British Columbia Hansard — 20 February 2018, p.m., Issue 82 (41st Parliament, 3rd Session)

20180220pm-Hansard-n82

British Columbia — Debates (Hansard)

Third Session, 41st Parliament OFFICIAL REPORT OF DEBATES (HANSARD) Tuesday, February 20, 2018 Afternoon Sitting Issue No. 82 THE HONOURABLE DARRYL PLECAS, SPEAKER ISSN 1499-2175

PROVINCE OF BRITISH COLUMBIA (Entered Confederation July 20, 1871) LIEUTENANT-GOVERNOR Her Honour the Honourable Judith Guichon, OBC Third Session, 41st Parliament SPEAKER OF THE LEGISLATIVE ASSEMBLY Honourable Darryl Plecas EXECUTIVE COUNCIL Premier and President of the Executive Council............................................................................................................... Hon. John Horgan Deputy Premier and Minister of Finance............................................................................................................................Hon.

Carole James Minister of Advanced Education, Skills and Training..................................................................................................... Hon. Melanie Mark Minister of Agriculture.........................................................................................................................................................Hon. Lana Popham Attorney General.................................................................................................................................................................Hon.

David Eby, QC Minister of Children and Family Development............................................................................................................ Hon. Katrine Conroy Minister of State for Child Care......................................................................................................................................Hon. Katrina Chen Minister of Citizens’ Services.................................................................................................................................................... Hon.

Jinny Sims Minister of Education............................................................................................................................................................ Hon. Rob Fleming Minister of Energy, Mines and Petroleum Resources...............................................................................................Hon. Michelle Mungall Minister of Environment and Climate Change Strategy.............................................................................................Hon.

George Heyman Minister of Forests, Lands, Natural Resource Operations and Rural Development..............................................Hon. Doug Donaldson Minister of Health.....................................................................................................................................................................Hon. Adrian Dix Minister of Indigenous Relations and Reconciliation ......................................................................................................... Hon.

Scott Fraser Minister of Jobs, Trade and Technology............................................................................................................................ Hon. Bruce Ralston Minister of State for Trade...............................................................................................................................................Hon. George Chow Minister of Labour...................................................................................................................................................................Hon.

Harry Bains Minister of Mental Health and Addictions............................................................................................................................ Hon. Judy Darcy Minister of Municipal Affairs and Housing.................................................................................................................. Hon. Selina Robinson Minister of Public Safety and Solicitor General........................................................................................................... Hon.

Mike Farnworth Minister of Social Development and Poverty Reduction..............................................................................................Hon. Shane Simpson Minister of Tourism, Arts and Culture.....................................................................................................................................Hon. Lisa Beare Minister of Transportation and Infrastructure................................................................................................................ Hon.

Claire Trevena LEGISLATIVE ASSEMBLY Leader of the Official Opposition................................................................................................................................Andrew Wilkinson, QC Leader of the Third Party ....................................................................................................................................................Dr. Andrew Weaver Deputy Speaker................................................................................................................................................................................

Raj Chouhan Assistant Deputy Speaker................................................................................................................................................................... Linda Reid Deputy Chair, Commi ttee of the Whole................................................................................................................

Spencer Chandra Herbert Clerk of the Legislative Assembly ....................................................................................................................................................Craig James Deputy Clerk and Clerk of Commi ttees.................................................................................................................................

Kate Ryan-Lloyd Clerk Assistant — Commi ttees and Interparliamentary Relations ..........................................................................................Susan Sourial Sessional Law Clerk...............................................................................................................................................Loredana Catalli-Sonier, QC Sergeant-at-Arms ................................................................................................................................................................................. Gary Lenz

ALPHABETICAL LIST OF MEMBERS Ashton, Dan (BC Liberal)........................................................................ Penticton Bains, Hon. Harry (NDP)...............................................................Surrey-Newton Barnett, Donna (BC Liberal)................................................... Cariboo-Chilcotin Beare, Hon. Lisa (NDP).............................................Maple Ridge–Pitt Meadows Begg, Garry (NDP) ..................................................................... Surrey-Guildford Bernier, Mike (BC Liberal).......................................................

Peace River South Bond, Shirley (BC Liberal)......................................... Prince George–Valemount Brar, Jagrup (NDP)..................................................................... Surrey-Fleetwood Cadieux, Stephanie (BC Liberal)....................................................... Surrey South Chandra Herbert, Spencer (NDP) ..................................... Vancouver–West End Chen, Hon. Katrina (NDP).....................................................Burnaby-Lougheed Chouhan, Raj (NDP) ............................................................... Burnaby-Edmonds Chow, Hon.

George (NDP)............................................... Vancouver-Fraserview Clovechok, Doug (BC Liberal)................................ Columbia River–Revelstoke Coleman, Rich (BC Liberal)...............................................................Langley East Conroy, Hon. Katrine (NDP)......................................................... Kootenay West Darcy, Hon.

Judy (NDP) ............................................................New Westminster Davies, Dan (BC Liberal)..........................................................Peace River North de Jong, Michael, QC (BC Liberal)............................................ Abbotsford West Dean, Mitzi (NDP)...............................................................Esquimalt-Metchosin D’Eith, Bob (NDP) ...............................................................Maple Ridge–Mission Dix, Hon. Adrian (NDP)......................................................Vancouver-Kingsway Donaldson, Hon.

Doug (NDP).....................................................................Stikine Eby, Hon. David, QC (NDP).............................................Vancouver–Point Grey Elmore, Mable (NDP)....................................................... Vancouver-Kensington Farnworth, Hon. Mike (NDP) ...................................................... Port Coquitlam Fleming, Hon. Rob (NDP) .....................................................Victoria–Swan Lake Foster, Eric (BC Liberal)........................................................... Vernon-Monashee Fraser, Hon.

Scott (NDP) ................................................ Mid Island–Pacific Rim Furstenau, Sonia (BC Green Party) ........................................... Cowichan Valley Gibson, Simon (BC Liberal)................................................. Abbotsford-Mission Glumac, Rick (NDP)........................................................Port Moody–Coquitlam Heyman, Hon. George (NDP).............................................. Vancouver-Fairview Horgan, Hon. John (NDP) ...............................................

Langford–Juan de Fuca Hunt, Marvin (BC Liberal).......................................................Surrey-Cloverdale Isaacs, Joan (BC Liberal).........................................Coquitlam–Burke Mountain James, Hon. Carole (NDP)...................................................Victoria–Beacon Hill Johal, Jas (BC Liberal)...............................................

Richmond-Queensborough Kahlon, Ravi (NDP)..............................................................................Delta North Kang, Anne (NDP)..................................................................Burnaby–Deer Lake Krog, Leonard Eugene (NDP) ..................................................................Nanaimo Kyllo, Greg (BC Liberal)............................................................................ Shuswap Larson, Linda (BC Liberal).............................................Boundary-Similkameen Lee, Michael (BC Liberal)......................................................

Vancouver-Langara Leonard, Ronna-Rae (NDP) ....................................................Courtenay-Comox Letnick, Norm (B C Liberal)............................................Kelowna–Lake Country Ma, Bowinn (NDP)................................................... North Vancouver–Lonsdale Mark, Hon. Melanie (NDP) ..................................... Vancouver–Mount Pleasant Martin, John (BC Liberal)...................................................................... Chilliwack Milobar, Peter (BC Liberal)....................................

Kam loops–North Thompson Morris, Mike (BC Liberal)..........................................Prince George–Mackenzie Mungall, Hon. Michelle (NDP).................................................... Nelson-Creston Oakes, Coralee (BC Liberal)...........................................................Cariboo North Olsen, Adam (B C Green Party)........................... Saanich North and the Islands Paton, Ian (BC Liberal)......................................................................... Delta South Plecas, Hon.

Darryl (Ind.) ..........................................................Abbotsford South Polak, Mary (BC Liberal)............................................................................ Langley Popham, Hon. Lana (NDP)..............................................................Saanich South Ralston, Hon. Bruce (NDP) .......................................................... Surrey-Whalley Redies, Tracy (BC Liberal)..................................................... Surrey–White Rock Reid, Linda (BC Liberal)................................................

Richmond South Centre Rice, Jennifer (NDP) ............................................................................ North Coast Robinson, Hon. Selina (NDP) ....................................... Coquitlam-Maillardville Ross, Ellis (BC Liberal)..................................................................................Skeena Routledge, Janet (NDP) .................................................................. Burnaby North Routley, Doug (NDP) ................................................Nanaimo–North Cowichan Rustad, John (BC Liberal)..............................................................

Nechako Lakes Shypitka, Tom (B C Liberal).............................................................Kootenay East Simons, Nicholas (NDP) ........................................Powell River–Sunshine Coast Simpson, Hon. Shane (NDP)................................................ Vancouver-Hastings Sims, Hon.

Jinny (NDP) .............................................................Surrey-Panorama Singh, Rachna (NDP) ........................................................Surrey–Green Timbers Stilwell, Michelle (BC Liberal)..............................................Parksville-Qualicum Stone, Todd (BC Liberal)........................................

Kam loops–South Thompson Sturdy, Jordan (BC Liberal).......................................West Vancouver–Sea to Sky Sullivan, Sam (B C Liberal)...............................................Vancouver–False Creek Sultan, Ralph (BC Liberal)......................................... West Vancouver–Capilano Tegart, Jackie (BC Liberal)................................................................ Fraser-Nicola Thomson, Steve (BC Liberal).....................................................Kelowna-Mission Thornthwaite, Jane (BC Liberal).............................

North Vancouver–Seymour Throness, Laurie (BC Liberal)..................................................... Chilliwack-Kent Trevena, Hon. Claire (NDP) .............................................................. North Island Wat, Teresa (BC Liberal)................................................Richmond North Centre Weaver, Dr. Andrew (BC Green Party) ......................... Oak Bay–Gordon Head Wilkinson, Andrew, QC (BC Liberal).............................. Vancouver-Quilchena Yap, John (BC Liberal)..........................................................

Richmond-Steveston Vacant..................................................................................................Kelowna West LIST OF MEMBERS BY RIDING Abbotsford-Mission ..........................................................................Simon Gibson Abbotsford South ..................................................................... Hon. Darryl Plecas Abbotsford West.................................................................... Michael de Jong, QC Boundary-Similkameen.....................................................................

Linda Larson Burnaby–Deer Lake ...............................................................................Anne Kang Burnaby-Edmonds ..............................................................................Raj Chouhan Burnaby-Lougheed................................................................... Hon. Katrina Chen Burnaby North................................................................................

Janet Routledge Cariboo-Chilcotin............................................................................Donna Barnett Cariboo North .................................................................................. Coralee Oakes Chilliwack.............................................................................................. John Martin Chilliwack-Kent..............................................................................Laurie Throness Columbia River–Revelstoke........................................................

Doug Clovechok Coquitlam–Burke Mountain................................................................. Joan Isaacs Coquitlam-Maillardville..................................................... Hon. Selina Robinson Courtenay-Comox ................................................................. Ronna-Rae Leonard Cowichan Valley............................................................................

Sonia Furstenau Delta North ...........................................................................................Ravi Kahlon Delta South.................................................................................................Ian Paton Esquimalt-Metchosin.............................................................................Mitzi Dean Fraser-Nicola........................................................................................

Jackie Tegart Kam loops–North Thompson............................................................Peter Milobar Kam loops–South Thompson ................................................................Todd Stone Kelowna–Lake Country....................................................................Norm L etnick Kelowna-Mission.............................................................................

Steve Thomson Kelowna West..................................................................................................Vacant Kootenay East.....................................................................................Tom Shypitka Kootenay West...................................................................... Hon. Katrine Conroy Langford–Juan de Fuca............................................................. Hon. John Horgan Langley....................................................................................................

Mary Polak Langley East.......................................................................................Rich Coleman Maple Ridge–Mission ............................................................................ Bob D’Eith Maple Ridge–Pitt Meadows ..........................................................Hon. Lisa Beare Mid Island–Pacific Rim .............................................................. Hon. Scott Fraser Nanaimo...............................................................................

Leonard Eugene Krog Nanaimo–North Cowichan.............................................................. Doug Routley Nechako Lakes...................................................................................... John Rustad Nelson-Creston.................................................................. Hon. Michelle Mungall New Westminster......................................................................... Hon. Judy Darcy North Coast..........................................................................................

Jennifer Rice North Island............................................................................ Hon. Claire Trevena North Vancouver–Lonsdale................................................................. Bowinn Ma North Vancouver–Seymour......................................................Jane Thornthwaite Oak Bay–Gordon Head..........................................................Dr. Andrew Weaver Parksville-Qualicum .....................................................................Michelle Stilwell Peace River North..................................................................................

Dan Davies Peace River South............................................................................... Mike Bernier Penticton................................................................................................ Dan Ashton Port Coquitlam .................................................................... Hon. Mike Farnworth Port Moody–Coquitlam .....................................................................Rick Glumac Powell River–Sunshine Coast.....................................................

Nicholas Simons Prince George–Mackenzie..................................................................Mike Morris Prince George–Valemount.................................................................Shirley Bond Richmond North Centre ........................................................................Teresa Wat Richmond-Queensborough.......................................................................Jas Johal Richmond South Centre........................................................................

Linda Reid Richmond-Steveston.................................................................................. John Yap Saanich North and the Islands............................................................Adam Olsen Saanich South............................................................................Hon. Lana Popham Shuswap .................................................................................................... Greg Kyllo Skeena.........................................................................................................

Ellis Ross Stikine ..................................................................................Hon. Doug Donaldson Surrey-Cloverdale...............................................................................

Marvin Hunt Surrey-Fleetwood...................................................................................Jagrup Brar Surrey–Green Timbers ......................................................................Rachna Singh Surrey-Guildford....................................................................................Garry Begg Surrey-Newton.............................................................................Hon. Harry Bains Surrey-Panorama........................................................................... Hon.

Jinny Sims Surrey South...............................................................................Stephanie Cadieux Surrey-Whalley........................................................................ Hon. Bruce Ralston Surrey–White Rock............................................................................. Tracy Redies Vancouver-Fairview ............................................................ Hon. George Heyman Vancouver–False Creek.......................................................................

Sam Sullivan Vancouver-Fraserview .............................................................Hon. George Chow Vancouver-Hastings.............................................................. Hon. Shane Simpson Vancouver-Kensington ..................................................................... Mable Elmore Vancouver-Kingsway ................................................................... Hon. Adrian Dix Vancouver-Langara.............................................................................. Michael Lee Vancouver–Mount Pleasant................................................... Hon.

Melanie Mark Vancouver–Point Grey...........................................................Hon. David Eby, QC Vancouver-Quilchena......................................................Andrew Wilkinson, QC Vancouver–West End....................................................Spencer Chandra Herbert Vernon-Monashee...................................................................................Eric Foster Victoria–Beacon Hill................................................................ Hon. Carole James Victoria–Swan Lake .................................................................. Hon.

Rob Fleming West Vancouver–Capilano................................................................. Ralph Sultan West Vancouver–Sea to Sky ..............................................................Jordan Sturdy Party Standings: NDP 41; BC Liberal 41; BC Green Party 3; Independent 1; Vacant 1

CONTENTS Tuesday, February 20, 2018 Afternoon Sitting Page Orders of the Day Presentation of Estimates....................................................................................................................................................... 2743 Budget Debate.......................................................................................................................................................................... 2743 Hon. C. James S.

Bond Introduction and First Reading of Bills................................................................................................................................ 2751 Bill 2 — Budget Measures Implementation Act, 2018 Hon. C. James Tabling Documents................................................................................................................................................................. 2752 Budget and fiscal plan 2018-19–2020-21 Government’s service plans and strategic plan 2018-19–2021-22

TUESDAY, FEBRUARY 20, 2018 The House met at 1:34 p.m. [Mr. Speaker in the chair.] Orders of the Day [1:35 p.m.] Hon. C. James: I move thatthis House, atitsnextsitting, resolve itself for this session into a commi ttee to consider supply to be granted to Her Majesty. Motion approved. Presentation of Estimates ESTIMATES OF SUMS REQUIRED FOR THE SERVICE OF THE PROVINCE Hon. C.

James presented a message from Her Honour the Lieutenant-Governor: Estimates of Sums Required for the Service of the Province for the fiscal year ending March 31, 2019, and a supplement to the estimates for the fiscal year ending March 31, 2019, recomm ending the same to the Legislative Assembly. Hon. C. James moved that the said message and the estimates accompanying the same be referred to the Commi ttee of Supply. Motion approved. Budget Debate Hon. C. James: I move, seconded by the hon.

Premierof British Columbia: [That the Speaker do now leave the chair for the House to go into Commi ttee of Supply.] I wantto begin by welcoming everyone here in the gallery today. We’ve beenjoined in the capitalby parentswithyoung children, renters, homeowners, advocatesand business own- ers, FirstNations and Métis leaders, mayors and councillors, formerand currentMLAs, and many more peoplewho are watchingfrom home orwork. Thank you, allof you, forjoin- ing us for Budget 2018, a budget that works for you. Sevenmonths ago we were sworn in as anew government.

Itwas clearin the election, as itis now, thatBritish Columbi- ans want a better B.C. We live in a province that is rich in people, resources, natural beauty and opportunities. Yet these opportunities have become furtherand furtheroutof reach for so many. Familiesare working hard and can’tget ahead. Young peoplestarting outcan’tafford housing. Seni- ors can’t get the services they rely on. It’s time fora differentapproach. It’s time everyone in our provinceis partof ourprosperity.

We took the firststeps in the Budget2017 Update to carve thatpathto shared prosper- ity in this province, and now Budget ’18 continues down thatpath to a strong, sustainableBritish Columbia thatputs people first. Our first full budget is based on choices that work for the peopleof this provincebecause yourgovernmentshould be working each and every day to make life affordable, to improve the servicesyou counton and to buildastrong, sus- tainableeconomy thatsupportsjobs in every cornerof the province.

Your government is also looking ahead because this budgetis notonly aboutwhatwillhappen this yearorovera three-year fiscalplan. The choiceswe make today willchart a path to whatwe wantourprovince to look like in ten, 20 and even 50 years. A budgetis about more than revenue and expenses. It’s about people. It’s about the entrepreneurbuilding up their tech start-up.

It’s aboutthe seniorvolunteering time to help theircomm unity, the singleparent who wantsto return to work, the construction worker building our province, the college studentdeciding whatcareerpath to pursue, and the young family putting down roots.It’s aboutthe kind of com- munity we wantto live in. It’s aboutthe kind of future that we allwant.It’s aboutaprogressive provincewe can be proud of. It’s abouta betterB.C. for each and every person in this province. Budget2018 recognizes that an economy that works for everyone startswith a budgetthatworks foreveryone.

After all, it’s British Columbians who drive our economy. That’s why peopleare atthe centre of the choicesthatwe’re making in Budget2018. Those choicesstarted when we were sworn in as a new government. In September’s Budget 2017 Update, we took several importantsteps to meetsome of the province’s mosturgent needs.

We’ve helped make life more affordableby increasing the minimum wage and setting the path to $15 an hour, increasing income and disability assistance rates, investing in 1,700 new affordablerentalunits,taking action to address poverty by developing the first steps towards B.C.’s first poverty reduction strategy and eliminating tolls on the Port Mann and Golden Ears crossings. [1:40 p.m.] We improved services by investing in education to give children the supportthey need to thrive, by providing 2,000 modularsupportive housing unitsforpeoplewho are home- less, by taking imm ediate steps to fight the overdose crisis by creating a ministry formentalhealth and addictions and fundingnew treatmentand supportprograms thatsave lives.

We removed tuition for former youth in care, and we ended fees for English language learning and adult basic education in both the K-to-12 and post-secondary sectors, to give people opportunities to grow and succeed. Now Budget2018 looks ahead. Itbuilds on ourprogress. Itmakeschoicesbased on the people’s priorities,and itdeliv- ers on our commi tments to you as British Columbians. 2743

I wantto acknowledge thatwe’re on the traditionalterrit- ory of the Songheesand EsquimaltNations. I’m honoured to be partof a governmentthatis commi tted to learning from and working with Indigenous peoplesas we build a path towards reconciliation. That means a commi tment to fully adopting and imple- menting the UN declaration on the rights of Indigenous peoplesand the calls to action of the Truth and Reconcili- ation Commi ssion. The Premierhas givenevery ministerthe responsibility for adopting and implementing the declara- tion and the calls to action.

Addressing reconciliation is our shared responsibility, and you’llsee supportfor Indigenous peoples throughout this budget. Budget2018 investsin housing, childcare and skills train- ing, with more than $200 million dedicated to Indigenous priorities over the fiscal plan in that range of areas. That includes funding to expand culturally based Indigenous childcare. Itincludes1,750 new unitsof supportive housing for Indigenous people, which willbe developed in partner- ship with Indigenous housing societies and First Nations.

Itinvestsin Indigenous skills-training developmentfunding for training and solidifying partnerships between industry and the provincial, federal and First Nations governments. Aboriginalfriendship centresare also receivingadditional fundingin this budget.Friendship centresdoincredibleout- reach work and serve allIndigenous peoples,whetherthey are status, non-status, Métis or Inuit. They provide health, socialand dedicated youth programs, whilefostering a deep sense of comm unity for those they serve.

By investing in Aboriginalfriendship centres, we are investing in the kinds of relationships thatourgovernmentwantsto cultivate with First Nations. Now, we know there’s astrong link between linguisticand culturalidentity and social, mentaland physicalwell-being. Revitalization of FirstNations languages is a criticalpartof thatlink. Language is fundamentalto who we are, where we come from, how we relate to others and whatlives on long afterwe’re gone. The teaching of language also strengthens the culturaland socialhealth of a comm unity.

Itencourages children to grow into afuture thatflows from theirrich her- itage. It connects the next generation with those of the past. Both the Truth and Reconciliation Commi ssion’s calls to action and the UN declaration on the rightsof Indigenous peoplesemphasize the need to preserve and revitalizeIndi- genous languages. British Columbia is home to 60 percent of First Nations languages in Canada, with more than 30 unique languages and 61 dialects.ButourFirstNations lan- guages are in a state of crisis. Eight languages are severely endangered; 22 are nearly extinct.

That’s why I’m proud today that we’re commi tting $50 million in this fiscal year to supportthe preservation and revitalization of Indigenous languages in our province. This funding will flow imm edi- ately, because there is no time to lose. I’d now like to talk about the choices we’re making in Budget2018 thathelp make life more affordablefor people in ourprovince. These choicesstartwith building a quality childcare system thatis affordableand accessible. I’ve heard from parentshere in Victoria and across the province that they’re anxious about child care. Often this anxiety starts before the baby is even born.

Parentswantquality childcare thatis safe and thatgives them peaceof mind whilethey’re atwork. Forthose parents lucky enough to find a spot, they struggle to afford high childcare fees, and businesses also feel the effect of unaf- fordablechildcare. They’ve toldus thateconomic growth is hampered. When aparentcan’tfind childcare, itmeans they often lose a worker. [1:45 p.m.] Parentsdelayed from entering or returning to the work- force impactoureconomy’s productivity. The B.C. Business Council, the B.C.

Federation of Labour, chambers of com- merce, VancouverBoard of Tradeand municipalities across B.C. have urged the provinceto improve access to affordable childcare. This wouldexpand the poolof workers available to employers and also create jobs and provide a liftto B.C.’s economy. We need to heed the ever-expanding body of research showing us thatpublicspending on childcare is a wise social and economic investment. That’s why I’m so proud that Budget 2018 marks the beginningof amade-in-B.C. universalchildcare program. It willtake time to deliver, and that’s why we’re starting right away.

Budget2018 offers the largestinvestmentin childcare in B.C.’s history, with a $1 billion childcare investmentover three years — to lower the cost for parents, increase the number of child care spacesand make sure those spaces meet quality child care standards. Our child care plan starts with two key investments to reduce child care costs for tens of thousands of families across this province. Starting April 1, the child care fee reduction program willprovide funding directly to licensed childcare providers. Itwillprovideup to $350 amonth fora childcare space.

These fee reductions willbenefitan estim- ated 50,000 families per year by 2021. We’re also introducing anew affordablechildcare benefit, starting in September2018. Itwillprovide up to $1,250 per month perchild. It will lowercostsfor 86,000 familiesper yearby 2021. The highestlevelof benefitswillapply to infant and toddlercare, because that’s often the leastaffordableand the mostdifficultto find. Familieswho are earning less than $45,000 will pay little or nothing for their child care. Now, familieshave also told us that even if they could afford childcare, there aren’t enough spacesin theircom- munity.

For a childcare plan to work, there must be more spaces.That’s why we’re creating 22,000 new licensed child care spaces across this province. We’re also increasing grant funding to encourage the building and maintenance of spaceswhere they’re needed the mostin B.C. We’llwork with otherministries, municip- alities, schooldistrictsand not-for-profitoperators to accel- erate the creation of new spaces.Thatwork willalso include looking for opportunities to include childcare facilities in new schools and affordable housing. 2744 British Columbia Debates Tuesday, February 20, 2018

We’llofferincentivesforlicensed serviceproviders to offer childcare outsideof standard business hours. This is going to help parentswho work shiftsorweekends orare going to schoolin the evening. Because family-based care is a choice made by many parents, we’re also supporting unlicensed family care providers to become licensed. Experts, like the Coalition of Child Care Advocates of B.C. and the Early Childhood Educators of B.C., have been clear. The quality of ourchildcare system depends on early childhood educators. We agree.

Ourplan to buildmore child care spaceswillmean ahigherdemand forthese profession- als, and we need to do more to support this important field. We’llwork with ourpartners to develop a comprehensive workforce development strategy. It’ll look at innovative approaches to training, education and fair compensation.

We’re getting started in this budget by growing the early childhood educatorprograms in ourcolleges and universit- iesand investing $16 million in federalfunding forbursaries and grants that will support certification and professional developmentopportunities.Taken together, itwillboostthe supply of early childhood educators to meet growing demand and rising quality standards. Our made-in-B.C. plan setsus on the path for universal childcare. Itrepresentsreal, transformationalchange in our society. Our plan will be affordable for families and the province.

It will be accessiblefor parents so that they can getback to work. Itwillgive parents,grandparentsand care- givers peaceof mind by meeting rigorous quality and safety standards. [1:50 p.m.] Now, we know that our vision for universal child care requires ashiftthat’s going to take time. Itwilltake an open- ness to learn, a commi tmentto work togetherand a strong sense of comm unity. I think it’s no coincidence that these values are at the core of quality child care. I’m incredibly proudto be partof agovernmentthatis takingthis boldstep toward universal child care in British Columbia.

I wantto talk aboutanotherchallenge ourgovernmentis tacklingin this budget:housing. Housingaffordability affects us all. The problem has been ignored for too long, and the consequences are being felt throughout B.C., with housing costs skyrocketing. The result is that renters have seen vacancy rates drop while prices rise dramatically. Studentsgoing to college and university have hadahard time accessing affordablehousing. Young professionals are faced with m oving out of their comm unities or the province. First-time hom ebuyers have been sidelined as housing prices soar out of theirreach.

Seniors struggling to m eetrising housing costson fixed incom es are atrisk of hom elessness. Parentshave toldm e that they worry their children won’thave a safe, secure placeto live, letalone be able to afford a house. Peoplehave clearly been hurt by the housing crisis, and B.C. businesses and our economy are feeling the effectsas well. Three outof five VancouverBoard of Trademembers cite housing unaffordability as a barrierto recruitand keep employees. Nurses, construction workers, teachers, engin- eers and city workers are building careers, growing families and contributing to ourprovince.

They shouldbe ableto put down roots. Peoplewanttheirgovernmentto take action, buta piece- meal, reactive approach won’t work. The problem is too complex.The need is too great.That’s why we’re setting out a comprehensive housing plan that commi ts to long-term solutions in Budget 2018. Itstartswithtakingaction to stabilizethe marketand curb demand. B.C.’s real estate market should not be used as a stock market.It shouldbe used to provide safe and secure homes for families,for renters, for studentsand for seniors. That’s why we’re going to crack down on speculators who distort our market.

We willintroducea new annualspeculation tax, starting in B.C.’s urban areas. It’s going to tax foreign and domestic speculators. This taxwillapply to property owners who don’t pay income tax here, including those who leave theirunits vacant.This willpenalizepeoplewho’ve been parking their capitalin ourhousingmarketsimply to speculate, drivingup prices and removing rental stock. To curb demand, we’re also increasing the additional property transfer tax rate, which is known as the foreign buyers tax, to 20 percent.

We think that foreign buyers shouldcontribute more forthe quality of life thatthey enjoy when they are in our province. Currently this tax only appliesto Metro Vancouver, so we’re extending itto FraserValley, Nanaimo, the capitaland CentralOkanagan regionaldistricts.Increasing the tax may deter those who are speculating in B.C.’s housing market, and itwilldefinitely penalizethose who do. Extending itto other comm unities ensures that we simply don’t push the speculation into neighbouring markets.

Ourgoalis fairness forthe peoplethatlive, work and pay taxes here, and we’re taking steps to ensure that in Budget 2018. Countering tax fraud startswith better information- sharing, so we’re changing tax laws to help us ensure the accuracy of the information peopleprovideon the property transfertax and income tax forms. This will help us detect tax fraud and ensure that taxes are being paid. Anotherway to curbdemand is to close realestate loop- holesthat allow some people to skirt our tax laws. We’ve all heard stories of a condo unit being soldmultipletimes before the unitis even lived in.

We wonderif those people have paid theirfair share of taxes. This is unfair to people who are trying to buy into the condo market. We’re changing legislation to require developers to col- lect and report comprehensive inform ation about these presalesassignments.This willallow us to strengthen our auditand enforcementsystem in partnership with the fed- eral government. Anotherloopholethat’s being used is hiddenownership.

Numbered companies, offshore and domestic trusts and stand-inowners hidethe true sourceof capitalthat’s flowing into our real estate market.A lack of transparency in our Tuesday, February 20, 2018 British Columbia Debates 2745

land registry means true ownership is notclear. We’re going to change that. [1:55 p.m.] First, we’re going to require additional information on beneficial ownership on the property transfer tax form. Second, we’re going to establish a registry of beneficialown- ership in B.C. thatwillbe publicly availableand shared with law enforcement and tax auditors. And third, we’re going to introducerequirementsforcorporations to holdaccurate and up-to-date information on beneficial owners.

These changes willreturn asense of fairness to the realestate mar- ket for the people of B.C., because the tax system should work for all British Columbians, not just those at the top. We know thatsoaring house priceshave benefited many people. We think it’s fair to ask those who have benefited from those high pricesto give a bit more back. That’s why we’re increasing taxes on B.C.’s most expensive properties, on the value over$3 million. Ourintentis to bring stability to housing priceswith these changes and have revenues to invest in building affordable housing.

We recognize that these are boldactions, but that’s what B.C.’s housing crisis demands. I’ve talked about demand. That’s one half of the afford- ability equation. Supply is the other half. There’s a drastic shortage of affordablehousing in this province. Familiesare squeezed. Students are struggling. Seniors are falling through the cracks. We came into governmentwith a vision to fix this, and we’re taking action. We’re going to buildthe homes that peopleneed.

These homes will be a mix of housing for students, people with disabilities, seniors, familiesand willrange from supported social housing to market rental housing. We’re also going to make significantinvestmentsto preserve and protectour existing socialhousing forthe peoplealready living in them. Ourcommi tmentswilltotalmore than $7 billion overthe nextten years. This willbe the singlelargestinvestmentin housing in the history of ourprovince.

Itwillbuildalmost 34,000 unitsacross our province, including mixed-income social housing, new beds for students at colleges and uni- versities and units dedicated for people who are homeless. We know housing affordability can hitrenters the hardest, and many of ourmostvulnerablecitizens are atrisk. That’s why ourbudgetbooststwo rentalassistance programs: our rentalassistanceprogram, known as RAP, and the shelteraid for elderly renters, known as SAFER.

We’re going to increase the benefitsof RAP so that low- income familieswill see theiraverage payment increase by $800 per year, and we’re going to expand the eligibility of the program to help 3,200 new households with theirrent. Seniors who receive SAFER willsee theiraverage payments increase by more than $930 a year. Thatmeans we can help over 35,000 households make their rent more affordable. These are importantinvestments,and they’re the rightsteps in the right direction for B.C.’s rental supply. Now, it’s clearthatthe provincecan’tfix the housing crisis alone.

We’re charting a path to build 114,000 affordable housingunits,butthis can only be done by buildingpartner- ships. Itwillrequire a focused efforton ourpartthatwillbe spearheaded by a new housing hub office at B.C. Housing. This office will bring everyone together to facilitate the building of affordable homes. It will develop partnerships to find, use orredevelop availableland in comm unities that are hardesthitby the housing crisis. This new housing hub underlines the importanceof partnerships and the coordin- ated effort it will take to address housing affordability.

We’re also empowering ourpartners to make changes in theircomm unities. On-line accomm odation providers will pay their fair share of taxes with upcoming legislative changes to the PST and the municipaland regionaldistrict tax, also known as the hotel room tax. We know that affordable housing is a real challenge in comm unities,particularly those thatrely on the tourism sec- tor. That’s why we’re going astep furthertoday to change the rulesaround the hotel tax.

We’re giving local governments the flexibility to use theirhotel room tax revenue to build housing in theircomm unities to supportthe workers in the tourism industry. This willgive peoplethatwork in tourism in theircomm unities a placeto live. We’re also giving the powerto strata corporations to levy higherfines for short- term rentals if they choose to do so. Each comm unity facesitsown uniquehousingchallenges.

Each comm unity willnow have more powerand resources to address these challenges locally. [2:00 p.m.] The scale and complexity of the housing affordability challenges m ean change isn’t going to happen overnight. We’llneed to join with m ayors, businesses and comm unity leaders to speed up approvals and to find ways to build m ore housing faster, and we’ll need to develop funding partnerships across the board, with First Nations, with federal governments.

We’re taking action to give British Columbians greater choicein finding housing where they work and where they go to schoolbecause we wantdiverse, inclusive neighbour- hoods. We wantcomm unities with safe, affordablehousing. We want housing that works for people. Now, I have spokenaboutthe changesto make the taxsys- tem more fairto help housing affordability. Peoplein British Columbia wanta tax system thatis fair. They wanteveryone to pay theirfairshare of taxes, and they don’twanthidden fees and costs.I have a clear mandate from the Premier to bring more fairness into our tax system.

Sincebeing sworn in as FinanceMinister, we have, as part of our Budget2017 Update, cut medical service premiums by 50 percent,reversed the tax break given to the top 2 per- centof income earners, phased outthe PST on electricity by 50 percent to help businesses and lowered the tax rate on small businesses. But there’s more to do. B.C. is an outlierin Canada and the only province thatlevies unfair, regressive MSP premi- ums thatpenalizefamiliesand businesses.Whetheraperson earns $60,000 or earns $200,000 a year, they pay the same 2746 British Columbia Debates Tuesday, February 20, 2018

amount.MSP fees have more than doubled overthe last16 years. MSP premiums also impactbusinesses. They’re com- plex. They’re expensive to administer. As partof this fiscalplan, I’m proud to announcethatwe are eliminating allMSP premiums effective January 1, 2020. Thatmeans familieswillsave up to $1,800 a year, and indi- viduals willsave up to $900 a year. This willbe a huge sav- ings for people, and itwillhelp make ourtax system more fair and more progressive. Now, itgoes withoutsaying thateliminating the MSP also eliminates a large portion of government revenue.

We’re making sure we can continue to deliver the services that people count on and maintain fiscal responsibility. That’s why we will replace the MSP revenue with an employer health tax similar to other provinces. Smallbusinesses with payrolls less than $500,000 willnot pay any payroll tax. Businesses with payrolls between $500,000 and $1.5 million will pay a lower rate. And busi- nesses with payrolls over$1.5 million willpay the fullrate. The revenues raised willbe invested in peopleand the ser- vices they count on, health care being front and centre.

The continued success of our province includes strong, sustainableeconomic growth, and the key to sustaining that growth is people. Budget2018 focuses on two mostimport- anteconomic issues:childcare and housing. Itmakesanum- berof investmentsin sectors thathelp create jobs and sup- port our strong, diverse economy, like transportation and agriculture. It also includes enhanced servicesthat seniors, youngpeopleand Indigenous comm unitiesallcounton, like health care, education, the arts and justice. Health care receives the largestportion of ourbudgetyear afteryear — and rightly so.

Withoutyourhealth, notmuch else matters. Investing in our hospitals is investing in the people we care about. Hospitals are where we welcome babies into this world and where our loved ones undergo complicated surgeries or receive palliative care. We’re building, upgrading, expanding and redeveloping hospitals across B.C., from New Westminster to Terrace. We’re investing $3.1 billion in capitalspending in the health sector over the nextthree years to ensure that health care professionals have modern facilities to provide the services that British Columbians need.

B.C.’s health care system is the envy of placesacross the world. To sustain and furtherimprove ourhealth care sys- tem, we’re increasing the Ministry of Health’s operating budgetwith more than $1.5 billion in new funding overthe next three years. [2:05 p.m.] This increase includes $105 million to expand Pharma- Care coverage for 240,000 familiesin our province. Drug priceshave risen, and many British Columbians can’tafford to take theirmedications as prescribed. Peopleare actually making choicesbetween paying for prescription drugs and putting food on the table.

We know we can do better, and that’s why the changes to PharmaCare eliminate deductibles and family maximums for low-income families.This will help peoplegetthe prescription medications thatthey need but are struggling to afford. We also recognize that too many British Columbians do not have a family doctor. That’s why $150 million over the nextthree years will connect them to team-based primary care with other medical professionals, including nurses, mental health practitioners and midwives. Investing in our children means investing in our future.

Our children deserve the best education from dedicated teachers and teaching assistants throughout this province. They’re the professionals who help shape the minds of tomorrow. They getkids excited aboutscience, athletics,lit- eracy. They teach them how to be good globalcitizens. That’s why we are hiring more teachers in this budget, to bring ourtotalto over3,700 new hires across this province since September. This willgo along way to providing needed sup- port for students and will address the increased need for qualified teachers in our schools.

Because both teachers and young children need safe, accessibleclassrooms to live in, we’re dedicating $2 billion overthe fiscalplan to maintain, replace, renovate orexpand schools across B.C., from Surrey to Prince George. This funding is going to bring more schools up to seismic codes, improve playgrounds and create more learning spacesfor our young minds to explore. To support vibrant comm unities for our young people to thrive in, we are adding $15 million over three years to help the B.C. Arts Council to support artists and cul- tural organizations in comm unities across B.C.

This is in addition to the $24 million that’s already allocated in the council’s annual budget.An additional $3 million will be invested in Creative B.C., an organization thathelps grow and develop B.C.’s creative economy through film, digital m edia, music and publishing. The people who need our support the most have been overlooked in this provinceforfartoo long. The transporta- tion needs of many of ourmostvulnerablecitizens have been ignored, dismissed or, worse, clawed back.

I’m proud to say thatwe reversed thatpoor decision to claw back bus passes for peoplereceiving disability assistance, and $214 million over three years is an investment our government is not only willing butwe are proud to make. Itmeans more than 100,000 people with disabilities can travel more freely in theircomm unities and connect with the servicesthat they depend on. Seniors are anothergroup who’ve seen servicescutback. We’re investing $548 million overthree years to hire qual- ified support staff and improve the quality of residential seniors care. Seniors are living longer, fullerlives than ever before.

They contribute to ourprovince, and they deserve to live their lives with dignity and respect. These invest- m entswill give seniors better care and help them stay in their hom e longer. Ourmostvulnerableyouth have been ignored forfartoo long as well. Grand Chief Ed John’s report on Indigenous childwelfare highlighted thatIndigenous childrenand youth Tuesday, February 20, 2018 British Columbia Debates 2747

are 15 times more likely to be taken into government care than non-Indigenous children.As agovernment,we’re doing everything we can to implement that report and support Indigenous comm unities to keep Indigenous children at home with theirfamilies.But those who are or have been in care also deserve ourhelp. Afterall, governmentis their guardian. We have a responsibility to help a childgrow and embark on their life as an adult. [2:10 p.m.] Youth who are aging outof fostercare have higherrates of drugdependency, homelessness, schooldropoutratesand income assistancereliance. It’s notthe faultof the youth.

It’s the fault of a failed system. LastSeptemberwe announced a significantexpansion to the tuition waiverprogram, foryoung peoplewho are form- ally in care to attend post-secondary schooling or training. Lastyear, 189 studentswentto college, university ortraining facilitiesthroughthis program. SincelastSeptember’s invest- ment and expansion of the program, 229 young adults received tuition waivers in just four months. Now, in Budget2018, we’re building on this work. We’re adding $30 million overthe fiscalplan to enhancethe agree- ments with young adults program.

These changes will increase monthly financial supports for more than 800 former youth in care. We’ve seen what these young people can do when they have the support and guidance as other youngadultswhenthey leave home. This fundingwillensure more youngpeopledonotfeelalone and have help withrent, groceries and career advice to help them on their path to adulthood. Peopledeserve to live in safe comm unities, and everyone has the right to live without fear or violence. For too long, supportfor women who are survivors of violence has been lacking.

These women, and often theirchildren, need help to escape the vicious cycleof abuse. In the fall, we invested $5 million to help expand vitalservicessuch as counselling, outreach and crisis support. In this budget, we are again standing with survivors of violence with a commi tment to ongoing funding of $18 million overthree years to increase supports for them. Our housing plan also earmarks $141 million to start building1,500 housingunitsforwomen and children fleeing abusive relationships. This willincrease servicesavailableto victims, including counselling, a safe placeto live and relo- cation support.

Now, safety goes hand in hand with access to affordable quality legal services.Over the years, cutsto legal aid and reductions in family law services have leftpeople without legalrepresentation and torn familiesapart.That’s why we’re expanding legal aid, including Indigenous and family law services,with a $26 million investmentoverthe fiscalplan. We’re also investing $10 million over three years to fund a new family dispute resolution service and increase digital access to justiceservices,to betterreach familiesand people all across the province.

Continued economic growth in this province is depend- enton the diversity of investmentswe make to sectors that British Columbians rely on, like ourtransportation and agri- culture sectors. The peoplewho rely on ourcoastalferry system are also atadisadvantage. B.C. Ferriesis partof ourhighway system. It shouldwork for the peoplewho use it. Ferry costshave skyrocketed, putting islanders ata disadvantage thatis both costly and unfair. Transportation and businesses are feeling the pinch too. Budget 2018 helps B.C. Ferries and other importanttransportation links work forBritish Columbians.

We are freezing fares on all three major B.C. ferry routes, rolling back fares on non-major routes by 15 percent and fully restoring the Monday to Thursday, passengerdiscount rate for seniors. Governmentknows thatthe PattulloBridge is an import- antlink between Surrey and greaterVancouver, butitmust be replaced. We prioritized that in this budget. We’ve announced fundingoverthree years to fund the initialstages of that project and to get going with the replacement, because replacing the bridge will improve safety for com- muters, getpeoplehome to theirfamiliesfasterand facilitate the transportation of goods.

To help bolsterourinternationalexports,we’re investing in programs to help get our goods to global markets.We have so much to offer the rest of Canada and the world in terms of ourhigh-quality fruit,vegetable, seafood, wine, craft beer, agrifood.

With Budget 2018, we’re investing $29 million over three years in B.C.’s agriculture, food and seafood sectors through Grow B.C., Buy B.C. and Feed B.C. programs. [2:15 p.m.] Support for farmers, better local marketing efforts and groundwater protections that come from this investment willsupportourvitalagriculturalland reserve and improve B.C.’s brand recognition for the food we sellin Canada and internationally. We live in a provincethatis geographically blessed. We’re incredibly lucky to have our mountains, our rivers, our oceans and ourlakes.

Keeping ourB.C. parks as destinations for locals as well as touristsrequires resources and trained staff. That’s why we’re adding $5 million, overthree years, to B.C. Parks budgetto ensure that 1,900 new campsites will meetthe standards thatBritish Columbians and nature lov- ers from around the world expect. We’re also allocating $9 million to hire 20 conservation officers and enhance programs that reduce human-wildlife conflict through education, innovation and cooperation.

And $14 million, over three years, will help develop and implementa revitalized B.C. wildlife managementinitiative to betterprotectwildlife through conservation, biodiversity and habitat protection. In partnership with B.C.’s Green Party caucus, yourgov- ernment has recommi tted B.C. to a cleaner, greener future by reducing greenhouse gas emissions, increasing B.C.’s car- bon tax rate, growing our clean economy by investing in green initiatives and supporting B.C.’s transition to a low- 2748 British Columbia Debates Tuesday, February 20, 2018

carbon economy. Starting April1, 2018, we willincrease the carbon tax rate by $5 pertonne, reaching $50 pertonne in April 2021. To help familiesthatneed it,we are increasing the climate action tax credit by an additional $40 million. Additional reliefwillalso be provided in future years as the carbon tax increases. We know thatB.C.’s industries are vitalto ourprovincial economy.

We want them to prosper, to be competitive, to help us reach our emission targets.To achieve this, B.C. is creating a new clean growth incentive program that will reward industry for changing the way they do business to better align with the world’s cleanest performers. Over the coming months, the Minister of Environment and Climate Change Strategy will consult with businesses, FirstNations and expertsand the publicon the details of this program. By beingopento innovation and bringingindustry on board, we willbuildastrongereconomy by beingaleader on climate action. We mustactnow.

The effectsof climate change are already at our doorstep. Wildfires are unpredictable, but we know they’re going to worsen with climate change. We need to do more in comm unities to supportourprovince’s response to wildfires. That’s why Budget 2018 invests an additional $72 million, over three years, to help comm unities better prepare for and respond to wildfires and to provide further wildfire recovery support. Through record levels of investment,we’re responding to the mosturgentneed throughoutB.C. for the benefitof all British Columbians.

These investments will result in real changes atthe comm unity leveland supportstrong, sustain- able growth that British Columbians can benefit from for generations to come. Ourgovernmentis focused on building astrong economy in every cornerof ourprovince, where peopleare rewarded for hard work with good wages, job security, a safe place to buildtheircareer. You’ve heard thata lack of affordable, quality childcare forparentsis hampering businesses’ ability to retain a reliableworkforce. A lack of affordablehousing is a realbarrierto business growth.

That’s why we’re taking action on both fronts: to help businesses create more jobs and improve their ability to recruit and retain workers. Budget’18 also invests$26 billion, over three years, in capitalspending on schools, hospitals, roads, bridges and other infrastructure — the highest level in B.C.’s history. This investm ent will create well-paying, long-term work for British Columbians in a variety of sectors across our province.

These large numbers m ean a lotto people, who are going to see thatinvestm entreturned to them by way of improved roads, new hospitals and expanded schools, as well as the 50,000 direct and indirect jobs created in every cornerof B.C. during the construction of $9 billion worth of m ajor taxpayer-supported capital projectsgoing on in comm unities. [2:20 p.m.] B.C.’s economy continues to generate full-time employ- m ent, with 4,100 new full-time jobs created just last m onth. We continue to have the lowest unemploym ent rate in Canada.

We’re building on these successes by supporting job creat- ors throughoutthe province. We’ve already seen companies addjobs in the high-tech, transportation and resource sec- tors in Vancouver, PrinceRupert,PrinceGeorge and across our province. The recent appointment of Alan Winter as B.C.’s innovation commi ssioner will help us create new opportunitiesforB.C. tech companies.These companiessig- nal a strong international endorsement of B.C.’s economy and talentpool, and along with B.C.’s smallbusinesses, they can help to create jobs that families can depend on.

In fact, smallbusinesses across B.C. accounted for about 45 percentof job creation in ourprovincerecently. We know we need to support the success of small businesses. That’s why we imm ediately cutthe smallbusiness taxrate from 2.5 percent to 2 percent and why we’re establishing the small business task force, to help us betterunderstand theirneeds so we can create the best policies for them to thrive. On January 1 of this year, B.C. businesses saw savings with a 50 percentcutto PST on non-residentialelectricity, and we’re completely eliminating the PST on non-residential electricity on April 1, 2019.

This translates into savings of more than $150 million annually for B.C.’s businesses. This willhelp them create jobs and a more sustainableeconomy forourprovince. It’llhelp businesses expand into new mar- kets and reinvest in the technology of tomorrow. Budget2018 is balanced. We’ve had to facesome tough choicesto builda balanced budget.We inherited financial burdens thatshouldhave been acted on earlier. The years of poor choicesand neglectatICBC mean they’re forecasting an over$1.3 billion loss this fiscalyear. These losses have put real pressure on our fiscal plan, now and for future years.

Lastyearwe also faced an unprecedented wildfire season. We were proud to supportthe comm unities and businesses thatwere facing the wildfire threat.The end resultwas signi- ficant,with wildfire costsnow reaching more than $870 mil- lion in ’17-18. With these pressures,it’s more importantthan everto focus on those we are here to serve: the peopleof this province. What’s differentaboutthis budget,and indeed this gov- ernment, is that we understand the concept of balance. Previous budgetshave emphasized fiscalbalance, butthey didn’t balance this fiscal prudence with British Columbi- ans’ priorities.

We are economic leaders in Canada, but we can’t consider ourselves leaders if we’re not sharing the prosperity of our province with the British Columbi- ans who helped build it. This budget is balanced in its approach, and it’s balanced fiscally. B.C. continues to outperform economic expectations. We’re the only province rated triple-Aby each of the inter- national credit-rating agencies,and in January, 2.4 million peoplehad jobs, a near-record level for British Columbia.

We continue to have the lowest unemployment rate across Canada, and private sector forecasters expect B.C. once Tuesday, February 20, 2018 British Columbia Debates 2749

again to rank nearthe top of provincialrankingsin econom- ic growth in 2018 and 2019. This is good news forBritish Columbians and ourfuture. These positive economic indicators translate into good jobs and growth opportunities in comm unities. They go hand in hand with key investmentsin peopleand servicesthatwill help drive future economic growth. We’re commi tted to building on this growth as we deliver on our commi tments to British Columbians. However, we mustbe aware of the risks when itcomes to ourbottom line. We continue to be careful managers of the public’s tax dollars.

That’s why this budgetkeeps a comfortableforecast allowanceof $350 million and why we’ve setaside$550 mil- lion in contingenciesfor the nextfiscalyear. This leaves us with atotalprojected surplus of $219 million, as wellas sur- pluses in the following two years. [2:25 p.m.] Our debt remains affordable. Our debt-to-GDP ratio is expected to remain below 16 percent over the fiscal plan period, and our debt-to-revenue ratio has improved since September’s Budget 2017 Update and is forecast to stay below 90 percent.

These numbers mean that we can look ahead and feel confident in the stable, steady economic growth of our province. Make no mistake. B.C. is a wealthy province, rich in resources,rich in comm unity and talent,rich in the diversity of ourpeople. Butwe’ve become divided by choicesthatdid notputpeoplefirst.Ultimately, we allwantthe same thing: to live in asafe, vibrantcomm unity; to take pridein the work we do; to help our friends, families,neighbours; and to be provided with opportunities to succeed. Budget2018 liftspeopleup. Itmakesahistoricinvestment to take care of ourchildren.

Ittakes boldsteps to tacklethe housing crisis. Itinvestsin record levels of infrastructure to supportjobs and spureconomic growth in every cornerof our province. A budgetneeds to positively impactyourlife. The invest- mentswe make today have been carefully considered with one thing in mind: whatactions can we take today to build a better future for all British Columbians? That startswith putting peopleat the centre of the choiceswe make every day. We have charted amore affordable, balanced and hope- ful vision for B.C. with Budget 2018. To the people of British Columbia, I want to say this.

Budget2018 is a budgetthatworks for you because this is yourprovince, we are yourgovernment,and we are work- ing for you. S. Bond: It’s my privilege to deliver some brief remarks and initialresponse to Budget2018 on behalfof the official opposition and my co–Finance critic. I’d like to begin by congratulating the Finance Minister on herfirstfullbudgetbeing tabled today. Itis a significant undertaking. Ittakes a greatdealof effortand a lotof sup- port by British Columbia’s incrediblepublicservice. We’ve hadsome experiencewith thatprocess, and I certainly thank them for all of their efforts.

If there is one documentthatclearly helps to define agov- ernment, it is the provincial budget.It provides an outline of governmentpriorities. Itdetails the government’s spend- ing plans. Essentially, the provincial budgetis an account- ability document.Itis a reportcard thatvoters can look at and see if agovernmentis, in fact,deliveringon itscampaign promises. For thatreason, it’s equally importantto account for what has been left out of a budget. Voter expectations are very high in British Columbia. Peopleexpect this government to deliveron what it said it woulddo during the election campaign.

In ourinitialana- lysis of the budget,we see a very significantspending plan. Much of this is whatallof us heard British Columbians talk about during the last election. [2:30 p.m.] Yetwe see spendingthatfaroutweighs revenuegeneration in this province. In fact,spending growth is projected to be almostdoublethe anticipated revenue growth. In addition, this budgetprojectsthatthe governmentis expecting reven- ues from B.C.’s resourceeconomy, the backbone of oureco- nomy, to decline across anumberof sectors.

So Budget2018 outlines significantspending even whileprojecting revenue from our major economic sectors is declining. While there are certainly investments in child care and housing — importantinitiatives, which British Columbians certainly talked aboutduringthe lastelection — there is little evidence of any attention being paid to the revenue side of the equation. Simply put,there is no plan to grow the eco- nomy, to pay forthe long listsof promises made. In fact,the biggestrevenue generator in this budgetis tax increases on job creators in this province.

Sincetaking office, the NDP, as a government,has orwill have introduced an additional$8 billion in annualtaxation measures. This means the very peopleresponsiblefor cre- ating jobs and growing the economy in British Columbia are being hitwith billions of dollars in tax increases — tax increases that are going to affect their ability to invest in well-paying, family-supporting jobs in this province. That includesa new payrolltax and an increased carbon tax that is no longer revenue-neutral. This is a governmentthatthinks governmentis respons- ibleforgrowing the economy.

This governmentpromised to follow through on the B.C. Liberal plan to eliminate MSP premiums, and this budget does reflect that commi tment. Government is eliminating MSP premiums, while at the same time, they are adding this to the tax burden of busi- nesses in British Columbia. It’s also interesting to note thatthis new payrolltax kicks in a yearbefore the MSP premiums are phased out,generat- ing a tax windfallfor the government— a governmentthat is giving with one hand and taking with the other.

This budgetalso features a carbon tax that is no longer revenue-neutral, no longer requires government to report outon how thatrevenue willbe used. Onceagain, arevenue source for government’s spending plan that comes as a tax 2750 British Columbia Debates Tuesday, February 20, 2018

burden for British Columbians. We comm end the governmentfor recognizing the needs of familiesfor more childcare, an issue thatwe also recog- nized in ourplatform lastyear. However, we have significant concerns about implementation. First,itis now clearthatthe $10-a-day promise was never more than abranding exercise. We are also concerned about a stereotypical big-government solution, which we believe willsufferfrom the same issues as allbig-governmentsolu- tions — escalating costs,bureaucratization, overregulation, unionization and wait-lists.

In particular, without an increase in wages, the government has not provided a way to ease the critical shortage of early childhood educators, without whom, new spaces will be difficult to deliver. Finally, lower-income families who prefer informal arrangementsorparentswho wantto care fortheirchildren athome receive shortshriftfrom this government— mean- ing less parental choice, not more. On housing, we recognize that government has a sub- stantive housing plan. Butlet’s rememberwhatthey prom- ised British Columbians.

There is no evidencein this budget — in fact,evidenceto the contrary — thatthis government willeverreach the 114,000 new affordablehousingunitsthat they promised British Columbians. The promise to review the homeowner’s grantin tandem with the rental subsidy is ominous, suggesting that one might be substituted for another.

A reduction in the homeowner’s grantwouldeffectively increase property taxes for every homeowner in the province by several hundred dollars per year, and I wouldremind the government that many homeowners are also low-income earners. [2:35 p.m.] On the otherhand, the governmentis also backing away from its promise of a $400 rental rebate, even with its massive tax increases. It is nowhere to be found in this budget, despite what the government promised British Columbians.

This plan has absolutely no relieffor comm uters in the LowerMainland, with the exception of the PattulloBridge, notwithstanding taking $8 billion in taxation revenue. This plan willnotdeliverthe wideningof Highway 1 in the Fraser Valley, Surrey LRT, the George Massey Tunnelorthe Broad- way line. On the whole, this budget is balanced on the backs of job creators in this province. All this, and additionally we are concerned aboutexternalforcesthatcan impactthe sus- tainability of this budget.Those include NAFTA, softwood, interest rate increases and more.

Businesses may choose to leave the province because of an overly burdensome tax regime and an unfriendly business climate. The official opposition is deeply concerned about a budgetwhose spending plan exceeds revenue generation. This budgetreflectsa m assive spending plan. Spending is growing at twice the rate of government revenue growth, and the fiscal plan is wholly dependent upon a growing economy. However, the plan has no m easures to grow the economy. In fact, the exact opposite is the case. The m easures in this budgetsubstantially inhibitprivate sector growth and job creation.

If all of this sounds vaguely familiar, it’s because we’ve heard this story before: tax, spend and tax some more. Wel- come back to the NDP of the 1990s. And remember, the sequel is always worse. With those briefcomm ents,I willreserve my rightto con- tinuemy remarks atthe nextsittingof the House. Mr. Speak- er, I now move that we adjourn debate. S. Bond moved adjournment of debate. Motion approved. Introduction and First Reading of Bills BILL 2 — BUDGET MEASURES IMPLEMENTATION ACT, 2018 Hon. C.

James presented a message from Her Honour the Lieutenant-Governor: a bill intituled Budget Measures Implementation Act, 2018. Hon. C. James: I move first reading of Bill 2, Budget Measures Implementation Act, 2018. The billamends 21 statutesin orderto implementmany of the tax measures in Budget 2018. The Income Tax Act is amended to replace the infirm dependant credit and the caregiver credit with a new B.C. caregivercreditfor 2018 and subsequenttax years and to expand the Film Incentive B.C. taxcreditto scriptwriting. The actis also amended to eliminate the education taxcredit for 2019 and subsequentyears.

The Income Tax Actis also amended to extend several tax credits— the mining flow- through share taxcreditforone year, the farmers food dona- tion tax creditforone year, the interactive digitalmedia tax credit for five years and the book publishing tax credit for three years. The Provincial SalesTax Act is am ended to enableon- line accomm odation platform s to registerto be collectors to collect the provincial salestax and the municipal and regional district taxes. The changes will be effective on a date to be specified in regulation.

The actis also am ended, effective April 1, 2018, to increase the luxury surtax rate on passengervehicleswith a purchase price of m ore than $125,000 and above. The Property TransferTax Actis amended to increase the rate on residentialpropertiesto 5 percentfrom 3 percentfor the assessed value above $3 million, effective February 21, 2018. The actis also amended to exempttransfers, in certain circumstances, in the case of a bankruptcy.

The SchoolActis am ended to include a new schooltax on residentialproperties assessed above $3 million and to include a new revitalization exemption for purpose-built rentalhousing which receives the municipalrevitalization Tuesday, February 20, 2018 British Columbia Debates 2751

exemption. These m easures are effective for the 2019 tax year. [2:40 p.m.] The TobaccoTax Actis amended, effective April1, 2018, to increase the tax rate on cigarettes to 27.5 centsfrom 24.7 cents per cigarette and to increase the tax rate on loose tobacco to 37.5 cents from 24.7 cents per gram. The Motor Fuel Tax Act is amended, April 1, 2018, to increase the fueltax rates on gasoline and dieselin the cap- italregionaldistrictto 5.5 centsperlitre from 3.5 cents.The Carbon Tax Act and Motor Fuel Tax Act are amended to clarify that fuel salesbetween refiner-collectors are exempt from security.

There are a number of statutes amended to improve tax administration through increased audit, enforcement and information-sharing provisions; provide for audit recovery fees in the case of out-of-province tax auditsand necessary consequential amendments to various statutes. Finally, the Hydro and PowerAuthority Actis amended to clarify thatB.C. Hydro schooltax liability is limited to land it owns in fee simple and on improvements. Mr. Speaker: You’ve heard the question for first reading. Motion approved. Hon. C.

James: I move that the bill be placed on the orders of the day forthe nextsittingof the House aftertoday. Bill 2, Budget Measures Implementation Act, 2018, 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. Tabling Documents Hon. C. James: I have the pleasure to rise to tablegov- ernment’s overallstrategicplan in the Budget and Fiscal Plan 2018-19–2020-21, which togetherfulfilthe requirementsof sections 7 and 12 of the BudgetTransparency and Account- ability Act.

I also table, on behalfof the ministers responsible, the ser- viceplans as required undersection 13 of the BudgetTrans- parency and Accountability Act. The serviceplan documentsare presented in two binders. The firstbindercontains service plans for the Officeof the Premier and 20 ministries. The second bindercontains the service plans for 27 delivery agenciesand Crown corpora- tions. The second binderincludesa listing of organizations thatare exempted from the serviceplan requirementsof sec- tion 13 of the Budget Transparency and Accountability Act. Hon. M. Farnworth moved adjournment of the House.

Motion approved. Mr. Speaker: This House stands adjourned until1:30 p.m. tomorrow. The House adjourned at 2:43 p.m. 2752 British Columbia Debates Tuesday, February 20, 2018

Hansard Reporting Services DIRECTOR Robert Sutherland MANAGER OF REPORTING SERVICES Christine Fedoruk EDITORIAL TEAM LEADERS Laurel Bernard, Janet Brazier, Karol Morris, Amy Reiswig, Glenn Wigmore TECHNICAL OPERATIONS OFFICERS Pamela Holmes, Dan Kerr, Robin Saxifrage, Mike Sinclair INDEXERS Shannon Ash, Julie McClung, Robin Rohrmoser RESEARCHERS Mike Beninger, Niloo Farahzadeh, David Mattison, Steve Pocock EDITORS Julia Bobak, Kim Christie, Deirdre Gotto, Jane Grainger, Betsy Gray, Iris Gray, Mary Beth Hall, Barb Horricks, Bill Hrick, Jennifer Kaddoura, Catherine Lang, Paula Lee, Donna McCloskey, Quinn MacDonald, Anne Maclean, Claire Matthews, Jill Milkert, Lind Miller, Erik Pedersen, Sara Shields, Murray Sinclair, Robyn Swanson, Antoinette Warren, Heather Warren, Kim Westad Access to on-line versions of the official report of debates (Hansard) and webcasts of proceedings is available on the Internet.

Chamber debates are broadcast on television. www.leg.bc.ca Published by British Columbia Hansard Services under the authority of the Speaker.

Document details

Collection	British Columbia — Debates (Hansard)
Citation	20180220pm-Hansard-n82
Type	hansard
Volume / chapter	20180220pm Hansard n82
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	1ec9de11a05270369c1b90ef5568509278be3d2f

Source file is stored in the law ingest library (pdf).