs. Dailly) has guaranteed that that

burden will be removed from their budgets, helping them as well, Mr.

Speaker. In addition, Mr. Speaker, the corporation's administration of

the Automobile Insurance Act is expected to generate premium income in

excess of $200 million in the first vehicle-licence year of Autoplan.

The British Columbia Petroleum Corporation, established through

legislation enacted at the 1973 fall session, has the authority to buy,

sell, and explore for natural gas and petroleum, and to purchase and

operate pipelines and other related facilities in the province. The

corporation now purchases all natural gas produced in British Columbia,

sells it to marketing agencies in the province, and exports the excess.

My friend the Attorney-General (Hon. Mr. Macdonald) called it 30-second

socialism. That's exactly what it is, Mr. Speaker, and it's also good

business. This function has enabled the province to receive a higher

price for its resources, along with an increased return to the

producers, which will allow increased exploration.

Hon. Members have already noted, I am sure, the appointment of the

board of directors of the British Columbia Development Corporation,

announced last month. The purpose of this corporation is to promote

income, employment and general economic expansion by way of financial

and technical assistance to industries. The province is to provide the

initial share capitalization of $25 million.

The Comptroller-General's interim financial report for the period

April 1, 1973, to December 31, 1973, will be tabled today, and reveals

the staggering growth in provincial revenue and expenditure over the

same nine-month interval of the previous fiscal year. It is important

to note that the huge gains in revenue did not result in any major tax

changes, other than the corporation income tax, but they are directly

linked to the province's heightened prosperity plus a greater return

from the natural resources of this province.

[ Page 134 ]

During the nine months to December 31, 1973, revenue accruals

reached $1,488 million, up $303 million from the same period in 1972 —

a rise of 25.6 per cent. Major revenue gains were in: timber sales —

$108 million. In income taxes — $84 million. In social services tax —

$39 million. In Canada share of joint service programme — $22 million.

In liquor profits — $13 million. In motor-fuel taxes, $10 million.

Mr. Speaker, expenditure accruals were $1,333 million — up $202

million or 17.9 per cent. Principal lifts in this period were: Human

Resources, $56 million; education, $44 million; and hospital and

medical care, $34 million.

Fiscal measures for the expenditure of the resultant fiscal year surplus will be detailed later in this speech.

Mr. Speaker, the government, in preparing its first budget last

year, was under the constriction of time. As you know, we took office

on September 15, 1972, and almost directly had to decide upon

expenditure plans for the current fiscal year. We responded to the most

obvious deficiencies in provincial government services to people and,

even at that, added $342 million in a single year to the level of

expenditures, with particular emphasis on education, our senior

citizens and health care.

The programme of expenditures for the 1974-75 fiscal year, which the

government is submitting today for the consideration of this

Legislature, reflects more fully the results of our critical assessment

of the government's programmes in relation to the needs of our people

and the ability of the economy to support a level of provincial

government services deserving of all sectors of the community. The

British Columbia economy today is strong and productive. There are more

people working at higher wages, producing more products in more plants

operating at or near full capacity, than ever before.

We have no hesitation, therefore, in proposing this record budget.

It is presented without any increase in tax rates for our citizens,

without the need to borrow for either operating or capital

expenditures, and without planning to draw from the cash surplus

balance of $144 million.

Mr. Speaker, we will have a total expenditure in this year of

$2,172,796,526. It is the first budget over the $2 billion mark, Mr.

Speaker, in the history of this province.

MR. J.R. CHABOT (Columbia River): Doubled in five years.

HON. MR. BARRETT: Doubled in five years? I thought it was supposed to be ruined in one by this government. (Laughter.)

Mr. Speaker, it is an increase in one year of $453,887,000. Our

budget, the first to exceed $2 billion, includes by far the largest

single-year increase in expenditure proposals. I think the single-year

increase in budget is higher than when these two Members first came in

the House, Mr. Speaker.

HON. R.M. STRACHAN (Minister of Transport and Communications): Higher than the total budget.

HON. MR. BARRETT: Higher than the total budget — one year's

increase under this government. There is a lift of $453 million over

the current year's budget for all current and capital expenditures — a

total of $2,172 million — wholly financed from next year's ordinary

revenue. In addition, an appropriation of $140 million from cash

surplus is proposed for a variety of special purpose programmes. These

budgets and special appropriations totalling $2,312,797,000 for 1974-75

exceed the budget and special appropriations of our first budget by

$508 million — 28 per cent in one year — under this young, new

government.

The Department of Education once again is to receive the largest

appropriation, which is $553,688,000 — up $67 million over the current

year. Grants to school districts are increased by $29.5 million, with

the government picking up a further $15 million of the school-tax

burden, through the school-tax removal programme.

This morning I was asked at a press conference about the classroom

shortage that we inherited from the former administration. I want to

announce, as I did at that press conference, that we will make

available to any school board emergency additional capital funds if

they wish to come to the Minister of Education and make the case for

those capital funds for classroom make-up.

Further, Mr. Speaker, along with this amount of money, we will make

available special supplementary warrants for any school district that

shows us an exorbitantly high student-teacher ratio. The Minister

herself will initiate that action upon completion of a survey, and she

has the authority from myself and the Treasury Board to come for

special warrants throughout this year if circumstances call for this

emergency help. Case-by-case, situation-by-situation study will be

given by the Minister. She has been given the authority by the Treasury

Board for those special supplementary warrants. Mr. Speaker, we want

these school boards to become involved directly with the Minister. If

they can make the case, the money will be made available. We hope these

measures will lead to reduced class sizes, Mr. Speaker.

Grants to community colleges are up $13 million to a total of $41

million, an approximate 35 per cent increase in one year for the

community colleges. Technical and vocational schools are provided an

additional $6,500,000 over the current year allotment of $19,500,000.

Grants to the universities are increased $10 million to $121 million. And, Mr. Speaker, I said at the press

[ Page 135 ]

conference that the universities, if they wish to

pioneer new programmes, if they wish to pioneer new services, if they

wish to experiment with the quarter system, if they wish to use their

professional schools on evenings, weekends and fully during the summer

months, we will fund them for those new developments. Mr. Speaker, if

the universities wish to go out to the communities and take their

professional skills and professional help in a new form of education at

the community level, we will help them through financing. If the

universities come to us with programmes that allow the industrial

workers or the working women of the Province of British Columbia to

take courses on regularly scheduled hours to meet night-shift,

graveyard-shift or day-shift requirements of full-time employment, we

will finance those programmes as well.

Mr. Speaker, we do not like the fact that in the United States of

America 27 per cent of all high school graduates go on to college

education while the figure is only 12.5 per cent here in the Province

of British Columbia. The Ford Foundation did research indicating that

if universities went onto a quarter system with an 11 per cent increase

in staff, they could have a 25 per cent increase in capacity.

Mr. Speaker, if the universities come to us with these programmes,

the money will be there to implement them on behalf of those people who

desperately need higher education out there in that community. And, Mr.

Speaker, these people want this education.

We have no intention of telling the universities what to do; but if

the universities come to us with these bold, imaginative and thoughtful

programmes, they will not be turned down by the Treasury Board. Our

people deserve, and should be obtaining, and should have every

opportunity of obtaining the best kind of education they want to fill

their needs.

Another major commitment of our government this next year is in the

Department of Health. Programmes for hospital care through the Hospital

Insurance Service will cost $85 million more than the amount budgeted

in the current year, or a total of $359 million. Mr. Speaker, I wish to

emphasize this is a fantastic one-year increase in hospital insurance

costs for the provincial government.

Another important hospital care expenditure this coming year is for

the British Columbia Medical Centre located in Vancouver. The medical

coverage provided under the overall medical services plan will cost $15

million more, or a total of $105 million.

Continuing the government's programme to extend mental health care

at the community level, $9,488,000 is provided. The total increase in

1974-75 expenditures of this department is $112 million to a level of

$548 million.

The Department of Human Resources programmes are to receive a

further $55 million next year. The new Pharmacare programme for free

prescription drugs for all residents age 65 and over, which was

implemented January 1, 1974, will cost an estimated $10,500,000 this

year. Medical services and drugs for persons not qualifying under the

Pharmacare plan will cost $9,301,000.

Our Mincome programme which today guarantees all residents 60 years

of age and over, and blind and handicapped persons regardless of age, a

monthly income of $213 per month has been an unqualified success.

Accordingly, $12 million more is to be voted to discharge our

commitment to this government programme. We have also included funds

for the provincial administration of welfare services in the City of

Vancouver.

Mr. Speaker, the allocation of $75,593,000 to the new Department of

Housing is $62 million more than is provided in the current year's

budget. It indicates, Mr. Speaker, the importance our government

attaches to ensuring adequate housing for every citizen regardless of

his circumstances. Another resource dividend is in the creation of a

new renters' grant programme to provide an annual grant of $30 per year

to resident renters up to age 65, plus an increase in the existing

annual renters' grant to residents aged 65 and over by a like amount to

a total of $80. Further housing funds will be made available through a

surplus appropriation.

Mr. Speaker, I sat in this House year after year hearing the plea

from Social Credit Members, NDP Members, Liberal Members — there were

no Conservatives at that time (at least they didn't reveal themselves)

— all asking for renters' grant programmes to be initiated in the

province to allow the people who rent to have a resource dividend in

this province as well. Today is the first step: $30. I want to tell you

this, Mr. Speaker: there will be more in each succeeding year for those

renters.

Construction and maintenance of the provincial highway network will

be augmented through a $32 million increase in the appropriation to the

Department of Highways.

The Department of Public Works expenditure is increased by $9

million, including $4.5 million more for the construction of public

buildings.

Expenditures in the Department of Lands, Forests and Water Resources

are increased by $28 million to $95 million, or by 42 per cent. In the

Lands Branch the total appropriation has been increased $3,353,000, of

which the pre-servicing of Crown lands for sale or lease expenditure

has been increased fourfold to $2 million. The Environment and Land Use

Committee Secretariat is supplied with $2,227,000, of which $1,100,000

represents a transfer of function from the Department of Agriculture.

The reforestation vote was increased by $7,809,000 to $12,900,000, a 55 per cent increase in

[ Page 136 ]

one year in that reforestation vote. And I might

say that the Minister of Lands and Forests (Hon. Mr. Williams) who now

holds that portfolio pointed out time and time the need for

reforestation and now has been successful at Treasury Board, increasing

that by 55 per cent. I wish you had stopped there.

Considerably more miles of forest development roads will be

constructed this coming year, for which the expenditure allotment is

increased from $2,438,000 to $4,043,000. The overall Forest Service

expenditure is up $17 million.

Of the $7,460,000 increase in the Water Resources Services

expenditure, $6,600,000 is allocated to the

federal-provincial-municipal grant shared-cost programmes on Fraser

River flood control. A total of $12,600,000 will be spent on bank

protection, dikes and drainage works. The present sharing on the

drainage and diking project is: provincial government, 45 per cent;

federal government, 45 per cent; and local area, 10 per cent. We

propose to pick up one-half of the local share, thereby increasing the

province's share to 50 per cent and inviting the federal government to

take similar action to reduce the local share to nil.

Mr. Member (Mr. Rolston), just for a brief moment I wish you were

here and I was there as the Member for Dewdney, hearing about this good

news today after all those years.

AN HON. MEMBER: Fourteen years.

HON. MR. BARRETT: Fourteen years, right.

In the Department of the Attorney-General, a total of $70 million is provided, $25 million more than in the current year.

That's the end of all those old diking speeches. (Laughter.)

Somebody behind me just said it was worth it. I'm beginning to wonder.

The assumption by the province of responsibility for the

administration of justice from the municipalities and expansion of the

court system will increase our costs by $15 million. There will be a

cost-saving to the municipalities although not an equivalent amount.

Equally important will be the freeing of a number of municipal police

officers from court duties for law enforcement. Legal aid services are

being expanded at an additional cost of $1 million.

The Department of Recreation and Conservation is budgeted for $25

million, an increase of $11 million in a single year. Expenditure on

parks alone is increased by $7,289,000; on the maintenance of our fish

and wildlife, $2,958,000; and on the Youth Training Programme, which

provides summer employment for a number of our young people, $350,000.

The Department of the Provincial Secretary, which includes the

Public Service and Superannuation Commissions, receives $9,015,000 more

than in the current year.

A major programme for the Department of Communications and Transport

in this next year is the expansion of the British Columbia Ferries'

fleet to meet the traffic demand. Because of an excessively large

expenditure involved, I deem it inappropriate to have this as a charge

to next year's revenue. We will have to build two new ferries and a

truck ferry. Therefore, I propose to establish a ship construction fund

from the anticipated surplus for the fiscal year 1973-74. I will

comment on this later in my speech. Ordinary expenditures of this

department are increased by $8,606,000.

Increase in apprenticeship training programmes....

Interjections.

HON. MR. BARRETT: Well, Mr. Member, before I read the speech

today I allowed myself a little reflection on what I would do if I were

in the opposition and I had to criticize this budget the next day. I

decided the best I could provide would be plaintive quips and hope that

tomorrow would pass very, very quickly. (Laughter.) Maybe, Mr. Speaker,

they refused to speak in the wrong debate. (Laughter)

Mr. Speaker, increases in apprenticeship training programmes and

provision for the new Labour Relations Board account for the major

portion of the $5,735,000 addition to the expenditure of the Department

of Labour.

The Department of Agriculture expenditure programmes require $15

million next year, including $2,500,000 for low-interest loans under

the Agricultural Land Development Act.

To assist municipalities to meet their budget requirements and to

reduce the incidence of their increased costs upon municipal

property-owners, the government is recommending an increase in the

annual per capita grant from $32 to $34 per person effective in 1974.

Along with the saving on courts, Mr. Speaker, along with the savings of

the social services tax, Mr. Speaker, the municipalities will be saving

a great deal of money. Together with other municipal entitlements for

additions to population this will take $7,700,000 of the annual

increase in the Department of Municipal Affairs. Total expenditures of

the department will be $81 million.

Mr. Speaker, I would also like to comment upon the $27 million

Burrard Inlet (Third Crossing) Fund established by the previous

administration. As the name implies, the purpose of this fund was to

provide another access facility between the City of Vancouver and the

North Shore. However, it is obvious from the vehicle traffic situation

in downtown Vancouver that another connection contributing to an

increased vehicle flow is not the answer to Vancouver's traffic

[ Page 137 ]

problem. In our view, Mr. Speaker, the appropriate,

long-term solution lies in the development of an efficient rapid

transit system. Therefore, Mr. Speaker, we will be redescribing that

$27 million fund for a rapid transit system to serve the lower mainland

area.

Hon. Members are aware of the government's undertaking with the

Pacific North Coast Native Co-operative to develop an integrated

fishing operation at Port Simpson near Prince Rupert through a $3

million low-interest loan for the acquisition of a core fishing fleet

and a $3 million grant for the construction of a cannery. Grant

payments totalling $1,500,000 have been approved in the current fiscal

year and $1,300,000 is provided in the estimates of the Department of

Industrial Development, Trade and Commerce.

The new Department of Consumer Services is established in the estimates with a budget of $1,169,000 allocation.

A $10 million provision for a pay increase for the province's public

servants is included in the appropriation for the Department of Finance.

Our proposals for the legislative appropriation of $140 million of

the current year's anticipated cash surplus are as follows. Because of

the cost of construction of the new ferries and its excessiveness, in

that it would be too high to put to a regular budget item, we have

recommended that $35 million be set aside out of this year's surplus to

build those two passenger ferries and one truck ferry. Those ferries,

we hope, will be built in British Columbia; we expect they will be

built in British Columbia.

MR. H.A. CURTIS (Saanich and the Islands): You said they would be built in B.C.

HON. MR. BARRETT: We will promise that they are built; but we

are asking that the owners of the shipyards keep a very sharp pencil, a

very sharp pencil.

AN HON. MEMBER: Double-hulled?

HON. MR. BARRETT: Double-hulled? Well, Mr. Member they will be double-hulled and they will be sufficient for keel-hauling as well. (Laughter.)

Interjection.

HON. MR. BARRETT: Well, Mr. Member, the money is there; the

difficulty will be in receiving some of the steel. We hope that that

problem will be resolved. The Minister is dealing with some steel

suppliers at this particular time. The appropriation will provide for

next year's expenditure on the construction of two 367-car vessels, one

truck-trailer vessel and the necessary terminal modifications to

accommodate these fleet additions.

Our government's commitment to fulfilling a promise to remove school

taxes from the property-owned, owner-occupied residences and family

farms is being initiated through a $15 million surplus appropriation.

Briefly, the school-tax removal legislation will be introduced to

provide a minimum payment of $30 and up to $40 to all owners in 1974.

Augmenting the $75 million to be voted for housing in the ordinary

budget is a $40 million surplus appropriation for first and second

mortgages pursuant to the Provincial Home Acquisition Act. I shall

fully review elsewhere in this speech this government's policy on

housing which involves an overall expenditure of in excess of $115

million next year in the housing field. This is further evidence of our

government keeping its promises with bold action supported by the

necessary money.

The $10 million Community Recreational Facilities Fund, established

in our first-year budget a year ago, received an enthusiastic response

from the communities throughout the province, a response that exceeded

the limits of the fund to the extent that a further $5,500,000 has been

appropriated in the current fiscal year. Fifteen million in community

recreation. Mr. Speaker, this programme was so successful that some

sports broadcasters didn't even know it existed. (Laughter.) It

happened right past them, but now I think they are aware of what the

fund is. Because of its success, Mr. Speaker, and in recognition of the

multifaceted benefits from the facilities provided under this

programme, a further $10 million is to be made available for the

ensuing year.

All parties, Mr. Speaker, endorsed this programme. I must tell you

how much the communities enjoy the benefits of this programme. Just

late last year I was in Fort St. John where over 1,000 people came out

for the opening of the kids arena, as they called it. It was a dream of

that community for many, many years, and I was pleased to be there at

that opening along with the Member (Mr. Smith) who represents that

particular community in this province. That Member, Mr. Speaker, still

represents that community, although some negative people said a year

ago that that community would be a ghost town because of our policy.

I'm glad that that Member is still here and the town is still here

and it's flourishing as never before. I forget who it was who said it

was going to be ghost town; but let his memory be a ghost, Mr. Speaker

(Laughter) — the spirit of Christmas.

There are no ghosts skating on the rink.

The government's sharing arrangement is one-third of the cost of the first $1 million in any one project.

At the 1973 fall session legislation was passed establishing the

British Columbia Medical Centre, and we are now following up with a

commitment of $10 million from this year's surplus to start that

[ Page 138 ]

development.

The farm income assurance and agricultural products secondary

industry development programmes, introduced by this government and

enacted by this House at our last session, were important components in

the wide range of legislation designed to safeguard and strengthen our

agricultural capacity. To carry out the terms of this legislation the

Farm Income Assurance Fund and Farm Products Industry Development Fund

are to be established in the amount of $10 million each.

The perpetual funds, British Columbia Cultural Fund and Physical

Fitness and Amateur Sports Fund, each capitalized with $15 million at

present, afford an assured source of income each year for the

government's support of these activities. We wish to increase this

assistance and, therefore, propose to add $5 million to each one of the

funds with the investments to be made in long-term securities of our

schools and hospitals capital-financing authorities.

In

summary, $140 million of the current year's anticipated surplus is to be allocated as follows:

$35 million for the construction of ferries;

$15 million for the removal of school taxes;

$40 million for first and second mortgages for homes;

$10 million for community recreational facilities;

$10 million for the British Columbia Medical Centre;

$10 million for a guaranteed income for farmers;

$10 million for the development of agricultural products secondary industry;

$5 million for the British Columbia Cultural Fund;

$5 million for the Physical Fitness and Amateur Sports Fund.

Mr. Speaker, I have felt it necessary to take so much time to review

our budgetary proposals, although it is only possible at this stage to

touch on the highlights. But these highlights are a measure of our

assessment of the deficiencies in government services left behind by

the previous administration.

The tremendous one-year lift in departmental current expenditures

must be considered as a catch-up budget in areas which this government

considers inadequately serviced. Including our first budget last year,

almost $950 million will have been added to the provincial economy in

two years. While we have the fiscal resources to meet these

commitments, I must make clear to the Hon. Members that this volume of

expenditure increases cannot be anticipated into the future.

One thing I want to mention here

is the government's purchase of 1,157, 125 or 13.5 per cent, of the

shares of Westcoast Transmission Company. In my recent announcement of

this purchase I said: "This is a reversal of economic trends. Unlike

the old practice of United States companies using Canadian funds —

profits from Canadian resources — to buy Canadian companies, we are

using United States funds — profits from the sale of our resources — to

buy back a resource company."

At a previous session, Mr. Speaker, the Minister of Finance was

given the power under the Revenue Act to purchase shares in any

company. This is the first time this power has been exercised, and then

only under the very special circumstances of this particular case. But,

Mr. Speaker, as long as we are government, we are committed to the

philosophy that the people of this province want to be masters in their

own house and have the capacity and the desire and the energy to carry

out that particular philosophy.

Mr. Speaker, for over 100 years this province allowed itself to be

buffeted by external economic forces, based on the myth that private

capital from beyond would always be the benefactor of this province.

The treasure house of this province was assaulted time and time again

from the turn of the century, through McBride's administration, on up

to the '20s and the '30s — yes, the '50s highlighted by such things as

the Wenner-Gren proposal and the amount of money we had to pay back on

that.

This is the first government in the history of this beautiful

province that is committed to the concept that the resources that

belong to the people of this province must benefit the people of this

province to the maximum degree; and our purchase of Westcoast

Transmission is purely a repatriation of our own destiny, Mr. Speaker.

We don't expect the other parties, Mr. Speaker, to applaud this

point because this is the crux of the difference between us and any

other party that ever sat in government in this House. They were always

the same, regardless of name, always willing to bend, to mould and to

shape their policies to any entrepreneur who arrived on a fast-buck

promotion. We've said: "The end of this forever." I tell you, Mr.

Speaker, that no matter what happens in the future history of this

province, this trend will never be reversed, because any government

that attempts to do it will be defeated forthwith by the people of this

province.

As I stated previously, Mr. Speaker, we are undertaking this massive

expenditure programme of over half-a-billion more dollars in one year

without any increase in tax rates for our citizens — rates which,

incidentally, are among the lowest in Canada without any borrowing for

either operating or capital accounts, and without touching the $144

million revenue surplus in the bank as of March 31, 1973.

Estimates of our revenues based on the anticipated performance of

the British Columbia economy over the next 12 months indicate an

adequacy to cover total government proposed expenditures, both current

and capital. In fact, Mr. Speaker, not only do we expect to achieve

this but we also plan to reduce the province's revenue yield from the

social services

[ Page 139 ]

tax and succession duties. We will be exempting all

books and second-hand clothing from the 5 per cent sales tax, Mr.

Speaker. Under proposed changes to the Succession Duty Act,

great-grandchildren will benefit to a greater extent than heretofore

through

inclusion in the most-preferred category of beneficiary. Also, the

exempt limit for the administration of estates is to be increased from

$2,000 gross value to $5,000.

There is a printed error in the budget speech, and I would like to

call this to the attention of the Members. In terms of the Succession

Duty Act....

Interjection.

HON. MR. BARRETT: Well, it's on 17 in the budget speech: "The

exempt limit for the administration of estates is to be increased from

$2,000 gross value to $5,000." The leaders of all opposition parties

were provided with a copy of the budget yesterday at 1:30 — and the

press, by embargo.

AN HON. MEMBER: Who else?

HON. MR. BARRETT: Who else? The press, by embargo, that's

all. It's a change from former policy. We used to receive the budget,

when I was Leader of the Opposition, the day it was presented — the

hour that it was presented.

Interjections.

HON. MR. BARRETT: Friday. Well, I tell you this: the hon. gentlemen who are the leaders of the opposition parties did not leak the budget.

Interjections.

HON. MR. BARRETT: Well, I don't think they did. I trust the

press. I have confidence in the press. I don't say that necessarily for

their owners. (Laughter.)

The estimate of revenues for the 1974-75 fiscal year of $2,177

million is $455 million or 26.5 per cent more than the budget estimate

for the current year. This is achieved with tax rates which, as I say,

are among the lowest in Canada.

In view of the forecast for sustained high provincial energy

requirements, it is important that the British Columbia Hydro and Power

Authority have long-term plans for development of our electrical energy

resources. I propose to seek the approval of this House of a $500

million increase in the authority's borrowing authorization to finance

construction projects and transmission lines.

Impressive is the only way to describe the new, comprehensive

housing programme planned for in British Columbia. The rapid rate of

change and the large scope of operations in this area outlined in this

budget indicate the government's serious purpose of providing good

housing for all British Columbians.

In the fall session of 1973 the Legislature approved

an Act to

establish a Housing department. Under this Act, the Minister of Housing

has the authority to create projects anywhere in the province. Several

previous Acts dealing with housing and related areas were transferred

to the new Ministry and a housing fund was set up on December 1, 1973,

to provide financing of planned facilities.

Our government's determination to formulate long-run housing

programmes which best meet the needs of citizens is revealed in the

huge increase in funds to help low- and moderate-income people rent or

purchase decent homes. The addition of $40 million to the Provincial

Home Acquisition Fund for first-mortgage and house-conversion loans,

together with other home-acquisition grants and second-mortgage

programmes which will be financed from the fund, will help thousands of

people acquire homes of their own. This will also create thousands of

jobs in British Columbia.

Expanded housing programmes for our senior citizens will be carried

out, for $10 million is provided this coming year to help non-profit

community groups build over 1,600 units next year under the Elderly

Citizens' Housing Aid Act. This is about double the current year's

allotment for senior citizens.

Additionally, the new Department of Housing will have $50 million

for programmes of land assembly and servicing, neighbourhood

improvement, co-operative housing and family rental housing. Under this

programme the province has the flexibility to build houses on

government land and either sell them using the first-mortgage programme

or rent the properties.

Mr. Speaker, these three items alone will provide $100 million in one year for provincial housing encouragement and development.

In 1973, as a result of new provincial government housing activity,

British Columbia exceeded its Central Mortgage and Housing Corporation

allocation for the first time. And it should have done that many years

ago. But 1973 was the first year. In the next fiscal year the

provincial government will, in one way or another, be involved in

financing over two-thirds of all housing starts in British Columbia.

I was incorrect this morning, Mr. Speaker, when I said at the press

conference that we would be involved in one-third; we will be involved

in two-thirds.

The British Columbia pavilion at the international Expo '74 in

Spokane, Washington, to be held from May 14 to November 3, will feature

the importance of mankind living in harmony with the natural

environment — one of the foremost problems facing

[ Page 140 ]

the world today.

At the provincial level the Government of British Columbia has

rejected the dollar-value-alone approach to progress. Only those types

of growth not detrimental to the environment or the well-being of our

populace will be undertaken. We will not duplicate the mistake of our

predecessors who failed to initiate proper studies to determine the

ecological impact of major projects, thus ignoring possible negative

aspects of development in their eagerness to promote growth.

Enjoyment of increasing leisure hours must not be restricted or

reduced as a result of a deteriorating environment. Through the action

of this government to enlarge the pollution control staff, water, air,

noise and effluent pollution problems are being examined thoroughly and

control standards are being raised and enforced.

Evidence of the damaging effect that pollution has upon the

environment and the repercussions it has for humans and the economy

should make it obvious for all of us. Fortunately, little actual

environmental damage has occurred, but we cannot be complacent. The

provincial government realizes it is responsible for establishing high

pollution standards throughout the province, but the co-operation of

other levels of government, business and private citizens, is essential

to achieve a meaningful ecological goal. Government legislation,

financial incentives and recycling plans, no matter how comprehensive,

are only truly effective when there is solid public support.

Mr. Speaker, I would now like to review briefly the perspective of

the 1974-75 fiscal year budget as it relates to the principal functions

of provincial expenditure.

As I stated in our first budget a year ago, this government's first

priority is to provide the best social services possible for the people

of the province within our fiscal capabilities. With the substantial

amount of social legislation enacted in the 17 months since we formed

the government, plus that planned for this session, we will have made

considerable progress toward that goal. Social improvement measures of

the provincial government will command a record $1,507 million of this

budget, a significant $801 million increase over the $705 million spent

in 1970.

To ensure a properly planned education system that is responsive to

the needs of our society, several groups of professional and lay people

are closely examining the entire educational structure. However, there

are obvious areas which demand immediate attention and the government

is committing $567 million next year to upgrade and expand existing

programmes at all levels of the education system. This is 76 per cent

more than was spent by the provincial government on education five

years ago.

The recently completed comprehensive study of the British Columbia

health care programmes has been received by the government and released

immediately to the public. It is my government's desire for a full and

open consideration and discussion of the study and its recommendations

throughout the provincial community. Responses from the public will be

helpful to the government in developing for British Columbia the most

progressive and enlightened health care in Canada and perhaps in the

world. In the interim we have proposed a total expenditure of $939

million for health and social services next year, almost

two-and-one-half times the amount spent in 1970.

The expanded and extended hospital-care programmes of this

government require $367 million in the 1974-75 fiscal year. Through

construction of hospital facilities appropriate for the several levels

of care, the government expects to achieve a more efficient use of the

hospital-care dollars. The progressive human resources programmes of

this government demand $303 million next year, $190 million more than

five years ago. The expanded programmes for housing will take $76

million. The British Columbia Medical Plan's need for $105 million

under the budget reflects, in part, expansion in benefits not shareable

Mr. Speaker, let me mention here that we will still resist the new

federal financing formula for shared programmes, despite the trust

fund, if in any way that new federal formula threatens the level of

health care to other less fortunate areas in this great country.

If we are truly to stay a nation, if we are truly to reach our own

destiny as Canada, then we must not go for short-term cash benefits —

even for our province — at the expense of long-run damage to the basic

social services and health-care programmes in this country.

Mental health care throughout the province will cost an estimated $59 million and public health services, $27 million.

The varied provincial government activities in the field of

transportation and resource management require an expenditure of $423

million.

Mr. Speaker, our budget takes major steps to better the lives of our

citizens through a variety of income-support programmes, job-creating

policies, housing developments, as well as direct cash payments and tax

benefit plans to assist both individuals and families.

Our budget is fiscally responsible. Despite record-breaking

expenditures, our programmes and proposals are fully within the

ordinary financial resources of this province. We have directed many

millions of dollars in surplus funds into a wide range of areas because

we believe that surpluses are a financial resource that should be

returned to the

[ Page 141 ]

taxpayer as a public dividend. As I have said before, we do not believe in building surpluses just for the sake of doing so.

Our role is that of both steward and servant to the public. This is

a great responsibility, and we intend to husband the great resources of

this province for the greatest public benefit.

We were elected on a platform that included a call for a fairer

return on our resources, and we meant it. Our steps to double public

revenues from our petroleum and natural gas are now a matter of record,

and we are continuing to work for an end to the give-away policies we

inherited from the past. We will continue to fight to protect the

public's right to a strong and growing share of the wealth that belongs

to all our citizens.

In a real sense, Mr. Speaker, we are just beginning, and I say to

the citizens of this province in a spirit of brotherhood and

sisterhood, let us continue to work together to these ends.

Mr. Speaker, it's a great budget. But I'm not so proud of it for

myself as an individual; I'm proud of it because it embodies, in terms

of the many people who work with our party — and many people outside of

our party, and the ordinary people of this province — a step toward the

dream of really being masters in our own house and sharing far more

equally in the beautiful revenues and the resources and the lifestyle

of this wonderful province.

Having said this, Mr. Speaker, I now move with pleasure the

traditional motion of our parliamentary system of government: "that Mr.

Speaker do now leave the chair for the House to go into Committee of

Supply."

Mr. Bennett moves adjournment of the debate.

Motion approved.

SPECIAL FUNDS

APPROPRIATION ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Special Funds Appropriation Act, 1974.

Bill 7 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

MUNICIPALITIES AID

AMENDMENT ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Municipalities Aid Amendment Act, 1974.

Bill 9 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

BURRARD INLET (THIRD CROSSING) FUND

AMENDMENT ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Burrard Inlet (Third Crossing) Fund Amendment A ct, 1974.

Bill 10 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

INCOME TAX AMENDMENT ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor: a bill intituled Income Tax Amendment Act, 1974.

Bill 11 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

SUCCESSION DUTY AMENDMENT ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Succession Duty Amendment Act, 1974.

Bill 12 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

PROBATE FEES AMENDMENT ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Probate Fees Amendment Act, 1974.

Bill 13 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

SOCIAL SERVICES TAX

AMENDMENT ACT, 1974

Hon. Mr. Barrett presents a message from His Honour the Lieutenant-Governor:

a bill intituled Social Services Tax Amendment Act, 1974.

Bill 14 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

ELDERLY CITIZEN RENTERS GRANT

AMENDMENT ACT, 1974

[ Page 142 ]

Hon. Mr. Nicolson presents a message from His Honour the Lieutenant-Governor:

a bill intituled Elderly Citizen Renters Grant Amendment Act, 1974.

Bill 8 introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

BRITISH COLUMBIA AUDITOR-GENERAL

On a motion by Mr. Gardom, Bill 19, British Columbia Auditor-General, introduced, read a first time and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

MR. GARDOM: After all that money, Mr. Speaker, we want somebody who's going to watch the till. That's what we're after. (Laughter.)

HON. MR. BARRETT: Mr. Speaker, would the House accept a short recess?

The House took recess at 4.50 p.m.

The House resumed at 4.55 p.m.

Presenting reports.

Hon. Mr. Hartley tables the report for the year 1973 of the Department of Public Works.

HON. J. RADFORD (Minister of Recreation and Conservation):

Mr. Speaker, I would ask leave of the House to present corrections to a

statement I made in the last sitting of the House on February 5 (page

117).

Leave granted.

HON. MR. RADFORD: Mr. Speaker, I made a statement that in the

last three sessions the government had passed 191 bills, and only 34

were voted against. I went on to say that the Socreds voted against

six, when it should have been 29; the Liberals voted against eight,

when it should have been 22; and the Tories voted against seven, when

the figure should have been eight. I wouldn't want to deter the

opposition any further by those mistakes, Mr. Speaker.

Hon. Mr. Cocke files the Hospital Act regulations pursuant to statute.

Hon. Mr. Barrett moves adjournment of the House.

Motion approved.

The House adjourned at 5 p.m.

ERRATUM

Page 102, column 2, line 23 et seq. should read:

The people are concerned that there will be a political education

system in British Columbia. I say to you, Madam Minister, as kindly as

I can...

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