British Columbia Committee Hansard (Blues) — Wednesday, May 8, 2019, p.m., Issue 251 (41st Parliament, 4th Session) (20190508pm-CommitteeC-Blues)
20190508pm-CommitteeC-Blues
British Columbia — Debates (Hansard)
Fourth Session, 41st Parliament
(2019) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Wednesday, May 8, 2019
Afternoon Sitting
Issue No. 251
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business
Introductions by Members
Introduction and First Reading of Bills
Bill M213 — Prohibiting Driving with Illegal Firearms Act
M. Hunt
Statements (Standing Order 25B)
Laida Falsetto
J. Routledge
Sherry Elwood
L. Reid
Economic development
R. Glumac
Peace River area grandmothers of MLAs
G. Kyllo
Peers Victoria Resources Society
M. Dean
Peace River area grandmothers of MLAs
D. Davies
Oral Questions
Action on gas prices
A. Wilkinson
Hon. J. Horgan
J. Johal
Protection of old-growth forests
A. Olsen
Hon. D. Donaldson
Action on gas prices and investigation of pricing practices
S. Bond
Hon. B. Ralston
J. Thornthwaite
Action on gas prices and government position in Alberta court case
M. de Jong
Hon. B. Ralston
Action on gas prices
P. Milobar
Hon. B. Ralston
Point of Privilege
(continued)
M. Polak
Hon. M. Farnworth
Orders of the Day
Committee of Supply
Estimates: Ministry of Finance (continued)
A. Weaver
Hon. C. James
A. Olsen
S. Furstenau
T. Redies
I. Paton
T. Wat
S. Bond
Report and Third Reading of Bills
Bill 18 — Workers Compensation Amendment Act, 2019
Committee of Supply
Estimates: Ministry of Finance
(continued)
Hon. C. James
T. Redies
S. Bond
Report and Third Reading of Bills
Bill 29 — Miscellaneous Statutes Amendment Act, 2019
Proceedings in the Douglas Fir Room
Committee of Supply
Estimates: Ministry of Education (continued)
J. Thornthwaite
Hon. R. Fleming
D. Davies
P. Milobar
Committee of the Whole House
Bill 18 — Workers Compensation Amendment Act, 2019
J. Martin
Hon. H. Bains
Bill 29 — Miscellaneous Statutes Amendment Act, 2019
P. Milobar
Hon. G. Heyman
M. Lee
Hon. D. Eby
Proceedings in the Birch Room
Committee of Supply
Estimates: Ministry of Municipal Affairs and Housing
Hon. S. Robinson
T. Stone
N. Letnick
S. Thomson
J. Thornthwaite
M. Lee
S. Sullivan
WEDNESDAY, MAY 8, 2019
The House met at 1:31 p.m.
Acting Clerk of the Legislative Assembly: Good afternoon, Members. Pursuant to Standing Order 12, the House is
advised of the unavoidable absence of the Speaker.
[R. Chouhan in the chair.]
Routine Business
Prayers.
[1:35 p.m.]
Introductions by Members
J. Brar: Thank you, hon. Speaker. First of all, I would like to wish you well
for this good day in that chair.
I’m really pleased to welcome our hard-working and dedicated team of
constituency assistants in the gallery. Our CAs are in town this week for
their annual conference, and they’re here from across the province. They do
a super job serving the people of British Columbia, assisting them on a
range of issues. They listen to painful and emotional stories of
constituents with patience and respect. They change lives by resolving
complex and difficult cases for people who are going through a difficult
time in their lives.
They’re here today in the gallery to watch our thoughtful and
respectful debate during question period. I ask every member of the House to
please make all the CAs welcome today in question period.
Hon. J. Darcy: It’s a great pleasure to welcome a guest from New Westminster who is
here today. She is a school trustee for school district 40. Her name is
Gurveen Dhaliwal. She ran for election to school trustee last fall and was
elected by a good margin. She’s doing tremendous work there as part of the
team and is one of the key leaders in ensuring that New Westminster school
district 40 became the first school district in the province of British
Columbia to keep the Period Promise and ensure that there were free
menstrual products for girls in our schools in New Westminster.
Welcome, please, Gurveen Dhaliwal.
J. Isaacs: I’m pleased to welcome and introduce Diabetes Canada, who joined me
and my colleagues John Rustad, Linda Reid and Shirley Bond for lunch today.
We were so pleased to have the opportunity to meet with Russell Williams,
senior vice-president of mission, and B.C. advocacy representatives Mario
Miceli and Edward Sem.
We heard today that one out of three British Columbians who live with
diabetes and prediabetes have an increased risk of stroke, heart attack,
kidney disease, amputation and vision loss and that B.C.’s diverse
population of Asian, South Asian, southeast Asian and Indigenous are at
increased risk for diabetes.
Would the House please join me in welcoming these great advocates who
support those living with diabetes and who work to prevent the projected
increase for British Columbians.
Hon. B. Ralston: Joining us in the member’s gallery this afternoon is His Excellency
Roberto Rodríguez Arnillas, ambassador of Peru to Canada. The ambassador is
here in British Columbia to welcome a Peruvian navy tall ship, a training
ship that arrives in Vancouver harbour tomorrow. The ambassador will meet
with a number of British Columbia officials today, including myself, and I
will be pleased to visit the ship with him tomorrow evening. Would this
House please make the ambassador of Peru feel very welcome here.
M. Hunt: I have two introductions. First of all, throughout the afternoon we’ll
see three groups of students from Surrey Christian School in my riding who
will be here — part of their social studies.
[1:40 p.m.]
Also, it’s my pleasure to introduce three members of Wake Up Surrey
who are in the House today: Gurpreet Singh Sahota, Sarbjit Singh Sandhu and
Monte Ball. These gentlemen have been instrumental in pushing for new tools
and strategies to deal with the escalating guns and gang violence in our
community. I’d ask the House to make them all welcome.
Hon. D. Eby: Joining us in the House today is Fred Jay. He’s a constituent of mine
from Vancouver–Point Grey, up there in the gallery. He is a director on the
Kerrisdale Community Centre board. He also sits on the seniors council for
the Kerrisdale Community Centre. He’s very proud of the lunch program at the
centre for seniors, which he’s a part of. It runs six days a week, with
$58,000 worth of annual subsidies for seniors lunches. Would the House
please make Fred Jay feel very welcome.
Hon. J. Sims: There are people who work in our offices right here in Victoria who
make our life a lot easier. They make sure we go to the places we’re
supposed to. They take care of us. My administrative assistant Holly Hubley
is with us in the House today, as well as my executive assistant, Mindy
Bansal. Please make them both feel welcome.
T. Wat: It is a great pleasure to welcome my two friends from Melbourne,
Australia — Zhuofan Zhen and his wife, Qing Lin — as well as two Richmond
friends, Weinan Lin and Kitty Huang, to the Legislature. Zhuofan is very
actively involved in the Chinese-Australian community in Melbourne. He was
one of the founding members of the Lions Club of Melbourne Sino Innovation
in 2015 and is the club’s current president. He has come to Vancouver to
attend the Vancouver Chinatown Lions Club’s 65th anniversary.
When I visited Melbourne last summer, Zhuofan took me on a tour of the
Museum of Chinese Australian History, right in the heart of Chinatown. The
museum is housed in a late 19th century five-level warehouse, which
showcases the heritage, history and culture of Australia’s Chinese
community. I was very impressed with all of the exhibits and how the museum
is managed and showcased to local Australians and tourists very effectively.
Zhuofan’s Lions Club is now working with the Museum of Chinese Australian
History on a world tour of the stories of Chinese-Australians.
Now that our Ministry of Tourism, Arts and Culture is planning on
establishing a Chinese-Canadian museum, we should learn from the successful
experience of the Melbourne museum, which was established more than 30 years
ago, in 1985, and has been running very successfully.
Please join me in welcoming my friends from Melbourne and from
Richmond.
N. Simons: Hon. Members, on behalf of the Speaker, I have the pleasure of
welcoming 15 new staff members from the parliamentary education office
today. The member for Boundary-Similkameen and the member for Saanich North
and the Islands had an opportunity, with me, to meet with them.
Over the next four months, we expect over 100,000 school children to
visit this place from across B.C. and around the world. It will be the
responsibility of the summer tour guides and the Parliamentary Players to
explain to our visitors about the role of MLAs, the architecture of these
beautiful buildings and the history of our province.
You’ll certainly notice the players, as they will be in period
costumes, bringing our parliamentary history to life through their
portrayals of Nellie Cashman; Queen Victoria; Mary Ellen Smith; Francis
Rattenbury; my favourite, Thomas Uphill; and of course, Hamish the
stonemason.
Joining us in the gallery today are Isabelle Ava-Pointon, Stephen
Bagan, Rachelle Bait, Hannah Christensen, Aidan Gerrero, Olive Joiner,
Teeana Lackner, Ellen Law, Gabrielle Parent, Douglas Peerless, Regina Rios,
Daniel Saretsky, Aaron Smail, Taryn Yoneda and Alex Zhang.
Would the House please join…. Well, let’s just all welcome them and
wish them a happy summer.
Hon. C. James: We have four staff who are visiting us today from the corporate
services division of the Ministry of Finance. They are Cindy McKinstry,
Debra Janke, Patricia Laird and Saija Poldrugovac. Would the House please
welcome them and also thank them for their commitment to public service on
behalf of all British Columbians.
[1:45 p.m.]
S. Cadieux: I have two friends in the gallery this afternoon, both from the south
Island, so I can’t claim credit for them as constituents — but two
friends.
Charlene Froom and I go way back. I was going to say we were old
friends, and then I realized that that would be insulting to both of us. We
are good friends, and our work goes back many years to when I was with the
Spinal Cord Injury Organization of B.C.
With her is Capt. David Willows. He is a father of a son with a
disability. Both are tremendous advocates, and they’ve ramped up their
advocacy since the change to the building code in the fall with the change
in parking regulations.
I would like the House to make them welcome and thank them for their
efforts.
R. Singh: I have two sets of introductions today. First, I would also like to
welcome the members of the B.C. advocacy group for Diabetes Canada — Russell
Williams, Mario Miceli and Ed Sem — who are in the gallery today. We had a
very productive meeting with them earlier, and I really want to thank them
for their advocacy. Would the House please make them feel very
welcome.
Also in the gallery is a great friend and activist, a volunteer for
not only my community office but also many Surrey offices, Margaret Barron.
She’s here in the gallery. She’s a really, really strong
supporter.
Margaret, I would really like to thank you for all the great work you
do.
I would really like the House to welcome her.
Hon. D. Donaldson: I have the great pleasure of introducing three family members today
who are attending question period. The first is Anne Donaldson, my wife,
from Hazelton, who’s here helping out with taking care of grandchildren
while our daughter-in-law attends a conference.
The second is our daughter-in-law — more like a daughter to us — Cyra
Yunkws, who’s a municipal councillor in Warfield. She was raised in
Hazelton, and she’s also a constituency assistant to the member for Kootenay
West.
The third, last but not least, is an extended family member, I’ll say,
Renée Paquette, who’s celebrating her 12th birthday today. She’s in the
gallery. She’s from Hazelton. Her mother is here as well — Julie Maitland,
who is a constituency assistant in Hazelton.
Would the House please make all of them welcome.
Deputy Speaker: Members, just a reminder that at 1:55 p.m., most cell phones will
receive a test alert notification. So don’t panic. It’s just a test alert
notification.
Introduction and
First Reading of Bills
BILL M213 — PROHIBITING DRIVING
WITH ILLEGAL FIREARMS
ACT
M. Hunt presented a bill intituled Prohibiting Driving with Illegal
Firearms Act.
M. Hunt: I move that a bill intituled Prohibiting Driving with Illegal
Firearms Act, of which notice has been given in my name on the order
paper, be introduced and read for the first time now.
The Prohibiting Driving with Illegal Firearms Act addresses the
transportation of illegal firearms in British Columbia, which is often
tied to organized crime. If passed, this bill would amend the Motor
Vehicle Act and make it an offence to drive with an illegal firearm on a
motorway, an idea that was proposed in the B.C. Task Force on Illegal
Firearms report of 2017. Anyone found guilty of driving in possession of
an illegal firearm would face up to six months in prison and fines up to
$10,000, in addition to a one-year driver’s licence
suspension.
This bill addresses concerns raised by our law enforcement
officers, some of the finest women and men, who work every day to keep
us and our loved ones safe.
Motion approved.
M. Hunt: I move that the bill be placed on the orders of the day for second
reading at the next sitting of the House after today.
Bill M213, Prohibiting Driving with Illegal Firearms Act, introduced,
read a first time and ordered to be placed on orders of the day for second
reading at the next sitting of the House after today.
Statements
(Standing Order 25B)
LAIDA FALSETTO
J. Routledge: Every year the city of Burnaby recognizes one of its citizens for
outstanding service to the community. This year it was Laida Falsetto.
Laida teaches at Byrne Creek secondary, where she mentors, leads and
champions some of our community’s most vulnerable youth.
[1:50 p.m.]
The student population come from 80 different countries and speak
70 different languages. More than 50 percent of them do not speak
Ten years ago Byrne Creek discovered that many of their students
employment. So they created PAWS, Paving A Way for Success, that
supports refugee students to thrive in Canadian society. Laida became
part of it.
When she accepted her award, Laida told a story. She was leading a
discussion in PAWS and invited her students to brainstorm the meaning of
success. “Owning a car,” said one. “Owning a house,” said another, and
so it went. She noticed one young man who was not participating in the
discussion, so she asked him: “What’s going on?” He replied: “I don’t
agree with anything they are saying, I think these
definitions are
selfish.”
For him, he said: “Success means going back to my home country to
build a school.” That totally changed the conversation. They all started
talking about the importance of helping others.
Laida could have chosen to tell so many other stories, like how
she packs food hampers for families in need or how she spends countless
hours mentoring the student government. Instead, she chose to tell a
story about somebody else, about a student who redefined success and
influenced the thinking of his peers.
I would add that that this happened only because she saw him and
encouraged him to speak up. That story says a lot about who Laida
Falsetto is and why she’s Burnaby’s Citizen of the Year.
SHERRY ELWOOD
L. Reid: I rise today to recognize an outstanding educator. Sherry Elwood’s
career in public education spans 36 years, including teacher, school
administrator, assistant superintendent and superintendent.
In each of her roles, she’s been characterized as passionate about
public education and courageous and determined in all interactions. She
has modelled relentless dedication and keeping what is best for students
at the heart of every discussion and every decision.
Sherry Elwood has been a superintendent of schools for school
district No. 38, Richmond, since 2016. She spent the previous six years
in school district 71, Comox, as the superintendent of schools. She was
there with former MLA Don McRae.
Sherry has over 20 years of progressive, senior administrative
leadership within the school system of British Columbia. She has
demonstrated an ability to work as a collaborative leader, innovator,
problem solver and mentor for students, parents and staff alike. She’s a
former president of the British Columbia School Superintendents
Association.
Richmond is better for her leadership. I wish her many magical
moments and much intellectual stimulation in all future endeavours.
Sherry is an incredibly bright and talented leader who has set the bar
for Richmond.
ECONOMIC DEVELOPMENT
R. Glumac: We have a vast province and a wide diversity of communities and
regions. Each one has distinct economic development needs and
aspirations.
It’s important to highlight and celebrate the many economic
development achievements across this province. That’s why we are proud
to proclaim this week, May 12 to 16, as British Columbia Economic
Development Week. There will be events across the province organized by
the B.C. Economic Development Association, including workshops and
courses and the release of the Towntalk report, which presents issues
facing B.C. communities and solutions recommended by peers.
Every day across B.C. local leaders, community organizations,
local, regional and Indigenous governments work to respond with
innovation and creativity to the economic development needs of the
communities they serve. It’s important that we share the great
prosperity of this province that comes from an economy that is strong,
innovative and resilient — an economy that takes advantage of emerging
opportunities to grow a vibrant tech sector, an economy that directly
acknowledges and tackles challenges of climate change, an economy that
recognizes and supports the strengths of all sectors.
Our government is committed to creating good jobs in every corner
of this province and ensuring that people from every background can
reach their full potential.
We thank all those working in the economic development field for
their passion and commitment to strengthening their communities and
ensuring prosperity for future generations.
[1:55 p.m.]
PEACE RIVER AREA
GRANDMOTHERS OF
MLA s
G. Kyllo: A coincidence is an example of two things relating to each other
or having some connection that was unexpected. Today I have a rather
interesting coincidence to share with this House. It begins with my
grandmother, Edith Kyllo, an amazing woman who had a significant impact
on my life.
Born and raised in Vancouver, Edith became a school teacher but
always had the desire to be a pioneer. She took a job teaching in
Hudson’s Hope, where life was, well, just a bit more primitive. She
taught in a one-room schoolhouse with a small living quarters at the
back. Grandma lived without electricity, hauled her own water, cut and
split her own firewood, and spent a lot of time working with her
hands.
She taught grades 1 through 8, shaping young minds long before the
creation of the term “class size and composition.” She also helped form
the North Peace Historical Society, based in Fort. St. John, and was
asked by her friend Marguerite Davies and Cora Ventress to collaborate
on a book paying tribute to the pioneers of the Peace.
In 1973, Edith, Marguerite and Cora co-authored The
Peacemakers of North Peace , a compilation of history and
biographies of pioneers from areas north of Peace River. What Edith and
Marguerite didn’t know at the time was the connection their grandsons
would forge decades later, because Marguerite Davies’s grandson sits
right beside me in the Legislature every day.
What are the chances that of the small percentage of people even
elected to this place, their two grandsons would be among them and that
they would also happen to be seated next to each other in the people’s
House? It’s a strange coincidence, but we both believe our grandmothers
would be very proud to see us here, just as we are so very proud of them
and their many accomplishments, including co-authoring the book The
Peacemakers of North Peace .
PEERS VICTORIA RESOURCES SOCIETY
M. Dean: I’m very proud to rise today to shine a light on some innovative
and effective work in our region that supports some of the most
vulnerable in our community. Peers, which is an innovative, multiservice
grassroots agency, was established in 1995 by, with and for sex
workers.
In partnerships, Peers provide an array of outreach and drop-in
harm reduction and support services, alongside education and employment
training for current and former sex workers. Their night outreach is a
community-based service located on the Victoria stroll, and they also
offer an outreach program for men and trans individuals in the sex
industry. They also have a bad-date sheet and work with the Victoria
police in reporting violence against persons in the sex
industry.
Recently they were successful in their applications for three
crime prevention and remediation grants to enhance their programs, like
their Indigenous SACRED — Indigenous sex workers acknowledging, creating
and redefining experiential diversity — project, which will offer
monthly group meetings that focus on sharing a meal and cultural
knowledge in support of a holistic healing model; and their pilot
clinical counselling service for those currently or formerly involved in
the sex industry who have experienced sexual and/or intimate partner
violence.
They’re also going to provide a small business training program,
which will provide a flexible option to enhance economic security for
women transitioning from the sex industry. The program provides a
comprehensive curriculum designed to enable participants to launch their
own small business.
I’d like to take this opportunity to thank everyone involved with
Peers in support of these critical services.
PEACE RIVER AREA
GRANDMOTHERS OF
MLA s
D. Davies: I’m honoured today here to offer a bit of a follow-up, or maybe
part 2, to my colleague from Shuswap.
[2:00 p.m.]
My grandmother, Marguerite Davies, was living in Comox as my
grandfather was posted there in the air force during the Second World
War. After the war, she and her young family headed north, in 1949,
after hearing of the many opportunities in the Peace country. She
arrived on the train with her family to start a new life in the mostly
unheard of village of Fort St. John, population 1,400. Fort St. John was
not much more than a main street. If you can believe, there was only one
lawn in the whole community, and the only pavement was at the airport.
After being in Comox and from Ontario originally, this was quite
different than what she was used to.
My grandmother quickly got engaged in the community. She was
active in the Presbyterian Church, the literacy club and the local
writers guild, writing poetry and plays and winning a provincial award
for best original script. Almost all of her writings were to do with the
North Peace.
In September 1963, a group of residents — including Edith Kyllo,
grandmother of my colleague for Shuswap — were interested in preserving
the history of the north. They organized themselves as the North Peace
Historical Society, and the first meeting was held at my grandparents’.
Years later the group built the North Peace Museum, which is still
standing today. My grandmother was also a founding member of the public
library as well as an active member of the Women’s Institute. Over time,
my grandmother and the member for Shuswap’s grandmother became good
friends.
My grandparents were stellar people and dearly loved Fort St.
John. With the love of the Peace and its rich history, my grandma wanted
to preserve that history and, similarly, so did Edith. Working with some
other friends from the area, including Cora Ventress, they worked
together by compiling many stories and biographies of the
Peace.
As mentioned, they created the book in 1973, Peacemakers of
the North Peace . It captured our history forever. But more
importantly, it captured the incredible stories that the Peacemakers
made that make our community today.
As stated, it is quite amazing that here we are 50 years later, my
colleague and I, sitting in this chamber, a set of grandchildren from a
couple of amazing grandmas that many years ago created an incredible
lasting legacy today.
Deputy Speaker: Members, generally speaking, props are not allowed to be used in
the House. But in this case, both members had the permission of the
Chair.
Oral Questions
ACTION ON GAS PRICES
A. Wilkinson: Another day, another day of record gas prices. Every time this
comes up in the media, the Premier seems to go off track and come up
with a new excuse for why nothing can be done. In the past 30 days,
we’ve catalogued at least eight excuses, none of which have amounted to
anything in terms of consumer satisfaction or getting a better deal at
the pumps.
The position he took a year ago was that we’ve talked about a
range of options. A very simple question. It should be a straightforward
answer. It’s a matter of factual record of what happened a year ago.
Premier, what were those options?
Hon. J. Horgan: The opposition didn’t take the opportunity to ask me this question
yesterday. I would have, at that time, advised them that I spoke with
the Prime Minister, the owner of the Trans Mountain pipeline, about
getting more refined product into that pipe so that it would, through
supply and demand…. Again, a principle not unknown to members on that
side of the House — that an increase in supply would see a decrease in
prices. I think that that’s in the interest of the people of B.C., in
the interest the people of Canada, and so does the Prime
Minister.
Deputy Speaker: The Leader of the Opposition, supplemental question.
A. Wilkinson: Here we go again. Apparently, the Premier didn’t bother to read
the Globe and Mail over the weekend, where Justine Hunter made
it very clear what the commercial terms are on pipelines. Those who own
the pipes do not control what goes into them. The shippers own what’s in
the pipe, and those are oil companies controlled by the government of
Alberta, with which the Premier has picked a big fight. So that excuse
goes out the window.
Premier, you’re continuing to make it up as you go along. You’ve
claimed you have a range of options. A month ago, you said you’d have
your deputy look for options. Now you say you want to get the basic
facts straight from the B.C. Utilities Commission.
Why not just make a phone call to Edmonton and ask for the
information?
[2:05 p.m.]
Hon. J. Horgan: It’s news to me that the government of Alberta controls the oil
companies that operate there. That’s news to me. I was unaware of
that.
If that is in fact true, then I’m sure the Utilities Commission,
when they’re laying out a common set of facts so that we don’t have the
partisan hectoring we’ve been having over the past number of weeks…. We
can start with the same facts, the same concerns, and focus in a united
way, as the…. I know the House Leader wants to get in on this as well,
but the Leader of the Opposition…
Interjections.
Deputy Speaker: Members, one speaker at a time, please.
Hon. J. Horgan: Thank you, hon. Speaker.
…sent me a letter not a week and a half ago saying, “Let’s all
work together on this,” and I agreed with him entirely. But it didn’t
last. The sentiment in the letter didn’t last as long as the ink was wet
before, again, the partisan hectoring started.
I would argue that getting a common set of facts from an
independent regulator that will allow British Columbians to understand
how we got here, how a 40-cent increase in the price of a litre of
gasoline could happen over a number of months without any other
intervention…. I think that’s useful information. I thought the Leader
of the Opposition would like to see that.
Deputy Speaker: The Leader of the Official Opposition on a second
supplemental.
A. Wilkinson: Well, let’s get a few basic facts straight. The Premier doesn’t
have to hire anybody or pay the Utilities Commission to do it. Oil comes
out of the ground in Alberta. It goes through a pipeline to B.C. We buy
it. Fairly straightforward.
Premier, the problem is that the motorists of British
Columbia….
Interjections.
Deputy Speaker: Members. Members, let’s listen to the question, please.
A. Wilkinson: The drivers, the motorists, people in British Columbia who use
80,000 barrels a day of gasoline are waiting for some answers about
relief. You turn to them with eight different excuses, nothing of
consequence at the pumps, and now the plan, the program, the
cabinet-level decision, is: we’ll get the basic facts.
When are drivers going to get some relief from this government
when you know the only answer is to make peace with Edmonton and cut
taxes?
Hon. J. Horgan: The party that increased taxes by 15 cents over their time in
office is now saying that taxes are the problem. Where were you in 2007?
Where were you in 2010?
The part that’s absolutely scintillating in that question is the
Leader of the Opposition says that it comes out of the ground, goes into
a pipe and we buy it. That used to be the case when refined products
were on the ascendency rather than on the decline. What’s coming through
that pipeline now, what will be assured to come through the pipeline if
it’s twinned, is diluted bitumen, and the last time I checked, not even
a car from Quilchena could use diluted bitumen.
J. Johal: Now, it turns out that when the pain-at-the-pump Premier told
British Columbians a year ago that he was considering a range of
options, even a member of his own caucus fell for it. On Monday, the
member for Powell River–Sunshine Coast said: “You ask: what did the
government consider? I’m not in the cabinet room, but they probably
considered every option…and they probably dismissed them.”
Can the Premier confirm if this is true and tell us what those
options were?
Hon. J. Horgan: I take counsel and guidance from the member for Powell
River–Sunshine Coast all the time. What I will not do is continue to
play a partisan finger-pointing game with the official
opposition.
These are people who were…. Their founding principles are free
enterprise. You hear it everywhere they go, “We’re the free enterprise
party,” but not when it comes to being in opposition. Now it’s: “How can
we get a headline, and how can we get a billboard? We’ll use public
money. We’ll put up a billboard and blame someone else for market
forces.”
The Leader of the Opposition knows that. That’s why he’s tired of
this line of questioning. I don’t know why the guy…
Interjections.
Deputy Speaker: Members.
Hon. J. Horgan: …from Richmond doesn’t get that as well.
Market forces, my friend. We’re working as hard as we can with the
Prime Minister. This is an issue of national consequence. He understands
that.
Interjections.
Deputy Speaker: Members.
Hon. J. Horgan: I understand that. Why don’t you?
Deputy Speaker: One speaker at a time. That will help.
The member for Richmond-Queensborough on a
supplemental.
[2:10 p.m.]
J. Johal: The Premier has taken eight different positions on this issue, and
it’s simple. Every time he gets pressured by the media, he just makes it
up. It’s one conspiracy theory after another. This Premier, for the last
couple of weeks, has been boxing with shadows — nothing more, nothing
less.
Former Premier of Saskatchewan Brad Wall suggested today that if
our B.C. Premier wants to find the reason for high gas prices in
Vancouver, he should go purchase a mirror.
The whole mess is this Premier’s fault and this entire NDP
government’s. It was the Premier who said a year ago that he had looked
at a range of options, and he was the one who promised relief at the end
of the day.
What option was the Premier referring to a year ago, and when will
he give British Columbians the relief at the pumps that he has
promised?
Hon. J. Horgan: As much as I’m reluctant to quote one media source, the Leader of
the Opposition already talked about the very capable work done by
Justine Hunter in the Globe and Mail over the weekend, where
she talked about a range of factors that go into the increase in prices
at the pump.
I would have thought…. Again, I can’t just shake this from my
mind, but I know people on this side of the House, after a decade and a
half of hearing that the only people that understood the economy were
the free enterprisers over there…. Now, all of a sudden, they’re
interventionists. They don’t want to have SkyTrain. They don’t want to
have roads in British Columbia. They don’t want the resources that come
from the pumps…
Interjections.
Deputy Speaker: Members.
Hon. J. Horgan: …that go to making life better for British Columbians. They want
to just eliminate all of that. And they probably want to
give…
Interjections.
Deputy Speaker: Members.
Hon. J. Horgan: …money back to the richest people in the province as
well.
I think if there’s anyone that’s at sea and adrift, it’s the
people on that side of the House. You have to have a philosophical
foundation. That’s all you used to be, and now you don’t even have
that.
Interjections.
Deputy Speaker: Members, I think it’ll work really better if we listen to each
other. That would be a really novel idea.
PROTECTION OF OLD-GROWTH FORESTS
A. Olsen: I love the “you started it” response. That always is a very mature
thing to say.
Port Renfrew, formerly a logging town, has rebranded itself as an
ecotourism hot spot. This is driven in large part by the protection of
Avatar Grove, an ancient coastal old-growth forest. The community is
immensely proud of this. Their region is known internationally, and
their economy is now thriving because their remaining ecosystem is
intact. But this is at risk. Although Avatar Grove itself is protected,
109 hectares of ancient forest near Port Renfrew has been designated by
B.C. Timber Sales for cutting. The clearcutting will occur within 40
metres of the Juan de Fuca Provincial Park boundary.
The citizens of Port Renfrew are frustrated by this government’s
shortsighted approach. They’re angry that short-term corporate profits
are valued more than the long-term local profits. The sound of these
ancient giants falling will be heard by the same tourists that travelled
from around the world to view the endangered forests. Their stories will
be that of sorrow, not of wonder.
To the Minister of Forests, we hear the ministry and Timber Sales
may be postponing the auction of old-growth timber in the Premier’s
riding. The public wants to know: is this an outright cancellation or a
postponement, and if it’s the latter, for how long?
Hon. D. Donaldson: I want to just acknowledge the member for Saanich North and the
Islands’ question about a very important topic.
We’re blessed with amazing forests in this province. There are a
variety of perspectives on old-growth management. Our government is
committed to protecting the important biodiversity of old-growth
forests. We also recognize the value of old-growth forests as they
sustain wildlife, an important part of B.C.’s natural heritage. We’re
also committed to ensuring the continued vibrancy and an innovative
forest sector. Over 24,000 people are employed in the coastal forest
sector.
When it comes to protecting old-growth forests, the Minister of
Environment and myself met with environmental stakeholders earlier this
year. We wanted to hear directly from them as part of our ongoing talks
to inform our old-growth plan. In the very near future, we’ll be
launching the public engagement for this process. As far as the Port
Renfrew proposed B.C. Timber Sales cutblocks go, the member is correct.
The original timber sale licence comprised seven blocks totalling 109.2
hectares.
[2:15 p.m.]
Before putting up the sale, B.C. Timber Sales referred first to
the Pacheedaht First Nation and conducted field work with that First
Nation to identify archaeological values. They conducted environmental
assessments to ensure that stream and fish habitat, species-at-risk and
bear den assessments were done. They confirmed that no red- or
blue-listed plant communities were identified during the layout and that
no legacy trees were identified within the BCTS blocks. Now BCTS is no
longer considering advertising this sale in order to engage with the
stakeholder, who was inadvertently missed during the initial referral
process.
Deputy Speaker: The member for Saanich North and the Islands on a
supplemental.
A. Olsen: Port Renfrew is transitioning to a different approach to
harvesting their surrounding resources. Unfortunately, it’s outside the
current forest policy box, because it supports local profits over the
long term. They want to harvest the value of living old-growth trees as
part of a responsible, transitioning economy, away from death and
destruction.
As we’ve heard in the tightrope rhetoric here today and in the
previous questions from this week in question period, our Forests
Minister doesn’t recognize this. Instead, he cites an appalling example
of extracting old growth to fund a roof, the roof of a curling rink.
This appalling example he used on Monday is absurd, and it’s
embarrassing. It clearly highlights that this government’s definition of
managing old growth, as he responded in the first question, is to cut it
down and to continue cutting it down until it’s all gone. This is not an
economic vision. It’s shortsighted. It does not support a community, an
ecosystem or future generations.
I love curling, Mr. Speaker, but I love air and water and living
more. The minister recognizes the economic value of liquidating old
growth, but when will he recognize the long-term economic value of
leaving old-growth trees in the ground?
Hon. D. Donaldson: Well, old-growth forests are not being liquidated on Vancouver
Island. We have over 500,000 hectares of old-growth forests on the
Island, so old growth will not disappear from Vancouver
Island.
We do recognize the interests of local communities and other
stakeholders in old-growth forests that reside outside those protected
areas. I would refer the member to the hundreds of school children from
a neighbouring First Nation who actually use the curling rink facility
that I visited up in Port Hardy.
We’re committed to protecting old-growth forests, as well as
continuing with a vibrant forestry sector — the 24,000 jobs that rely on
old-growth forests in this province. We’re undertaking an old-growth
management plan, and we’ll be conducting public engagement soon on that
plan.
ACTION ON GAS PRICES AND
INVESTIGATION OF PRICING
PRACTICES
S. Bond: A year ago the Premier received a report on gas prices, and here
is one of the key findings that he received in that report. “There is no
sign of non-competitive or unfair business practices.” Simply put, the
report rules out gouging, yet the Premier continues to rely on this as
one of his excuses virtually every single day.
Can the Premier tell us whether he read the report and his view of
the facts, about there being no gouging in British Columbia, that he was
provided with?
Hon. B. Ralston: I will attempt to add to….
Interjections.
Deputy Speaker: Members, let’s listen to the response, please.
Hon. B. Ralston: I will attempt to add to what the Premier has already stated. He’s
written a letter to the B.C. Utilities Commission. In fact, in that
letter, he remarks that the situation from last year has changed.
Ordinarily, there was a gap of the refined price, before taxes, of two
to three cents between Edmonton and Alberta. That gap has now widened to
25 cents in the month of May. That’s a very different situation from the
situation that was looked at a year ago.
[2:20 p.m.]
What the Premier has asked the Utilities Commission is to use
their expertise — their subpoena power, if necessary — and to
investigate that price gap difference. It would seem, arguably, that
that’s a very, very big difference from last year, and the oil companies
might have some explaining to do. So that endeavour is underway, and we
will see what comes forth from that inquiry.
Deputy Speaker: The member for Prince George–Valemount on a
supplemental.
S. Bond: We should just repeat the question, in case the minister missed
it. The fact of the matter is that the Premier got a report over a year
ago — which, presumably, he read — that said there is no gouging. That’s
certainly not a question he needs to ask again.
What’s completely apparent is that the Premier just continues to
make it up day after day. We have no idea whether he read the report or
not. In fact, he’s on his eighth position that he has taken in just the
last month, and none of those things will do anything to provide relief
at the pump. In fact, he has already told the commission not to bother
looking at taxation.
Well, that’s not good enough for British Columbians. It’s time for
the Premier to stop blaming everybody else, to look in the mirror and to
do something about it.
Will the Premier stand up and provide the relief that he promised
to British Columbians?
Hon. B. Ralston: Well, I think the more prudent course would be to wait for the
Utilities Commission to investigate and come back with some answers.
Frankly, I would rather take advice….
Interjections.
Deputy Speaker: Members.
The minister will continue.
Hon. B. Ralston: Thank you, Mr. Speaker.
I think I would rather take and I think the assembly would be wise
to take advice from the Utilities Commission, as opposed to the member
for Prince George–Valemount, who clearly has already made up her mind in
the absence of any evidence whatsoever.
J. Thornthwaite: A year ago the Premier claimed to have reviewed a range of
options. A week ago, he assured the public that “I’ve had some of the
most capable people” in the province of British Columbia looking at gas
prices. Yesterday he finally revealed his solution: ask someone else to
review it.
Come on, Premier. When are we going to get relief at the
pump?
Interjections.
Deputy Speaker: Members, if you want an answer, we have to be quiet.
The minister will continue.
Hon. B. Ralston: Thank you, Mr. Speaker.
It is rather regrettable, I think, that the member who has just
asked the question is choosing to denigrate the B.C. Utilities
Commission. I don’t really think that’s an appropriate
response.
It’s an expert tribunal with subpoena power and expert advice that
undoubtedly will get to the bottom of what is, really, a very thorny
economic issue. People are looking for an explanation for the increase
in gas prices — 40 cents in the Lower Mainland — of which only one cent
was an increase in taxes. Yet we hear again this afternoon, from the
Leader of the Opposition, the same proposition…
Interjections.
Deputy Speaker: Members.
Hon. B. Ralston: …the so-called plan that he put forward before.
Interjections.
Deputy Speaker: Let’s have order. The minister will continue.
Hon. B. Ralston: Well, clearly, the Leader of the Opposition just acknowledged he
has no solution. Frankly, Mr. Speaker, that’s hardly
surprising.
A Sauder School, University of B.C., business professor described
this so-called Liberal plan as “a completely ineffective proposition. It
makes no economic sense,” yet he was just repeating that a few minutes
ago. That’s where they’re at.
That’s why the Premier has sent this matter to the B.C. Utilities
Commission. We will wait for the answer.
Deputy Speaker: The member for North Vancouver–Seymour on a
supplemental.
[2:25 p.m.]
J. Thornthwaite: The Premier, and now this minister, just seem to be making it up
as they go along, and British Columbians are paying the price at the
pump. The Premier has had at least eight different positions in the last
month alone. The only position that my constituents care about is when
he said: “If we’re in a position to provide relief, we’ll do
that.”
What was the Premier talking about, and when is he going to
provide relief at the pumps?
Hon. B. Ralston: Well, this quotation from a University of B.C. business professor
is not made up. It’s a real quotation from a real person, a very
authoritative person, saying about the so-called Liberal plan: “A
completely ineffective proposition. It makes no economic sense
whatsoever.”
The member has accused me of making things up. Let’s hear what the
“BCBusiness report card” said. B.C. Business , an authoritative
journal here in the province, published monthly, said, and let me quote
from that report card: “It seems pretty clear that this is a desperate
party doing desperate things…”
Interjections.
Deputy Speaker: Members.
Hon. B. Ralston: “…like putting up billboards rallying against the carbon tax that
their party started.” And they gave them a grade of F-minus. No
wonder.
ACTION ON GAS PRICES AND GOVERNMENT
POSITION IN ALBERTA
COURT CASE
M. de Jong: This really remarkable discrepancy has arisen between what the
Premier is saying to British Columbians about this very troubling issue
and what he and his government say when they are in a legal setting,
where they’re obliged to tell the truth. The discrepancy is really
remarkable.
Interjections.
Deputy Speaker: Members, let’s hear the question, please.
M. de Jong: To British Columbians, he says: “The gas companies are gouging
you, these evil energy companies.” The Premier didn’t have any problem
being on the stage with one of them a few weeks ago, by the way. “These
evil energy companies are gouging you.”
But when he’s in court in Alberta, swearing affidavits to explain
the situation we’re in, how does he explain it? Well, fuel prices are
about “availability of supply, international market pricing, exchange
rates, the cost of refining crude oil, the cost of transporting gasoline
to retail outlets, federal and provincial taxes, as well as political
and social instability.”
You know the one word that’s not in the affidavit? Anything about
price-fixing and price gouging. Nothing in the government’s own legal
documentation.
When is the Premier going to stop saying one thing to the Alberta
court and something completely different to British
Columbians?
Hon. B. Ralston: What the Premier has said clearly in his letter to the B.C.
Utilities Commission, a public document, is: “British Columbians want to
know why refining margins are so much higher than in other parts of the
country.” Refining margins are “more than double the Canadian average
and higher than any other city in North America. This suggests that
producers are realizing a significant additional profit margin for fuel
sold in Metro Vancouver compared to other jurisdictions. This is not
acceptable, and British Columbians want answers.”
That’s what the Premier said here in a public document.
M. de Jong: You know what British Columbians want? They want their Premier to
stop saying one thing in a court in Alberta and a completely different
thing to British Columbians here at home.
I always find it curious when one of the ministers from the
cabinet has to stand up and begin his answer with “what the Premier
really meant,” or words to that effect.
The Premier started a fight. He’s now in court trying to extricate
him and, more importantly, British Columbians from the ill effects of
that fight. He has got officials on behalf of British Columbia swearing
affidavits about what contributes to the cost of fuel in British
Columbia.
[2:30 p.m.]
They are swearing documents and filing them in court in pursuit of
that application, and not once do they mention anything about price
gouging. Yet the Premier insists and persists in trying to persuade
British Columbians that they are the victims of price-fixing and price
gouging. When is he going to come clean with British Columbians, stop
saying one thing to Alberta courts and something completely different to
British Columbians?
Hon. B. Ralston: Always nice to hear the come-clean metaphor trotted out once
again.
Interjections.
Deputy Speaker: Members. Let’s listen to the answer, please.
Hon. B. Ralston: The people on the other side are really settled into opposition
when you start using the come-clean metaphor.
This member has been around here long enough to reflect on the
fact…. I think he should really reconsider his comments. I was quoting a
letter written by the Premier. So to suggest that, somehow, my words are
at variance with those of the Premier…. This is a letter written by the
Premier.
Why are we in court in Alberta? We are not taking the advice of
the Leader of the Opposition, who said: “Do nothing. Don’t stand up for
British Columbians.” We’re in court in Alberta standing up for British
Columbians, and we will continue to do so.
ACTION ON GAS PRICES
P. Milobar: Well, it’s unfortunate that the minister has to read from a letter
of the Premier and the Premier would not answer the question, because
British Columbians are paying the highest gasoline prices and the
highest gas taxes in North America. That is a fact.
The minister keeps offering up all sorts of solutions. Earlier in
the week, the minister suggested we should all go out and buy a Costco
membership to be able to afford to buy fuel at the pump. That was a
really good one too. We have the government in court, saying, “Don’t
send us more oil,” and we have the government in court, saying: “You
have to send us more oil.” We have a government that says that CleanBC
is going to get us off of fuel, and we have a Premier saying he needs a
bigger pipe to try to get more fuel here. The government needs to figure
out what exactly it is that they need.
We have the Premier saying that he now needs the Utilities
Commission to tell him how the market works, yet in their filings…. They
didn’t seem to need the Utilities Commission for the filing in the
Alberta court. Again, this Premier is promising, over and over again…. I
will quote him. He says: “If we’re in a position to provide relief,
we’ll do that.” Again, that was a year ago.
What exact options was the Premier looking at a year ago that he’s
refused to answer with endless questions now to provide to the public an
insight into what the government was actually looking at for relief for
people at the pumps? Just one option — one option — that the Premier was
even looking at would be so helpful.
Interjections.
Deputy Speaker: Let’s be quiet.
Hon. B. Ralston: This government has pursued an affordability agenda in our last
budget. By the end of this year, British Columbians will pay no MSP
premiums — a tax break of $900 per individual, $1,800 for a family, the
biggest single tax break in the history of British Columbia. Eliminated
tolls on bridges — the member from Abbotsford should be happy about
that. Eliminated interest on student loans. Eliminated PharmaCare
deductibles for up to a quarter of a million people here in British
Columbia. Free bus passes. I could go on. There’s so much more. There’s
so much more.
[End of question period.]
Point of Privilege
(continued)
M. Polak: I rise on behalf of the member for Prince George–Mackenzie to
provide a reply to the point of privilege raised by the Minister of Justice
and Attorney General.
[2:35 p.m.]
The Minister of Justice and Attorney General, “the Attorney,” has
raised a point of privilege pursuant to Standing Order 26. In his submission
on May 6, 2019, he alleges that the member for Prince George–Mackenzie, “the
member,” deliberately misled the House in a statement delivered Monday,
April 29, 2019.
On April 29, 2019, the Attorney rose at the end of the day, just prior
to adjournment, to reserve his right to raise a matter of privilege.
Standing Order 26 requires that he do so at his earliest opportunity. I
submit that his earliest opportunity was at the beginning of the afternoon
sitting.
Interjections.
Deputy Speaker: Members, let’s listen to the reply.
Please continue.
Interjections.
Deputy Speaker: Members, let’s listen to the reply, please.
Member.
M. Polak: On April 30, 2019, the Attorney made a submission that fell far short
of the requirements under Standing Order 26. Indeed, the submission failed
to even mention Standing Order 26. As I understand it, the April 30, 2019,
submission was not provided to the House in written form, nor did it contain
the motion that the Attorney intends to move, should the Chair find a prima
facie case has been established. Both of these elements are required under
Standing Order 26, and I provide reference to Parliamentary Practice in
B.C. , fourth edition, pages 64 and 65.
On May 1, 2019, I advised the House that in the absence of a point of
privilege as defined by Standing Order 26, I saw no reason for the member to
submit a response. Consequently on May 2, 2019, the Attorney advised the
House that he would make another submission. He provided that submission on
May 6, 2019, a full week after the statement made by the member.
I draw the Speaker’s attention to the decision of Speaker Schroeder. I
won’t read the entire decision here. It’s reported in the B.C.
Journals , 1982, November 25, 26, pages 15 and 16. It relates to
a member’s failure to raise a point of privilege at the earliest
opportunity. Speaker Schroeder concludes, in part: “There is no doubt that
the onus on the member raising a matter of privilege is a heavy one, but the
Chair has no authority to relax these rules.” I submit that the Chair should
not allow this matter to proceed, as the Attorney did not make a full
submission consistent with Standing Order 26 until May 6, 2019, a full week
after the statement in question.
Should the Speaker, however, be satisfied that the Attorney raised his
point of privilege consistent with the requirements of Standing Order 26, I
ask that he consider my submissions respecting the substance of the
Attorney’s complaint. In order to succeed, the Attorney must present a prima
facie case that the member not only misled the House but did so
deliberately. It is not sufficient to present facts that are in dispute.
Parliamentary Practice in British Columbia , fourth edition,
page 351, in quoting Beauchesne’s , fourth edition, at citation 113,
states: “A dispute arising between two members, as to the allegations of
fact, does not fulfil the conditions of parliamentary privilege.” It goes on
to say: “However aggrieved a member may feel, this does not permit the Chair
to extend the law of parliamentary privilege.”
In another decision of Speaker Schroeder, in B.C. Journals ,
April 13, 1982, page 41, he says:
“It might be appropriate to observe that in this chamber, by its very
nature, countless disputes relating to allegations of fact will arise and
with great frequency. To routinely convert those disagreements into what
amounts to a charge of deliberately misleading the House would be contrary
to well-established traditions observed throughout all parliaments. This
tradition states that all hon. members will accept the word of all other
hon. members, a tradition which I commend to this House.”
Considering the matter at hand, given the member’s unique knowledge
and experience, there is even more reason to accept his statements. The
authorities make special note of a member’s statements respecting their own
personal experience. Beauchesne’s Parliamentary Rules and Forms ,
fourth edition, citation 145, page 126, states: “It has been formally ruled
by Speakers in the Canadian Commons that a statement by an hon. member
respecting himself and peculiarly within his own knowledge, must be
accepted, but it is not unparliamentary to temperately criticize statements
made by a member as being contrary to the facts, but no imputation of
intentional falsehood is permissible.”
[2:40 p.m.]
Finally, in the case that there remains any doubt, the member stands
by his statement of April 29, 2019. I will provide the Speaker with a
statutory declaration sworn by the member in support of this submission,
which I will read now, on behalf of the member for Prince
George–Mackenzie.
“When I served as B.C.’s Solicitor General, I was briefed with respect
to numerous ongoing domestic, national and international investigations
related to organized crime, homicide, drug trafficking and money laundering,
including E-pirate investigations. These investigations had been ongoing
since before 2014. Some of these investigations were initiated as a result
of intelligence gathered at B.C. casinos, including videos later released to
the media and subsequently referred to by the Minister of Justice and
Attorney General, the Attorney.
“The joint illegal gaming investigations team was established by the
B.C. Liberal government to address the issues we were well aware of around
illegal gaming. This included money laundering. As B.C.’s Solicitor General,
I was briefed on at least two occasions regarding ongoing complex
international investigations by this unit.
“Based on my extensive experience as a criminal investigator and a
supervisor and manager of major, complex criminal investigations, I believe
the Attorney failed to respect the need for strict confidentiality
pertaining to an ongoing criminal investigation. All information must be
held in confidence until a prosecution and any related appeals have
concluded.
“In making my statement in the Legislature on April 29, 2019, I was
aware that the report released by the Attorney General in September of 2017
contained a strict confidentiality clause. It stated: ‘This report is
private and confidential. It is not intended for general circulation or
publication. For certainty, this report may not be disclosed, copied, quoted
or referred to in whole or in part, whether for the purposes of litigation,
disciplinary proceedings or otherwise, without our prior written consent in
each specific instance.’
“In September 2017, the Attorney released the MNP report dated July 26,
2016, and publicly commented about an ongoing investigation. I was aware,
for the reasons stated in paragraph 4, that the report was not intended for
public release. Not long after that, federal prosecutors announced they
would not be proceeding with the prosecution of a high-profile case. Based
on my knowledge and experience, I concluded the release of the MNP report
and the comments made by the Attorney contributed to the failure of this
prosecution.”
Considering this submission, along with the attached statutory
declaration provided by the member, I respectfully submit that the
Attorney’s application must fail.
Hon. M. Farnworth: I thank the member opposite, the Opposition House Leader, for her
submission. I would respectfully submit that this is more than just an
everyday Standing Order 26 decision, but rather….
Interjection.
Hon. M. Farnworth: Excuse me. I have the floor. Thank you very much.
Point of Order
M. Polak: I do not recall, upon close inspection of Standing Order 26, any
provision for another submission on behalf of the member, the Minister of
Justice and Attorney General, whether it be from the House Leader or anyone
else. I’m not aware of any provision in Standing Order 26 that would allow
for this.
Deputy Speaker: The Chair will listen and hear both sides and will make a deliberation
after we hear the comments. The Chair has the discretion to hear both sides,
and then we’ll make the decision after that.
M. Polak: The submission of the Minister of Justice and Attorney General was
made under Standing Order 26. I have made my submission and response, under
Standing Order 26. The member just rose to say he had a further submission.
I am not aware of anything in the standing orders that would allow
the member to do so.
Deputy Speaker: As I stated earlier, the Chair has the discretion to hear from the
other members, and the Chair will make the decision afterwards.
[2:45 p.m.]
Point of Privilege
(continued)
Hon. M. Farnworth: The point I was wanting to make was that the comments, the
allegations, made by both the Opposition House Leader, in her remarks, and
the remarks under question by the member for Prince George–Mackenzie are not
just what one would traditionally characterize in this House as a
disagreement between members but, rather, a direct impugning of the actions
of the Attorney General, who is unique amongst members in this House, in
particular being a member of the executive council, whose role has a dual
function — that of a minister but that of also the chief Attorney for the
province of British Columbia.
When that kind of impugning takes place, I believe that it is more
than just to say: “Oh, it was too late.” I think that it deserves full and
complete consideration, given the importance of the integrity of that
office.
Deputy Speaker: Thank you, Members. The Chair will take this under advisement and will
come back and inform the House about its decision.
Orders of the Day
Hon. M. Farnworth: In this chamber, I call continued debate on the estimates of the Ministry
of Finance. In the Douglas Fir Room, Committee A, I call continued debates on
the estimates of the Ministry of Education. In the Birch Room, Committee C, I
call for debate of the estimates of the Ministry of Municipal Affairs and
Housing.
Committee of Supply
ESTIMATES: MINISTRY OF
FINANCE
(continued)
The House in Committee of Supply (Section B);
S. Chandra Herbert in the chair.
The committee met at 2:50 p.m.
On Vote 25: ministry operations, $265,327,000
(continued) .
A. Weaver: This is for the benefit of the children in the gallery from, I
believe, Surrey Christian School. What we’re doing here in the
Legislature is debating estimates for the Ministry of Finance. It’s a
time for opposition MLAs, the Liberals or the Greens here, to pose
questions to the minister about various budgetary issues that are
related to her file. I’ll be asking about some finance questions with
respect to natural gas royalties.
The reason why I’m posing these to the minister is that — I did
ask last time — the deep-well royalty credit program is actually
administered by the Ministry of Finance. The qualified wells receive
these credits automatically, and they don’t need to apply
separately.
The credit was first created in 2003, expanded in 2014, and in
last year’s public accounts, the unclaimed balance of deep-well credits
totalled $2.59 billion. A further $3.5 billion has already been cashed
in to reduce royalties that would otherwise have been payable. This
program has reduced gas producers’ existing and future royalty liability
to the Crown by nearly $6 billion.
My questions in this area are this: how many deep-well credits
were issued over the past year and to whom?
Hon. C. James: The member asked how many deep-well credits. We don’t have the
information around the breakdown of which are new credits and which are
continuing credits with us, but I’m happy to get that information for
the member of which are new. We don’t have that breakdown with us, and
we’ll get that information.
[2:55 p.m.]
On page 120, it identifies the number for new, and that would be
$383 million. Then the identifier — the member asked how many and who
got them — is personal tax information, so we can’t provide that. But
we’re happy to get the information and get it back to the member around
the number of new credits for this year.
A. Weaver: Further on…. I suspect I’ll get a similar answer, and I welcome
the information at a later date. How many deep-well credits have been
issued since 2014 and to whom?
Hon. C. James: We’ll add that to the information for the member. We don’t have
that information with us.
A. Weaver: My question, then, is: why is there not a standard public
disclosure of these credits and royalties that are received? There is,
for example, for stumpage fees in the province, under the harvest
billing system. Why are we not making public the royalty credits that
are being claimed here?
Hon. C. James: This credit, the deep-well credit, fits under FOI, and under FOI,
we can’t release taxpayer information. I can’t give an explanation
around why it would be different, as the member talks about, in
stumpage. But the requirement is under FOI to protect individual
taxpayer information, which would include, of course, the names and the
identifiers.
A. Weaver: The inconsistency, as was noted, is with respect to the harvest
billing system, so perhaps we could explore that at some other
date.
What’s the total value of deep-well credits that are still
outstanding and that could be claimed against?
Hon. C. James: As the member pointed out, $2.6 billion in ’17-18. The ’18-19
numbers get reported out in Public Accounts . That tracking is
just being done now, and they get reported out in Public
Accounts .
A. Weaver: My final question is with respect to FOI, freedom-of-information,
requests that went to the Ministry of Finance. The file number, for
reference, is FIN-2019-90584. This was a freedom-of-information request
put in by an independent person outside of the Legislature. What was
being requested there was a list showing the total royalty credits
granted to each company that applied for such credits in the most recent
fiscal year.
Now, the freedom-of-information requests from the Ministry of
Energy and Mines and from the Ministry of Finance provided completely
different answers. The Ministry of Energy and Mines had no issue and
provided, actually, the detailed credits, by whom and to whom,
whereas
the Ministry of Finance withheld all information.
[3:00 p.m.]
My question is: why is there a discrepancy between information
we’re getting from the Ministry of Energy and Mines versus the Ministry
of Finance?
Hon. C. James: The FOI request that the member is referring to was asking about
the infrastructure royalty credits. The infrastructure royalty credits
actually have a provision where when someone applies for the credit,
they give permission for their information to be shared. That’s why
Energy and Mines was able to share the information, because the
infrastructure royalty credits have that application for the individuals
when they apply. So that’s, obviously, a different program than the
deep-well credits.
A. Olsen: I just have one question for the minister. Property-assessed clean
energy, which is commonly known as PACE, is an innovative financing tool
which building owners and developers can use to upgrade their buildings’
energy performance, install renewable energy systems and reduce resource
consumption with the financing paid through their property tax
bill.
Programs like this have been in place since 2009 in the United
States and are currently under development in Alberta and elsewhere in
the country. The city of Port Moody recently asked the provincial
government to look into legislative changes to allow the city to
implement their own similar program.
It’s clear that the climate change crisis will require us to make
significant changes, not only to the way we do things. Reducing the
upfront barrier of costs would not only help people who retrofit their
homes on their energy costs but would also help us to reach our goal of
reaching the targets on carbon emissions.
The UBCM passed a resolution asking the government to change the
Community Charter to enable municipalities to do this. So I’m just
asking the minister. Municipalities are asking for the tools, and we
need to do things differently. Has the minister considered implementing
an innovative financing tool such as PACE to empower residents and
municipal governments to achieve these outcomes?
Hon. C. James: Thank you to the member for raising the question. I think, as the
member will probably know, any changes to the Community Charter or the
Vancouver Charter sit with the Minister of Municipal Affairs and
Housing. I certainly know they review all of the motions that come
forward from UBCM, and they’d be reviewing this piece.
As the member points out well, CleanBC does have, in fact, a
commitment to looking at net-zero building code applications for all new
buildings and to looking at retrofits. Certainly, the Ministry of
Finance would be involved in any of those discussions, and all creative
ideas and approaches are being looked at.
I’ll certainly have that conversation as well. I’ll pass on the
conversation with the Minister of Municipal Affairs, but I’m sure
there’s the opportunity to ask that question there as well. But I’m
happy to engage in taking a look at the ideas and the program that came
forward.
[3:05 p.m.]
S. Furstenau: I also have a question for the minister. It’s a question that I
actually asked about last year, so I’m revisiting it.
In my riding, there is the Cowichan Bio-Diesel Co-op. They sell a
variety of biodiesels with different levels of biodiesel generated from
cooking oil. In some cases, the diesel can be mixed with 5 percent of
that. There is a 100 percent biodiesel option available, which is a
carbon-neutral, carbon-free biodiesel. We want to, clearly, provide
incentives to people to use this kind of fuel in their vehicles, so I’m
revisiting the question that I had last year, which was about the carbon
tax continuing to be applied to this 100 percent biodiesel.
Interesting to note, Cowichan Bio-Diesel actually just completed
an audit for the Ministry of Finance. In that audit, they were able to
clearly identify exactly the percentage of biodiesel in all of their
fuels, including in their 100 percent fuels, which has often been the
reason stated for why the carbon tax can’t be removed from the 100
percent biodiesel. But in this case, they’ve demonstrated quite clearly
that they are able to identify exactly which fuel that is.
The question is: can we hope to see the removal of the carbon tax
from the 100 percent biodiesel?
Hon. C. James: Thank you for the question and the continued advocacy on behalf of
what is a unique company, no question, in Cowichan. And I think that’s
part of the challenge, as others catch up to the work that’s being done.
The member talked about the identification that the company has done
that isn’t practised across the industry and across other examples of
biofuel. That then creates the challenge. That’s the challenge of
putting together a program for, in fact, one company that’s done the
work around the measurement and other companies haven’t. That makes it
complex.
Given all of that, there’s no question that we’re continuing to
look at how we can incent the use of biofuels, including 100 percent, of
course, biofuel. We’ll consider that as part of budget discussions and
happy to have further conversations. Happy to receive the information,
as well, from the company around the work that they’ve done.
T. Redies: Good afternoon, Minister and staff. Thank you again for giving us
this opportunity to ask questions of your ministry.
[3:10 p.m.]
I’m going to start with some general questions around taxation. My
first question is: can the minister tell us how many people of the
roughly 5½ million people in this province actually pay tax?
Hon. C. James: Perhaps the member could tell us what kind of tax. I mean, there
are a variety of taxes out there. There are a variety of taxes, so I
wonder if the member could be a bit more specific.
T. Redies: I’m actually referring to the people who file income taxes and pay
tax.
Hon. C. James: There are a couple of different numbers. One would obviously be
the number of people who file taxes and then the number of people who
pay taxes. We’re just gathering that information, and we’ll be able to
get that back to the member.
T. Redies: All right. There are a number of questions I have from
there.
Perhaps while you’re gathering that information, I’d like to know
from the minister how many people under her tax policy are actually
going to be paying lower tax and how many people are going to be paying
higher tax.
[3:15 p.m. - 3:20 p.m.]
Hon. C. James: Just on the first question that the member asked and quick work by
staff. The number of tax filers…. Now, remember, 2016 is the most recent
year that we would have information on, of course, because you’re always
behind with CRA. The number of tax filers in 2016 was 3.748 million, and
the number of people who paid taxes was 2.548 million.
Then the member asked about individual taxpayers and how many
individual taxpayers would be paying more tax and how many would be
paying less tax. Obviously, we don’t do that kind of analysis for
individuals. That’s a much more in-depth process, and there are so many
different rationales and reasons for people paying increases in taxes.
For example, their wages have gone up, and they’re receiving more pay.
All of those factors go into account.
What we do — I think the member can refer to it at page 117 of the
budget — is look at the brackets of family income. As the member can
see, it’s $30,000, $60,000, $80,000 and $100,000. We do take a look at
the net tax that that family would have paid, as the member can see, in
2016, 2017, 2018 and 2019, and then when policies are all fully
implemented.
For example, the child benefit doesn’t kick in until 2020. So when
it says “fully implemented,” it would mean that for all the three years,
the policies would be fully implemented. I think the member can see in
each of those years the savings that are there for families when it
comes to paying taxes. For example, with an $80,000 family income, they
would have paid $5,637 in 2016. When the policies are fully implemented,
they’ll pay $3,239.
That just gives the member an idea. I think the member can see the
numbers that are there.
T. Redies: I presume that for budget purposes, you must know how many
families are in those categories. If so, could you share that with
us?
[3:25 p.m.]
Hon. C. James: We’ll gather that information and get it to the member. Obviously,
it’s different with each family, so again, you run into the challenges
of determining individual families, but there will be some general
numbers. Certainly, there are numbers, obviously, that are used for
programs, when you’re developing programs. So we can get some general
numbers, but it may take a bit for the member.
T. Redies: Thank you, Minister. It will be interesting to get that
information.
I wonder if the minister might be able to explain to us, or at
least provide a dollar number, the increased taxation on businesses and
families since the government took office to the end of 2022, the fiscal
plan.
[3:30 p.m.]
[J. Isaacs in the chair.]
Hon. C. James: If the member looks on page 129 in the budget, it has the share of
total nominal GDP. That number would include the measures, as the member
was talking about, that have been implemented. But it’s also important
to note that it includes growth. That would be included in those numbers
as well. I think the member can see that there are adjustments that
occur. If we start at 2014-2015, you’re looking at 19, 19.1, 19.5
percent; in 2017-18, 18.4; updated forecast, 19.2; then budget estimate
’19, continuing on again through the plan to 18.7.
T. Redies: We actually did the specific calculation of all the 19 new and
increased taxes. We may have some rounding errors and maybe a little bit
of an assumption here and there, but our total came to about $13.7
billion from the time this government took office to 2022. Does that
sound about right?
Hon. C. James: Again, I can’t judge the member’s numbers. If the member wants to
share them, we can take some time to go through. But again, I can’t
judge the member’s estimates, what was included and what wasn’t, whether
growth was included, whether MSP premiums that were previously paid were
included. All of those numbers need to be calculated as well.
T. Redies: What I can tell you is that it actually includes all of the 19 new
or increased taxes that the government has implemented, or will
implement, from the time they took office to 2017. I’m happy to share
that with you.
Could you perhaps give us a sense of how much of the new taxation
is being borne by businesses and corporations in this
province?
[3:35 p.m. - 3:40 p.m.]
Hon. C. James: I think the largest piece, obviously, is the employer health tax
that has been introduced. I think the members know the number, $1.95
billion, coming in on the employer health tax.
I think it’s important to note, as we’ve talked about — and I know
we went through this in estimates last year as well — that that does not
include the savings from MSP for all the employers who already pay
medical services premiums, who have that savings — the 50 percent and
the 50 percent and then full savings as of January. That’s the largest
piece coming in when it comes to measures in the budget.
Then, of course, there are measures on the other side of the
ledger. Again, you have to take into account both of those: the small
business corporate tax rate April 1 of this year; the elimination of PST
on electricity. That was completed. And then remember in Budget 2019, as
well, there were the corporate income tax reductions that we’re doing in
partnership with the federal government, which is about $800 million, as
well, in reductions.
All of those have to be taken into account when the member is
taking a look at the costs coming in or revenue as a share of the
economy. Those pieces all have to be added in.
T. Redies: What about the corporate income tax? Is the minister aware of how
much businesses pay in terms of percentage on the carbon tax and
property tax?
Hon. C. James: We don’t break down the carbon tax revenue. It’s not broken down
by businesses and individuals. On the non-residential property tax
piece, that would be $1.249 billion, but there’s been no change to that
for businesses. There have been no changes in the property
tax.
T. Redies: Can the minister tell us the exact amount of new taxation that
will be borne by property owners in total since the government came to
power and through to 2022?
[3:45 p.m.]
Hon. C. James: The three pieces that have changed since we became government are
all targeted measures. I think that’s the important piece to mention
first. These do not apply to all British Columbians. They’re very
targeted measures. They include the speculation tax, the additional
school tax on houses worth more than $3 million and the increase in the
foreign buyer tax.
On the budget, the speculation tax, as the member knows, is
expected to bring in $185 million, the additional school tax on houses
worth more than $3 million is expected to bring in $200 million, and the
foreign buyers increase, so the amount of increase, is expected to bring
in additional $40 million in the change.
T. Redies: Minister, the reason why I’m asking these specific questions is
that I think it’s really important that the government understands where
its revenue is coming from and, in particular, whether or not it’s
disproportionately burdening one group over another.
We remain a bit perturbed on this side of the House with respect
to what we think is a disproportionate burden on the job creators of
this province, who I think are carrying probably three-quarters of the
additional taxation costs that this government has
implemented.
I’ll look forward to getting the additional information that the
minister has indicated that she will provide us. At this point in time,
our colleague the member for Delta South would like to ask a few
questions.
I. Paton: B.C. has been hit with an abundance of new taxes since government
changed. Agriculture has been especially hit. I’m dealing all the time,
in the past two years, with farmers institutes, with co-ops, Cattlemen’s
Association, B.C. Agriculture Council, and they’re extremely upset about
the taxes that have been implemented, especially on the agricultural
industry. I would call it the triple whammy when you talk about farmers
and ranchers and processors trying to deal with a carbon tax hike,
employer health tax and minimum wage going up.
I would like to quickly just quote some figures from a greenhouse
company in my riding of Ladner called Westcoast Vegetables. It’s a very,
very large greenhouse operation owned by two brothers and locally. They
live right in my town. They operate this greenhouse
operation.
[3:50 p.m.]
Their
summary of some expenses coming up from 2018 to 2019, the
increase for one year, from one year to the next…. Carbon tax, taking
into consideration the full 80 percent rebate on natural gas, will add
$14,000. The employer health tax of 1.95 percent on their operation will
add $96,000. And a minimum-wage increase, because they have a great
number of employees, will add $455,000 to their operation. So a one-year
increase to this greenhouse in Ladner will be $565,000 for this year
over last year.
To quote from the two brothers: “We have seen slight decreases
year after year in our prices due to increased competition from Mexico
and California.” They go on to say: “We have also seen our costs of
packaging, corrugate and greenhouse supplies increasing due to exchange
rate, resin costs, etc. Unfortunately, we are unable to pass on these
cost increases to our customers. It is no wonder the vegetable
greenhouses are switching to cannabis.”
Did the Agriculture Minister consult with the Finance Minister,
advising her of these major impacts that would be placed upon farmers,
ranchers, greenhouse operators and processors in B.C.?
Hon. C. James: Thank you to the member for the question. Whether it’s the
minimum-wage increase or whether it’s any government program that has
been brought forward, those are thorough discussions around the cabinet
table, and those are discussions that would include all the
ministers.
It’s important to make sure that all of those issues are looked
at, and we take competitiveness seriously. But we do, as a government,
take a look at competitiveness when it comes to businesses. We take a
look at industries. That’s why we have reduced the small business tax
rate. That’s why we got rid of the PST on electricity — a piece that was
raised with us by business to be able to make sure that they remain
competitive.
It’s part of the reason that we’re also looking at the issues of
housing and child care — again, because many employers have come to us
to say that’s one of their biggest challenges when it comes to
recruitment and retention, when it comes to workers: being able to
provide those supports. All of those supports are put in
place.
I certainly know that the member will have had the opportunity,
I’m sure, to be able to ask questions in the estimates of Agriculture.
But I know the Minister of Agriculture is always looking at
opportunities to be able to address competitiveness and to support the
industry. I think the industry knows, clearly, they have a very good
advocate there.
I. Paton: I have some figures here that are quite astounding, affecting
agriculture and ranching in this province, based on just three of the
many taxes that have been tacked on since the change in government a
couple of years ago.
Now, there’s a farming family in Delta called Felix Farms, and
they go back to the 1800s, having arrived in Delta, the Guichon family.
They farm roughly 800 acres of potatoes and different other crops in
Delta, as well as some land that they own up in the Abbotsford area.
This is quite astounding. I asked them just yesterday if they could give
me a quote of the cost of fuel to run their equipment on their tractors
for this upcoming year, and they have kept track of this. They quoted
that in 2017, their fuel costs to run their tractors, their trucks,
their forklifts, etc., on the farm, was $231,000. Quite astounding. I
don’t think people would even imagine that much to fuel up all your
tractors.
[3:55 p.m.]
Of course, at this time of year, the tractors are running 16 to 20
hours a day, with this good weather. In 2018, their fuel costs went up
to $282,000 in one year. And the projection for 2019 for diesel,
gasoline and propane on the Felix Farms farm in Delta is going to be
$340,000 to run all their tractors, trucks, forklifts, etc., on their
farm.
As we know, the agriculture industry makes a great deal of use,
obviously, of diesel, gasoline, propane and, of course, natural gas. The
greenhouse industry lives and thrives on natural gas to heat their
buildings. The poultry industry thrives on natural gas to heat their
buildings to keep the chicks and the birds warm in the wintertime.
Including the mushroom industry….
Agriculture is being hit hard. Fuel costs — everything related to
farming requires fuel, from their vehicles to running irrigation pumps.
The Premier suggested a range of options to deal with rising fuel costs.
What options are being considered for farmers in the 2019 growing and
harvest season?
Hon. C. James: I think we could go back through question period again, as we’ve
done. The very specific question has come up in question period for the
last number of days, so I think the member knows the responses,
clearly.
Are the Premier and his government concerned about what we’re
seeing when it comes to the price of gas? Yes, we are. That’s why we’ve
referred it to the Utilities Commission to be able to do an independent
investigation of the issue.
I. Paton: I just have a couple more questions.
One of the most respected agriculturists in B.C. is a gentleman
named Murray Driediger. We’ve all heard of Driediger Farms, of course,
up in Langley. But Murray Driediger, actually, is the chief executive
officer of BCfresh, a producer-owned marketing and distribution company
for vegetable farmers. It’s located in Delta. It’s a huge warehouse.
Just about all the vegetables grown in British Columbia — potatoes — are
all boxed, washed, packaged, graded on farms and brought to BCfresh.
From there, they’re shipped out to all the grocery stores and the
wholesalers.
I’d like to just read out a little quote from Business in
Vancouver from Mr. Driediger.
“Mr. Driediger has not yet done a full calculation of how much all
the new federal and provincial tax hikes and other measures will cost
his company, BCfresh. He just knows it’s going to affect the company’s
competitiveness and result in having to pass on escalating costs to
consumers.”
Now, to quote Murray Driediger:
“‘It’s unbelievable that both the provincial and federal government
have literally been dumping costs onto business at the levels that they
have and expect us to remain competitive,’ he said. ‘These are moneys
that we use to modernize to ensure that we remain competitive, and
they’re doing everything they can to throw sand in the gears.’
“The biggest, most immediate tax hit will come from a new payroll
tax that is being foisted onto employers, from businesses to school
districts, to replace the Medical Services Plan. BCfresh covers MSP
premiums for its 24 employees. ‘That used to cost us about $15,000 a
year,’ Driediger said. ‘Under the new payroll tax, for the exact same
services supplied to our employees, that cost will now be $45,000 per
year.’
“And because the new payroll tax comes into effect one year before
MSP premiums are eliminated, it means…BCfresh will have to pay both MSP
premiums and the new payroll tax for the first year.”
Did the Agriculture Minister advise her colleague, the Minister of
Finance, of the effect that the employee health tax would have on
farmers, ranchers and processors in the province?
[4:00 p.m.]
Hon. C. James: As I’ve said, whenever a new program change is occurring, we have
a very good, thorough discussion around the cabinet table. That includes
all ministers. As the member knows, the employers health tax is the
lowest rate across the country when it comes to employers health taxes.
Other provinces had moved away from medical service premiums years and
years ago. British Columbia is the last province left with medical
service premiums — a very regressive tax that we’re eliminating, and
bringing in the employer health tax. So yes, a very thorough discussion
occurred around the table with all ministers.
I. Paton: One more question. Thank you to minister. Cannabis, unfortunately,
has become an allowable use in greenhouses on our prime class 1 soil in
Delta and in Langley and in Abbotsford, etc. I’m not sure why this has
been allowed to happen, but it is happening under this new government.
So cannabis is replacing food production in many of our
greenhouses.
What I would like to know…. There is an 80 percent rebate on
natural gas provided to greenhouses growing food. Is the 80 percent
rebate on natural gas being provided to the cannabis growers that are
using all that fuel to heat their buildings?
The second question, if I could lump that in as well: are the
cannabis-growing greenhouses receiving the same farm tax status that
vegetable-growing greenhouses would receive?
[4:05 p.m.]
Hon. C. James: The 80 percent rebate — cannabis is not an eligible crop for that
80 percent rebate. On the B.C. Assessment site, it says classification
of land as farm excludes the production of cannabis.
T. Wat: Before I ask a question, I would like to provide a copy of the
Hansard of my budget estimate debate with the Minister of
Tourism, Arts and Culture for the reference of the Finance
Minister.
I have a tag on the Hansard there, on 91535. The Minister
of Tourism, Arts and Culture, when I engaged in the budget estimate
debate with her, said the SFU contract on the public consultation of the
Chinese-Canadian history museum was done through the Ministry of
Finance, and she told me to feel free to canvass the Finance Minister
regarding this SFU contract. I would like to confirm with the Finance
Minister if this is the case.
Hon. C. James: We’re just gathering information. We don’t have the information
with us, so I just want to give a chance…. If there are other questions
that people want to ask while we’re gathering the information, the
opportunity is there. Or the member can put a series of questions, if
the member wishes, and we can look at all those questions when we get
the details.
T. Wat: Thank you, Minister, for the response. But I just want to know if
the minister is aware of this SFU contract on the public consultation of
the Chinese-Canadian history museum. To be honest, I was quite shocked
when the Minister of Tourism, Arts and Culture told me that this
particular contract has nothing to do with her.
[4:10 p.m.]
Through FOI, I asked for three reports that the Minister of TAC
has done concerning the Chinese-Canadian history museum. One is a UBC
report, also on the Chinese-Canadian history museum. The second one is
this SFU report, this contract. And the third one is a contract with the
Lord consulting firm.
I received two of the three reports that the Minister of Tourism
has contracted to do with the public consultation of the
Chinese-Canadian history museum, but I have not got the SFU report.
That’s why I was wondering what’s happening. The Minister of Tourism at
first told me that it was done through the Minister of Citizens’
Services several times until towards the middle of the debate. Then she
said: “Oh, I have to put it on the record that I made a mistake. The
contract was done through the Ministry of Finance.”
I totally cannot gather why this is the case, because the Minister
of Finance is responsible for finance issues. Something to do with the
Minister Responsible for Multiculturalism should be done by the minister
responsible for it. Why is it being done by the Minister of Finance? I
want the Minister of Finance to enlighten me on why such an
arrangement.
Hon. C. James: As I mentioned, we’re making sure we have staff here, but I am
presuming — and I’ll confirm this when we have staff come in — that
because it’s public engagement, it may have been done through government
communications, which is part of the Ministry of Finance. So I’m
presuming, because it was a public engagement contract, that it may have
been done through those staff. We’re just making sure we have those
staff so we can answer the member’s questions.
T. Wat: Thank you, Minister, for the response.
Is the minister suggesting that I should sit down and wait until
the minister gets all the information before we proceed with any
question I would like to ask the minister?
Hon. C. James: Well, the member can do a couple of things. The member could list
all of the questions, if the member wishes, and we can wait. When the
staff are here, we can make sure we answer them. Other members may ask
questions if they want to while we wait for staff, but I think it’s
important to make sure that accurate information is being given to the
member, so I want to make sure we’ve got the right staff here to be able
to respond to the questions.
S. Bond: Can the minister tell us approximately when the staff might be
available so that we can…? Obviously, the member has, also, other
activities to take care of. If the minister could get that answer, I
will start a new section, and we’ll have the MLA wait just for a couple
of minutes while she sorts that out.
Hon. C. James: We expect about five minutes.
S. Bond: Thanks to the minister for accommodating that. I know these are
important issues for my colleague.
We’re going back to the revenue division, and we’re going to ask
some questions about expenses now. My colleague looked at some of the
general questions we had around taxation. We know, though, that when we
look at the revenue division budget, we can see that costs have almost
doubled in the revenue division, whose budget increased, from our
calculations, by $89 million this year. We want to walk through why
exactly that is the case.
Perhaps we’ll start with: what has been the primary driver of the
$89 million in cost increases to the revenue division?
[4:15 p.m.]
Hon. C. James: The two largest changes in the budget are student loan
elimination, which is 76.1, and tax enforcement at 9.4.
S. Bond: Tax enforcement. We’re going to talk a little bit about auditing
in a minute. Could the minister articulate for us, then, what the FTE
increase has been in the revenue division?
Hon. C. James: The revenue division FTEs in ’18-19 actually dropped by seven
FTEs, and then for ’19-20, the increase is anticipated to be about 40
FTEs. Those individuals are in the process of being hired, so that’s not
completed yet, but it’s anticipated to be about an increase of 40
FTEs.
S. Bond: I just want to confirm that the minister said four-zero, 40.
Right.
So we’re seeing a reduction, and then we’re going to see a ramp-up
— a replacement of those 20 — and an additional 20. Can the minister
give us, please, a breakdown of the increases both in cost and staffing
for each branch level?
Hon. C. James: The member said a breakdown for each branch in the revenue
division?
[4:20 p.m.]
I’ll just read the variances — I’m guessing that’s what the member
is looking for — in the budget in the revenue division.
For base salary and overtime, the variance is $4.1 million; the
employee benefits chargeback is $1.3 million; public servant travel,
$82,000; legal services, $281,000; professional services, $2.3 million;
office and business expenses, $2.3 million; advertising and
publications, $500,000. Again, these are variances, the increases that
have occurred.
Amortization expenses, $2.8 million; grants, $49.151 million.
That’s the student loan piece that we talked about. Transfers under
agreement, $47,000; other expenses, $3.3 million; recoveries external,
fees and licences, $997,000; then recoveries external, fiscal agency
loans — again, that’s student loans — $21.2 million. Those are the
increases in the revenue division.
S. Bond: From what we can, at least, see from a fiscal perspective, there
seems to be a significant increase in the funding for audits. Is that
accurate?
[4:25 p.m.]
Hon. C. James: It’s a broad range of staff. This would be a range of staff needed
to administer the employers health tax and the speculation tax. Yes,
that would include auditors, but not the majority of numbers. In fact,
it includes auditors, it includes people who work on collections, it
includes people who would work on appeals, and it includes information
technology — so a wide variety in those 40 FTEs that we talked
about.
S. Bond: I think a fair assessment of that would be, then, as the minister
points out, that because we’ve seen a significant number of new taxes or
increased taxes, we’re now seeing also an increase in the public service
in order to…. And we’re going to talk about those taxes and how they’re
administered and, obviously, the staffing requirements. But I assume
that the bulk of the staff that’s been hired in this branch, is dealing
with the administration of EHT and the spec tax. Is that
accurate?
Hon. C. James: Yes, that’s correct.
S. Bond: There was an amount set aside for an increase in the advertising,
I believe. Can the minister describe the nature of advertising that is
done and if, in particular, there was an increase in that budget line to
talk to British Columbians about what they needed to do, for example,
with the speculation tax? We certainly fielded many, many, many calls
about the spec tax and people being unsure of what they needed to
do.
Was the increase in the advertising budget related to taxation
measures, or could the minister just explain the fiscal aspect of the
advertising budget?
[S. Chandra Herbert in the chair.]
The Chair: Minister.
Hon. C. James: Thank you very much, Chair. Welcome to the chair. I’ll respond to
this question, and then if we want to go back, we have an additional
staff person in, so we can go back to the member’s questions.
[4:30 p.m.]
The member is right. This has to do with the speculation tax and
making sure that information gets out. It would include everything, as
evaluation of the information that went out and then take a look at what
needs to be done for next year.
It would include informational pamphlets. It would include the
are aware of the speculation tax. I think, certainly, the fact that it
was a new tax that was coming in and that we were informing people….
Just for the member’s interest, we are up over 97 percent response now,
so the well vast majority of people have filled in their declarations
and have that information in.
S. Bond: Could the minister, then, just pull out for us the total amount of
advertising that would have been spent related to the spec
tax?
Hon. C. James: The costs for last year were $644,000.
The Chair: Member.
S. Bond: Thank you, hon. Chair, and good afternoon to you.
I’ll finish one more question on this section, which will allow us
to move forward, and then I’m going to have our colleague continue with
her questions.
Is it possible for the minister to give us the number that…? Let
me find the best way to say this. What does it now cost to collect $1 of
tax revenue? I believe that is a number the ministry is aware of. I
think we’ve asked that question before. I think that there was an
implication that there may be a decrease in the offing in terms of how
that was done. But with new taxes now and more collection and all of
that, can the ministry provide us with what it costs to collect $1 of
tax revenue and whether or not the ministry is still on target for a
decrease in that cost?
Hon. C. James: The member is quite right that this information, in fact, is in
the service plan and continues to be in the service plan for the
Ministry of Finance. The cost of collecting $1 is half a cent. The goal
is to continue to look at how that amount gets reduced in collecting
$1.
T. Wat: I guess the minister will confirm whether the SFU contract is done
by the minister’s ministry.
[4:35 p.m.]
Hon. C. James: To the member: thank you for your patience. Yes, indeed, public
consultation for ministries is actually managed centrally through GCPE.
The cost is paid for by the ministries, but the contract is held by
GCPE. So yes, that’s why it was referred to the Ministry of Finance,
because GCPE is part of the Ministry of Finance.
T. Wat: I just want to make myself clear. The cost, the minister said, was
paid by the Ministry of Tourism, but it was managed by the Ministry of
Finance.
Hon. C. James: Yes, managed through GCPE. That’s where the consultation is
managed, funded by the ministry.
T. Wat: Since the cost was paid by the Ministry of Tourism, I was
wondering why, when I asked that question to the Minister of Tourism,
she referred all the questions to the Minister of Finance.
Hon. C. James: It’s because the contracts are managed centrally, so details about
the contract are held by GCPE. That would be why the minister would
suggest that if the member wanted more details, she ask the question of
the Finance Ministry, because GCPE is part of the Finance
Ministry.
T. Wat: Can the minister tell me what the total cost is for this SFU
contract?
Hon. C. James: The total cost of the contract was $126,425.
T. Wat: So the total cost is for the coordination, originally, for public
consultation. Later, at my request…. It’s also for the compilation of
the public consultation report.
Hon. C. James: Yes. The member is correct. That total cost covered all of those
pieces.
T. Wat: Can I have a copy of the contract? Also, has the report been
completed?
Hon. C. James: Yes. We’re happy to provide the contract. We’ll do the follow-up
with the member to provide the contract. The report is just being
finalized. That includes translation, so that’s still taking a little
bit of time, so it’s not completed yet.
T. Wat: Does the minister know when the report will be completed? I was
told earlier by the minister that there would be translation of the
report. I assume it would be translated into Chinese language. So it
will be publicly available to the general public?
[4:40 p.m.]
Hon. C. James: The timeline is the end of June. Yes, it will be publicly
available, and yes, it is being translated into Chinese.
T. Wat: Minister, I just want to confirm that I will receive a copy of the
contract. Since the report will be made public, I will be able to see
the report.
This is just for my own clarification. The decision to hire an
external organization to coordinate the public consultation was made by
the Minister of Tourism, not by the Minister of Finance?
Hon. C. James: The process would be that the ministry would be interested in
doing a public consultation. They would sit down with GCPE, which
manages that process centrally. They would talk about the criteria, the
things that they were interested in and the areas that they wanted to
have covered. They would have that conversation with GCPE. GCPE would
then look at the providers that are available and would make that
decision.
T. Wat: So the decision was entirely between the Minister of Tourism and
GCPE.
Hon. C. James: Yes, that’s correct.
T. Wat: The Finance Minister was not involved in the decision to hire an
external organization for the coordination of the public
consultation.
Hon. C. James: The reason it’s with the Ministry of Finance is because GCPE is
part of the responsibility of the Ministry of Finance.
T. Wat: It’s very clear. Thank you, Minister.
I just want to share my own experience with the Finance Minister
since the Minister of Tourism said that I should direct all the
questions to the Minister of Finance, so I will have to share this with
you.
When I was the Minister Responsible for Multiculturalism, I
undertook seven public consultations throughout the province for the
apology motion, and we did it entirely in-house. It was all civil
servants, all the staff of multiculturalism. They were coordinating the
public consultation, and I, as the Minister Responsible for
Multiculturalism, made sure that I attended each and every one of the
seven public consultations. The report was subsequently compiled by the
staff of the multiculturalism branch.
I don’t understand why we have to spend taxpayers’ money to hire
the external organization to do public consultation. Is the minister
suggesting that our staff at multiculturalism are not qualified and
professional enough to coordinate a public consultation? Why should we
waste taxpayers’ money to coordinate a public consultation when we have
all the qualified and professional civil servants in the ministry that
can do the job?
I set an example, and to be honest, the fate of my public
consultation was much better than the one undertaken by the Ministry of
Tourism through SFU. When I did the public consultation, there were a
total of 1,300 people turning up for the seven public consultations. And
for the four later on — because I talked to the media in Richmond…. For
the five public consultations that this Chinese-Canadian museum has
done, there’s only a 480 audience that turned up.
So there’s one-third of the people that turned up at the public
consultation they undertook. I just don’t understand why it has to be
done by an external organization and not by the professional and
qualified staff at Multiculturalism.
[4:45 p.m.]
Hon. C. James: Each of the ministries would take a look at the resources that are
available, the expertise that’s there. Certainly, in this case, SFU does
hold expertise on museums, in particular, which was a particular skill,
and then those decisions are made by the individual
ministries.
T. Redies: Now, Minister, I’d like to talk a bit more about the speculation
tax, if you’re okay with the staff that you have. All right. Thank
you.
The minister had talked about the advertising costs of $644,000. I
wonder. Can the minister explain in detail and itemize all of the costs
associated with the implementation of the speculation tax, with a dollar
figure?
Hon. C. James: The total for salaries and benefits is $1,540,616, and the total
for operating costs, which obviously would include business expenses and
systems, would be $6,036,281.
T. Redies: It is our understanding that there was a contract provided to Fast
Enterprises of $14.7 million to build the system. So presumably that is
also part of the cost of the spec tax?
[4:50 p.m.]
Hon. C. James: The contract that the member is talking about — $10 million of
that was for the speculation tax. But that’s capital, so that gets
amortized over the time period, so the amortization costs were $343,000.
That’s included in the total that I gave the members.
T. Redies: Can the minister tell us if any third-party contractors have been
used in order to administer this tax? Are there any, for example, people
who are being used or who have had to be hired to man the call centre,
for example, for the spec tax? If so, what is that, and what is the cost
associated with that?
Hon. C. James: Yes, we used Service B.C. Again, these are related to call centres
and being able to manage those. We also had a contract with Advanced
Solutions for the call centre, to ensure that we had people there to be
able to take people’s calls. Again, those are included in the numbers
that I provided to the member.
T. Redies: How many people in government and third-party providers are
actually working on the speculation tax administration?
Hon. C. James: In the ministry, ongoing for administering the speculation tax,
it’s about 30 people. They don’t spend all of their time, necessarily,
full-time on the speculation tax. That’s the advantage of having people
inside the ministry: they can also provide support in other areas as
needed. But it’s approximately 30 people.
T. Redies: Does that also include the call centre people that have been
hired?
Hon. C. James: No, that does not include the call centre. That’s ongoing people
within the ministry administering the speculation tax.
T. Redies: So how many people, third-party contractors, are working on the
speculation tax?
[4:55 p.m.]
Hon. C. James: I mentioned that there were two contracts that were used for the
call centre. One of those was Service B.C., and one of them was Advanced
Solutions. The Advanced Solutions contract is finished. That only went
till March 31. We can get the hours. We’re billed by hours, so it’s not
FTEs. I could get some numbers for how many people were in place for
that previous contract, but that one finished up March 31.
We have an ongoing contract with Service B.C. for tax questions,
so that’s approximately 50 FTEs. Again, that varies, depending on the
busyness and the other issues they’re doing, so this isn’t simply for
speculation tax. They’re actually doing the rural taxation calls, as
well, right now. That contract goes to the end of May, and again, we
expect those numbers to drop down after that as well.
T. Redies: I just wanted to go back to the software solution that the
ministry contracted with Fast Enterprises to build. I think the minister
said it was $10 million, and the amortization costs that are being
applied here are $343,000 annually. That would imply an amortization on
a software solution of 29 years. Is that actually the case?
Hon. C. James: The cost that I talked about, the $343,000, is three months’ worth
of amortization, because it doesn’t start being amortized until it
becomes operational. And it’s a five-year amortization.
[5:00 p.m.]
T. Redies: I’m sorry. Can somebody explain the math to me on that? For a $10
million…. You’re taking $343,000 every three months?
Hon. C. James: Yes.
T. Redies: I’m sorry. I don’t understand how you get to five years, but we’ll
move it along.
Are there any ongoing support costs associated with this contract
with Fast Enterprises — annual support costs?
Hon. C. James: We have an ongoing maintenance agreement already in place with the
company, so it isn’t broken down. We’ll go back and take a look and see
if we can get the numbers of it broken down, because we already have an
existing relationship with them on maintenance. I’ll check and see if we
can get the broken-down numbers for the speculation tax.
T. Redies: Could the minister just tell us what the total support contract is
with Fast Enterprises on an annual basis and then get us those
specifics?
Hon. C. James: We’re getting that information, so if the member wants to ask
another question, we’ll get that back.
S. Bond: I’m going to ask a series of questions that are really about the
numbers behind the speculation tax, so hopefully the minister has the
right staff there. We’ll start with how many declaration notices have
been issued.
Hon. C. James: To the member, 1.62 million notices sent out.
S. Bond: It’s 1.62 million. How many declarations have been
filed?
[5:05 p.m.]
Hon. C. James: So 1.53 million notices have been returned. That’s an over 97
percent return.
S. Bond: Of the declarations that have been filed — so 1.5 million of them
— how many will be required to pay tax?
Hon. C. James: As the member knows, we’ve been continuing, including reminder
letters and other processes, to give public updates on the declaration
rate. We’ve issued notices, as well, since the declaration opened in
January, so that work is still ongoing.
I’ve asked Finance to, obviously, pull the information together as
quickly as we can, but it will be after those notices go out and when
the tax notices are received, because again, people still have the
opportunity to be able to make their declaration if they didn’t have a
chance to make that declaration. So information will be released
later.
S. Bond: Is the minister saying that at this point she doesn’t know how
many people are going to have to pay tax, and people have not received
that taxation notice? So there are people in British Columbia who have
filed a declaration, and they don’t know they’re going to have to pay
tax?
[5:10 p.m.]
Hon. C. James: Maybe I’ll just walk through the process again, just so we’re
clear.
I think, as the member knows, that the notices went out. People
did their declarations. They claimed their exemption if they were
eligible for exemption. If they had to pay the speculation tax, they
would have received their number that they had to pay. That pops up as
part of that process. They have until July 2 to be able to pay their
tax, if they owe their tax. They still have an opportunity to claim
their credits. That process, again, continues on until July
For us to have an accurate picture of how many people will be
paying tax and what they will be paying, it will need to occur after
July 2. As I said, I’ve asked the ministry staff to pull that work
together as quickly as possible after the July 2 deadline because we
know it’s important. It’s certainly important for us and for the public
to know what the preliminary results are.
Until we do that work, until we go through that process, until
people have had the opportunity to be able to claim their credits, you
don’t have an accurate picture of the information that’s needed. So as
quickly as possible after the July 2 date, we’ll have a better analysis.
We’ll do some preliminary results. We’ll release those as quickly as we
can to the public. As we’ve done with other estimates, they’ll be
posted. Then we’ll have an opportunity, as I said, to look at the final
numbers as well.
S. Bond: I have one follow up. My colleague is then going to ask
one.
Can the minister not tell me, then…? Notices, declaration,
exemptions — and the minister references the fact that they received a
form that would pop up and tell them they have to pay this amount of
tax. What number of British Columbians received that form that says:
“Here’s the tax you’re going to have to pay?”
[5:15 p.m.]
Hon. C. James: As I said, it’s too preliminary at this stage to have a breakdown.
We need the breakdown, obviously, of British Columbians, the breakdown
of other Canadians and the breakdown of foreign investors or foreign
owners to be able to make that determination. Again, that determination
won’t come in until we get to July 2, until people have had the
opportunity to claim their credits, to be able to have accurate
information to put together.
T. Redies: I believe the minister was just lauding the fact that 97 percent
of the people who are affected by this registry have registered. I
believe the number of people originally affected was 1.62 million and
the number that had registered was 1.53 million. That would imply that
there are 90,000 people still to register.
If that’s the case, there were 96,000 people as of March 31 that
had not registered for the spec tax. That suggests that the ministry is
dealing with this at about 6,000 people a month. To get through that
amount of people would be 15 months.
The minister said last year that 32,000 households would be
affected. You’ve got 90,000 outstanding, and you’ve got 1.53 million
that have registered, and we don’t know how many of those are paying the
tax. So just exactly how many people are going to be affected by this,
Minister?
Hon. C. James: I’m not sure of the member’s numbers that she was putting
together, but I just want to make sure I’m clear, because I think there
was a correction on that. The 97.15 percent of people who put their
notices in would be 1.58 million, so it’s about 40,000
outstanding.
Again, that’s part of the reason that it’s important to make sure
that we get the information that comes in, 40,000 outstanding, whether
they pay the taxes, whether they are exempt. That’s still work that
obviously has to happen and has to occur. As people know, if they
haven’t claimed, if there were extenuating circumstances and they still
get a notice and they think they have to pay, that they still have the
opportunity. If they’re exempt, they will not pay the speculation
tax.
All of that data is important. That’s part of the reason that the
July date is so critical for us to be able to have the accurate
information to put together.
T. Redies: I think if we go back in Hansard , the original number
that the minister said was 1.53 million. So I’m glad to hear that it’s
actually better than that. But that’s still 40,000 people who have not
registered who could be subject to this tax if they don’t register
before the date. Am I not correct, Minister? If they do not register
before July 2, they will be sent a property tax notice suggesting they
have to pay 0.5 percent this year. Then, if they don’t register next
year, it’s 2 percent.
Hon. C. James: I think the member has heard me say this both publicly as well as
many times in the House. If people receive their bill because they did
not register, because they didn’t….
[5:20 p.m.]
Maybe there were circumstances…. Whatever the reason they didn’t
register, they still have the opportunity to phone in. They have the
opportunity to be able to file their exemption. If they are exempt, they
will not pay the tax.
T. Redies: Thank you for that answer, Minister. I guess that with 40,000
people who have not registered and then 1.58 million that have
registered, some of who I know are already receiving their tax notices
for the spec tax, it would seem that we have the potential for there to
be many more numbers of people affected by this tax.
Does the minister still believe that it will only be 32,000
households that will be affected by this particular tax?
Hon. C. James: Again, we believe our estimates are good estimates. We still
believe our estimates. But again, the member is asking about specifics.
It will be important to wait for that July date to make sure that we
have the specifics to be able to give the best information we can.
That’s why we’re waiting for the July date.
S. Bond: Well, thank you very much. We’re going to continue to work through
some numbers questions, because we want to at least set down a marker so
that that information is provided to us.
I’m sure the minister is not going to be surprised that…. This is
mind-boggling — that 1.62 million British Columbians got notices, the
vast, vast majority of whom are nowhere near being speculators. I feel
like we’ve almost heard from about a million of them in our
time.
We have stacks of people who are concerned about this. The
minister can celebrate the fact that only 40,000 people have not filed
their declarations, but believe you me, of the ones that did file, there
are a whole lot of people who really didn’t want to have to do that and
didn’t feel they should have. However, I digress.
Can the minister tell us, please, how many rental exemptions have
been claimed so far?
Hon. C. James: Again, I think the member has run through the numbers that are
there. I’ll again repeat that the July date is an important date,
because that’s when the gathering of the information will occur. It’ll
give us a chance to do the proper analysis that needs to occur to be
able to put accurate information out for people. So all of that kind of
anal