2003 Legislative Session: 4th 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)

TUESDAY, FEBRUARY 25, 2003

Afternoon Sitting

Volume 11, Number 15

CONTENTS

Routine

Proceedings

Page

Introductions by Members

Introduction and First Reading of Bills

Miscellaneous Statutes Amendment Act, 2003 (Bill 11)

Hon. G. Plant

Statements (Standing Order 25 b )

Support in Kootenays for 2010 Olympic Games bid

B. Bennett

Mental health centre in Nanaimo

M. Hunter

Fair Pharmacare program

R. Sultan

Personal Statement

Hon. R. Neufeld

Oral Questions

Fair Pharmacare program income-testing model

J. MacPhail

Hon. C. Hansen

J. Kwan

Government action on sea lice in fish farms

G. Trumper

Hon. S. Hagen

Proposed changes to the provincial apprenticeship program

R. Lee

Hon. S. Bond

Petitions

S. Orr

B. Belsey

Hon. C. Clark

Budget Debate (continued)

Hon. J. Reid

Hon. S. Bond

J. Nuraney

Tributes

Canadian Armed Forces

A. Hamilton

Budget Debate (continued)

A. Hamilton

Hon. B. Barisoff

Hon. G. Cheema

I. Chong

Hon. R. Thorpe

Hon. R. Neufeld

[ Page 5025 ]

TUESDAY, FEBRUARY 25, 2003

The House

met at 2:04 p.m.

Introductions by Members

Hon. S.

Hagen: Today we have in the gallery Mr. Ted Brooks, who is from Comox. Ted

is a member of the Comox Valley Airport Commission. Would you all please make

him welcome.

Harris: It's not that often we have someone down from Kitimat, but today

we're joined in the gallery by one of my constituents, Johnny da Silveira. Would

the House please make him welcome.

Hon. C.

Clark: Today in the members' gallery we have some very special guests from

Ireland. His Excellency Martin Burke is the Ambassador of Ireland to Canada, and

he's accompanied today by his wife, Mary Burke. Our government certainly admires

the work that Ireland has done in becoming the Celtic Tiger, and we look forward

to further discussions with both of them.

[1405]

W. Cobb:

With us today — and once again, not often do I get to introduce someone from

my riding — we have some individuals from the Council of Resource Communities.

They're here to help us work on and develop the heartlands strategy. Three of

them are from the heartlands; one of them is not, although he works hard for the

heartlands. It's my pleasure to introduce Mayor Donna Barnett from 100 Mile

House, Mayor Herb Pond from Prince Rupert, Mayor Rick Gibson from Williams Lake

and the one individual not from the heart land, Bruce Rosenheart. Please make

them welcome.

Hon. G.

Abbott: On Saturday I had the pleasure of attending the opening of the

Canada Winter Games in Bathurst, New Brunswick. That opening followed a meeting

of federal, provincial and territorial sports ministers. The real highlight was

to meet Team B.C., which is over 300 outstanding young British Columbians from

61 communities around the province. They are really an exceptional group of

young athletes, and they are led by a mission staff, which by all accounts is

doing a wonderful job — unprecedented in their management of the team and its

issues — and, of course, their coaches, who are similarly doing an outstanding

job for the young athletes in this province.

We have a

website which is unique among the provinces competing. It provides updated

results. It provides team biographies for all the over 300 team members. Most

importantly, it provides an opportunity for MLAs, for the general public, to

provide personalized messages to members of the team from your constituencies.

That website is www.teamBC.org. I know that team is going to make us enormously

proud as British Columbians. New Brunswick is a long ways away, but this gives

us an opportunity to cheer on a great Team B.C.

Hon. G.

Campbell: In the House today is a distinguished group of students from West

Point Grey Academy in my riding of Vancouver–Point Grey. West Point Grey

teacher Ms. Elliott and her colleagues Ms. Gunasekera and Mr. Rollins have just

completed a tour of the Legislature with 67 students in grade 5, and they're now

in the gallery to witness question period. I hope we'll all make them welcome.

Visser: With us today are John and Diane Poleschuck from Campbell River.

John has had a long and distinguished career in the coastal pulp and paper

industry. They're visiting the building today and Victoria for the next couple

of days. I hope the House makes them welcome.

Hon. G.

Hogg: The Queen's Golden Jubilee medal is presented this year to Canadians

who have made outstanding and exemplary contributions to society. The Ministry

of Children and Family Development will be presenting those to some special

public servants who have given so much of themselves over the years to the

people of this province. I'd like to introduce three of them who are here today,

and my colleague has a few other introductions to make.

First, Mr.

Sarf Ahmed is a financial manager with the ministry and seems to know where each

one of those dollars that the ministry spends is. He's also been a volunteer

scrutineer, a translator in ESL for children and a fundraiser with the Canadian

Diabetes Association.

Ms. Lindsay

Setzer has spent a distinguished career at the Maples counselling some of the

most challenged and troubled adolescents in this province. She's overseen the

transition of the Maples to a short-term family- and community-focused program.

Ms. Jane

Wolverton's commitment to children and families in this province started in

1971, when she worked as a social worker for the city of Vancouver. She

developed a particular commitment to and interest in the downtown east side and

has also supervised the lower mainland emergency services during their

transformation to the provincial after-hours program.

I would ask

the House to please congratulate and welcome them.

[1410]

Hon. L.

Reid: I, too, add my congratulations to the individuals who have given in

excess of 125 years to this area of social service policy in British Columbia.

Gus

Assonitis began with the ministry in 1975, an enormous accomplishment, and has

done many, many things during his career with us in terms of children's mental

health and community living for adults with developmental disabilities.

[ Page 5026 ]

Doug Bowen

also contributed more than 25 years of service to this ministry, working as a

social worker, a supervisor, an area manager and an aboriginal negotiator.

Holden Chu

spent much of his career in Richmond, a successful leader in cultural

competency, community dialogue and collaboration.

Riley Hern

was a mentor and innovator in the government social service sector from the day

he was hired in 1965 until his retirement this past March. Indeed, we have

individuals who continue to make an enormous contribution.

Randi

Mjolsness from the ministry spent 23 years, and certainly today, as the acting

director of the children and youth with special needs branch and the autism

initiative branch. Randi is leading the way on new initiatives based on family

choice, self-determination and evidence-based service.

Robin Syme

has been with the ministry for 25 years — a quarter of a century. She was also

responsible for advice on the K-to-12 curriculum as well as developing a funding

model for the social equity programs in the schools of our province.

I would ask

the House to please recognize outstanding public service and join me in

welcoming them to the Legislature this afternoon.

Mayencourt: In the gallery I have a couple of guests that will be joining me

later today at the Queen's Jubilee Medal presentations. These two lovely women

not only have dedicated themselves to my political career but in fact have

supported me for my entire life: starting with my mother, Wilma Palmer, and my

sister Marcie Smith. Would the House please make them both welcome.

Introduction and

First Reading of Bills

MISCELLANEOUS STATUTES

AMENDMENT ACT, 2003

Hon. G.

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

Miscellaneous Statutes Amendment Act, 2003.

Hon. G.

Plant: I move that the bill be introduced and read a first time now.

Motion

approved.

Hon. G.

Plant: I'm pleased to introduce Bill 11, the Miscellaneous Statutes

Amendment Act, 2003. Consistent with our new-era commitment to cut the

regulatory burden and red tape by one-third within three years and revitalize

our economy, Bill 11 includes amendments to several statutes that will remove

205 unnecessary or outdated regulatory requirements and will eliminate red tape.

This bill

amends the following statutes: Agricultural Credit Act; Agricultural Produce

Grading Act; Agriculture, Fisheries and Food Statutes Amendment Act, 1997; Bee

Act; British Columbia Feed-grain Assistance Act; Budget Transparency and

Accountability Act; Cattle (Horned) Act; Dairy Industry (British Columbia) Act;

Emergency Program Act; Evidence Act; Farm Practices Protection (Right to Farm)

Act; Financial Information Act; Freedom of Information and Protection of Privacy

Act; Holiday Shopping Regulation Act; Hotel Guest Registration Act; Hotel

Keepers Act; Livestock Act; Livestock Protection Act; Local Government Act;

Miscellaneous Statutes Amendment Act (No. 2), 1999; Motor Carrier Act; Motor

Vehicle Act; Natural Products Marketing (BC) Act; Public Sector Employers Act;

Science Council Act; Seed Grower Act; Special Accounts Appropriation and Control

Act; Synthetic Food Products Act; Telephone Rural Act; Travel Regulation Act;

University Endowment Land Act; Vancouver Charter Veterinary Laboratory Act;

Water Protection Act.

I will be

pleased to elaborate on the nature of these amendments during the second reading

of this bill, and I commend it to all members.

I move that

the bill be placed on the orders of the day for second reading at the next

sitting of the House after today.

Bill 11

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) SUPPORT IN KOOTENAYS FOR

2010 OLYMPIC GAMES BID

Bennett: I'm speaking again today on the 2010 Olympic Games. I had not

planned to, but I have an intuition, a sense, that there may be a few members

— maybe as few as two or three — who are unaware that this government has

for months been actively engaging the people in the heartlands of this province

in the Olympic spirit.

[1415]

I have to

wonder where these few members have been, and for the edification of those who

may be in the dark about these matters, let me say that representatives of the

Olympic bid committee have been in the East Kootenays three times already that I

know of. They're returning for the Kootenay Olympic opportunities conference in

Cranbrook on March 19, where the four Kootenay MLAs and speakers from the

Olympic bid committee, Tourism Rockies, the Tourism Action Society of the

Kootenays and the B.C. Chamber of Commerce will work with the people of the

Kootenays on how the Kootenays can benefit from the 2010 games. Not only that,

people from all over the heartlands of B.C. flew to Vancouver on their own

nickel a couple of months ago and spent the day talking with the Premier and the

bid committee about the opportunities from the 2010 games. Not only that, the

Premier

[ Page 5027 ]

himself has criss-crossed the province, meeting and discussing the 2010 games

with rural British Columbians. The Kootenays have produced more Olympic ski team

members than any similar-sized region in the country, including Canada's top

female athlete of the last century, Rossland's Nancy Greene Raine. We in the

Kootenays appreciate the sentiments of those few members who — no doubt for

purely altruistic reasons — want us to become engaged in the 2010 Olympic

Games, but we already are.

MENTAL HEALTH CENTRE IN NANAIMO

Hunter: Yesterday I had the pleasure of accompanying the Minister of State

for Mental Health as he visited Nanaimo to assist in the official opening of the

Phoenix Centre. This centre is a new facility run by the mid-Island branch of

the Canadian Mental Health Association. It is a community clubhouse, a drop-in

place for those who have or have had mental illness. It is a place for people to

socialize, to gain work experience in their commercial kitchen or in the

administrative operations centre. It is a place to hang out and relax, have a

bite to eat and talk in peer support groups. The Phoenix Centre also contains an

education centre that provides information on mental health issues.

Like other

members in this House, I am pleased by the progress we are making on mental

health issues in B.C. The fact that the new Phoenix Centre is located right on a

busy stretch of Highway 19A in the centre of Nanaimo, visible to thousands of

people every day, is significant. Its up-front-and-centre location can only

assist in reinforcing the work of all those people and organizations who support

our efforts to end the stigma of mental illness. I hope this House will join me

in congratulating the Canadian Mental Health Association, its volunteers and

funding partners, and in wishing the Phoenix Centre and its clients a very

successful future.

FAIR PHARMACARE PROGRAM

Sultan: The population of British Columbia is divided along political lines,

and so are seniors. Many support the direction of this government; others oppose

it. For example, this morning a seniors group was playing politics with

Pharmacare on the CBC. The former head of the B.C. Federation of Labour, Art

Kube, now a "seniors spokesman" said: "Every senior, every person

on public assistance is now paying more and will continue to pay more than they

paid under the previous government." What a lot of baloney. The facts are

that under Fair Pharmacare, almost half of all seniors will pay less, and many

others will be unaffected.

It's also a

fact that under Fair Pharmacare, as it's phased in, some future seniors will pay

more — particularly in West Vancouver–Capilano, which I represent, even

though we also have constituents on low incomes who will benefit greatly. But

most seniors in my riding do not believe in off-loading the rising costs of

Pharmacare onto their grandchildren. Most seniors in my riding understand

fairness and will appreciate that those who can pay a little bit more should

help ease the burden on those least able to pay, regardless of age. Clearly,

Pharmacare budgets will grow, but not as fast as they would otherwise. Thank

goodness for that, or we'd be broke by the time baby-boomers buy their first

Viagra.

An Hon.

Member: Is that covered now?

Sultan: I'm a senior.

An Hon.

Member: I told you to take that out.

Sultan: You did.

I never

elected those seniors groups who pretend to speak for me. Seniors deserve the

opportunity to hear the facts, not the political scare stuff.

Personal Statement

Hon. R.

Neufeld: I rise to make a personal statement.

Mr.

Speaker: Please proceed.

[1420]

Hon. R.

Neufeld: This morning during debate, I incorrectly attributed a quote in the

Vancouver Sun, March 25, 2000, to Mark Veerkamp. I would like that removed from

the record, please.

Oral Questions

FAIR PHARMACARE PROGRAM

INCOME-TESTING MODEL

MacPhail: Yesterday the Minister of Health Services said that under his new

income-testing scheme, a woman born in 1940 with a household income of $31,000

per year will pay a $600-a-year deductible when she turns 65 in 2005. It's not

true. That woman would pay $930, up from the $275 deductible she pays now and

the $200 deductible she would have paid under the previous government. Every

senior is paying more than what they would have paid under the previous

government.

In other

words, a woman with a family income of $31,000 — not a lot of money — is

worse off by $655 under the government's new scheme. Yesterday the minister had

trouble answering basic questions about who pays more and who pays less. Will he

confirm today that this 63-year-old woman with a total family income of not

$100,000 but $31,000 will be much worse off when she turns 65 under his new

scheme?

Hon. C.

Hansen: I think if the member goes back and checks Hansard from

yesterday, that's not how I answered the question. The example she used was a

woman who is now 63 years old with an income of $31,000. As I pointed out

yesterday in question period,

[ Page 5028 ]

under the Pharmacare plan that's in place today, she would be facing an

annual ceiling of $2,000. As a result of the changes that will take effect on

May 1, she will see a 40 percent reduction in her annual ceiling for her

Pharmacare starting May 1 of this year.

Mr.

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

MacPhail: Just the same way that the Minister of Energy refuses to apologize

when he makes a personal mistake, so does the Minister of Health. The question

was about when the woman becomes a senior — when this same woman, who is now

63, becomes a senior. The fact is that under this government's scheme, that

woman will likely get no Pharmacare coverage at all when she turns 65. According

to the government's own…

Interjections.

Mr.

Speaker: Order, please.

MacPhail: …most recent calculations, that woman can expect to pay $870 a

year for prescription drugs. Under his new scheme, she doesn't see a dime until

she has built up $930 worth of prescription drugs. Do the minister and all the

Liberal backbenchers now agree that, using his own numbers, he has effectively

kicked this woman off Pharmacare?

Hon. C.

Hansen: Let's talk for a minute about someone in this House…

Interjections.

Mr.

Speaker: Order, please.

Hon. C.

Hansen: …who owes seniors an apology. I want to quote that member for

Vancouver-Hastings in an interview she did with Joe Easingwood on February 21,

where she said: "They're going to switch to an income-testing program where

a family that has an income of about $30,000 — two seniors and an income of

about $30,000 — is going to have to pay hundreds if not thousands more, or a

thousand dollars more, out of their pockets for drugs." That's the kind of

fearmongering that has scared seniors over the past few months. She should stand

up in this House, and she should apologize to every single listener of Joe

Easingwood's program.

Mr.

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

[1425]

MacPhail: There's absolutely no question that the thousands of seniors on

the lawn and the federal government giving this B.C. Liberal government a

billion dollars in health care money have made him back off his original scheme.

There's absolutely no question about that. He had to back off because he got a

bunch of cash from the federal government that he has to spend on health — and

seniors on the front steps and the lawn of the Legislature. He's right. It's not

thousands, but it is hundreds that seniors….

I raised an

issue where I said…

Interjections.

Mr.

Speaker: Order, please. Order.

MacPhail: …this woman's paying $655 more, and he stood up and didn't

answer it. He didn't answer it. He knows we're right. He knows he's right.

Interjections.

Mr.

Speaker: Order, please. Will the member please put her question.

MacPhail: Middle- and low-income British Columbians are already reeling from

gas tax increases, sales tax increases and hikes to fees and licences. Now

they're going to have to pay more for their drugs. Many will have to pay

deductibles….

Mr.

Speaker: Order, please. Order. Would you please put your question now.

MacPhail: Yes, I will, Mr. Speaker. Sorry. Many will have to pay deductibles

that far exceed their annual drug costs. The government likes to characterize

its new program as being fair. Can the minister…?

Interjections.

MacPhail: Are you waiting to get to your soft lobs?

Can the

minister tell this House if he thinks it's fair that those British Columbians

who can afford to make big RRSP contributions will pay less than those who can't

afford to make those contributions?

Hon. C.

Hansen: Just to correct what the member said about the $30,000-a-year senior

couple, they will in fact see their total cost of Pharmacare under the new Fair

Pharmacare go from $550 a year down to $400 a year effective May 1. That's not

an increase of thousands of dollars; that is not an increase of hundreds of

dollars. That is a decrease of hundreds of dollars.

Interjections.

Mr.

Speaker: Order, please. Order.

Hon. C.

Hansen: Just to address the member's point that she's trying to make. First

of all, we have structured a new Pharmacare system that is fair to all British

Columbians because it's based on their ability to pay. We have also protected

seniors who currently are

[ Page 5029 ]

locked into fixed incomes. What we have said is that those who will become

seniors in the future may have to position themselves for some of the new

realities of the years to come, where baby-boomers…

Interjections.

Mr.

Speaker: Order, please.

Hon. C.

Hansen: …are simply going to have to refocus their expectations.

Otherwise, our health care system is not going to be able to sustain the

Pharmacare system into the future.

J. Kwan:

I think the Minister of Health Services has mastered the art of not answering

the question.

Under the

government's scheme, total household income will be based on line 236 of the tax

form, which includes deductions for RRSP contributions. A family that can afford

to make RRSP contributions can end up paying less in drug costs than a family

that cannot afford to make those contributions. Can the minister explain what is

fair about giving two families different Pharmacare benefits, depending on

whether or not one family can afford to make RRSP contributions?

Hon. C.

Hansen: Yesterday I offered the two opposition members a briefing on this,

and I reiterate that today. I accept that this is a complex plan. It's not as

complex as the one that was in place, but they may need a briefing to understand

some of the nuances.

Basically,

when it comes to calculating net adjusted income, the money put into an RRSP is

not considered part of that net income. Neither are the payments when you take

money out of RRSPs. As an individual takes money out of RRSPs, that is added to

their family income. Quite frankly, if that's the way it's going to work for

higher-income British Columbians, it works against them because they're going to

be drawing out their RRSP money at a time when they're older and presumably

would have higher pharmaceutical costs.

But I beg

them: please come in for a briefing so we can explain some of this to you.

Mr.

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

question.

J. Kwan:

Maybe the minister should get a briefing, because that information came out of

the minister's website on the Fair Pharmacare program — the registration form.

[1430]

Interjections.

Mr.

Speaker: Let's have order, please. Order.

J. Kwan:

On the registration form it points you to line 236, which is the net income, and

it includes the deductions for RRSPs. When the Manitoba Conservative Party

brought in income testing, they based it on line 150 of the tax form. That's the

total income before deductions like RRSP payments. It would be a simple change

for the minister to make. No one has yet registered. Will the minister agree to

base his new means test, his income test, before but not after RRSP deductions,

to make his scheme a little bit more fair than it already is?

Hon. C.

Hansen: Maybe I can give the member a little bit of history as to where this

reference to line 236 comes from. It comes from the same line that is used for

the premium assistance program that was brought in by the NDP government during

the 1990s. It is fair the way it was set up, and if the member knows anything

about accounting, she will know that RRSPs are not taxable. They're a tax

deduction when you register them, but they are counted as income when you draw

them out later in your life.

GOVERNMENT ACTION ON

SEA LICE IN FISH FARMS

Trumper: My question is to the Minister of Agriculture, Food and….

Interjections.

Mr.

Speaker: Order, please. Order. Let's have some order so we can hear the

question.

Trumper: My question is to the Minister of Agriculture, Food and Fisheries.

All of us in this House want to ensure the sustainability of wild salmon stocks.

However, scientists differ on the cause of the sea lice infestation, and it's

particularly important in my part of the province. This past weekend researchers

from around the world gathered in Vancouver to exchange information on this

parasite and to recommend how best to deal with it. Can the Minister of

Agriculture, Food and Fisheries tell us what, if any, solutions have emerged and

how he intends to proceed with the recommendations resulting from this

conference?

Hon. S.

Hagen: Last weekend we did hold a conference inviting the brightest and best

scientists from Norway, Scotland, Ireland, the United States and Canada to deal

with the sea lice issue. We have always said as a government that we would base

our decisions on good objective science. As a result of that conference on the

weekend, I am requiring that all affected farms in the Broughton Archipelago be

treated for sea lice aggressively and quickly under the control of

veterinarians.

We want to

make sure that the farms are treated as a priority. To achieve that priority,

we're hiring two more inspectors to make sure that the treatment is being done

effectively. I have consistently said that salmon farms in the province must be

operated to the

[ Page 5030 ]

letter of the law, and our government will make sure that they are.

When we

announced British Columbia's action plan for the Broughton Archipelago, we said

that if science indicates that we need to do more, we will. That is exactly the

case. We are drawing on the international expertise of the experts that we had

out. This is a B.C. solution made for British Columbia.

The Hon.

John Fraser's report recommended three steps be taken: (1) the strategic

fallowing of salmon net pens judged to be the highest risk to pink salmon runs,

(2) accelerate the processing and marketing of the mature salmon and

(3) monitoring and treatment of the fish farms for sea lice. I'm pleased to say to

the people of British Columbia that we are carrying out all three.

PROPOSED CHANGES TO THE

PROVINCIAL APPRENTICESHIP PROGRAM

R. Lee:

I would like to ask a public written question submitted by Mondee Redman, chair

of the board of school trustees for school district 41 in Burnaby, to the

Minister of Advanced Education. How would the proposed changes to the provincial

apprentice program address appropriate workplace education standards, safety

measures and transition to provincial apprenticeship programs for secondary

school students?

[1435]

Hon. S.

Bond: I'm pleased to be able to respond to the publicly written question.

Certainly, as media reports and people have recognized, we are facing a looming

skills shortage not just in the province but, in fact, in our country. The

responsible thing to do is look at the system that's currently in place and

begin to look at choice, flexibility and ways to enhance opportunities not just

for learners but for workers and employers in British Columbia. We want to make

it very clear that under the new proposed model for industry training in the

province, we will not be lowering qualifications. We will not be looking at

lesser standards for safety in British Columbia. In fact, we want to introduce

options that allow us to look at competencies and at skill sets. We want to make

sure that we maintain both provincial and national standards.

Finally, in

reference to the secondary school apprenticeship program, both the Minister of

Education and I have had much discussion about the value of those programs to

our province. We are excited about the opportunities that it presents to

students in this province. We think it's a template for how we're going to train

people. We hope to enhance those opportunities for students within British

Columbia.

[End

of question period.]

Petitions

S. Orr: I

am presenting a petition delivered to me by my constituents concerning the

bidding-out of hospital food services by the Vancouver Island health authority.

Belsey: I rise in the House today to table the Save Our Hospital petition

signed by 1,098 of my constituents from the north end of the Queen Charlotte

Islands–Haida Gwaii.

Hon. C.

Clark: I rise to table two petitions. The first one is from parents in

district 43 requesting that the ministry make sure that the funding formula is

fair and that the buffer grant be phased out.

The second

is from IWA workers in Coquitlam with respect to

section 71 of the Forest Act.

Orders of the Day

Hon. G.

Collins: I call budget debate.

Budget Debate

(continued)

Hon. J.

Reid: This afternoon I'd like to expand on some of the themes presented by

the Premier during his state-of-the-province address and provide more detail on

some of the initiatives in the budget that we are taking to open up B.C. through

transportation investment. The Premier touched on all modes of our

transportation system and all regions of our province. He identified the

importance of improved and expanded transportation not just in our urban areas,

which are the provincial gateways for trade, but also in the heartlands of our

province — our rural and northern regions. These areas have always represented

a significant challenge for transportation.

Effective

transportation networks must deal with difficult terrain and span great

distances. Because of harsh conditions, these roads often suffer from neglect.

Our government is taking action now to ensure that B.C. has a safe, effective,

reliable and integrated system of roads, bridges, railways, highways, ferries,

airports and ports to support economic growth in all parts of the province.

[1440]

When I

toured the province last summer, people in every region and community I visited

stressed to me the vital importance of transportation to them and to their hopes

for a prosperous future. We have listened, we heard the real level of concern,

and we were clear in sharing with them the challenges and tough choices we must

make as we move forward. While it was quite straightforward to agree on the

need, the difficulty lay in the fact that there was no money in the

transportation budget to meet the need, so we discussed financing options.

Everyone agreed that we had to take action.

I am proud

to say that we are taking this action. We are moving ahead. The Premier outlined

that provincial funding will be secured over the next three years

[ Page 5031 ]

for improving and expanding our transportation system in all regions of our

province. Direct provincial investment, when combined with contributions of

other funding partners and looking at the full life of those projects by the

time they're complete, will support a total investment of $5.5 billion in new

and expanded transportation infrastructure in the years to come.

We can't

stand still and watch our aging transportation network continue to deteriorate

to the point of compromising safety on our roads. We can't see our trade routes,

which are becoming choked because of growing traffic congestion and poor

reliability, become even less efficient and more costly.

We also

can't continue to ignore our vital system of rural and side roads in the

heartlands of the province. They are too critical to moving our resources to

market, and they have suffered over the decade of the nineties due to a lack of

funding. We can't let our growing urban centres struggle to fight a losing

battle to meet growing demands.

We know we

have pressing needs to move goods and people more effectively between the ports

and rail yards in the lower mainland and our trade gateways. To stand by and let

opportunity and prosperity pass us by because we failed to act would be a huge

disservice to the people of this province and not what they expect from us.

Our vision

is for a comprehensive and integrated transportation system that enhances the

movement of goods, services and people in all regions. Our transportation

financing strategy secures the funding for this vision.

What I'd

like you to take away today is a sense of the large decisions that we have made.

I'd like to provide you with the framework that we're putting in place to open

up British Columbia for increased economic activity; for safer, more reliable

movement of goods and people; for expanded job creation; and for the benefit of

all regions.

Our

province has huge economic potential with its valuable natural resources,

deepwater ports and ideal location as a gateway to the Pacific Rim, the United

States and all other trading partners around the world. It's vital we improve

the transportation links that go to our airports, ports and border crossings

that give our industries access to the global marketplace.

We also

have growing congestion in some areas of the province, particularly the lower

mainland, the central Okanagan, southern Vancouver Island and Fort St. John. Our

long-term plan and investment strategy will be aimed at integrating all parts of

the transportation network so they work together smoothly and efficiently.

In broad

terms, our focus will be on improving and upgrading our main highways,

rehabilitating and expanding our system of heartland roads, continuing to serve

our coastal and inland communities with effective ferry service, expanding

airports and ports, and improving the movement of goods across our borders and

trade gateways.

We also

have to protect our transportation assets. Our roads and highways system is

worth about $66.5 billion. That's a huge investment we have that we all share in

this province, and we have to be able to maintain that. The status quo is not an

option, because our roads, bridges and roadways are constantly subject to wear

and tear and the elements. They will slip; they will slide; they will crumble.

That's just what life is in this province. The people in the north understand

what it means when roads slide off the hillsides. It requires an investment in

order to keep that asset intact.

[1445]

I want to

talk about some of the important projects we've been working on. The Nisga'a

Highway is one of the first acts of this government, because we needed to

provide an additional $11 million for the construction of the Nisga'a Highway,

which is a seven-year $52 million project. Previous funding did not provide for

paving the road, which was a critical connection. The road is a critical

connection. This was a critical piece of the agreement for the people of the

Nass Valley. We didn't shrink from our responsibilities in this agreement. We

found the resources to complete this road, and that investment will be a

brighter future for the Nisga'a people. That new highway is now nearing

completion.

When we

look at the heartlands roads, we have 30,000 kilometres of rural and side roads

in the province's heartlands — roads that serve our resource industries

including mining, oil and gas, ranching, agriculture, logging, resource

extraction. These roads have deteriorated, as I said, over this last decade.

Seventy-six percent of the province's main roads have been kept in good

condition, but when we look at the side road system, only 34 percent of the side

road system is in good condition. Those roads are vital to our economic

well-being in this province, to our rural and remote communities.

The Premier

indicated during his state-of-the-province address that over the next three

years, our investment in these roads will be substantially increased. As part of

our heartlands economic strategy, we have a plan to address the rehabilitation,

increase investment in our rural side road system and investments in the oil and

gas resource roads. That will total $609 million over the next three years.

Provincewide, the government has committed to increased spending on the side

road system by $75 million each year over the next three years. This initial

investment of $225 million is on top of our existing commitment of $37 million

over the next two years for oil and gas resource roads.

This is a

substantial investment, driven in part by our need to address the deficit in

road quality caused by the decade of underfunding and, in part, by the need to

provide the necessary funding to invest strategically so we can support our

resource industries and better enable them to move the critical goods that drive

our economy. We are making these commitments because safe and reliable roads in

all regions are vital to the province's economy. They have to move to their

marketplaces, and they usually do that through our

[ Page 5032 ]

gateway system of ports, airports, rail terminals and using all the methods

of transportation as I've outlined.

In the

rehabilitation of the provincial highways, the value of goods and services

dependent on a transportation network represents 44 percent of our provincial

gross domestic product. Now, this is an interesting fact, because it's very

important to understand how critical it is that now is the time for investment.

It's estimated that the cost of resurfacing a kilometre of highway after 12

years of use is $65,000, which is a very large sum, but that same stretch of

highway could cost, after 20 years, $400,000 per kilometre in order to restore

it. It is critical that we put these investments in, and the timing is now.

Putting

these resources towards rehabilitation of our roads will also provide huge

safety benefits. In addition, as I've already mentioned, the provincial

government has committed to maintaining the current condition of our paved

primary highways and bridges by investing $145 million in each of the next three

years on provincewide rehabilitation. These activities include safety

improvements, road and bridge resurfacing, bridge rehabilitation and replacement

and seismic retrofitting.

The goal of

this rehabilitation program is to direct resources where and when they are most

needed. The project of the Kicking Horse Canyon is a priority for this

government. The Premier has spoken directly to the Prime Minister. Improving the

Trans-Canada Highway through the Kicking Horse Canyon, which is between Golden

and Yoho National Park, is the province's top transportation priority.

[1450]

The

province is prepared to cost-share, on a 50-50 basis with the federal

government, the $670 million it will take to four-lane the canyon section, which

has the highest accident rate on the Trans-Canada Highway. This level of funding

will enable the province to upgrade the 26-kilometre

section to a modern

four-lane standard over a six-year period.

Dedicated

transportation funding is what we will use to provide the province's share of

this critical investment, and we are hopeful that we'll have a positive response

from the federal government. Our position is that not only will this investment

save lives, it will also encourage trade and tourism on this very important

route. This highway is an interprovincial and national gateway. It carries

commerce as well as cars from the rest of Canada to the Pacific. The

improvements are long overdue.

We are also

urging shared funding towards the additional $330 million worth of improvements

needed on the same highway, the Trans-Canada Highway, between Kamloops and

Golden. When we look at the Okanagan Lake Bridge and the needs there, it's

important to remember that the bridge is 45 years old. A new bridge is an

essential transportation priority, and the ministry has completed the design of

a new five-lane bridge. Whether we use this design or work on a partnership to

look at other options, we have to build it.

Our new

dedicated transportation funding will provide the means. We know that a new

bridge will make a much better investment than to continue the costly

rehabilitation of the older structure, and we know that Kelowna and the entire

Okanagan will benefit from improved safety and freer flow of traffic. As well as

the new Okanagan Lake Bridge, we're committed to making other improvements to

the Highway 97 corridor and to other priority corridors such as Highway 3

through the southern interior and Highway 95 through the Kootenays.

Another

priority for safety reasons is the Sea to Sky Highway. As we announced earlier,

we are going to proceed with a multimillion-dollar investment to improve safety

on that much-used road and to increase the capacity to meet growing demand on

the Sea to Sky Highway from Horseshoe Bay to Whistler. The accident rate on this

highway is double the provincial average, and traffic volumes continue to

increase.

We believe

that the proposed scope for improvements will meet the needs of corridor

residents and the growing needs of Whistler. It will also provide the necessary

basis to meet the demands of the 2010 Winter Olympics. Our goal is to have the

corridor improved in time for the games. To accommodate that schedule, we will

not need to begin major construction until at least 2004. I should point out

that work is already underway in this corridor. There is a very treacherous

section, seven kilometres between Culliton Creek and Cheakamus Canyon north of

Squamish, that is currently being upgraded at a cost of $30.5 million, with work

expected to be completed in the spring of 2005.

We have had

a lot of discussion around inland ferries, and we have decided not to introduce

tolls on these ferries. The new fuel tax allows us to address the costs of

operating the services, but we still have to find ways to operate these services

more cost-effectively. We agree with users that the ferries do serve a critical

role for the communities. The subsidy level that we're proposing works out

roughly the same per passenger as it has been on coastal ferries to the smaller

Gulf Islands.

We are

still studying the feasibility of building bridges to replace some of the ferry

routes, and a new bridge at Needles to replace the existing ferry is one

example. Our intention ultimately, where practical, is to involve private

partners in operating these ferries, and some regional districts have expressed

interest. Indeed, I've met with some who would like to work with us on these

solutions.

One ferry

service of particular interest I'd like to mention is the Fran ç ois

Lake ferry. It serves local residents, but it is also a key piece of

infrastructure in moving the harvest of pine beetle–infested wood, and we are

committed to finding workable solutions to better support the flow of that wood

to market. This will require a dedicated effort on the part of my ministry and

of the Ministry of Forests.

[1455]

Now, with

the B.C. Ferry system, I've already made announcements about the importance of

the system to

[ Page 5033 ]

the coastal communities of the province as well as to the larger economy of

the province. That ferry service has been struggling with how to upgrade an

aging fleet, to improve the outdated terminals and to address service

reliability and choice.

Restructuring

opens the way to creatively address these issues while offering wider choice,

more competition and improved services for communities and ferry users. Our

approach with B.C. Ferries recognizes the need for change, for inviting new

thinking, for engaging the private sector in helping us find new solutions.

Again, it was a choice of either letting the situation continue and the fleet

decline, which would affect our economy, or to take dramatic action and chart a

new and ambitious course for the future.

We've

talked about roads, and we've talked about ferries. When we turn our attention

to B.C. Rail, we've said that we would not sell B.C. Rail, and I want to confirm

that we are not. Mayors in the north and the heartlands of our province have

stressed the importance of sustaining our freight rail system. It's critical to

their local economies, not just sustaining but improving the freight rail

system. They have indicated that they are open to private sector participation

as a means of sustaining and improving this service. They know that an efficient

freight rail system will get our resources and manufactured goods to market. Our

government is prepared to work with mayors in rail-reliant communities and B.C.

Rail to pursue private partnerships for operating the freight rail service.

While we're

open to such partnerships, we're committed to fulfilling our promise to the

public that public ownership of the railbeds and rights-of-way that the public

has invested in over the years will continue. Government's goal is to find the

most efficient and cost-effective way to sustain freight rail service without

adding to the public debt through subsidies. That means getting B.C. Rail on a

sound financial footing.

In 1991

B.C. Rail's debt was $81.8 million. Today it stands closer to $650 million. B.C.

Rail has cost taxpayers more than a billion dollars over the past 15 years. The

recent sale of Casco and Canadian Stevedoring will result in $100 million that

will be applied to this outstanding debt.

B.C. Rail

has identified that carrying this level of debt is unsustainable and threatens

the future of core freight rail service. They are in the process of eliminating

or selling heavily subsidized and money-losing components of their operations,

such as their passenger rail service, which was costing $5 million a year. They

are also selling operations that are not core to their freight rail business,

such as their marine division. Inviting private sector partners in providing

flexible, reliable and cost-effective freight rail service makes sound financial

sense. A council of local mayors in rail-reliant communities will be established

to review a request for proposals to private sector operators.

While we're

looking at all modes of transportation as we address airports and ports, we do

need to invest in airports and ports, and we believe that partnerships there are

the way to go. We are setting aside $10 million each year, for the next three

years, for port and airport improvement projects. One of the priority

partnership projects is the extension of the Cranbrook Airport to handle the

larger aircraft. We've heard many times in this House what an exciting project

that will be and how it will lead to increased tourism and access to ski hills

and back-country operations throughout the Kootenays.

We're also

looking at the expansion of container shipping and handling facilities at the

Port of Prince Rupert. We believe that will provide greater access to markets

for grain growers in the Peace region, for logging operations and for the mining

sector. We will work with the city of Prince Rupert to realize this potential.

The border

crossings are an integral part of the flow of movement of goods and services and

our fair share of funding to better serve Canada as a trade gateway with our

borders. Joint provincial and federal funding of $30.4 million has already been

announced for a number of border crossing improvements under the federal

strategic highway investment program. This will continue as we look at how to

make those investments and how to improve those operations. The B.C. trucking

industry has estimated that they lose in excess of $60 million a year because of

delays at borders.

[1500]

As we've

looked with people at how we could finance this, the question is: do we leave

this for our children? Do we expect them to pay the debts? We already have very

high debt-servicing costs on projects that we are using now. Or do we decide to

pay for it as we go and take the responsibility today for the needs we have

today and the improvements? As I talked with people around the province about

this, people were looking for the assurance that funding would be through

dedicated funding for transportation, and I'm pleased to say that has been

accomplished with this plan.

The other

part of this is using partnerships to take those infrastructure dollars and

stretch them as far as possible to design, build and maintain new transportation

projects. The recent passage of the Transportation Investment Act clears the way

for the creation of those partnerships and outlines the requirements and options

for involving the private sector.

[J.

Weisbeck in the chair.]

We have

been working on our tolling policy for British Columbia. We've taken a lot of

input from the public, and we are in the process of finalizing that policy. I

want to assure everyone that fundamental to any such arrangement is that there

has to be a substantial benefit to the transportation user, a benefit that's

larger than what they would pay through tolls.

When we

look at the gas tax, the 3½-cents-per-litre provincial fuel tax, that will

become effective March 1 of this year. Fuel tax rates in most of B.C. have been

[ Page 5034 ]

unchanged for almost ten years, and with this modest increase they'll still

remain comparable to many jurisdictions in Canada. This increase in fuel tax

will generate approximately $218 million a year, and all of that money will be

used for transportation projects throughout the province.

This is one

of the tough choices I talked about, but I believe it is necessary if we are

going to economically develop this province and provide for the safety and

benefit of all people in all regions. We do expect to be able to have the

federal government as partners and, as I said, the private sector as well.

Over the

next weeks and months I'll be providing greater detail on specific projects as

they're finalized and approved. I'll also be releasing the first phase of our

transportation vision and our financial strategy to the public in the coming

weeks.

I want to

reassure people that their voices will continue to be heard in this process, and

we will have the assistance of eight new regional transportation advisory

committees to assist us in this. These committees represent areas outside the

greater Vancouver regional district, which already has its own transportation

authority, and I look forward to continuing to work in partnership with

TransLink on improvements in the lower mainland.

We expect

these regional transportation advisory committees to be in place by the end of

March. They will be volunteers drawn from the regions, and they will be able to

offer input directly to myself as far as the transportation priorities. They

will be able to meet with people from the regions and will be able to understand

the technical needs — whether they be rehabilitation needs in avalanche work

— that the ministry has to contend with. They are also able to then help us

prioritize the spending and make sure the decisions we make are going to create

the greatest benefit for the regions.

This work

that we're undertaking will also produce a lot of employment, and it does mean

jobs. It's estimated that every million dollars invested in new transportation

infrastructure creates 13.3 person-years of employment. This employment occurs

primarily in the communities where the work is being undertaken. The

transportation investments planned over the next three years will create

approximately 17,500 direct person-years of employment and an additional 9,200

indirect person-years of employment.

[1505]

We're also

looking at the benefits from this being not just for safety, though that's

hugely important, but for the industries — whether it be tourism, the resource

industries, agriculture, ranching, forestry, mineral exploration or oil and gas

industries. It means a sustainable freight system to support the northern

communities in moving their goods to market. It means partnerships throughout

the province to help us address needs. It means securing more dollars from the

federal government to participate in transportation infrastructure. It means a

secure financial basis for making critical transportation investments today and

in the future.

I'd like to

leave everyone with this thought. Our transportation vision is called

"Opening up British Columbia," and for me that creates an image of a

province that is looking outward with optimism, conviction and an eye to the

future and the opportunities ahead. The people of this province believe in those

opportunities. They believe they can be part of those opportunities, and they

need the transportation infrastructure in order to deliver on them.

We have

made a bold choice to open up our province, move ahead and secure the necessary

investment. I believe this is the right choice for this province, for our

economic future, for our heartlands and for our children.

Hon. S.

Bond: In my response to the throne speech earlier, I was able to stand in

the House and have the opportunity to talk about the opportunity to open up the

heartlands of British Columbia.

As a

government, we have been faced with very many difficult decisions since June of

2001. We still have challenges to overcome and much work yet to do, but there is

a growing sense of optimism throughout the province.

As I have

travelled throughout my constituency during the last couple of weeks, and in

particular had opportunities to visit the villages of both Valemount and McBride

and meet with my advisory councils there, I have a sense that people feel they

are being heard by the government and have an opportunity to make plans and

strategies that recognize the unique needs of the heartlands of this province.

As I met with them, they were encouraged by our plan, which recognizes that

rural and northern communities in this province have a unique role to play and,

indeed, have unique needs that must be met. They recognized that we as a

government are committed to restoring sound fiscal management to British

Columbia, and the recent budget delivered by the Finance minister demonstrates

that.

Difficult

decisions are needed in order to restore our house to a sound financial

position. My constituents understood the importance of working together to build

a strong and vibrant economy. That's absolutely essential so we can put the

needs of patients, students and those people most in need at the top of our

agenda. This budget puts British Columbia on track for a brighter future. In

fact, we've done what we said we would do. We are ahead of schedule. We will

continue to make the most of our resources and spend hard-earned tax dollars

prudently and fairly, and we will continue to encourage prosperity and growth

throughout this province.

[1510]

I want to

take a moment to acknowledge the leadership of the Premier. Through an

incredible work ethic and devotion to public service, he has kept the focus on

the task at hand: getting B.C. working again. With his leadership and the

dedication of my colleagues, we are committed to three principles. The work that

we do here revolves around those three

[ Page 5035 ]

goals. Firstly, we are committed to restoring sound fiscal management. We

want to revitalize the economy of British Columbia, and we intend to put

students, patients and people in need first. I think it's an absolutely

significant accomplishment that, for the first time in 50 years, every ministry

will come in under budget. The savings from following a plan, from staying

focused, are now being directed into those areas and to those people who need

them most. We believe it's important to live within our means. It's simply the

responsible thing to do. We must ensure that we secure a future for your

children and for mine.

Let's look

at some of the indications of the plan working. In fact, government spending is

under control. The 2002-03 deficit is forecast to be $600 million lower than

budgeted. We're on track not only to balance the budget but, in fact, to deliver

a small surplus in 2004-05 and a modest one in 2005-06 while continuing to

improve services.

Today

British Columbians also have the lowest personal income tax rate in the bottom

two tax brackets. Our business tax rates are among the lowest in North America.

Paycheques are growing, and we are a leader in job creation with almost 78,000

new jobs created during 2002. We plan to continue to make the decisions that

will ensure job growth in this province, because a job is one of the most

important things you can give to a person.

One of the

things I am quite excited about for my own particular riding is the

sector-specific tax measure that sets the stage for growth in television and

film. You see, in my community and in our region we have been extremely

fortunate to be the location of several major motion pictures like Reindeer

Games, Double Jeopardy and Dreamcatcher , which will soon be

released. Through hard work and a very dedicated film commission, we have

recently heard the great news that we will be the site of the new Disney motion

picture Miracle. I think that's absolutely appropriate. It's a movie about

hockey. What better part of the province to be able to celebrate hockey than the

heartlands and, in fact, the Prince George Multiplex? You can imagine the

excitement of my constituents.

We have a

plan, and we are following it. British Columbians can see the future, and it

holds a balanced budget and even a surplus. A year ago people were skeptical

about our ability to balance the budget, and now, because of the courage of my

colleagues and the commitment to make difficult decisions, that is not only a

vision, but it will be a reality. We have a shared belief that we must get our

fiscal house in order for our children's sake.

As I said

earlier, I recently, within the last couple of weeks, had the opportunity to

travel throughout my constituency and, in fact, talk to a number of long-term

residents of the north. Many of them cannot remember such a strong commitment

from a government to the transportation infrastructure in the north. Our Premier

and our government recognize the importance that transportation routes play in

restoring opportunity and prosperity to the heartlands of our province.

The 2003

budget commits $650 million to a new three-year transportation plan. That will

mean new jobs. As we've just heard described by my colleague the Minister of

Transportation, they are significant in terms of the number of jobs created in

communities where transportation projects will be initiated. While we celebrate

the significant job creation we have seen, we must continue to be aggressive

about increasing job opportunities, particularly in communities like mine in the

heartlands of this province. The transportation plan will definitely have a

major positive impact on my communities. We need to remember that $225 million

will go directly into northern and heartland roads. I know in the communities I

represent, those funds are exciting, and they are very welcome.

[1515]

tremendous amount of wealth comes from the northern part of British Columbia. In

fact, we've heard numerous studies, just recently released, that indicate the

significance of the contribution my part of the province makes to the economy of

British Columbia. We have recognized that, and our budget also commits to $146

million for highway rehabilitation, $132 million for major highway corridors,

$93 million for border crossing infrastructure, $30 million for ports and

airports, and $24 million for other transportation projects.

Perhaps the

most important part of this plan for me is that this transportation strategy

will not increase the overall public debt. We have found a way to invest in the

vital infrastructure that is needed in the province without mortgaging our

children's future. Every penny of the 3½-cent-per-litre increase in provincial

fuel tax will be dedicated to supporting the transportation plan. I believe

that's responsible government.

Forest

reforms are vital to our province's economy. Since 1997 we have seen probably in

excess of 13,000 forestry jobs disappear from communities like mine. We have

lost hundreds of millions of dollars in revenue over the past five years. The

industry has had to deal with the softwood lumber situation and some of the

ill-formed policies of the previous decade. Individuals, families, businesses,

industry and, in fact, whole communities and regions of this province have felt

the impact and the adverse effect of a struggling forest industry.

This is the

year of forestry. It is our number one industry and a major contributor to

government revenues. We have already done much to ensure that the forest sector

is competitive, but our work is just beginning. Our government is planning major

changes to the way industry operates. Reforms will see more wood available to

smaller operators. This presents an opportunity for small operators to grow

their businesses.

In my

constituency the potential reopening of Slocan Valemont is extremely good news

for the people who live in the Robson Valley. The community forest initiative

and also the small business program in the village of McBride are essential to

the economic diversification and revitalization of that community. Additionally,

waterbedding will be eliminated, and our in-

[ Page 5036 ]

dustry, which has borne the brunt of this policy, will become even more

competitive.

During the

softwood lumber dispute, the industry has shown tremendous tenacity. Management

and labour have worked side by side to ensure that our mills are working at

maximum efficiency. When the dispute is settled, the operations in my

constituency are poised for even greater success.

The

results-based Forest Practices Code, which allows companies to be innovative and

which protects environmental standards, and the working forest initiative are

two essential initiatives for the benefit of those companies and individuals in

my constituency. More reforms are on the way, and they are exciting,

particularly the opening up of access to timber and the opportunity that will

provide for business.

Another

exciting opportunity is the 2010 Winter Olympics. I want this House to know that

Prince George wants the Olympics, because they know it will be good for all of

British Columbia. Just yesterday the city of Prince George launched its own

Olympic initiative. Let me quote from former Olympian Tuppy Hoehn: "I see

great potential for the development of a northern sports training centre in

Prince George. It is an ideal place for athletes to train and to continue their

post-secondary education."

That's just

one idea, and the excitement and enthusiasm are just beginning to build. The

games provide perhaps even a more important opportunity — an opportunity for

those of us who live in the north, who are forest-dependent communities, to

showcase for the world the benefits of building with wood. We in the north

understand the versatility and strength of building with wood, and we need to

share that knowledge. There is no bigger audience than the world at the

Olympics.

[1520]

I can

assure you that my colleague the member for Prince George North and I will

continue to be aggressive advocates for the use of wood, not just in the

preparations for the 2010 Olympics. As we move forward as a government, we will

continue to say that wood is good.

In my own

ministry we will do a number of things that will focus on our ability to attract

and create great students, learners and workers in British Columbia. As part of

the budget the Ministry of Advanced Education will fund six new B.C. regional

innovation chairs in the college, university college and institute sector. That

is an exciting opportunity for institutions around the province to look at

regional innovation and economic development. We think this is a great

initiative, and I am looking forward to the proposals that will be received.

Secondly,

we look forward to creating and enhancing the provincewide BCcampus on-line

learning model. It will allow increased access to learners all around the

province.

We also

intend to accelerate the medical school expansion that is currently underway in

a unique and, in fact, innovative concept leading North America — the concept

of bringing together three institutions and working together on the delivery of

medical and physician training in British Columbia. As we work together, we will

see the University of British Columbia, the University of Northern British

Columbia and the University of Victoria almost double the number of physicians

that are trained in the province. We know that we need them. We need to make

sure that they have the opportunities to work in those rural and remote

communities where health care is so essential. We intend to make sure that as we

bring those students into our system, we are going to work very hard so they

have opportunities and incentives to work in the heartlands of British Columbia.

We made a

commitment in advanced education to deal with critical shortages that we are

facing in many professions and in particular the medical profession. Our

government is funding over 1,400 new college and university spaces for

registered nurses, licensed practical nurses and care aides over the next three

years. The new medical programs at the University of Victoria and University of

Northern British Columbia will increase the number of first-year medical spaces

to 224, nearly doubling the number of doctors graduating every year by 2009.

We have

repeatedly said that health care is our most essential public service, and we

have proven that. By reducing administrative costs, we have focused resources

where they must be focused — directly at the bedside, directly involved in

patient care. In fact, when we hear people talking about cuts to health care, we

increased health care spending by 12 percent, or $1.1 billion. Provincewide

standards for patient care are now in place to ensure that dollars are being

spent appropriately, effectively and certainly putting patients first.

I am very

excited about the opportunity to work with the Ministers of Health Services and

Health Planning as we build a centre of medical excellence in Prince George that

will benefit the entire northern part of the province.

This budget

means more support, as well, for children and for families. By ensuring that we

are good managers of public dollars and getting our fiscal house in order, we

will create the opportunities that this province needs to grow and to invest

those dollars in the essential services that our children and our families need

in the future. Examples of that are an investment of $11 million per year for

intervention for school-aged children with autism spectrum disorder and an

increase in the number of child care spaces eligible for subsidy assistance in

the coming year by 50 percent.

[1525]

We will

also be offering one-time funding of $10 million to establish an early childhood

partnership fund with the United Way and the Credit Union Central of B.C. We are

continuing our assistance to community organizations that receive charity top-up

grants, and the earnings exemptions for people with a disability has doubled

since we took office and now sits at $400.

An extra

$50 million was given to school boards this year in the form of a one-time

grant. There will be

[ Page 5037 ]

an additional $143 million placed in the budget over the next three years. By

2005-06 the per-student funding will have increased by $243 per pupil.

conclusion, the plan is working. That's the bottom line. Sound fiscal management

is working. We're applying the same principles to managing your money as you

would: don't spend money without a plan, prioritize and focus on what most needs

those resources.

I want to

close with the comments of the Finance minister. He said it well, and we need to

hear it one last time:

"With

this budget, once again, we choose the difficult path of progress and reject

the failed approaches and policies of the past decade. We choose to contain

the growth of government and expand the economic growth that will sustain our

social safety net for future generations. We choose to act now, to balance the

budget and build for tomorrow. Mr. Speaker, we have made progress — we are

on track and ahead of

schedule — but we have only just begun. There is yet

more work to do. Let's get back to work, and let's get this job done."

Nuraney: We just heard two very able and hard-working ministers talk with

enthusiasm, excitement and optimism about their ministries and the plans they

have in place. These plans are only possible because our government has now been

able to get a handle on our financial affairs.

I rise

today to speak on the budget that was introduced by our Minister of Finance in

the House. It was very reassuring to hear that the ministers and all their

ministries, for the first time in over 50 years, came in on or below their

budgets. This statement in itself is historical. Apart from creating history,

what the ministers have really done is recognize the seriousness of the state of

our financial affairs. What this government inherited from our predecessors was

a situation that heralded a financial disaster. We were elected with a very

clear mandate that this irresponsible behaviour had to stop.

We were

entrusted with the difficult task of bringing financial order and prudence into

our government. The last 18 months have not been easy for our government to deal

with this problem. Reductions in our spending had to be made, resulting in cuts

to some of the government services and reductions in public sectors. We were

criticized for our actions, and considerable opposition was mounted by the

vested interests that had seen a bonanza under the previous government — a

bonanza and indiscriminate increases of the benefits at the expense of the

future of this province.

We now see

a budget which is more sensible. We also see the benefits of better management.

Our deficit is expected to be $600 million lower than originally planned, and

the debt is expected to be $3.5 billion lower than anticipated a year ago. These

results, in themselves, allow us not only to bring under control the burden on

our taxpayers but also to employ our resources in a more meaningful way.

[1530]

We have

been able to increase our health care funding last year by $1.1 billion. More

money has been given to education. On top of the $4.86 billion that is allocated

to education, there will be a further $143 million added over the next three

years. Post-secondary students are also benefiting. In the past 20 months we

have committed almost $900 million to advanced education, access and research.

This added funding is over and above the ability of the institutions to bring

their revenue generation in line with demands after we eliminated the tuition

freeze last year.

We continue

to deploy our scarce resources, meeting the right priorities. Our new measures

in the Ministry of Human Resources have resulted in more people finding gainful

work and fewer people dependent on government assistance.

This

province in the past decade saw neglect and disregard for the economic

development of our rural communities. Our heartlands economic strategy will

ensure more needed infrastructure and investment in roads, bridges, tunnels,

airports and ports, which will translate into opening up opportunities in the

heartlands of our province in terms of forestry, mining and exploration. This

will begin the much-anticipated prosperity in our province, resulting in more

jobs and general well-being of all British Columbians. Our government has

declared in this budget that it will spend $30 million for airports and ports,

$93 million for border crossing infrastructure, $132 million for highway

corridors, $225 million for northern and heartland roads, $146 million for

rehabilitation and $24 million for other related projects.

Our forest

industry has suffered an enormous setback because of the softwood lumber dispute

with the United States. This budget has allocated $275 million to assist British

Columbia's forest workers, communities and companies in transition to a more

competitive, sustainable forest industry. This government is committed to

revitalizing our forest industry.

The

elements and ingredients necessary to lay the foundation for investment in the

future of our province are being put in place. I am very confident that we will

turn around the opinions of the industry and business leaders, that we are

becoming a province which is welcoming expansion of their activities and

providing them with the tools to do so.

Our income

tax levels have been dropped to a very competitive level among all of the

provinces, and unreasonable regulations and red tape have been reduced. We are

providing additional incentives for regional television and film projects,

digital animation and visual effects — a very good measure to attract more

investment in this fast-growing industry, which has become a significant part of

our economy.

The mining

and exploration sector, which had almost disappeared in our province in the last

decade under the very antagonistic policies of the past government, is beginning

to return. This budget has offered a further incentive by extending the mineral

exploration tax credit for a further three years.

This budget

also contains enhancement of our social services. Funding will be made available

to increase the number of child care spaces eligible for subsidy assistance by

50 percent. Ten million dollars has

[ Page 5038 ]

been earmarked to create a new early childhood partnership fund with the

United Way and Credit Union Central of British Columbia. A further $110 million

will be available for employment programs for people in need. We have also

allowed people with disabilities to earn up to $400 without affecting their

benefits. We added an additional $11 million per year for intervention for

school-age children with autism spectrum disorder. All this would not have been

possible if we could not and would not and did not bring our financial house in

order. I think we have now struck a balance between financial prudence and

social responsibility.

[1535]

Let me

conclude by saying that I could not agree more with our Minister of Finance when

he said that the budget is a plan for prosperity that is prudent, responsible

and focused on the future. Mr. Speaker, I thank you for giving me the

opportunity to address the House on the budget.

Tributes

CANADIAN ARMED FORCES

Hamilton: I am certainly honoured to stand before this House and respond to

the budget presented by the hon. Minister of Finance on February 18. Before I

begin, I would invite all members to join with me in paying tribute to the men

and women of the Canadian Armed Forces who are or soon will be on active duty.

Many of these men and women and their families reside in my constituency, and

many more hail from other regions of the province. We cannot overstate our

gratitude for their sense of duty to Canada and their willingness to make

sacrifices on our behalf. These men and women represent all that is good about

Canada and our province of British Columbia. I wish them Godspeed and a safe

return home.

Debate Continued

Hamilton: The fabric of our province is woven from many different threads.

As diverse as we are, we share common anxieties and visions. In discussions with

my constituents and the many British Columbians I have met while touring the

province with the Select Standing Committee on Finance, reoccurring themes have

emerged. We are being challenged on many fronts. Concerns over health care,

education, natural resource management, first nations, infrastructure, crime

prevention, law enforcement, the state of our province and business and economy

in general are on the public's list throughout British Columbia. We have heard

good news from the minister in regard to all of these.

Our deficit

for 2002-03 is forecast to be $600 million lower than originally planned, and

our economy has grown at almost three times the rate anticipated by independent

authorities — talk about a good-news story. Every government ministry will be

within its operating budget in 2002-03, and our provincial debt will be $3.5

billion lower than forecast a year ago. We are on target for a $375 million

surplus in 2005-06. This budget clearly shows that the concerns of our citizens

are at the top of our list and also that we are prepared to tackle them head on.

Health care

is a major concern for my constituents. Each year the demands on our health care

system increase dramatically. Our health care costs are growing by 7 to 8

percent annually. These escalating costs will be sustainable only through a

conscientious effort to prioritize the allocation of health care dollars.

Our health

care professionals, our nurses and doctors, are now amongst the highest-paid in

Canada. In 2002-03 this government increased the health care budget by 12

percent — that is, $1.1 billion — to $10.4 billion. Supported by an expected

federal contribution of $1.3 billion over the next three years, we will continue

to work toward delivering the best health care system possible. We are confident

that our efforts will attract more qualified professionals to our province. We

are confident that our plan will lead to twice as many doctors being graduated

from B.C. universities by 2009.

This

government has also recognized the inequities of our Pharmacare system. We have

taken steps to ensure that prescription drugs remain accessible to all British

Columbians, particularly those who can least afford them: the elderly and those

in lower income brackets. Through creation of the Fair Pharmacare plan, we have

reduced the cost of Pharmacare coverage for approximately 280,000 families in

British Columbia — very good news. It is reassuring to note that the vast

majority of B.C. families will enjoy the benefit of stabilized or reduced

prescription drugs, and in fact, 84 percent of British Columbians will pay the

same or less than they are paying today.

[1540]

We applaud

the creation of community living B.C., an authority to oversee the design and

delivery of services to those with developmental disabilities. In recognition of

the challenges they already face, we have increased the earning exemption by

another $100 a year for those with disabilities.

In 2001 we

committed to several things: renew public health care through better management,

adequate funding, proper staffing and sound strategic planning. We continue, to

this day, to allocate 41 cents of every dollar we spend to health care. That is

a lot of money, and we are keeping our promise to the people of British

Columbia, our promise to manage carefully all the tax dollars allocated to the

health care system.

Next I

would like to turn to education. Our youth represent our future. Public

education costs are an investment in our future. Properly spent, they will pay

back a hundredfold in long-term benefits to the province. It is the

responsibility of this government to develop a public education system that

meets the highest standard. It is the right of each citizen to expect nothing

less, and I am personally committed to that goal.

This

government recognized the need for local school boards to have a greater say in

how their annual budgets were spent. We understand that local decisions

reflecting local issues were preferable to decisions

[ Page 5039 ]

being imposed by a centralized authority. In recognition of those demands, we

have given local school boards greater flexibility to manage their own affairs

and restored management decisions to school principals.

Our

government will maintain the education budget at $4.8 billion in spite of

dropping enrolment. That translates to an increase of $51 in the amount spent on

each student in the coming year. This is in addition to the one-time funding of

$50 million recently given to our school boards. I am confident that school

boards throughout the province will be able to meet or exceed their students'

needs and the public's expectations. The Esquimalt-Metchosin riding includes the

greater Victoria school districts 62 and 61. Through the inner-city school

funding initiatives, school and community programs will be funded to the end of

the school year and beyond in both districts.

We must pay

the costs of services provided to us. They must not be a debt passed on to our

children. This applies to education services as it does to all government

services. We cover these costs through an increase in the education portion of

our property taxes, which will guarantee that these education costs will be on a

pay-as-you-go basis and not be a burden on future taxpayers. These commitments,

along with nearly $23 million in one-time funding to enhance research programs

and an overall $143 million increase in the budget over the next three years….

That is $243 per student more than 2002-03 by 2005-06, proof of the faith we

have in the youth of British Columbia.

I would

like to discuss day care. In my riding of Esquimalt-Metchosin we have many young

families and single parents who rely on day care services for their children.

This government understands the importance of providing suitable day care for

young children. These costs often create havoc in the family budget. Increasing

the income threshold by an additional $100 and the number of child care spaces

eligible for assistance by 50 percent will ensure that subsidized day care will

be available to many more families. Starting in May an additional 3,000 children

from low-income families will be eligible for benefits, and an additional 6,000

children will receive an increase in the subsidies.

Furthermore,

the $10 million investment in the early childhood partnership fund, the $11

million per year allocated for intervention for autistic children and the $110

million for employment programs for people in need underscore the importance

this government places on helping those who need it the most.

[1545]

The next

budget topic I would like to discuss is natural resources. The economic

dependence of many communities on our natural resources is well documented.

Indeed, the health of our provincial economy is directly linked to our mining,

fishing and forest industries. It has been estimated that our forest industry

alone accounts for 25 percent of the economy, directly or indirectly. This

government has embraced the responsibility of managing our natural resources

wisely.

Our

commitment to effective natural resource management is exemplified in our new

Forest and Range Practices Act. We take our stewardship of our forests

seriously, and we are working with our partners in industry to ensure that these

resources will be here for many, many generations to come. This commitment

includes increasing first nations participation in the forest economy and

investing up to $95 million over the next three years to explore revenue-sharing

opportunities with them.

Where we

have control over resource management, we have limited influence in global

markets and the imposition of duties by other jurisdictions. However, we do

recognize the impact of changing technology and shrinking markets on our

forestry employees and their communities. The newly created $275 million forest

transformation fund will help those employees and the communities where they

live deal with the upheaval they are facing.

Alternative

sources of energy are growing in importance. We look to the future development

of coalbed methane and offshore oil and gas to give a huge economic boost to our

province by creating many new jobs and ensuring our energy supply for many years

to come.

This

government is committed to developing a working partnership with our first

nations people. With revenue-sharing agreements to revitalize the forest

industry in traditional territories and major funding programs to support

aboriginal economic opportunities, we are now focused on building for the

future. As the hon. minister has said, we will be extending the three-year $30

million first nations economic measures fund for another year. We will be

supporting aboriginal involvement in key industries such as tourism, natural

resources, aquaculture and the Olympic bid. We will be developing working

partnerships with first nations in the management of parks and recreational

services. We have recognized the injustices of the past and are taking steps to

correct them.

This budget

also addresses transportation needs. We in the riding of Esquimalt-Metchosin are

now enjoying the benefits of major infrastructure projects like the newly opened

Veterans Memorial Parkway. Its real value will prove out in the future economic

and residential growth that our region will experience.

understand the necessity and the benefits of the major infrastructure projects

that this government is proposing. Last week I travelled to Qualicum. I've lived

in the Victoria area for over 40 years, and I remember the length of time it

used to take me to go to Qualicum and how the new highway system has opened up

the whole interior of the Island. This is what the heartlands is going to

experience when all the infrastructure is done in the heartlands.

We accept

that improvements in highways, rail services, ferry services and airport

facilities are essential if we want the economy of the heartlands to grow. The

$650 million dedicated to transportation improvements over the next three years

will ultimately open up the province to commerce and will create new and ex-

[ Page 5040 ]

citing opportunities for all British Columbians. Funding formulas such as the

dedicated gasoline tax and cooperative ventures with the private sector will

result in these projects going forward as quickly as possible, so that all

British Columbians can reap the combined benefit.

As a former

police officer of over 30 years experience in law enforcement, I am particularly

excited about the proposed dialogue on crime. I have seen firsthand the impact

that crime has on people and their communities. Through the implementation of

PRIME, a common database accessible to all law enforcement agencies in the

province and meaningful discussions amongst law enforcement educators and

community leaders, we can reduce the amount of crime in our schools and on our

streets.

As a result

of discussions already held, this government has deferred implementing a

shared-cost formula for police services to communities with populations under

5,000 to allow further consultation with these communities as they had asked

for. Applying a similar formula to discussions between our youth and elderly, we

hope to open up a dialogue that will challenge conventional thinking and trigger

new and innovative methods of resolving the many issues before us.

At the end

of the day, this budget will stand or fall based on the overall state of

business and employment — in other words, the health of the economy.

Throughout this past year we have seen many indications of our economy

improving. Housing sales are up; tourism is up. We are attracting more offshore

investors. Over 81,000 new jobs have been created, and the majority of our small

businesses expect to see significant growth in their operations in the coming

year. As of last November our average weekly wage had risen over the national

average by more than 70 percent.

In my

riding there are nearly 400 businesses enrolled as members in the Esquimalt and

West Shore chambers of commerce. As our region grows, so do our business and

recreational opportunities. We are eagerly awaiting, in the western communities,

the new 2,300-seat arena at the Juan de Fuca recreation centre. We expect that

it will spawn a revitalization of the Nobb Hill–Colwood Corners stretch of the

Old Island Highway.

[1550]

A proposed

development in my riding is the new Centre Mountain golf course in Metchosin. I

have toured the project, and it promises to be a truly magnificent facility.

This is further evidence of faith in the growth of our economy.

I am happy

to report that one of my constituent's businesses has nearly doubled in size

since 2001. He attributes that growth to our programs created to help small

business, but he is not alone. The successes are being mirrored time and time

again throughout my constituency and the province every day. Also, as I reported

to the House last November, the Esquimalt Drydock Company was recently awarded a

$13.8 million ship repair contract. This contract will result in over $10

million in labour and locally bought supplies going straight into our economy.

Today, Point Hope Shipyards announced a ship repair contract.

As the

largest employer in the province, the health of small business is the key to our

economic recovery. Eliminating the red tape and making seed capital more

available through the Small Business Venture Capital Act are major boosts to

growth strategies being developed by small businesses in every corner of the

province.

Finally, I

would like to touch on the 2010 Olympic bid. We can predict the huge economic

benefit of hosting the Olympics, a projected $4 billion added to our GDP by

2020. With our budget investment of $199 million over the next three years for

the Vancouver Convention and Exhibition Centre and the improvements to the Sea

to Sky Highway, we can envision the legacy of facilities infrastructure that the

games will leave us. We can foresee the global attraction to the

Vancouver-Whistler regions and the rest of our magnificent province. What we

can't measure is the sense of pride that each of us in B.C. and throughout

Canada will feel if we are awarded the games. It will be that sense of pride in

our athletes, our volunteers, our province, our country and our achievements

that will carry the day.

Two years

ago this government made a promise to the people of British Columbia. We

promised to deliver a comprehensive and fiscally sound approach to the business

of government. We promised to identify and prioritize issues facing all British

Columbians. We promised to listen to all of the stakeholders and to develop

programs and apply funding in an open and responsible manner. Although our work

is far from complete with this budget, we have reinforced our commitment to the

citizens of British Columbia.

Hon. B.

Barisoff: I am pleased to rise to speak to the budget today. We were elected on

a platform of promising a new era of prosperity. That's what this budget did,

and we're delivering on that promise. For ten years the heartlands of this

province have been ignored. The other day in the House, the people from the

opposite side didn't even know where the heartlands were. Let me tell you.

In the

state-of-the-province address, the Premier announced the heartlands economic

strategy. I want to tell you, our Premier knows where the heartlands are. He has

been from one end of this province to the other, and he knows every community

within the province. He knows where the heartlands of British Columbia are. The

Premier gave us all a new reason to be excited about our future, and that budget

the other day gave us the excitement, unbeknownst to all of us, that we were

going to go into a new era of prosperity in this province.

His

announcement detailed significant investment to our rural heartlands, beginning

with $210 million in rural and resource roads. I want to commend the Minister of

Transportation for such an excellent thought of putting $210 million into the

heartlands of British Columbia, with $37 million specifically targeted to meet

the needs of the oil and gas industry in the north.

[ Page 5041 ]

When we invest in the oil and gas industry in the north, that develops the

entire province. That means health care and education in the entire province are

subsidized by what happens there. The Minister of Transportation did an

excellent job of looking at what could happen there.

Colin

Bruintjes, president of the Certified General Accountants Association of B.C.,

said: "The spending is well within the government's means and will go a

long way toward helping the battered heartlands of the province." That's a

great comment from Colin Bruintjes. We're going to secure transportation

improvements through dedicated funding from fuel tax revenue. Three and a half

cents a litre is going to improve the roads for all British Columbia, and the

Premier of this province said that every last cent will be spent on highways. I

might want to repeat that — every last cent — so that people throughout the

province will be excited to know we're spending all that money on highway

improvements.

[1555]

In my

riding the Minister of Transportation committed to improving Highway 97, Highway

3 connecting Hope to the Okanagan and a new bridge in Kelowna. Mr. Speaker,

you'd like to hear that — the new bridge in Kelowna. Highway 3, Hope to the

Okanagan, has been long overdue, and we're truly excited in the south Okanagan

to know that's going to happen.

The other

thing that's happening in the south Okanagan is that we're exploring the

possibilities of a new national park. Senator Fitzpatrick has pushed to get a

new national park, and I know that when he hears that Highway 3 is going to be

upgraded and the federal government hears that, they're going to dive at the

chance of making sure that park comes into existence.

We have the

establishment of a B.C. resort task force, which will include our first nations,

local communities and businesses and will promote development of resort

communities. The one I'd like to mention is Apex. It's a jewel in the south

Okanagan, and I know for certain they will be the beneficiaries of the

establishment of the B.C. resort task force.

We're going

to increase competitiveness in B.C.'s forest industry. The working forest

designation recognizes the importance of sustainable forestry in British

Columbia. That's what we need to know. We need to know that there's security for

the tenures, the forest companies and the workers to make sure they know they

will have a job now and into the future in British Columbia.

The Premier

also announced the establishment of a $275 million forest transformation fund to

assist our forest workers, communities and companies in moving to a more

competitive, sustainable forest industry.

The Premier

has established a new working relationship with first nations. The government

recognizes that government must assist in increasing economic opportunities for

first nations. I'm very fortunate in the south Okanagan, because I have the

Osoyoos Indian band and Chief Clarence Louie, who does an amazing amount to

increase the economic activity in the south Okanagan. He should be commended for

what he's done.

three-year $30 million economic measures fund will be extended indefinitely with

an additional $10 million per year. The First Citizens Fund doubled from $36

million to $72 million to support economic development, social and cultural

activities and job opportunities in the heartlands and urban communities. As the

Premier said, we're committed to improving services for first nations and

working together to build a better future for all British Columbians.

Under the

leadership of Premier Gordon Campbell, this government is spending more on

health care and education than ever before. We put $1.1 billion — additional

funds — into health care. We put additional moneys into education. As a former

school board chair, I know how additional funds make a difference for education.

Looking here, the Minister of Education is nodding her head — has done a

fabulous job of getting those extra funds. I know the districts throughout the

entire province are excited about what happened.

Government

has made significant changes for health care for seniors. The Minister of Health

introduced the Fair Pharmacare program; 280,000 seniors on low incomes will

actually pay less. That is something that we all should be proud of. All of

government should be proud of what the Minister of Health has just announced.

We're going

to be building 5,000 new intermediate- and long-term care beds by the year 2006.

That's 5,000 new intermediate- and long-term care beds. That is really something

for our government — to go out ahead of the curve and make sure things happen.

[1600]

In my

riding, I'm actually fortunate again. The Penticton campus of care facility

groundbreaking ceremony on November 8, 2002, was actually attended by the

Premier. The Premier of the province took the interest to come out to Penticton

to do the groundbreaking for the Penticton campus of care. Construction is going

to be completed by October 2003. If you have the opportunity to go by, it's just

a fabulous facility.

One hundred

and forty-two independent housing units with support services and

assisted-living apartments will be built in the heartlands of British Columbia,

with the creation of 3,500 independent housing units with support services and

assisted-living units provincewide. That's something to be proud of.

We're going

to implement a $125 million mental health plan to better meet the needs of

people living with mental illness.

Interjection.

Hon. B.

Barisoff: Oh, $263 million. It escaped my attention that it was $263

million. I should know that, because it's been announced in the House many, many

times by the minister.

[ Page 5042 ]

Terminally

ill patients are cared for under the new palliative care benefits program that

provides medication, medical services and equipment.

As I

mentioned before, we added $1.1 billion into health care. Forty-one cents out of

every dollar spent in government go to health care. Government has established

strong provincewide standards ensuring that every patient has access to health

care when they need it.

We have

increased funding for the B.C. Ambulance Service by $30 million. Mr. Speaker,

$30 million for the B.C. Ambulance Service makes a huge difference in the

heartlands of British Columbia, because we rely on the B.C. Ambulance Service. I

want to thank them for such a fine job that they're doing in the heartlands of

British Columbia.

There's the

new B.C. telehealth program to support health care to rural communities through

video conferencing and electronic data transfer. Tele-imaging has long-term

environmental and cost advantages in that chemical film processors are no longer

needed, and it eliminates the cost of film, including storage and disposal. The

B.C. NurseLine is staffed 24 hours a day by RNs with translation services in 130

languages, including 17 first nations languages as well as deaf and hearing

impaired.

Establishing

a new $134 million medical school with campuses at UVic and UNBC in addition to

UBC will double the number of medical school spaces from 128 to 224 by 2005. I

think the Minister of Advanced Education should be commended for the fact that

she's got these new spaces at UNBC in Prince George. When people start to move

to different parts of the province, they realize how beautiful it is and they

want to stay there. There will be an additional 1,400 training spaces for nurses

and residential care aides over the next three years.

Health care

costs are at 41 percent of the entire budget and growing faster than the

provincial economy. We have to deal with that. We have to do the things that

make sure we bring the spending under control. We're doing the right things.

We're not doing what happened in the past. We're making value for dollar.

The

Canadian Federation of Independent Business also says that our government tax

cuts are working. They're encouraging the government to stay the course. On the

second day, when we got elected and we made the tax cuts, people said they

wouldn't work. Well, let me tell you, we've turned the corner. Those tax cuts

are working. Seventy-six percent of the federation's members said personal

reductions had a positive impact on their businesses.

Our new

budget shows that our fiscal plan that we put in place is working. Debt is

forecast to be $600 million lower than budget, and it could be greater than that

— $600 million. Debt for '02-03 is forecast to be $3.5 billion lower than

planned. I think that's a credit to the Minister of Finance's and the

government's work and what they've been doing. Difficult decisions have to be

made. We've stayed the course, and we're making them.

[1605]

Let me just

give you a few budget quotes. Richard Rees, CEO of the Chartered Accountants of

B.C., said: "B.C. is on the road to recovery. The signs are

everywhere." I couldn't agree with him more. The signs are everywhere. Jock

Finlayson, v-p of the B.C. Business Council, says: "I think the direction

they are going in is sound and will command strong support from the business

community." When we get the business community behind us, we know the

economy is going to turn around. Dave Park, the chief economist of the Vancouver

Board of Trade, said: "Setting realistic goals and meeting or beating them,

as the government has done, goes a long way in calming the business community

and boosting consumer and investment confidence."

We have

restored sound fiscal management, which will result in our next budget not only

being balanced, but we're going to have a slight surplus — just a slight

surplus — and in '05-06 it will be a greater surplus than that. We've turned

the corner. We're not going to live on the backs of our children and our

grandchildren. We're going to pay our way as we go.

While we've

been fiscally prudent, we've invested heavily in the province. As you've seen,

we're going to invest in the highways; we've invested in schools; we've invested

in the universities; we've invested in the people of British Columbia. We're

going to open this province up for investment like it's never been seen before.

We will be the envy of Canada. We will be the envy of North America when we're

through. People will want to flock to British Columbia.

We're

purchasing the land for the Vancouver Convention and Exhibition Centre, an

expansion in Coal Harbour. We're working in partnership with the federal

government and the private sector to create jobs and attract visitors from

around the world. We are going to be the place everybody wants to come to. The

expansion will mean up to $5.1 billion in economic activity. Six thousand

persons in employment and construction will also assist Vancouver in winning the

2010 Olympic bid. I was excited on Saturday night, watching the fact that

Vancouver had voted 64 percent in favour of having the Olympics. In Canada as a

whole, I understand that we're looking at 91 percent support. People want the

Olympics in British Columbia, and they want them in Canada, because we will be

the showcase of the world.

There's

good news for film and television produced in B.C. A 20 percent refundable

corporate tax credit for B.C.-controlled film production corporations has been

extended for production where principal photography begins between March 31,

2003, and April 1, 2008.

On June 25,

2001, our Premier had a vision of this province, a vision like no other Premier

has had in the past. The Premier is living up to that vision by taking us into

the future. It is exciting times for all of us in this province, the most

exciting times I think that we could ever even imagine. To think that we might

have the

[ Page 5043 ]

2010 Olympics — not might have…. We're going to have the 2010 Olympics,

and that's going to benefit the entire province. Whether you live in Peace

River, Cranbrook in the Kootenays, Prince Rupert or the Okanagan or on Vancouver

Island or the lower mainland, the 2010 Olympics are going to benefit us all —

every last one of us.

I know, as

somebody that grew up in the Okanagan Valley, what the tourist industry will do.

It will incredibly enhance the wine industry. It will incredibly enhance the

fruit industry. The tourists will be flocking. They'll make the circle coming

from Vancouver, travelling into the Okanagan, travelling through the Kootenays

up to the north country. It's going to be exciting times for all of us in

British Columbia.

[1610]

In closing,

I want to say that the fiscal policies brought by our government under the

leadership of Premier Gordon Campbell will ensure that British Columbia gets the

economy back on track while we continue to support our health care systems and

quality of education. Today is a day I'm truly excited for our province, and I

know the future has great things. As they said in the Olympic bid, it's our time

to shine.

Hon. G.

Cheema: It's an honour to be able to speak and respond to the budget. First

of all, I would like to congratulate our Premier, our Finance minister, my

colleagues and the staff working in all government ministries for their work and

effort in ensuring that 2002-03 was a successful year.

It's

definitely an achievement to have every ministry of government within budget.

It's an achievement to have a deficit that is $600 million lower than we were

expecting. It is an achievement to have a budget for the new fiscal year which

clearly lays out our government's plan for the future, and that will put

patients, students and people in need first. It's an achievement that we are

continuing to protect health and education funding.

We are also

going to be investing $650 million of new dedicated fuel tax revenues on

transportation infrastructure over the next three years. We are maintaining last

year's $1.1 billion increase to health funding, and we will be investing all of

the $1.3 billion in new federal health dollars over the next three years to

improve health care.

I think

it's important to again point out that our health spending in this province

exceeds all revenues from personal income taxes, provincial sales taxes and MSP

premiums. We are modernizing our health care system and moving towards a

sustainable, patient-centred system for future generations. We are bringing

better care to patients and vulnerable citizens.

I'm happy

to recognize that our government will now increase the earning exemption for

people in the Human Resources ministry's persons with disability category from

$300 to $400. I am pleased to recognize that the plan G for the specific

Pharmacare program for people with mental illness will be protected as a result

of changes our government is making in the Pharmacare system. We are modernizing

the Pharmacare system to make it more fair and sustainable.

Under the

old plan, many families with low income paid more for their prescription drugs

than those with higher incomes. The new Fair Pharmacare program ensures that

financial assistance is available to those who need it most. With access based

on families' ability to pay, the lower a family's income, the more financial

assistance government will provide. So 280,000 low-income families and seniors

will pay less than they do now. For the first time, young families with lower

incomes will be supported in their drug costs. Under the Fair Pharmacare program

over 1.3 million B.C. families and seniors, or 84 percent of all families in

British Columbia, will pay the same or less for their prescription drugs.

B.C.'s new

Fair Pharmacare program will cover 47 percent of the drug costs, higher than the

national average and the second most generous program in Canada. Pharmacare

costs have increased by 147 percent in the last decade, and with the changes, it

will increase to $8.7 million per day by 2021. The Fair Pharmacare program will

come into effect as of May 1.

In the area

of mental health and addiction we are going to be continuing on our path of

improving and modernizing the health care system. In mental health our

government will continue to implement evidence-based best practices. We are

going to continue to develop the provincial mental health tertiary services, and

we are going to continue to support health authorities in implementing an

evidence-based, integrated community mental health infrastructure.

[1615]

In 2002 our

government released many good policies and best-practices documents to improve

mental health. These included guidelines for elderly mental health planning and

supporting families with parental mental illness. We completed a peer support

resource manual and a guide for early psychosis.

On October

31 our Premier publicly announced the release of British Columbia's first

provincial depression strategy and A Provincial Anxiety Disorders Strategy

report. Our Premier lent his efforts to the release of these reports because he

knows that anxiety disorders and depression are the two most common prevalent

illnesses in British Columbia, and that they have been virtually ignored by the

previous government.

Our Premier

also participated in the Bottom Line Conference organized by the Canadian Mental

Health Association and the business community of British Columbia, because the

numbers show that it's likely that one in five of us will be touched by mental

illness in our lifetime. With numbers like these, there is no question that it

will affect our workplace. If one were to ask employers what their most valuable

assets are, most would say it's the people who work for them.

When one of

these people develops a mental illness like depression or an anxiety disorder,

they are often afraid to get help. Only half of those who suffer from depression

seek treatment. They may not even know they have a mental illness. They may fear

losing the

[ Page 5044 ]

respect of their colleagues and employers. They may even fear losing their

jobs. The fact that the average workplace does not support and nurture those who

have suffered from a mental illness is a problem that allows the illness to go

untreated, and it's a problem that's costly to employers.

We need to

remove the stigma from mental health. That is one of the reasons why our Premier

was there. He's the only Premier in this country and in the whole Commonwealth

who has recognized the importance of mental health in the workplace and in

government services.

Clinical

depression is a major health challenge for us. It kills as many persons in our

province as we lose due to motor vehicle accidents. Depression and anxiety

disorders account for more than 30 percent of all disability claims. It's the

fastest-growing category of disability claims. At present depression is the

second-highest reason for disability claims. Within 20 years in Canada we expect

it will become number one.

Employers

need to understand that people with mental illness have a physical illness no

different from a disease like diabetes or arthritis. Just like any other

physical illness, with the proper treatment and a supportive environment and

employer, an employee can remain a productive, creative and important member of

their team. The very best thing we can do is provide a tolerant and respectful

workplace where people are not afraid to talk about mental illness. Then they

are more likely to seek treatment before the illness becomes serious.

Early

intervention gives people a chance to learn effective techniques that will

manage their symptoms. It can prevent mental illness from becoming chronic and

disabling. It will protect the employee's health, and it will also improve the

employer's bottom line.

In today's

economy, good mental health is crucial for success. Mental illness is often a

hidden problem. Workers who suffer from the symptoms of mental illness may not

even realize what's wrong with them. If some of your valued employees are

struggling with their untreated depression or anxiety disorder, that's what you

will probably see. They may call in sick more often. They may even be late for

work. They may have trouble making decisions or concentrating on their work.

They may be masking their symptoms by consuming more alcohol. They make more

mistakes and have more accidents. They may be less productive, less eager and

less dependable. You may even notice behaviour changes that seem to be out of

character. Employers should seek help when they notice these symptoms.

[1620]

Part of

this conference's message, which the Premier was able to convey, was that we

should be respectful. We are challenging every other province to do the same

thing. Next year we will be working with the business community to have mental

health as a part of their workplace.

Our Premier

has taken the lead in improving mental health in this province. He recognized

the need to give mental health an equal status in the health care system, and he

ensured that the need would be addressed by appointing a minister of state for

the first time in the Commonwealth.

We plan to

continue implementing evidence-based best practices with key system-wide policy

initiatives, including phase 2 of our depression and anxiety disorder strategies

and a mental health and addiction information plan for individuals, families,

professionals and sectors of the public.

There will

be 42 tele–mental health sites for completion by March 31, 2003. They will

link communities of the heartlands with primary mental health sites and expand

education and consultation to clinicians. Our government is working on material

that will include best practices on mental illness and developmental

disabilities and best-practice guidelines on reproductive mental health. We will

also be releasing a resource handbook for first responders and health care

professionals that work with offenders with mental disorders.

Our

government is continuing to redevelop and enhance provincial mental health

tertiary services. With the Riverview redevelopment project, we will continue to

move patients from the outdated institutional setting at the Riverview Hospital

to modern home-like facilities that we are building all over the province with

our $138 million capital plan. These new facilities are far more conducive to

good mental health.

In these

facilities that we have opened in the past year, we are seeing dramatic

improvement in patient health. We contributed over $3 million in transition

funding to this project to ensure that the patients' transitions were

successful. Unlike the past, no patient will leave Riverview Hospital, as a part

of this redevelopment project, without a transition plan or secure placement.

When this

plan is completed in the year 2007, we will also see an addition of 108 tertiary

beds beyond the amount that was in Riverview Hospital. Like other provinces, we

are moving away from institutional care, but unlike other provinces, we are

doing it without losing capacity. In fact, we are increasing the capacity.

We opened

the Iris House facility in Prince George in April of 2002, and we opened Seven

Oaks in Victoria in October. This April we expect to open two new residential

rehabilitation facilities in Kamloops. As many as 50 new health care

professional and support jobs are being advertised at present for this facility.

Kamloops is

a place where a promise was made by many political parties, but we are the only

party who is fulfilling that promise. Within the next two years the Kamloops

psych project will bring more than $14 million in construction activity to

Kamloops, and this will result in as many as 160 new health care jobs.

We will be

opening an expansion of Iris House in Prince George shortly. This year another

facility that will provide a better home than Riverview Hospital will be opening

on Vancouver Island. Each facility we open will not only provide better care for

patients, but they will also increase the capacity outside the lower

[ Page 5045 ]

mainland to provide services to patients in their home regions.

[1625]

In 2002 and

2003 our government provided over $15 million to increase community mental

health services in health authorities. Throughout 2002 and 2003 health

authorities have continued to improve community mental health services.

I would

like to note a few specific examples of improvements in the mental health care

system. This year the interior health authority is opening the first-ever youth

psych unit in the interior. This will serve youth aged 12 to 17, and it means

that youth in the southern interior will no longer have to receive treatment at

the adult psych centres in Kamloops, Trail, Cranbrook, Vernon, Penticton and

Kelowna. The Vancouver Island health authority is developing a new crisis

stabilization unit for persons with mental illness at the Royal Jubilee Hospital

in Victoria.

A few weeks

ago, along with my colleague the Minister of Children and Family Development, I

presented the first-ever provincial child and youth mental health plan. Children

are most important for our province. In children, mental disorders supersede all

other health problems in numbers of children affected and the severity of

impairment caused. In British Columbia an estimated 140,000 children and youth

experience mental health disorders. That causes significant distress and impairs

their functioning in every aspect of their life. There's an average of four to

five children in each classroom in this province.

Mental

disorders can cripple a child's functioning at home, at school with peers and in

the community. Children with a mental disorder have a higher incidence of

quitting school. They are more likely to face alcohol and drug addictions. They

are more likely to come into conflict with law enforcement. They face social

isolation and discrimination. Sadly, many commit suicide as a result of a mental

disorder.

Can you

imagine the impact of mental illness on an individual? Can you imagine having a

mental illness as a youth? Can you imagine the impact of mental illness on

families? That's why this plan that we have established will coordinate

community-based mental health services for children and youth and will focus on

early identification of children at risk.

For

children and youth with mental illness we will see improved transition to and

from the community-based system and the acute care system, and we will see

improved transition from the youth services to an adult system. Our government's

plan will go a long way to improve the lives of many children and youth who have

a mental illness.

We are also

seeing a significant improvement in addiction services in this province. In

April of 2002, for the first time in British Columbia, our government moved

addiction services into the regional health care delivery. Addictions are an

illness. Addiction services are now appropriately placed in the health care

system. Also, 50 to 70 percent of people with a mental illness have a concurrent

substance abuse disorder, so we merged addiction and mental health services to

provi