British Columbia Hansard — THURSDAY, MARCH 28, 2002 (37th Parliament, 3rd Session) (20020328pm-Hansard-v5n3)

20020328pm-Hansard-v5n3

British Columbia — Debates (Hansard)

British Columbia Hansard — THURSDAY, MARCH 28, 2002 (37th Parliament, 3rd Session) (20020328pm-Hansard-v5n3)

20020328pm-Hansard-v5n3

British Columbia — Debates (Hansard)

2002 Legislative Session: 3rd Session, 37th 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)

THURSDAY, MARCH 28, 2002

Afternoon Sitting

Volume 5, Number 3

CONTENTS

Routine

Proceedings

Page

Introductions by Members

Introduction and First Reading of Bills

Child, Family and Community Service Amendment Act, 2002 (Bill 17)

Hon. G. Hogg

Statements (Standing Order 25 B )

Hugh A. Curtis

I. Chong

Fetal alcohol syndrome

K. Stewart

Kenney Dam proposal

D. MacKay

Oral Questions

User fees for emergency services

J. MacPhail

Hon. S. Hawkins

Long term care beds

J. Kwan

Hon. K. Whittred

Funding for Surrey school district

D. Hayer

Hon. C. Clark

Funding for women's services

G. Trumper

Hon. L. Stephens

Petitions

Hon. R. Thorpe

Tabling Documents

B.C. Transit and Rapid Transit Project annual reports, 2000

Reports from Committees

A Future for Learners: A Vision for Renewal of Education in British Columbia

Petitions

J. Nuraney

Committee of the Whole House

Supply Act (No. 1), 2002 (Bill 13)

Hon. G. Collins

Report and Third Reading of Bills

Supply Act (No. 1), 2002 (Bill 13)

Committee of Supply

Supplementary Estimates (No. 2)

J. MacPhail

Hon. G. Collins

Introduction and First Reading of Bills

Supply Act, 2001-2002 (Supplementary No. 2) (Bill 14)

Hon. G. Collins

Second Reading of Bills

Supply Act, 2001-2002 (Supplementary No. 2) (Bill 14)

Hon. G. Collins

Committee of the Whole House

Supply Act, 2001-2002 (Supplementary No. 2) (Bill 14)

Report and Third Reading of Bills

Supply Act, 2001-2002 (Supplementary No. 2) (Bill 14)

Committee of Supply

Estimates: Ministry of Advanced Education ( continued )

J. MacPhail

Hon. S. Bond

Royal Assent to Bills

Budget Measures Implementation Act, 2002

(Bill 2)

Supply Act (No. 1), 2002 (Bill 13)

Supply Act, 2001-2002 (Supplementary No. 2) (Bill 14)

Proceedings in the Douglas Fir Room

Committee of Supply

Estimates: Ministry of Attorney General and Ministry Responsible for Treaty Negotiations

(continued)

J. Kwan

Hon. G. Plant

[ Page 2285 ]

THURSDAY, MARCH 28, 2002

The House

met at 2:03 p.m.

Introductions by Members

Hon. G.

Bruce: Mr. Speaker, you know all of us have very busy lives, and our lives

are made considerably easier by the people that work with us. From time to time,

as life goes, people move on. Sometimes they retire, and sometimes they just go

on to other vocations.

Today, sad

to say for me, but I'm sure it's happy for her, I'm losing a lady who gave us an

enormous amount of extra effort and help during the busy time that we had here

this past summer in moving from the ministry into my office. I don't know why

she would leave me for the man that she's going to, but in fact she is, and

she's been with him for many, many years.

Margaret

Ketchen is sitting in the gallery today wearing a beautiful purple orchid

flower. She's an avid gardener, and Laird didn't know this, but he's about to

become an avid gardener as well. Margaret, on behalf of myself and really, in a

sense, for everybody here: thank you for those many extra hours, and enjoy your

time in the garden.

One other

thing I'd like to point out is that it's important for all of us to have

somebody who wears that yellow vest who knows, when it's time for a fire and the

bells go, that you have to get out of the place. We're in a lot of trouble now

in 310, because we don't have that person who knows how to throw on the yellow

vest, wear the yellow cap, burst into the room and say: "You guys gotta get

out of here." But luckily for Laird, he does. All the best.

[1405]

Hon. R.

Coleman: Finally, someone from Fort Langley–Aldergrove has come to

Victoria. I am proud to introduce Jim and Marjorie Shiell, who are chicken

farmers extraordinaire from Fort Langley–Aldergrove. Jim is a former realtor.

Marg is a retired nurse. She could probably tell us all how to fix the health

care system. She certainly told me enough times. They're great volunteers, great

people and great friends. I'd ask the House to please make them welcome.

Hon. G.

Plant: Mr. Speaker, we're joined today by two future members and bright

stars of the legal profession of British Columbia. They are members of a mooting

team from the University of Victoria law school who succeeded in not only

winning a western Canadian mooting cup called the William McIntyre Cup but going

beyond that to win the national Sopinka Cup on behalf of the University of

Victoria.

I heard a

little bit about what they had to do to get there and the work they did in the

moot. The moot was presided over by a justice of the Supreme Court of Canada.

One of the members of the team that I'm going to introduce gave his opening

remarks in perfect French without a single note, which I think was a surprise to

the people who were hearing him, and he said it was a bit of a surprise to him.

The other was, in fact, so recognized for her achievements at this event that

she will be attending the annual meeting of the Association of Trial Lawyers of

America soon.

The two

up-and-coming stars are Almira Esmail and Timothy Livingston. Importantly also,

they are joined today by their coaches: Nils Jensen, who is a well-respected

lawyer in British Columbia and a member of my ministry; and a respected local

barrister named Adrian Brooks. The two of them gave many, many hours to helping

these two younger people succeed.

Let me tell

you: mooting is tough work. To succeed at mooting does truly mean that you have

a bright future in the practice of law. I hope the people on the floor of the

Legislature will welcome those four individuals to the precincts and gallery

today.

MacPhail: I rise today to announce a birthday. One of our interns, Richard

Overgaard, turned 23 today. That, combined with earlier events this month, makes

our average age not that bad. [Laughter.]

Hon. J.

van Dongen: It's my pleasure today to welcome to the Legislature 40 ESL

students with the Abbotsford Community Services. Abbotsford Community Services

provides great service to my community, and I ask the House to make them all

welcome.

Stewart: We're joined today by Sonja Puhringer and her mother, Renate

Puhringer. Sonja is a Rotary exchange student for the Victoria-Harbourside

Rotary Club. Sonja has been visiting our province this year. I ask the House to

please make her and her mother welcome.

Hon. K.

Falcon: In the gallery today I am pleased to welcome Annie Peraddy. Annie is

a grade 6 student from East Kensington Elementary School in Cloverdale, which, I

might add for the benefit of those here today, is the oldest school in Surrey.

It's over 100 years old. Annie is representing the grade 6 students from Ms.

Larch's class. I would ask that the House please make Annie feel welcome today.

Hon. G.

Hogg: We are joined in the House today by a lifelong friend of mine, a

fellow I went to school with, and he still admits to knowing and liking me.

An Hon.

Member: This I've got to see.

[1410]

Hon. G.

Hogg: Okay, so I'm making all this up. He's not really here. I had to feel

better about myself. [Laughter.]

Would the

House please welcome Wayne Proctor, Wilma Proctor, Carmen Proctor and their

friend, Vanessa Henneau.

[ Page 2286 ]

Introduction and

First Reading of Bills

CHILD, FAMILY AND COMMUNITY

SERVICE AMENDMENT ACT, 2002

Hon. G.

Hogg presented a message from His Honour the Administrator: a bill intituled

Child, Family and Community Service Amendment Act, 2002.

Hon. G.

Hogg: I move that Bill 17 be read for a first time now.

Motion

approved.

Hon. G.

Hogg: The Child, Family and Community Service Amendment Act, 2002, is a

package of three major, two minor and several housekeeping amendments which will

make further improvements to British Columbia's child welfare legislation.

In the

February Speech from the Throne, this government promised to give social workers

more options to provide safe care for children within the environment of

extended families. Today we are delivering on that commitment.

The

amendments we are proposing are necessary to better serve children and youth at

risk as well as their families. This will be done by increasing the range of

options available to ministry workers and to family court judges. The current

legislation limits the choices for judges and child protection workers when

confronted with a child at risk of harm in their home. Currently, there are two

options: the child must be either taken into the care of the ministry or left

within their own home. We believe that extended families and communities should

be considered as part of the solutions for these children and youth at risk.

The Child,

Family and Community Service Amendment Act makes these options available when it

is deemed to be in the best interest of the child or youth involved. These

amendments uphold the principles of the act.

A new

section of the act has been developed to allow the director of child protection

to apply for an order to transfer guardianship of a child in the director's

continuing custody to a person other than the child's parents.

Another

amendment will clarify the role and mandate of ministry social workers and

refocus ministry resources on vulnerable children and their caregivers. A lack

of clarity in the current language of the act around the duty to report has

meant that limited social work resources have been strained to investigate and

assess reports in areas where they have no legal jurisdiction to act.

A further

amendment imposes penalties on individuals who might disclose private or

identifying information about children in the care of the ministry. This

amendment makes B.C.'s laws consistent with similar legislation in other

provinces as well as with the principles of confidentiality that's widely

accepted for youth under the Young Offenders Act.

I'm pleased

to be able to introduce these amendments today, and I move that this bill be

placed on the orders of the day for second reading at the next sitting of the

House after today.

Bill 17

introduced, read a first time and ordered to be placed on orders of the day for

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

Statements

(Standing Order 25

b) HUGH A. CURTIS

Chong: Today I have the pleasure of paying tribute to a constituent, a

well-known citizen of Saanich and also a great British Columbian.

This past

weekend the highest formal honour possible from the municipality of Saanich was

bestowed upon this citizen in recognition of his long and outstanding career in

public service and to acknowledge his commitment and dedication to the Saanich

community.

The honour

of Freeman was bestowed upon Hugh Austin Curtis on Saturday, March 23.

Throughout history, municipalities have acknowledged the accomplishments and

contributions of specific citizens with this honour, which is much like being

given the key to the city. Once the citizen is a Freeman, they can always vote

in elections regardless of where they reside, and their name is printed in the

front of the list of electors.

Hugh began

his career as a radio broadcast announcer, and it was not long after that that

his interest in public service took hold. He was elected for the first time to

Saanich council in 1961 and re-elected in '63. He was elected reeve in 1964 and

re-elected for three consecutive terms. It was in Hugh's reign, in 1968, that

the term "reeve" was changed to "mayor."

[1415]

He was the

first chair of the capital regional district, and during his municipal years he

also served as president of the Union of B.C. Municipalities, vice-president for

B.C. of the Canadian Federation of Mayors and Municipalities, and chair of the

Municipal Finance Authority. In 1972, Hugh Curtis was elected a member of the

British Columbia Legislature, where he was subsequently appointed Minister of

Municipal Affairs and Housing, provincial secretary, Minister of Government

Services and Minister of Finance.

Hugh's

legacy of dedicated commitment to public service is much broader than the

government spectrum. He has committed energy to many worthy endeavours,

including the Variety Club of B.C., the David Foster Foundation and, as honorary

director, the B.C. Civil Liberties Association.

The legacy

of Hugh's work and public service is felt not only in Saanich but provincewide.

After a unanimous vote of council, Freeman of the municipality, the highest

honour of the municipality, was bestowed

[ Page 2287 ]

upon Hugh Austin Curtis. Hugh has indicated that while free parking is not

included with the title of Freeman, it will nonetheless be very treasured.

FETAL ALCOHOL SYNDROME

Stewart: Mr. Speaker, I rise today to present some disturbing facts about

the leading known cause of intellectual disability in children, a disability

which is 100 percent preventable but 100 percent incurable. Fetal alcohol

syndrome is the leading known cause of mental disability in children. The damage

is permanent. Most children with FAS will never be financially or socially

self-sufficient. They are also more likely to be in foster care, require special

education, drop out of school early, develop substance use disorders, have

trouble with the law, and experience joblessness and homelessness.

For an

estimated 140 children born with FAS in British Columbia this year, between $140

million and $280 million in additional funds will be required to care for them

over their lifetime. This cost will continue every year that FAS rates remain

high. The human costs — the loss in quality of life, effects on mental health,

joblessness, homelessness and even early death — are immeasurable.

Children do

not grow out of FAS, even with the best family environment and schools. Early

diagnosis and intervention make a difference in reducing the secondary problems

mentioned above. In my riding of Maple Ridge–Pitt Meadows, we are fortunate to

have the Asante Centre. This centre is championed by Dr. Asante, an acknowledged

world leader in the assessment and care of children with FAS. The centre is

progressive in the diagnosis, assessment and family support that is so essential

in a solutions-focused intervention by providing family caregivers and educators

the correct tools to care for and support children and adults with

alcohol-related disabilities.

These

programs give the best opportunity for normalizing the disabilities afflicting

those with fetal alcohol syndrome and are most worthy of our support. In the

words of Dr. Asante on his centre: "We do good work here."

KENNEY DAM PROPOSAL

MacKay: Mr. Speaker, the Kenney Dam, which is located west of Vanderhoof,

was completed in the early 1950s. When the dam was created, several lakes were

created behind the dam, such as Eutsuk Lake, Tetachuk, Ootsa and Whitesail.

Collectively, those lakes are now known as the Nechako Reservoir or the Nechako

watershed. The water from that watershed travels down Tahtsa Narrows and

produces power at Kemano, which then travels on to Alcan and into the B.C. grid.

In 1997 we

saw the formation of the Nechako environmental enhancement fund, which was made

up of three people. The purpose of this committee was to look at options to

enhance downstream benefits to Vanderhoof and Prince George, which suffered with

the lack of water in the Nechako River. In 1998 the Nechako Watershed Council

was formed. It was made up of 18 different organizations with the same purpose

— that is, for the social well-being and environmental benefits to downstream

communities.

I am

pleased to report to the House that the Nechako Watershed Council has developed

a proposal for a cold water release facility at the Kenney Dam site, which will

see cold water taken from deep inside the reservoir and released over a spillway

to be built near the Kenney Dam. The preliminary work for this proposal will be

funded jointly by the province and Alcan over the next three years. With this

implementation we will see less water having to come from the Nechako watershed

to cool the Nechako River during salmon migration — less water than we

presently have going over the spillway today.

[1420]

This

proposal will create economic opportunities while maintaining environmental

standards and ensuring sustainability. The fact that consensus was accomplished

within the Nechako Watershed Council, which now consists of 25 members, is

indeed a worthy accomplishment, and I would like to add my note of gratitude to

all the members of the Nechako Watershed Council for a job well done.

Oral Questions

USER FEES FOR EMERGENCY SERVICES

MacPhail: The Vancouver coastal health authority wants to make patients pay

for emergency care in Richmond. The Minister of Health Planning has said that

she is currently working on signing off on these health authority plans. Will

the Minister of Health Planning authorize this change?

Hon. S.

Hawkins: The member knows that we are committed to being in full compliance

with the Canada Health Act. What she's referring to is working documents.

Nothing's been signed off yet.

Mr.

Speaker: The Leader of the Opposition has a supplementary question.

MacPhail: I fully expected the Minister of Health Planning to skate, as she

always does.

Well, every

day British Columbians learn more and more about cuts to health care in this

province, and every day this minister washes her hands of responsibility. It's a

old document; it's a working document; it's up to the regions.

Again, to

the Minister of Health Planning: will she or won't she authorize charging

patients for emergency care in Richmond, and how much are they going to be

charged?

Hon. S.

Hawkins: Our government is fully committed to being in compliance with the

Canada Health Act,

[ Page 2288 ]

and we expect the health authorities to be that way too. And you know what?

We've given our health authorities a challenge: to go out and plan in the best

way for the needs of their population.

And you

know what? That member over there, when she was Health minister, agreed with

that because she said that her government was moving health care decision-making

out of Victoria and into the hands of community and regional authorities who had

their hands on the pulse of patient priorities. And you know what? We agree with

that, and that's what we are expecting our health authorities to do.

Mr.

Speaker: The Leader of the Opposition has a further supplementary.

MacPhail: Mr. Speaker, the only difference is that our government knew what

we were doing, as opposed to this…

Interjections.

Mr.

Speaker: Order, please.

Interjections.

Mr.

Speaker: Order, please. Order.

Interjections.

Mr.

Speaker: Order, please.

MacPhail: …minister, who gets faced with a leaked document day after day

after day. She has no idea what's going on, and this is another example.

Interjections.

Mr.

Speaker: Order.

MacPhail: It's apparent that this minister has no concept of what's going on

at all with the health authorities. That's the difference. There's chaos out

there in the health system, and she has no idea what's going on, although she

does admit, Mr. Speaker, that she's got to sign off on the plans. It's almost

the end of the fiscal year.

Interjections.

Mr.

Speaker: Order, please.

Would the

member now please put her question.

MacPhail: Thank you, Mr. Speaker.

It's almost

the end of the fiscal year. Hospitals and patients need to know now what

services are going to be available and which ones are going to cost more. Will

the minister stand today and tell us when the health plans will be signed off

and made public, and just when will patients get to know what extra costs they

have to bear under this government?

Hon. S.

Hawkins: For the first time ever health authorities got their budget letters

on time, and for the first time ever they got three-year budgeting envelopes.

They were told what their budget was going to be for three years. What we have

asked them to do….

Interjections.

Mr.

Speaker: Order, please.

Hon. S.

Hawkins: I find it really interesting that she's talking about plans, Mr.

Speaker. For the last ten years there was no planning, and that's why we're in

the mess we're in. We're asking good people on the ground to help us identify

the needs of their community and what the plans are. They're working documents,

and — you know what? — we're working closely with them. She obviously

doesn't believe they're capable of doing that. We have every confidence that

they are capable of doing that.

[1425]

LONG TERM CARE BEDS

J. Kwan:

What we're concerned about is that this government is off-loading its

responsibilities to the local authorities, and when programs are cut they're

saying: "Hey, we didn't do it." In the New Era document the

government promised to create 5,000 intermediate beds, but in communities around

the province that promise is being broken. This week workers at the Penticton

Retirement Centre were told that that facility and its 100 long-term care beds

is going to be closed.

To the

Minister of State for Intermediate, Long Term and Home Care: would she like to

explain to the senior citizens living there, many of whom I'm sure voted for

this government, why she is breaking her promise to them?

Hon. K.

Whittred: Mr. Speaker, I'm very pleased to say that I, in fact, was in

Penticton just last week to open a brand-new campus of care for 135 new units.

Interjections.

Mr.

Speaker: Order, please. Order, please.

Hon. K.

Whittred: This new campus of care is the latest in what the research tells

us seniors want. It consists of 35 assisted-living units, where seniors can live

independently while enjoying support. It consists of four brand-new dementia

cottages, each one housing ten individuals. It offers care to 60 multilevel-care

patients and an adult day centre.

Mr.

Speaker: The member for Vancouver–Mount Pleasant has a supplementary

question.

J. Kwan:

This minister knows that not one new bed was added. She knows that those were

replacement beds.

[ Page 2289 ]

British

Columbians with aging parents are counting on the government….

Interjections.

Mr.

Speaker: Order, please. Order. Order, please, hon. members. The member for

Vancouver–Mount Pleasant has the floor.

J. Kwan:

Thank you, Mr. Speaker.

British

Columbians with aging parents were counting on this government to fulfil its

promise of 5,000 new beds. If mothers and fathers get sick, and they have to

provide care around the clock, they need to know that they will have a safe,

comfortable and caring place to live. Most children simply cannot afford to

provide the care that their parents need at home.

To the

minister once again: it's time to come clean with the seniors and their

children. How many more new long-term beds is this minister planning on putting

in place for British Columbians, and how many beds is this minister closing?

Hon. K.

Whittred: This government is going to deliver 5,000 new beds.

Interjections.

Mr.

Speaker: Order, please. Order, please.

Hon. K.

Whittred: Over the break not only was I honoured to go to Penticton to make

this announcement, I was also in Williams Lake, where I announced a new seniors

facility. I was in Victoria, where I announced a new supportive living

housing….

The

facility in Penticton is the new for the old. What we have done is phase out,

over time, an old facility that is no longer useful. In addition, Mr. Speaker…

Interjections.

Mr.

Speaker: Order.

Hon. K.

Whittred: …this represents a new partnership. It is not a drain on the

public purse. This is a partnership between the interior health authority, B.C.

Housing and a non-profit society. This is how those 5,000 beds are going to be

delivered.

[1430]

FUNDING FOR SURREY SCHOOL DISTRICT

Hayer: I would like to ask a public written question submitted by Mary

Polak, chairperson of the board of school trustees of Surrey school district 36,

to the Minister of Education.

Ministry of Education table entitled 'Comparison of Each School District's

Enrolment and 2002/03 Estimated Operating Grant' indicates Surrey School

District's student population represents 10.2% of the provincial student

population. Under the terms of fairness and equitable distribution, why

would Surrey only receive 9.4% of the total education operating grant when

it represents 10.2% of the provincial student population, when just about

every other school district is within 0.1 percentage point in their funding

allocation and their student population, while Surrey's gap is 0.8%,

representing $16 million, the dramatic shortfall that we are currently

facing?"

Hon. C.

Clark: We introduced a new funding formula this year, and we are moving

towards equity in funding of school districts for the first time in quite a

while in British Columbia. That doesn't mean, though, that it's not still more

expensive to educate a child in a district that's widely dispersed and rural

than it is in a district that's highly compact and urban.

In a

district like Surrey, where the transportation and heating costs may be less, we

recognize that. In a district like Bulkley Valley where schools may be widely

dispersed, where schools may have a low population, where they may have extra

heating costs, we recognize that it's more expensive to educate a child there.

We are

moving towards equity for every child in British Columbia because every child

deserves the same opportunity to learn in our schools.

Mr.

Speaker: The member for Surrey-Tynehead with a supplementary question.

Hayer: The minister has previously committed to directing every possible

dollar to where it is needed the most: providing services to students in the

classroom. Can the Minister of Education confirm that any additional dollars

that become available will be allocated to the public school system on a

per-student basis?

Hon. C.

Clark: I am delighted to be able to announce today that we have available,

at the end of the fiscal year, $44.6 million that we will be making available to

school districts across the province. This is good news for students.

Interjections.

Mr.

Speaker: Order, please.

Hon. C.

Clark: Our government has a commitment. When we save money in our ministry,

we will deliver that money to school districts so that they can deliver that

money for better education for every child in British Columbia.

In Surrey

that means an additional $4,320,523 — money that they will use to ensure that

every child in Surrey gets the best top-notch education that we can provide.

FUNDING FOR WOMEN'S SERVICES

Trumper: My question is to the Minister of State for Women's Equality. I

understand that the minister

[ Page 2290 ]

announced today one-time funding grants for providers of women's services

across British Columbia. Can the Minister of State for Women's Equality tell us

where those dollars are being allocated.

Hon. L.

Stephens: I'm very pleased that the member has asked this question. Our

government very much values the fine work being done by women-serving

organizations across this province.

That's why

I'm extremely pleased to announce today that over $954,000 will be going in

one-time funding grants to women-serving organizations across the province.

Again, through those ministry savings, we were able to make this limited

contribution to these organizations. What we are doing is making sure that our

government recognizes…

Interjections.

Mr.

Speaker: Order, please, hon. members.

Hon. L.

Stephens: …the priority essential services of this government for

women-serving organizations across this province.

Mr.

Speaker: The member for Alberni-Qualicum has a supplementary question.

Trumper: The minister has committed to protect the funding for essential

women's services, including transition homes, second-stage housing and

counselling services. Can the Minister of State for Women's Equality tell us if

today's funding announcement will be directed to these priority services?

[1435]

Hon. L.

Stephens: Yes, in fact I can. There are 145 community organizations that

will be receiving this one-term funding. They include women's centres, family

emergency societies, women-in-need societies, multicultural family support

services, community services societies and a number of others around the

province. All of these organizations will be receiving this one-time funding

because the government is well aware of the extremely critical work…

Interjections.

Mr.

Speaker: Order, please.

Hon. L.

Stephens: …they do in the province to support British Columbia's families.

Interjections.

Mr.

Speaker: Order.

Hon. L.

Stephens: This government does indeed recognize the value that women-serving

organizations bring to this province and the services that they provide…

Interjections.

Mr.

Speaker: Would the Leader of the Opposition please come to order.

Hon. L.

Stephens: …through these organizations to the women and their families in

British Columbia.

[End of question period.]

Petitions

Hon. R.

Thorpe: I have the honour to present a petition from the Summerland Hospital

Action Committee regarding the Summerland Hospital.

Tabling Documents

Hon. J.

Reid: I have the honour to present the annual reports for B.C. Transit and

Rapid Transit Project 2000 for the year ending March 31, 2001.

Reports from Committees

McMahon: Pursuant to the committee's terms of reference, I have the honour

to present the report of the Select Standing Committee on Education for the

third session of the thirty-seventh parliament, entitled A Future for

Learners: A Vision for Renewal of Education in British Columbia . Hon.

Speaker, I move that the report be taken as read and received.

Motion

approved.

McMahon: This report reflects the Education Committee's consultation with

students, parents, educators, administrators and other British Columbians on

measures to improve access, choice, flexibility and quality in public education

and measures to strengthen our network of colleges, institutes and on-line

learning throughout the province. The committee's report concludes that the

economic, social and democratic interest of learners, of local communities and

of the province are best served by a seamless education system that enables all

British Columbians to access a variety of world-class learning opportunities.

To achieve

this vision, the committee agreed that we must refocus attention on learning and

on the needs of learners and communities. The report identifies strategies and

actions in three major areas: mandate, service delivery, and governance and

management. The recommended changes will create a system that is focused,

responsive, accountable and professional.

appreciate this opportunity to move the adoption of the committee's report, and

I would like to thank the members for Delta North, Surrey-Whalley,

Okanagan-Vernon, Burnaby North, Surrey–Green Timbers, Port Coquitlam–Burke

Mountain, Vancouver-Kingsway, Victoria-Hillside and Coquitlam-Maillardville, as

well as the Clerks to the committee, Kate Ryan-Lloyd and Anne Stokes,

consultants to the committee, Bob John-

[ Page 2291 ]

stone and Tarry Grieve, and research staff and Hansard staff.

Mr.

Speaker: The member is now moving adoption of the report, and that requires

leave. Shall leave be granted?

Leave

granted.

J. Kwan:

I seek to leave to table a document.

Mr.

Speaker: Please proceed.

J. Kwan:

I have the honour to table the opposition's report on the future of education in

British Columbia, entitled Excellence and Opportunity for All: Investing in

Education and Investing in People .

Interjections.

Mr.

Speaker: Order. Hon. member, it's out of order. The report is not in order

at this time.

Hon.

members, the motion is leave to adopt the report, and further debate is allowed

on the motion. Is there any further debate?

[1440]

R. Masi:

Over the months that the select standing committee held public hearings, the

members heard many, many education stakeholders present reports of how they felt

government should best deliver education to the learners of this province. The

report represents the voices of a broad range of interests which include

parents, learners, teachers, community activists, post-secondary educators,

union representatives and business interests. It also reflects the serious

deliberations of the select standing committee.

The report

focuses on the development of a seamless education system, a system which will

allow learners to enter and re-enter the system at any age, at any level of

education; a system which provides flexibility, unencumbered by excessive rules,

regulations and contractual restrictions; a system that provides maximum

opportunities for learners by reducing bureaucratic duplications and territorial

duelling.

Mr.

Speaker, this report represents a vision for the future, a vision for the

renewal of education in British Columbia.

Mr.

Speaker: Further debate on the motion to adopt the report?

Motion

approved.

Petitions

Nuraney: Mr. Speaker, I have a petition signed by about 158 people

concerning our health care system.

Mr.

Speaker: The member for Vancouver–Mount Pleasant seeks the floor.

J. Kwan:

I seek leave to table a document.

Mr.

Speaker: Please proceed.

J. Kwan:

I have the honour to table the opposition's report on the future of education in

British Columbia, entitled Excellence and Opportunity For All ….

Mr.

Speaker: Excuse me, hon. member. We must ask leave to present a document.

Would the member please ask leave. The House must give leave.

J. Kwan:

Yes, Mr. Speaker. I did ask leave, and you asked me to go ahead.

Leave

not granted.

Interjections.

Mr.

Speaker: Order, please.

Hon. G.

Collins: Despite what the member opposite thinks, the rules are the same now

as they were a year ago, two years ago and three years ago.

Mr.

Speaker: Thank you.

Hon. G.

Collins: She should have known them then; she should know them now.

Mr.

Speaker, I call, in Committee A, Committee of Supply. For the information of

members, they'll be debating the estimates of the Ministry of Attorney General,

followed by the Ministry of Agriculture, Food and Fisheries.

In this

House, I call committee stage on Bill 13.

Committee of the Whole House

SUPPLY ACT (No. 1), 2002

The

House in Committee of the Whole (Section

B) on Bill 13; T. Christensen in the

chair.

The

committee met at 2:44 p.m.

Sections 1

to 3 inclusive approved.

[1445]

Preamble

approved.

Title

approved.

Hon. G.

Collins: Mr. Chairman, I move the committee rise and report the bill

complete without amendment.

Motion

approved.

The

committee rose at 2:46 p.m.

The House

resumed; Mr. Speaker in the chair.

[ Page 2292 ]

Report and

Third Reading of Bills

Bill 13,

Supply Act (No. 1), 2002, reported complete without amendment, read a third time

and passed.

Supplementary Estimates

Hon. G.

Collins presented a message from His Honour the Administrator: supplementary

estimates (No. 2) for the fiscal year ending March 31, 2002.

Hon. G.

Collins moved that the said message and the estimates accompanying the message

be referred to Committee of Supply.

MacPhail: I'm sorry. I was out for 30 seconds. I don't understand this

referral, Mr. Speaker. Could you explain it to me before I vote on it?

Mr.

Speaker: Yes, one moment, please.

Hon.

members, all estimates are referred to Committee of Supply, and we'll have a

brief five-minute recess for distribution.

MacPhail: Mr. Speaker, this comes as brand-new news to me that we're doing

this today, so I'd appreciate very much that as we distribute…. I'd also ask,

Mr. Speaker, if you could consider the fact that I'm going to need time to

consider the content of the supplementary estimates after its distribution. It's

brand-new news to me.

Hon. G.

Collins: Supplemental estimates and bills in the House are almost always

news to the opposition. In fact, every one is. This procedure is not without

long historic precedence. There's nothing nefarious here. I'm glad to provide

the member opposite with time to look at the supplemental estimate. I'm glad to

have somebody talk to her if she has some questions about it. It's not

complicated. In fact, it's simpler than the one we did two weeks ago. I'm glad

to provide whatever information the member needs, but this is not an unusual

process.

Mr.

Speaker: Thank you, hon. members. The House will recess for ten minutes.

The

question is to refer the bill to Committee of Supply.

Motion

approved.

Mr.

Speaker: We will recess now for ten minutes — till 3 o'clock — for

distribution of the bill.

The House

recessed from 2:49 p.m. to 3:06 p.m.

[Mr. Speaker in the chair.]

Hon. G.

Collins: I call Committee of Supply.

Committee of Supply

The House

in Committee of Supply B; T. Christensen in the chair.

The

committee met at 3:07 p.m.

SUPPLEMENTARY ESTIMATES (No. 2)

On vote

58(S): government restructuring, $95,000,000.

MacPhail: Could the minister please explain the reason for this vote?

Hon. G.

Collins: I'd be pleased to do that. I just did so outside the chamber in

response to the comments of the member opposite, and I'm very glad to do that

here.

As the

member knows, supplemental estimates are required when government anticipates

there will be an expenditure over and above that which has previously been set

out and approved by the Legislature. In this year there was a previous

supplemental estimate about two weeks ago. The member will recall that dealt

with the write-down, virtually in its entirety, of the asset which was Skeena

Cellulose as a result of decisions made by the previous government — some $400

million, I believe.

As well,

included in that was the request for approval from the Legislature for several

hundreds of millions of dollars in order to provide the funding to pay

physicians as a result of the arbitration and legislation that had passed with

regard to physicians' compensation.

Since that

time, we have had a couple of things happen. First of all, there was the

workforce adjustment numbers, which were included in the budgets and the

quarterly reports over this last number of cycles over the last ten months. The

number that government had reported was, I think, about $85 million. That was

determined for this fiscal year based on the government's restructuring plans

for changes that are happening now and in the future.

As the

member will recall, the adjustment plan included voluntary severance. If people

chose to volunteer to leave their positions, there was a package. We announced

that in November. Certainly, there was a briefing at that time provided to the

member, the public and the media on how the workforce adjustment programs were

going to work and the costs associated with them. There was a volunteer

severance provision. There were also early retirement provisions made available

to public servants who would choose to retire early, thereby voluntarily leaving

the public service.

[1510]

We found we

put forward the best estimates. I know that Vince Collins, who is the deputy

responsible for PSERC, had put forward a plan of what that might look like and

how that might phase in over time. I'm pleased to say that we have had a

slightly higher take-

[ Page 2293 ]

up on the voluntary provisions than was originally anticipated, so there will

be a larger proportion of the people leaving who will be doing so in a voluntary

capacity or doing so as a result of the early retirement provisions.

There have

also been opportunities in some cases to start to implement the service plans of

government earlier than had been initially planned, so in fact we're a little

bit ahead of schedule. That has resulted in a higher amount for severance and

restructuring for this year. Any amounts that are additional this year are

amounts that will not end up being funded according to the number that was

forecast in the plan for the next year or the year after.

Essentially,

what has happened here is that people are leaving earlier. As a result, they're

leaving in this fiscal year as opposed to next fiscal year. I was hoping for and

we may still end up in a situation where we could fund these out of

contingencies with the room in the contingencies budget.

However, as

we near the end of the fiscal year, it has become clear to us that as a result

of the windup of Tech B.C. and as a result of the lease arrangement the previous

government entered into with ICBC under the administration of the member

opposite, the cost of the lease to Tech B.C. was well above market rates or at

least a certain amount above market rates. As a result, we will probably need to

incur in this year a write-down of the future costs of that lease as we

extricate ourselves from that building and that lease.

I am still

hopeful we will be able to contain this within the contingencies — both the

Tech B.C. write-down, although we have not been able to put a fixed number on

it, as well as this cost. However, given the slimness of the room that's left

after many of the other things we've been trying to clean up for the last year,

I thought it was prudent to come to the House to seek a supplemental estimate as

opposed to using a special warrant, which was something the previous government

used quite regularly.

Doing this

process of coming for a supplemental estimate allows us to ensure that there

will be appropriate funding there and that government will not run afoul of the

appropriations and will not have to seek a special warrant or use that process,

which we've committed not to doing. It will also ensure that we book the costs

in the appropriate year.

certainly hope, and I hope, that once all the numbers are in for this fiscal

year, this appropriation will not be required, either all or in part. I hope we

don't need it at all, but I think that given the tightness and the

unpredictability of the final amount for the Tech B.C. write-down, it's

appropriate to seek the provisions in advance.

MacPhail: Here we are at ten after three just before a long weekend, and

here's what the public has found out today about this Minister of Finance's

budget. "Oops, we found $44 million in the education budget that we had no

idea was going to occur. We've made lots of mistakes, and there were cuts to

education, so let's get that out the door."

Then we

have a bill where, no matter how much the minister tries to skate and bring up

things he has no responsibility for, we are paying out $95 million for this

reason:

"This

vote provides funding for costs associated with voluntary departure and

early retirement incentive programs, employee termination benefits and

related severance costs, facility closure costs, costs to consolidate and

relocate operations and other costs associated with the government's

approved plan for restructuring."

No matter

how much the minister tries to make up for his inability to budget anything in

the way anybody can predict, here we are today. That's what the vote is about.

Let's discuss it in the context of the vote, the $95 million. Let's start with

the less controversial part, I assume, of the $95 million: the operating costs

that are supplemental. Could the minister identify what that $1 million is for?

[1515]

Hon. G.

Collins: There is $85 million for the workforce adjustment. That's $81

million for voluntary departure. That's estimates to date. There's $4 million

for involuntary departure and related severance costs, estimates to date.

There's $1 million in accommodation restructuring — that's tenant improvement

payouts and lease payouts. There's $9 million for other restructuring, which is

write-offs for capital assets and contract termination penalties incurred for

cancelled projects.

MacPhail: Mr. Chair, maybe I could seek guidance from you. I received this

information moments ago, and the minister's reading out very quickly. Either he

can repeat it, or we can go though it line by line. I asked about the $1 million

in terms of operating costs.

Hon. G.

Collins: I'm glad to move more slowly, if the member would like that.

The $1

million in costs she refers to, as I said, is accommodation restructuring, which

is tenant improvement payouts on vacated properties as well as lease payouts.

MacPhail: And where are those improvements? What is meant by improvement to

a property — improvement to sell, to lease again? And where are those?

Hon. G.

Collins: If I'm not accurate on this, I'm sure my staff will tell me.

understanding is that when you occupy an office space, it is not unusual in the

public or private sector for the tenant to seek improvements — changes to the

layout, carpet, different lighting, moving a wall, paint, curtains, blinds,

those sorts of things. Those are generally known as tenant improvements.

In some

cases the tenant may pay for those themselves. In some cases they may be folded

in as part of the ongoing lease and will be paid out over a period of

[ Page 2294 ]

time as part of the lease. So when someone vacates that property prior to the

end of the lease, there are penalties associated with it. In some cases that

means you have to buy out the lease; there are various contractual arrangements

around that. In some cases it means that you have to pay the remaining portion

for those tenant improvements which you would have paid over the term of that

lease, but now that you're not there and you're getting out of the lease, you

have to pay them up front.

MacPhail: I'm curious as to that, because clearly this didn't come as a

surprise. The restructuring was announced to the world on January 17. I assume

the government knew about the restructuring well before January 17. What

possible reason could there be to incur an unconsidered cost of $1 million about

lease improvements? Maybe the minister could list the properties in which that

occurred. Were they public service properties? Why has this come as a surprise?

Hon. G.

Collins: In fact, it hasn't come as a surprise. It is part of the

government's estimates, having canvassed in a general way what provisions there

are, what leases are in place and where leases will be vacated. It wouldn't come

as a surprise to the member opposite if she'd raised this in the estimates of

the Ministry of Management Services, where it all could have been discussed in

great detail. That didn't happen. That's fine. But there is no surprise here.

The tenant

improvements the member refers to, for example, may have been on a lease that

was entered into three years ago, and there was a term left on the lease. There

would have been a requirement to pay out those tenant improvements over a period

of time. Perhaps the final two years of, let's say, a five-year lease are not

going to be taken up. Then you would have to pay out the lease, which is part of

the $1 million, as well as the improvements there.

There

certainly has been no attempt by government…. It certainly hasn't happened, to

my knowledge — although, given the size of government, one never knows —

that there would have been improvements in a leased property that would have

been approved after government had decided they were going to close that

particular property. Given the size of government and the difficulty for

communication, I'm not going to say that would never happen. I'm just not aware

of it, nor would it be our intent to have that happen in any way, nor would I

think any manager would intend that to happen either.

MacPhail: I don't want to talk in the hypothetical; I want to talk about the

$1 million here. This $1 million is spent for costs associated with government's

approved plan for restructuring, which was announced January 17.

For the

minister to somehow suggest that we could have discussed this under the

estimates of Management Services…. The reason we're here is because these are

costs that weren't contemplated in the estimates for '02-03. The reason we're

here is because they're expenditures for '01-02. Could the minister please name

the properties and the improvements?

[1520]

Hon. G.

Collins: In fact, this debate could have happened in the estimates of the

ministry, because government has made it public since at least November that we

had forecast, I believe, $85 million for restructuring for this fiscal year.

As early as

November the member opposite was aware, as well as everyone else in the public

and the public service, that government was forecasting an additional cost over

and above the budget from July 30 last year for these restructuring costs.

That's been out there for some period of time. There's not a surprise on that.

That's why I don't understand why the member would be surprised. These are not

costs government is surprised today, all of a sudden, that we're going to incur.

We said in

November when we released the restructuring package that these costs would

incur. We estimated them at that time to be about $85 million. As I said

earlier, they're going to be more than that for the reasons I've already stated.

This was in the quarterly reports as well. It's been out there to a great

extent.

I had not

brought this supplemental estimate in last time, two weeks ago, with the other

one, because I was hopeful we would be able to contain it within the

contingencies and other previous appropriations government already had. As a

result of the Tech B.C. potential write-down on the lease, it's not guaranteed

that room will be there or that it will be sufficient and still leave enough

room to allow me as minister to be comfortable. That's why we're doing this. As

I said earlier, I hope we don't end up having to spend this, and we'll do

everything we can not to spend the additional appropriation in whole or in part.

There are

no surprises here. If the member wants to have a detailed breakdown of each site

or place, then I will be pleased to try and get that for her. I can't do it

today obviously. But I'd be glad to try and get that for her, make that

available and provide a briefing for her. I'm sure the deputy minister for PSERC

would be able to provide that in some detail. If there are other officials that

are helpful — BCBC — to try and do that, I'd be pleased to provide that if

that's what the member would like.

MacPhail: I don't think it's any surprise to the Minister of Finance, the

fact that nobody knows what's going on with the finances of the province.

The

minister may have said that the costs for severance were going to be around $85

million in the fall, but that was at the same time the government was denying

they were going to increase MSP premiums. Someone needed to get a new deep

throat. The opposition said that the government was going to increase MSP

premiums. Well, it turns out that the government increased MSP premiums.

[ Page 2295 ]

At the same

time that the government was speculating that the costs for severance for this

year — in fact the government didn't specify that it would be for this year

— may be around $85 million, there is also a leaked document for health

suggesting that the costs for severance are well over $200 million.

This is the

time when we actually get the facts. It's the first time we've seen these facts

on paper. Yes, I do want a list of every property, what the improvements are and

why the improvements need to be made for $1 million.

This is up

to March 31, 2002. This is dealing with the budget that changes daily. Today we

had $44 million restored to help with education cuts that the government has

made. It turns out that money was available too. I'm sure the public is not

quite sure what's happening with their finances.

The next

one I wanted to deal with was the $9 million under "other expenses"

— an accounting of that, please.

[1525]

Hon. G.

Collins: I'll say again that this isn't a surprise to anyone other than the

member opposite apparently. It was disclosed in November with the workforce

adjustment and the restructuring at that time.

I've

explained why the number is slightly higher. I've explained the fact that we

hope we don't have to use this appropriation, and we'll do everything we can to

not use it. Given we're at the very end of the fiscal year, rather than have to

correct this after the fiscal year, if we can't and there is insufficient room,

I think the appropriate thing to do is come to the Legislature and seek the

appropriation. Then it's there if necessary. If it's not, then that's good news.

So I think I've explained that.

I would be

very happy to provide a briefing to the member opposite on the details and

breakouts of all of these items, this $95 million. Perhaps we can do that at the

same time as we're providing her with the briefing I committed to on how Skeena

Cellulose went south and the costs that are associated with that. When the time

is appropriate and amenable to both the member and staff in this ministry, I'd

certainly be pleased to provide all of that detail.

The member

asked about the $9 million for other restructuring. That is for write-offs of

capital assets — i.e., information systems. We could have a long discussion

about information systems and what they've cost the government and taxpayers

over the last decade, but now is probably not the appropriate time. I'll wait

for estimates.

The other

is contract termination penalties incurred for cancelled projects. Again, I

would be very happy to provide the same detail on these as I would on the

million-dollar items that she was referring to.

Further, in

response to the member's comments — although not particularly relevant here

— about the education decision today, I just want to make it clear that the

money being granted to school districts is money that was contained in the

education budget for this year. It is not additional funding. It is money that

was in the budget, and because of proper planning and cost control within the

ministry this year and a variety of issues, the ministry has money that is

available.

This

government committed to not cut the funding for education or health care. There

is money left in the education budget. We also said in the election that we were

going to focus education dollars on students. That's why that money is being

directed back to the school districts for them to provide for the needs of

students at their will.

MacPhail: Could the minister please name the information systems that are

being written off and the contracts that have term penalties being paid out?

Hon. G.

Collins: I am not able to do that. I am very happy to provide a detailed

breakout and briefing for the member when the time comes. As I said, these are

estimates. We don't have all of the information from the information systems as

to what the total cost will be, but I'm certainly prepared to provide for the

member a breakout of that and a briefing at the same time if she wants the

details on all of these items. I'd be more than happy to make that available.

MacPhail: I had ten minutes to prepare for this, and I'm prepared. I'm not

quite sure why we can't have this information. This is the place where this

information is revealed, not in private briefings. Please, what are the

write-offs for the information systems and the contracts that are cancelled that

require penalty payments?

Hon. G.

Collins: My answer is the same. It is not uncommon at all for briefings to

be provided in general estimates during, before or after. In fact, I recall

numerous times when that member was the minister of various ministries, when

more detailed information was offered to members either prior, during or after

an estimate. I will stand by that longstanding practice here and make that

information available to the member.

MacPhail: Briefings were always provided before. Well then, let's adjourn.

Let's recess, and I'll take a briefing right now before we pass this.

[1530]

This is

ridiculous. At 3:30 p.m. on a Thursday afternoon this government is spending $95

million of taxpayer money, and nobody can get any detail on it. Why isn't the

Liberal back bench rising up and saying: "What's going on?" These are

pretty basic questions, Mr. Chair, and I can't get answers to any of them — to

any of my questions. It is unbelievable. It is an abuse of the time in this

chamber, and it's abuse of the taxpayers as well.

I request

again that we recess and that I get a briefing on this. Then I can reveal to the

taxpayers what this money, the $9 million, is being spent on.

Hon. G.

Collins: It is not required. In fact, the information is as in the

legislation. It is an estimate. I

[ Page 2296 ]

would state to the member that despite her hysteria, there is nothing

different today from what her government did except for the fact that we've

taken it to the Legislature rather than merely sending the Minister of Finance

over to the Lieutenant-Governor, without knowledge of anyone, to get a special

warrant. This is part of the new transparency. That's why there's a supplemental

estimate as opposed to a special warrant, which was the practice of the previous

administration.

Interjections.

The

Chair: Order, members. The Minister of Finance has the floor.

Hon. G.

Collins: Thank you, Mr. Chair.

As I said,

despite the member's hysteria, this is a practice that is longstanding in many

jurisdictions. In fact, there were times in the last parliament, just before the

last election, or the session prior it, I guess…. That would have been the

2000 session. I believe — and I stand to be corrected, but I'm pretty sure —

there were supplemental estimates tabled by the then Minister of Finance, Paul

Ramsey. In fact, the scope of the information is identical to the information

that is here. The member can go back and check the Hansard . She wasn't

involved in the debate; I was. She's welcome to check that, but we intend to

move forward. As I said, although I'm not required to, I'm very happy to provide

further detailed information to the member and to provide a briefing to her as

I've offered her repeatedly in my time in office.

MacPhail: This is worse than a special warrant. There is no detail. There is

absolutely none. The minister shows up in this chamber hours before adjournment

for a long weekend, hours before the conclusion of the fiscal year, spends $95

million of tax money and has no answers for anything — absolutely none. That

is different; that is new. It's unwarranted, and it's an abuse of this

procedure. There is nothing transparent, and there's nothing accountable about

this.

request…. Mr. Chair, I'm shocked that I'm being refused a briefing so that we

can actually ask questions. I guess these members must know what the $9 million

is being spent on, because they're going to stand up and go: "Yes, I'm in

favour of this." They're going to vote in favour of it without knowing.

Well, maybe they had those caucus times. Maybe in caucus they all sit around,

all 76 of them, and say: "Oh, that's good — to spend that $95

million."

Guess what.

The public isn't at the caucus meeting. This is the chamber where this

government is required to be open and accountable. It's the only way anyone can

hold this government open and accountable other than through leaked documents.

That's the other way. That's how British Columbians find out about what's going

on here: through leaked documents or through this procedure. Through this

procedure the answer is: "I don't know. I'll get back to you." That's

the answer. It's unbelievable.

Well, I am

extremely disappointed on behalf of the taxpayers that there are no answers

forthcoming.

On the item

of $85 million — $85 million. The minister broke that down into two parts of

$81 million and $4 million, I think. Could the minister repeat that?

[1535]

Hon. G.

Collins: I'd be pleased to in a moment, but before I do that, I would like

to refer to just how much briefing the member opposite has had and the

opportunity she has had to receive briefings on this issue. In November, when

the government put forward the workforce adjustment package for staff in the

public sector, there was a great deal of information put out. I believe there

was a briefing provided to the member opposite; in fact, I'm positive there was.

Indeed, there have been opportunities since then for the member to request a

briefing.

Secondly,

in the quarterly reports this issue has been referred to repeatedly. As well,

I'll direct the member…. I know she did receive provision before the public

and privileges as opposition that we never had when we were in opposition. There

was a lockup for the member, and she was allowed to come into the House and

released from her lockup. That's something that's never done in opposition, but

that's fine.

I'm sure

that in the member's time in her lockup, she would have referred to page 67 of

the budget and fiscal plan for 2002-03 to 2004-05. For the member's benefit,

page 67 actually has government restructuring which includes the workforce

adjustment strategy, the accommodation restructuring initiative and other

restructuring costs. The estimates are there, and the only reason we're here

today is because there is a requirement for a supplemental estimate. As I've

explained repeatedly, it was hoped that we wouldn't need to do that despite the

fact that it was what had been said. The member has had certainly more

opportunities….

Thirdly,

she had every opportunity to canvass in whatever detail she wanted from the

Minister of Management Services, who is part of this as well through PSERC, if

she wanted detailed information. Certainly BCBC, the Crown corporation, was

available for the member to receive a briefing. Across the floor I've offered

her briefings dozens of time on a whole range of issues, and to my knowledge

they've never been taken up.

I know the

hysteria and the fevered pitch at which the member is pursuing this issue. I

would just say that if that feeling was genuine, if her outrage was genuine and

if her desire to do the public good was genuine, she's had a multitude of

opportunities to get whatever details she wanted prior to today on this subject

or many others. Clearly, she hasn't thought that was sufficiently important to

put at the top of her priority list, which I know is clogged with many things. I

understand that, but those offers are available. They remain available. The

government is going to proceed with this estimate in the legislation today.

We're nearing the end of the fiscal year.

[ Page 2297 ]

If the

member wants to talk about abuse of this House and its time, I recall being in

this House around the clock on a number of times on the very last day of the

fiscal year, and sometimes that was even on weekends. Here we are, and despite

the member's outrage, this government is behaving in ten times more responsible

a fashion than was ever displayed by the previous administration, including the

time when she was Minister of Finance.

Despite all

her bluster, despite what she's saying and despite trying to make this into some

sort of political issue…. Perhaps she's not prepared for the estimates that

are to follow. Despite that, Mr. Chairman, all of this information is available

if she wants further detail: contract by contract; address by address for

buildings; individual by individual for workforce adjustment, not using their

names, of course, but by positions; individual contract by contract; lease by

lease. I would certainly be more than happy to make that information available

to the member opposite as it becomes available.

There is

nothing here that should cause her to be as exercised as she is. As I stated,

this information has been out there since November. It was included in the

budget; it's been included in the quarterly reports. Briefings have been offered

to the member repeatedly. I don't know what more I can add.

MacPhail: Methinks thou doth protest too much. Frankly, I'm always surprised

at how little the minister knows about his job. This is the budget for '02-03

and refers to costs of $215 million that would be incurred in '02-03, which

starts April 1. Fair enough. The Minister of Finance and I will debate that cost

when we get to his estimates.

You know

what? If the minister himself would actually like to treat this House with

respect, he'd actually answer my questions.

[1540]

Hon. G.

Collins: I'm trying to be as respectful as I possibly can to the member

opposite. In doing so, I'll draw her attention to the fact that if she looks at

page 67, which she was just referring to, and goes to the very bottom of the

page — I'm pleased to highlight it and send it over for her — she'll see a

table where it says funding categories for operating, capital and total

restructuring costs. There are a range.... The 215 number that she's referring

to is the total workforce adjustment strategy in salaries. I'm assuming that's

salaries; that's right. The 85 across is 215. If she looks across the top of the

chart, she'll notice that there is a total column at the right, but it's a total

for four fiscal years: 2004-05, 2003-04, 2002-03, which is the next year that

she was talking about, and I think mistakenly referred to the 215 number. In

fact, next year that number was 65.

Also here

in this, because we're trying to disclose as much as we can, she'll notice that

the first column is 2001-02. That's the fiscal year we're in right now. The

number is 85 for the workforce adjustment strategy as has been disclosed

repeatedly and, as I said moments ago in answer to the member's question, $85

million for the workforce adjustment, $81 million for voluntary departure —

that's an estimate to date — and $4 million for involuntary departure and

related severance costs. That's an estimate to date as well.

As I said,

if the member wants a further breakdown on that position by position, as it

becomes available, I would certainly be pleased to provide it to the member.

MacPhail: I'm well aware of what the book says. Frankly, all of this trying

to somehow say that it's ridiculous that these questions are being asked doesn't

wash with the public out there. Just the same way that every time this minister,

and this minister particularly, stands up and arrogantly says that he doesn't

have to answer these questions, it makes people out there in the public

extremely angry.

It's

particularly related to the position of the Minister of Finance. The fact of the

matter is that this has not been debated in this chamber. The public has no idea

what this money is being spent on — until now. This minister won't answer the

questions — full stop. That's what taxpayers know — completely. Despite hour

after hour after hour of being in this chamber, there have not been questions

answered on this matter yet, and today the minister won't answer it either.

In fact, no

one knew until an hour ago that we were going to have to rush in here and debate

this matter. No one knew that. As a matter of fact, it's because the minister

wants to slip it through; $95 million of taxpayer money to go because this

government wanted to do a radical, extreme restructuring of government. I can't

get any answers about that extreme expenditure of $95 million.

Interjections.

The

Chair: Order, members. The Leader of the Opposition has the floor.

MacPhail: Mr. Chair, I'd like an accounting by ministry, then, of the

severance costs and the early retirement costs.

Hon. G.

Collins: In fact, the member is correct. There have not been a lot of

questions about this issue in the House. It's because she hasn't asked them.

MacPhail: I'm asking them now.

Hon. G.

Collins: There were plenty of opportunities in the estimates of the Ministry

of Management Services to do that, and she chose not to. As I said, I would be

more than happy to provide more detailed information than what is here to the

member if she'd like that. I'm very happy to do that. I would be glad to set

that briefing up for her sooner rather than later.

MacPhail: I'll go through it alphabetically. How much of workforce

adjustment money in terms of severance is going to the Ministry of Advanced

Education?

[ Page 2298 ]

Hon. G.

Collins: As I said, I am very happy to provide the member with a more

detailed breakout, if she'd like that. This is an estimate of the cumulative

amount. It's an estimate that has been disclosed previously; there is no

surprise about it. As I said, I'd be more than happy to provide her with that

information in a briefing.

MacPhail: So the minister doesn't know how much is going to Advanced

Education.

How much of

severance and early retirement is going to the Ministry of Agriculture, Food and

Fisheries?

[1545]

Hon. G.

Collins: My answer is the same, and it will be the same answer as she goes

through the alphabetical roll call. She can ask the question repeatedly if she

likes. I'll answer her in advance, and the answer remains the same.

MacPhail: How much is going to the Ministry of Attorney General? Does the

minister know? And if not, why doesn't he know? How much is going to the

Ministry of Children and Family Development? Does the minister know? If not, why

not?

The

Chair: Shall vote 58(

S) pass?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: How much is going to the Ministry of Community, Aboriginal and

Women's Services for severance and early retirement? Does the minister know? If

not, why not?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: How much money is going to Ministry of Competition, Science and

Enterprise for severance and early retirement?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: How much money is going to the Ministry of Education? The minister

must know this one because he spent $44 million today of money that he said was

extra money. The minister must absolutely know about the Ministry of Education,

because this is an expenditure for '01-02.

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: I can't believe it. We spent $44 million in education money today.

The minister stood up and said, "Oh, we had money left over in the Ministry

of Education," and he doesn't have the answer of how much for severance and

early retirement is going to the Ministry of Education. How could he have made

the statement? How could the Minister of Finance have made the statement that

there was money left over? Perhaps he can answer that question.

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: Well, isn't this an interesting, open, transparent and accountable

process. It's $85 million of taxpayer money. Even the ministry today, where the

Minister of Finance stood up and said: "Oh, we know exactly what's going on

there. As a matter of fact, there's $44 million left over…." Perhaps the

minister wasn't being quite forthright, because he can't answer my question.

This is an

expenditure for '01-02 out of the same pot of money that the Minister of Finance

said today: "Oh look, there's $44 million extra because we've managed so

well." My gosh, isn't that interesting? You know what could be the problem?

Maybe the Minister of Finance doesn't know what's going on.

Hon. G.

Collins: My answer remains the same. If the member wants to move onto the

Fs, Gs and Hs, we can continue.

MacPhail: There is no answer to the question I just asked. It probably puts

under a cloud of suspicion whether indeed the government was maybe meeting other

concerns around that $44 million under the Ministry of Education. That surely

should be a ministry that the Minister of Finance could tell me how much out of

this is for severance and early retirement. Here's what he would have had to do.

He would have had to calculate what the costs are for education, and then he

would have had to say: "Well, that money isn't available from Education, so

we have to come in here and do a supplemental estimate." Meanwhile, he went

out the door and spent $44 million, which…. Thank God for students in

classrooms that they saw the error of their ways.

How much

money is for Ministry of Energy and Mines for severance and early retirement? I

actually believe that the minister does have this information.

Hon. G.

Collins: As the member knows, as far as the direct government goes and

what's listed here, there are not the direct workforce adjustments in the

Ministry of Education. The budget hasn't been cut. As I said, if she wants to go

on to the Fs, the Gs and the Hs, we can move along, but my answer remains the

same. I'd be more than happy to provide the member with the information in

detail when it's available for her at a time that's amenable to her —

hopefully sooner rather

[ Page 2299 ]

than later — and that works with the staff's time here as well.

MacPhail: One of the reasons why we have this process is so that members can

be informed and see whether they wish to vote to support this expenditure. I'm

trying to find out information to determine my vote. That's this process here,

Mr. Chair. That's why I'm asking these questions. These questions are completely

legitimate, they're on topic, and this is the place and time to ask them.

[1550]

How much

for early retirement or severance is being allocated for the Ministry of

Finance?

The

Chair: Shall vote 58(

S) pass?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: How much money is being allocated for the Ministry of Forests for

severance or early retirement?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: Well, I'm going to continue, Mr. Chair. Here's one: the Ministry

of Health Planning. How much money is being allocated for severance and early

retirement for the Ministry of Health Planning?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: Is the money for restructuring of the health authorities that has

occurred in this year dealt with under this $85 million?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: Mr. Chair, I'm not going to get an answer to that question. I have

actually a specific question for the minister. Maybe he'd answer this question.

In the Central Vancouver Island health region the CEO, the head health

administrator, quit last week — quit voluntarily. He's been given 16 months of

severance. Not fired. Not anything. He quit. Where's the cost of that being

allocated?

Hon. G.

Collins: I wish it was allocated out of that member's legislative budget,

because it was her government who was responsible for signing it.

MacPhail: In fact, there is legislation passed by our government that

specifically precludes this payment — specifically. In fact, this payment is

in violation of that legislation. Our government passed that legislation. This

payment is specifically precluded. So, sorry, nobody's responsible for that

except this current regime who refuses to enforce legislation. That's why I'm

asking this question. Voluntary departure — how is it and where is it being

paid for? It was precluded by legislation.

Hon. G.

Collins: If there are severance arrangements that have been made by the

previous government which are in violation of the legislation, then those

provisions will not be honoured. Clearly, the legislation has precedence. I

don't think we need to have a debate on that. That's the law.

In fact,

the Premier has asked myself to review many of those outrageous severance

provisions that were in many of the contracts set up by the previous

administration, with an eye to protecting the public interest. That is underway.

I'm sure we can talk about that at some later date.

MacPhail: Clearly, the Minister of Finance has no idea what's going on —

absolutely none. In fact, he wasn't even aware of the legislation. It's all very

well and good for this government to do radical, extreme restructuring, and they

don't have a clue what's going on. They don't have a clue how the money's being

spent. They don't have a clue whether their government is upholding the laws of

the day. Yet patients are suffering. Kids can't get treatment for autism.

Inner-city funding is gone, not to be restored. This minister, this government,

has no idea what's going on right under their nose on their watch.

How much is

for restructuring for severance and early retirement for the Ministry of Health

Services? The leaked document said it was going to cost about $227 million, in

terms of restructuring costs for severance and early retirement. How much of

this $85 million is going toward the cost of the $227 million in total for

restructuring under Health Services?

The

Chair: Shall vote 58(

S) pass?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: In the estimates for the Ministry of Human Resources, they're

talking about office closures throughout the province. How much are the

restructuring costs for early retirement and severance for the Ministry of Human

Resources, as part of this $85 million?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

[1555]

MacPhail: Oh, my gosh. Isn't this great? Don't you feel good? Don't you feel

good about democracy?

[ Page 2300 ]

To those of you who are watching, isn't this a good process? There's $85

million of tax money being spent, and no answers. None. Zero. No answers, and

somehow the minister says: "Why don't you go into a private room with some

of my officials? They'll give you a briefing, and that way, nobody will

know."

Isn't this

good news for all of those MLAs who have to return to their constituencies?

Return to Penticton and say: "Where are the 5,000 beds? What portion of

these new 5,000 beds have I got here in Penticton?" Isn't that good news?

How much money is being spent for restructuring for severance and voluntary

retirement for the Ministry of Provincial Revenue?

The

Chair: Shall vote 58(

S) pass?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: How much money for restructuring for voluntary retirement and

severance is being paid for the Ministry of Public Safety and Solicitor General?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: I'm sorry this is taking so long, Mr. Chair. It's because it's the

largest and most expensive cabinet in the history of British Columbia. That's

why these questions are taking so long, and that's why the lack of answers is

taking so long. We have the largest cabinet in the history of British Columbia.

Gosh, I wonder how effective that cabinet is. Well, let's just continue going

on, then. Let's see what else the minister doesn't know.

The

Ministry of Sustainable Resource Management is suffering substantial cuts to the

ministry. Those have already occurred. Those estimates did explore this issue,

and the minister didn't have the answers, so this is the place where we ask this

question. How much of severance and early retirement costs of the $85 million is

being allocated to the Ministry of Sustainable Resource Management?

Some

Hon. Members: Aye.

The

Chair: Leader of the Opposition.

MacPhail: Oh, gosh. Even when the minister was given the direction to ask

the question by one of his cabinet colleagues, he can't answer the question.

Now, the

Ministry of Transportation. That was an interesting set of estimates, Mr. Chair.

Two members have to either be in the little House or…. I was actually

answering questions of the public, and there were 76 MLAs. No, there would be 75

MLAs. Let's see. Ministry of Transportation and Highways, a very important

matter. It's huge. The concerns of the MLAs in their ridings I've heard over and

over again. They have concerns about transportation and highways. Let me see:

the estimates went through in — what? — 25 minutes.

Interjections.

The

Chair: Order, members. Can we try to keep the discussion relevant to the

estimates that are before us this afternoon. The Ministry of Transportation

estimates were concluded yesterday, I believe. If the member could please limit

her comments and her questions to these estimates.

MacPhail: Mr. Chair, that's good guidance. I'm about to ask a question about

the Ministry of Transportation and how much of the costs of the $85 million are

allocated to severance and early retirement for the Ministry of Transportation

and Highways. As you know, it was decimated by over a thousand layoffs.

I checked Hansard

this morning to see if in the 25 minutes the 75 MLAs in the Liberal caucus stood

up and said: "Oh, my God. What are you doing about those layoffs, and how

much is it costing us?" You know what? It wasn't asked. Isn't that

interesting? That's why I'm asking it now.

Right

through in 25 minutes. I guess under the lob questions on transportation and

highways, there won't be any questions to the Minister of Transportation and

Highways. Knowing that this question wasn't asked last night, how much of the

severance and early retirement costs of the $85 million are being allocated to

the Ministry of Transportation and Highways?

Hon. G.

Collins: The reason why the members of the government, the MLAs, didn't have

to stand up and spend hours after hours asking irrelevant questions of ministers

is because they took the opportunities that were afforded to them to have

lengthy briefings and discussions on the issues at hand. That's something I

would advise the member opposite to do.

My answer

to this question is the same as for the others, and it will be the same answer

right to the end of the alphabet. Then we can proceed with the next matter the

member wants to discuss.

MacPhail: If indeed, Mr. Chair, the minister has the answers for Liberal

MLAs, why does he not have the answers for me?

[1600]

Hon. G.

Collins: I do have available, probably, to the member the detailed

information that she seeks. As I've said, I've offered that repeatedly. If she

would like a briefing on the detailed information, I'd be more than happy to do

that. That is a very common practice. As I've said, there's a backlog of

briefings offered and not accepted. We'll continue to do that.

MacPhail: What we know is that the minister is fine to give the details to

his own caucus members behind closed doors, and yet he won't give the

information either to the public or to members of the opposi-

[ Page 2301 ]

tion. Clearly, he just admitted that the information is available. That's

exactly what he said right now. The information is available, but the Minister

of Finance refuses to make it public.

How much

severance and early retirement payments of the $85 million are allocated to the

Ministry of Water, Land and Air Protection?

Hon. G.

Collins: I'll repeat. These are estimates, and when the information is

available, I'll make it available to the member opposite.

MacPhail: Well, I find it unbelievable that this Minister of Finance, who

spent $44 million just like that this morning, who said he knew what was going

on, said: "Oh gosh, you know what? It's Thursday. I woke up this morning,

and I figured out there was extra money for education." Well, clearly, I

guess the public will take him at his word that he knew what was going on.

All I'm

asking is for that same kind of calculation from the Minister of Finance, that

he knows what he's doing when he's spending this $85 million. It's a pretty fair

assumption that a Minister of Finance would spend $85 million of tax dollars on

the basis that he knows what he's doing. That's the reason for these questions.

You know

what I have to say? Let me be very clear. This is the time when people get the

information to make an informed vote. I didn't receive any information that

would allow me to make an informed vote — none. I'm worried about what this

expenditure is on — absolutely worried. I have no idea why it is that the

Minister of Finance would deny me information so that I can make an informed

vote.

I have no

idea, based on the public record, how any one of these Liberal MLAs can make an

informed vote on this matter — none. They certainly won't be able to stand up

and say: "Look, here was the discussion, or there was the information

before; here's the information today." They're going to stand up and go

aye, aye — little ducklings in a row — and say: "Oh sure, go ahead.

Spend that money. We don't know what it's for. We have no idea whether it's

legitimate or not." They're going to say to the Minister of Finance:

"Fine, go ahead and spend that money." I can't do that, Mr. Chair. I

can't do it because I have no idea what the money is being spent on.

I don't

want to vote against it. I'll tell you why. I don't want to vote against it

because there may be families who are relying on this, but I don't know. It may

be that this money is a necessary expenditure. Maybe I could find out whether

there are some things going on in the ministries that I didn't know about

before. Maybe I could have an answer to my question about the Health Services

expenditures of 16 months of salary that isn't necessary and isn't required by

law.

So I can't

do that. Mr. Chair, here's what I'm going to have to do. I can't vote. I can't

vote because I have been denied the information on the basis of which I can make

an informed vote, and unless the Liberal MLAs in this chamber have had secret

briefings about information that the Minister of Finance refuses to give me,

they are not making an informed vote either.

Hon. G.

Collins: Let me just pursue the logic being used by the member opposite for

one moment, if I may. She says that she doesn't want to vote against this

because there may be families who are reliant upon the severance available. She

says that she doesn't want to hurt them.

Let me put

it this way to her. There's an estimate of about, I think, $85 million, which is

going…. Perhaps she might want to stay around. She can offer her wisdom.

[1605]

There's

an estimate that there will be about $85 million which will be directed to

individuals for retirement or voluntary severance. Her questions have centred on

which ministry that's in. It would seem to me that if she favoured all employees

in the same way, it wouldn't matter whether all of it were in one ministry or

whether it was split equally amongst all the ministries or whether it were

divided according to where the demand was. She would therefore support what that

amount was to those employees in the various ministries they happened to be in.

As I said, if she's interested — I can't imagine how it would sway her vote

for or against — in a breakout, I'd be glad to make that information available

to her in the future with a briefing.

I can't

understand her logic that somehow having more or less of it in one ministry or

another to different employees in different ministries would change her vote —

whether she supports it or not. I've been somewhat baffled today by the

exercised nature of the member opposite, given the long history of supplemental

estimates, given the opportunities that have been provided to her over the last

four, five or six months to get detailed briefings on this, given the

opportunity to ask these questions of the Ministry of Management Services and

given her alleged concern for this issue.

What I've

seen today by the member is pure politics. I expect it's done because she's not

prepared for the estimates which are to follow the supplemental estimates.

As I said,

that information will be available to the member. I've offered her numerous

briefings in the past. To my knowledge, she hasn't taken them up yet. The offer

stands. There's nothing unique, different or unusual in any way, shape or form

about what's being done here today, other than that this government chooses to

bring it to the Legislature for approval the way it's supposed to be done,

rather than do it through a special warrant. I don't know what more I can add to

what should be a very simple debate.

I notice

the member didn't seem to want to respond to that, so with that, I call a vote

on 58(S).

Vote 58(

S) approved.

Hon. G.

Collins: I move the committee rise and report resolution.

[ Page 2302 ]

Motion

approved.

The

committee rose at 4:07 p.m.

The House

resumed; Mr. Speaker in the chair.

Hon. G.

Collins: I move the report of the resolution from the Committee of Supply on

March 28, 2002, be now received, taken as read and agreed to.

Motion

approved.

Hon. G.

Collins: I move that there be granted from and out of the consolidated

revenue fund the sum of $95 million. This sum is in addition to that authorized

to be paid under

section 1 of the Supply Act, 2001-2002, in

section 1 of the

Supply Act 2001-2002 (Supplementary), and is granted by Her Majesty towards

defraying the charges and expenses of the public service of the province for the

fiscal year ending March 31, 2002.

Motion

approved.

[1610]

Introduction and

First Reading of Bills

SUPPLY ACT, 2001-2002

(SUPPLEMENTARY No. 2)

Hon. G.

Collins presented a message from His Honour the Administrator: a bill intituled

Supply Act, 2001-2002 (Supplementary No. 2).

Hon. G.

Collins: I move that the bill be introduced and read a first time now.

Motion

approved.

Hon. G.

Collins: I don't know if you want to distribute the bill. Perhaps we can

take a moment.

Mr.

Speaker: If we could just ask members to remain in their seats for a few

moments while we distribute the bill.

Hon. G.

Collins: The use of supplemental estimates is consistent with the spirit of

the Budget Transparency and Accountability Act. This bill is introduced to

provide supply for the operation of government programs for the 2001-02 fiscal

year, as outlined in the supplementary estimates tabled earlier.

The bill

will provide the additional funds required to defray the charges and expenses of

the public service for the province for the fiscal year ending March 31, 2002.

accordance with the established practice, the government seeks to move this bill

through all three stages this day.

Mr.

Speaker: Hon. members, in keeping with the practice of this House, the bill

will be permitted to advance through all stages in one sitting.

Second Reading of Bills

SUPPLY ACT, 2001-2002

(SUPPLEMENTARY No. 2)

Hon. G.

Collins: I move that Bill 14 now be read a second time.

Motion

approved.

Hon. G.

Collins: I move that the bill be referred to a Committee of the Whole House

for consideration forthwith.

Motion

approved.

Bill 14,

Supply Act, 2001-2002 (Supplementary No. 2), read a second time and referred to

a Committee of the Whole House for consideration forthwith.

Committee of the Whole House

SUPPLY ACT, 2001-2002

(SUPPLEMENTARY No. 2)

The House

in Committee of the Whole (Section

B) on Bill 14; T. Christensen in the chair.

The

committee met at 4:15 p.m.

Section 1

approved.

Schedule

approved.

Preamble

approved.

Title

approved.

Hon. G.

Collins: I move the committee rise and report the bill complete without

amendment.

Motion

approved.

The

committee rose at 4:16 p.m.

The House

resumed; Mr. Speaker in the chair.

Report and

Third Reading of Bills

Bill 14,

Supply Act, 2001-2002 (Supplementary No. 2), reported complete without

amendment, read a third time and passed.

[ Page 2303 ]

Hon. G.

Collins: I call Committee of Supply. For the information of members, we'll

be debating the estimates of the Ministry of Advanced Education.

Perhaps we

could wait a couple of minutes. I notice we're still awaiting a member of the

opposition. Ah, she just arrived.

Committee of Supply

The House

in Committee of Supply B; T. Christensen in the chair.

The

committee met at 4:17 p.m.

ESTIMATES: MINISTRY OF

ADVANCED EDUCATION

(continued)

On vote 10:

ministry operations, $1,900,016,000 (continued).

MacPhail: Some of these questions came into our office via the public. I

read this over the lunch hour. This is from a Monica Andres in Surrey:

"Could you please ask the following questions of the hon. Minister of

Advanced Education? When the Minister of Advanced Education refers to 'student

needs'" — this was from the debate this morning — "is she only

referring to students that manage to be accepted and registered for

post-secondary education? What about the individuals that want to be students in

post-secondary education? How will they be accounted for?"

It's

important that I read this whole thing for the minister, because it has come

from the public.

"What

is there for individuals who want to be students and can't because they

don't qualify for loans? How will the Minister of Advanced Education monitor

or evaluate the needs of the individuals that want to be students of

post-secondary education? In an evaluation accountability process, will the

minister review (1) how many individuals tried to register for

post-secondary versus how many individuals were accepted as students versus

how many were rejected? Will the outcomes of a such a review be made public,

and if so, when?"

[1620]

Hon. S.

Bond: We have, in the budget letters sent out to institutions across the

province, set targets and measurements in terms of what the expectations are for

the institutions, in that we are looking at a projected growth across the

province of 2,700 students at minimum. As we work on the accountability

framework with institutions over the next year, we'll be looking at other

measures for outputs. Obviously, we have set targets. We expect institutions to

increase the number of seats.

In fact, we

also have given them as much flexibility as possible in looking at class sizes.

We want to increase the number of seats. We recognize that over the next ten

years there will be significant growth. There will continue to be numbers of

students who want to get into post-secondary education, and we are working to

increase seats. We are looking at measuring how many students get in, and we're

going to work as hard as we can to ensure that the number of seats continues to

grow over the next three years.

MacPhail: Well, I'll just have to rely on Ms. Andres from Surrey about

whether the minister has answered her questions or not. I suspect that she'll

say: "What about the question? What is there for individuals who want to be

students and can't because they don't qualify for loans?"

Hon. S.

Bond: We have a student assistance program in this province. We will

continue to help students who are most in need. In terms of how students are

accepted and who's accepted, there's a specific set of criteria. In addition to

the assistance that we provide, institutions are also working very hard to

provide additional assistance for students. The criteria are very clear.

Institutions, as I've said, are adding to the program of student financial

assistance that we have.

I certainly

can't comment on individual cases or why a particular student doesn't qualify,

but there are very clear criteria. We want to help those students most in need

in this province.

MacPhail: I don't think the member of the public was asking an individual

question. This question came in to us via letter while the minister and I were

discussing the government's refusal to guarantee a bursary system, somehow

suggesting that there was greater student financial aid available through a loan

system.

I have no

idea whether Ms. Andres is in this category or not; I'm sure she isn't. The

government is kicking people off welfare and expecting them to get a job. I

expect that there are many people in that category who, through no fault of

their own, won't have the credit rating to qualify for a student loan. I'm sure

that's why that question arose.

Here's some

more questions that came in from the public while the minister and I were last

talking. The minister kept on saying that there are new tools given to

institutions to manage their costs that the government isn't funding. What are

those tools?

There's two

parts to the public's question. What are those tools, and how much will each of

those tools save?

[1625]

Hon. S.

Bond: Obviously, the first tool is the decision that we made to send

resources to institutions using block funding, which allows them to look at how

best to use those resources to meet the requirements and demands of students in

communities. We've also given institutions the ability to determine and adjust

class sizes and the number of students that

[ Page 2304 ]

are assigned to faculty. We've looked at how they can extend the hours of

operation and times when instruction can be delivered. As I've said, we are also

looking at improved utilization of facilities. In fact, we have given a number

of tools to allow for the kind of decision-making that needs to take place.

In terms of

the amount of savings that will be generated, that's dependent on each

individual institution and the usage of the options that have been provided

them. An example of that is one that I also shared this morning with the member

opposite. For example, if class sizes were adjusted to include one additional

student, we would be able to add, significantly, thousands of seats over the

next number of years at institutions in the province.

MacPhail: When this member of the public sent this question in, I saw that

the minister has actually given a number for savings for productivity. In the

three-year fiscal plan it talks about productivity tools. The minister has been

referring to it as flexibility to institutions, but in the document it's called

productivity tools. There's a savings of $37 million over three years booked for

that. How did the minister come to that figure?

Hon. S.

Bond: That is the estimate we would use, for example, if one student was

added to each class in the province over the next number of years. It would make

some assumptions about class size and how students would be added to that. It

would make assumptions about extended use of facilities and the offering of

courses. It is an estimate of potential cost savings as a result of looking at

class sizes and the way facilities are operated in the province.

MacPhail: I'm curious about that because my understanding is that there are

very, very few restrictions in the college and university sector on class size.

Am I correct in that?

Hon. S.

Bond: In fact, there were no restrictions in the universities as

institutions. Having said that, there were significant numbers of restrictions

in colleges and institutes in the province, and that's why those changes were

made.

MacPhail: In fact, that's not the case. There were a few restrictions at the

college level — a very few. There were none at the faculty level and a few at

the college level.

Here's the

reason I asked this question. If the minister has such great faith in the

institutions, which I do as well…. The institutions which had no restrictions

on them on class size must have done their class-size determination according to

what makes most sense for education, and the minister never received one single

request from any institution that class size was an issue. How is it that all of

a sudden the minister says, "Here's a new tool," when in fact this

tool has been available to institutions, and institutions which may have been

restricted by class size never brought it to the attention of the minister as a

problem?

Hon. S.

Bond: In fact, across the province, in the institutions and in the colleges

and institutes, there were very different restrictions, particularly on academic

class size. Certainly, the comments in the consultations I had with lots of

people over time talked about the ability to manage the system, and so one of

the things I looked at and considered were the kinds of things that created

inconsistency in the institutions.

[1630]

Let me give

you an example. At Capilano, for example, the academic class-size restriction

was a maximum of 35. Let's just choose another one here. At Northern Lights

lecture courses, the restriction was 35. Tutorials and seminars were 20, labs

were 18, and labs with support staff were 18 to 24. At Northwest there were 36,

with a number of reductions for specific courses, and the list goes on. At

Cariboo it was related to a particular academic year.

In our

view, we wanted to find as much flexibility within the system as possible, and

we took the very basic principle that by adding one student to those classes....

We looked at the issue of quality and class size, and we looked at the research

behind that and asked: "If one student were added to a class, what would

that do to the class?" It would give us one more seat in the institution

and across the sector.

We did

consider all of those things, and in fact a great variation of restriction

existed across the province.

MacPhail: Well, I know the minister has read out the couple of examples that

exist in a system that's substantial — no class restrictions in the university

sector at all. Yet the minister takes.... The minister can count up all she

likes, but the College Institute Educators Association has done this

calculation, as have the faculty associations, and there are no restrictions at

the university level — none.

Yet the

minister says: "Across the system, the system needed this

productivity." Well, the productivity has been available. Here's what I can

tell that the minister has done. She has to justify the fact that her government

is underfunding post-secondary education. She had to have some justification for

saying, "Oh, the issue was really a productivity issue in the system,"

and that she could then do a silly, silly, simplistic calculation by just

putting one more student in every classroom. That is the silliest calculation

I've ever heard. She said: "Now these new productivity tools are available

to the institutions." They're not new; they're silly. It's merely a

justification for cutting $37 million over three years out of the education

system. That's why.

The

minister's plan also says that there's a three-year fiscal plan that estimates

$14 million in savings moving to results-based management. What does that

[ Page 2305 ]

mean, and how much will be saved this year on moving to a results-based

management?

Hon. S.

Bond: First of all, I would like to ask the member opposite to direct us to

the source of that particular question — the $14 million generated savings.

I would

just like to make one comment about the fact that adding one student to each

class in this province is a silly, silly suggestion. I would suggest that it's

not so silly if you're the one student who actually couldn't get into that

particular class.

In fact,

let's talk about what this government did to funding in post-secondary

education. We protected nearly a $2 billion budget. In fact, we're trying to

work with institutions to generate as many seats as we possibly can, because we

know the number of students is going to increase. You know what? As we fix the

economic state of this province, we're going to reinvest in education. In the

meantime, we're going to be as creative and think as hard as we can to put even

one more seat in a classroom in this province.

In terms of

your second question, if you could direct us to the particular area that you're

referring to, I'd be very appreciative.

MacPhail: I'll get that information. It was off the ministry's own website.

Sorry, I've done my research and put it in a binder. I'll certainly get that

information. It's exactly out of the ministry's fiscal plan.

[1635]

When I said

it was simplistic and silly, the minister knows full well that there are all

sorts of ways of calculating what the most effective way is of teaching

students, the most effective size, the resources needed, safety requirements,

tutorial requirements, adviser requirements — all of that. For the minister

and these people who sit here and applaud and say: "Oh…." You know

what? I know that the parents sitting in my riding, hoping like heck they'll be

able to afford to send their child to school, probably say: "Well, that

makes sense. Just add a chair." The minister knows full well that's not how

our post-secondary institutions are run. They're complex, diverse beings.

It's

ridiculous to simply make a silly calculation like just add one student to each

class. That's what I'm saying. The simplistic attitude is to merely justify the

cuts this minister has made to post-secondary education. You know what? I

actually do say something. You're right. The fact that the government has

protected the previous government's record for spending on post-secondary

education is good news, because people on welfare are having their resources cut

by $500 million, kicked off welfare and told to get a job. I guess that is good

news. That's why I'm trying to find out what sort of commitment this government

made in terms of their strategy to help all people in this province, not just

the rich; how they've decided to help all people in terms of their strategy.

Let me ask

this. It's a follow-up to the woman who wrote in about student aid. Can the

minister tell me how many more students it is estimated will need to borrow

student aid? What is the minister calculating for the average increase that will

be needed in order to make up for tuition fee increases?

Hon. S.

Bond: With the changes we have made in the student financial assistance

program, we are looking at an increase of approximately…. In 2001-02 the

projected number of students we would provide assistance for was 67,000. The

budget is now in place for 71,737 — so 4,000-plus students. The maximum award

available will be $9,350 for students with no dependents. It will be $14,790 for

students with one to two dependents. That is the case of students who have

dependents.

MacPhail: Does the 67,000 estimate include students who get first-year

grants?

Hon. S.

Bond: Yes, it does.

[1640]

MacPhail: Okay, we have a system here now where the elimination of the

first-year student grant program saves the government $39.6 million. The student

financial aid is going up $2.3 million. Can the minister explain where the

students are going to have access to student financial aid or these student

loans equal to $39.6 million, or are they supposed to go and work for six bucks

an hour?

Hon. S.

Bond: The position we find in student financial assistance is that we were

over budget in this fiscal year on grants. We are very close to being on budget,

however, in student financial assistance, and that was primarily due to low

interest rates. We couldn't count on low interest rates for the next fiscal

year. We needed to take measures to address the pressures year over year. We did

that by shifting; in order to offset those pressures, we shifted from the grant

to the loan. We also needed to be aware of the additional requirements that we

felt would be necessary by students in the province.

MacPhail: Well, there's some interesting forecasts on interest rates.

That'll come as a shock to the Minister of Finance, I'm sure. His debt servicing

is predicting continued low interest rates. Let's just go right to the book,

could we? Student financial assistance programs in '01-02 are $154.444 million.

Now the government is expending $156.756 million. In '01-02 what portion of that

was student grant, and what portion was loan? And then I know the answer. I

assume that it all becomes loan in '02-03.

Hon. S.

Bond: In '01-02 the grant amount was $83 million, and the balance was loan.

[1645]

MacPhail: So what we now have is a situation here where…. Oh, I'm sorry.

That would be the grants

[ Page 2306 ]

over the four years. What portion of that is first-year grants that have been

converted to loans?

Hon. S.

Bond: We don't have with us the number for first-year grants that was

budgeted in '01-02, but we will be happy to get that for you.

MacPhail: But I assume the $83 million is for the four years of grants? The

minister is nodding yes. I'm wondering, then, how the ministry calculated that

there would be $39 million saved. I assumed that maybe that would be the $39

million saved that they announced — or because they were cancelling first-year

grants.

Let me ask

this, then. The minister says they overspent. What portion was budgeted for

first-year grants, knowing that they overspent?

Hon. S.

Bond: If the member's referring to '01-02, I don't have that number. I just

said that, and we would be happy to get that for you.

MacPhail: No, I'm sorry. I'm going from the information that the ministry

released earlier — that they planned on saving $39.6 million by cancelling

first-year grants. I'm combining that with the information that the minister

just gave me — that she's aware that they overspent on first-year grants. I'm

just asking for a rationale or a rationalization of those two facts.

[1650]

Hon. S.

Bond: What I'll do is walk through how the base budget number was created.

The potential pressures we faced, should the demand continue in terms of the

grant program, would have been $31.7 million. Those were the potential pressures

we faced. By making the shift from grant to loan, that would have been a gross

savings of $47.8 million.

So we're at

$47.8 million. When we moved that to the loan program, there were costs

associated with that. The cost associated with that would have been $8.2

million, therefore coming to the number the member suggested in terms of savings

of $39 million, which we needed to apply to the pressures that were anticipated.

In addition

to that, as part of it, $3.7 million went to offset the increased cost to

students of $15 per week. We also enhanced by $4.2 million the loan provisions

to assist students with higher debt. When you take the savings and look at the

pressures we addressed and also the other items mentioned, the total then comes

to $156.8 million.

MacPhail: The minister has put into the pot for student financial aid an

increase of $2.3 million, but she has converted the money and deducted costs of

the grant program to the student financial aid. Now that is all 100 percent

loan. Is that basically what the minister…? Actually, it's not a trick

question. I'm reiterating what I think the minister is saying.

Hon. S.

Bond: In the first year a typical eight-month program is considered 34 weeks

in duration. For any program that is 34 weeks or less, all of the programs are

loans. Grants are available to students who take programs that are longer than

34 weeks in duration. Of course, the grant program exists in the second, third

and fourth years as well.

MacPhail: Sorry, that wasn't the question I asked. Anyway, let's just leave

it at the fact that student financial aid is going to have to cover the

first-year grants now. Let's ask about what the minister knows about these

students who will have to take out the loans. What's the student loan default

rate now, and can the minister break it down between private post-secondary

institutions and public post-secondary institutions? I assume that the student

financial aid program changes are for both private and public institutions.

[1655]

Hon. S.

Bond: We can certainly go through the default rates by institution type.

Indeed, the changes to student financial assistance do apply to both private and

public institutions. I should point out that there is a difference between

default rates and bad debt, in essence. Default rates is a student who has

missed even one payment, so when we talk about default…. Often students miss

one. Default is typically anything beyond one payment. Bad debt is obviously

students who at the end of the day simply cannot pay back and won't repay. We

just need to have the

definitions clear.

In B.C.

universities the default rates for 2000 were 5.1 percent; B.C. colleges and

institutes, 7.5 percent; B.C. private institutions, 19.9 percent; and the

average in all British Columbia schools was 11.3 percent. We also have to

caution that the rates for 2000 may rise slightly when the rest of the data is

included, because borrowers who have gone into repayment in that calendar year

may default in the future, so that the rates might rise slightly. Those are the

student loan default rates. Again, I want to point out that default can mean one

payment.

MacPhail: I'm happy to have the minister just work with bad debt statistics

if she wishes.

My next

question is going to be: what does the ministry anticipate in terms of the bad

debt rate rising as a result of conversion of first-year grants to loans?

Hon. S.

Bond: We currently, looking at past history…. I should point out that

we've only been back in the direct lending business to students for a year, so

it's difficult to calculate exactly what the bad debt will look like. We've only

been doing that for a year. That responsibility was given back to government. We

look at 10 percent in terms of bad debt. The portfolio is built around a 10

percent assumption. Because there will be higher costs for many students in the

coming year, we anticipate that those numbers will increase. But I also need to

point out that while that is a challenge, students in British Columbia currently

have and will continue to have some of the lowest debt load in the country.

In answer

to your question, the portfolio around bad debt is based on a 10 percent

assumption.

[ Page 2307 ]

[1700]

MacPhail: I'm not looking at this from the point of view of the student. I'm

looking at this from the point of view of the taxpayer about penny-wise,

pound-foolish decisions, because, of course, the bad debt is absorbed by the

taxpayer.

What is the

assumption of what the taxpayer will be absorbing? The policy, I assume, is the

same — to write off bad debt eventually. What is the assumption of what that

will cost the taxpayer based on this change?

Hon. S.

Bond: I wanted to point out once again that before we get to the place where

a student loan is actually considered bad debt, there are a number of steps we

go through to ensure that that student gets all of the help, and we are also

protecting taxpayer dollars.

I want to

point out that as we looked at the possibilities of the options of what to do

with student financial assistance, we tried to take a balanced and blended view

in terms of the taxpayer and the student. As the student has difficulty paying

back the loan…. As I've said previously, we are enhancing eligibility

requirements for interest relief. We are improving assistance benefits under the

B.C. debt reduction in repayment program. We are providing repayment options,

including principal deferral opportunities and extended amortization periods.

We're moving from 15 years to 20 years.

We're

trying to give students as much help as possible and balance that with what is

reasonable for the taxpayers of this province. I think the approach is a blended

one. We have budgeted conservatively for an increase. The assumption around the

portfolio is 10 percent currently. We assume that will increase. We believe

we've looked at this from the perspective of the taxpayer, and we're also trying

to help those students who will struggle when they have to pay back the loan.

[1705]

MacPhail: The minister failed to give me a number in that time. Could she

give me a number, please?

Hon. S.

Bond: Well, certainly at 10 percent it would be approximately $10 million.

As I've said, we are looking at a conservative number in terms of the increase

and because we do not have a history — only a year. We've only been in the

business for a year. We're looking at a historical portfolio, an amount of 10

percent. That would be approximately $10 million.

MacPhail: I have an incredible admiration and great respect for the

bureaucracy, and I know how hard people work, so my comments are intended with

only the greatest of respect. But it's not as if student loans were invented in

the last year. It's not as if the history about private institutions in terms of

bad debt wasn't passed on to the government. It's all very well and good to say

that, gosh, we've only been in the business a year, but the experience of all of

this has been passed on to the government.

So it's $10

million. The only reason why I raise this is to explain to the public that there

are hidden costs to the taxpayer when one moves to a completely loan-funded

system for providing post-secondary education. Not only is it regressive in that

the rich have a much greater advantage in access to post-secondary education,

but what it means to certain families — you know, it actually breaks my heart

that this is going to occur — that have been struggling for years to save and

send their children to post-secondary education, who are not going to give up

that dream just because this government has imposed more costs on them….

What

they're going to do is go into debt, or their child is going to go into debt,

probably for the first time in some cases. Or they're going to go into debt and

risk everything, including their financial well-being. That's what this

government is doing instead of — in the year 2002 — moving to a place where

the child of a forest worker can get an education even if that forest worker is

laid off, the same way that the child of a physician can get an education.

That's gone now. In fact, forest-worker families probably can't get any loans

because of the trouble that they find themselves in. That's where we're moving

to in the year 2002.

There's a

cost to families. There's a cost to the children. The minister needs to know

that as a result of this minister's policy change to say no more grants in the

first year, there are families out there whose children will not be going to

university or college.

The next

step is that if a child is going, families will be risking debt accumulation for

the first time in their lives — probably debt that they can't afford. In fact,

if you're in an area of this province where the economy is greatly at risk, in

the rural areas, there's a decreasing potential that you will even qualify for a

loan. We know that because the banks have already…. I met with a person from

Port Alberni today who said that town is struggling and almost shutting down in

terms of economic activity, including loans being made.

[1710]

On top of

that, there are costs that the taxpayer will have to bear because of the lack of

generosity, for the mean-spiritedness of this policy by this government. It is

mean-spirited; there's no other way of looking at it. The cost to the taxpayer

is going to be that bad debts will increase, and the taxpayer will have to bear

the burden of that.

I can't be

anything other than sad about it, actually, when I contemplate it. We heard from

people over the lunch-hour who said: "That example of a family isn't

hypothetical. It's exactly the circumstances we find ourselves in." Only

the family wasn't making $54,000 per year; they were making far

Document details

CollectionBritish Columbia — Debates (Hansard)
Citation20020328pm-Hansard-v5n3
Typehansard
Volume / chapter20020328pm-Hansard-v5n3
Languageen
Formathtm
SourcePROVINCIAL
Identifier467da2554ac6423d803c1a9633d8e510a64c49b2

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