2002 Legislative Session: 3rd Session, 37th Parliament

HANSARD

The following electronic version is for informational purposes

only.

The printed version remains the official version.

Official Report of

DEBATES OF THE LEGISLATIVE ASSEMBLY

(Hansard)

THURSDAY, FEBRUARY 28, 2002

Afternoon Sitting

Volume 3, Number 16

CONTENTS

Routine

Proceedings

Page

Introductions by Members

Statements (Standing Order 25 B )

St. David's Day

M. Hunter

Greater Victoria Harbour Authority

J. Bray

Hammond Cedar mill

K. Stewart

Oral Questions

Kootenay Lake ferry service

J. MacPhail

Hon. J. Reid

Funding for inner-city schools

J. Kwan

Hon. G. Hogg

Tuition fee freeze

I. Chong

Hon. S. Bond

School district accountability

K. Krueger

Hon. C. Clark

Availability of Women's Equality minister

J. Kwan

Hon. L. Stephens

Maintenance of northern B.C. highways and roads

B. Lekstrom

Hon. J. Reid

Petitions

J. Kwan

D. MacKay

W. McMahon

K. Manhas

Budget Debate (continued)

B. Kerr

Hon. G. Abbott

H. Bloy

K. Manhas

E. Brenzinger

K. Johnston

A. Hamilton

K. Stewart

Hon. R. Neufeld

P. Bell

[ Page 1385 ]

THURSDAY, FEBRUARY 28, 2002

The House

met at 2:03 p.m.

Introductions by Members

Nuraney: Mr. Speaker, I have great pleasure in introducing two of my

visitors who are here with us today. One is a young lad, Alim Somani, who is

here in the House for the first time with his mother, Salma Mawani. Please join

me in making them welcome.

Visser: On behalf of the Minister of Sustainable Resource Management, I'd

like the House to welcome 47 students from Georges P. Vanier Secondary School in

Courtenay and their teacher, Dave Neill.

Hon. C.

Hansen: If I can just add to the introduction of the previous member, I was

a bit taken aback because that's my alma mater. I graduated from Georges P.

Vanier Secondary School in Courtenay. Welcome as well.

An Hon.

Member: So you did graduate?

Hon. C.

Hansen: I did graduate — honest. My picture's on one of those walls, with

the glasses.

[1405]

intention on standing up at this point, Mr. Speaker, was to introduce two

representatives from the Canadian Diabetes Association who are here today: Mr.

Warren Williams, a president of the Canadian Diabetes Association, and Peter

Fairey, advocacy chair for the Canadian Diabetes Association. Today is Diabetes

Awareness Day in the Legislature, and I hope all MLAs and staff take the

opportunity to meet with them and learn more about this illness that is

affecting so many British Columbians.

J. Bray:

I have a couple of introductions today. First, it's my pleasure to introduce

a couple of constituents of mine up in the gallery: Jean Parker and Judy Paine.

Both Jean and Judy worked very hard during the election campaign. I'd ask the

House to please make them welcome.

Secondly,

I'd like to introduce John Sanderson and his wife, Sandra Atkin. John is the

director of the Greater Victoria Harbour Authority and is also the chair of the

Victoria-Esquimalt Harbour Society. John represents a number of community

leaders and volunteers who are working very hard to promote a vibrant local

harbour authority in our city. I'd ask the House to please make them welcome.

Statements

(Standing Order 25

b) ST. DAVID'S DAY

Hunter: I think all of us in this House are proud to be part of a

multicultural British Columbia. Today I want to recognize the culture of Wales,

one of the many that is part of the B.C. mosaic but one that usually gets little

attention. Tomorrow, March 1, is St. David's Day. St. David is the patron saint

of Wales. People of Welsh origin have celebrated St. David's Day for centuries.

Many British Columbians with Welsh roots will celebrate this special day

tomorrow.

Why would

Wales and things Welsh are very much a part of my family life, since my wife's

family is from the heart of the South Wales coalmining area. Also, for anyone

who has ever heard the incredible harmony of a Welsh male choir or for any

sports fan who has watched the Welsh Rugby Union team in full flight, you know

how passionate Welsh people can be.

St. David

is reputed to have drunk nothing but water, but I can tell you with authority

that this example is not well respected in modern-day Wales. If you don't

believe me, try offering a Welshman a pint of water after a rugby match. On the

eve of St. David's Day, I want to recognize the contribution that Welsh

immigrants have made and continue to make to our province and wish every Welsh

Canadian a great day tomorrow.

GREATER VICTORIA HARBOUR AUTHORITY

J. Bray:

It's my pleasure to be able to speak about an exciting new undertaking in

Victoria. The Greater Victoria Harbour Authority was brought into official being

earlier this month. This signals a major step forward in Victoria's desire to

have local management control over one of our greatest assets, Victoria harbour.

A viable,

sustainable, working harbour represents many opportunities for the capital

region. By divesting federal, provincial, regional and local properties to one

group to manage, the harbour authority will be able to develop long-range plans

for the betterment of economics, aesthetics and the environment. The authority

will be made up of representatives from the Songhees and Esquimalt first nations

and seven municipal and business groups. This is a historic agreement that

recognizes two first nations groups, government to government.

Local

management will help ensure that significant harbour assets, such as Ogden

Point, Fisherman's Wharf and the lands outside the Legislature on Wharf Street

and Government Street are utilized to their maximum capabilities. The harbour

authority will move forward exciting projects such as improvements to the

Belleville Street terminal, which greets thousands of tourists to Victoria every

year, many of them from the United States.

This year

we will have 114 cruise ship visits at Ogden Point, an increase of over 64

percent from last year. The harbour authority will manage proposed changes to

the wharf complex to further enhance our cruise ship potential. There is an

increase from one to

[ Page 1386 ]

four major cruise ship maintenance contracts being managed this season alone

in Victoria, which will bring high-paying, high-skill jobs to Victoria.

All these

facts point to the significant impact a vibrant working harbour has on the

economy of Victoria. Victoria has the lowest unemployment rate in British

Columbia. We have momentous growth in retail sales. We're projecting exceptional

growth in tourism. Our high-tech sector is one of the fastest growing in Canada.

Victoria is

the economic growth leader of British Columbia. The completion of land transfers

to the Victoria Harbour Authority is another successful step in furthering

Victoria's leadership potential. I ask this government to give its full support

to the Victoria Harbour Authority as it works to bring economic, aesthetic and

environmental vibrancy to our jewel, Victoria harbour.

[1410]

HAMMOND CEDAR MILL

Stewart: It's my privilege today to bring forward a good-news story about

our forest industry. Recently the Interfor company, which has the Hammond Cedar

mill in my riding of Maple Ridge–Pitt Meadows, has committed to $5.3 million

for capital reinvestment in their sawmill. International Forest Products will

undertake a major upgrading project at its Hammond mill operation in Maple Ridge

to modernize the facility and improve its competitiveness through this large

upgrade.

A few

comments by the vice-president of the Cedar operations, Mr. Jack Draper, who

said that recent cost-cutting reduction and productivity improvements

implemented by the Hammond employees were prerequisites to obtaining funding for

this project. He goes on to say — I'm sure something that will please our

Minister of Forests — that "combined with the optimism created by the

provincial government's commitment to policy and regulatory reform, this has

given us some confidence to reinvest." Draper added: "But this is just

one more step in the process. Changes to the stumpage system and other

regulatory changes can't come fast enough."

Peter

Edwards, operations manager, said: "The steps we're taking will improve the

safety of our employees, increase lumber-sorting capacity, enhance processing

efficiencies and allow us to produce a higher-value product." He also said

that this $5.3 million upgrade has started immediately and is expected to be

completed by mid-July.

Hammond is

the world's largest cedar sawmill, and it produces a high-quality wood product

from a very well managed B.C. forest. This mill has been in operation since the

early 1900s. I myself worked in the sawmill. My father and my brother also

worked in the sawmill. There are many youths that I grew up with, in high

school, that are still working in this mill. It's provided long-term employment

and stability for our community for many years, and they've made the decision to

continue, with some new investment.

Oral Questions

KOOTENAY LAKE FERRY SERVICE

MacPhail: Yesterday in the House we asked the Minister of Forests about his

failure to achieve an exclusion for western red cedar that would put 10,000

forest workers back to work. Today we want to talk about another group of

British Columbians who live in the interior and whose livelihoods have been

threatened by this government's reckless agenda. The question should really be

asked by the member for Nelson-Creston, but he's spending more time in hiding

than fighting for his constituents, so I'll ask the Minister of Transportation.

How does she propose that the citizens of Harrop and Procter get to their jobs

now that their ferry service has been cancelled by their government?

Hon. J.

Reid: The ferry service is still in existence for those communities. Ferry

service is integral to communities. We have pressures on our finances, and we

have to make sure that there's money available to operate those ferries. We're

working with those communities to address savings that are possible, and we've

already had good dialogue for a number of communities. We want to make sure that

they do have access, and that access is continued. It doesn't stop.

Mr.

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

MacPhail: Well, in fact, the Minister of Transportation should read her own

website because the service is cancelled every night now between 11 p.m. and 6

a.m. Every year someone from the government….

Mr.

Speaker, I'm sorry. If the Minister of Forests wants to ask a question, feel

free. Maybe the member for Nelson-Creston can stand up. Every year…

Interjection.

Mr.

Speaker: Order, please.

MacPhail: …someone from government goes to Treasury Board and comes up

with a harebrained plan to change the service on Harrop and Procter. Every year

until now, the local MLA has said that's ridiculous, and the cost-cutting

exercise is worse than what the benefits are from continuing the service — but

not this year. Now the service is cut in the evenings from 11 p.m. to 6 a.m.,

and there are 130 people who live in Harrop and Procter who do shift work —

130 nurses, mill workers, firefighters who now can't get to their jobs because

this government has cancelled ferry service across Kootenay Lake.

Again, to

the Minister of Transportation: what does she suggest they do — pick up their

families and move,

[ Page 1387 ]

quit their jobs, collect social assistance? Or perhaps they could swim across

between 11 p.m. and 6 a.m.

[1415]

Hon. J.

Reid: I find it very interesting, the perspective on ferries that the member

opposite has. But….

Interjections.

Mr.

Speaker: Order, please. Order, please. Order, hon. members. Order. Order.

The Minister of Transportation has the floor.

Hon. J.

Reid: Thank you, Mr. Speaker.

This is a

serious issue for these communities. These aren't 24-hour-a-day services. They

don't run 24 hours a day, so we do have the adjustment in the service hours.

We're working with those communities. The communities have brought several

different suggestions forward. We are working with the communities and meeting

with them. I was up there last weekend meeting with the people and discussing

what the alternatives can be. There are alternatives in services hours. There

are alternatives in service, and we're exploring that with the communities. We

do understand the importance those communities have with ferry service, and

we'll continue to work with them.

FUNDING FOR INNER-CITY SCHOOLS

J. Kwan:

For weeks parents and educators have been organizing to fight this

government on their proposed cuts to inner-city funding. They've written

hundreds of letters. They've held community meetings. They have put pressure on

their local MLAs to get government to rethink this incredibly mean-spirited cut.

This

morning the member for Vancouver-Burrard said he was very optimistic that the

inner-city school funding would be reinstated by the government. That's very

good news indeed, if it is true. To the Minister of Children and Family

Development: can he inform the parents and the students of the inner-city

schools that funding will be reinstated for their schools?

Hon. G.

Hogg: I can inform the member that this government has put $11 million more

into early childhood development to ensure that we spend money where it's most

appropriately spent.

The

research is very clear about where we can have the biggest and most appropriate

impact and effect in terms of being able to help those who are socially and

economically disadvantaged, and that's in the first six years of life. This

government has expanded its spending in that area by over $11 million.

Secondly,

we've been working with the school boards around the issues of early childhood

development and around the issues of the socially and economically disadvantaged

within the school system. We're working with the school boards to give them more

flexibility so they can utilize the dollars they have far more effectively than

they've ever been able to do in the past. They can have that within the context

of an envelope that lets them focus on those people within their schools who

have the greatest need, rather than being dictated out of Victoria. You have to

put those into little, simple envelopes. We are working with them so they can do

and provide a better job and ensure that the dollars go to those who are most in

need.

J. Kwan:

Inner-city school funding goes directly to support programs for the

province's most needy and the poorest children — children who live in poverty

and for whom this funding will make a difference to their educational outcome.

Quite frankly, the answer is not good enough, minister. It is not good enough

for the kids and the parents who live near the inner-city schools.

The member

for Vancouver-Burrard today said that parents and educators should not be

worried and that the government will back down and reinstate funding to the

poorest children in the province. To the minister once again: will that funding

be fully reinstated to support inner-city students in the province? Why would

the member for Vancouver-Burrard tell parents not to worry if the government

actually has no plans to reinstate those funds? Why would the Vancouver school

board write a letter to the minister urging the minister to make sure that

funding is in place for the children who need it the most?

Hon. G.

Hogg: I'll try and remember all four or five of those questions that were

put forward.

[1420]

To the

member once again: there was $43 million put into this envelope before. When we

look at the packages we're putting in, we're actually expanding the numbers that

are going to deal with the socially and economically disadvantaged to about $48

million. There's been an expansion in the overall funding that will go to help

those people who are most economically and socially disadvantaged within the

context of the school system.

Mr.

Speaker, the hon. member showed a letter which I can't read from here, but I

assume it's one of the letters that we've been talking to some of the school

districts about. The school districts are saying that in the past, under the

last government, they were very limited in their ability to be able to use those

dollars. They had them in tight, tight envelopes that told them how they had to

respond to the needs within the context of their school districts.

Consistent

with the direction of this government to give school boards more authority, more

responsibility and more ability to make decisions around the children who are

most in need, we are moving forward with that so school districts can make

decisions around the greatest needs that exist within their wide range of

schools. We are doing that, and school boards will be able to respond to those

children who have the greatest economic and social disadvantages and respond to

them effectively so that we can ensure that they are best able to meet the

educational needs and demands they have — far more than was given in the last

government.

[ Page 1388 ]

TUITION FEE FREEZE

Chong: Mr. Speaker, I would like to ask a public written question submitted

by Michelle Kinney, director of services, University of Victoria Students

Society, to the Premier. The question is as follows: "Mr. Premier, will you

today release publicly the evidence upon which you based your February 13

televised assertion that the tuition fee freeze has caused students to 'finance

a whole extra year in school'"?

Hon. S.

Bond: I am pleased to be able to answer Michelle's question. The great news

is that all of that information is already public.

We have

done a number of things, including consulting with educators, students and

administrators across the province. The results of that particular consultation

are found on our website. There are many stories there about students who faced

individual circumstances in terms of the timeliness of their completion.

In addition

to that, we looked at a number of studies done — in particular the B.C.

colleges and institutes student outcomes, Simon Fraser University undergraduate

students survey and the baccalaureate graduates survey from 1998 — which

indicated the concern about the ability to complete in a timely manner. We're

happy that the information is already public.

SCHOOL DISTRICT ACCOUNTABILITY

Krueger: To the Minister of Education, there's been concern in the past that

school districts have not been held particularly accountable for the public

dollars that they spend on children's education. I'd ask the minister to tell

the House what our government will be doing to ensure that school districts

indeed are accountable for the funds they're entrusted with.

Hon. C.

Clark: The member will know that this government is committed to giving more

autonomy to school districts to entrust them with the obligations that they have

under the law allowing them to spend the money they're given in the way that

meets local priorities. In exchange for that, though, we are building in new

systems of accountability for school districts. We need to know that the checks

and balances are there and that the money is being spent well.

There's a

couple of things I'd point to: first, accountability contracts. We have entered

into an accountability contract with every district in this province this year,

and we will be doing that next year and the year after. Every one of those

contracts will contain very specific goals for a results-oriented education

system, a system where we set goals for where we want to go based on the results

that our kids get, and we hold ourselves accountable for reaching those goals

year after year.

In addition

to that, hon. Speaker, I will be announcing tomorrow a new funding formula for

school districts which will be open and transparent and population-based. It

will be one that's understandable to the public so that citizens, taxpayers and

parents will know where their money's being spent.

Third, I am

bringing in a regulation which will require school districts for the first time

to report publicly about how they are allocating their resources in their

districts.

Mr.

Speaker: Thank you, hon. member.

[1425]

Hon. C.

Clark: Lastly, hon. Speaker, I would add that parent, student and teacher

satisfaction surveys will be conducted year after year so that we know how

parents feel about our education system, and we can use that information to

improve it every single year.

AVAILABILITY OF

WOMEN'S EQUALITY MINISTER

J. Kwan:

This question is for the Minister of State for Women's Equality. Can she confirm

that she's refusing to meet with stakeholders unless they agree not to talk to

the media before and after the meeting and they promise not to make the minister

angry?

Interjections.

Mr.

Speaker: The Minister of State for Women's Equality. Please proceed.

Hon. L.

Stephens: I am happy and more than willing to meet with any of the women's

organizations in this province. I have said that quite clearly. The invitation

is out there. If organizations decide to cancel at the last minute, that's

perfectly acceptable for them as well.

Mr.

Speaker, to the members opposite: they could really assist this government if in

fact they were truly interested in the equality and advancement of women. Those

two members opposite could certainly be helpful, but they've chosen not to do

that. I would suggest to you that the reason for that is because they don't care

about the women of this province, and their actions demonstrate that today.

MAINTENANCE OF NORTHERN B.C.

HIGHWAYS AND ROADS

Lekstrom: My question is to the Minister of Transportation. Many of the

roads and highways in my constituency are in desperate need of repair. Unlike in

urban communities, roads are usually our only means of transportation. Can the

Minister of Transportation tell my constituents what steps she is taking to

improve the quality of our roads and highways in the northeast part of this

province?

Hon. J.

Reid: The roads are in serious condition. I was certainly able to see that

last spring and again this winter when I was up in the area. I've met with a

num-

[ Page 1389 ]

ber of groups who have expressed their concerns and who have presented

excellent material. In very difficult fiscal times I'm happy to say that over

$101 million will be spent on northern roads in this next year. That's on top of

the maintenance that already exists. That's with capital works, the oil and gas

initiative as well as rehabilitation for those roads.

[End of question period.]

Petitions

J. Kwan:

Mr. Speaker, I seek leave to present a petition.

Mr.

Speaker: Please proceed.

J. Kwan:

I have a 523-name petition here in the form of a letter addressed to the

Minister of Children and Family Development regarding the detrimental effects of

the cuts to inner-city school funding that would impact early literacy and

prevention programs, in-school counsellors, academic support and resources,

recreational programs, multicultural workers and translators, early intervention

initiatives and outreach support to families.

MacKay: I wish to file a petition on behalf of the residents of Atlin, a

small community in the northwest part of this province.

Many of the

people that have signed this 111-signature petition live in Atlin, and many live

outside the country. They have expressed concern about the development of the

Tulsequah mine. I'd like to file this petition.

McMahon: I rise to present a petition on behalf of the 4,379 residents of

Kimberley and surrounding areas who are asking that health services for acute

and emergency care be maintained at the Kimberley and District Hospital.

[1430]

Manhas: I rise to present a petition brought forward to me by Dr. Mark

Slater and his office in Port Coquitlam, signed by a number of folks in my

community regarding chiropractic services in the province.

Orders of the Day

Hon. M.

de Jong: I call reply to the budget speech, Mr. Speaker.

Budget Debate

(continued)

Mr.

Speaker: Budget debate continues with the member for Malahat–Juan de Fuca.

B. Kerr:

It's time to take up where I left off. I know I was reading some rather boring

statistics, being the chartered accountant that I am, but there is such a

shining beacon of light on the hope that we have for this province.

There is

one shoal they mention on the journey to this beacon of hope, and that's the

ability to attract and retain high-calibre employees; 86 percent of the

chartered accountants said that's one of the most difficult things they have.

Indeed, the high personal tax rates under the NDP were a serious impediment to

attracting employees in the last decade, and the personal tax cuts were

necessary in order to keep and attract highly skilled people in this province.

That's the chartered accountants of British Columbia, Mr. Speaker.

You see,

these are the business leaders. These are the people that believe there's hope

for their province. These are the people that want to move the province forward.

These are people that want to increase investment in the province. I am glad

they are able to provide these statistics to me, because I truly think they are

a shining beacon of light.

This was

done after the problems we had, after March 31. We saw that that was the date

that they determined the American economy went into a recession. This was after

the pine beetle infestation. It was after the softwood lumber problem, and it

was after the tourist problems we had because of 9/11. They still had that

feeling — considerable hope for this province. It's got nowhere to go but up.

What else

has happened? Consumer sales have gone up. Housing starts have gone up. Housing

sales have gone up. My colleague here said that there's going to be a 64 percent

increase in cruise ships coming to Victoria. There's been 27,000 new jobs added

to the economy. This is after the problems we've had. Clearly, the initiatives

we've been taking are doing everything to achieve that one goal we have, which

is revitalizing the economy.

Now I'd

like to talk about the budget. Rather than getting into the budget at this time,

I'd like to talk about the process of budget-making, because I think that was

truly unique in British Columbia and something that hasn't been done before.

Everybody was involved in the making of this budget.

[1435]

I mentioned

to you about the various legislative and caucus committees that were formed.

Well, I had the fortune to be on the Finance Committee. The Finance Committee is

charged with the responsibility of travelling throughout the province doing a

prebudget consultation to go back to the Minister of Finance and say:

"Here's what the people in British Columbia thought we should have in the

budget." And we did. We went from small communities to large communities

throughout the entire province, and we had hundreds of submissions. We listened

to a number of verbal presentations to us, and people were saying the same

thing: the status quo wasn't acceptable. Stay the course with what our plan was,

according to the fiscal review panel; continue to take the initiatives we were

taking, but protect the most vulnerable.

[ Page 1390 ]

Mr.

Speaker, I'm happy to say that we took that back to the Minister of Finance, and

that's what this budget did. It did exactly that, but more importantly, the

caucus committees were involved in the budget process, because every ministry

had to determine a three-year working plan. That three-year working plan wasn't

done in isolation. It was taken to the caucus committees. The caucus committees,

made up of all the members of the government caucus, reviewed these plans, made

suggestions and sent them back to the ministry. They came back down, and it was

truly a working document. The plans that were presented with the budget were the

workings of the caucus committees along with the various ministries to show what

they're planning on doing for three years.

In addition

to that — which I don't think has been done before; a three-year plan —

there are some benchmarks and some accountability, because without benchmarks

and accountability your plan doesn't have a hope of succeeding. The benchmarks

were set out for everybody to look at. The measurement tools were there, and

more importantly, there was accountability to the ministers themselves, because

a good portion of the ministerial salary relates to accomplishing the

objectives. I think that's critically important, because now they're putting

their pocketbooks where they say they want the province to go. I think that's a

very important feature of this budget. The fact that it's a three-year working

budget, the fact that people know what's happening, know what's expected of

them…. We can review it and make the changes necessary to keep ourselves on

the course to prosperity.

Now, what

of the budget itself? Well, I mentioned that some circumstances had changed

along the way. We did everything in our power to revitalize the economy. We've

had some major hurdles or some major shoals that we've hit on this journey, and

that's caused a deficit, which I find is just horrible. I got involved to get

rid of the deficit, not to have one, but we were left with no choice. The

revenue went down. The revenue dropped considerably for a number of reasons that

I mentioned earlier, but the expenses were still up there.

It was a

difficult time for us to change those expenses. You can't shift the ship

overnight, so we were stuck with a number of expenses — expenses that weren't

even included, that we weren't even aware of at the time we took over in

government. We were left with a $4.4 billion deficit, but because we recognized

that and we recognized the problem, and we have the three-year plans, we know

that by year 2004-05 that budget will balance. So I can live with the deficit. I

certainly couldn't live with it if we didn't have a balanced budget down the

road.

What did we

do in this budget? We increased health care spending. We found that was vital,

because I mentioned earlier on that the two things people told me were to fix

the economy and to protect our health care. We found that with the increased

salary for nurses and the increased salary for the doctors, we were forced to

increase the health budget, and we did that. We're not cutting; we are adding to

health care in British Columbia.

We reduced

the income tax threshold for small business, because again — make no mistake

— it's the small business that's the engine of this community. We have small

business tax, and the small business tax used to go to $200,000. It clicked in

just as if you were a large business. We've now increased that threshold to

$300,000. Now, for any income under $300,000, you'll be considered a small

business and have the small business tax rate, which is one of the lowest tax

rates in Canada. That should help stimulate the economy.

I should

say, for people who may not understand, that when we're talking about profits,

profits are absolutely, vitally necessary for a company to exist. A company

cannot exist without profits, because without profits you cannot expand, you

cannot increase your capital purchases, and you cannot buy additional inventory.

Profits aren't something that somebody just takes home and lives off. Profits

are needed inside the business to make it survive. We've done that. We've

revitalized that area by increasing the ability of small businesses to stay and

to grow.

[1440]

I mentioned

to you about protecting the most vulnerable, and we've done that in a number of

areas. We've increased the tax credit to the most vulnerable people, and

particularly in a situation where we were forced to increase the sales tax by

half a percent. When we did that, we had to take into consideration that there's

no sales tax on goods for children under the age of 15, there's no sales tax on

groceries, there's no sales tax on your mortgage, and there's no sales tax on

interest. People are not paying sales tax on the necessities of life.

More

importantly, we actually increased the tax credit to people on the low end of

the income bracket. We've increased that by 50 percent to $75. We've increased

for the most vulnerable in that area, and we've turned the sales tax — what a

lot of people say is a regressive tax — into actually a progressive tax in

that as a consumer tax, the people who spend the most on consumer goods are

going to pay the most tax. The people who spend less money on discretionary

consumer goods will pay the least amount of tax. I believe that's a progressive

tax, and that's very good.

increased the tax on tobacco. That's called a sin tax. I saw somebody on

television on the night of the budget. It was a young girl. She looked like she

was maybe 20 years old, and she was bemoaning the fact that she would probably

have to quit smoking. That is great. That's precisely what we want. That's

serving two purposes. It's getting more people to quit smoking; and it's

increasing the revenue in the short term to help pay for our medical costs that

have been skyrocketing out of control.

These are

just some of the things. There are a lot more things in the budget. It was a

budget designed for the times, for the period we're in. I'm saying it's a

waypoint on this journey to prosperity, and I think it was the right budget.

[ Page 1391 ]

I would

just like to go into a couple of the press releases that came out from some of

the business people in town here to say what they thought of it. What did the

people think of it, and how's that going to affect the economy? I mentioned the

chartered accountants earlier on, so I'll say them first. They said: "We're

pleased that the government has addressed the small business tax threshold and

will strive to keep the corporate income tax rate competitive in the

future." That's what we have to be, Mr. Speaker. We have to be competitive.

"Finance

minister's provided the public with a budget process that should inspire

confidence in the numbers. While it may not be the sexiest part of a budget, the

bar continues to be raised on sound financial management in the province."

Those are just two of the comments.

I have a

press release here from the CGA, the Certified General Accountants Association.

They comment:

"There

is ample evidence that government is getting its fiscal house in order and

sending strong signals that B.C. is once again a province worthy of business

investment. The budget-making process is open and transparent. After a

decade in which government paid lip service to debt management, we now have

targets and a 2004-05 deadline to balance our books. These measures help

individual British Columbians understand the reasons for tough policy

choices, and they build confidence with our lending agencies and investors

abroad."

That's the CGAs' association.

The chamber

of commerce:

"The

B.C. Chamber of Commerce supports the government's efforts to lay the

groundwork for economic growth. Government commitment to economic change is

both obvious and commendable. In the short term everyone in B.C. is feeling

the pain, but that pain represents the investment that every individual and

every business in this province must make if we are to recover from the

damage of the past decade."

This is

from the Retail Council of Canada. I wasn't too familiar with this organization,

although I'm a retailer myself, and I'm probably a member. So I phoned up and

said: "Are you involved with big chains or small companies? What is your

constituency as the Retail Council of Canada?" They said that, no, the

majority of their members are small — what we would call ma-and-pa operations,

single locations. Those are the people that work the long hours, longer hours

for less money than employees do in fact — the owners of these small

businesses.

"Retailers

are always apprehensive when government action raises the cost of

merchandise to the customers, but they also recognize that every sector of

the economy is going to have to taste some bitter medicine as government

works to revitalize the economy, and retailers and the customers are no

exception."

The

Retail Council of Canada noted:

"In

spite of today's sales tax and medical service premium increases, the

average B.C. family still has more disposable income in their wallets as a

result of the 25 percent cut in personal income tax announced in June.

"Taken

together, we remain confident that the measures outlined in today's budget

will move British Columbia closer to a revitalized economy that will benefit

retailers and all British Columbians."

This is what we're talking about when we say we have to revitalize the

economy. This is the direction that budget has taken us.

[1445]

I would

like to conclude by paraphrasing the Minister of Finance when he concluded his

speech. This budget is about good government. It's about strong fiscal

management. It's about hope. It's about opportunity, and lastly, it's about

time.

Hon. G.

Abbott: I always rise with a certain amount of trepidation when I'm

following a speaker who's not only an MLA but also a chartered accountant. Of

course, there's the persuasive and perhaps irresistible combination of charisma

and quantification, which is a very hard act to follow indeed. It is with some

trepidation that I proceed here.

It is very

much a pleasure to rise in support of the budget today. I do so unreservedly,

despite — I think many members of the chamber have said it, and certainly the

Finance minister himself said it — that in some ways, in many ways, this is

not a happy budget. It's an unhappy budget.

Certainly,

none of us, when we sought election, was looking forward to a deficit.

Certainly, none of us was looking forward to a deficit as large as what we have

to contend with at the present day — an estimated $4.4 billion. I think we all

hope that it will come in well under that mark. Of course, none of us wants to

see deficits, and I'm happy to say, as the previous member noted, that we are

moving over a three-year plan to a balanced budget in 2004-05. It's unhappy, as

well, in that we are seeing some expenditure reductions. In many cases, those

expenditure reductions are right and appropriate and in the best public

interest, but certainly — and some will note this — they are a consequence

in some cases of the fiscal challenges the government currently faces. We do

have some challenges, and we certainly have greater challenges than I suspect

any of us guessed as we ran for election in the 2001 election.

What has

happened to make the job for the Finance minister and for this government even

more difficult? Among other things, we've seen a sharp drop in energy prices.

We've also seen a very sharp decline in the U.S. demand for energy, which was

unprecedented in 1999-2000. Those two elements have been very problematic in

terms of the budget.

We have

seen, since the election, some $500 million in revenues from Crown corporations

evaporate. Again, that blows a pretty big hole in any budget. It's $500 million

that had effectively been promised at the time of the last election but is

simply not there today.

We have

seen, particularly in the wake of September 11, the global economy slow. It

appears that it now has been reversed. I do hope, as I'm sure every member of

this House hopes, that in the very near future we

[ Page 1392 ]

will again be seeing the reappearance of world economy growth and, hopefully,

prosperity. Short term, we have some challenges that stem in part from September

11 and in part from the broader global slowdown.

As well —

and I think this is something that is particularly compelling in ridings like

the one I represent, Shuswap — the absence of a softwood lumber agreement has

been a huge problem for this province. The U.S. is by far the largest customer

for our lumber producers, and the restrictions and uncertainty around future

restrictions stemming from the softwood lumber dispute have jeopardized many

jobs. Certainly, thousands are out of work as a consequence of that. It also has

had a revenue impact for the treasury as well, and obviously the revenue impact

has been quite predictably a very negative one.

[1450]

Finally,

one thing we don't have, which allowed a previous budget to be balanced, is a

$1.4 billion one-time pension adjustment. That, as "one-time" would

suggest, was there only once. It's not something that carries forward. Again, as

a consequence, it's an issue which doesn't help us through the current budget

dilemma.

It's not

where we want to be in this budget, but it's where we have to be in the current

budget if we want to move ahead and if we want to restructure government.

Certainly, a large measure of that $4.4 billion in projected deficit is in the

restructuring of government. If we're going to achieve a balanced budget in

2004-05, as every member of the government is committed to, certainly we do need

to take these very difficult steps that we are currently involved with in this

budget. I believe that when we have undertaken the difficult steps we are

proceeding with, we will be an economy that is very much poised for economic

renewal, poised for recovery and poised for a new prosperity and opportunity in

this great province.

There is

additionally, in fairness, plenty of good news in the budget, and I think we

should note that. We have, as the Finance minister previously announced, made

very substantial tax cuts for British Columbians. These are much-wanted and

much-needed steps in making British Columbia a competitive economy once again,

and I'm very proud to be part of a government that has introduced tax relief to

British Columbians across the board. It's going to play a big

part in restoring

economic vitality to this province.

We have

also seen, through removal of tax on machinery and equipment and in a whole

range of other ways, tax reduction or tax elimination to B.C. business to make

British Columbia more competitive. Again, as the previous speaker noted, we saw

the former NDP government take us from the No. 1 economy in the country to the

No. 10 economy, if you don't include the Territories. I'm proud to be a part of

a government that is going to, I hope, in the very near future and hopefully

within the term of our government, see us again become the No. 1 economy in

Canada.

We've also

eliminated some job-killing taxes. The corporation capital tax is a classic

example of telling people: "Sure, bring your investment to British

Columbia, and the first thing we'll do is tax it." That was the philosophy

of the former government. Happily, we are seeing an end to that very regressive

tax, which a former NDP Premier said was going to be a temporary tax but which

hung on through the entirety of their two administrations.

As well, I

know all the ministers of government are actively engaged in finding ways to cut

red tape, as we committed to, by one-third over our term. It's a big job, but

it's already making a difference in our provincial economy and will continue to

make even more of a difference.

Finally,

one of the features of the current budget that I really like is that we have

increased the threshold for the small business income tax rate from $200,000 to

$300,000. I think that's just a huge step in the right direction for our

economy.

All of us

in this Legislature will be measured on the success of this budget and measured

on the success of the economic changes we have made and the reorganization of

government. We will be measured on all of that, appropriately, by our electors

on May 17, 2005. It's a long time away — I know that — but I'm actually

looking forward to that date. I believe that by the time May 17, 2005, rolls

around, we will again be the strongest economy in the country, and we will have

seen this province once again moving powerfully in the right direction.

[1455]

One thing I

do want to do today, Mr. Speaker, because I think it's something we need to do

on a regular basis, is thank my constituents in the Shuswap for once again

offering me the opportunity to serve them in the Legislature. Certainly, it has

been a great honour to serve here since 1996. One of the things we sometimes

forget or overlook is that remarkably few British Columbians ever have the

opportunity to serve in this assembly — remarkably few. In fact, I think that

since the entry of British Columbia into Confederation, even with the large

number of new MLAs that came into the Legislature in 2001, fewer than 1,000

British Columbians over the course of our history since Confederation have

enjoyed the honour of serving in this beautiful assembly. It is a

much-appreciated honour and opportunity.

Before I

got elected here in '96, I also had the opportunity to serve constituents at the

local government level. I want to use that as a bit of a theme here for a time.

In 1979 I was elected to the Sicamous waterworks district. In 1980 they formed

the Columbia-Shuswap regional district, where I served as a director and chair

of the board for 16 years and for six years with the newly incorporated district

of Sicamous. I certainly enjoyed a good long service at the local level as well.

There are

some very powerful lessons that can be learned from that service in local

government. One of the things we had to do each and every year, whether it was

at the municipality or at the regional district, was produce a balanced budget.

We weren't able to do anything other than balance our budgets. We are obliged,

in fact, by a provincial law to balance our budgets, and

[ Page 1393 ]

rightly so. Our government, of course, has committed to making that the law

for British Columbia as well. We'll see the first in an endless series of

balanced budgets starting in '04-05.

It wasn't

easy. I know we sat around the council table and the regional district table for

long hours looking for ways to achieve a balanced budget without curtailing

services and without introducing tax increases. It's a very tough job, but it's

something that the municipalities and the regional district representatives have

to do.

One of the

advantages local governments then enjoy, after making those difficult choices

about services and taxes and so on, as they move year to year, balanced budget

to balanced budget…. One of the advantages they clearly enjoy is that they are

not plagued by the debt-servicing costs which are associated with provincial

administrations that year after year, like the NDP, introduce nine consecutive

deficit budgets. The consequences of the additional debt-servicing costs are

very considerable. They chew very dramatically into our ability to deliver

services. In fact, if we were to continue along the NDP's path of deficit after

deficit after deficit, eventually those debt-servicing costs would erode our

ability to deliver even the most fundamental services like health and education.

I know my

constituents haven't enjoyed some of the very difficult expenditure reductions

we've had to make. I haven't enjoyed the very difficult expenditure reductions

we've had to make. Nobody does; nobody enjoys those. I think the old cliché

about short-term pain for long-term gain is certainly appropriate here. That is

precisely the kind of situation we face.

We can do

what's easy politically. We can do what is in the short term, perhaps,

politically popular and try not to touch any of the expenditure lines that we

have across all of our ministries. That's the wrong thing to do. That's exactly

the wrong thing to do, because what we will do over time, as we pile deficit on

deficit, is continue to erode our ability to deliver services in the long term.

[1500]

Certainly,

while not everyone may want to be holding celebratory dinners for us today, down

the line five years from now, as my kids become adults and my grandkids become

adults, the efforts we've made today as a government will, I think, be

understood and appreciated. They'll be understood and appreciated because the

ability of governments in 2010, in 2050, will be preserved. It will be preserved

because we're making the difficult steps today to achieve a balanced budget in

2004-05 and balanced budgets after that point. We won't see the continued

erosion of our ability to deliver services.

The only

way in which the debt servicing of municipalities is in any way limited, of

course, is around capital projects, which they themselves have approved as an

electorate. Why, I suppose one might ask, have municipalities been able to do

that and provincial governments have not? Again, it is curious that provincial

governments have compelled local governments to balance their budget, but they

haven't compelled themselves. Again, provincial governments — and I guess the

last NDP government was a classic example of that — simply weren't prepared to

impose the same kind of fiscal discipline on themselves that they were prepared

to impose on local government. As a consequence, we saw during the NDP's term a

doubling of the debt in this province. It took, I think, 120 years of provincial

governments to get us $16 billion in the hole. It took the NDP just ten years to

more than double the debt in this province.

It's time

— and certainly this budget commits us to it — to impose the same kind of

fiscal discipline on ourselves as we have seen imposed on local governments.

We've had to make some difficult choices, and we've had to make many of the

difficult choices that confront municipalities and regional districts as they go

about their budget processes every year. Because we've come from a place where

governments have been dramatically overspending, it's been particularly tough,

but I am proud and grateful to be part of an administration that has committed

itself to doing precisely that.

One of the

things, I think, that should be noted with respect to this budget is that we

have not attempted as a government to download our fiscal challenges onto local

government. Now, who would have done a thing like that? Well, the former

government would have done a thing like that. Really, when it comes to managing

fiscal pressures and managing these very compelling fiscal challenges, there are

a couple of different models out there of how to proceed.

I want to

spend just a moment to tell you about how the former government, the NDP

government, proceeded back in late 1996 — November of 1996. I remember this

very clearly, because I was the opposition Municipal Affairs critic at the time.

What we saw in November of 1996 was an announcement one day — certainly

without any kind of consultation, without any kind of discussion, without any

kind of notice — by the NDP administration that they were meeting their fiscal

challenges by unilaterally cutting $113 million in local government transfers

— $113 million taken out of those local government transfers overnight, no

discussion.

[1505]

That

download — that ripoff of $113 million — was not only, I think, morally

wrong given that the municipalities were midway in their budget processes, but

it was also legally wrong. In fact, it was entirely in breach of

an act that the

NDP had only recently put into place, called the Local Government Grants Act,

which was supposed to provide certainty and predictability in grants from the

province to local governments. It was entirely in conflict with that, entirely

in breach of that. In fact, the former NDP administration had to come back the

next session and enact, retroactively, changes to the Local Government Grants

Act to allow them to do that.

[H.

Long in the chair.]

Now I'm

delighted and very proud, Mr. Speaker, that this administration, this

government, took entirely

[ Page 1394 ]

a different approach to the management of our fiscal challenges. We did not

download our problems onto local government. In fact, to me at least, as a

minister responsible for municipal affairs in the province, one of the

highlights of the budget — and I think it is a highlight — is that we have

seen transfers to local government protected in their entirety in the current

budget. We have not in any way attempted to download our problems onto

municipalities.

We have,

for example, entirely protected small community grants. These are very important

to municipalities. Some of them are only a few hundred people at large. For

some, the transfer under small community grants constitutes 50 percent or more

of their revenues. They are critical to them. We have protected those small

community grants in whole.

We have

protected the Fair Share program which, of course, our members from the Peace

and the municipalities in the Peace very much value. We have protected the

traffic fine revenue transfers, and so on and so on. We have, across the board,

ensured that we have protected municipalities and regional districts. We have

not attempted to download our problems onto them.

Further —

I think that local governments will be very appreciative of this, and again it

was a challenge, given our fiscal circumstances, but it will be very important

in terms of our economic turnaround — we have protected the Infrastructure

Works program, the Canada–British Columbia Infrastructure Works program. We

have protected that. This is a five-year agreement between the federal

government, the provincial government and local governments. On the water and

sewer side it's $600 million over a five-year period, and on the

non-water-sewer, on the community infrastructure, it's $200 million. Again, we

have protected those funds. We look forward to working with local governments

and the federal government to see a rollout of millions and millions of dollars

in infrastructure programs and infrastructure projects in the coming months and

years, which I think will just prove to be a tremendous stimulus not only to the

municipalities but to the province as well. That's important, and that's a lot

of dough, but it's something that despite the challenges we have, we have

protected because we believe it's very important for municipalities and for this

province that we do so.

As well —

and this may seem like a smaller thing, but I suspect that many of our

constituents, particularly seniors, will identify the importance of this….

Despite the challenges we face, we have protected library grants from the

province to library boards and to library regions, and so on, across the

province. It's about $8.5 million a year. It will help to ensure that we

continue to offer the library services that many people — not only seniors but

perhaps particularly seniors — value across this province.

It will be

sufficient…. I've discussed this with the B.C. Library Association, and we

talked about this previously in this House. It will protect the ability of

libraries and library boards to provide audio book services to their blind

clients. We believe that's very important. We're looking at ways through

InterLink that we can continue to assist around audio books, but the most

important thing is protecting the grant to libraries, thereby allowing them to

continue to offer those audio book services, which they have in the past.

[1510]

Another

area of the budget that I'm particularly proud of — and I'm proud of it

because it was a particular challenge — is the housing programs that we have

in British Columbia. Again, we have not only protected housing programs, but we

will be seeing them increase in the coming fiscal year to the highest level that

they have ever been. It has not been easy attempting to reconcile the need for

new housing with the need to curb expenditure lines as well, but we've been

able, I think, to arrive at a place where I am certainly comfortable. What we

will be seeing is this government meeting its commitment to address the needs of

the most vulnerable in our society in respect of their housing.

Now, I'm

from part of the province where there is a fairly large proportion of seniors,

and certainly that's true not only in Shuswap but in the Okanagan and in a

number of other areas of the province as well. What we have been seeing over the

past decade is a growing deficit in the number of intermediate- and long-term

care beds that are available to the frail elderly. In the absence of those

available beds or assisted living units, one of the consequences is to see

people inappropriately taking up acute care beds. They don't want to be there,

but they are sometimes compelled by circumstances to have to do that. What we

have committed to — and it's a very ambitious program — is to see those

5,000 new assisted-living or intermediate-, long-term care beds over the next

five years. They are going to be, I think, enormously valued by the health

regions, the municipalities and certainly by the frail elderly, who will enjoy

greater independence and a better life as a consequence of meeting that

commitment. I'm delighted that we have been able to ensure that housing programs

have been protected through this.

As well,

I'm also delighted to say that our aboriginal services budget has been protected

and in fact, again, increased. One of the commitments that this government made

during the last election campaign was to double the First Citizens Fund from $36

million to $72 million. We are now in the second year of meeting that

commitment, and certainly by the end of our first term we will have met the

commitment to doubling the First Citizens Fund.

Through

that fund and through other programs in the ministry, we will see educational

opportunities expanded for young first nations people, and that's very

important. We've heard earlier today, and certainly we heard yesterday at the

provincial congress, about some of the continuing challenges. I think we all

feel a little ashamed that the success rate of young first nations people, in

terms of graduating from high school and getting into and completing college, is

way lower than we want to see it. It's challenge to all of us,

[ Page 1395 ]

whether we're involved with school districts or not, to try to move ahead and

improve those things. I know that we're going to work with other ministers to

try to do that.

Last thing,

Mr. Speaker — because I know my time is running out — is that I want to

thank the Finance minister for putting in place a provision that's very

important to me and very important to the Shuswap. That's the elimination of the

out-of-province boat and trailer tax. What we would have seen — and this was

the plan of the former government — was that boats from Alberta, Saskatchewan,

Washington or wherever that were kept in British Columbia for an extended period

of time — I think it was any 12 out of 18 months, cumulatively — would have

to pay a 7 percent boat and trailer tax. It would have amounted to, in most

instances, thousands and thousands of dollars which they would have had to pay.

[1515]

Now, it

certainly may have made some sense to the former government; it makes absolutely

no sense to areas like mine where there's a very major marina industry. Simply

put, it would have created a great marina industry in Canmore, Alberta, because

everybody would have been pulling their boats and trailers back to Alberta and

leaving them there, where they wouldn't have been subject to that ridiculous tax

grab which was sponsored by the former government. I'm very appreciative of the

Finance minister putting an end to that. I'm sure there will be great relief in

Sicamous, Salmon Arm and indeed many other places in the province that have

active and large marine industries. This will put that threat of devastation

behind them. I'm very much appreciative of that.

I do

appreciate this opportunity to speak today. I know this budget is going to be

critical to British Columbia's moving ahead to once again become not only the

envy of this nation but the envy of the world as well.

H. Bloy:

I just wanted to follow up on the hon. Minister of Community, Aboriginal and

Women's Services when he spoke of the fewer than 1,000 people that have come

into this House since Confederation. I am in awe every time I walk into this

House and think of the history. I really want to thank the voters of Burquitlam

for sending me here. I want to assure them that I am here for everyone in

Burquitlam and for everyone in this province. It's an amazing building.

Mr.

Speaker, it is my pleasure to rise today to discuss the most progressive and

concise budget in British Columbia in the last ten years. It is truly refreshing

to see the level of honesty displayed in what is arguably one of the most

important elements of any government.

The budget

is a balancing act that would be a daunting task for any person. Imagine being

put in charge of a business with a budget in the billions of dollars. It is the

staggering nature of the job that has impressed me so much about the performance

of our Finance minister. I am further impressed that the Finance minister was

able to link his budget to the three pillars of the throne speech in the past

two weeks — that is, revitalizing the economy, restoring sound fiscal

management, and putting patients and students first.

This budget

is about putting people before dollars. There have been increases in some areas

and reductions in others. What is paramount for this Finance minister is that

the people of British Columbia are cared for. I am in awe of the job that this

minister has done. It must seem to him that he is carrying the weight of the

world on his shoulders, but I can assure you that we are behind him 110 percent.

Today I

would like to review two main points of the budget that are particularly

important to me and to my riding of Burquitlam.

Income tax

reduction. One of the clearest signs that British Columbia wanted a change in

government was the strong signal sent in support of income tax cuts. Unlike this

past government, we actually delivered on every promise we made in our campaign,

and lowering income tax was one of the main platforms of our campaign.

This tax

cut will achieve two goals. First, it will put money back into the pockets of

British Columbians. It will allow British Columbians to spend the money where

they best see fit rather than government spending the money. Second, these

reductions in personal income tax will put in excess of $1.5 billion back into

the economy of British Columbia this year alone.

In addition

to helping individuals, the budget also reversed the tide of support for our

small business community. There was a mantra in government for the past ten

years that competition is bad, that small business does not create jobs. I know

that is not true, and I know that my 76 colleagues know that is not true.

[1520]

Small

business is the lifeblood of our province. In the provincial budget, this

government has increased the income tax threshold for small business in addition

to the personal income tax cuts. Furthermore, this government has committed to

reducing the red-tape burden on B.C. business by one-third over the next three

years. The burden of red tape is in excess of 400,000 regulations on the

government books that we will reduce.

This

government is also committed and has created the Premier's round table on

business. This government's attitude has changed from the previous government

toward the importance of small business in our economy. What this does is allow

small business to thrive. I've spoken to many merchants around my community. I

have a number of small retail outlets, like Gerry Vinter's Brunette Insurance,

restaurants, manufacturing businesses.

In my

riding I have a manufacturing business, Pacific Western Brewing, which produces

beer in Prince George and is now producing alternate health products. Later in

the month of March, they are making their first export shipment to Japan. This

shows the growth and the confidence that these small businesses have in the new

government of British Columbia. All of

[ Page 1396 ]

them have told me that for the first time in a long time, they've felt the

government was doing something to help them.

The second

major point of the budget I'd like to emphasize is the commitment that this

government has made to post-secondary school students. In the budget, this

government has made credible and concrete strides to help our most valued

resource, and that is students. The budget was a realization that this

government cannot continue to spend what it does not have.

However,

the government has made every effort to ensure that students will come first,

and we have not cut spending to education at all. This government plans to spend

$45 million to establish a leading-edge endowment fund and 20 permanent

leadership chairs at B.C. universities. The government plans to increase the

number of student spaces for nurses and residential care aides by over 1,400

places in the next three years.

This

government plans to work with universities to ensure that students are getting

the best education that can be provided. Next month I will be speaking at a

forum with a number of Simon Fraser University students. I am looking forward to

an engaging and lively debate. I will be going up to Simon Fraser University,

which is in my riding, with the confidence that this government is doing

everything it can to maintain the high level of quality post-secondary education

in Canada.

Additionally,

this government is working to ensure that students get the courses they need in

the spaces available, so they can complete their degrees in a reasonable amount

of time. I have spoken with many students at Simon Fraser University who are

extremely frustrated with the lack of ability to get the courses in a timely

manner. A number of students are now having to spend five and six years to

complete a four-year degree.

The cost of

tuition is but the smallest part of a student's education when compared to the

cost of living, social needs, books, rent, clothing and excessive student union

fees. The many students I have spoken with support the change in policy of

allowing universities and colleges to set their own tuition fees. These students

look forward to working with the administrations of the colleges and

universities to set fees so that they can continue the courses as they require

in a timely manner.

Yes, there

are always some students that want it for free, but for a quality education to

be affordable in British Columbia, there have to be reasonable fees. I have

every confidence that the students within the colleges and universities will be

able to work with the administrations to set fees so that they can get the

education they require.

What struck

me the most about the budget is the balanced approach. It has combined a

tightening of the belt, so to speak, with the commitment to helping those most

in need. It has also found a way to create new initiatives, stimulate the

economy, restore sound fiscal management to government and, most of all, get

B.C. back on track.

[1525]

As I have

said before, the road ahead will not be an easy one. Over the last decade B.C.

has slid to last in investment and last in growth in Canada. We have been

starting the race every year in last place, and this government is refusing to

accept that reality. This government has promised to change our current status.

We were elected to change the status quo, and with a budget as well thought out

as this and with this team of strong government MLAs, I have every confidence we

will achieve that goal.

Proof of

the positive change made by this budget in our first eight months in office is

that in January of this year British Columbia had an increase of 27,000 new

jobs. This is proof positive that we are on the track to restoring prosperity

for all British Columbians. British Columbians are happy with the job that this

government is doing.

This past

February 16 I had the official opening of my community office. I was amazed.

Well, I can't say I was amazed, because I've been getting phone calls, and over

200 people came through my office opening. They were in support of what this

government was saying, and they were saying to me: "Stay the course. Don't

falter. This is what we need right now." The prevailing message was that

the silent majority in British Columbia is aware of the tough road ahead and is

in full support of this government.

I would

like to thank the Premier for allowing me to serve on the Select Standing

Committee on Finance and Government Services, the Select Standing Committee on

Public Accounts and the Government Caucus Committee on Economy. The Government

Caucus Committee on Economy works closely in association with the Ministry of

Advanced Education; the Ministry of Competition, Science and Enterprise; the

Ministry of Transportation; and the Ministry of Skills Development and Labour.

I would

like to end today with congratulations to the Finance minister on a

well-thought-out and pragmatic budget. It is not always easy to be an MLA in

British Columbia, but we can all take solace in the fact that we are doing what

is right for British Columbia today, and we are doing what is right for British

Columbians tomorrow. Thank you.

Manhas: I am pleased to rise here today in support of this government's

budget. The minister delivered our first full budget just nine days ago, and

since then I've already spoken with a number of people in my community. I've met

with the mayor and council in Port Coquitlam and the mayor and some councillors

in Coquitlam. I've had a number of different comments since the budget. I've

heard from a number of constituents through e-mails and phone calls, and I have

to say that most of the people I've talked to have been very positive about this

budget. They have understood what has to happen and why the decisions that are

being made have to happen.

[ Page 1397 ]

I had an

opportunity to speak with my council this past weekend. They had a number of

concerns, and I've tried to bring those forward here to Victoria. They were

concerned, first of all, about meeting budget targets. We said we'd meet budget

targets. We have committed to it, and we'll remain accountable to that. In 2005

the people will see that we will be accountable to the decisions and statements

that we've made.

[1530]

They were

concerned about hydro and energy costs. They were concerned about their costs

and downloading. They were worried about the cost of changes on them. They were

worried about meeting their own budget targets. I've taken those concerns and

brought them forward here to this government, and I continue, as always, to

ensure that the best interests of my community and the folks who live in it are

being brought forward.

People

should understand that we have inherited a situation. We have come into a

situation that needs to be corrected, and a number of decisions have to be made

to get us through this period. Every British Columbian will have to start

shouldering that burden, because the more quickly we can get through this

period, the more quickly we can deliver more opportunities for all British

Columbians. In my own community we have already been seeing some great changes,

and a number of new businesses have been opening up.

I don't

think any of us expected the number of challenges we would be faced with coming

into this government. I don't think any of us could have predicted some of the

events that have occurred over this last year. I don't think anyone could have

predicted the way negotiations or arbitrations…. Parties have come to the

table — for example, the United States coming to the table in good faith with

the softwood lumber agreement. I don't think anyone could have expected those to

occur. We've tried to work within that framework.

I think the

Minister of Finance has performed and pulled together a budget, with so many

constraints, that really does build a foundation. I think that has been very,

very difficult, and I'd like to commend the work the Minister of Finance has

been doing. It has not been an easy job.

I've been

hearing from most of my constituents that they do understand. They do understand

the path the government is taking. I'd like to read from a couple of e-mails

I've received from constituents in my area. The first one says: "Hi, Karn.

Your government is on the right path. Although tough, someone had to make these

decisions. Congratulations. Carry on. All the best."

Another one

reads:

"I keep hearing radio

advertisements urging me to contact my MLA and tell him or her what I think.

That's exactly what I'm doing.

wholeheartedly support the way Mr. Campbell and you are trying to get this

province back on track, back onto a sound financial footing. For far too

long it was ruled by a dictatorship of union bosses, especially in the

public service, who dictated sweetheart deals.

urge you and Mr. Campbell to keep on the same course you have so bravely set

out. Regardless of whatever professional protesters are put out to work, I

will continue to support you as I did in the last election.

"A resident in Port Coquitlam."

Another one

here reads:

"You

should know that more than 50 percent of the voters in British Columbia

voted for the Liberals. The main issue of the Liberal platform was smaller

government. Smaller government translates into job cuts. It is impossible to

cut the size of government without cutting jobs from the lazy, bloated,

oversized and inefficient government civil service. I have sympathy for the

workers losing their jobs, but the fact is, they had a job longer than they

should have.

"If

the NDP had any economic wisdom, they would have made the cuts, and maybe

the NDP would have had more than two members.

"As

such, the voters of B.C. have given the Liberals a blank cheque to cut as

they wish. This is the will of more than 50 percent of the province.

would like to encourage you to please stay on this course. Do not listen to

the special-interest groups. All they want to do is continue to drive the

province into financial ruin.

"We,

the voters of B.C., gave the Liberals a strong majority to dish out the

strong medicine that B.C. needs.

"The

NDP and their NDP friends had the chance to try their solutions for over

eight years." — It's actually ten years, Mr. Speaker. — "They

failed. They failed in spades. Based on the fact that the NDP failed to

govern in B.C. in a manner which was acceptable to more than 50 percent of

the population in B.C., why should we give them any mind now that we've

chosen to give the Liberals a chance?

"Rest

assured; if the Liberals do not produce in four years, they will be out like

the NDP.

am sure the majority of the province is still strongly behind the Liberals.

We believe in the approach the Liberals are taking, and we do not want the

Liberals to weaken their approach one bit.

"Thank

you, and stay the course.

"A resident in Port Coquitlam."

[1535]

I have a

letter from another resident, speaking on the protests that have been going on

in the last weeks in this province:

"In

all reality most of this commotion does not reflect the will of real British

Columbians; it reflects the will of the minority who lost the last election

and who are in the process of losing the special privileges that they have

used…for the past ten years.

"For

some reason I recall something that Glen Clark, of all people, said after

the last election. Assailed by the Liberal opposition in the Legislature,

the then Premier got up and shouted something to the effect of: 'We won.

They lost.' Now Mr. Clark, speaking as a leader of a government with a slim

majority who had lost the popular vote 42-39, seemed to have little ground

upon which to rest such a statement. However, as a majority government with

77 out of 79 seats in the Legislature, this government and its supporters

should feel justified in telling these people to sit down, shut up and let

us fix what they did to our province."

That's another resident in my community.

The fact is

that we do need to carry on with this agenda. The problems that have assailed

this province

[ Page 1398 ]

are not going to be fixed overnight. They do require the rollout of a

strategic plan that has to be carried out, which will be measured in the coming

years on the effects of that plan.

There are a

number of people who will jump up and down as soon as decisions are made, saying

they're the wrong ones. But the decisions this government has made are holistic;

they are a plan that works together. It has to be given the ability and the

chance over the coming years to have its effect, so we can increase

opportunities for British Columbians.

One of the

comments that has been raised a number of times in speaking to members in my

community since the budget is the question of taxes. We did have a number of

challenges from rising health care costs that did need to be dealt with. The

fact is that the tax burden on British Columbians is still lower than when we

came into government.

I was

speaking to a constituent recently, a fellow on the phone, who was worried about

rising costs and rising MSP premiums. I understand how easy it is to read news

articles or stories in the media and get concerned about the changes that are

happening in government and not realize exactly how these changes will have an

effect. I was speaking to a fellow on the phone, and he had understood from

reading that the MSP premiums are going up. He didn't make a lot of money and

was worried he wouldn't be able to afford these changes. We took a look at what

was actually going to happen. His MSP premiums actually went down because of the

changes. That's just one person. There are approximately a quarter of a million

people in B.C. like that.

understand how people can get concerned when they hear about changes, when they

hear things in the media that are riled up by specific groups. The full details

don't come out. When the full details do come out and people see how that

affects their lives, I think the people in this province will see they are

better off.

[1540]

I was in my

office last week, and as I was leaving, a fellow came up to me, worried about

some of the changes that had been made and whether they would have the intended

effect. At some point in the conversation he asked if the Liberals…. Somebody

had asked him if the Liberals were the right choice. An immediate reaction came

over his physiology. I mean, the thought occurred to him: what would have

happened in this province if the NDP had actually got in for another term? The

thought just spooked him so much that his whole demeanour changed, and he was

willing to understand and work with the changes that were being proposed.

I think

that if a lot of British Columbians understand that this government has tried to

come about and balance its decisions, they will come to look at the whole

picture and understand why some of the decisions that were being made had to be

made. And we're not going to stop there. I know that this government is

committed to having personal and business taxes that are competitive with

neighbouring jurisdictions.

Low-income

British Columbians now have the lowest personal income taxes in the country —

for everybody earning up to $60,000 a year. When we talk about increases and

changes in tax structure, we have to remember that those people, low- and

middle-income British Columbians, are still paying the lowest taxes in Canada.

The total

amount of tax cuts reached about $2.2 billion. After this budget, the net amount

of money going back in tax relief is still about $1.4 billion.

The MSP and

PST increases came to less than $650 million. They were necessary to pay for

labour costs for skilled health care professionals — to keep them in this

province. But I think we have to remember that the amount we're collecting in

taxes in this province is still less. When you add up personal income taxes, MSP

premiums, tobacco taxes and federal transfers and all the new taxes, it's still

less than the amount that we're paying in health care. That's an amazing

thought. We've got about a $25 billion budget, and health care costs more than

everything that we're collecting in taxes.

So how do

we pay for the rest of those things that government should be delivering, that

government wants to deliver — the services that people want to have? We have

to do two things. We've got to reduce the amount that services cost us, and more

importantly, we've got to increase the health of the economy so that we can get

more services. More money coming into government — that's the only way we'll

be able to sustain ourselves in this province. We have to increase our economy.

We've got to provide more opportunities. That's got to be our focus.

At the same

time, we should remember and look back into our communities and see what's going

on there, because the impact of the changes since the election of this new

government has still had a considerable effect in my riding. Business is up.

Everywhere you turn, everywhere you drive, houses are being built. You see signs

for new housing developments. There are new offices being built. There are new

retail shops being built. Development is being planned. We've got major

corporations that are looking at investing in Port Coquitlam again. We've got

Sears, a national corporation, building their western Canada headquarters, their

distribution headquarters, in Port Coquitlam. We've got Ikea building their

western Canada flagship store in Coquitlam.

[1545]

There's a

lot of great things happening. I think we have to get away from the doom and

gloom that we hear sometimes in the media and look to what's actually happening

in our lives and around us. Jobs are being created. Almost every week I go back

to the constituency, and I get calls from businesses that either are looking to

invest or are opening up shop in the area. That's encouraging. If we can

continue that all over the province…. It's a very different effect from the

doom and gloom you hear in the papers and in Victoria. People are happy. They're

optimistic. When I go back to Port Coquitlam and to the Tri-Cities, people are

optimistic. Businesses are optimistic.

[ Page 1399 ]

I'm going

to be meeting with the business community, a number of different groups, in the

next couple of weeks. The ones I've talked to in these last weeks and in the

last months have been very optimistic. The business people I've talked to have

told me they're very happy about the changes that were made in the budget. They

understand why they have to be made. They understand how it's providing a

foundation for the coming years to ensure that we will continue to have people

investing and will continue to have more business activity — not only in Port

Coquitlam, not only in the Tri-Cities but, hopefully, in all of British Columbia

— so everybody feels it.

There's a

number of organizations I've been speaking to in my community, as well, like the

Society for Community Development and the society for community living, that

have been working very proactively, working with this government and with

myself, to bring forward the issues concerning them so that we can help to

resolve them. I encourage all organizations to do that — to bring forward the

actual concerns they have so that we can ensure those are addressed.

What's been

exciting about that is that in the last number of months, we've opened up a new

office, our permanent office. We were working out of a temporary office since

the election. Actually, we had an office that was up and running the first day

after the election. I was the first newly elected member to have an office open

after the election. We tried to have a temporary office that people could come

into to address their concerns as soon as the election results had come in. We

did that.

In January

we opened up a permanent office. We built a resource centre in that office. The

response from a number of the community groups has been very encouraging. We are

now going to start working with a number of groups to make sure that it is a

focal point for helping build and develop the community. We chose a location

that was easily accessible, at Shaughnessy and Lougheed, right in the centre of

Port Coquitlam. It's easily accessible for north- and south-side residents as

well as northeast Coquitlam — easily accessible and visible. We intend to

utilize that location in the best ways possible.

One of my

beliefs is that a community office should be more than a place where people come

to address concerns. It should be a place that is a focal point for the

community, that helps the community. What we've done is brought some extra

computers in there so that people have a place to access government resources,

community resources. We're working with several organizations to ensure there's

programming that people in the community can access when I'm away in Victoria.

My staff have been phenomenal at ensuring that everybody who comes in is well

taken care of.

There have

been a number of changes that were announced as part of the budget and even

before the budget — structural changes in the government. I think the people

in Port Coquitlam should be very happy about the way the changes have come

about, because although every area of British Columbia has had to do its part

and the Tri-Cities are no different, we also now have the opportunity to serve

people much better.

[1550]

One example

of that is the Port Coquitlam courthouse. We've got a courthouse that was

decided to be built a number of years ago. In the last decade it was finally

built, and it was never actually used to full capacity. Now what we'll see is

the courthouses actually starting to be used and the facility being used at full

capacity. What that means is that people will start to come into the community,

and it will drive economic activity. That will be good for Port Coquitlam. It

will breathe life into downtown, the historic core of Port Coquitlam. I think

people should be very excited about that.

I know a

number of the reorganizations have had direct impacts on people, and I

understand their concerns. I understand what they're going through, but these

changes that have been made had to be made. We're going about doing this in as

balanced a way as possible. Drastic changes have had to be made.

In the last

little while, if we look at the economic situation in British Columbia, we

dropped to a have-not province in 1999, and 60,000 young people left this

province between the years of 1997 and 1999. People should be concerned about

that. That is a problem. That hurts everybody. It hurts everybody in British

Columbia that that many young people left this province because they didn't see

opportunities available for them in British Columbia. There weren't jobs for

them. There wasn't a future. We have to change that in British Columbia. We have

to make sure that young people stay in B.C., because otherwise we won't be able

to continue to sustain the rest of our services and to build the society we

want.

We have to

ensure that there are opportunities in every sector in professional development

in British Columbia. A number of the things this government has been doing have

been working to ensure that, but we have to change the economic climate. If

young people continue to leave British Columbia for Alberta, for better

opportunities, we're all going to lose. These people leave with a lot of our

hopes and dreams, and we've got to make sure we do everything we can to make

sure they don't leave.

As a young

person myself, I still have a family in the future. What happens today and the

decisions that are made today directly affect my future. In some ways, I have

more invested in this budget than anyone else here. I will work to ensure that

this government does everything possible to ensure that there is a solid

foundation now, that we're not passing the buck to the future and that we're

doing things right now so that everybody has a great future.

My solemn

vow to myself, to my family, to my community, to my province and the country is

that I will do everything in my power, with every ounce of energy, to ensure

that we have a better future for everyone now and into the future in this

province.

Brenzinger: I'm honoured to stand here today in this House to respond to the

budget. As outlined in the

[ Page 1400 ]

budget speech, economic growth is the foundation we will build on to sustain

our health care system, our top-notch education system and the various other

social service programs that those most at risk need.

We must

ensure that our economy is competitive, diversified and attractive to investors

to ensure that the revenue for these services is available. When our government

was elected last May, the resounding demand from the people of British Columbia

was change. British Columbians were fed up with ten years of fiscal

mismanagement and neglect by the previous government. British Columbians were

adamant that their money, their tax dollars, be spent frugally and prudently.

British Columbians didn't want their tax dollars to be spent on personal legacy

projects. British Columbians want a true and affordable legacy to be left for

the generations of the future — a legacy where hard work is rewarded and

initiative is encouraged, a legacy that doesn't strangle the economic future but

encourages its growth.

[1555]

This year's

budget, read in the House on February 19, 2002, set the building blocks for the

future economic growth of British Columbia. We can all relate to this budget. It

is simple. If you are in debt and your income cannot pay for your expenses, you

must reduce your spending somehow. You prioritize. You have to make choices. No

one likes to make these choices. Often they are tough choices, but it is a

reality of life. But oh how good it feels when you start to see positive changes

in your home budget. That is what we as British Columbians will feel in the next

few years as the economy grows and more jobs become available. People will have

more spending money, and so will your government.

We are

setting the building blocks for a health care system that will provide the

necessary medical care that British Columbians expect and deserve. Let us not

forget the horror stories from hospitals that we as British Columbians have had

to experience and listen to over the past decade. Let us not forget the

wait-lists for services and the immense stress that caregivers have had to

endure.

We are

setting the fiscal requirements for an economy that encourages businesses from

around Canada and the world to invest in an atmosphere of cooperation free from

government regulations.

That is not

to say, Mr. Speaker, that these challenges will be easy and can be accomplished

overnight. These challenges are enormous, but as set out in the budget speech,

our great province will be on its way to recovery and revitalization three years

from now. Our budget will be balanced. Our deficit will be gone. Our government

will be a model of affordability, sustainability and efficiency. Our Finance

minister, for whom I have tremendous respect, has tackled this fiscal boondoggle

that we've been saddled with and has set forth a visionary and forward-thinking

budget that will get our province back on track.

It is

heartbreaking to see that over the last decade, B.C. has slid to last place in

economic growth and last place in investment in Canada. We were once an economic

leader, at the beginning of the preceding decade, and now we have slid to the

point where this province qualified for federal equalization payments in

1999-2000. We went from being an economic contributor to being a have-not

province. To me this is unbelievable and unacceptable.

This

government has started taking the first steps towards real economic

revitalization by cutting taxes and putting the money back into the pockets of

British Columbians. British Columbians now have the lowest personal income tax

rates in the country for those earning $60,000 or less. We have lowered taxes to

make British Columbia competitive again.

My riding

of Surrey-Whalley has seen the opening of a new customer-interaction centre in

the flats. RMH Teleservices will open its second call centre facility in B.C.

and will provide employment for up to 1,000 residents in Surrey. Our government

has sent out a message that is loud and clear: British Columbia is now under new

management. This new management is letting people know that British Columbia is

a desirable destination, a great place to invest and do business, and we are a

source of top-notch products and ideas. I want the business community to know

that Surrey-Whalley is inviting business to our riding along the beautiful

Fraser River.

One of the

greatest challenges facing our government is the salvation and renewal of our

health care system. Health care spending in British Columbia now accounts for

all our revenues from personal income taxes, MSP premiums, total federal

transfer payments, tobacco taxes and the latest increase in sales tax combined.

Ten years ago the province spent 34 percent of its total budget on health care.

Today that figure has climbed to 41 percent.

Wage

pressures are a significant contributing factor to this increase. To fund the

salary increases for doctors, nurses and paramedicals, this government has had

to make tough choices, such as raising the provincial sales tax to 7.5 percent,

raising the tax on a carton of cigarettes by $8 and increasing MSP premiums by

50 percent. But the government has also ensured that approximately 230,000 of

British Columbia's most vulnerable will actually see their MSP premiums

decreased or pay nothing at all. The delivery of health services will be

restructured to get the most out of every health dollar and enhance the quality

of patient care.

[1600]

We are

paving the way to re-establish our education system, both public and

post-secondary, to be the envy of all other provinces. As a mother of three

children myself, I share a tremendous respect for teachers. Teachers are charged

with the challenging and serious task of shaping our children's lives. We also

need to ensure that schools are places of learning first and not a stage for

political agendas. I believe most teachers are hard-working professionals who

are interested in putting students first.

The

commitment of our government to put the students first is very important to me,

Mr. Speaker. I have

[ Page 1401 ]

the honour to be a member of the Select Standing Committee on Education. I

have spoken with many stakeholders in the education system: parents, educators

and students. They all shared a tremendous dedication to our education system.

This budget delivers on our promises to put students first.

Our

government is contributing more to post-secondary education. Our government has

given post-secondary institutes in British Columbia the responsibility in

setting their tuition fees. Our government feels that institutions working

together with the students they serve are in the best position to decide what

level of fees are fair, reasonable and affordable.

The budget

for the Ministry of Education is up slightly to $4.86 billion. The new school

funding formula which will be introduced this session will ensure that local

school boards are able to plan for their districts' individual needs and

requirements with three-year funding allocations which are fair and directed

towards community student population and classroom cost.

For too

long one of the biggest hurdles facing health boards and school districts was

the challenge of trying to focus resources on patient care and students, while

facing inflexible and stringent labour contracts. The contracts have resulted in

taxpayers not getting the best value and services for their dollars. Our

government has made the necessary legislative changes to allow health

authorities and school boards the ability to make the right decisions for

patients and students.

Our

government is also ensuring that we set about making the necessary changes to

protect those most vulnerable in our society. We have maintained seniors bus

passes so that the elderly in our province are able to preserve their

independence within the community.

Mr.

Speaker, I recently visited with the board of directors of the Surrey Women's

Centre and met with some of the women who work in the centre. I was impressed by

their passion and their commitment to what they do and the services they

provide. The Minister for Women's Equality has also shared that same commitment

by protecting funding to transition houses, safe homes, second-stage housing and

counselling for abused women and children as well as programs for the prevention

of violence against women.

We have

also begun the process of outlining and redefining core programs and services to

provide people on income assistance with the tools they need to achieve

independence from government subsidization. Our government also realizes that

for some, this independence may not be attainable due to barriers such as

physical or mental disabilities. We will ensure that the most vulnerable are

protected with the necessary social safety nets. This is a caring government.

Over the next three years the Ministry of Human Resources will invest $300

million in training and job placement programs to allow those who are able to

work to achieve independence.

Some of the

calls and letters to my constituency office say that we are going far too fast.

My response is: "Yes, changes are happening, and yes, these changes may

seem quick." The reason it may seem too fast and too quick is that for the

last decade British Columbians have come to expect their government to do

nothing. Our government is moving forward and making the difficult decisions we

were elected to do. Difficult decisions are never easy — I know that — but

these measures are essential to revitalize prosperity, protect patient care and

build a strong future for our province. Thank you.

[1605]

Johnston: Mr. Speaker, it is a real pleasure to be able to rise in the House

today, especially on such a beautiful day here in Victoria. I just wanted to

give a very positive response to the budget debate.

Firstly,

I'd like to thank the Minister of Finance and certainly his staff for putting

this budget together in extremely difficult times and with extremely difficult

sources of information. These economic times have certainly not been very kind

to the people of British Columbia. The budget process has been made an extremely

difficult exercise by an inherited deficit of almost $4 billion; a high-tech

meltdown; a global recession affecting our energy prices to the tune of a

billion dollars; a $300 million reduction in Crown corporation contributions to

the province; the softwood lumber crisis, which is ongoing; the tragic events of

September; and the recent wage settlements that government had to effect.

I know that

the Minister of Finance and the government caucus committees and everybody

worked extremely hard in trying to put this together. I also know that shortly

before, I think, he was ready to table the documents, there was an arbitration

award to the doctors that also affected the amount of the budget at the end of

the day.

I really

feel that the Minister of Finance must feel he's paddling a canoe in a

hurricane. I've had experience with budget processes. Normally, you have a

little bit of stability to work with, and you have a little bit of better

information, historical and otherwise, to work with. In this case, this

certainly did not happen. I truly hope that this province has much better days

ahead than we've seen in the past.

I had the

opportunity with all members of our caucus — in fact, all members of the

House, I think — to attend the provincial congress summit held the other day

in Vancouver. I think it was a very, very important exercise. This was where,

obviously, elected officials from all levels of government in British Columbia

— the civic level, municipal level, MLAs, MPs and first nations — came

together to express opinions and to have a dialogue about issues that affect

British Columbia. I have to say that I thought it was a very worthwhile

experience because I think that as elected people, we often tend to go off in

different directions without any real cohesion as to what we're trying to

achieve for the people of British Columbia. We all know that there's just the

one taxpayer, and I think we sometimes lose sight of that. It was a very good

start to a process

[ Page 1402 ]

that I'm glad the Premier brought forward in terms of meeting in the future.

I was

certainly very moved by the comments of Dr. Gosnell and Bill Wilson from the

first nations. I thought that their openness and their willingness to discuss

the issues are going to help us in the future with resolving some of the treaty

situations around the province.

It was

interesting because I don't think I had met half the MPs, certainly, in British

Columbia. We got an opportunity to do that. I know from a civic perspective,

from my past life in civic politics, that for the mayors there it was also a

tremendous opportunity.

[1610]

At that

congress there was a presentation by the chairman of the progress review board

talking about the relative ranking of British Columbia to the rest of Canada

with regard to economic, health and education issues. I think what the report

put forward by the chairman of the B.C. Progress Board — I have a copy here

— pointed out was some actually quite disturbing things in terms of British

Columbia. Some of those things were the huge gap that British Columbia has with

our neighbours to the south and certainly to the east — a huge gap in economic

performance. Just as an example, over the last decade B.C.'s GDP grew 4.3

percent compared to Alberta at 22 percent and Oregon at 40 percent, which I

think was quite amazing. Our disposable income dropped over the past decade,

while all others went up.

There are

some other indicators from that report released a couple of weeks ago that, just

for me personally, were somewhat unnerving. The report indicated that our high

school graduation rate, as an indicator, was one of the lowest in Canada.

Personal property crime in British Columbia was the highest in Canada. I think

that shows the kind of work that has to be done in a lot of areas to make us

number one again, like we were years ago. The focus of the B.C. Progress Board

is, in fact, to get British Columbia, in terms of quality of life and economics,

back to being the best province in Canada by the year 2010. I think that is

something we will all be striving for.

Just having

a chance to read, like many people, a headline this morning in one of our local

papers, the headline was this: "B.C.'s Equalization Cheque on the

Way." Again, this just indicates the kind of state we're in, in this

province, at this particular point in time. The

article went on to say that this

is the first equalization cheque we'll be receiving from Ottawa since 1962. That

is not a good thing. It's not a place we want to be in this province.

This is why

I so strongly support the commitments of this government and the budget put

forward by the government. I strongly support the commitments. Those commitments

are to restore sound fiscal management, to revitalize the economy, and to put

patients and students first.

Mr.

Speaker, many groups in British Columbia have responded to the budget either

through support or voicing concern. Being one of the two certified general

accountants — the other being the member for Oak Bay–Gordon Head — in this

particular Legislature, I'd just like to read something from the CGABC, which

has been referred to by that member and the member for Malahat–Juan de Fuca

earlier.

I feel that

it's an important thing. CGABC represents 12,000 members and students across

British Columbia, and I think it has quite a voice in terms of the financial

community. If I might, I'm going to quote Gordon Ruth again, president of the

Certified General Accountants Association of British Columbia, who said this:

"Some

people complain that Finance minister Gary Collins is moving too fast to get

B.C.'s fiscal house in order. At CGABC we share the government's sense of

urgency. A speedy transition from deficit financing to balanced budgets had

to be cast in budgetary concrete quickly in order to restore confidence in

B.C.'s potential.

"In

our view, the events of last September, the softwood lumber trade dispute,

the faltering global economy and the resulting softer energy and commodity

prices have combined to instil in B.C. a heightened sense of urgency to get

our house in order."

I share those sentiments, not just because I happen to be a member of that

association but because I think that is the truth on the state of British

Columbia today.

The steps

taken in the budget are necessary to get this province back to health. You know,

I'm constantly asking myself the question, as a member of this House: is there

some other option that we might have taken? Is there some other road we might

have gone down in terms of the budget and the direction of the government? I

hear the opposition and I hear lots of groups saying we're not doing the right

thing; we're moving too fast; it's not something that British Columbians want to

see. I say to myself: what are those other options? What are those alternatives?

[1615]

All I've

heard so far is that we should maintain the status quo. We should let things be

as they were. After all these years, I just cannot fathom why anybody can put

that argument forward.

If the

answer is to just continually borrow money to increase our debt and continually

write cheques, then I think we'd be having more of the same that we've had in

the last ten years. I've just quoted a whole bunch of things, including the B.C.

Progress Board's findings on that, and that simply has not worked.

I have had

the opportunity, as everybody does in this job, to meet with many constituents

in Vancouver-Fraserview. Over the past weeks I have had the opportunity to talk

to teachers, health care professionals and others. I have listened to their

concerns and their opinions. What I seem to end up doing at the end of the day

is just trying to explain the course we're trying to take but also saying:

"Give the government, give us, a chance to show that this economic program

will work."

After nine

months, there's not enough time in that period to make things happen. We all

know this program is going to take longer, so I ask for that opportunity. I say

that if you want to see something happen, give us the time. You can comment on

what's going on,

[ Page 1403 ]

but please give us that time to make it work. I think that's only reasonable.

Whether it be talking to teachers regarding the class size or the flexibility

provisions, or speaking to health care professionals on the flexibility side, we

have to have that opportunity to make the change, to effect change, to do things

differently.

When I was

meeting with some teachers, they said: "What's the control on this in terms

of giving our flexibility back, giving flexibility back to school boards and

letting school boards manage the system?" Teachers know best, and I said:

"Well, maybe parents should have a say in it; maybe school boards should;

maybe everybody. Administration should have a say in it." They said:

"What's the control on that? How are we going to ensure that the education

is delivered properly?"

I refer to

the accountability contracts that the Minister of Education has talked about.

These accountability contracts are going out to every single school board. They

give out the terms and the kind of performance standards that are expected of

individual school boards. I'll just read a bit about what they are: "These

are not legal contacts; rather, they detail specific goals individual school

boards have set to enhance student achievement. As well as academic achievement,

goals may be related to safety issues and the provisional alternative pathways

to success."

What I tell

those individuals is that through this accountability contract process, there

will be an ability for public monitoring and for teachers to monitor just how

programs are implemented and class sizes and everything else are monitored. I

think that's a very important thing, which is being brought forward.

Not

everything that government does is going to be 100 percent correct. I'm sure

I'll make mistakes, and many members here will make mistakes. I've yet to meet

anybody that's perfect, but sometimes you wonder. For an example, I'll give you

the seniors bus pass decision. I think many MLAs felt maybe that wasn't the

proper direction to go. Many of us voiced opinions of that. I was very happy to

see that decision reversed.

I think

that just shows, in fact, the openness of government. We have the ability to

give that feedback, and decisions can be changed. I think that's important for

anybody, especially new MLAs like myself who are trying to get used to the

system of how government works and having input into government.

[1620]

I think

it's very important that we go towards a balanced budget, as required by

legislation in 2004 and 2005. I think with that goal and objective, it gives us

a real target to hit. I don't think there's any way that any of us around here

want to see that target not hit.

This budget

was, I think, a little different than some of the others I've seen in the past,

and read about and read through, in terms of the three-year service plan for the

ministries and the Crown corporations. I think the importance of having these

plans can't be overstated. My perception was that so often in the past,

government seemed to want to operate without any kind of plan. Government almost

felt it was exempt from any kind of structural or strategic plan or any kind of

long-term planning, for that matter. It seemed to be like government by the seat

of the pants, you know. Decisions were made through the last thing you heard.

I was very

happy to see that strategic plan put forward in the budget presentation. I don't

believe there's an organization in the world that's been successful which has

not put forward a strategic plan and a long-term plan. My goodness, even if you

go to a store like Costco or somewhere, you can see small business owners in

there buying up certain goods and products to stock their own stores. In fact,

even at that level, the smallest business, you'll find some sort of preplanning

for the long term.

The

three-year strategic plan tabled with the budget documents has common themes.

Those themes are that government will operate in an innovative, enterprising,

results-oriented and accountable manner. In doing so, it will adopt the

following managerial principles: high standards of accountability, consultation

and ethics; focused and efficient delivery of government services; social and

fiscal responsibility; open and transparent government; and innovative and

goal-oriented public service.

This plan

lays out key goals, objectives and measurements. One of those most important

objectives is that British Columbians will be healthy. Since being appointed to

the Select Standing Committee on Health, I've certainly developed a keener

interest in the delivery of health care services. Having the opportunity to

travel around the province and listen to people from all corners of British

Columbia was a very enlightening experience. I think there was a common theme as

we heard from, I think, 350 people, and we had another 350 written submissions.

The people we heard from face to face tended to have a very common theme, no

matter what group or what point of view they were trying to put forward. The

theme was that the health care system, as it stands today, is not serving

everybody, and it's not serving everybody as it should.

Again,

referring to the provincial congress, a gentleman named Dr. Baxter made a

presentation on demographics in British Columbia and Canada. It was extremely

interesting. His statistics talked about — and he had slides and everything

else — the effect of the baby boom of 1938 to 1964 on social services and

health care delivery. I didn't realize it started in 1938. I always thought the

beginning of the baby boom was closer to my age. If we're lucky enough, people

my age get to turn 65, and that's when the real crisis in health care would hit

because of that big bubble of baby boomers in the population.

What the

presentation showed the other day was the fact that we're in this demographic

crisis at the moment. People are living longer. They're utilizing the health

care system quicker. The thing that's really interesting is that the group

underneath the baby boomers is going to have to support, and there's not enough

folks there to do that. The current health care system as it stands, just from

that point of view, is certainly not sustainable.

[ Page 1404 ]

[1625]

The fact

that health care spending in B.C. has more than tripled from 1985 to now, from

$3 billion to $10.4 billion, just emphasizes the kind of costs and structures

we'll be going through. That is why we must deliver health care in a more

effective and efficient manner. There's comments in the papers today by Roy

Romanow, the federal commissioner who's leading the inquiry into medicare. Mr.

Romanow says he hopes to kick-start a debate that will entail Canadians coming

to grips with their heightened, sometimes unrealistic expectations of what the

public system can deliver. He also added that the most politically challenging

cost driver is the expectation of the public. With better technology and as we

all age, then obviously you can see where the cost drivers are.

In order

for all of us to deliver the services that British Columbians deserve and need,

the basis of everything is restoring sound fiscal management. On February 19 the

budget did many positive things, and one of those was increasing the small

business income tax threshold by 50 percent from $200,000 to $300,000. This will

enable small business to earn a little more money from the bottom line, to

retain it or reinvest it in their companies and in their businesses or to expand

or expand the number of jobs they've got in their business. I think this is very

progressive and a very, very important thing.

That budget

also raised the sales tax credit for low-income workers by 50 percent. It also

increased disability-related income tax credits, including credits for the

in-home care of relatives and credits for disabled dependents.

The budget

identifies a $4.4 billion deficit, and this is really tough. Difficult choices

are being made daily, and sometimes those choices affect people. Most often they

affect people. None of us elected to this House — certainly not myself —

really came here just to deliver bad news to everybody. So far, it's been

difficult for all of us. I certainly don't get up in the morning and say:

"Oh boy. I wonder what we can do to affect programs, to affect people

today."

I think

we're doing the right thing today for the future of British Columbia tomorrow. I

know that by making these tough decisions and taking these tough stances, there

will be brighter days ahead. I truly believe in my heart that the decisions we

are making today will benefit our children and, if I'm lucky enough sometime in

the future, grandchildren.

I just want

to speak a little bit on the feedback I've had on the 5 percent reduction that

MLAs took to their basic compensation. I have to tell you that I'm fully

supportive of the action we took. No, to answer many editorials, it will not

solve the fiscal problems of British Columbia, but I believe it sends a very

strong message that your elected officials are committed to showing leadership

and setting a direction.

A lot of

e-mails have come into my office and constituency and talk about the large

increase that MLAs received in compensation. I have to tell you that we're all

trying to clarify that. Those were federal MPs that were dealt with in that

manner. The British Columbia MLAs have not had any such increases.

I believe

that recovery is certainly on the way. The comments yesterday by Alan Greenspan

in the United States that the U.S. economy is going to see a moderate economic

growth of 2½ percent to 3 percent this year, I think, were very, very positive.

I think the engine is starting to turn, and things are going to turn around

globally and certainly in this province. They're going to turn around because

we've put a plan in place. Again, I say: give the plan an opportunity to

breathe, a chance to show what it can do. I'm sure we'll see great results in

the next few years.

Finally,

I'd like to talk about pride in our country. I certainly know that I share, with

probably almost every Canadian, a tremendous pride in being a Canadian. After

watching the Olympics through the last few weeks and the great performances of

all the Canadian athletes, I, like all Canadians, felt an unbelievable sense of

pride. This is a thing that I think in Canadians sometimes fades away a little

bit, and we have to once in awhile have something like those games to reinforce

it.

[1630]

I was

especially impressed by the way our athletes handled the adversity and the

situations. The class and integrity of those Canadians and all the Canadians at

those games, I think, really shone throughout the world. There's an old

expression: "You don't know how to win unless you know how to lose." I

think the Canadians really showed that. I know all of us were extremely struck

by the performance of Burnaby's Joe Sakic in the gold medal hockey game,

certainly a performance of determination, true passion and commitment to a

cause. I have a feeling there's a little bit of Joe Sakic, certainly the spirit

he brought forward, in all of us as Canadians.

I bring

this up because I would like to say: wouldn't it be truly nice if we could

return that feeling of pride to British Columbia? In a small way we could make

people feel really good about this province again. We could have people talking

about British Columbia and how great it is and how great it can be again.

There's only one way we can do that, and that's by making British Columbia whole

again. I believe this budget sets the groundwork for us to head in that

direction.

I know that

making British Columbia whole again is the commitment of this government, and

it's certainly my personal commitment. Mr. Speaker, all I can say to