British Columbia Hansard — Monday, August 10, 2020 a.m. — Number 352 (HTML) (41st Parliament, 5th Session)
20200810am-House-Blues
British Columbia — Debates (Hansard)
Fifth Session, 41st Parliament
(2020) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Monday, August 10, 2020
Morning Sitting
Issue No. 352
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day
Private Members’ Statements
Money laundering
B. D’Eith
M. Lee
Clean energy
E. Ross
D. Routley
Innovation to address climate change
R. Glumac
P. Milobar
Economic plan for B.C.
J. Martin
R. Kahlon
Private Members’ Motions
Motion 10 — Equitable economy
R. Singh
M. Hunt
J. Brar
T. Redies
J. Routledge
M. Bernier
J. Rice
G. Kyllo
J. Sims
S. Cadieux
M. Dean
MONDAY, AUGUST 10, 2020
The House met at 10:05 a.m.
[Mr. Speaker in the chair.]
Routine Business
Prayers and reflections: D. Davies.
[R. Chouhan in the chair.]
Orders of the Day
Private Members’ Statements
MONEY LAUNDERING
B. D’Eith: For far too long, national and transnational criminal
organizations have had a foothold in our province, using money
laundering as a vehicle to access their ill-gotten gains. When the
government took office in 2017, it immediately dug into this issue. I
was shocked to learn about the massive scale and extent of the problem.
It’s estimated that $7 billion in dirty money was laundered in British
Columbia in 2018, and between $800 million and $5.3 billion of that was
laundered through the real estate market.
Now, there have been a number of reports commissioned. There are
three, two of which were carried out by Dr. Peter German. In June 2018,
the government accepted, in principle, all 48 of Dr. German’s
recommendations outlined in his first report, Dirty Money ,
which are being reviewed and actioned by the government in coordination
with the B.C. Lottery Corp.
As of June 30, 2020, a total of 33, or 69 percent, of the 48
recommendations has been addressed. Nine, or 19 percent, of these
recommendations must be addressed through legislation. An analysis of
the remaining recommendations is ongoing.
The 33 fully addressed recommendations are in addition to the two
interim recommendations that Dr. German provided in December of 2017,
which have been fully implemented, one of which resulted in a
significant drop in the number of suspicious transactions reported. The
overall value of those suspicious transactions was down.
Government efforts remain focused on working on legislation to
create the new independent gaming control office, a standards-based
model and a review of the roles and responsibilities of the regulator
and the BCLC. All other recommendations are being analyzed in a broader
context of a provincial response to money laundering across all
sectors.
Significant progress is being made on these issues. Between July
2015 and March 2020 — of course, casinos were closed due to COVID-19 —
there has been a reduction in the number of suspicious transaction
reports filed by the BCLC from a high of 187 in July 2015 to 25 in March
2020, representing a decline of 87 percent, and the value of suspicious
transactions from $27.2 million to $237,783, a decline of 99
percent.
Of course, there’s a lot of work that has to be done with the
federal government, and the government continues to call on the federal
government to coordinate a strong response. In ongoing discussions with
our federal partners, the government is advocating for amendments to the
Proceeds of Crime (Money Laundering) and Terrorist Financing Act — it’s
a mouthful; it’s to expand the numbers and types of entities that need
to report to the financial tracking and reporting and analysis centre,
well known as FINTRAC — and for increasing funding, expertise and
coordination in the areas of investigation and enforcement of financial
crimes.
[10:10 a.m.]
Of course, we all know that money laundering is not a victimless
crime. It has driven up housing costs as much as 5 percent and has hurt
hard-working B.C. families who are being pushed out of their
communities. A vast majority of British Columbians work hard, they play
by the rules, yet the dream of home ownership is still far out of reach
for far too many in this province.
In one year since the introduction of the 30-point housing plan,
government has taken the following actions to address tax fraud and
close loopholes in the real estate market:
(1) introduced legislation to establish Canada’s first public
registry of beneficial owners to put an end to the hidden ownership of
real estate in British Columbia;
(2) established Canada’s first online register for presale condo
sales to track assignments;
(3) updated the property transfer tax return to uncover beneficial
owners behind corporate trusts;
(4) enacted legislation to allow information-sharing on the
homeowner grant with federal tax officials to improve tax
enforcement;
(5) strengthened the property transfer tax auditor’s ability to
take action on tax evasion;
(6) implemented the speculation and vacancy tax which targets
foreign ownership and satellite families who own real estate in the
province, who pay little or no tax; and, of course,
(7) established a federal-provincial working group on tax fraud
and money laundering.
Now, of course, the problem is also linked to the distribution of
fentanyl and the overdose crisis, which has tragically taken the lives
of so many people in our province. From January to August, 2017,
fentanyl was detected in approximately 81 percent of illegal drug
overdoses. These deaths are mothers, fathers, sons, daughters, siblings,
partners and friends that will never come back. While the government
continues to combat this overdose crisis from a medical and a social
point of view, it’s crucial that we put a stop to the flow of dirty
money in our province.
In May of 2019, the government announced a public inquiry into
money laundering in British Columbia so that British Columbians can get
the answers they deserve. The commission, headed by B.C. Supreme Court
Justice Austin Cullen, is examining the extent, growth, evolution and
methods of money laundering across several sectors of our economy,
including real estate, gambling, financial institutions and corporate
and professional sectors. It will also examine regulatory authorities
and barriers to effective law enforcement of money laundering. The
commission has actively been engaging with participants, witnesses,
subject-matter experts and the public and has actually been able to
pivot during COVID-19.
We believe it’s critical to restore British Columbia’s reputation
and to ensure that B.C. is never again considered a safe haven for
laundering of proceeds of crime. Wealthy criminals and those attempting
to evade taxes have had the run of our province for far too long, and
this problem has been able to fester. But as they say, sunlight is the
best disinfectant, and by bringing this problem to light and launching
an independent inquiry, we’re committing to stamping out this practice
in our province.
The government is closing loopholes and enforcing improved laws to
ensure British Columbians who actually play by the rules are rewarded
and those who break the law face the appropriate consequences. To quote
the May 2019 report, Combatting Money Laundering in B.C. Real
Estate : “A society without the underpinning of the rule of law
is a very precarious society.” We’re not close to this reality in
British Columbia and Canada, but precautionary tales from other
countries teach us that we should not take the rule of law and democracy
that we have for granted.
M. Lee: This issue has certainly been a point of much discussion in recent
years. The government has called a public inquiry and has been underway
for some time. That is the place for this issue, without the type of
interference in the manner just expressed. I do have some questions
about why it has been chosen as a topic of discussion on this last
Monday morning of the special legislative session. I have questions
mainly because, more than any other issue, what is on the minds of
British Columbians today is the challenge we all face with
recovery.
How do we respond and recover from a global pandemic that has
changed so much of our daily lives in just a few months? How do we make
sure our families and communities are healthy, our economy rebounds and
our children can continue their education safely? These are just some of
the questions that weigh heavily on the minds of British Columbians and
for which we need answers now.
This province needs to get our economy back on track. We have seen
the collective progress made to date with public health efforts in the
fight against COVID-19 here in B.C. We need to continue to remain ever
vigilant, particularly in view of the recent spike of COVID-19
cases.
[10:15 a.m.]
We know that health measures are important to ensuring a strong
economy. However, they alone cannot drive economic growth. We need to
see this current government take real strides to grow our economy once
again with new jobs. Unfortunately, this has not been the case. We have
yet to see a true comprehensive economic recovery or jobs plan from this
government, even though we are more than five months into this crisis.
We are seeing the consequences of the lack of a plan. The unemployment
rate in B.C. for July is 11.1 percent. With this rate, B.C. is now sixth
in Canada, falling from first place before the current government came
into office three years ago.
We have been particularly hard hit by COVID-19, as unemployment in
B.C. increased by more than 135 percent since January, compared to the
rest of Canada where it has only increased by 88 percent. Youth
unemployment in B.C. is up 230 percent since January, nearly twice the
amount as the rest of Canada, which is up 119 percent over the same
period. Thousands of businesses have had to close down. Tourism is
struggling. Even before the pandemic, we lost over 30,000 jobs in the
eight months prior to the outbreak, largely in the resource
sector.
While everyone has felt their lives shift because of COVID-19,
there are also so many other pressing challenges in our province that
need to be addressed quickly.
Thousands of British Columbians are struggling with skyrocketing
strata insurance premiums, with the disproportionate impact on seniors
and those on fixed incomes. They’re seeing their deductibles and
premiums increase, sometimes by more than 800 percent. The government’s
recently introduced legislation involves more consultations and delayed
action and does not provide the immediate relief that is needed now to
help condo and townhome owners across our province.
Additionally, we are continuing to face another crisis in mental
health and addictions, with both the opioid crisis and the COVID-19
pandemic. We are seeing profound and growing need for mental health and
addictions support. Supportive housing projects in communities
throughout British Columbia are failing because the supports that are
needed are just not there. People are not getting the help they need to
get well, and communities are feeling the effects.
Businesses are experiencing spikes in crime, and residents are now
fearful in their neighbourhoods where they once felt safe. This is
putting even greater stress on communities that are already overwhelmed
trying to deal with the impacts of COVID-19.
Stress is also now heightened in discussions about going back to
school. We recently heard the back-to-school announcement from the
government, which has raised significant concerns. Teachers, parents and
students are all experiencing significant stress and anxiety at the
thought of returning to school full-time in the fall, and this needs to
be addressed and understood. British Columbians deserve a clear,
comprehensive and safe back-to-school plan that takes into account the
needs of all those involved.
There are so many challenges and issues for our province that need
to be addressed right now, and British Columbians are looking to all
members of this House for leadership. On this, the last Monday of our
legislative session during the middle of a pandemic, it is not the time
for political posturing. This is the time to be debating and discussing
measures to help everyone in our province recover and rebuild so that
B.C. is able to continue to grow and thrive in the future.
Deputy Speaker: Thank you, Member. Again, the Chair would like to remind all
members that the first hour is always supposed to be and should be
non-partisan.
The member for Maple Ridge–Mission will continue.
B. D’Eith: I find it fascinating the member for Vancouver-Langara refused to
even comment on the money-laundering crisis that we’re facing in this
province, especially given the fact that we have a second public health
crisis in this province, which the opposition has brought up many times,
in regards to the opioid crisis, and money laundering is a very, very
profound and big part of that. So I find it fascinating that the member
chose to ignore the topic entirely in his response.
It’s essential, in our view, that B.C. never again be considered a
safe haven for the profits of organized crime. For too long, people
trying to evade taxes and wealthy criminals felt they could launder
dirty money in our province with impunity. Of course, this has a
profound impact on the opioid crisis.
Money laundering exacerbates the housing crisis, as well, in our
province, making life harder for British Columbians and the B.C.
community. So if we’re talking about recovery, we’ve got to talk about
housing. Housing in our province needs to be provided for safe housing
for our families in our communities, not to serve as a laundromat for
illicit funds. I know we’re all committed to making sure that criminal
money doesn’t push B.C. families out of their communities.
[10:20 a.m.]
Money laundering also compounded the overdose crisis, as I said,
and we need to address the overdose crisis with compassion, but with an
approach grounded in medical evidence. We’re also committed to cracking
down on the proceeds of drug trafficking, which has done so much harm in
our communities. We’re making progress on combating money
laundering.
Dr. Peter German’s report Dirty Money brought to light a
critical discussion on how we can prevent criminal proceeds from
infesting our society. Knowledge is power, and thanks to Dr. German and
other experts who have carefully studied this issue, we now know the
scope of this challenge and what steps need to be taken to address it.
As of June 2020, 69 percent of the recommendations of Dr. German’s
report have been addressed. The number of suspicious transactions have
declined with BCLC by 87 percent in the past years.
I want to, again, bring attention to the important warning from
May 2019, the report from 2019. The rule of law in British Columbia is
still strong, thankfully, but lessons from around the world can and
should caution us that if left unchecked, criminal elements can threaten
the rule of law and democracy, especially during a crisis.
We must be vigilant. We can never take these institutions for
granted. Democracy and the rule of law are so important. We, on this
side of the House, are committed to defending them.
CLEAN ENERGY
E. Ross: On behalf of the riding of Skeena, I’m honoured to move the
following statement this morning, entitled “Clean energy.”
B.C. is blessed when it comes to clean energy, especially when we
talk about hydroelectricity and natural gas. When you look at the
history, B.C. has proven that the environment and resource development
are not mutually exclusive. So 2017 marked the 50th anniversary of the
W.A.C. Bennett dam. Fifty-one years later LNG Canada announced its $40
billion final investment decision on their project to ship B.C. LNG to
Asia.
In these two historic achievements, we also have to remember the
basics of supply and demand, and more importantly, the foresight to plan
for clean energy usage around the world, not just here in B.C. There’s
no doubt that the W.A.C. Bennett dam kept B.C. emissions down for 50
years while keeping consumer rates at the fifth-lowest in North America.
But at the same time, we have to realize that W.A.C. Bennett dam was
built for a population of 1.8 million people.
Today our population has grown to 5 million and growing. The
demand keeps growing, and not just in B.C. Demand keeps growing for
energy all across the world, especially in countries who want the same
standard of living and opportunity that we have enjoyed here in the west
for decades. So now it is our turn to plan for the future to provide
energy for the next generation.
We’ve taken the first steps in this regard with the construction
of Site C. The construction of LNG Canada’s natural gas project can only
ensure that B.C. takes its place in the world in the push to reduce
emissions while feeding the demand for energy worldwide.
Hydro power still provides the majority of clean energy to
consumers. In the case of B.C., 90 percent of what we use comes from
hydroelectricity, as compared to worldwide use at 16 percent. The
critics who say that Site C is not needed right now are ignoring the
simple fact that the W.A.C. Bennett dam wasn’t built for five million
people. It was built for 1.8 million people.
As large hydro dams have a lifetime of 50 to 100 years, we are not
the ones to definitively say what the energy need will be in the year
2120. We can only predict based on our past that energy demand will
always be there, and world populations will continue to grow.
As for natural gas, we can still include natural gas to meet
current and future demand here in B.C. by transitioning our remote
communities from diesel-generated electricity to natural gas. This would
not only reduce emissions but also reduce the environmental impacts that
come from a diesel spill on our west coast and inland waters, which is a
reality.
The alternatives for clean energy are not in our best interests as
British Columbians. The United States currently runs 90 nuclear reactors
in 30 different states. It may be carbon free, but I have never heard of
British Columbians screaming for us to use nuclear power over our
hydroelectricity or natural gas. The United States also generates 23.5
percent of its electricity from burning coal. It’s interesting, though,
to note that the United States’ reduction of emissions is due mainly to
transitioning from coal-generated electricity to natural gas, not from
shutting down the electricity plants.
[10:25 a.m.]
In considering all of this, it makes no sense for British Columbia
to become energy-reliant on the United States through the North American
grid, especially when we have clean sources of energy already in our
natural gas deposits, the W.A.C. Bennett dam and the future Site C
dam.
We already have the highest environmental standards in the world,
but we also have to consider the economic growth that comes from our
efforts to produce our own energy, which we can now proudly say includes
First Nations in almost every aspect, including the W.A.C. Bennett dam.
Yet we need more projects like Site C, LNG Canada and Chevron’s KM LNG
project, which not only provide energy for future British Columbians but
also make for a stronger B.C. overall, as well as helping the world
problem of emissions.
D. Routley: Thank you to the member for his motion, his statement and his
presentation. I appreciate that and his experience with the issue as a
community leader in a region that’s developing these
resources.
I would 100 percent agree with the member that a commitment to
clean energy is beyond simply a benefit. It’s essential, when we
consider our legislative commitments to reducing carbon output in this
province. So I’m pleased that he would, by his presentation, agree that
insisting that B.C. Hydro move to a 100 percent clean energy standard
is, in fact, the appropriate and best thing to do.
Right now hydro is essentially 98 percent clean energy. It’s
required to be 93 percent clean energy, but it is, in fact, 98 percent.
Moving to 100 percent would have B.C. Hydro access other markets for
electricity, but only clean electricity, which is not currently the
case. So this would require that B.C. Hydro buy clean energy but also
answer our number one priority for the provision of energy in this
province — that is, that it’s most affordable to the citizens of British
Columbia at the same time as achieving these environmental
goals.
The suggestion that we would be energy-reliant, I think, is….
That’s where we would have a point of debate. In fact, B.C. Hydro is
acting in the best interests of British Columbia in getting the very
best price for electricity and, at the same time, moving ourselves and
the rest of North America towards a cleaner standard.
We do not exist in a vacuum in British Columbia. The attempt to
have a self-sufficiency standard in British Columbia led to exorbitant
fees being paid for electricity over very long periods of time in order
to answer what is, essentially, a false requirement. We are a part of
the grid. We do provide energy into the grid when it benefits us, and we
take energy out of the grid when required, always with the notion that
we would make a profit in doing that and hand that profit to British
Columbians in the form of lower energy prices.
That’s the way British Columbia operated for years, in that we
were, in fact, a net importer of energy but made hundreds of millions of
dollars in doing that because we have the flexibility, given our dams,
to run them when the prices are high and to buy off the grid when the
prices are low. That only makes sense.
I know the member represents a party that takes pride in
nominating itself to be a business-conscious enterprise, so I assume
that he will agree that that’s the best route for British Columbia, for
B.C. Hydro: that we provide the cheapest possible energy while achieving
our clean energy goals and protecting the generation and capacity for
future generations. That’s exactly what we’re attempting to do with Bill
17 and the other measures that have been taken to improve B.C. Hydro and
to meet our legislated climate goals.
E. Ross: Thank you to the member for the response.
[10:30 a.m.]
It contradicts the whole idea of energy reliance, when we’re
saying that we’re part of the North American grid, that we’re going to
buy power from the United States, which actually generates electricity
from coal and nuclear power plants, while actually excluding clean
energy sources in B.C., especially in a time when First Nations are
stepping up to the plate to develop their own clean energy projects. And
now we’re talking about: “No, we’re going to buy power off the North
American energy grid.”
Minor projects, as well, can actually add value to current
initiatives that, in turn, create more spinoffs to provide jobs and
training opportunities. That’s what clean energy provides, whether it be
natural gas, Site C or even the W.A.C. Bennett dam.
For example, the Olefins $5.6 billion petrochemical plant out of
McLeod Lake proposed to include an ethylene derivatives plant and a
natural gas recovery system. This is a spinoff from the natural gas
pipeline, and it actually leads the manufacturing. Given that other
jurisdictions around the world don’t have the same environmental or work
standards as we have in Canada, it would be a shame to see these
plastics being developed elsewhere, especially when we consider the
plastics that are being used for the air industry and the car industry,
especially when we all agree we should be looking to develop more
manufacturing opportunities and capabilities here in B.C.
Top Speed and similar projects are also looking to export natural
gas, but they’re also keen to help remote communities by transitioning
them from diesel-generated electricity to natural gas. I’ve already
mentioned how this does get rid of the impact of an environmental spill,
which we have seen for decades on the west coast of B.C., whether we’re
talking about fishing boats or barges carrying diesel.
We have the BitCrude proposed for Prince Rupert that proposes to
export crude oil as a solid in container ships to complement, not
replace, current pipelines and tanker methods. We have proposals to ship
methanol to Asia — clean, B.C. methanol — because right now Asia is
supplying their own needs for methanol through coal.
Of course, we can’t ignore projects like Pacific Traverse Energy,
Cedar LNG, Woodfibre, Chevron’s KM LNG. We can’t ignore this, especially
at our time of need in this COVID crisis when we’re all looking to
develop an economy and come out even stronger than what we were before
this crisis. Chevron LNG, in its plans to export 18 million tonnes, will
provide more spinoffs like what we’re seeing in Terrace right now —
Progressive Ventures’ inland port to service Prince Rupert, Kitimat and
Stewart.
They’re all spinoffs. They provide tremendous value, in terms of
jobs and opportunity, as well as complementing our clean energy
needs.
INNOVATION TO ADDRESS
CLIMATE
CHANGE
R. Glumac: Usually, at this point, I would say that I’m standing in the House
to speak. But, of course, I’m not in the House, and I’m not standing.
I’m speaking from my home. It’s one of the changes we’ve all had to make
in these challenging times.
As Parliamentary Secretary for Technology, I come across change
every day, in the way of innovation. Many companies right here in B.C.
are the architects of change as they are coming up with new ways of
doing things — more efficient, or cleaner, or cheaper, or simply better
ways of doing things. The tech sector in B.C. is world-class. It has the
potential to grow even more and become a major part of our
economy.
As we discuss economic recovery, I often hear about the role the
tech sector will play in that recovery. I’ve been hosting economic round
tables with stakeholders in the tech sector over the last few months.
One message I’m hearing loud and clear is this: the pandemic is our
opportunity to recreate the B.C. economy to be an economy of the future
that embraces innovation and is cleaner, greener and more
sustainable.
The challenges we are facing today, individually and throughout
the economy, are enormous. At the same time, we can’t forget the other
crisis that will become increasingly impossible to ignore — the climate
crisis. It hasn’t gone away.
Economic opportunity and climate action go hand in hand, and I
believe that the Burrard Thermal lands are the prime location to unlock
these opportunities, to nurture innovation, to create jobs and help
rebuild the economy and to make advances in clean energy and clean
technology that could make a significant impact on climate change.
Because that’s what we need to do. We need to explore all options when
it comes to fighting climate change — all options.
[10:35 a.m.]
Scientists have been warning about the importance of limiting the
warming of our planet to 1.5 degrees Celsius. Why is 1.5 degrees so
critical? It’s because above this temperature, there are certain tipping
points that may cause temperatures to rise much more significantly. This
is the challenge of climate change: the crisis is in the future, but the
action needs to be taken now.
After 1.5 degrees, the Antarctic ice sheets are at risk of
melting. The West Antarctic ice sheet, which has already started
melting, holds enough ice to cause sea levels to rise 3.3 metres. That’s
just one source of sea level rise. Part of the East Antarctic ice sheet
is also melting, which could contribute another four metres to sea level
rise. The Greenland ice sheet could contribute seven metres of sea level
rise. Once these ice sheets start melting, they will continue melting.
That is why it’s called the tipping point.
This is only one of many tipping points. After 1.5 degrees
Celsius, there will be further thawing of permafrost in the north, which
will release more greenhouse gases from carbon-rich soils. Adding more
carbon into the atmosphere will further increase global temperatures,
another tipping point.
The drying out of the Amazon rainforest. The shifting of ocean
currents in the Atlantic, causing massive changes to Europe’s
temperatures. The dying off of coral reefs all over the world. The loss
of fisheries. The shifting and strengthening of monsoons in Africa and
Asia. The shifting of boreal forests, with the increased dying of trees,
will actually cause these forests to emit more carbon than they absorb.
Once these things start happening, there is no magical way to make them
stop.
The only way to stop is to keep temperatures below 1.5 degrees
Celsius. It will take a massive effort to do that. Even if all countries
acted on their pledges to reduce emissions as part of the Paris
Agreement, scientists estimate that the warming will still continue to
rise by more than 3 degrees Celsius. Without significant action, our
children will inherit a world that is nothing like the world we live in
today. The only way we can actually achieve a major reduction in
greenhouse gas emissions is to stop these tipping points from being
triggered.
I believe we can’t do that without some sort of transformative
technology. That’s what we need. That’s one of the reasons why the
Burrard Thermal lands are so important. The Burrard Thermal generating
plant was shut down in 2016 under the previous government. It wasn’t
decommissioned in a way that would allow it to be restarted. So the
question has been: what do we do with these lands?
For some time, I could see the potential for this site to be
utilized to foster clean tech innovation, specifically around fighting
climate change. My conversations with industry and with local
constituents confirmed that there is significant interest in this
possibility. There is no site like this in B.C. It’s an ideal location
for cutting-edge clean tech innovation.
Let’s move forward. Let’s embrace these opportunities and lead the
world in the fight against climate change.
P. Milobar: It gives me pleasure to rise to speak to innovation to address the
climate change. It’s unfortunate that in that six-minute
preamble,
innovation was mentioned for about 35 seconds. So let me take this
opportunity to maybe speak about innovation. Although Burrard Thermal
lands are an interesting piece to a puzzle, potentially, it is a little
disturbing that that seems to be the only idea around innovation as it
stands today.
I say that because there are a great many other projects in this
province that need the help and the support of governments provincially,
federally and municipally to try to advance and make sure they are on
the cutting edge of innovation. Of course we are going to need
innovation to address climate change. By the very nature of the
definition of “innovation,” that’s exactly what it would speak to. So it
is, I guess, a very obvious or redundant statement that we are having
here today.
[10:40 a.m.]
When you look at the Burrard Thermal lands — again, an interesting
concept — it’s interesting that both this speaker and the previous
speaker from the government side seem to be referencing back to Bill 17,
a bill that has actually been pulled by the government because they did
not have the supports to move it forward. The Burrard Thermal lands are
part of Bill 17, as well as what we were hearing about clean energy and
First Nations reliance on clean energy projects. So I would suggest that
we are a long ways off from trying to advance anything with Burrard
Thermal lands.
In the meantime, we have a great number of technology companies
out there trying to do great work on the innovation side of climate
change. What they are missing is a competitive environment to stay
within British Columbia. I would hope that instead of fixating on a
piece of land that will take years and years and years to move forward
with as a Crown, we would not hold all innovation back, as the member
previous seems to be indicating that everything is hitched to the
Burrard Thermal lands.
There is technology being developed across British Columbia. What
those companies need, what those companies require, is a competitive tax
regime, not one that has seen 23 taxes added to or increased or brought
in new to their cost structure when they’re trying to compete with other
areas around intellectual capacity within their workforces.
It simply is not feasible to try to attract high-end skilled
workforces when you have personal tax rates brought in that would make
us one of the highest taxed jurisdictions in North America. Innovative
companies will not be locating in British Columbia, not because of a
lack of land to develop their factory or their processes on. It will be
because they are simply uncompetitive to attract labour, to attract the
skill sets required from those people, from the highly educated
workforces that would be required for innovation companies.
So those types of cost pressures…. The ever-increasing employer
health tax is another example of cost pressures that will make these
innovative companies…. They are very dependent on intellectual minds to
come in and actually do the work. They can do that from anywhere in the
world on the research side, on the innovative, cutting-edge side. They
do not need the Burrard Thermal lands to be tied up in a process over
the next five or six years to try to remove it out of Crown
possession.
What they need, in the very short term, in the very immediate
term, is an actually truly competitive environment where they can go out
and compete with other jurisdictions around the world and attract that
workforce into British Columbia to help guide us to the next wave of
what innovation can do to help combat climate change.
Without that piece…. You can have all the pieces of land you want
sitting around. People will not come. We heard from the member for
Skeena all of the great innovative things going on in the northern
reaches of the province. They did not require the Burrard Thermal lands
to be able to do that. Perhaps the member is unaware that this is a big,
vast province with lots of land opportunities for companies to invest
in, to actually locate in. It doesn’t all have to be centred on the
Burrard Thermal lands.
What we need to do is support the existing technology companies
that are out there making a real difference and make sure they stay in
British Columbia and expand in British Columbia, not drive them out of
British Columbia because of a repetitive, ever-increasing, oppressive
tax regime that we are seeing come forward right now. So those 23
increased taxes, the highest personal taxes in the nation, are not a way
to keep driving forward for innovation.
R. Glumac: B.C. has a world-class clean tech sector. We have nearly 300 clean
tech companies, employing over 16,000 people, and it’s been growing
every year. B.C. is home to a quarter of the clean tech companies in
Canada. Seven of these were on the Global Cleantech top 100, which lists
the top companies in the world with the most innovative and promising
ideas in clean technology. These are companies that focus on everything
from clean energy generation to clean transportation to electricity
transmission and carbon capture and storage.
New companies are entering into this space every day, with the
help of provincially funded clean tech business accelerators like
Foresight. A breakthrough in this sector could have a transformative
impact in reducing greenhouse gas emissions around the world. To prove
out these technologies and scale up ideas, industrial spaces such as
those in the Burrard Thermal lands, with access to ports and clean,
high-voltage electricity, can make a big difference in moving towards a
breakthrough.
[10:45 a.m.]
Jeanette Jackson, CEO of Foresight Cleantech Accelerator, has been
spearheading a provincewide clean tech cluster initiative for B.C. She
sees a centre of clean tech innovation at a place like the Burrard
Thermal lands as a place where technology, people and resources can come
together in a collaborative way. She says: “Our vision for B.C. is to
become a world leader in the clean tech industry, estimated to be worth
$2.5 trillion in the next two years. To do that, we must provide
much-needed space to innovate and be willing to invest in larger-scale
projects.”
In the context of the economic challenges that we are facing
because of a global pandemic, it’s critical that we capitalize on the
strengths that we have here in B.C. CleanBC is a strength. A
world-leading clean tech sector is a strength. An abundance of clean
electricity is a strength. We are well positioned to jump-start a green
economy here in this province. Let’s build on our strengths and make
that happen.
ECONOMIC PLAN FOR B.C.
J. Martin: It’s very good to be here today. This is my first time in the
Legislature since February. I had an opportunity to visit downtown last
night, and I was reminded of a lyric in a Tom Waits song: “It felt
lonelier than a parking lot when the last car pulls away.” Seeing all of
the establishments near empty was very, very uncomfortable. That will
segue into what I’m about to speak to, and that’s the immediate need for
an economic plan for B.C.
Week after week, we’ve been stressing the importance of an
economic plan, a plan to help revive the staggering economy during this
challenging time, a plan to foster the conditions for job creation. Many
businesses, under the provincial health order, had to close or limit
operations to help flatten the curve and help the community become
safer.
British Columbians have risen to the challenges posed by the
biggest health crisis in our province’s history. We can’t just forget
about their sacrifices. Now these businesses need every opportunity
available to keep their doors open or to reopen. These people need jobs
to keep a roof over their heads, to feed their families. We’ve stepped
into August, along with the concern about a second wave of infection.
B.C.’s unemployment rate remains above 11 percent.
We used to be the province with the lowest unemployment rate in
Canada, something that we were all very proud of. Well, that’s not the
case anymore. Hundreds of thousands of British Columbians have been and
remain out of work. Many businesses are struggling and on the edge of
shutting down for good. Families are hurting. Women and youth are
particularly hit hard. The most vulnerable are the most
affected.
People are facing a huge challenge. What they want from the
government is a plan to help them get back on their feet. The business
community throughout the province has spoken up time and time again.
Over 1,400 member businesses from groups including the Business Council
of B.C., the Greater Vancouver Board of Trade and the B.C. Chamber of
Commerce are calling for a bold and long-term recovery plan.
What do they think of the current restart plan? Forty-seven
percent of the businesses were not confident. One in ten of them expect
temporary or permanent closure. Nearly 60 percent of them anticipate
layoffs or cutting workers’ hours.
This is the time we need to stay sensitive to the vulnerability of
these struggling businesses. Val Litwin, with the B.C. Chamber of
Commerce, said: “Governments must keep focused on delivering their
recovery plans swiftly.”
Businesses want a bold economic recovery plan. It’s
incomprehensible how British Columbia has done better than any other
jurisdiction in combating the pandemic, thanks to health officials, but
our economy recovery has fared far worse.
Why is B.C. falling behind other provinces? Alberta put out a plan
in June to create jobs, build infrastructure and diversify their
economy. Ontario rolled out a plan in July to attract investment, cut
red tape and modernize services. By not having an economic plan, B.C. is
losing its competitiveness with other jurisdictions in Canada and
globally. British Columbians deserve more.
[10:50 a.m.]
Unfortunately, here in July, we heard the province faces a $12.5
billion deficit, the biggest fiscal catastrophe in our history. Now,
five months after the announcement of a $5 billion economic response
plan, the only thing that’s really clear is that there’s an online
survey. What will that survey do? Well, we would hope that, at least, it
means listening to what different communities have to say. That may be a
bit optimistic.
In July, 21 business and industry groups representing thousands of
small businesses and employers urged the government to do no harm and
set aside any measures that increase costs, add to the regulatory burden
or create further uncertainty for employers.
To be clear, from calling for a recovery plan to calling on the
government to do no harm, that’s the business community literally
begging policy-makers to not add insult to injury. All employers are
already experiencing higher operational costs due to the extra measures
needed to ensure safety — this, while revenues decline. The last thing
they need right now is any policy that would put jobs at further risk or
pile more costs on small businesses.
Jock Finlayson, executive vice-president of the Business Council
of B.C., said: “The government has largely carried on with its
pre-pandemic policy agenda, which paved the way for increased tax and
regulatory burdens for most businesses and higher payroll taxes for
employers.” The business community wants to see a change of direction
from policy-makers to kick-start economic recovery and make British
Columbia a top-ranked jurisdiction for new private sector investment and
entrepreneurial activity.
We are calling for an economic plan that takes into consideration
the voices, the suggestions and the ideas of different groups, including
small business, that represent 98 percent of all businesses in B.C. Many
of these businesses will not survive without an economic plan in place
very soon.
R. Kahlon: Thank you to my colleague from Chilliwack for his remarks. I, too,
look forward to being over in Victoria in the coming days. I appreciate
the sentiment around not seeing the normal amount of people that you
would see and how troubling that can be, especially because I was born
and raised in Victoria.
There are a few comments that I want to make regarding economic
recovery. I think that foremost to that is that the economic recovery
and health care measures cannot be disconnected. You cannot have a
proper economic recovery with the situation that we’re dealing with —
COVID — without having the health component be a central piece of that.
I’ve heard some members of the Legislature — in fact, from the
opposition — mention the separation between the two. But I don’t think
there’s an economic leader — anyone from the business community to the
non-profit community — or any political leader, other than maybe perhaps
some here, who has made that frame that you can separate the two. In
fact, we need them to be connected.
I’ve had the opportunity to have hosted many round tables in the
last few weeks. I’ve had a chance to talk with business leaders about
what they would like to see as part of the economic recovery. In fact, I
know that some are frustrated that we didn’t just roll out a plan
ourselves without talking to people, but it’s important to hear from
people about what they want to see in part of the economic
recovery.
I think what jumped out at me from those conversations are three
main themes. First is climate change. I think there is an understanding
that when we’re dealing with one crisis that the world is dealing with,
we should not neglect the other crisis that the world should be dealing
with. Here we have an opportunity to address both economic recovery with
addressing our climate change targets. I know that CleanBC is a model
for all jurisdictions in North America. I’m very proud of the work
that’s being done there.
We have an opportunity, I think, to really move that along to
ensure that we can meet our targets — so both address climate change and
put people back to work. I think of a company in my community called
Hydra, which I just had a chance to tour, which is doing just that —
creating jobs and looking to make massive investments in B.C. They do it
here because they know that the government is serious about climate
change. So it’s a very important step.
[10:55 a.m.]
The second one that jumped out at me is around innovation.
It’s everywhere. I see the member from Port Moody, who often talks about
innovation and how important it is for his residents in his community. I
can say that it’s been a consistent theme that’s been raised. As we come
out of this COVID crisis, we must embrace innovation. Whether that’s
mass timber, which is a triple-word score: creating good jobs in B.C.,
addressing climate change and also enhancing innovation for our
construction and development community…. I think there are tons of
examples around innovation in the tech sector that we need to
enhance.
I think the last thing I’ve heard clearly from people is that we
can’t forget about people. You know, it’s easier to think about numbers
and stats, but people are struggling. When the tide comes out, as it did
with COVID, you see the challenges that we have in society become more
glaringly obvious. In fact, they actually step up a lot more than we
even can imagine.
I think of mental health, for example, and how many people are
affected by COVID when it comes to mental health. Again, we can’t
separate one, a health outcome, from economic recovery. We need to think
of those as one, and that’s what COVID has taught us.
What also — the member just mentioned it — jumped out at me was
around who is impacted by COVID. We’ve seen a disproportionate amount of
effect on women of colour. The average job loss was 9.2 percent for
women, and South Asian women were 20.4 percent; Arab women, 20.3
percent; Black women, 18.6 percent. So it’s critical that when we think
of economic recovery, we think of those people who are greatly
affected.
I look forward to continuing this conversation. I know the member
and I can continue this for hours, but I look forward to hearing his
thoughts.
J. Martin: Thank you to the member for Delta North for that
commentary.
What I’d like to do in the time I have left is talk about some of
the suggestions that my colleagues have made to the government since the
beginning of the pandemic.
We have proposed more than 68 commonsense solutions to help small
businesses, including help with funding to provide access to personal
protective equipment, to ensure employee and customer safety and boost
consumer confidence.
It’s the responsibility of the government and employers to invest
in and to provide what’s necessary to maintain a safe workplace. To
achieve that, it’s critical to ensure that B.C. workers compensation
system is committed to being financially stable and sustainable over the
long term, especially in the middle of a pandemic with so much
uncertainty in our midst.
This system is funded by premiums paid by employers, many of which
are struggling right now. That’s why we propose giving refunds to
employers from the WorkSafeBC surplus for the cost of PPE up to a
maximum of 30 percent of the premiums that they’ve paid, since
WorkSafeBC will see reduced claims this year.
Maintaining safety and healthy workplaces is essential to
restoring economic activity while keeping employees as safe as possible.
This is just one of the many proposals to enable businesses of all sizes
to restart, to reinvest, to rehire. In addition, we also propose broader
economic actions such as a temporary PST relief. Similarly, the business
council released a 31-page economic recovery plan, Stronger
Tomorrow, Starting Today , on July 29 with a number of
recommendations, including PST relief to spur consumer spending,
improving conditions for hiring and private sector investment, adding
child care spaces and fast-tracking projects like the Massey Tunnel
replacement.
The government has set aside $1.5 billion to fund economic
recovery, but this money has been sitting idle for the most part. No
decisions have been made. Actions have yet to be taken. The challenges
our province is facing won’t simply go away. We’ve seen other provinces
respond and adapt to the new reality with concrete economic plans. We
can’t afford an economic free fall. We need an economic plan for B.C.
right now.
Hon. H. Bains: I ask the House to consider proceeding with Motion 10 standing in
the name of the member for Surrey–Green Timbers.
[11:00 a.m.]
Deputy Speaker: Hon. Members, unanimous consent of the House is required to
proceed with Motion 10 without disturbing the priorities of the motions
preceding it on the order paper.
Leave granted.
Private Members’ Motions
MOTION 10 — EQUITABLE ECONOMY
R. Singh: It is my honour to move the motion:
[Be it resolved that this House agree that governments should work
to build an equitable economy for all — not just the wealthy
few.]
We all know that for far too long in our province, only the
wealthy few at the top benefited, while good opportunities became
further out of reach for most.
[S. Gibson in the chair.]
People deserve to have an economy and governments that work for
them, not one that will take the benefits of their hard work and give it
to the top 2 percent while making it harder to get by, year after year.
For far too long in this province, we had a government that…. For that
government, economic opportunity really only meant opportunity for those
at the top.
For 16 years, that government was giving billions in tax cuts to
the richest people while the average British Columbian was suffering.
They increased hydro rates, ICBC premiums and ferry fares. They tripled
tuition fees and doubled MSP fees. They put steep tolls on key commuter
bridges where transit options don’t exist and did nothing while the
price of housing and rent went through the roof.
They refused to make investments that would benefit everyone in
B.C. The minimum wage in British Columbia was kept low,
disproportionately affecting women and immigrant workers. Health care
wages were rolled back due to privatization. Educational opportunities
and skills training were all but eliminated. Not enough investments were
made in affordable housing and child care. Short-sighted and
mean-spirited policies kept too many people stuck in an endless cycle of
poverty.
I’m so glad that now we have a government that is committed to
shared prosperity for everyone in B.C. Before COVID-19, we were making
progress on the things that people care about. People are the economy.
We’ll build B.C. back stronger, so everyone has a good job and a secure
future.
This government is working towards economic recovery around
everyday people, not just the richest 2 percent — helping people get the
training and education they need to get good jobs and building
infrastructure like roads, mass transit and bridges that will boost the
economy and create good jobs. This government is also continuing to
manage COVID-19 to help our economy build back stronger.
The government has a vision for a strong, sustainable economy that
provides good-paying jobs and quality public services for people and
provides businesses with the opportunities they need to compete and
thrive in the marketplace. Also, in the current government, people’s
wages are finally starting to grow. They were up 4.4 percent in 2019
after years of stagnating under the previous government.
Now is not the time to turn back the clock. Let’s keep building a
better B.C.
M. Hunt: To create an economy that is equitable for all means that
opportunities must be available for everyone. This means an economy that
is strong, that is creating jobs and that is providing a real sense of
future for British Columbians. This is something that we all want in
this province and, certainly, in our own communities.
The past few months dealing with the pandemic have really
equalized the playing field, as we all, regardless of the factors that
sometimes separate us, were brought together in this mutual struggle.
With that have come catastrophic job losses, economic fallout and the
challenge that we’re all facing — what to do in the face of such
difficulties. Now more than ever there’s a need for a recovery plan, a
direction forward that creates opportunities through meaningful economic
stimulus and expansion.
[11:05 a.m.]
We have seen how many small businesses have been shuttered in the
wake of COVID-19, and it is clear that those numbers may only get worse.
So I would hope that this government is doing everything in its power to
ensure that everyone is able to be a part of this economy. But there are
those situations where an attempt for providing equitable access to some
means demonstrably alienating others.
Let me give you an example of this. The first of three phases of
the long-awaited Salmon Arm west highway expansion project went to
tender in June, three years behind
schedule and now projected to cost
British Columbians an additional $40 million, or 34 percent more than
what was previously estimated. The reason: the NDP’s community benefits
agreement structure.
The NDP’s stated goal is to ensure increased hiring of locals,
women and First Nations on these major projects, which is great in
theory. However, under the guise of this being all about equal
opportunities, the CBA structure actually denies economic opportunities
to over 85 percent of B.C.’s construction workers, because if
prospective bidders do not want to join one of the NDP’s handpicked
unions, they simply aren’t able to compete on the projects.
How is this equitable? How is this an opportunity for all British
Columbians to get equitable access to these opportunities? To me, this
system is laden with hypocrisies and is frankly poor financial
management.
Vaughn Palmer highlighted recently that under the NDP’s watch, the
combined budgets of four Trans-Canada Highway projects under the CBA
format have increased about 30 percent. They have gone from $875 million
to $1.13 billion. If the goal is an equitable economy, then these
opportunities should not be hidden behind a series of members-only hoops
that people have to jump through in order to get the favour of this
government. In this case, the NDP is, in fact, making it harder for
British Columbians to find meaningful employment, and it’s costing
millions to do so.
Now, it’s one thing to preach about an equitable economy, but it’s
quite another to actually put it into practice and do it. Now, I hope
this government can find that balance. But given their actions and the
costly hypocrisies that we have seen demonstrated by this government, I
don’t think it’s possible. You see, government’s job is to make
opportunities available to all, not to pick winners and
losers.
Unfortunately, that’s exactly what we see. We see a government
that is making opportunities, yes, for their friends and insiders, and
everybody else is on the outside.
J. Brar: I’m very pleased to support the motion introduced today by the
hon. member for Surrey–Green Timbers “that this House agree that
governments should work to build an equitable economy for all — not just
the wealthy few.”
People deserve to have an economy and government that works for
them, not one that will take the benefits of their hard work and give it
to the top 2 percent, as the B.C. Liberals did. For 16 years the B.C.
Liberals forced hard-working British Columbians to pay more while giving
billions and billions in tax cuts to rich people, under their watch.
They forced the people of Surrey and other areas to pay tolls on the
Port Mann Bridge. The member who, just before me, was speaking, is also
from Surrey, and he knows about it.
They doubled the MSP, costing $467 more for individuals and $933
more for a family. They increased hydro rates, ICBC premiums, ferry
fares and tripled the tuition fees for our students. As a direct result
of B.C. Liberals’ bad choices, B.C. became the province with the
second-highest income inequality in the country, according to Statistics
Canada data.
[11:10 a.m.]
B.C. had the highest rate of poverty for the working poor,
according to a report by CCPA. Under the B.C. Liberals, Metro Vancouver
had the worst housing affordability ever in Canada in history. Clearly,
they refused to make investments that would benefit everyone in
B.C.
The minimum wage in B.C. was kept low to support their rich
friends. Health care wages were rolled back due to privatization.
Educational opportunities and skill training were all but eliminated.
Not enough investments were made in affordable housing and child
care.
Now the Leader of the Opposition is planning, once again, big tax
breaks to those at the top at a time when people can least afford it.
They plan to bring back MSP to pay for the tax cuts to the rich. They
will cut health care and seniors care, and that will weaken our system
when we need it the most. They will cut education and child care,
hurting our kids and reducing opportunities for people to get ahead. For
16 years, the B.C. Liberals helped their wealthy friends but did nothing
for everyone else. They will do the same again.
Our government is fully committed to shared prosperity for
everyone in B.C. Before COVID-19, we were making progress on the things
people care about. We eliminated MSP — the largest middle-class tax
reduction in a generation. Elimination of MSP premiums combined with the
new B.C. child opportunity benefit would mean that a family of four
earning $80,000 will have their provincial taxes reduced by up to 43
percent in just three years.
People are the economy. We will build an economic recovery around
everyday people — not just the richest 2 percent, as the Liberals did —
by helping people get the training and education they need to get good
jobs, by building infrastructure, like roads and mass transit and
bridges. That will boost the economy and create good jobs.
We will continue to manage COVID-19 to help our economy build back
stronger. We have a vision for a strong, sustainable economy that
provides good-paying jobs and quality public services for people and
provides businesses with the opportunities they need to compete and
thrive in the global marketplace.
Let us not turn back the clock. It’s not the time to turn back the
clock. Let us keep building a better B.C. for everyone.
T. Redies: I’m pleased to stand for what will be my last five-minute
statement in the House.
Now, clearly, we want to build an equitable economy for all. It’s
not only the right thing to do; if we don’t make sure all people can
reach their optimal potential, the economy in turn does not reach its
full potential.
We must ensure that women can be full participants in the
workforce and are able to make their highest contribution with equal pay
and benefits and access to opportunities. For much of my career, sadly,
women have typically been paid only three-quarters of what men are paid
for the same work. This must stop.
That’s why I’m disappointed that my colleague from Surrey South’s
private member’s bill, the Equal Pay Reporting Act, has not been brought
forward for debate or received support by this government. This is a
step to fill the gender pay gap, to make businesses accountable for
equality in the workplace, and it’s an appropriate instrument for a more
equitable economy. This bill has now been introduced twice, yet it still
languishes on the order paper.
It’s also important that new immigrants and people from First
Nations communities can reach their full potential. For too long, we’ve
seen First Nations communities living generations in poverty and
immigrants unable to use their education here in Canada. This must also
stop.
Access to education and high-paying private sector jobs represent
the best way out for those living in poverty. I believe in investing in
education at all levels and making sure that every child in this
province has the skills and the support to thrive in the 21st century,
whether they are children of First Nations communities, immigrant
families, diverse abilities or affluent families.
[11:15 a.m.]
This is not only the right thing to do; it is in all our
interests, as a community, province and country. Other than health care,
I’m hard pressed to find a single more important role for government.
It’s probably where my own and the current government’s philosophy are
most aligned.
Where we differ, however, is the belief in the need for job
creation and opportunity to be led by the private, not the public,
sector. Why do I say this? Both public and private sector jobs generate,
on average, about 10 percent of wages in provincial tax revenue. But 100
percent of the cost of the public sector job must be paid for by the
taxpayer.
So while it is good to have some public sector jobs, an economy
led solely by public sector growth is not viable over time. It is a
vibrant private sector that is the most sustainable way to ensure that
there are good-paying jobs that allow people to not only earn a good
living but have the pride of providing for themselves and their
families.
Now, we are in the middle of a 100-year crisis, where consumers
and businesses have massively reduced spending. Given this, we know that
governments must step up across the world and significantly increase
spending on infrastructure and even social programs to reboot the
economy. But this must only be for a short period of time. Ultimately,
we need the private sector to fire on all cylinders if we are to provide
jobs for the now 300,000 unemployed or partially employed in this
province.
This government must act quickly to improve competitiveness,
decrease taxation and reduce regulatory burden if we are to create the
conditions where businesses have the confidence to reinvest. This is
especially important now, as we see over 14,000 businesses have closed
their doors during the first two months of the pandemic.
Building a solid economy where everyone can benefit requires a
vibrant private sector, one that has the ability to attract and retain
talent and create high-paying jobs. We cannot rely only on the public
sector to create jobs. Unfortunately, B.C.’s competitiveness had already
deteriorated greatly under the current government, with billions of
dollars in new taxes hitting the private sector well before
COVID-19.
Ultimately, we want governments to spend our tax dollars wisely,
invest sufficiently in public sector infrastructure like education, and
support a vibrant, job-creating private sector that can generate tax
revenues to support those who need a leg up.
If they stall the business engine by creating conditions that make
business unable or unwilling to invest, ultimately, governments will run
out of tax revenues to fund vital public services. That’s what happened
in the 1990s under successive NDP governments. I lived here in that
decade, and it must not happen again.
It’s imperative that this government takes the necessary steps to
ensure a strong economy, led primarily by private, not public, sector
job growth. The government needs to reduce taxes and regulatory burden
and enable businesses to invest. Then businesses can create the jobs
which will be sustainable and provide a solid, reliable tax base for
public services. It’s only then that we can build an equitable society
that will be sustainable for generations to come.
J. Routledge: I rise to speak in favour of the motion: “Be it resolved that this
House agree that governments should work to build an equitable economy
for all — not just the wealthy few.”
I believe that the operative words in this motion are “work to
build.” I contend that unless governments take proactive measures to
distribute wealth fairly, wealth will continue to gravitate to those who
are already rich. How so? Why is it that wealth begets even more
wealth?
Well, the mechanics are pretty simple. The more discretionary
income one has — that is, what’s left over after you’ve paid for
necessities like food, clothing and shelter — the more money you have to
save and to invest. This, in turn, generates more capital, which, in
turn, can be reinvested. Since large sums of invested money yield higher
returns, we can expect that the growth in the net worth of the already
wealthy will outpace everyone else’s by a larger and larger factor with
each passing year.
That is exactly what has been happening. Wealth is accumulating at
the top, where it is needed the least. Between 2012 and 2016, according
to a study done by the Canadian Centre For Policy Alternatives, the net
worth of Canada’s wealthiest resident families rose by 37 percent, while
that of the middle class rose by only 16 percent, and much of that 16
percent was tied up in skyrocketing house values.
[11:20 a.m.]
Eighty-seven families now possess more than 4,000 times the wealth
of the average Canadian family.
If governments did nothing, wealth would accumulate at the top.
But what the previous government did was worse than nothing. They
actually accelerated the concentration of wealth in the hands of the
few. One of the first things the B.C. Liberal government did, when they
took office in 2001, was to cut personal income taxes by 25 percent.
They cut corporate taxes by 13.5 percent and then again to 10.5
percent.
By the time they left office, they were collecting more in MSP
than they were in corporate taxes. In fact, they doubled MSP premiums
and tuition fees and created a host of new flat taxes that ate up a much
bigger percentage of small paycheques than it did from the rich. Then
they held their thumbs on the scale when they introduced laws that
entrenched economic inequality. They created a two-tier minimum wage.
They rolled back the wages of B.C.’s lowest-paid health care workers,
and they amended labour laws to make it harder for working people to
organize or seek redress.
My colleagues across the aisle are trying to tell you that they
did this to stimulate the economy. They’re telling you that wealthy
British Columbians reinvested their windfall back into the hands of
average British Columbians by creating jobs. It’s called the
trickle-down theory. But in reality, that did not happen. According to
the B.C. Business Council, the growth in gross domestic product and
investment in machinery and equipment was higher during the 1990s, under
the B.C. NDP government, than it was in the 2000s, after the B.C.
Liberals came to power.
By 2017, when the B.C. Liberals left power, the richest 10 percent
held 56.2 percent of all the wealth in British Columbia, while the
bottom 50 percent held a mere 3.2 percent. That is a yawning and
dangerous gap. Every year, the United Nations reminds us that the
happiest, healthiest, safest, most socially cohesive countries are those
in which wealth is distributed most evenly. Yet the leader of the B.C.
Liberals continues to advocate for tax cuts for those at the
top.
In three short years, our government has taken deliberate,
proactive steps to build an equitable economy for all. We have
eliminated MSP premiums. We are laying the foundation for a universal,
affordable, accessible child care program. We introduced a 30-point plan
to make housing more affordable. The list goes on, and it’s a long list.
I trust that my colleagues on this side of the House will use some of
their time to add to that list. I’m proud of what our government has
already done to build an economy that is equitable for all, but we have
much more to do.
M. Bernier: You know, this morning when I was looking at this motion…. There’s
a typo. Obviously, the NDP government here forgot to add in that it’s
equitable for all “as long as you belong to one of our handpicked
unions.” I mean, I’m listening to the speakers before me from the
government side of the House, and it is quite interesting. I know
they’re just reading the notes that somebody wrote for them, but I
wonder if they actually believe what they are saying.
When you look at what’s happening right now, the economy was
already in decline before COVID even hit. That was almost entirely to do
with government and NDP policy coming in. So when you sit here listening
to the NDP members, who are standing up saying that they want to make it
equitable for all, it’s complete hypocrisy. You hear the member for
Surrey-Fleetwood — who is completely misleading the public with his
comments — saying that we would consider adding MSP back or increasing
taxes, when in fact the member that just spoke before me talked about
how everything we do is about decreasing taxes.
[11:25 a.m.]
Even the NDP can’t get their stories straight of what they think
we’re going to do. What they need to look at is what the economy looked
like when we were in government. We had the strongest
economy.
I’m not sure why the NDP thinks it’s bad to wake up in the
morning, to work hard, to try to get a job, to try to make your company
do better in order to employ more people. Somehow that’s a bad
philosophy with the NDP. God forbid that we actually have people who do
well in British Columbia. “Let’s have a policy. Let’s increase taxes.
Let’s look at every means possible to make everybody mediocre.” That
seems to be the NDP policy, rather than looking at what we did when we
were in government, making sure we had policies in place to ensure that
everybody had opportunity. That’s what we did.
When you look at now, what we’re hearing from companies…. I look
at rural B.C. Forestry, mining, oil and gas. Everybody, right now, is
suffering under the policies of this government. Nobody is standing up
and saying: “Thanks for increasing my taxes. I’m going to hire more
people. Thanks for including an employers health tax now that I never
had to pay before. Now I don’t know if my business can actually stay
profitable or even stay in business anymore.”
For this government to put a motion forward today and these
members to sit there and smirk and think that they’re actually doing
something for all of B.C…. They actually aren’t looking at the actual
numbers that are in place. You have 85 percent of the workers in British
Columbia who have been completely shut out of anything, of public sector
dollars being spent on projects, unless, of course, you join one of the
handpicked unions. Isn’t that convenient? “Let’s just make it beneficial
for all that donate to the NDP.” That seems to be the other part that’s
missing out of this motion.
I look at, again, companies right now that are struggling. Since
when — I guess under an NDP government — is it bad to be a company who
is trying to get ahead, to employ people? This government’s opportunity
right now is: “Let’s knock everyone down. Let’s….” Well, let me back up
for a second. I guess it’s okay to knock down all the companies and not
care if they employ people. Maybe the NDP’s policies are to ensure that
everybody just has government jobs. Maybe that’s what it is. “Let’s have
government jobs. We don’t need companies anymore.” Everybody can just
work for the NDP, whether you’re a union or a government
employee.
Look. At the end of the day, we want to ensure that we have
policies in place that will help people in all of British Columbia,
which is what we did when we were in government. When you look at the
economic drivers, you can see by almost every measure that was put in
place under the B.C. Liberal government that people were working, people
were thriving and companies were staying in business. Why? It’s because
we ensured that we had policies to help everybody so people could work,
could get ahead, put food on the table for their families. Too bad this
government, under the NDP, only wants to help a select few.
J. Rice: Earlier this summer a survey released by the Canadian Centre for
Policy Alternatives showed that three-quarters of British Columbians
want governments to build a better, more equitable, sustainable economy
after the pandemic is over.
Decades of negligence and patronage by the previous government led
to increasing inequality and a rising cost of living for the average
British Columbian. When we took office, British Columbians were facing
some of the highest housing prices in the world; increasing levels of
homelessness; a money-laundering scandal of massive proportions; a
ballooning ICBC debt that was adding costs to families across the
province; rising child care costs that were, particularly, keeping women
out of the workforce; a lacklustre climate action plan that ignored the
realities of climate science; and a growing overdose crisis that was
killing hundreds of our friends, our families and our
neighbours.
Since we took office in 2017, we have worked to make British
Columbia’s economy more equitable and life more affordable for all. In
our three years in government, we have funded over 16,000 new,
affordable child care spaces across the province.
[11:30 a.m.]
We have pushed back against the rising cost of housing by tackling
speculation and investing millions into affordable housing. We have
supported renters by making needed changes to the Residential Tenancy
Act and reducing annual rent increases.
We have brought ICBC from the verge of bankruptcy and made changes
to reduce premiums by an average of 20 percent.
We have put in place new prevention and harm reduction policies to
tackle the overdose crisis. We have eliminated health care premiums for
households to ensure basic health care is not a burden on the incomes of
our families.
We’ve added over $1 billion to public education funding. We have
made education and job training free for former youth and children in
care.
We have banned big money in politics, so our government works for
people not big donors.
We have raised income and disability assistance to support our
most vulnerable neighbours, following a ten-year freeze under the
previous government.
We have raised the minimum wage to $14.60 per hour to raise the
standard of living for workers and are scheduled to raise it to over $15
an hour next year. We have increased protections for workers and made it
easier for them to join a union that will protect their labour
rights.
We have made historic investments in public transit to ensure
people in both urban and rural communities have affordable
transportation options in their communities.
We have launched a public inquiry into money laundering to ensure
our housing market is working for people and not criminals.
We have invested in on-reserve housing to support Indigenous
communities forgotten by previous governments.
We have implemented the most ambitious climate action plans in
North America to ensure our children have a thriving and sustainable
economy that is not hobbled by catastrophic climate change
impacts.
Our government has been working towards a more just and equitable
economy since the day we took office. We have made life more affordable,
empowered workers and provided more support to the most vulnerable
members of our society.
The pandemic has thrown a wrench into many of our plans. But this
is not the time for our government or any government to stop striving to
build a more equitable economy.
The pandemic has put in sharp focus the fault lines in our
society. According to multiple studies, it has disproportionately
affected those who can least afford it. The economic fallout has hit
those in low-wage industries, workers without union representation,
women, young people, single parents, small business owners and recent
immigrants.
In rebuilding our economy after the pandemic, we cannot go back to
the old normal — when wealthy investors were allowed to avoid taxes by
laundering money through our housing market, when corporations were
allowed to pay poverty wages and disregard labour rights, when
governments worked for their political donors and not for the people who
voted them into government.
We need to create a new normal, where the economy works for
everyone and not just the wealthy few at the top. This pandemic has
given us an opportunity to reimagine what is possible for our society
and our economy. We must ensure that our new normal is based on equity
and justice.
We are committed to building a new equitable economy that works
for all. I hope that all the members of this House make the same
commitment.
G. Kyllo: It gives me great pleasure to rise in the House today to speak to
the motion provided by the member opposite.
In reading this statement, though, I think that this statement
could also be put forward:
be it resolved that this House agree that
government should work to build an equitable economy for all — not just
those that support the NDP.
When you have a look at what has happened to our economy in just
the last three years…. The current pandemic certainly is the single
largest economic hardship that this province has ever endured. The
members opposite like to remind and they speak quite often about the 16
years that the B.C. Liberals actually were in power.
But a bit of a history lesson. If we go back to the 1990s, the
decade of destruction, when British Columbia went from No. 1 in economic
growth to No. 10 — the first time that B.C. ever was actually a have-not
province — it was because of the poor policy decisions of the
administration sitting opposite.
[11:35 a.m.]
If you’re looking at hiring a board of executives for any
corporation on this planet, the most important thing is your business
plan. What business plan does this government have on growing the
economy and creating opportunity for all British Columbians? They don’t
have one. There is no jobs plan.
The B.C. jobs plan that was put together first in 2011 was a very
aggressive plan. It was very successful. We led the country in economic
growth and job creation, largely through the entire term that the B.C.
Liberals were in government. What has this government done? What have
they learned from the 1990s? Nothing. Since forming government, they’ve
increased red tape, increased regulatory burden. They’ve increased
taxation to the point that corporate taxation in British Columbia is now
50 percent higher than our neighbouring jurisdiction of Alberta — 50
percent higher.
We know that to grow an economy you need to attract capital
investment. With that capital investment comes the opportunity for jobs.
I think we would all agree that a healthy community is a working
community. When you have high rates of employment, you have people that
have the dignity of a job. When the economy goes the other way and you
see increased levels of unemployment — which is exactly the path that
this administration is going on — you’ll see increased family domestic
violence, you’ll see increased alcohol and drug abuse, and you’ll see
increased crime. That is what this administration is going
for.
I am very proud to stand as a B.C. Liberal and look to the record,
where we saw significant economic growth. I agree that we need to have
an equitable economy that is for all British Columbians. But you don’t
do it by penalizing the select few that actually invest capital and
bring dollars to this province. What we have seen in just the last few
months…. It was only about a month ago that this current administration
came forward with their economic update. They announced on, I believe,
the 14th of July, a $12.5 billion deficit.
That’s a huge amount of money that is going to add about $2,600 in
increased debt on the backs of every British Columbian. Not eight days
later…. Now this is a plan, an update, the fiscal update we waited for,
for three months. Not eight days after announcing a $12.5 billion
deficit — this is the planning that happens on the other side — they
added another billion. Another thousand million dollars in debt was
decided upon by this government not eight days after coming forward with
their big fiscal update.
We have a Premier of this province that has chaired the Economic
Recovery Task Force for over four months. What have we heard from this
economic task force that apparently meets every week? What have we heard
from them? Nada. Not a thing. The tourism sector has been hardest hit of
any economic sector in our entire province. What has this government
come forward with, as far as an economic plan to help this sector that’s
struggling harder than any other sector in the province?
Nothing.
This is a management that is stuck in ideology and is not
undertaking any efforts to actually grow the economy and to attract
capital investment to this province. I am very disappointed with the
direction that the current administration is going under. With that, I
will take my seat.
J. Sims: It is my pleasure today to rise and speak in favour of the motion:
“Be it resolved that this House agree that governments should work to
build an equitable economy for all — not just the wealthy
few.”
We are at a pivotal point. As the previous member mentioned, we
are in the middle of a pandemic, a pandemic like one that none of us
have experienced — neither governments, nor individuals, nor our
business community. I’m a great believer that out of every challenge
comes opportunities. I believe this is an opportunity for us, in the
middle of this health challenge, health pandemic, to re-vision and
reimagine how we want our world to look like.
[11:40 a.m.]
One of the things, the phrases, I heard over and over again,
during the health pandemic is: “We are all in this together.” I
absolutely believe this, because we knew that COVID-19 did not
differentiate between your socioeconomic, between your cultural, your
ethnic, your region. The COVID-19 virus has no favourites. Because of
that, we all had to work together and continue to work together to take
on this virus and to make sure we mitigate until a solution is
found.
Well, let’s apply that. Let’s apply that to our economy. In our
economy, if we were all, on all sides of the House, to see that we are
in this together and that government has a role to play to make sure
that everybody who lives in our society has a place, has a job and has a
decent living and to make sure that those who go to work are not the
working poor.
Under the 16 years of the B.C. Liberals, we in B.C. had the
second-highest differentiation between the rich and the poor, the haves
and not-haves. That’s because for 16 long years, they failed to look at
the full spectrum of the people who live here in B.C.
So if we apply that lens — we are all in this together — then I am
very proud of the work that our government has done on this side of the
House to make sure that when we’re looking into the future, when we’re
looking at our economy, we are putting people in the right in the
centre.
Our economy has to be about shared prosperity for everyone, where
people are the economy. People are not the enemy of the economy. Whether
they’re the top 1 percent or the other 99 percent, they are the
economy.
During this COVID pandemic, we realize the value of our front-line
workers. We woke up one day and realized how critical the workers were
who worked in our grocery food supply chain. We realized the importance
of the health care workers, who are going into our seniors’ homes and
are putting their lives at risk. We realized the importance of all those
who are ensuring our food security. Yes, we realized during that time —
and I heard it from a wide range of people; you know what — that we’re
not paying these people enough.
Well, under the 16 years of Liberals, minimum wage was kept
artificially down. As a matter of fact, in many sectors, they went one
step further. In the health care sector, for HEU, we saw their wages
being slashed. What we saw was contracting out and all kinds of things.
In education, we saw attacks on education and the underfunding of
education. We saw ICBC and B.C. Hydro — money being taken out of
them.
What we saw was an abject failure on the part of the previous
government to invest in much-needed infrastructure. Having a good public
transit system, having hospitals in communities that need them and
having schools for kids to go to are not luxury. They are a necessity.
Health care, education — absolute necessity. Yet we saw an extreme
underfunding in both those areas.
So not only did our kids suffer, and those who went into health
care, but that failure to invest in child care and invest in education
didn’t help. They balance their books by selling off valuable land —
land that could have been used for schools and hospitals
today.
S. Cadieux: I’m glad to speak to the motion before the House today. I’m
surprised how much time the NDP speakers have spent on our time in
government instead of their own. But I’ll do the same, because during
our time in government, we worked hard to make our economy more
equitable and provide greater opportunity to those who needed it most. I
spearheaded a number of those initiatives.
The single-parent employment initiative, for example, which
started in September 2015, was designed to remove barriers for single
parents on income and disability assistance. It wasn’t right that people
were essentially trapped in the welfare system, so we attempted to
change it.
[11:45 a.m.]
Within two years, 4,554 people had taken part, developing new
skills and opening opportunity for their future. I’ll note the
government continued this program. Kids from care, a highly
disadvantaged group, needed supports to build their lives, so I worked
with universities like VIU to pilot the tuition waiver program to prove
these kids just needed an opportunity, and it was worth investing in.
Government expanded on that, and I’m glad they did.
People with disabilities on assistance were challenged by the
system and still are, but I introduced an annualized earnings exemption
for British Columbians receiving disability assistance so those who
could work, fluctuating throughout the year, could keep that money. We
invested in labour market programs so that more than 27,000 people with
a disability could find work. We launched the presidents group to focus
on inclusion in the workforce.
There’s so much more to do to improve these systems, but all we’ve
seen from this government so far is talk and a continuation or expansion
of our initiatives.
Highlighted by this pandemic, we can’t truly have an equitable
economy until we close the gender pay gap. This spring I introduced the
Equal Pay Reporting Act, and the government has thus far not decided to
call the bill for debate, which is disappointing from a government that
wants to be perceived as taking these issues seriously. Unfortunately,
it’s just one of many examples of contrast between what the government
says it will do and what they actually put into action.
They’ve droned on about us not caring about minimum wage. Well, I
increased it as minister, and so did my successors. We reduced child
poverty faster than their so-called plan targets to do. They claim we
didn’t care about rising house prices, but gee, housing prices are up
and so are rents, on their watch. They’ve added thousands of people to
the welfare rolls, just like happened during their last time in
government.
They say how terrible things were under us, yet British Columbians
re-elected us five times. We’re in a pandemic. They say we need to build
back better. Let’s do that. I am in favour of that. But to do that, you
need a plan, and a plan is something we just don’t have from this group.
Saying you support a more equitable economy is one thing, but we have
yet to see government take real steps towards greater equality and
opportunity.
I’m tired of the insinuations that the NDP care and we don’t. Our
track record proves otherwise. They talk; we act. That’s the difference.
The NDP are now standing on the soapboxes we built and have done nothing
yet than to expand on our initiatives. I haven’t heard a unique idea yet
from that side of the House. But I’m waiting, and so is British
Columbia, because opportunity for all is possible in this province. It’s
essential, and we can deliver it, but it takes a lot more than words and
slogans.
When I’m hearing the members on the opposition repeat, speaker
after speaker, that now is not the time to turn back the clock, that
sounds a lot more like electioneering to me than it does doing. We need
a plan for our economy, for everyone, and we need it now.
M. Dean: I am very honoured to rise today to talk in favour of this motion.
We all know that for far too long in our province, only the wealthy few
at the top benefited, while good opportunities became further out of
reach for most.
People deserve to have an economy and government that works for
them, not one that will take the benefits of their hard work and give it
to the top 2 percent while making it harder to get by year after year,
like Mel from Colwood. A single mom, she works three jobs to get by, and
she still had to consolidate her debt with a financing agency just to
stay afloat.
[Mr. Speaker in the chair.]
It’s critical for workers to have affordable child care to be able
to actively participate in the workforce, especially women. Well, the
previous government scrapped universal child care, cut subsidies for
low-income parents, put child care out of reach thousands of British
Columbian families, forced women to leave or stall their careers, maybe
take part-time work, accept lower-paid work or lower their career
ambitions.
The B.C. Liberals cut the child care operating fund by 27 percent
in 2007, sending less help to existing child care providers and
cancelling subsidies to new providers. For Steve and Jan who had four
kids, with two in full-time daycare, this meant additional costs of
almost $160 a month.
[11:50 a.m.]
Under the B.C. Liberals, B.C. became the province with the largest
wealth gap in the country and the second-highest income inequality.
Well, our government is committed to sharing prosperity for everyone in
B.C.
Before COVID-19, we were making progress on the things that people
care about. People are the economy. We’ll build B.C. back stronger, and
everyone can have a good job and a secure future.
We’ll build an economic recovery around every British Columbian,
not just the richest 2 percent. We are helping people get training and
education that they need for good jobs. We’re investing in training
women in trades so that they can also access those family-supporting,
well-paid careers.
The importance of child care has risen to the spotlight during
this crisis. Without child care, our economy will not be able to fully
recover. With child care, we’re going to be able to build an equitable
economy for everybody. We have recognized this issue across the whole of
the country, and B.C. is recognized as a leader in this area because we
have already spent three years investing in a child care
system.
We’ve invested a record $1.3 billion in child care over three
years, building the foundation for a universal child care system that
will give B.C. parents access to affordable, quality child care when
they want or need it. This is especially important now as so many women
are displaced from the workforce.
We are creating over 10,400 new licensed child care spaces. We’ve
launched the fee reduction initiative and the affordable child care
benefit. This is saving many families more than $19,000 a year. We have
over 2,500 prototype $200-a-month universal child care sites. We’re
providing wage enhancements for early childhood educators, and we’ve
expanded Aboriginal Head Start programs.
Inequality makes people who are systematically disadvantaged more
vulnerable to the impact of a disaster like COVID-19. Women are at
higher risk of long-term economic insecurity as a result of this
pandemic because of their overrepresentation in part-time work and
highly affected sectors like health, education, home support and service
industries. Women make up 62 percent of minimum-wage workers in B.C.,
and almost 82 percent of liquor servers are women.
In addition, economic insecurity associated with the pandemic is
more likely to be compounded by other factors and amplified for
Indigenous women, immigrant and racialized communities, LGBTQ2S+ people,
youth, and people with disabilities. The youth unemployment rate is an
overwhelming 29 percent, and women make up more than 60 percent of the
job losses in the hardest-hit sectors.
As we restart our province, we have an opportunity to build an
equitable economy that benefits everyone, not just the wealthy few. As
B.C. works to build its COVID-19 economic recovery plan, it’s vital that
everyone, especially those who face disadvantages, are supported and
given the best possible opportunity to be part of B.C.’s restart. We
cannot go back.
M. Dean moved adjournment of debate.
Motion approved.
Hon. H. Bains 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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