British Columbia Hansard — Tuesday, July 28, 2020 a.m. — Number 349 (HTML) (41st Parliament, 5th Session)
20200728am-House-Blues
British Columbia — Debates (Hansard)
Fifth Session, 41st Parliament
(2020) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, July 28, 2020
Morning Sitting
Issue No. 349
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business
Introduction and First Reading of Bills
Bill M207 — Repeal Bill 52 and Bill 15 Act, 2020
J. Rustad
Statements (Standing Order 25B)
Talitha Koum Society addiction recovery services for women with children
J. Isaacs
Vancouver Island University response to COVID-19
S. Malcolmson
Role of Royal Canadian Legions
D. Davies
Spirit Orca swimmers and Great Big Swim event
M. Dean
Senior health care case and ambulance service in Smithers
J. Rustad
COVID-19 outbreak in Haida Gwaii
J. Rice
Oral Questions
Government support for tourism industry
M. Stilwell
Hon. L. Beare
D. Clovechok
Mental health services and funding
A. Olsen
Hon. J. Darcy
Government plan for education system reopening
J. Johal
Hon. R. Fleming
D. Davies
Government plan for education system reopening and child care availability
J. Tegart
Hon. K. Chen
S. Bond
Petitions
T. Stone
Reports from Committees
Public Accounts Committee,
summary of activities,
2019-20
S. Bond
M. Dean
Orders of the Day
Third Reading of Bills
Bill 24 — Municipalities Enabling and Validating (No. 4) Amendment Act, 2020
Committee of the Whole House
Bill 18 — Economic Stabilization (COVID-19) Act
S. Bond
Hon. C. James
S. Cadieux
S. Furstenau
TUESDAY, JULY 28, 2020
The House met at 10:05 a.m.
[Mr. Speaker in the chair.]
Routine Business
Prayers and reflections: Hon. C. Trevena.
Introduction and
First Reading of Bills
BILL M207 — REPEAL BILL 52 AND
BILL 15 ACT,
J. Rustad presented a bill intituled Repeal Bill 52 and Bill 15 Act,
J. Rustad: I am pleased to introduce the bill, Repeal Bill 52 and Bill 15
Act, 2020, standing on the order paper in my name and for the member for
Delta South.
The pandemic has made British Columbians focus on our provincial
economy [audio interrupted] for greater self-sufficiency. Many borders
still remain closed. In no other sector has this become more apparent
than in the agriculture sector.
Local farmers work tirelessly to enrich our economy and provide us
with the fresh, local food that we all need. In doing so, they have many
challenges, both natural and man-made.
Bills 15 and 52 have diminished the farmers’ ability to manage
their own land and make those decisions that are so critical for food
production. Bills 15 and 52 increase financial hardships for farmers
that are currently struggling to harvest their crops as we speak and
threaten the existence of multigenerational family farms.
This bill would repeal these two bills, both Bill 15 and Bill 52,
and would restore farmers’ rights to manage their own land.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
J. Rustad: I move that the bill be placed on the orders of the day for the
next sitting of the House after today.
Bill M207, Repeal Bill 52 and Bill 15 Act, 2020, 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.
Statements
(Standing Order 25B)
TALITHA KOUM SOCIETY
ADDICTION RECOVERY SERVICES
FOR WOMEN WITH CHILDREN
J. Isaacs: When you’re struggling with addiction, your world is turned upside
down. If you’re a mom, it’s even more challenging, not knowing how your
children will be cared for during your recovery.
Talitha Koum, or TK, is a non-profit organization empowering women
with addictions to lead healthy and fulfilling lives by providing a
home, a nurturing community, 12-step programming and life skills
training. Recovery is challenging, but with volunteer support and the
commitment of organizations like TK, recovery can be a shared experience
where moms and their children are supported through recovery and
healing.
Brianna is a mom of two young boys. She’s a member of the
Tsimshian First Nation, a high school graduate and a recovering
alcoholic. Brianna’s drinking escalated at the age of 15 when her mom
passed away. She became trapped in a cycle of recovery, relapse and
binge drinking. Like many alcoholics, once Brianna started to drink, she
couldn’t stop.
When Brianna needed help, she chose TK because she wanted her
children with her while she was recovering. Brianna is enthusiastic
about her progress. She has opened her mind and heart, found a higher
power and is working on developing the spiritual and cultural aspects of
her First Nations heritage.
[10:10 a.m.]
Alicia grew up in an abusive and dysfunctional home, and by the
time she was 15, she was a heroin addict. Alicia was also stuck in a
revolving cycle of recovery, relapse and overdose and entered TK’s
recovery program with no hope. But Alicia had a spiritual awakening that
did give her that gift of hope and helped her through her
recovery.
Alicia had another gift of hope, something very special. Alicia
gave birth to a healthy baby girl while in TK’s recovery
program.
Talitha Koum is transforming lives and is supporting women and
their children throughout their journey of recovery.
VANCOUVER ISLAND UNIVERSITY
RESPONSE TO
COVID-19
S. Malcolmson: In Nanaimo, we are learning from the pandemic, from the staff and
students at Vancouver Island University. VIU has found new ways for its
trades students to continue learning. Their carpentry department, with
Nanaimo builder Ken Grewal, is building a north-end duplex with nine
students in each unit so they can work in two teams and ensure physical
distancing. Cam Frenette, their carpentry instructor, says: “We teach
workplace safety in all of our trades classes, and this is an additional
layer of safe practice our students are learning.”
Another example are MBA students at VIU. In partnership with the
Vancouver Island economic resiliency initiative, they are coaching
Island businesses navigating economic recovery, connecting them to
programs and investments.
Students are keeping everybody connected and learning through this
time. They transformed their annual leadership conference into a
month-long virtual event.
VIU turned one of its state-of-the-art labs into a Health
Canada–approved hand sanitizing manufacturing facility, so it wasn’t
just the distilleries that did this.
VIU is researching the ways that COVID-19 is affecting our region
and how to improve responses in the future. There are about ten
different programs. One of them, health care professionals with
depression and PTSD, which is something that hits the sector hard
anyway…. Those that have had this exacerbated through the pandemic are
part of a study using ketamine-assisted psychotherapy.
Quality of life and housing situations are being
researched. Creating a web archive of COVID impacts for scholars
and citizens to access in the future. Studying what has been the impact
of new ways of delivering teaching through K to 12 for teachers and
students and all school employees.
All of these are being researched out of Vancouver Island
University in Nanaimo for the benefit of the whole province. Thank you
to the students and staff that are leading the way.
ROLE OF ROYAL CANADIAN LEGIONS
D. Davies: Today I’m going to talk about an organization that is dear to my
heart, the Royal Canadian Legion, keepers of remembrance. The Legion was
founded by veterans and for veterans 95 years ago. It now advocates for
the care and benefits for all who served Canada, regardless of where
they served or when they served, including our new younger
members.
The legion also provides representation and assistance to them,
including currently serving Canadian Armed Forces members and RCMP, and
to their families an access to services whether they are legion members
or not. The Legion helps thousands of veterans each year to make
significant positive changes in their lives. Many legions also have
close relationships with local fire departments, paramedics and other
para-military organizations.
Mr. Speaker, I’ve been a member of my local legion since 1995 and
know the role that it plays in my community. With 145 branches across
the legion, these are cornerstones of all of our communities. From Port
Alice to Blue River to Vancouver to Prince George to Fort St. John,
their members provide local services and supports to build a stronger
Canada and, indeed, a stronger British Columbia. Whether helping local
veterans to support seniors by providing new sporting programs, raising
funds, volunteering to help those in need, legions provide essential
services to their communities. In fact, legions in B.C. raise and give
back nearly $4 million each year to our communities.
Sadly, due to the COVID-19 pandemic, many of these legions will
have no choice but to close their doors. In B.C., it is estimated that
nearly 40 percent of legions will not be able to recover financially
from hardships that this pandemic has caused. Closure of the legions
will not only affect veterans that we should be giving our support to
but will also leave a giant void for seniors who need our support now
more than ever.
Unfortunately, legions do not qualify for many of the aid
programs, leaving them no way to keep their doors open. Legions need our
help.
Please, wherever you can, support these incredible community hubs,
the Royal Canadian Legion.
[10:15 a.m.]
SPIRIT ORCA SWIMMERS
AND GREAT BIG SWIM
EVENT
M. Dean: Each Saturday or Sunday this month and next, Susan Simmons,
Jasmine Kremer and the Spirit Orcas are entering the water of the Salish
Sea and swimming along the shoreline. They’re going ten kilometres a day
along their route from Brentwood Bay to Esquimalt Lagoon. Their
eight-leg journey will total about 80 kilometres, expecting to conclude
on August 16.
The Spirit Orcas are a group of six developmentally disabled
adults with big hearts and lots of courage. All of the swimmers are from
Vancouver Island, and they believe that swimming is a great way of
staying fit and managing wellness.
Susan is a swimmer with multiple sclerosis, and she says:
“Swimming in the open water provides me with a special kind of freedom.
Multiple sclerosis is a cruel disease. While one of the best ways for me
to manage it is to exercise, exercise is also one of the things that can
cause me to overheat and potentially lead to damaging attacks. The open
water keeps me cool, where I’m free to exercise.”
The Spirit Orcas are raising awareness about the importance of
staying fit during COVID-19 and raising funds for Vancouver Island’s
rapid relief fund. The swim has been called the Great Big
Swim.
As whales may frequent the waters of the chosen route, the
swimmers have rules about their encounters. If they’re spotted, the
swimmer may be removed from the water temporarily, and then they’re able
to re-enter the water when the whales have passed in exactly the same
spot.
On August 16, the swim will end, and I intend to join them at
Colwood waterfront, Esquimalt Lagoon.
Thank you so much to everybody who’s supporting the Great Big
Swim, and a good swim and good luck to one and all.
SENIOR HEALTH CARE CASE AND
AMBULANCE SERVICE IN
SMITHERS
J. Rustad: A constituent of mine, Laura Blackwell, asked me to read this
statement on her behalf.
“On July 9, my 85-year-old grandfather, Robert Carol, had a fall.
Immediately, he pressed his Lifeline for help. At 12:03 p.m., his
daughters and an ambulance were notified that he had fallen.
“His daughters went to his rescue, but because of COVID-19, they
were unable to enter his assisted-living home, which is The Meadows
located in Smithers, B.C. Standing outside looking through the window,
they could see their dad lying on the floor but could do nothing but
wait. Meanwhile, a worker in the home sat with my grandpa while waiting
for an ambulance.
“Thinking it wouldn’t be long till the ambulance arrived, everyone
stayed and waited to ensure that there were no serious injuries like a
possible broken hip. As minutes ticked by, no ambulance arrived. After
an hour and a half, an ambulance arrived.
“I’m writing this statement to ask why. Why did it take an hour and
a half to rescue a senior citizen from a fall? I called the Smithers
ambulance to see what took them so long, and they told me that there was
only one ambulance scheduled for the day, and they were out on a code 3
call, which apparently has a higher priority.
“How does one ambulance service a community of over 5,000 people?
This is a disgrace. It needs to be fixed today, not later, and not only
for the community of Smithers but for every northern community that
suffers inadequate health care.
“Have you heard the saying in the north: ‘There’s no hope past
Hope’? Whether it be an ambulance or other medical care, this statement
rings true every day for us northerners.”
COVID-19 OUTBREAK IN HAIDA GWAII
J. Rice: Last week Northern Health declared a COVID-19 outbreak on Haida
Gwaii. As expected, this has flared up tensions that have been building
in the region since the start of the pandemic. It is believed that all
of the cases are either residents who had recently travelled off-island
or had exposure to other residents who had recently travelled
off-island. All of the active cases are self-isolating at home, and
clear processes are in place for identifying and informing close
contacts so they can take appropriate precautions.
A learning for us on the north coast is that the virus can hit any
community at any time, even despite valiant efforts to protect
communities. This is why it’s important that we always act as if the
virus is in our community. Keep within your bubble, keep physical
distance, avoid crowded places, wear a mask when you can’t, and wash
your hands frequently.
[10:20 a.m.]
Another learning is that we need to stop fearing the other. I get
calls on a daily basis from people worried about tourists from other
provinces and countries visiting our communities. The worry is that
these outsiders will bring the virus into the community, but what the
recent outbreaks tell us is that disregarding health advice is our
biggest threat, not outsiders. We need to remember that.
While international borders are closed, there are people from the
United States and other provinces who live and work in our communities
that have kept their home licence plates on their vehicles for one
reason or another. If you see a licence plate from a different
jurisdiction, be kind. Don’t immediately assume they are not allowed to
be in town and are not following public health guidelines.
If we don’t follow the advice of public health experts, no amount
of restrictions to travel will stop local outbreaks. Let’s not let fear
get in the way of public health.
As Dr. Bonnie Henry says: “Be kind, be calm, and be
safe.”
Oral Questions
GOVERNMENT SUPPORT FOR
TOURISM
INDUSTRY
M. Stilwell: Landsea Tours in Vancouver typically hosts 120,000 people
annually. They typically, at this time of year, have about 130 people
working for them, but their workforce has been reduced to just two staff
members.
President Kevin Pearce tells me: “We had to close our doors on
March 16, and we have had zero revenue for the past 18 weeks. An
economic recovery plan for tourism is desperately needed
now.”
To the Minister of Tourism, what is she waiting for? Is she
waiting for businesses like Landsea Tours to go broke?
Hon. L. Beare: I thank the member for the question. We know how hard tourism and
the tourism sector has been hit, particularly businesses like Landsea
who predominantly rely on international visitors.
The operator that the opposition member has mentioned is eligible
for a number of supports, both federal and provincial. They include an
enhanced commercial rent program, which provides up to 75 percent rent
reduction for businesses. They can qualify for deferred taxes, the 75
percent wage subsidy that we successfully advocated with the Canadian
government for, and zero-interest loans for small and medium-sized
businesses.
Staff and my ministry have reached out to the operator that the
member mentioned and have had a conversation to ensure that they are
aware of all the supports they need during this challenging
time.
We know that there is more to do. That is why we are currently
working on our economic recovery plan and consulting with industry and
the public as we speak. Our government is going to continue to work
closely with the industry, and we’re going to continue to provide
support that puts people and businesses first.
Mr. Speaker: The member for Parksville-Qualicum on a supplemental.
M. Stilwell: Well, the minister seems to say that she’s listening. It’s been
four months of businesses coming to the government, asking for the
support. Landsea Tours doesn’t need rent relief. They own their
property. They’ve had to sell their office, their shop and their yard
space that they’ve operated from. They’ve also had to start selling
vehicles just to keep their doors open. They need help now.
Kevin says: “The bills are still coming in, but there’s no money
coming. I’m baffled by the delay to act by this government.” Kevin,
again, has been waiting, along with businesses across this province who
are impacted by this pandemic, four months.
When can he expect to see a tourism-specific recovery plan from
this minister?
Hon. L. Beare: As the Minister of Finance said, I believe two weeks ago now,
everything we have been doing here in our province surrounding COVID-19
has been a plan. We put a plan in place immediately to be able to
support businesses and people with immediate relief — a $5 billion
plan.
[10:25 a.m.]
We put in a safe restart plan so that people can have the
confidence to travel around the province and go back outside and
experience these tourism operators that the member is mentioning again.
You know, we created that safe restart plan. Everything we are doing
here in B.C. is working towards keeping people safe and towards economic
recovery.
You know, I’ve got a quote as well. It’s from a business in her
riding, actually. Richard Varela, the park director of Horne Lake Caves
Provincial Park in Parksville, has recently been accessing the tourism
support resiliency network that was created through funding from the
province. Richard says: “The biggest benefit of the Vancouver Island
coastal tourism resiliency program was having the assurance that I’m not
alone, that someone is listening and that someone has my
back.”
Member, we’re going to continue to work very closely with this
sector to work towards economic recovery together as we lay out our $1.5
billion recovery plan, and we’ll continue working with the sector hand
in hand as we move towards recovery.
D. Clovechok: WildPlay Element Parks typically employs around 270 people. Over a
72-hour period, they were reduced to five people. Even today this
business can only operate with a skeleton team of staff. Tom Benson, the
co-founder of WildPlay, as well as countless other struggling tourism
businesses, are asking this question: “Are we going to make it through
the storm?”
To the Tourism Minister, why are business owners like Tom having
to wait so long for the government to provide the much-needed
support?
Hon. L. Beare: Our government does have a plan. We have our provincially
coordinated approach to recovery, our $1.5 billion recovery plan that is
going to support economic resilience, business recovery. It’s going to
help people whose livelihoods have been impacted by the
pandemic.
I’m going to continue working closely with industry leaders as we
work towards recovery. We’re going to continue taking actions and
listening and addressing their needs, whether it be addressing the $10
million in community destination marketing that the sector was asking
for or accelerating disbursements to resort municipalities, whether it
be providing wholesale liquor pricing or increased access to patio
spaces.
We are listening to the sector, and we’re going to continue to
work closely with them and put their input into our provincially
coordinated economic recovery plan. I’ll continue to advocate for the
tourism sector as a part of that.
D. Clovechok: I’m sure Tom is going to find a lot of comfort in those words, but
I quote: “The only way we can prevent generations of lost economic
activity, jobs and tax revenues is by acting decisively now.” Those are
the words of Vivek Sharma, chairman of the Tourism Industry Association
of British Columbia.
Tourism operators across this province are desperate, and they are
sick and tired of this minister’s shallow talk and abysmal leadership.
They are demanding action.
To the minister, how many more businesses have to permanently
close before she does something to help them?
Hon. L. Beare: As I have said, our government has put plans in place. We put a
plan in place that addressed the health care crisis, a plan that
flattened the curve. Without that, we wouldn’t have the safe restart
plan that we have in our province, and we wouldn’t have the ability to
go and support those local tourism operators.
Everything we are doing in this pandemic is working closely with
the tourism sector. We’ve been able to provide a number of supports to
date. We know there is more work to do, and that’s why we’re working
very closely with the sector as part of our $1.5 billion economic
recovery plan. We’re getting that input from the sector as well as the
public, and we’ll continue working together with them towards
recovery.
MENTAL HEALTH SERVICES AND FUNDING
A. Olsen: In the last few years, there have been substantial mental health
funding commitments made by the provincial and federal governments,
including the creation of the B.C. Ministry of Mental Health and
Addictions, as mandated by the confidence and supply
agreement.
[10:30 a.m.]
Even still, in Canada, only 7 percent of the health care budget is
dedicated to mental and behavioural health. As a result, access to
comprehensive mental health care and addiction support often depends on
the size of your bank account. Data clearly shows that lack of access to
mental health care is most pronounced in those with lower incomes, fewer
years of education, minority groups and people with other
vulnerabilities.
Based on this year’s budget estimates, it appears the breakdown
seems to be that over $20 billion is being spent on the Ministry of
Health and $10 million for the Ministry of Mental Health.
My question is to the Minister of Finance. Does the minister have
a more detailed breakdown of the percentage of the B.C. health care
budget that is dedicated to mental and behavioural health care
delivery?
Hon. J. Darcy: We are working very hard to build a comprehensive system of mental
health and addictions care in the province. We certainly believe that we
need to get to a place where mental health is treated in the same way
that physical health is. We have not had a system that does that, and we
have a long way to go. But our government has been making some
significant investments.
We spend an average — and we canvassed this in estimates — of $2.5
billion a year on mental health and substance use care. Those are
figures from last year. In addition, we have committed $74 million to
new initiatives for child and youth mental health. That includes
expanding Foundry to 19 centres that we’ve committed to across the
province. There was $3 million budgeted for Foundry when we took office.
It will be $15 million this year, five times as much.
The member used the term that access to care should not depend “on
the size of your bank account.” He’s quoting very well from when I made
the announcement, a $10 million announcement last fall of significant
investments in mental health and addictions counselling — the most
significant investment in a decade.
We believe we needed to build access, strengthen access to
counselling on the ground by investing in community agencies, no-cost
and low-cost counselling, with those funds targeted specifically to the
most vulnerable people in the population. A third of those agencies that
received that funding were Indigenous organizations.
In addition to some of those things, we’re beginning to build
child and youth mental health teams in our school districts so that we
can start early and catch small problems before they become big ones —
in the Ministry of Education, $12 million invested in school-based
mental health programs. In the Ministry of Advanced Education, for the
first time ever, post-secondary-education students have access to 24-7
phone lines for access to mental health counselling.
We’re just getting started. We’ve got a long way to go. We had a
big mess to clean up, but we’re on the road. We’ve made some significant
progress to date, but we absolutely need to get to a place where we
reduce the stigma about mental health and addictions and where we treat
it with the equity with physical health that it deserves.
Mr. Speaker: The Leader of the Third Party on a supplemental.
A. Olsen: Thank you to the minister for her comprehensive
response.
For most British Columbians, our health care system does not
guarantee access to specialized, evidence-based mental health care
treatment. Consequently, our walk-in clinics and emergency rooms become
the de facto provider for people experiencing mental health challenges.
This, in turn, leads to individuals overusing the health care system
because their mental health needs are not being adequately
addressed.
Ineffectively treating mental illness costs our health care system
twice as much as providing appropriate care in the first place. As the
minister noted yesterday, four out of five people killed by an illicit
drug poisoning had previously been in contact with the health care
system, most likely with the primary care system. GPs are working
heroically to support people in crisis, but they’re inundated and in
need of additional specialized mental health resources.
Research shows that when patients are provided with brief
psychological assessment and targeted cognitive and behavioural
interventions, their conditions improve both mentally and
physically.
My question is again to the Minister of Mental Health and
Addictions. Does the minister agree that by providing a level of mental
can create better health outcomes and lower medical costs?
[10:35 a.m.]
Hon. J. Darcy: Thank you to the member for the question. I don’t think there is
any question that that is a goal that we share. It’s going to take us a
while to get there. We’re very proud in Canada to say that we have a
universal health care system, but the reality is that at a federal
level, mental health and substance use is not integrated into universal
medicare in the way that it should be.
We continue to press the federal government for further
investments, because it is absolutely the case that too often people
have to pay privately for access to care. They have to pay for
psychologists, to the tune of $150, $250 an hour. They have to pay
privately for access to addiction care. We are strengthening the public
parts of the system while we continue to press the federal government to
treat mental health and substance use truly as part of universal
medicare in this country.
I would also note that we are integrating mental health and
substance use into primary care. We’ve heard the Minister of Health
announce, in one community after another, new urgent and primary care
centres and new primary care networks, and we are integrating mental
health and substance use professionals into those teams. In Fraser
Northwest Division of Family Practice where I live, the first primary
care network that was announced, there’s a team of five mental health
and substance use professionals attached to that team.
We want to reduce the stigma. We want to expand access through the
public health care system. Do we have a ways to go? Yes, we do, because
this is an area that was ignored for 16 years. But we’re on the road —
much accomplished and more to do.
GOVERNMENT PLAN FOR
EDUCATION SYSTEM
REOPENING
J. Johal: Tomorrow is the deadline for the government’s fall education plan.
So far, the government has done all it can to make sure that parents
have no idea what to expect. On one day, the Minister of Education says
students can expect to be back in class full-time, and then the next day
the Premier says parents should have a plan B.
The question to the Premier: will he lay out a clear plan tomorrow
that doesn’t force parents to come up with their own alternative
plan?
Hon. R. Fleming: Thank you to the member for the question. We were one of the only
jurisdictions in North America to be able to reopen schools safely in
June. That is a testament to the teaching profession — support staff,
principals and vice-principals, parent organizations, First Nations,
everyone involved in the education system. What we will update the
public about tomorrow — and parents are eagerly awaiting this — is an
update to a plan that we developed and released on May 15. As you’ve
heard Dr. Bonnie Henry say on many occasions, we learned a lot from the
June restart. We learned how to do that safely.
We want to return to in-class instruction in British Columbia, and
we should. This jurisdiction is in the top percentage in the world that
have safely managed the pandemic. The social and emotional costs of a
long suspension of learning plays a heavy toll on families and children.
That’s what we will do. We will outline that safely tomorrow, and we
will do so on a collaborative model of having developed a safe plan to
return to schools in September.
The Premier commented, and rightly so, that we do not know where
this pandemic will go, in British Columbia or anywhere in the world, so
we have to have a nimble plan. I say this to the member. We have to have
a nimble plan that is regionally sensitive, perhaps, that follows the
health and scientific advice of Dr. Bonnie Henry.
We don’t know where we will be in the fall and winter if there is
a second wave in British Columbia. We have to have a plan that can move
forward, as we plan to do in September, and move back, if we need to, to
keep families, kids, teachers and support staff safe in our school
system.
Mr. Speaker: The member for Richmond-Queensborough on a
supplemental.
J. Johal: Parents want clarity. They’ve gotten clarity from governments in
Alberta…
Interjections.
Mr. Speaker: Members.
J. Johal: …Ontario, Quebec and Saskatchewan. I remind this minister that
when the opposition started pushing on this question, he said late July.
But prior to that, the announcement was going to be made in late August.
That’s what he said, and that’s what the ministry has been stating. This
plan is being made up as we go along.
Parents understand that there is more than one potential scenario
for September. But government has had months to plan for these scenarios
and give parents options, not to tell parents that they’re on their own.
Here’s what Julie, in the Premier’s own constituency, said: “I’m so
annoyed by this. No, Premier, you actually have to find a plan
B.”
Again to the Premier, who has been sowing confusion every time he
speaks, tomorrow can parents expect to be provided with clear rollout
options for what schools will look like in the fall?
[10:40 a.m.]
Hon. R. Fleming: I know the member opposite is familiar with the plan that we
rolled out in May. I believe he may have even returned his own children
to school in June. But 200,000 children did return to school in British
Columbia, and that has given us very, very valuable lessons about how to
have schools reopen safely, how to physically lay out space in schools.
We have had jurisdictions to the south of us, across the country, look
to British Columbia’s restart plan, which we developed in April and May
and returned to school in June. That will be updated and released to the
public tomorrow.
The member is incorrect. Ontario has not released a plan yet. They
are waiting for it. What Ontario does have, though, because they haven’t
followed the collaborative way forward that British Columbia has, is
they have lawsuits on their hands. I think the members opposite will be
well familiar with lawsuits between employee groups and the education
sector and the government. That is not a way forward. That is not a way
to give clarity to parents about their expectations. We are going to do
that.
We have worked with parents every step of the way. The B.C.
Confederation of Parent Advisory Councils supported our stage 3 plan in
June. They will support our plan moving forward. We will communicate
with parents and everybody that relies on the education system
effectively, and we will do so in a science-based way forward. That will
be done by Dr. Bonnie Henry, the Ministry of Education and the Ministry
of Health — under their leadership.
D. Davies: School is a little over a month away. Parents are worried and
concerned and need….
Interjections.
Mr. Speaker: Members. Members, the member for Peace River North has the floor.
Thank you very much.
D. Davies: School is a little over a month away, and parents are worried and,
rightly so, concerned and need plans. One parent, Danny, writes: “This
is infuriating to me. This is a total slap in the face to parents,
especially single parents. Putting this on parents is
ridiculous.”
That frustration and desire to know that everything is under
control is common from Fort St. John to Fernie to Fernwood. Families and
teachers are looking for guidance and support, not some flippant
remarks.
My question to the Premier: will he commit that tomorrow’s plan
will clearly lay out all of the options for this fall?
Hon. R. Fleming: Thank you to the member for the question. I understand that
everybody in British Columbia, in every walk of life and relying on any
public service in British Columbia wants certainty in these uncertain
times. That is why our school system responded so well, in a
collaborative way, to be able to do what no other jurisdiction in North
America was able to do, which was to reopen schools safely.
We did that working with parent organizations. We did that working
with front-line teachers, support staff, principals, vice-principals,
superintendents, First Nations and education officials. We did that in
British Columbia.
As you have heard, and as the member has heard Dr. Bonnie Henry
say, there were very valuable lessons in that restart that will serve us
well for a strong start in September. Those details will be available
tomorrow. It’s an update of our May 15 plan.
The member is welcome to have a briefing. I want to offer him as
much information as possible. We offered him a briefing on June 11. We
offered him a briefing again on June 18. We didn’t get a reply. He wrote
a letter to me, I understand, on July 6. My office is 100 yards from
his. It was never delivered to my office, but I did find the letter on
Twitter, so I thank him very much for that.
If he wants to have specific information and a detailed briefing,
because…. As we work with everybody in the K-to-12 education sector, it
includes him. We’ve invited him. He can take up the offer for the
provincial health office if he doesn’t want a briefing from my office,
the B.C. Centre for Disease Control. But we want to move forward and
give accurate information in a pandemic. There are no political margins
here. There should be no….
I’m not going to tell the opposition how to do their job, but I
would suggest that trying to score political points at a time when fear
and anxiety are at a heightened stage, not just in British Columbia but
around the world…
Interjections.
Mr. Speaker: Members.
Hon. R. Fleming: …is probably a bad political strategy.
[10:45 a.m.]
Mr. Speaker: The member for Peace River North on a supplemental.
D. Davies: You know, speaking of broken promises, the minister did promise
weekly updates on April 9. I only did receive a few phone calls. Anyway,
I’m not going to go on there.
You’re right, though. We did learn a lot from June, and the BCTF
actually also learned a lot. They actually found that only half of the
teachers felt safe during the Premier’s trial run earlier. A lot of it
Parents want to know that their kids are going to be safe. They
also want to know that teachers and staff are going to be safe at the
school.
Another simple question to the Premier or possibly the minister:
will he be dumping all of these extra costs on local school districts
and teachers, or will he show some leadership and provide the funding
for PPE this fall?
Hon. R. Fleming: As I’ve said in previous answers, we have involved the B.C.
Teachers Federation at the highest level of developing the health and
safety protocols that will guide a safe restart to schools. That was
done in May. We reopened schools in June. There was a lot of fear and
anxiety from teachers. Ninety-one percent of professional teachers in
British Columbia returned to the classroom in June. We made
accommodations for additional ones.
We are working with the B.C. Teachers Federation today. They are
on our steering committees and working groups to develop all the
protocols that will be related to the safe reopening of schools. I am in
regular communication with the B.C. Teachers Federation, including, just
yesterday, meeting with their executive again.
What I can say is that we have worked collaboratively with the
B.C. Teachers Federation. It’s refreshing to even hear the opposition
quote the BCTF, I think, outside of a court filing, if I may say. But
the difference is working with them. That’s what makes a safe reopening
of schools possible. It’s why we had a safe reopening in
June.
It’s why Dr. Bonnie Henry has been profiled around the world, in
part because she was able to reopen schools in British Columbia, which
is, in this corner of North America, the only place that was able to do
so in June. That is our plan, moving forward. It’s to update those
health and safety protocols and to safely have a restart with kids back
in school for in-class instruction in September.
GOVERNMENT PLAN FOR
EDUCATION SYSTEM REOPENING
AND
CHILD CARE AVAILABILITY
J. Tegart: Parents are not only anxious about the return to school. They are
also worried about what child care will look like for September. What
happens when they need to return to work but are only allowed to send
their kids to school on a part-time basis? Parents want to know if an
actual plan exists for kids who may only get hybrid schooling this fall
and need child care.
To the Minister of State for Child Care, can she tell parents if
there will be enough child care spaces made available for when their
kids are not in a classroom?
Hon. K. Chen: We have been working hard with the sector — with child care
providers, with parents — to ensure that child care can safely operate.
Also, thanks to our public health and Dr. Henry and her team, we have
ensured child care can safely operate — and they have been — during this
pandemic.
We do know that there are going to be more parents returning to
work. Also, we are seeing more child care because of the support from
our temporary emergency funding. That has supported over 4,500 child
care centres to stay open and, with a lot of spaces available, being
able to serve essential services workers and other parents returning to
work.
We are seeing more centres opening, and we’re expecting more
centres opening. We are currently seeing a preliminary number of about
over 85 percent of child care centres that are open and receiving our
temporary emergency funding, and we’ll continue to monitor
that.
We do need to remember that the child care sector was neglected
for many, many years. We have been working hard since 2017 to make sure
we have a Childcare B.C. plan to support and accelerate the creation of
spaces, to support the workforce and, at the same time, support
affordability.
Mr. Speaker: The member for Fraser-Nicola on a supplemental.
J. Tegart: Parents are unsure what days their kids will be in class, and they
don’t know how they’re going to find a child care space or before- and
after-school care.
Families are desperate for safe and available child care
spaces.They want to know this minister has a comprehensive contingency
plan in place, or is she, like the Premier, telling parents they’re on
their own?
To the minister: what is your plan?
[10:50 a.m.]
Hon. K. Chen: Well, it is very encouraging to hear the member opposite talking
about child care. But let’s remember the child care crisis has existed
for many, many years. We have been working really hard since 2018 to
accelerate the creation of spaces, to support the workforce and to also
support parents with their child care needs.
We have been planning since day one of this pandemic. We have been
supporting child care providers to continue to maintain their spaces
through operating grants and through temporary emergency funding, which
has really supported a lot of providers to serve essential service
workers on the front line, and then with more parents returning to work
right now. We’ll continue to monitor the situation.
We also have an online matching program that has been so
successful. It has matched a lot of front-line workers and, also, now
more parents returning to work, to make sure they can find child care
near their home or near their workplace.
We’ll continue to work with the Ministry of Education, and thanks
to a lot of school districts that have stepped up to support parents’
needs for before- and after-school care, which has worked really well
during the pandemic.
We’ll monitor the situation. We’ll work with parents, and we do
encourage parents to look online and look for information about public
health and safety and also our matching system.
As a mother with a young child, I know how parents have struggled
with child care in this province for many years, and we’re committed to
continuing to provide that support.
S. Bond: It’s time this minister did something other than monitor. It is
time for action.
Working parents — mothers, in particular — are facing the prospect
of not being able to go back to work because they can’t find child care.
We know that women have already been especially hard hit by the economic
impacts of COVID-19. The unemployment rate for women in B.C. is up from
4.7 percent in January to 13.4 percent in June.
While the Premier seems to think it’s up to parents to have a plan
B, it is this minister’s job to stop monitoring and ensure that families
have the child care support they require.
A very simple question to the Minister of State for Child Care.
It’s her job. It’s not up to parents alone, as the Premier suggested.
What is her plan for a part-time return to school in
September?
Hon. K. Chen: We have been working hard, as I mentioned to the member
opposite.
The child care crisis has been there for years, with parents not
being able to find the services they need. As a mother with a young
child, I know how that feels, when you’re unable to find child care
services. I continue to know how that feels when I’m trying to find
before- and after-school care and summer break care for my
son.
We have been working closely with the sector. We have been
providing the temporary emergency funding to support the operation of
child care centres, and we’re very thankful to see early childhood
educators who are working on the front line and making sure those child
care spaces can come back in service. We’re currently looking at over 85
percent of the centres receiving our emergency funding that are opening
to parents, and we’re expecting that there will be more spaces opening
for parents.
Again, we would encourage parents to look for our online matching
services that have successfully matched a lot of front-line workers,
especially the health care workers, and a lot of parents who need to
return to work, to be able to find child care services.
I just want to end with a quick quote that we received from a
child care owner who’s talked about how our government’s
action…
Interjections.
Mr. Speaker: Members.
Hon. K. Chen: …opened plans that have supported parents’ needs for child
care.
[End of question period.]
Petitions
T. Stone: Along with the member for Kamloops–North Thompson, I would like to
present a petition signed by over 6,300 people, organized by Elisha Hamilton
of Kamloops, calling for the expansion of Car 40, a mental health crisis
service that pairs a mental health practitioner with an RCMP officer as they
respond to calls involving mental health situations.
Recognizing that mental health crises don’t just happen Monday to
Friday between 8 a.m. and 4 p.m., the petitioners are calling for a second
shift to be added on weekends and evenings.
Reports from Committees
PUBLIC ACCOUNTS COMMITTEE
S. Bond: I have the honour to present the first report of the Select
Standing Committee on Public Accounts for the fifth session of the 41st
parliament titled
Summary of Activities 2019-20 .
I move that the report be taken as read and received.
Motion approved.
[10:55 a.m.]
S. Bond: I seek the leave of the House to move a motion to adopt the
report.
Leave granted.
S. Bond: In moving adoption of the report, I’d like to make some very brief
comments.
The report details the accomplishments of the hard-working Select
Standing Committee on Public Accounts in 2019-2020. The committee
examined 16 reports from the Auditor General, covering the effectiveness
of government’s financial statements as well as important programs like
emergency health services, the safety of our drinking water and services
for children and youth in care.
On behalf of all committee members, I want to thank Russ Jones for
his steadfast leadership as our acting Auditor General. He’s been acting
since January.
I would also like to extend a warm welcome to Michael Pickup, who
started his new role as B.C.’s Auditor General yesterday.
Of course, we need to thank the Clerk of Committees, Kate
Ryan-Lloyd, and her incredible team for the work she does to support the
committee. I want to make particular note of Ron Wall, who has done a
fantastic job on our behalf. We also need to express our gratitude to
the comptroller general and all of the senior public servants who
appeared before the committee to ensure that government’s programs meet
the highest standards.
Lastly, I want to thank the dedication and collaborative approach
that all committee members bring to the table, especially the Deputy
Chair, the member for Esquimalt-Metchosin. Together we have worked hard.
We play an important role in promoting accountability in government
spending and program administration.
M. Dean: I also would like to just say a few thank-yous, starting with a
thank-you to Russ Jones and all of the team at the Office of the Auditor
General and, of course, welcoming now Michael Pickup, the new Auditor
General. I think he will see, especially from this report as well as
past reports, that we do a lot of work in the Public Accounts
Committee.
I want to say a special thank-you to all of the members of the
committee who worked so diligently, and special recognition for our
Chair, who leads us so well and also shows so much respect for the
professionalism of everybody who takes
part in the committee discussion
and debate as well. Appreciation for the public service, for all of
their work every day, not just in coming and presenting to the committee
but the daily work of keeping good, quality government services going,
and, of course, the work of the comptroller general.
Finally, I’d like to end with special thanks to the Clerk’s
office. I think the Public Accounts Committee was the first B.C. Leg
committee to do a virtual meeting. I know it took a lot of work for us
to be able to pivot so quickly. Of course, that’s so much work going on
behind the scenes with Hansard and everybody down at the
assembly.
Again, thank you everybody for all of the hard work in making sure
that we’re continuing to improve services for British
Columbians.
Mr. Speaker: The question is the adoption of the report.
Motion approved.
Orders of the Day
Hon. M. Farnworth: I call third reading, Bill 4, Budget Measures Implementation
Act.
Hon. Speaker, I have been informed that we will have to deal with that one
later this afternoon. I will, in that case, call third reading of Bill 24,
Municipalities Enabling and Validating (No. 4) Amendment Act.
Third Reading of Bills
BILL 24 — MUNICIPALITIES ENABLING
AND VALIDATING
(N o . 4)
AMENDMENT ACT,
Bill 24, Bill 24, Municipalities Enabling and Validating (No.4)
Amendment Act, 2020, read a third time and passed.
[11:00 a.m.]
Hon. M. Farnworth: I call committee stage, Bill 18, Economic Stabilization (COVID-19)
Act.
Committee of the Whole House
BILL 18 — ECONOMIC STABILIZATION
(COVID-19)
ACT
The House in Committee of the Whole (Section
B) on Bill 18;
R. Chouhan in the chair.
The committee met at 11:03 a.m.
section 1.
The Chair: Minister of Finance, do you have any opening comments?
No.
Prince George–Valemount has a question.
S. Bond: All right. Well, why don’t we begin with whether or not the
minister can confirm that all of the taxes deferred will become due at
once? We know that has been a very, very significant issue for small
businesses across the province, so that is going to be absolutely
essential, as we look at this issue. Could the minister confirm that all
taxes deferred will become due at once?
[11:05 a.m.]
The Chair: Minister.
Hon. C. James: Thank you very much, Chair. Welcome to the debate, committee stage
on Bill 18.
The member is quite right. September 30 is the date that has been
set for the taxes, both remittance and the consumption tax and the
employers health tax.
Just a little bit of context, which I think is important. The
remittances: that piece is really relief for administration, for
businesses. Those are taxes that businesses submit that they have
collected from others. Those are put aside. As a business, they are not
allowed to spend…. This isn’t a cash flow issue. When it comes to the
remittances, those are, in fact, taxes collected from other bodies that
are then given to government. But we recognize that, obviously, when
businesses were closed, it would be very difficult for businesses to do
their regular reporting time period, which is why we’ve delayed those to
September 30. That’s one group.
Then, as the member will know, consumption tax — the EHT tax, for
example: those payments have been delayed to September 30 as
well.
I think, as I’ve mentioned in this House and other places, all of
those are under consideration now as part of the recovery plan. Many
businesses have come forward with ideas and options for looking at
things. We’re starting to see the federal government make their
decisions as well. We recognize that those decisions need to be made,
and we’ll be making those in the next while.
S. Cadieux: Has the minister explored payment plans? I think there is some
expectation amongst the business community, certainly, that not all
businesses will be able to make the time frames that have been laid out.
So has the minister explored payment plans for businesses for these
deferred taxes?
Hon. C. James: Yes, all options and ideas are being explored. That certainly has
been one of the approaches and suggestions that have come forward around
payments and looking at when payments are due and whether those payments
could be adjusted to be able to support cash flow as well. All ideas are
on the table currently.
S. Cadieux: When will the minister expect she will be letting businesses know
about what her ultimate decision is? They have a lot of decisions to
make going into the fall. A lot of businesses are sitting at the brink
of bankruptcy and are having to make a lot of decisions about whether or
not they’re going to be able to continue business in the fall. Knowing
what their anticipated expenditures are and cash flow plan is for the
fall will be really important for them in order to make some pretty
significant decisions. When does the minister think she will have an
answer for businesses?
Hon. C. James: I don’t have a specific timeline or date to give the member. We’re
in those discussions with businesses right now. We certainly recognize
the pressures that they’re facing. As I mentioned, there are two
different kinds of pressures. One isn’t actually a cash flow issue at
all, because it’s remittances and they can’t, in fact, spend those
dollars. Those have to be remitted, because they’re collected from other
parties. But certainly, on the employers health tax, we recognize that
there are pressures on the businesses and recommendations businesses are
making. We’re in that process now.
S. Cadieux: If the minister decides to, indeed, provide some flexibility on
the repayment dates, does the minister plan to attach interest to those
repayments?
Hon. C. James: None of those decisions have been made yet. Obviously, everything
is under consideration, and many ideas have come forward.
[11:10 a.m.]
S. Cadieux: Given that a lot of decisions seem to be still up in the air….
Certainly, as we heard yesterday from the minister, she was very
reticent to provide any clarity as to where revenues are sitting, where
anticipated revenues and deficits are, because, of course, they are, as
we’ve fully acknowledged, uncertain and likely to change. Clearly, some
of that thinking has got to include the reality that there are going to
be business failures.
For the minister, has the ministry allowed for the reality that
some deferred payments may not be realized due to bankruptcies, and on
what proportions has the ministry based the bankruptcy rate?
Hon. C. James: First, I just want to recognize again that we, in fact, put out a
July economic scenario, not a full economic statement, because of the
uncertainty. That’s, in fact, why we’re talking about these kinds of
numbers, because we did, in fact, put out an economic scenario in July,
with the best information that was available at the time. So I think
that’s important to note.
The member asked about bankruptcies or whether any of that had
been built in or has been built in. We built in growth projections.
Obviously, with GDP growth, it’s too early yet, at this stage, to look
at those kinds of numbers. That data will come in. We have the first
quarterly report coming in September.
We did, though, build in to the scenario that came out in July a
drop in non-residential property tax, presuming that there will be some
businesses that will not be able to pay their property tax. So we have a
drop of about $30 million in the scenario that came forward in July,
which is about 2 percent of the taxes collected.
[11:15 a.m.]
S. Furstenau: Just to be clear, we’re in
part 1,
section 1. This is speaking
about a number of due dates for taxes. Recognizing the very challenging
situations that we’re in across the province in so many ways, my one
question is related to the carbon tax, which was set for a $5 increase
April 1, which did not happen.
Recognizing that it is vitally important for us to set a direction
for the economy as we recover from COVID-19…. Overwhelmingly, people are
recognizing that the other crisis that we have happening concurrently
with COVID-19 is the climate crisis. If we want to clearly identify
where we want our economy to go, the carbon tax plays an important role
in that.
Could the minister give us some indication of her plan on the
carbon tax and when the set increases will continue to
happen?
Hon. C. James: Thank you for the question. Certainly, we agree that it’s
important to make sure that as we address the challenges with COVID, we
also continue — it’s part of our economic recovery plan, in fact — our
commitment to climate action, to making sure that we’re moving ahead
with CleanBC. That is one of the values of our recovery plan that gets
measured.
As I mentioned, with the other taxes that we’ve either delayed or
deferred to September 30, the carbon tax increase was one of those as
well. We’re working through that process now around whether adjustments
are needed in any of the dates, so those decisions have not been made
yet.
Section 1 approved.
section 2.
S. Bond: We are moving on now to the carbon tax section. I think that the
minister is getting a sense of the concerns that we have as opposition.
These are extraordinarily difficult times for businesses.
Looking at reinstating the carbon tax and looking at a deferral,
it is certainly different than some of the suggestions that we’ve
provided related to relieving some of the tax burden. Those are going to
be important issues. We’re going to see, as my colleague pointed out, a
significant number of businesses that simply will not
survive.
Let’s talk a little bit about the carbon tax. Can the minister
tell us how much carbon tax revenue was deferred during
COVID?
[11:20 a.m.]
Hon. C. James: The updated number for the carbon tax revenue, coming in, in the
July statement — that was the updated number from the budget; I’ll use
the most updated in the scenario — was $1.6 billion for the year, as
dollars coming in on the carbon tax revenue. So if we just calculated
that over the half a year, up to $800 million, then, could be deferred.
That would be the potential for the amount of money that could be
deferred if you were looking at the half a year just to September
Right now we’ve had about 54 percent of people still filing their
returns — some with nil, because obviously, there are businesses that
were not open. It doesn’t mean that 54 percent have paid their
remittances at this stage, but 54 percent have filed returns. We’ll have
a better sense, again, over the next couple of months, of those dollars.
Then, obviously, a decision will need to be made on the revenue as
well.
I’ll stop there and see if the member has further
questions.
[11:25 a.m.]
S. Bond: Can the minister then…? She described that 54 percent of people,
while they may not have remitted financially, have basically responded.
How many businesses does that reflect? Can we tell, at this point, how
many businesses have actually deferred their carbon tax?
Hon. C. James: Just another piece of data for the member. I mentioned that 54
percent have filed returns; not all of them have paid.
In the numbers that we’re gathering right now, it looks like about
33 percent of that 54 percent have paid, out of that portion. We don’t
have a breakdown — I can get that number to the member — with us, around
the number of businesses that that calculates to, because some
businesses do monthly returns, some do quarterly returns, and some may
do more than one return, depending on their business. That’s a deeper
calculation, but we’re happy to get it to the member.
S. Bond: Thank you very much to the minister. I know that as we work our
way through these questions, one of the challenges…. Certainly, it’s not
as challenging for us as the challenges the minister is facing. We know
the total value of deferrals, and the minister presented that in her
update. What we don’t have is the specific tax-by-tax breakdown of what
has been deferred. Our overarching concern, obviously, is that a
deferral is still going to be very challenging for many businesses
across the province.
[11:30 a.m.]
Perhaps the minister could just walk through, then, what process
she will use, as she considers what the new carbon tax revenue amount
will be.
We now know that 33 percent of 50-plus percent have filed. Some of
those have paid, and others haven’t, in that percentage. Could she just
walk us through how she will use the numbers that she shared with us
today to estimate new revenue for the carbon tax? If she can give us a
sense of how these numbers are going to be used to estimate a new
revenue number…?
Hon. C. James: There’s no question these are unprecedented times. I use that
often. I’m sure we’ve all used that often in the challenges that we’re
facing.
I think perhaps the best way to describe it is…. Look at what
happens normally in a normal budget year. When we’re going through the
budget, we would table the budget, and then estimations would be
reassessed as we go into Q1 and as we go into Q2, etc.
That same process occurs. That same process occurred in building
the scenario for the carbon tax. We would certainly look at year-to-date
data and then, obviously, look at economic forecast. If you see
slowdowns in the economy, that obviously has an impact on carbon tax
revenue.
For September, for Q1 and probably, I would expect, for the next
while over this next year, we’ll be relying, more likely, more on the
economic forecast, because year-to-date numbers are not going to be as
certain, because of the uncertainties going on in the economy. We’ll be
looking at all this data. We’ll be looking at the deferrals. We’ll be
looking at the information that’s there.
Obviously, the uncertainty has an impact, and therefore, the
economic forecasting will be more critical when it comes to looking at
any changes around the carbon tax revenue.
S. Bond: Thank you to the minister for the answer. I certainly can
recognize the uncertainty, and we know that businesses and families are
feeling that every single day.
This is not an easy question, but it’s important to ask. I’m
wondering if the minister and the ministry are monitoring things like
the rate of bankruptcy — specific businesses that have already said:
“Okay, we cannot do this any more.” So looking at the number of
bankruptcies and then assessing things like the amount of the deferred
carbon tax, for example, in that particular situation, in order to start
getting a more realistic picture of the loss of revenue.
It is substantive. When we think about that, it’s over $6 billion
that have been deferred. We’re not sure how much is going to be paid
back. We’re not sure who can pay it back or when.
Does the minister have any sense of monitoring bankruptcies and
then looking at deferred carbon tax payments that would be associated
with those bankruptcies?
[11:35 a.m.]
Hon. C. James: We have staff working hard, as always, in the Ministry of Finance.
So the number the member asked for earlier, around how many — the
percentage — businesses may have paid the carbon tax, is about 18
percent of businesses that we expect. There may be new businesses,
obviously, that come online or other businesses, but 18 percent of
businesses that we would expect to pay have paid. That’s the number from
previously.
[11:40 a.m.]
Then the member was asking about bankruptcy. Certainly, StatsCan
provides data on bankruptcies. That’s certainly part of…. When we look
at a broad assessment of the economy and what’s going on in the economy,
that’s certainly information that we take into account.
There’s not current updated information for the July economic
scenario that we put out. That wasn’t information, again. If you look at
the timing of COVID, you’re really looking at March, April. Probably
many of those decisions wouldn’t have come until May and June. We’ll
hopefully have that updated information as well.
And yes, we certainly assess the deferrals as well.
S. Bond: Thank you to the minister.
I wonder, then, as I wrap up my questions — there may be others —
on the carbon tax piece, if the minister could just summarize for me her
anticipation of what the new revenue number is for the carbon tax. I
know that, as I said, obviously in the update there was a number, but it
wasn’t broken down tax by tax. So if she could give us what her best
assessment is, at this point, of the new revenue for the carbon tax,
that would be appreciated.
Perhaps I’ll just foreshadow for the minister, because I know that
shortly we’ll be taking a bit of a break. It’ll be a similar series of
questions related to each of the taxes: motor fuel, sales tax and
tobacco tax. Basically, it’s that pattern of questions around how much
was deferred, how many businesses have deferred and what the new revenue
number might be.
We can take those
section by section. But I thought that rather
than ask them and then have the minister have to wait for that, we could
work our way through those.
That’s my final question on the carbon tax: what would her
anticipated new revenue number be for the carbon tax at this point,
knowing that there’s a lot of uncertainty? And then just a bit of
foreshadowing about the questions I would be asking about sections 3, 4
and 5.
Hon. C. James: Thank you to the member for the direction that we’ll come back to
around the other taxes.
Just to fill in on the carbon tax, that’s the number that I
presented earlier, which is the $1.6 billion. That’s the most recent
estimate that we have around carbon tax. That was the update that we
provided in the July scenario.
I know people get tired of me saying this, but I think it’s
important just to recognize that it is a scenario, as the member will
know. Those scenarios will change depending on our economic growth, on
the restart, on where things are going, on collections and people who
are sending in their payments as well. So again, Q1 will be our next run
at that, the next look at estimating. That will give us a good sense,
again, of where we’re heading. But $1.6 billion is the most recent
number we have for the carbon tax.
Section 2 approved.
section 3.
[11:45 a.m.]
S. Bond: To the minister, I’m sure she’s heard it, too, but we’ve heard
from some industries, obviously, such as the mining industry, that
despite the decision of the government to defer the motor fuel tax, they
were still required to pay to fuel suppliers under the law. In essence,
this had the effect of allowing suppliers like Suncor to defer payment,
but not end-users.
Can the minister just speak to that for us? Did she consider that
fair, or in fact, was it even an intended consequence or effect? Perhaps
she can give us a bit of clarity around that particular
situation.
Hon. C. James: This speaks to, as I was talking earlier about, the difference
between the deferrals and the taxes. People are paying the taxes versus
the deferrals. If I look at the motor fuel tax, for example, this piece
and some of the other deferrals weren’t designed to have people deal
with the cash flow pressures that they were facing. There were other
pieces like the employer health tax that we’ve talked about, the school
tax portion of the property tax. Those were cash flow supports to
businesses.
These pieces were designed to address the administrative burden.
These are taxes that are collected from other parties, other people,
that the business holds onto and then remits to government. So we
recognize that there may be many businesses that were closed, that
didn’t have admin staff in place or didn’t have their business
structures in place to be able to remit those dollars. So those are not
dollars that are the businesses’ dollars. They’re dollars that get
remitted through to government.
That’s the difference between the cash flow supports that were put
in place and the deferrals. People are continuing to pay the motor fuel
tax. They’re continuing to pay it to the business. The businesses are
just not required yet to remit those dollars. But those are dollars that
they are required, eventually, to remit to government, because they’re
not their dollars; they’re dollars they’re collecting from other parties
on behalf of government.
S. Bond: I appreciate that clarity, because it was an issue that we had
raised. I think it’s just industries and companies struggling to try to
find ways to literally continue to operate.
Again to the minister, perhaps in the hopes of finishing this
section before we break, the pattern of questions: how much motor fuel
tax was deferred during COVID? Perhaps she has similar percentage
numbers that we could take a look at — and, again, just confirming for
us what the new revenue target is for the motor fuel tax.
[11:50 a.m.]
Hon. C. James: We’ll get the number for the member. We’re looking at the July
scenario and making sure we divide out the motor fuel tax. I’ll get that
for the member, if that’s okay, when we come back.
Just on the percentages, we could see $400 million to $500 million
deferred when it comes to motor fuel tax. That’s the amount that we
could see deferred. We had $1 billion as motor fuel tax in the budget in
February. So that’s the amount you could see deferred. But again, I’ll
make sure we’ve got the updated numbers around the breakdown for the
July scenario for the member when we come back as well, if that
works.
I’m getting a nod from the Speaker. Do you want me to rise and
report?
The Chair: Let’s pass
section 3.
Hon. C. James: Okay — fantastic.
Section 3 approved.
Hon. C. James: I move that the committee rise, report progress and ask leave to
sit again.
Motion approved.
The committee rose at 11:53 a.m.
The House resumed; Mr. Speaker in the chair.
Committee of the Whole (Section B), having reported progress, was
granted leave to sit again.
Hon. C. James moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 this afternoon.
The House adjourned at 11:54 a.m.
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