Second Session, 41st Parliament

(2017) OFFICIAL REPORT

OF DEBATES

(HANSARD)

Monday, September 11, 2017

Afternoon Sitting

Issue No. 12

ISSN 1499-2175

The HTML transcript is provided for informational purposes only.

The PDF transcript remains the official digital version.

CONTENTS

Routine Business

Introductions by Members

Statements (Standing Order 25B)

Response to wildfires and emergency preparedness

J. Rice

Response to wildfires in Cariboo-Chilcotin area

D. Barnett

Steve Erickson

R. Kahlon

Sicamous fire department activities

G. Kyllo

Advocacy and protections for renters

S. Chandra Herbert

Homelessness and street outreach team in Chilliwack

L. Throness

Oral Questions

Impact of projects on jobs and economy

R. Coleman

Hon. J. Horgan

Payment of legal fees in defamation lawsuit

M. de Jong

Hon. J. Horgan

Hon. B. Ralston

M. Polak

Government response to communities and businesses impacted by

wildfires

D. Barnett

Hon. D. Donaldson

Wildfires and reimbursements to emergency vendors

T. Stone

Hon. D. Donaldson

Wildfires and firefighter staffing levels

J. Rustad

Hon. D. Donaldson

Plateau fire and payments to contracted firefighters

C. Oakes

Hon. D. Donaldson

Tabling Documents

Office of the Auditor General, financial statements, 2016-17

Office of the Auditor General, annual report, 2016-17

Office of the Auditor General, An Audit of the Contract for the Family Maintenance Enforcement Program , August 2017

Office of the Auditor General, Understanding Our Audit Opinion on B.C.’s 2016-17

Summary Financial Statements , September 2017

Office of the Registrar of Lobbyists for B.C., Investigation Report 17-02 , lobbyist: Greg Feltmate, March 22, 2017

Orders of the Day

Presentation of Estimates

Budget Debate

Hon. C. James

S. Bond

Introduction and First Reading of Bills

Bill 2 — Budget Measures Implementation Act, 2017

Hon. C. James

Tabling Documents

Budget and fiscal plan 2017-18 to 2019-20, September update

Government's service plans and strategic plan 2017-18 to 2020-21, September update

MONDAY, SEPTEMBER 11, 2017

The House met at 1:34 p.m.

[Mr. Speaker in the chair.]

Routine Business

Prayers.

[1:35 p.m.]

Introductions by Members

Mr. Speaker: Good afternoon, everyone. On behalf of all members assembled, it is my

pleasure to welcome our guests to the House. Thank you for joining us

today.

Further, it is my pleasure to welcome a special guest, a visiting

Table Officer who is part of the parade this afternoon. With us in this

House this afternoon is David Wilson, Clerk of the House of Representatives

in New Zealand. David is on a two-day attachment to the Legislative Assembly

of British Columbia. The visit is one of a continuing series of attachments

whereby the Legislative Assembly hosts Clerks from other

jurisdictions.

Please join me in welcoming David to British Columbia and to our

House.

Statements

(Standing Order 25B)

RESPONSE TO WILDFIRES

AND EMERGENCY

PREPAREDNESS

J. Rice: With the provincial declaration of emergency passing the two-month

mark, I want to acknowledge the extraordinary outpouring of support we

have seen across the province. As of this morning, there were over 4,000

people under evacuation order and a further more than 10,000 people on

evacuation alert due to wildfire. There are currently 168 wildfires

still burning across the province with six new fires reported yesterday.

Over one million hectares of forests and lands have burned.

The Red Cross, firefighters, the Canadian military, emergency

personnel from across the country and the globe have put themselves on

the line to help other people. Public servants from all ministries have

stepped away from their regular jobs to lend a hand to communities in

need. Communities, some of which were otherwise unaffected by this

emergency, have opened reception centres, group lodging facilities and,

in many cases, their homes to evacuees in need. The people of British

Columbia cannot thank you enough.

This wildfire season and the historic flooding earlier this summer

have been unparalleled in so many ways. As the wildfires continue to

displace thousands and keep thousands more ready to evacuate on a

moment’s notice, we are always looking for lessons learned to help

prepare for future events. And there is no question that there will be

future events. Hurricanes Harvey and Irma are current obvious

examples.

This is a wake-up call for all levels of government and to every

person in this province. We all need to work together, and we all need

to do everything in our power to prepare for emergencies. British

Columbians are resilient. British Columbians are strong. Let’s continue

to be there for each other.

RESPONSE TO WILDFIRES

IN CARIBOO-CHILCOTIN

AREA

D. Barnett: On behalf of my constituents of the Cariboo-Chilcotin, I would

like to recognize all firefighters and first responders who are

currently working tirelessly to protect the safety and homes of British

Columbians across our province.

People in my riding are fearful and have had to live with wildfire

evacuations and evacuation alerts since July 6, and we are still on

alert in some places under order. However, everyone affected takes great

comfort in knowing that first responders are there for them. The people

in my riding of Cariboo-Chilcotin want to acknowledge the tireless work

of firefighters, RCMP, paramedics, search and rescue staff and

volunteers and, especially, those who work around the clock at emergency

operation centres.

[1:40 p.m.]

Now, 2017 has been a devastating wildfire season in British

Columbia, and there is no current end in sight. Since April 1, more than

1,200 wildfires have sparked across the province. In my riding alone, we

have had the Gustafsen, White Lake, 150 Mile House, Hawkins Lake, Canim

Lake, Precipice, Hanceville, Riske Creek, Kleena Kleene, Chezacut,

Plateau south and Elephant fires and more. Thousands and thousands of

hectares of lost forest and rangeland will have serious implications for

our regional economy, especially the forest and ranching industries, and

on our wildlife.

While joint federal and provincial funding of $20 million to

assist the ranching industry is welcome relief, with thanks for the hard

work and dedication of the B.C. Cattlemen’s Association, much more is

needed now to support our tourism and small business industries and

those citizens who have lost everything.

Thank you, all. Keep up the good fight.

STEVE ERICKSON

R. Kahlon: Today I would like to take a moment and recognize a very important

leader in Delta. It was my honour to be on hand to witness Steve

Erickson get inducted into the Vancouver Canadians Broadcasting and

Journalism Hall of Fame.

It all started at a Thursday night hockey game in 1987. Steve was

about to referee the game when staff came down in a panic. They didn’t

have anyone to broadcast the game, so they asked Steve if he could help

them out. The next day, the studio called him in. The listeners

approved. They flooded the station with calls. Little did Steve realize

that 30 years later, he still would be doing this.

Steve once said: “Everyone wants to cover pros, but everyone

starts as an amateur.” He decided he would put special focus on amateur

athletes. As a broadcaster for Delta TV and other organizations, he

passionately promoted young amateur athletes. Over his 30-year career,

he covered NHL, MLB, NBA, CFL, MLS, Team Canada hockey, fastball,

various Olympic teams, cycling and numerous amateur sports throughout

the Lower Mainland.

I was honoured to be at the Vancouver Canadians game on a

beautiful night in Vancouver when Steve got inducted alongside other

broadcasting giants. His good friend Laird had to remind Steve that the

day was about him, because Steve had already conducted three interviews

of other athletes.

Steve has created a legacy that will be difficult to match. If

they thought that inducting him into the hall of fame meant that he

would not be returning to broadcasting, they were wrong. The truth is,

Steve is a community builder. He’s a connector, and he has made our

community stronger because of it. So today I tip my cap to Steve and

will leave you with his signature line: “If you can’t play a sport, at

least be one.”

SICAMOUS FIRE DEPARTMENT ACTIVITIES

G. Kyllo: For the past few months, B.C.’s beautiful interior has been

devastated by a number of forest fires. The largest of these has burned

several hundred thousand acres’ worth of forest. It would likely have

burned thousands more if it were not for the efforts of brave men and

women from around the province.

People like fire chief Brett Ogino and volunteer Joe McCulloch

from my hometown of Sicamous are fantastic examples of this bravery.

These two extraordinary individuals, along with other members of the

Sicamous fire department, were among the first to travel up to the

Cariboo to help with the firefighting efforts. For the members of the

Sicamous fire department, it was never a question of whether or not they

should go. They simply went.

Many of these selfless individuals have full-time positions

elsewhere. For instance, volunteer firefighter Joe McCulloch serves as

the operations manager for the district of Sicamous. But despite their

many obligations at home, when duty calls, their first concern is to go

where they are needed most. I understand that the Sicamous volunteers

also made a positive impression on local residents, as well as other

fire crews working in the area. Their positive attitude, high energy

approach to teamwork and love of loud music helped to provide a degree

of levity to the intense, dangerous and demanding job at

hand.

With that mind, I would like to take a moment to thank the members

of the Sicamous fire department and the thousands of men and women who

are still actively working on wildfires throughout our province. You are

keeping our communities and our people safe, and we are eternally

grateful for your efforts.

ADVOCACY AND

PROTECTIONS FOR

RENTERS

S. Chandra Herbert: Imagine coming home to find a rent increase notice telling you

that you get a 50 percent rent increase. Imagine coming home to learn

that, according to your landlord, your building will collapse unless you

leave soon.

[1:45 p.m.]

Imagine being told false lie after false argument after falsity to

try and push you out of your home because somebody thinks they can make

more money at it. Well, those are realities in my community.

One building I’m working with right now is facing, potentially, 50

percent rent increases — or at least that’s what the landlord would have

them believe. Now what has happened? Advocates have stepped in.

Advocates have always stepped in. These stories I’ve been telling this

House for years, but one constant through these stories is the advocacy

of neighbours, the joining together of neighbour to neighbour to stand

up for their community — for their right to live in a home that they pay

their rent on, that they do the right thing for — to stand up to make

sure that the law actually works for them.

The West End is full of advocates, and today I want to say thank

you. Advocates are often ignored, often forgotten — not the ones that

are put out in the front. Often it’s politicians in the front, and it’s

advocates in the back, in many cases. But I want to say thank you,

because so many people in every one of our communities get helped by

people in this selfless way. They’re not looking for anything for

themselves. They’re just looking so that their neighbour can live in

peace and enjoyment in their community.

One of those advocates, who I’ve been working with here for over

ten years now, is here in the House: Sharon Isaak. She is an incredible

woman who helped found Renters at Risk and has been leading the way in

calling for residential tenancy reform for years. I want to thank her

personally.

But it’s not just her, of course. We have the Tenants Resource and

Advisory Centre. We have Access Pro Bono. I’m sure every one of you

could name people in your communities who’ve knocked on your doors,

banged on your windows, held protest rallies in front of your offices —

or will soon.

I want to say thank you again, advocates — not always the easiest

to work with but always the best to have in our corners. Thank you,

advocates.

HOMELESSNESS AND

STREET OUTREACH TEAM IN

CHILLIWACK

L. Throness: Recently I had the privilege of meeting with 16 members of the

street outreach team in Chilliwack. I learned a lot during the morning I

spent with this great group of people. I learned that homeless counts

don’t capture everyone, because the numbers rise every summer. We now

have up to 400 homeless in Chilliwack, and the numbers are

increasing.

I learned that the security service hired by the city attends

20,000 calls per year, not including RCMP calls. Homelessness carries

with it much crime and every species of injustice against the weakest,

the young and the elderly homeless. There is increasing violence on our

streets. I learned that 70 percent of the homeless are addicted to drugs

or alcohol and that 17 lives have been lost to overdoses so far this

year in Chilliwack, despite the team’s strenuous efforts to apply

life-saving remedies.

Today I want to thank the outreach team — those from the Salvation

Army, Ruth and Naomi’s, the Ann Davis Society, Fraser Health, Pacific

coastal resource society, MQHS, Xolhemet and Griffin Security, who every

day put their own comfort and sometimes their own safety on the line to

help the homeless in Chilliwack.

But I also learned that there is hope. Once emergency services are

provided, a continuum — starting with shelter, followed by long-term

residential treatment and then permanent housing — raises the chances of

beating addiction by 80 percent. This year, the government installed new

shelter beds, granted more rental subsidies, funded 115 affordable

housing units and provided health supports in our city.

What we need from our new government and its minister dedicated to

addictions and mental health is a completion of that continuum, which

will get people off drugs and into a positive, stable lifestyle. In the

coming months, all members of this House will look expectantly to our

government for effective solutions, not only for Chilliwack but across

our great province.

Oral Questions

IMPACT OF PROJECTS

ON JOBS AND

ECONOMY

Mr. Speaker: Leader of the Official Opposition.

R. Coleman: Thank you, Mr. Speaker. I can admit that I never expected those

words to be related with me in the chair.

We all agree that British Columbians should all benefit from the

strong economy, but this prosperity depends on strong investment in our

province and its people. That is why it’s troubling that, so far, this

government has focused on killing projects and driving investment out of

British Columbia.

First it was Pacific NorthWest LNG. Their vigorous opposition to

the project has cost our province billions in investments, thousands of

well-paying jobs. Many of those jobs would have been given to First

Nation communities and their youth for a brighter future.

[1:50 p.m.]

Next up, it was a haphazard, rushed review for Site C, followed by

an attempt to use the courts to kill Kinder Morgan. Now they’ve

cancelled the Massey Tunnel replacement project, killing more jobs and

leaving commuters stuck idling in traffic.

My question for the Premier. It appears that he’s got a list of

projects in mind, so what’s the next project that would be

killed?

Hon. J. Horgan: I thank the member for his first question as Leader of the

Official Opposition. I appreciate that he would have wanted to focus on

Pacific NorthWest LNG right off the top. But if I’m not mistaken, they

cancelled their project in the interregnum between that government and

this government. So in terms of timing, I believe market forces — and I

think many members on that side of the House will be familiar with

market forces — were more of a determinant than who was sitting here or

who was sitting there.

With respect to a strong economy, all British Columbians want to

see our economy firing on all cylinders for all British Columbians — not

just a select few, not just those who got to the front of the line, but

everybody. That’s why we’re focused on making sure that we have

education programs in place so that we can have the most trained

workforce possible so we can attract more private sector investment.

That’s what we intend to do in the days and weeks and months and years

ahead.

Mr. Speaker: The Leader of the Official Opposition on a

supplemental.

R. Coleman: The Premier is correct. It was during interregnum when this

decision was made. What he doesn’t know is that at the table with the

CEOs was a letter sent by the Leader of the Opposition and the now

Environment Minister trying to stop the Canadian environmental

assessment certificate process when they were in opposition. It was

there in front of them when they made that decision.

The projects cancelled by this government would have meant

billions in investment, but most importantly they meant thousands of

jobs for people across B.C. The Site C project — the government review

is threatening that 2,600 people could lose their jobs. This includes

over 150 people, workers, from the communities across Vancouver Island,

including seven of these pink slips that will be handed out to the

hard-working people of Sooke, the Premier’s own backyard.

A thousand more jobs will be lost through the government’s

irresponsible attempt to kill Kinder Morgan, and on top of that, the

cancellation of the Massey Tunnel replacement project takes out another

9,000 jobs.

When will the Premier stop killing projects and jobs, end reviews

and cancellations and focus on creating jobs for British

Columbians?

Hon. J. Horgan: I will remind the member, who was at one time responsible for B.C.

Hydro, that every major project conducted by B.C. Hydro going back to

the 1970s and the 1980s had to go through the B.C. Utilities Commission

to get approval to proceed — until the Site C project.

So I’ll take the advice from the member, and I’ll put it in my

file, and I’ll take a look at it as time goes by. I’ll advise members on

that side of the House that the reason that the Utilities Commission was

created, not by Dave Barrett but by Bill Bennett, was to protect

ratepayers, who have seen a 70 percent increase in their hydro bills on

the watch of this government.

The Utilities Commission was put in place to protect British

Columbians from governments that made political choices rather than good

policy choices. That’s why we’re at the Utilities Commission, and it’s a

good thing for all British Columbians we are.

Mr. Speaker: The Leader of the Official Opposition on a

supplemental.

R. Coleman: This could be fun.

I will remind the Premier today that there’s a dam for $1.2

billion being improved on Vancouver Island and another one for $900

million at Ruskin in the Fraser Valley that were ignored by the previous

government back in the 1990s for upgrade as they needed to be dealt with

for seismic and other…. And they’re actually going to bring more power

onto the grid.

The Premier once said as an opposition leader that his number one

priority would be “jobs and the economy.” Unfortunately, that all

resulted in empty rhetoric in the throne speech that is simply not good

enough. In just two months, small business confidence in British

Columbia has gone from highest to near the bottom in the

country.

Much of B.C. is facing an economic crisis due to an intense

wildfire season. People are losing their businesses, they’re losing

their jobs, and they’re losing their future opportunity. That’s not the

fault of anyone. Fires are fires. Disasters are disasters. But it’s a

fact.

[1:55 p.m.]

Premier, you need to step up and say yes to projects that will

help rural British Columbia, which is suffering so badly today from this

huge, huge fire season we’ve had this year, and help those communities.

Again to the Premier and to your junior partner from Oak Bay–Gordon

Head: you have both put a giant sign on British Columbia that says: “No

investment, no jobs” — a sign that our province cannot accept. Will this

be the trademark of your government?

Hon. J. Horgan: It took three questions to bring up the 1990s. I thought I’d get

it on the first one. It was still in the first package.

Interjection.

Hon. J. Horgan: Thank you very much. I appreciate again the minister’s — the

member’s — concern, but I want everyone in this House and everyone in

British Columbia to know that all of us are passionately concerned about

the horrific wildfire season we’ve had. I think that goes to every

corner of this place, and I know that the minister — or the member — is

genuine when he says that.

Interjection.

Hon. J. Horgan: I’ll keep going back and forth. As long as you keep saying

Premier, that’s good by me.

But the first thing I did upon being sworn in as Premier was go to

Ottawa and go to Washington to fight for resource jobs, to fight for

forest jobs right across this province. The government that we replaced

chose not to do that. I got a meeting with the Secretary of Commerce and

the trade representative on the file, made the case that British

Columbia are fair traders — we’re free traders — and our forest industry

is second to none.

We met with the building association in the United States, who

said the best product that they can find to build houses in the United

States comes from British Columbia. And after the terrible hurricane

season we’re currently experiencing, they’re going to be lining up for

our B.C. softwood. That’s why we need a deal, and I’m going to work hard

to get one, not just for this side of the House but every side of the

House.

PAYMENT OF LEGAL FEES

IN DEFAMATION

LAWSUIT

M. de Jong: I have a question for the Minister of Jobs — job loss might be

more accurate to this point. A question for him.

I’ll begin by congratulations on the appointment and

congratulations for setting a record. Our research department is getting

up and running, so I can’t pledge an exhaustive search, but we haven’t

found another example of a minister who in his first public

pronouncement managed to make statements that have led to lawsuits being

filed against him, the Premier and other members. Can’t find an

example.

But that is what happened when the minister chose to purposely

attack a public servant, Gordon Wilson, and make accusations that were

inaccurate, misleading and demeaning.

It’s a straightforward question for the minister. Are public

dollars being expended to defend the minister and others in the

government with respect to the reckless and irresponsible statements

that he made that have led to this lawsuit?

Hon. J. Horgan: Surely the hon. member, who is a QC, will know that this issue is

before the courts, and we couldn’t possibly interfere. I will also say

that with the vast experience over the past 16 years of utilizing the

indemnity policies in place, this government doesn’t need an answer to

that question.

Mr. Speaker: Member, just to caution you against further line of questioning on

that matter, as the issue is before the courts.

M. de Jong: I will, as always, take your guidance, Mr. Speaker.

[2:00 p.m.]

Look, I understand that the minister is hesitant to be drawn into

this. I should also say this. He is not the first person to put the puck

in his own net the way he did. He might be the first person to do it on

his first shift in his first game. I think it’s a defining moment,

though, for the minister and for the government.

The House is full. We are here on a day dedicated to assessing and

debating the expenditure of public dollars. For 12 years, the minister

has purported to be an advocate of openness and transparency. Simple

question — yes or no. Are public dollars or the taxpayers on the hook

for defending the minister’s incompetence?

Hon. B. Ralston: I thank the member for the question. At this point, no.

M. Polak: “At this point” is an interesting qualifier, and let me be clear.

This question is really the very most simple. Nobody is asking the

minister to comment on the merits of the case. Nobody is asking the

minister to comment on any of the details around the accusations. Just

simply remove the qualifier, and will the minister commit to this House

that not just at this time but at a future time British Columbia

taxpayers will not be on the hook for his ill-considered

remarks?

Hon. B. Ralston: As I’ve said before, at this point, no.

M. Polak: Well, I’m disappointed. I’m disappointed because it’s a very

simple thing for the minister today in this House to give us some

assurance that not only is it a matter of not at this time but that, in

fact, he is committed to ensuring that the comments he made will be

defended not by British Columbia taxpayers, not by those who have worked

hard to ensure that indemnity and qualifications for it result from

activities in a minister’s line of duty — not for comments that are made

simply off the cuff, off the top of one’s head, and certainly not in

line with the minister’s duties.

I put it to the minister again. Remove the qualifier. Tell us

today in this House that it’s not just at this time no but that it will

always be no.

Hon. B. Ralston: I believe I’ve answered the question.

GOVERNMENT RESPONSE TO COMMUNITIES

AND BUSINESSES

IMPACTED BY WILDFIRES

D. Barnett: We are still grappling with one of the worst wildfire seasons in

our province’s history. With the season expected to last for at least

another month, British Columbians need to know that their government is

there for them. The Premier’s own task force, appointed to deal with

wildfires, didn’t even include the Minister of Agriculture. I guess

that’s how much the government cares for our ranchers.

My question is to the Minister of Forests. In the past, during

economic crisis, government deployed economic recovery teams to regions

that needed them. The minister is responsible for these now. When will

they be deployed?

Hon. D. Donaldson: First, I want to say to the people of the Interior and across the

province affected by the wildfires that our thoughts are with them. It’s

been an unprecedented year. Thankfully, with the help of the B.C.

Wildfire Service, no lives have been lost, and the structural damage,

although significant for those directly impacted, has been

limited.

[2:05 p.m.]

My thoughts are with those people, and my thanks to the B.C.

Wildfire Service and emergency responders for the amazing job they’ve

done.

We are still there, managing the wildfire situation across the

province, ensuring public safety is paramount. We are there working with

the recovery in communities not just in the Interior but the southeast

and across the province. We’ve worked in the tourism sector, the

agriculture sector, in forestry and small business, and we will continue

to do that, to provide support, so people can rebuild and recover from

these fires.

Mr. Speaker: The member on a supplemental.

D. Barnett: This summer — I will repeat — northern and central British

Columbians were undoubtedly some of the hardest hit because of wildfires

and the actions of this government. After seeing homes and businesses

destroyed by wildfire, British Columbians need a government who will be

there for them, who will be there to help them rebuild.

My question, again, to the Minister of Forests. He is responsible

for economic recovery in these regions. Have these teams been dispatched

to hardest-hit regions, and if not, why not?

Hon. D. Donaldson: Thank you for the question. I know the member has availed herself

of the opportunities that we’ve provided — again, unprecedented

opportunities — to have direct briefings from ministry staff and is able

to access that information through the daily calls that we have provided

with her and other opposition MLAs who’ve been affected by the

wildfire.

On the agriculture front, as she well knows, ourselves, along with

the Ministry of Transportation, were able to provide $6 million in

funding almost immediately to impacted ranchers around fencing. Just

recently, just last week, the Agriculture Minister and myself met with

nine federal ministers. Out of that meeting came a $20 million

commitment to assist impacted ranchers in her constituency and elsewhere

across the province.

We’ve also organized our response into four theme areas: people in

communities, the economy, the environment, and infrastructure and

reconstruction. We have members of my ministry as well as other

ministries on the ground doing that work as we speak.

WILDFIRES AND REIMBURSEMENTS

TO EMERGENCY

VENDORS

T. Stone: Small businesses affected by the wildfires are suffering because

of this government’s disorganization. Harold’s Restaurant in Kamloops is

on the government emergency services vendors list, and they’re owed

almost $40,000 in vouchers submitted up to two months ago.

This small, family-run business is one of many that has stepped up

to assist evacuees, and now the business is struggling because this

government is not paying who they owe. Harold’s is now moving to take

themselves off of the emergency services vendors list.

My question is to the Minister of Forests. Why is your government

not paying emergency vendors in a timely fashion?

Hon. D. Donaldson: Thank you for the question. We’re very familiar with the fire

situation, how it’s impacted the Kamloops area. The Premier and myself

and the Minister of Public Safety have visited Kamloops. I’ve been to

Kamloops four different times over the last six weeks. We’ve met with

people in the evacuation centres. We’ve met with regional district

representatives.

The primary focus of my ministry and the people who fight

wildfires, the B.C. Wildfire Service, is public safety and protection of

infrastructure. The fire season is not over yet, and it was an

unprecedented fire season, as the member well knows. Over one million

hectares have been consumed. That’s twice the size of P.E.I, for

instance.

[2:10 p.m.]

The primary focus is on public safety, and that’s been the focus

to this point. Our ministry is dealing with the backlogs that have

arisen, because of the focus on public safety, with billing with outside

contractors. They’re taking that backlog up as it presents

itself.

Mr. Speaker: The member for Kamloops–South Thompson on a

supplemental.

T. Stone: Ensuring public safety and fighting the fires should have nothing

whatsoever to do with the government’s obligations to pay their bills. I

know the minister might find it difficult to understand, but $40,000 is

a heck of a lot for a small business — to be owed by anyone, let alone

their own government.

Harold’s Restaurant is experiencing serious financial hardship as

a result of the government’s delays in paying their bills. During the

last major wildfire season back in 2003, Harold’s was paid by the

government as quickly as two weeks after submitting vouchers, not the

two-months wait that they’re now experiencing under this government.

Sadly, Harold’s Restaurant is not alone.

Again, to the Minister of Forests, small businesses have taken

action to support evacuees. When will this government take action to

support small businesses?

Hon. D. Donaldson: Small business is the backbone of rural communities. I’m well

aware of that. In the area I represent, they are. The regular calls that

we provide with the members of the official opposition — I see that

requests have come from the member from Cariboo….

Interjections.

Mr. Speaker: Members, we will hear the minister’s response.

Hon. D. Donaldson: I see that on these calls, requests for information and to raise

issues on a daily basis came from the member for Cariboo North, the

member for Fraser-Nicola, the member for Cariboo-Chilcotin, the member

for Prince George–Valemount. I didn’t see this member’s name on that

list. In eight weeks, he had the opportunity to raise this issue, and he

didn’t avail himself of the opportunity. So this was an opportunity that

was lost.

We actually have invested in small businesses since the fire

started, and we’ll be catching up on our backlog with those who are

outstanding in our debt situation.

WILDFIRES AND FIREFIGHTER

STAFFING

LEVELS

J. Rustad: I find it interesting that the member seems to be suggesting that

MLAs need to raise the issue of whether or not a government should be

paying a bill or not. I mean, seriously. There are thousands upon

thousands of bills sitting in the ministry’s office that require

attention.

However, this is an unprecedented season. There’s no question that

across the province, many people have been contributing toward fighting

these fires. According to a CJCI interview on August 25, the B.C.

Wildfire Service estimated that B.C. will lose about 40 percent of its

fire crews as the seasonal contracts wrap up.

CHAN reported on August 18 that this would mean about a thousand

personnel leaving the fire fight, with the majority of these coming, of

course, from the front line. With the fire season, of course, expected

to rage on well into October — if it even ends then — many British

Columbians are worried about what this means.

A simple question to the minister: can you tell the House what

resources are being brought to bear to fill these gaps?

Hon. D. Donaldson: As the member may be aware, the resources that this side of the

House has brought to the wildfire situation on fighting fires alone is

$496 million in this season alone. That’s because we’re very focused on

public safety. Not a single life has been lost, and the actual

structural damage has been limited through the good work of the B.C.

Wildfire Service personnel and the volunteers and the

contractors.

[2:15 p.m.]

It’s true, yes, and accurate that a number of the B.C. Wildfire

Service personnel will be returning to school and other educational

institutes. We have crews, and we’ve worked with the federal government

to bring crews in from out of province and from out of country. We also

have the services of the Canadian military provided through our good

relationship with the federal government.

Mr. Speaker: The member for Nechako Lakes on a supplemental.

J. Rustad: I find it interesting in the member’s response that to fill in the

gap was to shovel money out of the back of the truck. I know the NDP

like to do that, but that won’t stop fires.

To the minister, the B.C. chief fire information officer

characterized this reduction in the workforce as an ongoing concern due

a bit more of the gap than in previous years. We know we’ve had the

military. We know we’ve had people from other provinces. We know we’ve

had people from other countries. All of that has already been in place,

yet we have potentially 1,000 people that are leaving now.

We also know that Oregon and Washington have their own issues and

are also facing those challenges and will need their personnel. B.C. has

already faced a shortage of firefighters in fighting these fires. We

know that the resources are being stretched because it’s such an

unprecedented season. This additional loss of front-line personnel will

only exacerbate the prioritized system for fighting these fires and may

result in some of these fires being left unchecked.

People can’t afford to be pushed down this government’s priority

list. They need to know that they have protection and that help will be

there. It’s a simple question. Where will the 1,000 extra people come

from to help fight these fires?

Hon. D. Donaldson: From the answer I heard from the member opposite, it was his

suggestion that we spend less money on fighting fires in this province.

In a time of unprecedented…. Unbelievable. We have spent the money that

needs to be spent. The people in the B.C. Wildfire Service, the experts,

will make the decisions that they find will address the issues of

personnel on the ground, and we as a government are there to support

them.

PLATEAU FIRE AND PAYMENTS

TO CONTRACTED

FIREFIGHTERS

C. Oakes: Cariboo North has been significantly impacted by this summer’s

wildfires. One particular fire, the Plateau fire, is now the largest

fire ever recorded in British Columbia’s history. To put it in

perspective, it is almost the size of Prince Edward Island. Supporting

the B.C. Wildfire Service have been industry and First Nations

heavy-equipment contractors. These contractors have been vital in

ensuring the support of the B.C. Wildfire Service.

One such group is the Nazko Economic Development Corp. The

province currently owes them a half a million dollars. To the minister,

their bravery has left them with significant cash flow challenges. When

can they expect to see payment?

Hon. D. Donaldson: The Plateau fire — the member is right — is the largest one that

we have in the province. It was an amalgamation of several complexes

that came together and has burnt an incredible number of hectares, over

500,000 hectares.

We are working with the Nazko. I met with them last week at the

First Nations leadership gathering. We’re working on the tourism, the

agriculture, the forestry and the small business aspects of the affected

communities. And we’re working with the federal government to ensure

that the funding is there for the rebuilding and reconstruction in that

area of the province.

[End of question period.]

[2:20 p.m.]

Tabling Documents

Mr. Speaker: Hon. Members, I have the honour to present the following

reports.

Office of the Auditor General — Financial Statements,

2016-17 ; Annual Report, 2016-17 ; An Audit of the

Contract for the Family Maintenance Enforcement Program ; Understanding Our Audit Opinion on B.C.’s 2016-17

Summary Financial

Statements .

Office of the Registrar of Lobbyists — Investigation Report

17-02 , lobbyist: Greg Feltmate.

Orders of the Day

Hon. C. James: I move that this House, at its next sitting, resolve itself for this

session into a committee to consider the supply to be granted to Her

Majesty.

Motion approved.

Presentation of Estimates

ESTIMATES OF SUMS REQUIRED

FOR THE

SERVICE OF THE PROVINCE

Hon. C. James presented a message from Her Honour the

Lieutenant-Governor: Estimates of Sums Required for the Service of the

Province for the fiscal year ending March 31, 2018, and a supplement to the

estimates for the fiscal year ending March 31, 2018, recommending the same

to the Legislative Assembly.

Hon. C. James moved that the said message and the estimates

accompanying the same be referred to the Committee of Supply.

Motion approved.

Hon. C. James: I move, seconded by the hon. Premier of British Columbia, that

the Speaker do now leave the chair for the House to go into

Committee of Supply.

Budget Debate

Hon. C. James: I want to begin by acknowledging that we’re on the traditional

territory of the Songhees and Esquimalt people and thank them for the

ability to meet and work on their land.

I’m pleased to rise today to present Budget 2017 Update, putting us on

a path to build a better B.C. for everyone.

It was clear in the results of the last election that the majority of

British Columbians were frustrated about the direction the province was

taking. They didn’t see their priorities reflected in the decisions being

made.

Now, along with our colleagues in the Green caucus and across the

floor with the official opposition, we have a real opportunity to do things

differently. I look forward to working with all members of this Legislature

on the plan we have to make life better for the people of this

province.

We’re a new government with a clear vision. You heard in the throne

speech that we’ll put the focus of government back where it belongs — on the

people of this province. You heard that we’re going to work to change the

way governments are elected and how political parties receive donations so

that our institutions work better and reflect the will of all British

Columbians.

You heard that our government is committed to working with Indigenous

communities towards lasting reconciliation, embracing the United Nations

declaration and the Truth and Reconciliation Commission.

You heard that our government will make life more affordable, deliver

the services people count on and create a strong, sustainable economy that

works for everyone.

This budget today is a road map to support those priorities. It’s a

budget that puts people first. It takes important steps to help meet some of

the most urgent needs and sets a new course where a strong economy works for

the many, not just the few.

For the past 16 years, we’ve seen children and parents struggle to get

supports, seniors who can’t find the care they need, families unable to

afford housing, and businesses that can’t find enough staff because the

people can’t afford to live in the community they work in.

[2:25 p.m.]

We’ve seen increasing fees, people paying more while getting less.

B.C. has had one of the highest poverty rates in the country. These aren’t

just examples or statistics. These are real families, individuals and

businesses struggling to get by because of the choices made over the last 16

years.

As Minister of Finance, I’m going to work with my colleagues to carve

a new path, where everyone benefits from our strong economy; where economic

growth goes hand in hand with investing in our greatest resource, people;

where reducing inequality, investing in the services people count on and

supporting a thriving, competitive, innovative economy are inextricably

linked; where addressing climate action is a tool for long-term sustainable

growth and jobs in every corner of our province.

A budget should benefit the people of our province, not just a few at

the top. That’s why we’re committed to making choices that benefit everyone.

We’re committed to strengthening our economy. We want our province to be a

place of strong industries, thriving entrepreneurship, flourishing small

businesses, a well-educated workforce, good jobs and sustainable economic

growth. Most importantly, we’re going to do this by investing in British

Columbians.

A government’s budget does not stand alone. A budget that invests in

people also invests in a strong British Columbia — a province where people

have the tools to thrive, provide for their families, develop skills,

educate themselves and their children and give back to their

community.

In this budget update, we present a strong, responsible fiscal plan

that puts people first, while helping to ensure the long-run fiscal

sustainability of our province.

Our balanced budget for 2017-18 includes total spending of $51.9

billion, total revenues of $52.4 billion, a forecast allowance of $300

million, a budget surplus of $246 million and record levels of capital

spending while maintaining a debt-to-GDP ratio that’s affordable.

British Columbia’s economy is strong, and employment, retail sales,

housing starts and exports have all exceeded expectations. The outlook in

this budget for this year’s real GDP growth is 2.9 percent — prudent,

compared to the outlook provided by the independent Economic Forecast

Council. Private sector forecasters expect B.C. to rank near the top of

provincial rankings in economic growth in 2017 and 2018. We’re competitive

as a province, a destination for investors, and we’re committed to seeing

that continue.

We will also make the targeted investments that British Columbians

have been waiting so long for. It’s the people of B.C. who built this budget

and the people of B.C. who are responsible for our economic success. It’s

our entrepreneurs, our businesses, our workers, our teachers, our newcomers,

our communities and our citizens who built this province. British Columbians

should benefit from economic growth in tangible ways that make a difference

in their lives, every day.

Now, that doesn’t mean we can make choices independent of the very

serious challenges that we all face. Our government is very conscious of a

number of issues that are impacting or have the potential to impact our

province — fiscally, socially and environmentally.

Some of these come as a result of unexpected or unprecedented

developments. For example, this summer, B.C. experienced the worst wildfire

season ever in our history — consuming more than a million hectares of

forest, forcing people in many communities out of their homes. We’re helping

people with the recovery process, including $100 million in support being

administered by the Red Cross for individuals and businesses who’ve been

impacted by evacuation orders. This funding is in addition to contributions

from the federal government.

Fighting the wildfires added more than $600 million in cost pressure

to B.C.’s budget. That’s a critical expenditure, because in these tough

times, British Columbians and their government stand with their communities

and with their neighbours. While we help to manage the current crisis, we’ll

prepare for future fire seasons so we can keep people safe and protect our

communities.

[2:30 p.m.]

In this budget update, we’re funding capital investments of $15

million over three years to upgrade wildfire infrastructure, including

buildings, trailers and air tanker bases. We’re also providing $140 million

for projects focused on wildfire risk reduction, reforestation and wildfire

habitat restoration.

The wildfire response this year involved more than 1,600 firefighters

and support staff, as well as support from across the country and around the

globe. That’s a very real reminder of the vital work that these men and

women do on the front lines.

So as a small gesture of our acknowledgment and gratitude, we are

moving forward with the implementation of the tax credit for volunteer

firefighters and search and rescue volunteers. Thousands of volunteers

across this province will soon be eligible for a $3,000 non-refundable tax

credit. This tax credit was broadly supported in the Legislature last

February and recognizes the hard work and dedication of B.C.’s volunteer

firefighters and search and rescue volunteers who donate their time and

often risk their lives to protect British Columbians.

Another unprecedented challenge we face as a province is the fentanyl

emergency. Already this year, opioid-related overdoses have taken the lives

of too many people. This public health emergency has impacted families and

communities. It’s being tackled by health providers, first responders,

not-for-profit agencies, front-line workers, law enforcement and a host of

other professionals.

In this fiscal update, we’re going to help with this fight. We’re

making a $290 million investment towards the Health Ministry and the

establishment of the Ministry of Mental Health and Addictions. We’re adding

another $32 million to help law enforcement and coroners respond to the

emergency, for a total investment of $322 million over three years to begin

to address this crisis. We’re committed to providing help quickly for people

who need it. And this funding will go towards supporting prevention, early

intervention, treatment and recovery, as well as supporting law enforcement

in their work to keep drugs off the street.

While we face these unexpected challenges at home, others are the

result of uncertainty in the global and domestic market. That’s most notable

in our neighbour and largest international trading partner to the south, as

we deal with the uncertainties around U.S. fiscal and trade policy,

including the softwood lumber dispute and NAFTA. As well, there are ongoing

economic challenges in Asia and Europe. Adding to these global challenges is

the potential for further tightening of Canadian monetary policy and rising

interest rates.

While the province manages events that are unexpected and largely out

of our control, we also face pressures that are a result of government

choices that meant services were strained, leaving many people behind. There

are issues that have been neglected over many years and need to be addressed

as soon as possible — issues like housing affordability, poverty, rising

fees and all the other ways that individuals and families have struggled

over the past year to make ends meet.

Funding for health, education, social programs and other government

services haven’t kept up with demand, which has meant our front-line workers

haven’t been able to provide the level of service that people need and

expect.

Our Crown corporations, like ICBC and B.C. Hydro, are facing serious

structural issues. Addressing these complex problems won’t happen overnight.

But just because some of the issues we face are tough, just because they’re

going to take time to resolve, doesn’t mean we shouldn’t take the first

steps to begin to address them.

This budget update is a start, as we move towards a full budget in

February. It’s a good start, as we begin to address these issues in a way

that benefits all people in this province. Because this is your money. You

worked hard for it. This is your budget. Our government’s first priority is

making life more affordable for people, because a sustainable economy needs

to invest in the people that helped build that economy. Too many people in

our province are struggling to get by.

[2:35 p.m.]

Housing costs throughout B.C. have skyrocketed. People can’t afford a

home in the community that they work in. Renters can’t find a place to live.

Families can’t get into the housing market as they grow, and parents worry

about their kids’ future. This hurts people and the economy. Businesses

can’t attract and retain the talent they need to contribute to our growing

industries. Families build up debt. They’re stuck living paycheque to

paycheque.

Putting people first is our government’s priority, and we’re working

on a comprehensive strategy to improve housing affordability, close

speculation loopholes and reduce tax fraud and money laundering in B.C.’s

real estate.

In this budget update, we’re also taking first critical steps with two

housing initiatives. First, we’re going to invest $208 million over four

years to support the construction of more than 1,700 new units of affordable

rental housing in communities across this province. These units will help

British Columbians who are finding that rent is taking up a disproportionate

amount of their monthly income.

We also know that those without a home deserve and need our

assistance, and we’re committed to working with all levels of government —

federal, municipal, Indigenous — to address homelessness. To get started on

this work, we’re providing funding in this budget for 2,000 modular

supportive housing units for people who are homeless. That funding includes

$291 million in capital spending over two years to construct the units and

another $172 million over three years to operate them and provide 24-7

staffing and support. These housing units are a step towards helping people

who are homeless.

We’re also providing immediate measures to ensure that renters are

treated fairly in this province and that the rights and responsibilities of

both renters and landlords are clearly understood. This budget update

provides an additional $7 million to the residential tenancy branch to

address existing backlogs and wait times for landlord-tenant

disputes.

As we begin to address the issue of affordable housing, there are also

other affordability challenges that we’re acting on, because after 16 years

of waiting for relief, the people of this province can’t wait any

longer.

We’re starting that relief by reducing Medical Service Plan premiums

by 50 percent, starting on January 1, 2018. Starting in the new year, more

than one million British Columbians won’t pay any MSP premiums. Individuals

will save up to $450 per year and families up to $900 per year. This is just

the start of our work as we move towards a complete elimination of this

unfair cost over the next four years.

Those on income assistance and disability assistance also, quite

literally, couldn’t afford to wait any longer for meaningful increases to

their rates because they’ve already waited more than ten years. So starting

with the cheque that arrives on September 20, people on income assistance

and people on disability assistance will receive an additional $100 a month.

That’s just a beginning to relieve some of the pressure, and that’s just the

start of our work.

We’re also committed to fighting poverty. We’ve created a ministry and

a parliamentary secretary tasked with finding solutions to reduce poverty in

B.C. After years of being the only province without a poverty reduction

plan, I’m proud to say that today’s budget update includes the initial

funding needed to develop for British Columbia a comprehensive poverty

reduction plan. This also includes designing a basic income pilot project

that will test its effectiveness in reducing poverty and improving health

and employment outcomes.

[2:40 p.m.]

Reducing inequality is also why we’re creating a fair wages commission

as we move towards a $15-an-hour minimum wage for British Columbia. The fair

wages commission will help this province’s lowest-paid workers receive a

fair wage, while working with businesses on how to transition in a way that

benefits both employees and businesses.

As well, to assist hard-working parents and guardians, to strengthen

our economy and to assist businesses with retention and recruitment, we’re

moving forward with plans to provide a quality, accessible and affordable

child care plan for families. Our first step is moving forward with $20

million in child care investments that will increase our spending on early

childhood development and child care to $330 million this year and support

more than 4,000 child care spaces.

That’s simply the first portion of what’s to come. We’ll be working

with parents and experts to develop and implement a long-term plan that will

make quality, accessible, affordable child care a reality for families in

our province.

Continuing our work to help British Columbians and their families, as

promised, as of September this year, the government has eliminated tolls on

the Port Mann and Golden Ears bridges. It’s a change that will save families

who regularly have to cross the Fraser River an average of $1,500 per year.

Commercial drivers who average one crossing a day will save $4,500 a year or

more. These savings mean tens of thousands of drivers who cross the bridge

every day will have more money in their pockets and more to invest in B.C.

businesses.

While we’re finding ways to make life affordable for British

Columbians and their families, we’re also going to start to rebuild and

strengthen the core services that people count on. The previous government’s

approach of starving services undermines long-term sustainable growth.

Investing in programs and services benefits people as well as a strong

economy, which people are then able to take

part in.

That starts with education. A strong education system is fundamental

to a strong economy; healthy, vibrant communities; and a bright future for

this and future generations. I’m proud to tell you today that we are

confirming funding of $681 million over three years to invest in children

and our education system. These new resources will provide children with

smaller classes and more supports that they need to succeed, including the

hiring of approximately 3,500 teachers.

As well, we’re providing capital funding of $50 million to ensure

space requirements for kids going back to school are addressed. This

investment goes directly to fund the future of our province by finally

starting to provide our school system with the resources it needs to help

our children succeed.

Health care is another area where we’re going to begin to make the

kinds of changes that people have been waiting for. We’re going to start, in

this fiscal update, with a $603 million increase over three years to the

base budget for the Ministry of Health, with $265 million of that going to

address the fentanyl emergency and the remainder addressing other pressures

in the health care system.

Incremental to these amounts is $25 million to establish the new

Ministry of Mental Health and Addictions, which will provide the key

strategic leadership in developing a seamless, coordinated mental health and

addictions system in our province.

Also, $32 million is added for law enforcement to disrupt the drug

supply chain, provide more naloxone training and help police personnel deal

with fentanyl exposure, as well as the pressures being faced by the B.C.

Coroners Service as part of this public health emergency.

We’re also going to provide consistent funding to the therapeutics

initiative — $2 million a year to ensure the effectiveness of new drugs,

better serve our citizens and reduce costs to our health care

system.

To help benefit our seniors, the Ministry of Health will receive $189

million over three years through our B.C.-federal agreement to help improve

access to home and community care.

[2:45 p.m.]

To help children from low-income families achieve good health

outcomes, $15 million over three years is provided for the healthy kids

program. This program already provides basic dental and optical care to

children in low-income families, and with this new funding, these children

will now have access to hearing assistance benefits and improved access to

dental services.

This is critical. The health and welfare of our children are important

if we want all of B.C.’s children to have a level playing field to succeed

in life. That’s why this budget update reconfirms the $312 million over

three years to the Ministry of Children and Family Development for critical

services and supports, including additional front-line staff and youth

mental health workers.

We need to start the rebuilding process necessary to strengthen our

child protection and support systems and begin responding to the

recommendations from Grand Chief Ed John, reducing the number of Indigenous

children in care. This government will work in partnership with families,

Indigenous communities and other levels of government to ensure that we meet

our responsibility to protect and support our most vulnerable

children.

While investing in the services that people count on, building a

sustainable economy for everyone also means investing in our roads, our

schools, our transit, our housing and our hospitals. Our budget includes

$14.6 billion in capital spending over three years. These investments add

critical infrastructure to our communities and create jobs in every corner

of our province.

To benefit from these jobs, it’s vital that we tap into the talent and

success of every British Columbian. We’re going to help people thrive by

removing the roadblocks towards success. I’m proud that this budget update

with an immediate $19 million commitment.

When the previous government imposed fees for these programs,

enrolment dropped over 30 percent on the post-secondary side alone. That’s a

real loss for our province, because if people can go to school, it benefits

all of us. As of September 1, all adults are enrolling in approved

post-secondary and K-to-12 adult basic education and

give individuals opportunity so that they can advance in their workplace and

better support their families, it’s an economic advantage for all of British

Columbia.

In that same way, it also makes good economic sense to increase the

amount you can earn while on social assistance, as we’re doing in this

budget update. Increasing earnings exemptions by $200 a month allows people

to work more, build experience, better support their families and find a way

towards sustainable employment.

While we’re helping people find their way to the workforce, we’re also

helping to keep businesses and industries thriving so that the jobs are out

there for individuals. We’re going to start with the innovation commissioner

and the emerging economy task force, exciting measures set forth by our

colleagues in the Green caucus.

With the commissioner, we’re going to look at how we can best support

the success of our technology sector. The innovation commissioner will be

both advocate and ambassador for B.C.’s tech sector. The emerging economy

task force will be charged with developing made-in-B.C. solutions and will

look at how government can encourage innovation and sustainable industries

to drive economic growth in B.C. in the 21st century.

As we work to build our sustainable economy, we’re also doing valuable

work to make our tax system fairer, where everyone contributes and everyone

benefits from the services we all rely on. We’re following through on our

commitment to raise the corporate income tax rate by one percentage point to

an overall 12 percent, comparable to Manitoba, Saskatchewan and Alberta. And

we’re getting rid of the tax break that the previous government gave the top

2 percent of income earners. We believe, again, everyone should contribute

because everyone benefits from the services and supports in British

Columbia.

[2:50 p.m.]

Supporting a sustainable economy also means recognizing our

responsibility to address global climate change. Additional climate action

measures will come over the next number of months as we work with our

colleagues in the Green caucus and in the official opposition, but we start

in this budget update by following through on our commitment to increase the

carbon tax by $5 per tonne, starting April 1, 2018.

We’re also ending the requirement for the carbon tax to be

revenue-neutral, and we’re going to use carbon tax revenue to support

families and to fund green initiatives to address our climate change

commitments. Our plan is an important step to get B.C. back on track to meet

our targets to cut carbon while investing additional revenue in programs and

services that help reduce emissions.

This budget update also takes steps to make businesses more

competitive. Starting this fall, we’re moving forward to phase out the

provincial sales tax on electricity — a move that businesses across B.C.

have long asked for as a way to increase their competitiveness as they

invest in new technologies and create more jobs. These savings will support

businesses in every corner of the province from forestry to construction,

mining to agriculture. Not only is this a competitive move to help B.C.’s

businesses; it’s also going to encourage a transition to low-carbon energy

sources like electricity, helping to lower B.C.’s carbon

footprint.

We’re also supporting much-needed economic growth in small and rural

communities in this budget update with the restoration of the tax benefit

for credit unions. Credit unions are a key part of communities, helping them

thrive, while retaining profits in the hands of their members and allowing

these dollars to be reinvested in local economies. That’s why we’re not only

restoring this benefit; we are making this benefit permanent for credit

unions.

We know that small businesses are a critical part of B.C.’s economy,

providing jobs and adding to sustainable, long-term economic growth

throughout this province. To further help our small businesses thrive, we’re

lowering the small business corporate income tax rate from 2.5 percent to 2

percent.

This budget update takes key steps. We know there are many more

pressures in the system that we need to address. In February, we’ll table

our government’s full budget, where we’ll continue to address these

pressures and build a better B.C. for everyone.

We believe that government should work for people, and a budget should

reflect that. This province belongs to all British Columbians, and when it

comes to B.C.’s finances, this is the public’s money. You worked hard for

it. This is your government, and this is your budget. We want the choices

that we make as a government to reflect your voices, your needs and your

priorities.

How do we do that? We start by listening. We’re listening to

individuals and families who have told us for years that they need more to

help make ends meet. We’re listening to people who have struggled to access

the services that they need. We’re listening to Indigenous communities and,

together, charting a path towards reconciliation. We’re listening to

business owners, to communities, to post-secondary institutions, who have

said they need more help to ensure our economy is strong, with people who

have access to the training and education they need.

We’re going to listen in the upcoming budget consultations, and we’ll

keep listening as we move forward. Today, we’re just starting. We’re laying

the foundation for a better B.C. In February, we’ll build it even

further.

To British Columbians, I want to say this: this is your province; we

are your government. Today, I’m pleased to table a budget update that takes

a first step towards your budget priorities.

[2:55 p.m.]

S. Bond: Mr. Speaker, I am very pleased to be able to make a few brief remarks

today, on behalf of the official opposition, in response to the budget

update tabled by the government.

I’d like to begin by congratulating the Minister of Finance and Deputy

Premier on her appointment. This is an absolutely critical role, and I know

that her experience will be an asset to her as she assumes responsibility

for managing the finances of our province. I also have no doubt that the

Finance Minister has quickly realized that this is a complex,

pressure-filled job that will require a great deal of hard work and

discipline to balance the desire to spend with the need to be able to pay

for that spending.

Before and during the recent election campaign, outlined in the throne

speech on Friday and today captured in the budget, the minister and her

colleagues have laid out an aggressive spending plan. The list of planned

expenditures is long and, undoubtedly, will continue to grow. In the days

and the weeks ahead, the cabinet, the caucus, certainly your vocal coalition

party members in the Green Party, British Columbians and, yes, even the

opposition will come with more and more funding requests. The list will

grow, and the demand will be relentless.

I think that most members of this Legislature would agree that British

Columbians sent us a message that they wanted to see additional investment

in some priority areas. It is important to consider those, but I don’t for a

moment believe that British Columbians endorsed endless spending nor

providing a blank cheque to government.

While this budget update contains an ambitious spending plan, what

concerns us the most is what is not reflected in the throne speech or this

budget update. What is missing is a plan to sustain and grow the economy and

create the jobs that British Columbians need and deserve. The budget

certainly contains a very aggressive spending plan, but it’s missing

one-half of the balance sheet. What’s missing is a plan to generate revenue,

attract investment, expand and increase our export markets to Asia and

beyond.

In fact, this is a budget that is relying on tax increases amounting

to almost $1 billion over three years. This includes the removal of the

revenue neutrality requirement from the carbon tax. It also includes

business shouldering a heavier tax increase over three years — which, the

government claims, will bring us into line with the same tax levels as

Manitoba, Saskatchewan and Alberta. Essentially, that means that British

Columbia loses a competitive advantage that makes our province more

attractive to investors. Most troubling of all: no jobs plan to speak of,

other than a passing reference in the throne speech.

There are few measures to support small business — the economic engine

that drives the economy — other than the reduction of the small business tax

rate of 2.5 percent to 2 percent, which was announced in the previous budget

last February.

With the spending commitments that have been made today, it’s

important to consider the current state of the economy and the financial

state of this province. In June, the former Finance Minister and member for

Abbotsford West proactively released an updated budget status that showed

strong economic and job growth that would result in a $2.7 billion budget

surplus.

[3:00 p.m.]

I certainly don’t recall a positive reaction from the now government

members about that news. In fact, they expressed doubt and skepticism. The

Leader of the Opposition at that time called it merely “distraction and

dangling of issues before the media.” But on August 22, just about three

weeks ago, the Auditor General released the audited public accounts and

confirmed the accuracy of the budget information, 100 percent.

The Auditor General also noted the strength of our provincial economy.

Today this Finance Minister is likely the envy of many jurisdictions in the

country. She and her government have inherited the best-performing economy

in the country. Indeed, the current Finance Minister confirmed that fact

when the public accounts were released on August 22. This government has

also inherited five consecutive balanced budgets, a triple-A credit rating —

the only province other than Saskatchewan to enjoy this rank — and, more

importantly, a solid plan to keep taxes low, attract investment, grow the

economy and create jobs.

The audited public accounts also confirmed that the government placed

a great priority on education spending, on health care and education. In

fact, in budget 27, announced last February, we saw that spending on health

care increased by 2.5 percent, education spending by 2.1 percent. We should

also note that interest costs decreased by $199 million, or 7.1 percent,

over the previous year. That’s because, as a government, we didn’t run

deficits over the past five years, and we’ve been paying down the provincial

debt at the same time.

Upon the release of the audited public accounts report on August 22,

the Minister of Finance had this to say: “The public accounts for 2016-17

show that B.C.’s economy is strong. We’re growing faster than it was

forecast, and we certainly have revenues that were higher than projected.”

The result is a surplus of $2.7 billion.

The public accounts process is designed to look back, to confirm the

province’s fiscal management processes, to ensure that there is an accurate

portrayal of the balance sheet. The $2.7 billion surplus that was confirmed

has been applied to reduce the debt, as is required. But I should remind the

Minister of Finance that there is no guarantee there will be a large surplus

next year, particularly in the face of economic uncertainty. Yet this budget

makes assumptions that rely on a similar economic performance.

Revenues from corporate tax sources depend on a provincial economy

performing in a healthy and supportive investment environment. I’m not sure

the private sector heard that in today’s budget update. What we did hear was

a plan where increased revenue is based on increased taxes. This includes an

increase to the carbon tax, a move that will impact both businesses and

consumers. It will no longer be revenue-neutral.

Uncertainty will reduce investment, job growth and, ultimately, tax

revenues. So with today’s budget update, I can assure you that the official

opposition intends to hold the government to account based on the results

that have been confirmed by the Auditor General. The benchmark has been

set.

British Columbians have worked too hard to restore our province to its

rightful place as the leading economy in this country, only to see that

progress jeopardized by a spending plan that is not supported by an economic

growth or job creation plan. To date, there is little evidence to suggest

that the government has a plan to generate revenue and to grow the economy.

In fact, it’s just the opposite.

While promising a balanced budget, there can be no assumptions about a

second multi-billion-dollar surplus. With rising interest rates and a

potentially softening economy, that is a very unlikely outcome. Add to that

the things you can’t predict, the issues that emerge or deliberate policy

decisions that will have significant fiscal implications that may be unknown

today.

[3:05 p.m.]

There are a few things we know for certain. By cancelling major

investments in our province, this government is jeopardizing thousands of

jobs, both union and non-union. For example, the cancellation of the George

Massey Tunnel replacement project is going to cost 9,000 jobs, and this

budget makes it clear that it is a cancellation, not a consultation. By

doing so, the government continues to sow the seeds of economic uncertainty,

even in its first few weeks in office.

Here’s another example. At Site C, there are 2,600 workers wondering

if the government intends to hand them all pink slips and wipe out the

potential of 10,000 jobs that will be created during

construction.

British Columbia has also been devastated by the worst wildfire season

on record. On August 16, the B.C. Wildfire Service declared that B.C. had

lost more forest land than a previous record set in 1958, and that was a

month ago. Today many of those fires continue to burn, and people continue

to be on alert or evacuation order.

Mr. Speaker, I know that everyone in this House wants to take a moment

to express our profound gratitude to the hundreds of wildfire personnel,

literally from every corner of our province and around the world, who have

fought and continue to keep our province and our people safe. I also want to

recognize my colleagues in those ridings that have been hardest hit. They

have been on the ground every day working to support their constituents and

find them the resources they need to survive.

The costs associated with the fires are mounting, and there is more to

come. The direct and indirect costs will be significant, creating a

financial impact and risk. By saying no to Site C, the NDP and the Green

Party are essentially saying no to 10,000 jobs that will be created during

construction and 33,000 total jobs through all stages of

construction.

Site C is also expected to make a large contribution to the provincial

economy. Over the life of the construction, it will contribute $3.2 billion

to the provincial GDP, including approximately $130 million in the Peace

River regional district alone. Cancelling Site C would also forgo $40

million in tax revenues to local government.

This message of uncertainty is not being sent just to British

Columbians but to investors around the world. Add to those examples the

transfer of construction costs to taxpayer-supported debt with the removal

of tolls on the Port Mann Bridge. That certainly got the attention of

Moody’s Investors Service. In fact, they issued an immediate statement and,

according to their analysts, said: “The government’s plan…is credit

negative, as it will increase taxpayer-supported debt and remove a dedicated

line of revenue for debt repayment.”

The analyst goes on to say that: “We assume this action will be taken

in addition to other actions to be announced in the upcoming September

budget update. Any ratings impact would therefore need to take into account

other possible measures that would be announced at that time.”

In other words, when you take into account the loss of income from

bridge tolls, credit rating agencies are going to be looking at how the

government plans to make up that revenue, either through increased taxes or

decreased spending. This budget makes it clear that it’s increased taxes,

certainly not decreased spending.

People today may not pay a great deal of attention to a triple-A

credit rating — when you have one. They certainly will if we receive a

downgrade. The loss of our triple-A credit rating would mean that more

dollars would be spent on debt servicing instead of being invested in

schools and hospitals or even replacing the Massey Tunnel.

Perhaps, and most interestingly, the most vocal concerns we heard

about the transfer to taxpayer-supported debt came from the leader of the

Green Party, coalition partner, who said this is “profoundly troubling from

a policy perspective,” and that “$4.7 billion will now be moved from

self-supporting debt to taxpayer-supported debt.” Apparently the leader of

the Green Party and Moody’s are on the same page.

The list goes on: cancelling the Massey Tunnel replacement and, with

it, thousands of jobs; taking on legal action to stop the Trans Mountain

pipeline. It will also cost this province thousands of highly skilled,

good-paying jobs.

One of the notable lines from the throne speech was that the

government wants an economy that works for everyone. But that simply can’t

happen if British Columbians are not working.

Today we see that the NDP have delivered a plan to spend. What was

missing from the Finance Minister’s speech was a plan to grow the economy

and create jobs.

[3:10 p.m.]

We had a record surplus in this province because we believed in

growing the economy, and that’s what we stand for on this side of the House.

We believe that the government should be responsible with taxpayers’ money.

After all, it’s not our money. It belongs to taxpayers. That’s why British

Columbians worked so hard to help us balance five consecutive budgets and

why we were on track to pay off our operating debt in just four years. That

is why, since 2004, this province has had seven credit rating upgrades, and

we have one today, for now.

We believe that people work hard for their money, and, like the

members opposite, that the government has a responsibility to leave more of

it in their pockets. That’s why B.C. has the lowest taxes for middle-class

earners in the country. That’s why this budget, with its addition of almost

$1 billion in taxes, makes us ask some very serious questions about the

budget that’s been tabled today.

Finally, we believe in the value of creating jobs that people can

depend on. For the last four years, we have worked every day to support,

encourage and stimulate job creation in our province. We invested in

training, helping people improve their skills and working with employers. We

saw almost 200,000 jobs created since the introduction of the B.C. jobs

plan. That’s what creates a thriving economy.

The Finance Minister and her colleagues have inherited the strongest

economy in Canada, a province that is open to trade and investment, a

leading job creator in this country. But today, the budget that the Finance

Minister delivered bakes in a massive increase in government spending — $3

billion next year alone — but at the same time, it assumes the economic

performance of last year that resulted in a $2.7 billion surplus will be

repeated.

That, Mr. Speaker, is a dangerous assumption in an uncertain world.

NAFTA, softwood lumber, the impact of fires in central B.C., the

cancellation of the George Massey Tunnel, the cancellation of Site C — all

of these create areas of uncertainty, plus this budget update relies on a

substantial increase in forecasted growth from 2.1 percent to 2.9

percent.

Our job is to remind the government that you can’t spend without a

plan that lays out how you are going to pay for it, and that is exactly what

British Columbians deserve to know.

I would like to conclude my remarks today. We’ll certainly have more

to say in the days ahead.

S. Bond moved adjournment of debate.

Motion approved.

Introduction and

First Reading of Bills

BILL 2 — BUDGET MEASURES

IMPLEMENTATION ACT,

Hon. C. James presented a message from Her Honour the

Lieutenant-Governor: a bill intituled Budget Measures Implementation Act,

Hon. C. James: I move first reading of Bill 2, Budget Measures Implementation

Act, 2017.

Motion approved.

Hon. C. James: Bill 2 consists of two parts.

Part 1 includes a number of

provisions that will enable government’s Budget 2017 Update, and

part 2 of the bill amends eight statutes in order to implement the

many tax measures in Budget 2017 Update.

part 1, the North Island–Coast Development Initiative Trust Act

is amended to increase the total amount that may be paid by the

government to the North Island–Coast Development Initiative Trust by $10

million.

The Transportation Investment Act is amended to authorize the

transfer of ownership of the Transportation Investment Corporation from

government to the B.C. Transportation Financing Authority.

[3:15 p.m.]

Part 1 of this bill also includes two transitional provisions. The

first clarifies that certain references to the estimates and other

documents for the ’17-18 fiscal year are those tabled today. The second

provides appropriation for the Transportation Investment Corporation

share transfer, if required, and for the continuation of existing

agreements.

part 2 of the bill, the Carbon Tax Act is amended to increase

the carbon tax rates annually by $5 per tonne of carbon

dioxide–equivalent emissions, commencing April 1, 2018.

Part 2 of the

Carbon Tax Act is repealed, removing the requirement to prepare an

annual carbon tax report and plan.

The Income Tax Act is amended to increase the income tax rate on

income over $150,000 to 16.8 percent from 14.7 percent. The amendments

to the Income Tax Act also reduce the small business corporate income

tax rate to 2 percent from 2.5 percent and increase the general

corporate income tax rate to 12 percent from 11 percent. The dividend

tax credit rates are adjusted accordingly.

The amendments to the Income Tax Act also introduce a volunteer

firefighter and search and rescue volunteer tax credit. The amendments

provide a back-to-school tax credit for the 2016 year only. The

children’s fitness equipment and arts tax credits are eliminated for

2018 and subsequent years. The amendments to the Income Tax Act also

restore the tax benefit for credit unions.

The Income Tax Act is also amended to extend or clarify several

tax credits. The scientific research and experimental development tax

credit is extended for five years. Book publishing tax credit is

extended for one year. The training tax credits are extended for one

year. The mining flow-through share tax credit is extended for one year.

The mining exploration tax credit is expanded to include costs incurred

for environmental studies and community consultations. And

clarifications are made regarding eligibility for the interactive

digital media tax.

The Income Tax Act is also amended to provide administrators with

access to B.C.’s assessment information and to facilitate

information-sharing for the purpose of administering the homeowner

grant. The homeowner grant is amended to facilitate information-sharing

for the purpose of administering the Income Tax Act.

The International Business Activity Act is amended to eliminate

the program, effective September 12.

The Property Transfer Act is amended to increase the

first-time-homebuyers threshold to $500,000.

The Provincial Sales Tax Act is amended to phase out the tax on

electricity. The tax will be reduced to 3.5 percent, effective on a date

to be set in regulation. Electricity will be fully exempt on April 1,

The Motor Fuel Tax Act is amended to exempt natural gas from the

motor fuel tax on locomotive fuel.

And, finally, the Tobacco Tax Act is amended, effective on a date

to be set by regulation, to increase the tax rate on cigarettes to

$49.40 from the $47.80 per carton of 200 cigarettes and to increase the

tax rate on loose tobacco to 24.7 cents from 23.9 cents per

gram.

Hon. Speaker, thank you for your patience. I move that Bill 2 be

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

of the House after today.

Bill 2, Budget Measures Implementation Act, 2017, 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.

Tabling Documents

Hon. C. James: I have the pleasure to rise to table government’s overall strategic

plan and the Budget and Fiscal Plan 2017-18–2019-20 , which together

fulfil the requirements of sections 7 and 12 of the Budget Transparency and

Accountability Act. The budget and fiscal plan also contains the carbon tax

plan required under

section 3 of the Carbon Tax Act and other documents

required under

section 4 of that same act.

I also table, on behalf of the ministers responsible, their service

plans, as required under

section 13 of the Budget Transparency and

Accountability Act. The service plan documents are presented in two binders.

The first binder contains service plans for the Office of the Premier and 20

ministries. The second binder contains service plans for the 26 service

delivery agencies and Crown corporations. The second binder also provides a

listing of organizations that are exempted from the Budget Transparency and

Accountability Act service plan requirements under

section 13 and identifies

three organizations newly exempt, along with the explanations for their

addition to the list.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 10 a.m. tomorrow.

The House adjourned at 3:19 p.m.

The Official Report of Debates ( Hansard ) and webcasts of

proceedings

are available on the Internet. Chamber debates are broadcast on

television.

Copyright © 2017: British Columbia

Hansard Services, Victoria, British Columbia, Canada