2010 Legislative Session: Second Session, 39th Parliament

HANSARD

The following electronic version is for informational purposes only.

The printed version remains the official version.

official report of

Debates of the Legislative Assembly

(hansard)

Monday, March 22, 2010

Afternoon Sitting

Volume 11, Number 9

CONTENTS

Page

Routine Business

Tributes

Darren Fitzpatrick

Hon. G. Campbell

Sophie Thomas

Hon. G. Abbott

Maria Ho

J. Kwan

Hari Sharma

R. Chouhan

Maurice James Hillard M c Kennirey

M. Karagianis

Introductions by Members

Tributes

Carl Liden

G. Gentner

Introductions by Members

Statements

Sinking of Queen of the North

G. Coons

Tributes

UNBC Timberwolves CCAA men's basketball championship

Hon. S. Bond

Tabling Documents

Office of the Conflict-of-Interest Commissioner, annual report, 2008-2009

Ministerial Statements

2010 Olympic and Paralympic Games

Hon. G. Campbell

C. James

Introduction and First Reading of Bills

Bill 4 — Miscellaneous Statutes Amendment Act, 2010

Hon. M. de Jong

Bill 5 — Zero Net Deforestation Act

Hon. P. Bell

Statements (Standing Order 25B)

Paralympic Games and athletes

R. Howard

Bernice Levitz Packford

C. James

Seycove Secondary School activities

J. Thornthwaite

Journée de la Francophonie

N. Simons

World Water Day and water legislation In B.C.

J. Slater

Statements (Standing Order 25B) (continued)

Chimo Achievement Centre in Coquitlam

D. Thorne

Oral Questions

School district costs and funding

C. James

Hon. M. MacDiarmid

R. Austin

Funding for Surrey school district

H. Bains

Hon. M. MacDiarmid

Funding for Vernon and Central Okanagan school districts

N. Macdonald

Hon. M. MacDiarmid

Funding for community social services worker pension plans

S. Simpson

Hon. C. Hansen

B.C. Hydro energy purchase agreements with Finavera Renewables

J. Horgan

Hon. B. Lekstrom

B. Ralston

Child in the Home of a Relative program and extended family program

N. Simons

Hon. M. Polak

Petitions

K. Conroy

Orders of the Day

Second Reading of Bills

Bill 3 — Supply Act (N o . 1), 2010

Hon. C. Hansen

B. Ralston

Bill 2 — Budget Measures Implementation Act, 2010

Hon. C. Hansen

B. Ralston

Throne Speech Debate (continued)

R. Fleming

Hon. K. Krueger

M. Mungall

R. Sultan

H. Lali

D. Barnett

R. Chouhan

Proceedings in the Douglas Fir Room

Committee of Supply

Estimates: Ministry of Citizens' Services

Hon. B. Stewart

D. Routley

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MONDAY, MARCH 22, 2010

The House met at 1:37 p.m.

[Mr. Speaker in the chair.]

Routine Business

Tributes

DARREN FITZPATRICK

Hon. G. Campbell: Hon. Speaker, on behalf of all British Columbians, I'd like to extend the Legislature's condolence to the family of Cpl. Darren Fitzpatrick of Prince George. He unfortunately succumbed on Saturday to injuries sustained earlier in the month while on patrol in Afghanistan. Corporal Fitzpatrick proudly served with the 3rd Battalion of Princess Patricia's Canadian Light Infantry and had been in Afghanistan since October on his first tour of duty.

Today I think we all should reflect our gratitude for the men and women who serve our country on Canadian soil and around the world. Canadians like Corporal Fitzpatrick take on dangerous jobs on behalf of all of us to protect our freedoms and help make the world a better place for the people of the world to live.

British Columbians stand shoulder to shoulder in support of Corporal Fitzpatrick's family, friends and brothers-in-arms at this difficult time. I would hope that the Legislature will send their condolences and their support and prayers to the family.

SOPHIE THOMAS

Hon. G. Abbott: It's with great sadness that we mark the passing of Sophie Thomas, a healer and elder with the Saik'uz First Nation. Sophie passed away Wednesday in her home south of Vanderhoof. Sophie Thomas was a living encyclopedia of traditional ecological knowledge and provided much of the content and inspiration for the book Plants and Medicines of Sophie Thomas , prepared by UNBC professors Jane Young and Alex Hawley and published in 2002.

The movie The Four Seasons of Sophie Thomas was also based on the Carrier elder and her profound knowledge of an ancient wisdom about the medicinal value of plants. For the past 20 years she'd been invited to speak at elementary and high schools, colleges and universities. She'd also spoken at international conferences, sharing her knowledge of herbs and traditional Carrier healing.

Ms. Thomas was a founding community member of the Carrier-Sekani Tribal Council, which represents eight nations west of Prince George, as well as the Yinka Déné Language Institute. She was to receive an honorary degree from UNBC this May to recognize her work as a prominent knowledge-keeper and medicine woman.

I'd ask that members of the House join me in celebrating her accomplishments and sending our condolences and prayers to the Thomas family during this very difficult time.

MARIA HO

J. Kwan: I, too, have some sad news to share with members of this House. On Wednesday, March 10, Mimi Ho, who was also known as Maria Ho although many of us called her Mimi, passed away very suddenly. She was diagnosed with an inoperable brain condition at the hospital and died peacefully the next evening. She was surrounded by her husband, her three daughters, her grandson, and other close family members and friends.

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Those of us who knew Mimi would have known that she was the founder of the Strathcona Chinese Dance Company. In fact, those of us who attended community events would have seen her dancers at virtually every community celebration. So it is with great sadness that I inform the House of this news. I ask you, Mr. Speaker, if you would send condolences and deep regrets on behalf of all of us to the family.

HARI SHARMA

R. Chouhan: Mr. Speaker, I also want to share very sad news. Last week on Tuesday a very dear friend, Prof. Hari Sharma, passed away at his house. Those who know Hari Sharma…. He was very passionate about defending human rights. He did everything since 1968, when he arrived in Canada, to stand up for workers' rights and people in general.

He was connected with all those people's rights all across the world, not only in the Lower Mainland. He was everywhere, with the native people, with the aboriginal rights. With great sadness, he left us last Tuesday. Yesterday there was a funeral for Hari Sharma, and more than 400 people came to join us there. I want to say thank you to all those who came.

Maurice James Hillard M c KENNIREY

M. Karagianis: Hon. Speaker, I would like today to mark the passing of Maurice James Hillard McKennirey. Maurice was 84 years old. He lived a full and happy life, although he was captured by Alzheimer's in the last years of his life. He is succeeded by three children, nine grandchildren and three great-grandchildren. He passed away this morning. Maurice was my father.

Introductions by Members

Hon. M. Coell: Watching the proceedings in the House today are several Association of Canadian Mountain

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Guides members, who responded to the recent and urgent avalanche calls by immediately rushing to the aid of the victims. These professionals selflessly brought their advanced knowledge of the mountain environment, safe travel and rescue to these desperate situations, helping to ensure the well-being of many. Will the House please help me in welcoming them.

M. Farnworth: In the gallery today are a group of students and their teachers from Archbishop Carney Regional Secondary School in my constituency of Port Coquitlam. They're here to watch question period and learn how this place functions. Will the House please make them most welcome.

J. McIntyre: In the gallery today are the parents of one of our terrific caucus communication officers, Sheldon Johnson. His parents, Ken and Tracy Johnson, are here visiting — I guess to see their son at work. I understand they hail from Medicine Hat, which I know is the hometown of our famous and favourite Canuck Trevor Linden. I hope the House will make them feel welcome.

R. Chouhan: In the gallery today we have a delegation of 22 members of Shri Guru Ravidass Sabha, also known as the Gilley temple in Burnaby, led by Mr. Surinderpal Gaught and Mr. Hukam Chand. Also with them is Mr. Harbhajan Lakha, a former MP from the state of Punjab who is joining us today. The temple is holding its third annual community parade in Burnaby on April 3 at 10 a.m. It is expected that more than 15,000 people will be joining that community parade, and the temple would like to invite everyone to join them. Please join me to welcome the delegation.

L. Reid: I have a very special guest in the gallery today. She first occupied a seat there when she was probably ten days old. She's now ten years old. I would ask the House to please welcome my daughter Olivia Reid-Friesen.

Hon. B. Lekstrom: Today joining us in the gallery are a number of workers with Nexen. Joining us are Paul Jonassen, the VP of asset management; Ron Bailey, the general manager of shale gas; Brian Humphreys, the director of governmental relations North America; as well as Doug Bearinger, who is the geology adviser for shale gas. Would the House please help me make them welcome.

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Tributes

CARL LIDEN

G. Gentner: Today is a sad day for all of us in Delta and British Columbia. I would like the House to express its condolences to the family and friends of Carl Liden. Carl was a former member of the House. He was a member of the Barrett cabinet in the 1970s. I met Carl 25 years ago at the hall he helped build with his own hands, Sunbury

Park Hall. It's a fishermen's hall. It actually has one of the only spring floors in the Lower Mainland.

He was with the Tunnel and Rock Workers, a worker's advocate, a labourer's union. I think he was the business agent. United Fishermen and Allied Workers — he was a business agent there, and it was a very tumultuous time in British Columbia's labour history.

He was a fisherman and a worker on a packer ship. He served as a board member of Deltassist and many organizations and charities in Delta. He was chair of the board of the Delta Credit Union for ten years. He was a municipal councillor from 1958 to 1964, where he was in charge of the headhunting committee that actually hired Delta's first city planner, by the name of Bob Williams.

He became Minister of Transportation and Communications, and he was in charge of the ferries, but he'll always be most remembered because he was one of the forefathers of the Agricultural Land Commission. He took a lot of flak when he took his position on the floor, but he stood his ground.

Of course, Canadian Japanese fishers will miss him, because he stood up against the Japanese internment. He was a hard-working man, and he was very dedicated. I ask the House to bid Carl all the best on his next journey.

Introductions by Members

M. Dalton: Today in the gallery we have Art and Evelyn Schindel visiting us from Moose Jaw, Saskatchewan. This is their first visit to the Legislature, and they are with their son, Rev. Tim Schindel with Leading Influence Ministries here in Victoria. Would the House please make them feel welcome.

Statements

sinking of queen of the north

G. Coons: Four years ago to the day, March 22, 2006, the Queen of the North sank. Gerald Foisy and Shirley Rosette lost their lives and left their families questioning what happened that fateful night, as well as questioning what the numerous events were that led up to this tragic sinking. Fifty-seven passengers and 42 crew members were on board, many still suffering from this traumatic experience. The heroes of Hartley Bay still witness the upwelling of diesel as it drifts by their harvesting grounds.

As the months go by, we all hope that the families that lost loved ones, the passengers, the crew and British Columbians will finally get closure to this devastating event.

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Tributes

unbc timberwolves

CCAA men's Basketball Championship

Hon. S. Bond: On behalf of my colleague from Prince George North, we want to extend incredible congratulations to the UNBC Timberwolves men's team. In fact, both our women's and men's teams finished their season this year, their regular season play in the Canadian College Athletic Association, with 17 wins and one loss. The men went on, on Saturday night coached by Coach Mike Raimbault, and he was named coach of the year.

In fact, our Timberwolves beat the Southern Alberta Institute of Technology 96 to 63 in the final, becoming national champions for the first time in UNBC's history. It was absolutely amazing. I wanted today to recognize that while the team is fantastic, we had three absolutely unbelievable performances by Inderbil Gill, who was the most valuable player in the country. We had Jose Araujo, who was actually our first team all-star and hit more three-pointers than you can imagine. Francis Rowe also made the second team all-star team.

Congratulations, Timberwolves. We're proud of you. It's the first of many to come, I'm sure.

Tabling Documents

Mr. Speaker: Hon. Members, I have the honour to present the annual report of the Office of the Conflict-of-Interest Commissioner for 2008-2009.

Ministerial Statements

2010 OLYMPIC AND PARALYMPIC GAMES

Hon. G. Campbell: I rise to make a ministerial statement. Last night we marked the end of a remarkable time in the history of our province and our country as the Paralympic torch was extinguished, and we all said goodbye to the 2010 Paralympic Winter Games. It was the end of a remarkable story written by countless Canadians and thousands of others around the world who we are proud to call our friends.

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The 2010 Winter Paralympics were the most watched in history. Thirty-three nations televised the first Paralympic Winter Games ever to be held in Canada. As Sir Philip Craven, president of the International Paralympic Committee, said, the 2010 games were "truly magical" and in his words, "the best games ever."

International Olympic and Paralympic committees gave us a great opportunity. I know that all British Columbians and certainly all Canadians are grateful and honoured that we were allowed to host those games in our province and in our country. It was an exceptional opportunity for all of us to open our doors to the world and welcome new friends from nearly every corner of the planet.

The Paralympians gave Canadians a chance to have a defining moment in our history yet again, and they provided a stage for a display of incredible Canadian pride. At the same time, they gave Paralympians the opportunity to show their incredible athleticism, their dedication and their commitment, and left an unequivocal message that the most powerful muscle in the human being is their heart, their imagination, and all we can do when we dream and pursue our goals together.

To all the Paralympic athletes, I would like to say a special thank-you for reminding us of the values we have and the values they have shared with us that help make us a better society: sportsmanship, dedication, friendship, and an unparalleled respect and honour for each other.

We should all pause today and remember the Georgian luger, Nodar Kumaritashvili, who unfortunately lost his life at the beginning of this incredible odyssey. I take my hat off to John Furlong and the people from VANOC, who have reached out continuously to the people of Georgia to offer our thanks for their understanding, our support and our sympathy. Mr. Furlong is in Georgia with them today as they remember that great athlete. We will all remember him in Whistler, in British Columbia and in Canada as we have a memorial constructed in his honour.

We owe a great debt of gratitude to the Paralympians who taught us what it really means to overcome a challenge and who remind us that every day the human spirit can drive us forward to a better life for all involved in our communities.

We've had the opportunity, I think, in the last month and a half to watch some truly great athletes who deserve our respect. They deserve our honour, and they deserve our thanks for the example they have set for all of us.

The Paralympians bring out the best in all of us and raise awareness of the necessary steps we have to take to help others in our community and others around the world. Programs such as Canada's Soldier On program — which provides the resources and opportunities for ill and injured, past and present, Canadian Forces personnel to fully participate in physical fitness, health promotion and sport activities — are just as important as the Own the Podium program is to our Olympic athletes. They are just as important, as they inspire people to become fully part of our community and pursue their own goals and objectives.

Not only did the Paralympians inspire us, but did they ever know how to put on a great show. For anybody that had the opportunity to see the Paralympians on the slopes, in the rinks or on the curling sheets, you will know they are truly great athletes with superb talent and a passion that's unmatched in any other sport in the world.

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We should all take a moment to be proud of our Canadian Paralympic athletes. North Vancouver's Lauren Woolstencroft became Canada's first golden girl when she set a Canadian record for the most gold medals in a single Paralympics, with five gold medals. She truly did dominate the standing women's alpine competition, winning super combined, slalom, Super-G, downhill and giant slalom events.

Edmonton's Viviane Forest won five medals in the visually impaired category of women's alpine, including one gold in women's downhill, three silvers and a bronze medal. Viviane was aided by her guide Lindsay Debou from Whistler, British Columbia.

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Of course, there was the inspiring story of Brian McKeever, an Olympian and a Paralympian from Canmore, Alberta, who won three gold medals at the Paralympics with the help of his brother and sight guide Robin.

Canada continued to show that we are the best at one of our national pastimes when it comes to mixed wheelchair curling team when they took home the gold medal with a narrow — much too narrow, I said to Jim — 8-7 victory over Korea. Four of the five members of that team were from British Columbia: Jim Armstrong and Darryl Neighbour from Richmond, Ina Forrest from Armstrong, Sonja Gaudet from Vernon, as well as Bruno Yizek from Calgary. What a great job they did for all of us.

During these Paralympics Colette Bourgonje of Saskatoon was actually competing in her ninth Paralympics. She managed to win a silver and a bronze medal in women's sitting cross-country events. I was fortunate enough to be on the mountain the day that Josh Dueck won a silver medal in men's slalom sitting event, right here in British Columbia. He's from Vernon. Karolina Wisniewska from Vancouver won a pair of bronze medals in women's alpine skiing standing event. Canada won ten gold medals, 19 medals in all, and came third for a record number of medals for Canadians at Paralympic Games right here at home.

I know we want to say congratulations to all the countries that participated in the games, to all the athletes who participated in the games, but a special thank-you to all their families, all of their friends, their supporters, their coaches and their technicians. All of them overcame some pretty incredible obstacles to be able to compete at the international level on behalf of their country. They made all of us proud with not just their participation but the excellence they showed in each of the sports that they chose.

The 2010 Olympic and Paralympic Games were the culmination of years of hard work by thousands of people. Thousands of people gave their time year in and year out, month in and month out. Just in the last number of weeks we have seen that incredible army of blue-jacketed volunteers from every corner of our province and every province in our country make sure that everyone knew that when they came to Canada, they were welcome. We wanted them to do their best in the field of play, and we were proud of all that Canada had to offer them. To them, we should say a very special thank-you for volunteering their time and for making these Olympics truly exceptional.

As John Furlong said last night, I'm sure that Jack Poole was watching down and that he had a big smile on his face. He started with a vision to make sure that these were Canada's Olympics, that we embraced all Canadians, that we embraced Paralympians from every part of this country and that Canada was able to hold itself up to the world, to be a mirror to the world of what we have and what we offer to people when they live here.

The Paralympics should surely remind us of what we have accomplished. But as Rick Hansen so eloquently reminded us yesterday, they should also remind us of what more we can do — what more we can do to reach out and help people reach their full potential in whatever line of endeavour they may choose to pursue.

To athletes, to the media, to torchbearers and community organizers across our province, to the people who have spent their lives bringing these games to us, I'm pleased to stand here on behalf of all British Columbians to say thank you for the example you have set and for the gift you have given us in the 2010 Winter Olympic and Paralympic Games.

Together, complete strangers waved the Maple Leaf flag with glowing pride and patriotism. Together, we chanted: "Go, Canada, go!" Together, we erased the boundaries that often separate us from pursuing our common objectives and our common goals. Together, whether we were in restaurants, celebrating on our streets or in the comfort of our own living rooms, we broke out and loudly sang O Canada .

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I won't forget one story that I was told. Someone had come to go to the closing ceremonies. The streets were packed. They decided to park their car in a parking lot a few blocks away from the stadium. On the way there the five-year-old daughter sang O Canada every step of the way. She was joined by a different choir and a different chorus of people singing O Canada with her. As he said to me: "I am sure that my children won't remember any particular sporting event, but they will remember singing O Canada when we hosted the Olympic and Paralympic Games."

Last night in Whistler, as the athletes came through the village and were cheered by the people of Whistler for all that they have given us, you couldn't help but feel a sense of pride for what Canada has given the world. Thanks to the Olympics and the Paralympics, we've remembered who we are. We've remembered what we can accomplish. I'm sure all of us — our families, our children and those who will follow — will be able to touch back to the 2010 Winter Olympic and Paralympic Games and say: "We can be better when we work together."

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Thank you, hon. Speaker, and thank you to the Paralympians.

C. James: I want to echo the words of support for the Paralympics and the Paralympic athletes.

It was an extraordinary time for all of us to watch the energy, the dedication, the commitment of those athletes, of the volunteers. It was an extraordinary event to attend the opening ceremonies and to watch the crowds cheer as the athletes came in.

If anyone thought that these were secondary to the Olympic Games, they just had to attend the opening ceremonies to see the kind of energy of the crowd who stood up and cheered on every single one of those athletes. I certainly think the countries with one athlete or two athletes received just as loud a cheer as they came in as the countries that came in with teams, because we know the dedication it took to get there.

As the Premier has said, this was a Paralympic of records and a Paralympic of firsts. We were extraordinary when it came to the medal haul, when it came to the first on Canadian soil. But I think what I'll remember the most in the importance of these games was the extraordinary spirit of the athletes. I think that's what's important for all of us to remember at the end of these games.

The Paralympics is about more than just simply athleticism. It's also an opportunity to show that disability doesn't mean "to stop." Disability doesn't mean "a hindrance." Disability can mean ability, and that's what we saw so loud and clear in these games — the abilities of athletes, the abilities of individuals.

I don't think any of us can underestimate the difference it makes to a child who's struggling with a disability to see that kind of performance, to see what they're able to do. I also think it was incredibly fitting and great timing that the closing of the Paralympics occurred on the 25th anniversary of Rick Hansen's Man in Motion tour. Again, what a role model for all of us, for people across the world, when it came to showing what people with disabilities can really do.

On behalf of the opposition I also want to echo our appreciation to the volunteers and to the organizers but most importantly to the Paralympians for showing all of us what you can do, for reminding all of us what determination and hard work can really do.

Introduction and

First Reading of Bills

Bill 4 — MISCELLANEOUS STATUTES

AMENDMENT aCT, 2010

Hon. M. de Jong presented a message from His Honour the Administrator: a bill intituled Miscellaneous Statutes Amendment Act, 2010.

Hon. M. de Jong: I move that Bill 4 be introduced and read a first time now.

Motion approved.

Hon. M. de Jong: Bill 4 amends the following statutes: the Coroners Act; the Child, Family and Community Service Act; the Employment Standards Act; the Engineers and Geoscientists Act; the Health Authorities Act; the Hospital District Act; the Music Teachers (Registered) Act; the Teaching Profession Act; the Water Act. The bill also makes some housekeeping and clarifying amendments to several other statutes and repeals a number of obsolete statutes.

I move that the bill be placed on the orders of the day for consideration at the next sitting of the House after today.

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Bill 4, Miscellaneous Statutes Amendment Act, 2010, 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.

BILL 5 — ZERO NET DEFORESTATION ACT

Hon. P. Bell presented a message from His Honour the Administrator: a bill intituled Zero Net Deforestation Act.

Hon. P. Bell: Mr. Speaker, I move that Bill 5 be introduced and read for a first time now.

Motion approved.

Hon. P. Bell: Today I introduce Bill 5, which establishes in legislation the government's goal of zero net deforestation for the province of British Columbia. Today's bill states that the province must achieve a goal of zero net deforestation by December 31, 2015.

British Columbia's forests are an important ally in the fight against climate change. Deforestation releases greenhouse gases into the atmosphere and removes trees that are absorbing and storing carbon. Greenhouse gas emissions can be reduced by avoiding and minimizing deforestation.

Impacts can also be mitigated by planting additional trees to create new forests in areas that are suitable for afforestation. Decreasing the total area of deforestation at the same time as increasing the total area of afforestation will result in a zero net loss of forest land and reduce greenhouse gas emissions.

Hon. Speaker, 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 5, Zero Net Deforestation Act, introduced, read a first time and ordered to be placed on orders of the

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day for second reading at the next sitting of the House after today.

Statements

(Standing Order 25B)

PARALYMPIC GAMES AND ATHLETES

R. Howard: I think we all stood in absolute awe as we watched the 2010 Winter Paralympics come to a close. I cannot remember being so moved, right from the moment young Paralympic hopeful Zak Beaumont lit the flame at the opening ceremonies to the closing speech of John Furlong reflecting on the life of Jack Poole.

Again our athletes came out and performed like they never had before and showed the world how great we can be. Like the Olympics, the first gold medal we won was such a special moment that made us all proud to be Canadian.

I was present at the handing off of the Paralympic torch in front of our Legislature back on March 6 and again at Riley Park on March 10. These torch celebrations definitely brought our communities closer together, and this was great to see.

Included in many of these events, as with all things Olympic and Paralympic, was Richmond's own Rick Hansen. Rick and now so many others as well, whose names we will now recognize, are people who symbolize the determination and the success that follows. He and they are exactly what you think of when you envision the games.

I'm very pleased to say that two Richmond residents were competing in the Paralympic Games. Jim Armstrong and Darryl Neighbour competed on the men's Canadian wheelchair curling team. Of course, Richmond, B.C., and Canada are all proud that these two were able to win a gold medal in their sport. They made us proud. Would the House please recognize their success.

BERNICE LEVITZ PACKFORD

C. James: Our community of Victoria lost an extraordinary woman this past week. Bernice Levitz Packford, a lifelong social activist who served her community and worked to make our world a better place, died peacefully in her home at the age of 95.

Bernice blazed a trail her whole life. She was a pioneer in social work. She fought for the rights of children, parents and foster parents. She helped form the Capital Families Association. She championed clean water and protection for green space, old age pensions, the importance of voting, the Esquimalt/Victoria Working Harbour Association, women's peace conferences, just to name a few of the activities she was involved in.

One of my first memories of Bernice was when I was six years old. Very late one night Bernice, who was a social worker, arrived on our doorstep with five children who were in need of a foster home. It was almost impossible to say no to Bernice, and she knew those people she could push who would be up to the challenge. I grew up with those children, and thanks to Bernice and my grandparents, I had an extraordinary, amazing extended family.

Bernice was known for her ferocious spirit and drive. She cared deeply about her family, her grandsons, her faith, her community and fairness in the world around her.

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I had tea with Bernice a few weeks ago, and as I was leaving, she reminded me to find the contacts for those people who were fighting the old-growth logging, because she wanted to talk to them and set them straight about their work.

If she was here with us today, she would remind us all that apathy is the biggest danger in the world. She'd push all of us to get involved, to be passionate, to keep working until all the injustices were made right.

I feel so proud to have known Bernice, and I consider it a privilege and a gift in my life that I will always cherish. She will be incredibly missed. I will miss being summoned by Bernice. I will miss being told off by Bernice. I will miss being set straight by Bernice. I'll remember her. She's missed in Victoria, but she'll always be with all of us.

SEYCOVE SECONDARY SCHOOL ACTIVITIES

J. Thornthwaite: I would like to recognize Seycove Secondary School as an example of high-calibre education, community involvement and environmental stewardship in my entire riding. Students and teachers at Seycove Secondary captured a gold-level win in the B.C. Spirit School program by participating in over 30 activities.

As participants in the Adopt a Country program, Seycove students adopted a school in Enkhuizen, Netherlands, and welcomed a World War II veteran to come to their school and speak about his battalion's efforts in the liberation of Holland. As well, the school joined the B.C. fruit and vegetable program, started a garden to reflect the Olympic pillar of sustainability and tracked the torch progress on a large display in the school's main hallway.

In recognition of their gold-level win, I was pleased to be able to present them with an ActNow B.C. 2010 Winter Games kids' package in December of 2009.

On February 10 this year, when the Olympic flame arrived in North Van, Seycove students were cheering it on with a banner the length of two city buses, which they created. Following that, Seycove's own Connor Svensrud had the opportunity to run the torch for the 2010 Paralympic Winter Games. It is clear that Seycove's Olympic spirit was second to none.

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On Friday, March 26 — this Friday — Mr. Peter Cardle and 145 grade 10 students and five adults from Seycove will be descending on the Parliament Buildings. I would ask all members and staff that come into contact with them during their visit to congratulate them on all their efforts and in making the games such a success in our riding as well as making global citizens of our students.

JOURNÉE DE LA FRANCOPHONIE

N. Simons: En célébrant le jour de la francophonie, je veux premièrement exprimer ma fierté d'être représentant d’une circonscription des plus francophones hors des deux centres métropolitains. La région de Powell River–Sunshine Coast, joui de communautés francophones actives et vibrantes.

Même s'il y a deux jours depuis la journée de la francophonie, c'est encore le mois désigné par notre gouvernement pour célébrer les richesses culturelles que nous apprécions grâce à nos frères et sœurs francophones de partout dans le monde.

A Powell River, nous avons aussi un centre culturel, le club Bon Accueil. Je veux féliciter les fondateurs et fondatrices qui avaient la prévoyance d'établir un tel établissement; et les bénévoles qui, depuis plus de 40 ans ont créé un héritage non seulement pour les résidents locaux, mais que le reste du Canada peut émuler.

[In celebrating the Journée de la Francophonie, I'd like to first say how proud I am to represent a rural community with the most robust French-speaking communities in the province. Powell River and the lower Sunshine Coast each have an active and vibrant French-speaking community.

While the Journée de la Francophonie was two days ago, the month has been declared by our government as one to celebrate the cultural diversity we enjoy due to our French-speaking brothers and sisters here and around the world.

Powell River–Sunshine Coast has the distinction of having two French schools — Ecole du Pacifique in Sechelt, founded in 1986, and Ecole Cote du Soleil, founded in 1979 in Powell River. Combined, they have an enrolment of over 200 students from elementary to high school.

Powell River also has a cultural centre, le Club Bon Accueil, which, loosely translated, means a place of a warm welcome. I'd like to congratulate its founders, who over 40 years ago had the foresight to create this place, as well as all the volunteers who have created a legacy not just for residents but for the rest of the country to emulate.

[French text and translation provided by N. Simons.]

WORLD WATER DAY AND

WATER LEGISLATION IN B.C.

J. Slater: Whether it is for human consumption, industrial processing, irrigating or agricultural uses, water touches everyone, and today, March 22, is World Water Day.

[1415]

The theme for the World Water Day 2010 is "Clean water for a healthy world." The overall goal for the 2010 campaign is to raise the profile of water at the political level so that water quality considerations are made alongside of those of water quantity.

It is still a reality that it's estimated that 1.1 billion people in the world rely on unsafe drinking water sources. Special events are happening throughout the world to bring awareness to the importance of water quality and quantity.

Mr. Speaker, I am very pleased and honoured that I will be at the launch of the Okanagan Basin Water Board's water supply and demand project this Friday, March 26, in Kelowna. After more than three years of intense study the project provides a comprehensive look at water availability in the Okanagan Valley. Most importantly, it includes an analysis of how our water supply will be affected by climate change. We believe that this project will be a learning resource for all watersheds in our province.

To respond to the new challenges that exist for managing British Columbia's water, including dealing with population growth and climate change, the government is looking at ways to modernize the Water Act. The Water Act was established in 1909 and is the province's primary water management legislation. The government recognizes that the social context in the Water Act was built upon very different circumstances a hundred years ago.

[ Page 3464 ]

Through the months of March and April the Ministry of Environment's water stewardship division is hosting 12 one-day Water Act modernization workshops throughout the province to share information, discuss principles for a new water act and explore proposals for change.

CHIMO ACHIEVEMENT CENTRE

IN COQUITLAM

D. Thorne: The Chimo Achievement Centre in Coquitlam has closed. For 25 years Chimo, a therapeutic rehabilitation centre, served North Fraser adults under 60 who suffered from serious physical disabilities. Chimo closed its doors to clients on January 31 when Fraser Health decided to cut the program, even though it had the small annual budget of only $164,000. What false economy.

Last Wednesday was the official goodbye event, which I attended. After working with these folks — clients and staff — for the past six months, trying to get Fraser Health to change its mind and save the Chimo program, I consider them to be friends. People from all over B.C. came to say goodbye — therapists, nurses, volunteers, clients and their caregivers — all participants from sometime between 1984 and 2010. Lots of tears and lots of laughter as tales were told out of school.

It's hard to figure out where the current clients or those on the waiting list will go. There are no comparable programs for people under 60 that I know of. It's hard to know how much this move will cost the health system in new dollars — dollars that had been saved by Chimo clients who no longer needed hospital care once they had discovered Chimo, a safe place where purpose, friendship, independence and meaning completely changed their lives.

Over the past six months Chimo supporters organized several rallies and press events to raise awareness about Chimo and its value. Their last hope, a big rally at Fraser Health's head office in Surrey, was very successful, even with the difficulty of getting many people in wheelchairs to one location. Unfortunately, this rally did not convince Fraser Health to reverse their shortsighted decision.

Sad to say, but that's the end of the road for the Chimo clients, who may, some of them, have lost their most precious reason for getting up in the morning.

I ask, and I ask this House: how do we put a price on independence?

Oral Questions

SCHOOL DISTRICT COSTS AND FUNDING

C. James: Last week the B.C. Liberals released school district budget numbers that have raised alarms across this province. Here's what the Surrey school board chair said: "The public needs to clearly look beyond the spin and ask…hard questions of the provincial government." This from the Kamloops school board chair: "I'm quite suspicious. Victoria doesn't run schools. The school districts of British Columbia run them, and we're where the rubber meets the road, and we need dollars now."

[1420]

My question is to the Minister of Education. School board chairs are speaking out. Parents are speaking out. Teachers are speaking out. There seems to be a voice missing when it comes to standing up for public education, and that's the B.C. Liberal voice.

Could I ask the minister now: what does she expect school boards to cut in this budget?

Hon. M. MacDiarmid: I'd like to be really clear. Our government has made education a priority. That's why school districts will be receiving a record $4.6 billion next year in their operating grants. We said that we would provide the funding necessary for the teachers' salary increase, and we've done that — $54 million. We said we would provide funding for full-day kindergarten, starting for half of our students next fall — another $58 million going to school boards.

Mr. Speaker: The Leader of the Opposition has a supplemental.

C. James: After that response, I couldn't say the school board chair in Kamloops could be more right when he says that Victoria doesn't run schools. It's a good thing that school boards are there to be able to stand up, because they certainly don't hear anyone standing up for education on this side of the House.

I'd like to remind this minister of some of the government's downloaded costs for school board — $900,000 in pension increases, $120,000 in MSP increases. Kamloops district faces a $2.4 million shortfall.

Again, to the minister. The Kamloops school district has already been forced to close schools because of the Liberals' broken promise in education. What more does the minister expect them to do to be able to manage the frozen costs that they're faced with?

Hon. M. MacDiarmid: Our government, as I said, has made education an absolute priority. This year our government has provided a budget with increased spending in three areas: health, education and for our most vulnerable British Columbians. We've been able to do that in spite of revenues that are much lower than they have been in the past — a $1.7 billion deficit for the province.

But in spite of that, we have provided the funding for full-day kindergarten, we've provided funding for teachers' salaries, and we provided the annual facilities grant. We're investing in education like we never have before.

[ Page 3465 ]

With respect to Kamloops, they're like many of the districts in this province that have had substantial declining enrolment. Next year they will have 17 percent fewer students than they did in 2000, and yet, despite 200 fewer students next year, they will be receiving increased funding. Their per-pupil grant will be 31 percent higher than it was in 2001.

Mr. Speaker: The Leader of the Opposition has a further supplemental.

C. James: I would like to remind the minister of the facts. The facts are that schools are closing. The facts are that classes are going to be larger. The facts are that programs are being cut across this province. The facts are that parents are having to fundraise for basics in our schools. The Minister of Education's news release boasted of record-high funding. Well, the fact is that communities are facing record-high costs because of this government — communities like Kamloops, Vernon, Okanagan, Boundary, Comox Valley, Saanich and the Gulf Islands.

My question is again to the minister. When will she stop playing games with numbers? When will she admit that this government has downloaded costs onto school boards and that parents and students are not getting the quality public education that they deserve in this province?

Hon. M. MacDiarmid: It does concern me when I hear the members opposite talk about the quality of education in this province, because we all know…. It's been acknowledged by the members opposite that we have excellent, high-quality education provided by high-quality educators in this province.

[1425]

Like many other jurisdictions in North America, we are experiencing enrolment decline in this province. It's projected that by next year we'll be down 60,000 students from the levels they were in 2000-2001. The only reason that enrolment is actually up this year is because we are implementing full-day kindergarten for half the students in this province.

When it comes to closing schools, this is a very difficult decision that is made in school districts at the school district level after consultation. But I'd like to remind the members opposite that we've been able to come to some agreement about school closures in the past, and I'd like to quote the Leader of the Opposition.

Mr. Speaker: Thank you, Minister.

R. Austin: The issue is this. The government has forced millions and millions of dollars of unfunded costs onto our school districts, and it's pushing school districts like Kamloops into a corner.

Here's what the vice-chair of the school district has to say: "By claiming education funding is on the rise while downloading costs on school districts, the province is playing a dirty game with the public."

Across B.C., parents and professionals are expressing deep concerns. They've been forced to consider alarming cuts. Where does the minister suggest communities like Kamloops should make these cuts?

Hon. M. MacDiarmid: I really would like to take the opportunity to share with the House where we agree on school closures, and that's by quoting the Leader of the Opposition…

Interjections.

Mr. Speaker: Members.

Hon. M. MacDiarmid: …who said: "There are some schools that have been closed because of dropping enrolment, and you're always going to see that in the province. There were schools that were closed under the New Democrats because of dropping enrolment."

When you have 60,000 fewer students in a province, from time to time there will be a school closure. But we are continuing to invest not only the $54 million for the teachers' salaries and the $58 million for full-day kindergarten but $110 million for the annual facility grant. We are also going to make sure the HST does not cause a burden for school districts. We're investing in education in this province.

Mr. Speaker: The member has a supplemental.

R. Austin: On the annual facilities grant, let's be clear. It's coming back over two years, so it's actually being cut in half. Let's be clear about that.

Since last week when the numbers were released, the minister has had several opportunities to respond, to show that she gets it. She goes on and on about funding increases but says nothing about the record costs that are being downloaded.

Let's look at some of the unfunded costs, for example, in Surrey: $2 million for portables, half a million dollars in MSP increases, $3.6 million for pensions, $1 million in carbon offsets, $600,000 for student tracking. These costs and others have left the school district with a $12 million shortfall — this in a school district with an increasing population.

Again, to the minister. The school districts have already cut to the bone, and our kids have paid the price. What more does she expect them to sacrifice to make up for the government's broken promise to protect education?

Hon. M. MacDiarmid: It's true. Surrey is one of the few districts — in fact, one of eight districts in the province

[ Page 3466 ]

— that's going to have increasing enrolment. Fully 52 of the 60 districts in this province between grade 1 and grade 12 will again have declining enrolment — a reality of the demographics in this province that is not anyone's fault; it is simply the reality.

In Surrey their enrolment next year is expected to be 15 percent higher than it was ten years ago. It is a growing district, and they will be receiving an additional $14 million of funding. Their funding per pupil will be 36 percent higher than it was ten years ago. In addition to that, in Surrey we've invested over $200 million in capital projects and seismic upgrades.

FUNDING FOR

SURREY SCHOOL DISTRICT

H. Bains: Surrey school board has to spend $2 million on portables because of the download cost by this minister and this government. There will be 235 portables as a result of neglect by this government.

My question to the minister is this. It's a growing community. It has a growing enrolment. Why are you downloading, and where are they supposed to cut in order to preserve that education?

[1430]

Hon. M. MacDiarmid: My colleague reminds me that back when the opposition was governing, the number of portables in Surrey would have made up the tenth-largest school district.

Interjections.

Mr. Speaker: Members.

Continue, Minister.

Hon. M. MacDiarmid: As I mentioned, there's over $202 million of investment in new school seismic upgrades and additions in Surrey. Those include, for example, Cambridge Elementary, which was an $8 million investment for a 400-student-capacity school. We're investing, and we're working to expand classrooms in Surrey, one of the fastest-growing districts in British Columbia.

FUNDING FOR VERNON AND

CENTRAL OKANAGAN SCHOOL DISTRICTS

N. Macdonald: Okanagan Similkameen, Okanagan Skaha, North Okanagan, Shuswap, Vernon — these districts have costs that continue to rise significantly, yet their budgets have been frozen. Everyone knows that means cuts to services in the classroom. These are expenditures that are predictable. The minister knows this.

Medical premiums, pension costs, and costs like carbon offsets, increased hydro costs — all of these are government-downloaded costs onto districts. What Bill Turanski, chair of the Vernon school district, says is that parents have to get ready for substantial reductions for students.

My question to the Minister of Education is this. What programs or services to students does she suggest Vernon school district cut?

Hon. M. MacDiarmid: Vernon is one of those districts where enrolment is declining. This year they're expected to have 14.5 percent fewer students than they did ten years ago. They are going to have the same funding that they did last year, in spite of the fact they have over a 2 percent decline in enrolment.

That is one of the things we have done in the Ministry of Education. Where student enrolment is declining, we provide funding protection for these districts so that they can plan. It is difficult, and we acknowledge that it is difficult when enrolment is declining.

This district this year will have per-pupil funding that is actually $2,300 higher than it was in 2000, and that is almost a 40 percent increase in funding. We are providing increased funding in education, because as I have said, it is a priority for this government. But I would ask the members opposite: if they believe that this area should receive more funding, what would they do? Which taxes would they raise? Would they increase school property taxes? How high a deficit should we have in this province? These are important questions.

Mr. Speaker: The member has a supplemental.

N. Macdonald: The minister asks an interesting question. There are three Ministers of Sport. There are two Ministers of Health. There are two Ministers of Forests. This is the most bloated cabinet in the history of British Columbia. If there are cuts to be made, administrative cuts that the Education Minister talks about, I suggest you start right there, Minister — right there.

But it's not just about declining enrolment. The Central Okanagan district is a growing district. There are 300 new students that will be entering the classroom next year, yet it is $4.5 million short of what is needed to maintain services. This is the third year in a row that there are going to be cuts to Kelowna schools.

Now the district is talking about being forced to eliminate classes like advanced placement, calculus 12 and a whole range of other programs, all significant steps backward for our public schools in Kelowna. The question I have, again to the Minister of Education: why are children being denied important opportunities because of this government's fiscal incompetence?

[1435]

Hon. M. MacDiarmid: It is difficult to receive instruction from the members opposite on fiscal incompetence

[ Page 3467 ]

— the group that took British Columbia from have to have-not status during their tenure.

Interjections.

Mr. Speaker: Continue, Minister.

Hon. M. MacDiarmid: The Central Okanagan district has had a slight enrolment decline — 3.3 percent lower next year than it was ten years ago. They will be receiving additional funding next year of $3 million, and I'd like to point out that their per-pupil funding has actually gone up 33 percent in the last ten years. Not only that, but because of unique geographic school features, this school district receives extra funding to acknowledge that they have climate issues, sparseness and some very small communities.

We're investing in this school district, and we're investing right across the province with new funds and new programs, the beginning of full-day kindergarten. This is a very positive time and a very positive budget for British Columbia's students.

FUNDING FOR COMMUNITY SOCIAL

SERVICES WORKER PENSION PLANS

S. Simpson: In 2006 the B.C. Liberals negotiated the enrolment of unionized community social service workers into the municipal pension plan. This is to take effect on March 31 of this year. The government assured the cash-strapped community service agencies that they would cover the employers' costs to fund this pension commitment.

Those assurances are now unravelling, and the government is reneging and telling these organizations they will largely be on their own to find the money elsewhere. This could cost these organizations as much as 7 percent of their salary budgets. Will the Minister of Housing and Social Development commit today to keep his government's promise and fund the employers' share of these pension plans?

Hon. C. Hansen: Government has been working with this sector to look at the cost implications of this transition. As the member may know, it is a subject of collective agreement. There is a tentative settlement in that particular bargaining unit, which is subject to ratification. We anticipate that we will continue to work with the sector and work with the relevant ministries to ensure that we live up to the obligations that government has made.

Mr. Speaker: Member has a supplemental.

S. Simpson: What we know is that this commitment comes due on March 31. What we know is that after the offset of existing RRSP money, there's a $12 million unfunded commitment this year and a $20 million unfunded commitment next year for over 200 organizations in this province — organizations that have had their grants cut, their contracts cut — and they now face this.

This government made a commitment in 2006. This minister's predecessor made the commitment in order to ensure labour peace during the Olympics. They're now breaking this commitment like they broke other commitments, like they broke the commitment around the HST. Will the minister stand up today and tell these organizations they won't have to face this download from the B.C. Liberals?

Hon. C. Hansen: I'm not going to engage in a collective bargaining process on the floor of the Legislature, but I can assure the House that this government will live up to those commitments.

[1440]

B.C. HYDRO ENERGY PURCHASE AGREEMENTS

WITH FINAVERA RENEWABLES

J. Horgan: Last week Finavera Renewables was awarded four contracts in B.C. Hydro's clean energy call. Now, this is a company that one market analyst said two years ago was characterized by being "undercapitalized, with little experience and no turbine agreements." That's the end of the quote.

Just last January the stock was trading at about three cents, and they had a debt of $41 million. Fortunately, a track record in renewable energy is not a prerequisite, apparently, and these executives at Finavera had expertise at moving public money into private hands when they assisted Accenture in privatizing one-third of B.C. Hydro, moving $1.5 billion from the public realm into private hands.

So my question is a simple one to the Minister of Energy. How is it that after two years the best you could do with respect to wind turbines is to retain a company that has no experience and that was selling for about three cents a share?

Hon. B. Lekstrom: I'm surprised at the question. There is a rigorous process that applicants go through to receive EPAs through B.C. Hydro. We don't hand-pick winners and losers in the sense of who can actually do their business in a way that's acceptable within the public body.

But let me tell you, Mr. Speaker, what's even more surprising from the opposition. Now they're opposed to wind energy. They seem to be opposed to B.C. Hydro. They seem to be opposed to independent power projects. But the reality is…. What I'll tell you is that each and every applicant that goes into this process goes through a rigorous process. There are evaluations done to ensure that they meet the criteria established for EPAs in this province, and they met them.

Mr. Speaker: Member has a supplemental.

[ Page 3468 ]

J. Horgan: The last wind project that went under, the Dokie wind farm in Chetwynd, in the minister's riding, was bailed out when Plutonic Power was assisted with a revised contract. The terms of those contracts have not been made public. The minister made a commitment to make those costs public so that the people of British Columbia could have some sense of whether or not the ministry and this government are pushing renewable energies at a time when we can't afford to do it, certainly on the wind front.

We've got four wind farms in the minister's riding — no idea what the cost is going to be. We have no idea what the impact is going to be on B.C. Hydro ratepayers. All we know at this point is that the company was selling for about three cents a share less than a year ago, and now they've got a windfall.

Will the minister agree today to table all of the material numbers and data on these contracts so that the public can have a say? Do it today. Let's not wait for Christmas.

Hon. B. Lekstrom: I would think the member knows this, but he's doing this, probably, for show. The reality is that the EPAs, actually, that are entered into, Member, have to be put before the B.C. Utilities Commission, at which time the range of prices will be shared with the public. So at this time for you to ask the question….

I know, coming from the previous administration, when the NDP actually did the same thing with IPPs — let's be very clear about that — that you know how the process works. It's premature. B.C. Hydro will file these applications with the British Columbia Utilities Commission, at which time the full range of prices for these EPAs will be made public.

B. Ralston: Stock analysts knowledgable about the industry question the strength and credentials of Finavera, noting that "making a serious error in accurate project bidding is typically more of a problem for inexperienced developers" — developers like Finavera. Does the Minister of Energy have a backup bailout plan at a secret price ready to go, as he did with the Dokie wind project, or is he content just to gamble public money?

Hon. B. Lekstrom: It is not the minister that sets the rates for power, as it was done under the B.C. New Democrats during the 1990s. In fact, the B.C. Utilities Commission will look at these EPAs. They will make a decision whether it is in the public interest or not.

Interjections.

Mr. Speaker: Members.

Minister, just take your seat for a second.

Continue, Minister.

[1445]

Hon. B. Lekstrom: What I do find interesting is now…. I guess the policy being developed by the New Democrats is that unless you have high share prices, you can't bid in. We don't operate that way. We're actually going to take the best of the best.

These energy purchase agreements are negotiated. B.C. Hydro then submits those to the British Columbia Utilities Commission for their involvement, to determine whether it's in the public interest. But if what the member is implying is that I, as the MLA for Peace River South, had anything to do with setting the prices for Dokie, step outside and make that in the hallways, Member, because you're dead wrong.

Interjections.

Mr. Speaker: Members.

The member has a supplemental.

B. Ralston: The minister has given heart to those who trade pink-sheet stocks and over-the-counter stocks everywhere. I'm sure Mr. Baines will have a heyday when he begins analysis of some of these deals.

Knowledgable analysts didn't expect Finavera to be awarded an energy purchase agreement, and no wonder — a debt-ridden company with a $41 million cumulative deficit and a stock price of three cents. What assurance can the minister provide that the public, through B.C. Hydro, is paying huge dollars for real value and not just for the insider political connections of a company that stock market analysts call inexperienced developers?

Hon. B. Lekstrom: These processes that take place on an energy purchase agreement are evaluated fully by B.C. Hydro, which is a valuable Crown corporation, one I believe that most British Columbians, if not every single one, is very proud to call their own.

Most importantly is that once those EPAs are negotiated, those energy purchase agreements are put before the British Columbia Utilities Commission to be evaluated whether they're in the public interest or not. That body makes the determination whether to accept or reject that energy purchase agreement, and I have faith that they do a good job on behalf of British Columbians. We will not be setting the rates, as the NDP did, at the cabinet table in order to gain votes in British Columbia.

CHILD IN THE HOME OF A RELATIVE

PROGRAM AND EXTENDED FAMILY PROGRAM

N. Simons: My question is to the Minister of Children and Families. Earlier this month she announced the end of a program called Child in the Home of a Relative, which serves approximately 4,500 children in this

[ Page 3469 ]

province. She said the replacement in the Ministry of Children and Families would be a new program called family preservation or enhanced family program — extended, something like that.

The facts remain. There's a transfer of 4,500 children to a new ministry without any additional resources for that ministry — a ministry that's already understaffed, that's experiencing budget cuts on a regular basis and a ministry that Justice Hughes pointed out so eloquently, saying it "mustn't go through unmanageable change without the adequate resources."

How can that minister justify the end of a program serving 4,500 children — and a new one — and say that it's not going to have any impact on the workload of child protection social workers?

Hon. M. Polak: It's a bit difficult to know how to begin when the member is wrong on so many points. First and foremost, the program is called the extended family program. Secondly, the Child in the Home of a Relative program has not been cancelled; it has been capped. All 4,500 people who are involved in the Child in the Home of a Relative program will see absolutely no change to the support that they are receiving. And finally, our ministry this year will receive a budget increase of $9.5 million.

[1450]

The extended family program is just one more opportunity for social workers to have a tool for out-of-care options, because we know that the best place for children is in homes with families.

[End of question period.]

Petitions

K. Conroy: I have a petition with over 6,500 signatures from people in the West Kootenay concerned about the reduction of operating time by 25 percent at Kootenay-Boundary Regional Hospital. They're asking the Minister of Health to rescind the cuts to health care in the West Kootenays.

Introductions by Members

Hon. B. Lekstrom: I rise to make an introduction. Joining us in the gallery are Lawrence and Joanne Cook, as well as Belinda MacInnis-Baker.

Lawrence and Joanne are visiting us from New Brunswick. They are visiting family in the Comox and Victoria area. Lawrence works for New Brunswick Power, which is similar to our version of B.C. Hydro power. Belinda is their host in Victoria and is a nurse at Victoria General Hospital. Will the assembly please make them welcome.

Orders of the Day

Hon. M. de Jong: In Committee A, I call Committee of Supply. For the information of members, we'll be discussing the estimates of the Ministry of Citizens' Services and, in this chamber, second reading on Bill 3, Supply Act (N o . 1), 2010.

Second Reading of Bills

Bill 3 — Supply act (N o . 1), 2010

Hon. C. Hansen: I move that Bill 3 be read a second time now.

This bill is required to provide for the continued delivery of government services to the public. The first

section of the bill provides supply for the first ten weeks of the 2010-2011 fiscal year, based on the voted expenses as presented in the 2010-2011 estimates. Ten weeks takes us to the scheduled end of the current legislative session, allowing sufficient time for debate of the estimates.

The second

section provides for 50 percent of the voted financing transaction requirements set out in schedules C and D of the 2010-11 estimates. These disbursements are not evenly distributed throughout the year. The additional appropriation is required to accommodate project timing.

The third

section provides for revenue collected for and transferred to other entities which appear in

schedule E of the estimates. As there is no impact on the surplus, borrowing or debt resulting from

schedule E financing transaction, 100 percent of the year's requirements is being sought in this supply bill.

[L. Reid in the chair.]

B. Ralston: Just to respond briefly, this bill is customary at this point in the estimates process, being necessary to fund the ongoing operation of government. The opposition, by supporting this bill, is simply supporting the ongoing operation of government and not necessarily taking any position on the budget bill itself, as we've clearly indicated in earlier debate and on the vote which took place some ten days ago. We voted against the budget.

[Mr. Speaker in the chair.]

So this is simply a normal part of the parliamentary process. I want to assure anyone who might be listening with fascination to this debate here. The opposition supports Supply Act (No 1).

Mr. Speaker: Seeing no further speakers, Minister of Finance closes debate.

[ Page 3470 ]

Hon. C. Hansen: I'll just simply move second reading of Bill 3, Supply Act (No. 1), 2010.

Motion approved.

Hon. C. Hansen: I move that Bill 3 be referred to a Committee of the Whole House for consideration at the next sitting of the House after today.

Bill 3, Supply Act (No. 1), 2010, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.

Hon. I. Chong: I call Bill 2, Budget Measures Implementation Act, 2010, for second reading.

Bill 2 — BUDGET MEASURES

IMPLEMENTATION ACT, 2010

Hon. C. Hansen: I move that Bill 2, Budget Measures Implementation Act, 2010, be read a second time now.

Bill 2 is divided into two parts.

Part 1 enables several non-tax initiatives in the budget and in the fiscal planning process, and

part 2 implements the tax measures that are contained in this year's budget.

[1455]

part 1 the Members' Remuneration and Pensions Act is amended to freeze the annual compensation for Members of the Legislative Assembly for a period of two years. In these times of financial restraint government's negotiating framework for renewing labour contracts is set at a net zero wage mandate. This amendment reinforces government's commitment that the net zero mandate applies to everyone in government, even members of this House.

The B.C. Railway Act is amended to transfer government shares in B.C. Rail to the B.C. Transportation Financing Authority and to enable direct distributions to the CRF. B.C. Rail is being made a subsidiary of the B.C. Transportation Financing Authority in order to achieve administrative efficiencies and better provide coordination of resources in support of the Pacific gateway strategy.

B.C. Rail will continue as a legal entity with its existing legislative authority, including ownership of all B.C. Rail's right-of-way, railbeds, tracks and land, and the move does not alter the province's revitalization agreement with CN Rail or other existing agreements or contracts.

Bill 2 amends the Homeowner Protection Act in order to, first of all, dissolve the Homeowner Protection Office as a Crown agency, effective April 1, 2010; secondly, transfer the administration of the reconstruction loan portfolio to the Ministry of Finance; and thirdly, transfer the administration of the remaining functions of the act, including residential builder licensing and home warranty system oversight, to the B.C. Housing Management Commission.

In July of 2009 the province announced that it would no longer be accepting applications for new loans under the reconstruction program. However, ongoing management of the active reconstruction loan portfolio remains to be done. Responsibility for the portfolio will be integrated with the existing loan administration responsibilities of the Ministry of Finance. The reconstruction fee paid by builders on new construction of multi-unit residential buildings will continue until all financial obligations of the reconstruction loan portfolio are retired.

The consumer protection mandate of the Homeowner Protection Act continues as before, but with program administration assumed by B.C. Housing. B.C. Housing will retain the Homeowner Protection Office brand, which is expected to result in a seamless transition for stakeholders. These changes are expected to improve service delivery, reduce corporate overhead and result in administrative efficiencies.

[L. Reid in the chair.]

The Budget Transparency and Accountability Act is being amended to provide Treasury Board with the authority to determine the accounting and reporting framework for all of government. The amendments will enable Treasury Board to ensure that the province's financial information is recorded and reported in a consistent, transparent and accountable manner. The accounting standards and guidelines that make up generally accepted accounting principles for senior governments — or public sector GAAP, as we refer to it — are set by the Canadian public sector accounting standards board.

Up until now public sector GAAP has reflected the legislative and policy framework of government. However, public sector GAAP is scheduled to undergo significant changes in 2011 that may result in a lack of consistency and clarity in government financial reporting.

Some of the changes, including a direction that commercial Crown corporations are to follow international private sector standards, are inconsistent with how government organizations are managed and regulated. Government needs the flexibility to ensure that the accounting standards and guidelines it uses for financial reporting reflect government's legislative and policy framework.

The amendments provide Treasury Board with the authority to adopt by regulation an alternative standard or guideline to what is proposed under public sector GAAP. The alternative standards or guidelines must come from other areas of Canadian GAAP or from GAAP as determined by an accredited standard-setting organization in another jurisdiction.

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To ensure transparency and understanding, the fiscal impact of any alternate standard adopted by Treasury Board must be made public the same as for any accounting policy change. Government remains committed to reporting its finances according to generally accepted accounting principles.

These amendments will ensure that the GAAP we use makes sense within the context of government's legislative and policy framework. Treasury Board is also provided with the authority to issue directives on the accounting policies and practices of government organizations.

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Within GAAP, individual policies often include options on how the policies are to be applied. These directives will ensure consistency among individual government organizations when applying common accounting policies and frameworks.

A new

section in the Financial Administration Act provides authority for the comptroller general to ensure that all government organizations follow the accounting policies and practices adopted by Treasury Board. This includes the authority to examine and report back to Treasury Board on all financial and accounting matters relating to government organizations.

The amendment also ensures that any requirements issued by the comptroller general will comply with the accounting standards and guidelines set by Treasury Board.

The University Act and the College and Institute Act contain solvency provisions that state expenditures must not exceed grants received plus other revenues. These provisions ensure that post-secondary institutions budget and operate within their means.

However, under recent changes to GAAP, other revenues can include unrealized gains. These are paper gains in market investments that can disappear very quickly, as we have seen in recent times. Basing spending on paper gains can leave an institute exposed to financial difficulties should those gains disappear in a market downturn.

Similarly, the term "expenditures" is deemed to only include cash payments for operating costs. It would be more prudent to include all expenses in the calculation, including liabilities that will have to be paid in the future. Therefore, the solvency provisions in these acts are being strengthened by providing

definitions of revenue and expenditure.

These

definitions do not alter how post-secondary institutions record and report their financial information. They're part of an internal fiscal management solvency test that will ensure that post-secondary institutions operate in a fiscally responsible manner.

Bill 2 amends the Insurance Corporation Act in order to modernize its provisions and reinforce the segregation of ICBC operations into two lines of business, basic and optional. The amendments adopt the federal guidelines on capitalization for insurance companies and apply them to ICBC's optional insurance business.

The provision that the corporation can be directed to make payments to the CRF is maintained. This is not new. However, the amendments clarify that any payment made to the consolidated revenue fund can only come from optional capital and that the payment cannot cause ICBC's capital to fall below the minimum amount established under the federal guidelines.

As well, the amendments enable the adoption of the federal guidelines to any order issued under the act, and they give Treasury Board the authority to reduce the amount that otherwise would be payable under a capital payment order.

ICBC's basic insurance business is not impacted by this legislation. Basic insurance continues to be regulated by the B.C. Utilities Commission. The basic insurance capital will remain in ICBC to keep rates low and stable.

For optional insurance, the amendments ensure that ICBC operates in a manner similar to private insurance companies. The competitive marketplace will ensure that prices remain fair and that ICBC's optional insurance customers receive value for their money.

Part 1 of Bill 2 also has a few minor housekeeping measures. The Financial Administration Act is amended to enable appropriate accounting for recoveries to a vote. The Financial Information Act is amended to remove an out-of-date reference to the Vancouver Convention Centre Expansion Project Ltd., and the Budget Transparency and Accountability Act is amended to set the minimum number of members of the Economic Forecast Council at ten.

part 2 of Bill 2, it amends 12 tax statutes to implement some of the tax measures announced in Budget 2010. These measures provide additional support for homeowners and families. They ensure that our agricultural, industrial, film and mining sectors remain competitive. They improve tobacco tax administration and enforcement, and they make a number of technical and administrative improvements to various statutes.

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As announced in the throne speech, the Land Tax Deferment Act is amended to allow families with children to defer their property taxes. Effective for the current property tax year, this new ongoing program could benefit up to 400,000 families throughout the province. It builds on the longstanding deferment program for those aged 55 and older and the temporary program for those experiencing financial hardship.

Municipalities will be fully compensated, so this program will not affect local government revenues or services. It will, however, provide a very significant benefit to eligible families who use the program to help manage their budgets while raising and caring for their families.

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As part of the government's commitment to return carbon tax to taxpayers through tax cuts, amendments to the Home Owner Grant Act provide homeowners outside of the greater Vancouver, Fraser Valley and capital region districts with a new annual benefit of up to $200 to reduce their property taxes.

This benefit is effective for the 2011 property tax year and will be delivered together with the existing homeowner grant. It will provide most homeowners with a combined benefit up to $770 per year and seniors with a combined benefit of up to $1,045 per year. This benefit specifically helps those in communities impacted by the economic downturn.

Also, as part of government's commitment to return carbon tax revenue to taxpayers, the School Act is amended, effective for the 2011 property tax year, to provide a new 50 percent school tax credit for land classified as farm and to increase the school tax credit for industrial properties to 60 percent from the previous level of 50 percent. These changes will further enhance the competitiveness of our agricultural and industrial sectors.

The mining sector will benefit from an amendment to the Income Tax Act to extend the B.C. mining flow-through share tax credit to the end of 2013. This three-year extension will provide greater certainty and stability for the mining industry and will allow them to move forward.

The Income Tax Act is also amended to enhance provincial film tax credits. These enhancements, when combined with a new tax credit for interactive digital media which will be introduced later this session, support the continued growth and development of these two important and converging sectors.

The changes to the tax credit include an increase in the production services tax credit to 33 percent from 25 percent, an increase in the digital animation or visual effects tax credit bonus to 17.5 percent from 15 percent and an increase in the cap on qualified B.C. labour expenditures to 60 percent from 48 percent of production costs to match the federal cap. As previously announced, these changes are effective for productions with principal photography that began after February 28, 2010.

The Corporation Capital Tax Act is amended to repeal the financial institutions minimum tax. Upon further analysis, it has become apparent that a provincial minimum tax is not necessary because the federal minimum tax which applies to banks provides a form of provincial minimum corporate tax for banks.

Moreover, as a condition for receiving federal compensation for eliminating the capital tax, the provincial financial institutions minimum tax was designed to ensure that no tax is payable under normal operating conditions. Therefore, the removal of the tax will have no effect on provincial revenues.

Bill 2 also amends the Tobacco Tax Act to clarify the calculation of the tax on cigars and increase the minimum tax payable per cigar to $6 from $5. Amendments also provide authority for an annual fee to be imposed on all persons selling tobacco in the province, and payment of the fee, which will be implemented later this year, will be required to sell tobacco in the province. Revenue from the fee will fund an up-to-date registry of all tobacco sellers, which will improve tobacco tax enforcement and administration.

Bill 2 contains a number of technical amendments that provide greater clarity and certainty for vendors, purchasers and government. Amendments to the Carbon Tax Act, effective March 3, 2010, clarify that the definition of "natural gas" includes acid gas and waste gas, even if separated from natural gas, to ensure that the emission from these sources are taxed as intended.

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Effective July 1, 2010, propane is included in the carbon tax collection security scheme that applies to the sale of most other fuels in the province, including gasoline and diesel fuel. The security scheme essentially shifts the responsibility for the collection of tax to the wholesale level from the retail level. This change will significantly reduce compliance costs for the many retailers of propane who are currently required to collect and remit the tax.

Also effective July 1, 2010, and again to reduce compliance costs, the carbon tax rate for kerosene is increased slightly to 5.22 cents per litre from 5.08 cents per litre to equal the jet fuel tax rate. This will eliminate the costly need to label and track sales of kerosene separately from jet fuel.

The Motor Fuel Tax Act and the Carbon Tax Act are amended effective March 3, 2010, to introduce a penalty for persons who sell fuel in the province without first being appointed as a collector. These provisions are similar to penalty provisions in other provincial acts.

Two technical amendments are made to the Property Transfer Tax Act to ensure that taxpayers benefit from the exemption for transfers to correct conveyancing errors and receive an exemption for amendments to strata plans under the Strata Property Act. The former is generally consistent with the longstanding administration, and the latter is required to reinstate an exemption that was lost when the Condominium Act was replaced with the Strata Property Act.

Technical amendments are made to the Assessment Act and the Ports Property Tax Act to ensure that the same land is designated under both statutes consistent with current policy and administration.

Finally, for many years under the Tourist Accommodation (Assessment Relief) Act, the assessed value of business-class, short-term overnight commercial accommodation property has been reduced for property tax purposes under a number of designated acts.

Amendments effective this year clarify that the Police Act, the School Act, the South Coast British Columbia

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Transportation Authority Act and the University Endowment Land Act are included in the definition of "designated acts" consistent with longstanding administrative practice.

Bill 2 ensures government's net zero wage mandate applies to everyone. It streamlines the administration of the B.C. rail act and the Homeowner Protection Office. It ensures government's financial reporting will continue to be consistent and transparent. It ensures that our post-secondary institutes remain solvent and operate in a financially responsible manner, and it modernizes the management of ICBC's capital.

This act provides additional support for eligible homeowners and families. It enhances the competitiveness of certain sectors to ensure that they are prepared to take full advantage of the economic recovery, and it makes technical and administrative changes to simplify compliance and improve the administration of various statutes.

B. Ralston: This bill seeks to implement many of the measures set forth in the budget that the House voted on some ten days ago, but it's notable for several things in the sense that it does not implement the HST, which is the centrepiece of the government's economic recovery plan.

Imposing a new tax on small business and consumers appears to be something that this government is dead set upon putting through, despite their commitment in writing in the last election not to do that at all. There's nothing in here about the HST.

Once again, today when the opportunity came to introduce legislation that would assist the HST by repealing various provincial statutes — changing the Income Tax Act and various other amendments that are necessary — it was not forthcoming. So one waits, I suppose, with anticipation as to just when that bill will be tabled.

There does seem to be some question about the government's timetable in terms of bringing forward that legislation. There was some speculation in the media recently as to what the timing is on the implementation of the proposed changes to phasing out the provincial sales tax, which might be required in order to recoup the $750 million bargained for in the agreement between the federal government and the provincial government on the issue of implementing the tax.

The minister was quoted as saying that in his view the legislation was required, and he was proceeding on the assumption that it had to be introduced and passed by the end of this month — that is, the end of March.

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Last week I took the opportunity to direct a letter to Mr. Doyle, who is the Auditor General, and I asked him if he would advise me on this question. It is understood that in order for revenue to be recognized, it has to be certain.

The agreement says that the originally negotiated $750 million would be paid to the province by the federal government "within seven days of the tabling by the province of legislation to wind down the provincial sales tax of the province." I asked the Auditor General to comment on that.

This is relevant to the budget implementation act, in my submission. I don't hear the Speaker chiding me just yet, and I notice I have the member for West Vancouver–Capilano — who always assumes a role in setting me straight when I stray, in his view, bearing in mind his professorial background…. I appreciate his guidance as well. So I'm well served here by guidance on when I'm in order and when I'm not.

I do want to say that the Auditor General then replied to me on March 12, saying that according to the documents that he had available to him, if the legislation were simply introduced before the end of March, it complied with the agreement and therefore could be recognized as revenue.

The Minister of Finance has negotiated, for reasons best known to himself, the sum of $750 million down to $250 million, but that could be recognized if the legislation were introduced — merely introduced, not passed — by the end of March 31.

The other area that this bill does not address is the changes to the International Financial Activity Act, and I expect that the minister, if he's considering advancing the changes that were announced in the throne speech, would deal with that in a separate bill. But this bill does do a number of things, and I propose briefly to comment on some of them, much in the sequence that the minister himself adopted working through the bill.

It is striking in many ways that there is really a dearth of vision and scope in this particular budget. The rather shrunken nature of Bill 2 really expresses in legislative form the limited demands that the government has placed upon itself to provide a vision of going forward, particularly at this crossroads as we end the Olympics and come out of the recession and look forward to new growth and new prosperity. The government really seems to have run out of all but very small ideas on that score.

I want to record the position of the opposition on the freezing of members' compensation. Indeed, that's something that…. When questioned some time ago, I suggested that if the government wished to bring in that freeze, the opposition would support it. I simply want to record the fact that the opposition will support that provision of this bill — that is, to freeze members' compensation at the current level for two fiscal years.

The legislation proposes to take B.C. Rail in-house. This would appear to be a response that arose out of public expressions of concern about the fact that B.C. Rail in its present form really runs no trains and merely 40 kilometres of track, yet compensates a CEO at $496,000 a year and vice-presidents at $232,000 and $213,000.

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It's not clear, I don't think, to any member of the public what the public purpose of B.C. Rail is at this point — certainly not sufficient to justify that kind of compensation to executives, given the rather narrow range of duties that they're asked to perform.

[1520]

At committee stage, obviously, there'll be an opportunity to ask more probing questions. One of the questions that will be posed is: what is the future of those executives, their compensation? Will there be severance packages, or are they planning to stay on?

This legislation proposes taking it in-house under the responsibility of the Minister of Transportation. Very much as Tourism B.C. ended its existence as an independent agency, perhaps for different reasons, B.C. Rail — what's left of it — will be taken in under the auspices of the Ministry of Transportation. It will be the subject of some questions when the opportunity arises.

The changes that the minister spoke of to the Budget Transparency and Accountability Act and the Financial Administration Act arise from, I think, matters that accountants are very vexed about these days. That's the transfer, certainly, in possibly the commercial Crowns to the international financial reporting standards. That's a step taking place in the private sector around the world in stages. There's clearly an impact, at least on the commercial Crowns such as B.C. Hydro.

There is much debate about the efficacy or the reporting effect of IFRS in the sense that some people…. I think that Al Rosen, who's a noted financial commentator particularly on accounting matters, feels it is a very backward step rather than GAAP, which has come to occupy the financial world, particularly at this time when questions of accounting and public scrutiny of accounting measures…. Certainly, if one looks to some of the aspects of the financial crisis, whether it's financial institutions broadly speaking across the world, there's very much concern about transparency. Nonetheless, I doubt his view is going to prevail, and the commercial world is moving in that direction.

Obviously, there are implications here in British Columbia, and that is something that the comptroller general has advised the Public Accounts Committee on. This provision would appear to give the government some tools to evaluate, based on professional advice, the best accounting standards for different aspects of the government reporting entity and those outside the government reporting entity as well.

Some of this, as I've said, is detail that's beloved particularly only by accountants. Nonetheless, it is critical in making clear just what steps are being taken within government in accounting for many of the financial transactions that take place within a $40-billion-a-year operation. That is something we'll deal with at second reading.

The next area that appears to be amended is the University Act and the College and Institute Act. Again, if I could briefly set out my position. I believe that's certainly within the ambit of second reading debate on these broad matters.

There was much debate about…. Certainly the late Fred Gingell, who was the opposition Finance critic up until his death in 1999, was very much an advocate of bringing universities and colleges and the SUCH sector broadly within the government reporting entity. Certainly, the Auditor General placed reservations on the public accounts of the province because that wasn't done.

As I understand the changes that are proposed at this stage, they will not impact on the fact that the SUCH sector, as it's called — schools, universities, colleges and hospitals — will remain within the government reporting entity, but it will merely tweak some of the accounting standards that apply to those entities in their financial relationship with government. In that sense, again, that will have to be explored at committee stage, but certainly I will reserve my right to ask questions at that stage.

[1525]

The more controversial amendment that's introduced here as part of Bill 2 is an amendment to the Insurance Corporation Act. This has been widely denounced as a step by which the government has extracted cash reserves from the Insurance Corporation and is using them for other government purposes.

The minister has insisted that that is because the optional side of the Insurance Corporation will then be governed by voluntary financial standards that apply to the federal insurance industry, setting the minimum amount for reserves. That's again something that will be explored in committee stage.

Certainly, this step is widely regarded as a disguised cash grab rather than as a reinforcement of the financial probity of the Insurance Corporation of British Columbia.

There are a number of tax measures that are proposed. The amendment to the Home Owner Grant Act, which proposes to provide a new northern and rural benefit of up to $200 to homeowners outside the Lower Mainland and capital regional district, is one where I think there is some legitimate confusion in the public.

The definition of "northern" appears to be very porous. I believe there are citizens in Kamloops who are questioning whether it applies to them or not. Certainly, I'll be asking the minister, and I'm sure he will provide clarity, to what areas of the province geographically that provision will apply to.

There is an estimate of its cost. It's a program that will cost some $20 million in the first year and $83 million in the second year, so it's a substantial program in that sense.

The next area that's proposed as an area of revision is the revision to the land tax or the so-called Land

[ Page 3475 ]

Tax Deferment Act. This is a measure that the minister justifies as enabling families to plan by deferring their property tax.

One would have some sympathy for people in a jam where this may be the only place at which they can remove a stone from their financial shoe, if I could put it that way. But it is really an encouragement, in the eyes of many people, to take on more debt. When you defer your property tax, it doesn't disappear. It remains as a debt that you owe.

Presumably, people might think that they could pay it off when they sell their property at some point in the future, but it does accumulate interest as well. There is a real question among many as to whether it is a good incentive, is a good measure to encourage families to simply take on more debt, rather than encourage financial planning in the broader sense.

There are some issues about take-up of this and what the anticipated take-up is. It's clear that it will operate much in the same way as other programs of tax deferral, particularly that one for seniors, which I think has been around for many years. This certainly expands that program. In the eyes of many it's of questionable value and the wrong kind of policy incentive for families. Some have described it as simply just putting off the day of reckoning on debt.

The School Act amendment provisions proposed. There is a proposal to increase the school tax credit for industrial properties to 60 percent from 50 percent.

[1530]

I suppose the question here, and the minister hasn't really provided much of a justification for it, is that at the same time, the Minister of Community and Rural Development has announced a joint review of major industrial property assessment and taxation. Even as the review is out the gate, the composition of the committee has determined that there has been that announcement.

This is certainly a burning issue among many municipalities. It was discussed at the Union of B.C. Municipalities conference, with presentations from Mr. Gerry Armstrong and from Mr. Finlayson of the B.C. Business Council. One wonders why the minister is moving forward at this time with that increase in the credit, when the commission that he has asked to look at this is merely getting its feet in terms of beginning to prepare to comment on that.

Obviously, this is an issue that, while it may seem very banal, excites — understandably so, because it is a significant source of revenue for many municipalities — much passion, particularly among those who represent citizens at the local level.

If I might, I want to quote from the member for Kamloops–North Thompson in his previous incarnation as the mayor of Kamloops. He said: "Many cities are rapidly growing, and we face infrastructure costs with sewer, water and roads, which of course are used by heavy industry. And yet we are not seeing a lot of other options in terms of where we get our money to support our cities. Where do you see us replacing that income?"

He's now a member of the Legislature, so perhaps we'll hear his views on this topic at some point. But certainly, he expressed very succinctly the question that many other mayors and members of councils across British Columbia express as to how the revenue, which is of course scarce, and the property taxation — whether it's residential or classes 4 and 5, industrial and commercial — are the major source of revenue for most towns and cities in the province. What's the offsetting mechanism?

Again, the other thing here that's notable is this is a continuation of the standard B.C. Liberal policy, which is tax policy concession for no tangible return. The moving from 50 to 60 percent, even as the debate at this committee goes on…. It hasn't even begun to meet yet. It has simply been appointed. There's nothing that's taken place that suggests that in return for giving that concession to industry, the government received anything in return.

It's simply a tax policy change without any analysis as to what the effect might be — other than, I suppose, perhaps, to respond to some of the loudest voices, such as Catalyst, who have been before the courts with their view that they're unwilling to pay their assessed property taxes in several communities in the province. The latest is that the courts have not agreed with them. They were certainly rebuffed in the B.C. Supreme Court by Mr. Justice Voith, I believe, on that issue.

It's a live debate. It's an important debate. It's important to many towns and cities in the province. There's a review underway, yet the minister, in this bill, makes another concession. It seems to be something that doesn't appear to have been terribly well-thought-out, and I look forward to engaging with the minister in committee on this point.

The amendments to the Income Tax Act. The government has proposed some enhanced film tax credits in changes to the Income Tax Act. That's something where the Leader of the Opposition, the member for Vancouver–West End and myself made a proposal in advance of the government's proposal, strongly suggesting that given the very competitive environment, particularly the changes that Ontario had brought about, in order to keep the very skilled film labour here that we have and to enhance a growing sector….

[1535]

It's an area which as a sector has benefited from targeted tax cuts over the years. The difference here is that a labour tax crediting requires that people be employed in order to receive the credit, and a labour tax credit has proved very effective in keeping jobs in British Columbia.

I'm pleased that the minister has seen fit to follow the lead of our critic, the member from West End, in

[ Page 3476 ]

his proposals that he made publicly in advance of the budget and in advance of the minister's announcement on this topic.

I want to talk briefly about the amendments proposed to the corporation capital tax. When this matter was before the House proposing to amend the corporate capital tax on financial institutions, the Minister of Finance, this minister's predecessor, said that there would be a minimum tax which would establish a floor that would mean that financial institutions would have to pay some tax, but she expected that they would be sufficiently prosperous that their taxation would not fall to that minimum level.

It's very clear that that was simply a legislative rhetorical device in order to ease the passage of the changes that were being sought at that time. The corporation capital tax is striking in the sense that whether it was the government of Bill Bennett and the Social Credit who supported that tax….

They certainly had a view of financial institutions that was born of a western perspective, a western Canadian perspective about eastern Canadian financial institutions, and they were of the view that financial institutions in this province were well able to pay that kind of tax. They didn't change it when they were in power. Indeed, they increased it.

This is a tax that both populists of the right and populists of the left have supported over these years, yet it was the B.C. Liberals and the minister at the time who assured us that Asian financial institutions would be moving here in response to these changes. When asked to produce any kind of analytical study, she had a single anecdote not reduced to writing.

Again, it's a tax policy change without any prospective benefit, any analysis, simply devised on the basis of ideology, one presumes, and no analysis, no suggestion of any impact on jobs — a lot of rhetoric about that but no analysis whatsoever. She confirmed that, and it's very clear that this minimum tax was simply a legislative fig leaf to cover the passage of the other aspects of that change, and there was no intention that it would ever come to pass.

The Tobacco Tax Act is proposed to be amended. I suppose one will hear, when the minister begins to defend the harmonized sales tax, what impact the harmonized sales tax will have upon the black market, not only in tobacco products but everywhere throughout the economy.

There's widespread suspicion and prediction that the HST — I think certainly in the home renovation sector and the construction sector — will lead to an increase in off-book black market financial transactions in order to avoid the impact of the HST. Tobacco is probably one example where I think governments have learned that if the tax is set too high, then it becomes very difficult, even through very effective enforcement, to gain any revenue from that area.

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The bill then seeks to implement a number of measures that are part of a budget — a budget that is a failed budget, a budget that has no vision, no optimism for the future of the province, no plan to recover and come out of the recession other than the harmonized sales tax. Rhetorically, the Premier and the Minister of Finance call it the single best thing that British Columbia could do right now.

That view is rejected very widely throughout the province. I dare say that when the government screws up its courage and introduces the bill — which we are waiting for — and begins the debate in this House, the eyes of British Columbia will certainly follow the Legislature in a way that they don't ordinarily do, whether it's out in the towns and cities of British Columbia — where there is growing opposition, a grass-roots opposition to the HST — or here in the Legislature, where we will oppose its passage with every legislative tool that we can muster.

Those are my brief comments on Bill 2 at this time.

Deputy Speaker: Seeing no further speakers, the Minister closes debate.

Hon. C. Hansen: I look forward to the members' questions during the committee stage. With that, I move second reading of Bill 2, the Budget Measures Implementation Act, 2010.

Motion approved.

Hon. C. Hansen: I move that Bill 2 be referred to the Committee of the Whole House for consideration at the next sitting of the House after today.

Bill 2, Budget Measures Implementation Act, 2010, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.

Hon. I. Chong: I call response to the throne.

Maybe we can have a five-minute recess.

Deputy Speaker: This House stands recessed for five minutes.

The House recessed from 3:42 p.m. to 3:51 p.m.

[Mr. Speaker in the chair.]

Throne Speech Debate

(continued)

R. Fleming: I appreciate very much the opportunity to speak to the throne speech this afternoon and will take my place in this debate, which adjourned some time ago. We're getting back to it for the first time since

[ Page 3477 ]

before British Columbia and our Canadian athletes competed in the 2010 games.

[C. Trevena in the chair.]

I can remember the afternoon that the speech was delivered and many of its features, of course. The themes that the government addressed and advanced to British Columbians in that document were around the unique economic period that British Columbia finds itself in.

That's the job loss, the economic contraction, British Columbia's participation in a global economic recession — the most severe in at least 35 years and possibly more — advanced, in particular, by our close trade relationship with the United States, which experienced, among industrialized countries, one of the worst housing bubbles and corrections in the global economy.

So I have the opportunity here this afternoon to match some of the commitments — some of the fine words, even — contained in the throne speech around the unique economic challenges that B.C. finds itself in, around an intention for the province to participate and create, indeed, a transition to a low-carbon economy.

I think the speech even dwelled at some length about making British Columbia society fairer and more affordable for families and for children.

Those words can't be argued with, obviously. But the reconciling of that speech occurred several weeks later, on another Tuesday, when the budget for the province of B.C. was tabled. So we look at how that document contrasts with the speech on economic issues, whether the response was indeed adequate to help families in need, families worried about staying in their homes, paying their mortgages, accruing savings for their children, paying bills for their loved ones who are aging.

We have to look at where the action lies, because that's more important than the words that were spoken by the Lieutenant-Governor in this place in the Speech from the Throne.

So we have to go down the list before we take at face value that this was a throne speech that really meant what it said about children, about seniors, about a green economy and about responding to the sensitivities of families struggling with economic crisis. Let's look at that document. Let's look at the budget that was tabled and compare it to the literal text of the throne speech.

We had a throne speech that referenced seniors on the one hand. We had a budget that implemented residential fee increases for low-income seniors in public facilities across B.C., well outside rent control guidelines — such as that we have them anymore in this province — well above the rate of inflation, targeted at people on fixed incomes, least able to afford it.

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It was imposed from above by this government in its budget. The throne speech didn't mean a thing to those people in that regard.

We had a throne speech that spoke at some length about strengthening supports for children, vulnerable children and all of our children in British Columbia. Then we had a document where the money was allocated for programs for children in our society in early childhood education in our community, for community agencies that get their funding from gaming grants — the entire non-profit sector that takes care of so many gaps in our working lives and for the well-being of our kids — and this budget let them down. It let them down.

Again, the words of the throne speech meant next to nothing in response to economic anxieties that working families felt.

Let's look at the housing crunch that we have in British Columbia. We live in a part of this country — actually, in a part of the world — where we endure some of the highest housing costs imaginable, which take a greater share of our family budgets just to have a roof over our heads — very high cost of housing here in British Columbia. We have moved ahead of almost every U.S. jurisdiction that I know of now because of the high dollar.

In fact, a study that came out just in advance of the throne speech's delivery looked at metropolitan areas around the world and concluded that Vancouver was in fact the most expensive place in the world, if you can believe that, surpassing cities like Paris, Manhattan in New York City, Tokyo and Moscow — places like that that you think of per square foot as the most expensive places in the world, surpassed by Vancouver, British Columbia. What did we see?

And Victoria is not much far behind. My own constituency is not much far behind Metro Vancouver in terms of how difficult it is for young people to get a starter home, to purchase a property for their first time, for renters to find available supply to rent an appropriate and suitable house or accommodation.

It's very difficult because land costs are so high here, as they are in Vancouver, and because the challenges fall to not just new buyers but, of course, to developers, who are extremely challenged to put affordable housing products on the market even though the demand in this market is so strong, the need for it is so strong.

So what did we see in this budget to deal with the housing crisis writ large that we see? It spans a spectrum beginning at homelessness that we have never seen before in this province's history, in the thousands — in a city like Victoria an estimate of 2,000 homeless people living in our streets and getting worse, not better — all the way to families that, in some cases, make combined incomes that are almost in the six figures, who can't even afford a basic starter home or condominium unit, whatever it is that they are looking to buy to get into the

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market. What did this budget do for people spanning that range in the housing spectrum?

The short answer is nothing — nothing. Housing supports were cut. Housing programs whose results have been found wanting were not retooled. The rental assistance program, which has been horrendously undersubscribed since it was first introduced, was not given access to people and retooled so that it would apply to more people's lives. It wasn't done.

In fact, the only single idea and program that was advanced around housing in the throne speech and later confirmed in the budget was this idea of deferring property taxes for people with children under the age of 18. Now, on the surface, maybe it could be argued that this is government showing sensitivity to homeowners who are struggling to pay bills and that this would help in some way to keep them in their homes.

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But let's look at what this really means for homeowners that are struggling to keep up on their payments, who have children in the house. This was basically government giving, in effect, a credit card to people.

The policy specifically said that it would only apply to those with children between zero and 18 years of age. As long as you had children in the house between those ages, you could defer property taxes as much as you like. This can add up to quite an extent.

Let's say a typical tax assessment bill in my municipality is — round it up, round it down — $3,000 or somewhere around there. So $3,000 per child, per year for 18 years — or potentially longer, depending on the ages of the children and the gaps between their ages. You could accumulate tens of thousands of dollars of household debt from this policy exactly at the time when — any financial planner would tell you this — you should be saving for your child's education.

Now, this is odd because government a few years ago — when it had no ideas, once again, in 2006 on the eve of its convention — invented another program. It said: "If you have a child born in British Columbia, we'll give you a thousand dollars so you can start their education savings plan."

Well, that's interesting. It wasn't followed up with any other tax incentives to encourage savings for children, but it was advanced in a completely different spirit than this tax deferment program. How does that square?

The government one year — 2006, not that long ago — says, "Here's your thousand dollars. Build on it. Save for your kid," because heaven knows that under the Liberals tuition fees have doubled, student debt is among the highest in the country, and parents know that. This was their chance to politically address it.

Now all of a sudden it completely turns 180 degrees around and says: "If you've got kids under 18, mortgage their future. Don't save for it. Borrow $60,000 or more from government, and don't worry for two decades about how you'll pay for it." It's unbelievable, but that was the single biggest idea and program contained in this budget.

Now, are you really helping people who are struggling to stay in their homes by offering tax relief on just the property taxes, or are you treating a very small symptom of a much bigger problem and treating it very poorly? I would argue that's exactly what's happened in this budget, in realizing what was promised in the throne speech regarding housing. It's not what we need. It's not what families need.

By being a gimmick, it lets the government off the hook in their own minds from talking about real housing solutions for communities and people who live in them, which are needed now in British Columbia. Those programs, of course, have been cut and abandoned in many cases, and government has failed and taken its attention away from B.C.'s housing crisis exactly at a time when it needed to be refocused.

Now let's look at another area of the throne speech that certainly stood at odds with statements that the government and its candidates made during the last election. Only ten months later, the harmonized sales tax went from something that would never be considered by government, which would be a complete surrender of the province's sales tax autonomy and its ability to construct a sales tax regime to the liking of provincial interests….

It went from being something that was categorically rejected by the voters, something that in an ironclad way was said in a party statement in the middle of the election — "This will not be done" — to a complete and utter reversal and betrayal of those very words a couple of months later.

We had to wait until this throne speech, and we've had to wait until this legislative session. We still haven't seen a bill in this regard, but we will have to wait until this legislative session to see how the HST is implemented.

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The throne speech did offer some weak words into at least why, in the government's view, the HST was introduced. It's interesting how selective those words were, because this government cannot claim to be ignorant of the views that have been expressed to it from a number of leading industries in our economy that have told this government that the HST will negatively affect their sector and will kill jobs.

I look at the tourism industry in particular. I come from a region of the province where tourism is very successful. It's upwards of 12 to 15 percent of our GDP, and our market share of tourism is disproportionate to the size of our region. We've been very successful at marketing south Vancouver Island, at offering a world-class tourism product, and decisions made by tourists are very price-sensitive.

Here we are in British Columbia…. The government often likes to say: "We can't afford not to have

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the HST, because our competitors have one." Well, let's look around us. We've got Alberta to the east of us, and Alberta has no sales tax. Alberta has rejected the HST categorically. They won't participate in it.

We've got Saskatchewan, which has rejected the introduction of the HST. We've got Manitoba, which has rejected introducing the HST. Then of course, we've got U.S. jurisdictions just to the south of us, Washington State and Oregon — no HST, none at all. No value-added tax system amongst our largest trading partners, amongst our closest competitors in the tourism market and in other sectors. They don't have that.

In fact, they have rejected it. They did do studies, and they looked, in the context of this global recession, and said that at a time of low consumer confidence, that would be one of the worst market signals you could send. That would be one of the worst things you could do to employment growth prospects — to introduce a sales tax.

Interjection.

R. Fleming: Studies in other provincial jurisdictions, including the Sask Party in Saskatchewan — I know that member probably would be a card-carrying member were he a few thousand kilometres from here — have rejected it.

This government has spun a political story around why they now support it since the election, since saying that it was something they would never do. The betrayal of that election promise has been codified in the text of the throne speech and at least, for the first time, made a little bit more explicit — even if it is completely disingenuous in the reasons it offered as to why it's being introduced.

The real reason — and British Columbians understand this — is that it was twinned with another deceit that this government perpetrated on British Columbians during that election period, and that is the size of the province's deficit.

The Premier and candidates from that party went out of their way to say, in advance of the election and throughout the campaign, that the size of British Columbia's deficit was $495 million, maximum. Even during the televised debate, it was said again.

Now we know the Premier had a phone call from the deputy minister to tell him that that figure was not accurate, that the first fiscal quarter alone meant it was several hundred millions of dollars inaccurate. Yet it was perpetuated.

Then we came back here in September, and we got a better idea. The deficit was now $2.8 billion.

When the government changed its story on the HST, broke its trust with the public and did a complete reversal on the HST, why did they do that? They did it to pay down a deficit by taking money that was offered from Ottawa at the time, cash up front in advance, transition money — transition money which has been half spent now. That $2.8 billion deficit, by the way, would be north of $3.5 billion had the feds not advanced $750 million. We've got another instalment of it in this budget.

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Now, one thing that was not in the throne speech that I think is interesting…. My constituents are very curious about this. They've been told that there's no money for arts and culture groups. They've been told there's no money for arts and culture groups. They've been told there's less money for sports and community organizations. They've been told that for autistic children we can't afford "Cadillac programs" that the minister likes to denounce.

We've been told that all kinds of things are extras and can't be afforded in the middle of a downturn and an economic recession. We've been told that again in the throne speech. Times will be tough. Decisions have to be made.

Yeah. Well, here's one decision that my constituents just can't seem to understand, given that rationale provided by this government. They can't understand how this government found $100 million to give to the banks in this budget — a hundred million bucks to give to the banks.

You know, legislators in other parts of the world are trying to figure out how, with profitable banks who failed millions of people in lazy and callous disregard for regulations, in recklessness and the rush for profit, now that they're profitable — in some ca