British Columbia Committee Hansard (Blues) — Tuesday, June 8, 2021, p.m., Issue 88 (42nd Parliament, 2nd Session) (20210608pm-CommitteeA-Blues)
20210608pm-CommitteeA-Blues
British Columbia — Debates (Hansard)
Second Session, 42nd Parliament
(2021) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, June 8, 2021
Afternoon Sitting
Issue No. 88
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day
Committee of Supply
Estimates: Ministry of Jobs, Economic Recovery and Innovation (continued)
Hon. R. Kahlon
T. Stone
A. Olsen
D. Davies
J. Tegart
T. Shypitka
R. Merrifield
Proceedings in the Douglas Fir Room
Committee of Supply
Estimates: Ministry of Forests, Lands, Natural Resource Operations and Rural Development (continued)
Hon. K. Conroy
J. Rustad
Proceedings in the Birch Room
Committee of Supply
Estimates: Ministry of Agriculture, Food and Fisheries (continued)
Hon. L. Popham
M. de Jong
I. Paton
Estimates: Ministry of Health
Hon. A. Dix
S. Bond
D. Ashton
S. Furstenau
TUESDAY, JUNE 8, 2021
The House met at 1:34 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: In this House, I call Committee of Supply on the estimates of Jobs,
Economic Recovery and Innovation.
In the Douglas Fir Room,
Section A, I call the estimates for Forests,
Lands and Natural Resource Operations.
In the Birch Room, I call the estimates for the Ministry of Agriculture,
and when they’re finished, we’ll start the estimates of the Ministry of
Health.
[1:35 p.m.]
Committee of Supply
ESTIMATES: MINISTRY OF
JOBS, ECONOMIC
RECOVERY
AND INNOVATION
(continued)
The House in Committee of Supply (Section B); N. Letnick in the
chair.
The committee met at 1:39 p.m.
On Vote 35: ministry operations, $78,648,000
(continued) .
The Chair: Just if I may, a personal moment to welcome the member for
Cariboo North to the House in this new COVID environment. We are
enjoying taking our masks off and putting our masks on — especially
the member for Kamloops–South Thompson, I’m sure.
With that, who wants to go first?
Minister.
Hon. R. Kahlon: Thank you, hon. Chair. Again, thank you for the reminder for all
of us about the masks.
A special welcome to my friend from the Cariboo. It’s nice to see
her — first time during the pandemic. Again, it’s a little weird being
here, but you’ll get the hang of it real quick.
[1:40 p.m.]
T. Stone: I, too, would like to welcome the member for Cariboo North. It’s
great to have you here in the chamber and in Victoria. Appreciate the
incredible work that you’re doing back home to fight for your
constituents.
Just for a little bit of planning, we’re going to go through a
bunch of jobs numbers and more on some related issues. The two Crown
corps that we had talked about earlier are good for today. We will
likely end today with a series of some local questions from a number of
my colleagues. I’m not sure exactly what time that will start, but it’ll
be towards the end of today.
I just wanted to take us back to where we left things off earlier
today. We had a fair bit of back-and-forth on StrongerBC and direct
supports versus other types of supports — grants and direct relief
versus loans and deferrals, and so forth. I really wanted to hone into
StrongerBC and the component in StrongerBC which is contained on table
1.2.6 of Budget 2021, “Ongoing business supports from the StrongerBC
economic recovery plan.”
The small and medium-sized business recovery grant which was
announced in September of 2020, containing $345 million, consisted of
dollars that had been approved by this assembly in March of 2020. Budget
2021 provides for a forecast spend, of that $345 million in the small
and medium-sized business recovery grant, of $150 million in the 2021
budget and the remaining $195 million in the 2021-22 budget, the current
fiscal year that we’re now in. In terms of the previous fiscal year of
2020-2021, $150 million represents about 43 percent of the overall
program budget.
First off, does the minister feel that it was acceptable that less
than half of the dollars — again, which had been approved by this
assembly in March of 2020 — rolled out six months later in the
StrongerBC plan in September of 2020, albeit a week before the
provincial election was called? That the result of all of those time
delays and timelines being stretched and so forth resulted in only 43
percent of the entire program allocation being pushed out the door to
those small businesses that really need the support the most?
[1:45 p.m.]
Hon. R. Kahlon: Because we just started this and the hon. member laid out some
timelines, I think it just makes sense to go through a little bit of the
timeline with him.
As we were canvassing prior to the lunch break, StrongerBC was
announced on September 17, 2020. The intake for this grant program was
launched on October 9, 2020. He will, I’m sure, remember that on
December 23… A few weeks after becoming minister, after some
consultation, we expanded the program on the 23rd.
[1:50 p.m.]
Originally, it was targeting those that were the most vulnerable
businesses. We were able to adjust the program at that point. We further
expanded the program on March 4. Currently the staff — which are doing
an amazing job, by the way, under challenging times — are approving
between $2.5 million to $4.8 million per business day.
I think it’s important to know that 260,000 workers are impacted
by the financial supports that have gone out already. That’s
significant. If you look at any program in government and go back to the
history, 260,000 is a very significant number. I know, in the context of
today’s conversation, there are going to be a lot of numbers being used.
I think the hon. member and I will agree even saving a handful of
businesses is important, but ensuring that 260,000 employees continue to
be employed during a challenging time is quite significant.
T. Stone: The question was: is the minister able to explain why only 43
percent of the $345 million program, which was announced…? He said he
put the date out there again, and it’s correct: September 27. Why was
there the delay between March 2020 and the StrongerBC launch in
September? Why was there that delay? Is he satisfied that, likely as a
result of that delay, only 43 percent of the $345 million earmarked for
this business recovery grant program was actually pushed out the
door?
[1:55 p.m.]
Hon. R. Kahlon: I think we’ve discussed this. I’ll just say it again, that from
March 2020 to June 2020 to September to December to January, February,
March, now, the pandemic has changed. The needs have changed.
When StrongerBC was announced in September, the program was
designed to support the most vulnerable businesses. It was a very
specific criteria. As we have done from the beginning of the pandemic,
we continue to listen to our stakeholders, and maybe this is a good time
for me to say a big thank-you to all of them for working cooperatively
with government to find solutions and identify challenges. That’s what
we’ve done from the beginning.
The program launched. We heard feedback. Certainly, in the early
days of becoming minister, taking this role on, that was a priority for
me. I reached out to many of the stakeholders and took their feedback
about what they suggested we should change. We accepted all the
recommendations. In fact, we made those changes in December.
As businesses started to apply, we were able to continuously
adjust as the pandemic adjusted. I think all of us were hoping that the
pandemic wouldn’t last this long. Certainly, all of us are praying that
it won’t last longer. But that was what we were doing from the
beginning.
What I can confirm for the member is that when the budget was
initially announced, it was $300 million, and now we have $430 million.
So the program has been oversubscribed. We have more businesses applying
than we had originally projected. I’m sure he would agree that that’s
good for the province. That’s good for businesses across
B.C..
T. Stone: Well, I think that what’s good for businesses across British
Columbia is for small businesses to still be standing when the pandemic
is over.
The reality is this. As I’ve said several times now, we
unanimously approved billions of dollars of funding in March of 2020. It
took six months and, frankly, two waves of the pandemic before the
government decided to launch its StrongerBC strategy, which was launched
on September 17 of 2020. Four days later, an election is called, which
subsequently delayed pushing these dollars out to businesses even
further.
We find ourselves with a new government being sworn in, in
November. The minister knows well — we canvassed this extensively
through November, December, January and February — just how slow it was
to get dollars within this $345 million small and medium-sized business
recovery grant out the door. So it’s a bit disingenuous to say, “Well,
the pandemic was evolving and changing, and we were hopeful that it
wasn’t going to be as bad as it was,” and so forth.
Between March of 2020 and September of 2020, we all witnessed
thousands of small businesses close their doors. Many of them are never
going to reopen their doors. Many of those folks will tell you that they
were looking around for the government of British Columbia to stand up
and support them, and the government didn’t roll out the StrongerBC
program with those direct supports in the form of grants and direct
relief, fully six months after the funds were approved in March. So
that’s on the government’s…. That’s their record. It’s unfortunate, but
it is what happened. Unfortunately, a lot of small businesses have paid
the ultimate price as a result of those delays.
I will further say that the small and medium-sized business
recovery grant, albeit when the minister includes the circuit breaker
funding amounts, there is an overall larger pool of support there —
we’re still going to be standing here months from now waiting for all of
these dollars to be pushed out the door in support of those businesses
that need it.
[2:00 p.m.]
I mean, it’s conceivable that we could be 1½ years into this
pandemic, and the minister says that the program is oversubscribed.
Perhaps he should stop saying, as he did earlier this morning, about how
businesses impacted should go and apply for the small and medium-sized
business recovery grant, if it’s truly oversubscribed. But that’s a
different question. The reality is, we’re a year and a half into this
thing, and we’re going to have significant dollars likely still sitting
with the government and not having been pushed out to small
business.
On that note, I would like to ask the minister: how much has been
paid out to businesses currently, like to this date, for the small
business recovery grant, the circuit breaker grant, the PST rebate, the
increased employment incentive and the launch online grant? Again, how
much money is in each of those pots, and how much has been actually paid
out to businesses in each of those five program areas?
[2:05 p.m.]
Hon. R. Kahlon: So there are a lot of things there that the member asked about.
But I think, again, before we move to some of the specific questions at
the tail end, I think it’s important to clarify for the member, if I
haven’t been clear enough for him, that in March we didn’t wait until
September to put supports in place. Supports were put in place in
March.
Additional plans — part of StrongerBC — additional supports came
in in September, but we did put supports in immediately to support
businesses. Of course, we can debate this back and forth if the member
disagrees, but it was popular from those that were affected, because
those were measures they were asking for.
The program, StrongerBC, was launched in September. Government
staff had to turn that around into a program to set up their intake
process. They set that up and launched it on October — I believe it’s
the 20th. I shared the exact date with the member already. So the member
should know that. It opened up October 20. I’ve given him the timeline
of how the program was adjusted, we’ve been pretty transparent on
that.
I’ve also shared with him that the small and medium-sized grant
program was originally $300 million.
[2:10 p.m.]
When I say oversubscribed, I mean that we have more applications
since that $300 million, and that’s why the budget has gone to $430
million. I’m sure the member, like myself, will encourage businesses
that need financial supports to apply. I know there have been times when
some people in the opposition have raised the needs of certain
businesses. We have proactively reached out to them to help them apply,
and some of them have already successfully received financial
supports.
The member asked about a couple of programs. I’ll go through each
of them with the member. The small and medium-sized grant program was
launched on October 9, expanded on December 23 and expanded further on
March 4. We have received 17,895 complete applications, and 10,217
applications have been fully approved. That’s $214.4 million.
It’s important to note, from the adjudication team, that 30 to 50
percent of applications submitted for adjudication came in with all
their documentation. Between 30 and 50 percent came in with complete
information, and 40 percent of those submitted inaccurate banking
information, which obviously slows the process down. The timelines for a
complete and accurate submission are four to six weeks. I think that’s
important for the member to know.
He raised the circuit breaker grant program, for which we had
12,416 applications fully complete — that’s $52.498 million — and 40
percent of those applications that were submitted had inaccurate banking
information. It was often the case that businesses would apply, but then
they would put their personal banking information in, as opposed to the
correct business that they were applying for.
The member asked about the launch online program. I think it’s
important for the member to note that the original launch online dollar
allocation was used up within two weeks. Within two weeks, that program
had been so popular with businesses throughout B.C. that that money was
fully subscribed. So we increased the financial contribution
significantly. Over 7,300 applications have been received, and 3,680 of
those businesses have received $15.95 million in funding, as of June 4.
Of course, the member knows that Alacrity Canada is administering that
program.
I think he may find this interesting as well: 49 percent of every
dollar that’s gone out from that program has gone to BIPOC and regional
communities. So the money has been spread to communities. It wasn’t
centralized in Vancouver. We had metrics in place to ensure that dollars
were getting out to rural communities, that BIPOC communities were
having an opportunity to participate. And 49 percent — that’s a
significant number of businesses.
The member also makes…. There have been a couple of times where, I
guess, we disagree on numbers. I’m reporting actual reports and facts
here. The member has been raising some numbers; I’m not entirely sure
where his are coming from. The monthly net businesses opening in B.C.
have been going consistently positive since June 2020.
So February 2020, we saw 218 businesses, net decrease. In March
2020, we saw a decrease of just over 5,000. In April, we saw a decrease.
But from June, we’ve been seeing a steady increase, net increase, of
businesses. In fact, we are at 99.8 percent of businesses that have
opened from February 2020 to now — 99.8 percent.
[2:15 p.m.]
We’ve seen a steady net increase of businesses opening from June
2020 to now, which I think is significant. Again, I think it’s a
testament to the amount of financial supports that are in place that
that many businesses were able to continue to stay open. Of course, my
family ran a restaurant here in Victoria for a decade. I’ve said on the
record many times that it was difficult in normal times to be able to
operate a business. I can only imagine the stress that many businesses
have faced in the pandemic.
Again, a historic amount of dollars, highest per-capita supports
for people and businesses in the country, and the numbers speak for
themselves.
T. Stone: Well, on the business numbers that the minister has just thrown
out there, I would hope that he would agree that there are sectors that
are not reflected in his 99.8 percent number, meaning there are sectors
that continue to be significantly hampered. Just last evening, walking
down Douglas Street and over to Wharf Street and up, I spent about an
hour walking around downtown Victoria. It’s just staggering, in early to
mid-June, that if you’re lucky, you might walk past one other human
being in an entire block of downtown Victoria.
Business after business is closed because their hours have been
significantly reduced. You look at their door, and it says their
business hours. There’s one Chinese restaurant: “We’re only open on
Fridays and Saturdays.” A clothing store, only open on Mondays and
Wednesdays. A sports retailer I was looking at was only open four days a
week. Presumably, they were open more than that before the pandemic
hit.
The proof is really going to be in the pudding months ahead from
now when we actually see how resilient they really have been able to
become. Frankly, when CFIB reports, as they did just the other day, that
the average small business has taken on $170,000 of debt during the
pandemic, the chickens are going to come home to roost when that debt
has to be paid back.
I would hope that the minister would acknowledge that. These
blanket statements of 99 percent of all the jobs being back, when we
know that the job profile in British Columbia is very different today
than it was a year ago…. Those blanket statements around 99 percent of
businesses having reopened…. The profile of our downtowns and
communities across the province is very different today, from a
small-business perspective, than it was one year ago.
I want to ask the minister. There were two other business supports
I had mentioned that are in that table from Budget 2021. The first is
the PST exemptions on select machinery and equipment. The second is the
wholesale pricing for hospitality licences. The other one that I had
mentioned earlier that I was hoping to get an update on is the increased
employment incentive tax credit — just what the profile looks like on
that program as well, the total program dollar value and, again, how
much of those funds have actually been pushed out to support the
businesses that they’re intended to support.
Hon. R. Kahlon: I’ve been on the record many times to say that we’re all in the
same storm, but we’re all in different boats.
[2:20 p.m.]
The impacts of the pandemic have been felt disproportionately by
people but also businesses. Certainly, as the hon. member knows, I was
born and raised here. When you walk around the downtown core, it’s
quiet. It’s obviously quiet because we know the tourism sector in
particular is not seeing international tourism. We know that many
businesses have shifted to working remotely.
There are a lot of unknowns. The member is right on that. There
are some unknowns around what that will mean going forward and whether
there will be some sort of return to work.
But when you don’t have that base of people coming to visit the
local restaurants here, and you don’t have the international tourists —
yeah, it’s challenging. It’s a challenging time. We have been clear: we
acknowledged from day one that the tourism sector has been hit hard. I
agree with the member on that.
The member asked three questions around PST exemption, wholesale
pricing and employment tax incentive. I suggest the member raise that in
the Ministry of Finance estimates, which I believe are coming in a
couple of days. They’ll be able to better provide that answer for
him.
T. Stone: I guess the next question would be this. I appreciate the numbers
that the minister has put out there today, in terms of the update on the
small and medium-sized business recovery grant, the circuit breaker, the
launch online. I’m a bit surprised that he can’t or won’t — as a member
of cabinet and a member responsible for economic recovery and jobs,
generally — answer questions about the increased employment incentive.
He certainly talks a lot about it out there in the province.
I want to ask this. We’re talking about the small and medium-sized
business recovery grant, which, again, had an original dollar value of
$345 million. Only about 50 percent of the dollars, or less than 50
percent of the dollars in that program, are out the door, and the
minister says the program is oversubscribed.
The circuit breaker grant, if I heard the numbers correctly —
about 40 percent of the dollars are out the door. That, I believe, he
said is oversubscribed as well, or fully subscribed. Launch online was
fully subscribed within days of being launched, according to the
minister, but only 50 percent of those dollars are out the
door.
It kind of points to a theme here of pretty significant delays —
adjudication times, application processing times and delays in actually
getting the supports out the door. If we’re fully subscribed in most, if
not all, of these programs, why is it taking so long to actually get
these dollars out to the businesses that critically need the support?
They need it now, not weeks or months from now.
[2:25 p.m.]
Hon. R. Kahlon: Appreciate the question from the hon. member. I think I
highlighted some of the challenges around documentation in my previous
answer: 30 to 50 percent of applications for the small and medium-sized
recovery grant were submitted for adjudication that had the complete
documentation. That means up to 70 percent at times didn’t have it all
in. Forty percent of those who submitted — inaccurate banking
information.
It’s not the entirety of the challenge, but there have been some
challenges in that circuit breaker I highlighted also, because that
program was very streamlined. In fact, it was, you can say, co-developed
but with strong advice from our association and private sector
partners.
[2:30 p.m.]
Even that very streamlined process had about 40 percent of
applications that came in with not complete information, so that leads
to, obviously, some delays in the process.
Then the question around Alacrity Canada administering the
program. I think it’s important for the member to know that the original
budget for that program was used up within two weeks of the program. We
had enough applications within two weeks. That’s the program for launch
online. That’s why we significantly scaled up the amount of money
available. If you have enough applications within two weeks, you know
there’s a real need for that program. Alacrity Canada is going through
the applications and supporting our businesses to get online.
[S. Chandra Herbert in the chair.]
I think that’s important work — important for many of our
businesses to prepare and transition for what the economy will look like
post-COVID and, certainly, the challenges they’re facing right
now.
T. Stone: What is the average adjudication time or processing time for
applications in the small and medium-sized business recovery grant
program, the circuit breaker program and the launch online?
[2:35 p.m.]
Hon. R. Kahlon: For the small and medium-sized recovery grant program, the ideal
time, with a complete and accurate submission, is four to six weeks.
With the circuit breaker relief grant program, the ideal timeline, with
complete and accurate information, is two weeks. With Alacrity Canada
and the launch online, it’s 15 business days.
T. Stone: The concern that I’m highlighting here is just how long it seems
to be taking for the government to actually, if you look back over the
course of the entire pandemic from March of 2020 to today, push supports
out the door for small business.
I’m trying to make sense of the fully subscribed, oversubscribed
realities of these programs, as the minister has stated, with the fact
that there are still, in each of the cases of these three programs, at
least 50 percent of the funding that hasn’t yet been pushed out the
door. It just doesn’t seem to make sense.
If we just go back through the dates here. The circuit breaker was
launched on April 8 as a carve-out from the small and medium-sized
business recovery grant. So two months ago. There is only 40 percent of
the dollars out the door — 40 percent. It’s been two months.
The launch online, which was launched on, I believe, February 3 —
that’s four months ago — is only 50 percent out the door. Then, of
course, the granddaddy of them all, the small and medium-sized business
recovery grant, with approximately $400 million in it, was launched on
October 9 of last year, which is eight months ago, and only 50 percent
of the dollars in that program have actually been pushed out the
door.
I mean, those are all the dates and the percentages as provided to
me today by the minister. Forty to 50 percent of the dollars out the
door for funding that was announced, in the case of the recovery grant,
back in October; the launch online, in February of this year; and the
circuit breaker, two months ago, on April 8.
What is the minister going to do, or what is he doing, to
accelerate the application process and to flatten this application
process, recognizing many of the businesses actually should be eligible
for a couple or, perhaps, all three of these programs? If they provide
the financial information and the other required documents in one
program, perhaps they shouldn’t have to provide the same level of
documentation in subsequent programs. Maybe that’s not the
problem.
What is the minister going to do to significantly expedite the
application process and the adjudication times here so that the 50 to 60
percent of the hundreds of millions of dollars that have been approved
by this Legislature to support small businesses actually get pushed out
the door in weeks from now, not months from now?
[2:40 p.m.]
The Chair: Minister.
Hon. R. Kahlon: Thank you, hon. Chair. Welcome to the chair.
There is, I guess, a whole bunch of things. I think it’s been
clear from the beginning that since I’ve become minister, we have been
nimble.
[2:45 p.m.]
We have adjusted programming as needed. We’ve taken feedback.
We’ve listened. We’ve created tables and had meaningful exchanges with
all our stakeholders and adapted good ideas to our programs from the
beginning.
As the member will know — we’ve talked about this — the pandemic
has changed, needs have changed along the way. I mean, we created a
circuit breaker program within days, which was extraordinary, a real
credit to the civil servants within the B.C. government for the amazing
work that they’ve done. We’ve listened. We’ve adjusted. We’ve been
nimble.
Staff inform me that they have had so many positive conversations
with those applying about the recovery plan portion of it. Many
businesses that have applied really appreciate, in the conversations
with our adjudicating team, the process of building a recovery plan.
Many of them haven’t had to think about that. Of course, some of the
larger operations have the means to do this, but a lot of the small
businesses haven’t had to think about that. The adjudicating team
highlights the positive interactions that they’ve been having with
businesses on that.
The member highlighted that it’s possible that businesses can get
multiple applications and grants. It’s very possible for a restaurant to
have gotten the small business recovery grant, the circuit breaker and
the launch online as well as getting tuition covered for the digital
bootcamp. That’s significant for many businesses.
I think it’s also important for the member to note that staff have
shared that it’s not a simple process like the government’s programs in
the past, where you’re rejected or you’re approved, and it’s over. There
is a lot of back-and-forth that happens. The adjudicating team has been
working very closely with every applicant, not just to say, “You’re
rejected,” but to say: “Have you considered this in your application?
Can we suggest this? Maybe you can apply for a greater dollar amount,
because if you readjust your paperwork….”
They highlight the fact that the small and medium-sized business
grant program is high-touch. It’s back and forth. They’ve expressed that
some businesses didn’t file taxes, so they had to wait for people to go
back and file their taxes. Often the case is that these businesses have
never applied for a government program, ever. This is the first time
they’re applying for a government program.
The adjudication team shares with me that there are a lot of
emotions. Not only are they spending time with folks on the application,
they’re also talking to them, because we’re all going through a very
traumatic experience in our lives.
To have someone on the other end to understand and listen to a
small business owner and their frustrations and their anxieties about
what they’re going through is very important. I think it often gets
overlooked in the thinking around this as approved or not approved —
that there are real human beings involved. I appreciate the work that
our team is doing to ensure that there is a conversation. The door is
open. We continue to be flexible.
The other program, the Alacrity Canada program, is very similar.
And, of course, the circuit breaker program was launched, again, in
record time. I’m sure the member has more questions on them.
T. Stone: Well, I don’t take issue with the hard-working public service that
are, I’m certain, working long days and probably have been under a
tremendous amount of stress and anxiety as they’ve been working with
people day in, day out that have been going through their own challenges
and stress and anxiety. My issue is the amount of time it has taken this
government to create programs and push them out the door and push the
money out the door.
[2:50 p.m.]
I will say again, the small and medium-sized business recovery
grant was created and launched on October 9, eight months ago. By the
minister’s own numbers, just under 50 percent — it’s actually 49.8
percent — of the dollars are actually out the door. How is that
possible, eight months since the program was created and actually 14
months since the beginning of the pandemic and the approval of the
funding to support businesses? How is that possible?
On top of which, the launch online, as I said, launched in early
February — so four months ago. It only has 37.9 percent of the dollars
out the door. That’s in a four-month period. That’s, apparently, on a
program that’s been oversubscribed, that the minister had to put
additional dollars into because of the uptake and interest.
Last but not least, I understand that — certainly, by this
government’s track record — the creation of the circuit breaker grant,
he says, was created in days. Well, fair enough. By this government’s
track record, that’s pretty fast. But even that program has been out
there for a number of weeks. It was launched on April 8. So that’s two
months ago, and we’re sitting here with 40.4 percent of dollars in that
$130 million program out the door.
The minister’s comments about nimbleness, meaningful and positive
feedback, being adaptable, engaging stakeholder conversations — all this
is all fine and dandy. But this Legislature approved hundreds of
millions of dollars in supports for small businesses, at least half of
which, by the account of these three programs, hasn’t actually made it
to the small businesses that need the help. That is wrong.
So I will ask the minister again: what is he doing to fix that?
What is he doing to actually speed this process up? Will he commit to
hiring some more people to help with the application process? Will he
commit to modifying the eligibility requirements on these programs, if
required?
He knows, and I know, of lots of businesses that have fallen
through the cracks. We’ll talk about some of them in the moment that,
frankly, haven’t been eligible for any of these grants and need help.
They’re sitting there looking at hundreds of millions of dollars that
haven’t been pushed out the door yet in these programs, wondering:
“Well, why is my situation not important enough? Why do I not warrant
actually being successful in applying for some funding?”
I’m asking on behalf of thousands of small business owners out
there, hard-working men and women who have risked everything. The
average business has taken on $170,000 of debt to try and survive this
pandemic. Many have seen their revenues drop to next to nothing. What is
the minister doing today to accelerate the approvals of these different
grant programs so that in a couple weeks we could be having the
conversation around maybe 80 percent of the funds being out the
door?
A couple of weeks after that, let’s make the goal that we’ve got
all the funds out the door so that this support actually can be put to
use to prevent any further businesses from having to close permanently
or not be able to bring their employees back as quickly as they
otherwise would, and give some certainty that these businesses are going
to be able move forward with more confidence in the months
ahead.
[2:55 p.m.]
Hon. R. Kahlon: Again, I appreciate the questions from the member opposite. When
he was referring to the circuit breaker, he said that for this
government’s standards, getting a circuit breaker up and running in a
few days might be good. I was really curious about that. When, in his
experience, has he ever seen a program or has he, himself, put a program
together that was up and running in a few days?
Perhaps he can share from his experience — or perhaps any time in
government that he can reflect on — when a program was created in that
timely manner. I think it would be a good opportunity for me to hear
about that.
Now, the question the member had was: what are we doing to help
expediate the process? We hired additional staff in March to go through
the process. As we saw through the adjudication team, where there was
high touch, where businesses wanted to talk and discuss their
applications, we wanted to ensure that there was staff to be there to
support them.
I think it’s easy, talking about numbers, to forget the fact that
the small and medium-sized business recovery grant program has already
helped over 10,000 businesses here in British Columbia. Often we talk
about one business. Can this business get money? Can this business? Just
take a step back and think about over 10,000 businesses, 260,000 staff
that have been supported through this process. It’s quite
significant.
If you look, since June 2020, we have seen a net increase in
businesses opening — every single month since June 2020. That is quite
significant. How is that happening in the middle of a pandemic? It’s
because of the significant supports that are in place via government.
We’ve talked about it.
Of course, the member would like to talk about just one program as
the only program for supporting businesses. If he would like, I am happy
to go through the entire list again. We do have plenty of time. But
he’ll know that it’s a very comprehensive amount of support that we’ve
put in place.
[3:00 p.m.]
I haven’t even touched on the supports the federal government put
in place. We work closely with the federal government to ensure that
whatever programs we put in place are complementary and fill in needs
that, perhaps, their programs didn’t address. I’m sure, on further
questions, I can go through that entire list for the member
again.
T. Stone: Well, I’ll say this: thank God that the federal government came to
the table with CERB, with the rent subsidy program, with the range of
other business supports that were provided — the wage subsidy program.
Thank God, because the overwhelming support, in terms of direct supports
and relief for business, has actually not come from this government here
in British Columbia; it’s come from the federal government in
Ottawa.
What this government has tended to do is tag along and try to ride
on the federal government’s coat-tails, as they did with the rent
subsidy program. But the big dollars have come from the federal
government. So if the minister is now going to transition to a component
of estimates here by trying to take credit for federal dollars, I think
that’s patently ridiculous.
I want to just ask a few questions about some specific businesses.
I’ve asked the question in here a few times. Why, if we’ve got 50
percent of the funding still sitting in the government’s bank account,
not sitting in small businesses’ bank accounts, 50 percent of the
funding, roughly, across these three programs that we’ve been talking
about for an hour or so here today…. As one solution moving forward to
get the money out the door, why not look at expanding the eligibility a
bit, based on cases that have been denied and, frankly, have been denied
for ridiculous reasons?
The minister would know well that I have spoken about a number of
businesses that have come to me, and we’ll have other examples from
other colleagues later today. He’ll recall that I’ve asked a few times
in this House about the Ohana Market in Sun Peaks. Bobbe Lyall, a young
woman, pursued her dreams, started a small business. She started the
business up in late 2019. She has struggled all year — all through 2020
and into 2021. They’re still standing. They’re making it work, but just
barely.
We asked the question of the minister many months ago, and said
their issue — the Ohana Market in Sun Peaks — is that the eligibility
requirements for the small and medium-sized business recovery grant
provides for a requirement that you have to show a profit in 2019.
They’re a new business. They couldn’t show a profit in 2019, and they
only started in late 2019. They also didn’t qualify, because they hadn’t
been in business for the full required 18 months. I mean, these are like
artificial lines that are drawn in the sand.
I asked the questions in this House, and obviously, the ministry
is paying attention. A really decent, hard-working individual within the
ministry reached out to Bobbe, just to understand her situation and to
ask for a few more details — and presumably to try to help, so fair
enough. But it’s what I said to the minister prior to that engagement
happening. I said that you can have somebody call her, but unless you
change the eligibility requirement requiring being in business for 18
months and having a positive cash flow in 2019, she’s not going to
qualify. So you’re wasting her time, and you’re wasting your staff’s
time. Nevertheless, someone from the ministry called.
Well, just the other day, May 28, I get an email from Bobbe, an
update, and I want to read it into the record, because I just think this
reflects well an example of the thousands of businesses out there that
have been excluded from these grants and, certainly, haven’t been
eligible for those that they should be.
She says to me, on May 18:
“Hello, Todd. I just thought I would follow up with you with regards
to the B.C. recovery grant.
[3:05 p.m.]
“After you spoke about Ohana, I did hear from the ministry. They
were kind, and initially felt that with the actual occupancy from the
resort, we could qualify. So they encouraged me, and I did go through
the process of applying and felt quite optimistic based on our
conversation.
“After over a month of waiting, with no contact, I reached back out
to see if there had been any movement. After another week, I did finally
hear back that we don’t qualify, because we don’t show positive cash
flow prior to the pandemic.”
Again, they opened on December 25, 2019. December was a negative
month, from a cash flow perspective. January was negative. February was
negative. But they were able to just eke out their existence as a
business as they have gone through this pandemic.
She goes on to say: “I feel all of our choices have expired. I
know that we are almost through this, and we’ve been holding on. I’ve
pivoted, and my team has worked incredibly hard. I’ve been down every
other rabbit hole there is, and my business cannot sustain any more
loans.” She goes on to talk about the level of debt that she’s had to
take on as a result of the pandemic.
This is an example of one of many small businesses that…. They
don’t understand. I don’t understand. I don’t think British Columbians
understand why this particular business, Ohana Market, on behalf of many
other businesses that are in exactly the same situation….
Why are they not eligible for the small and medium-sized business
recovery grant? Why will the minister not change the eligibility
criteria so that they are eligible to receive a little bit of support
that would go a long ways to helping this small business stay in
business and continue to serve the community where they’re located and
employ about a dozen people?
[3:10 p.m.]
Hon. R. Kahlon: Again, the member gave a glowing endorsement of the federal
Liberal government: “Thank God for the federal Liberal government.” I’m
sure they’ll find that quote and use that glowingly.
Again, I’ve highlighted for the member on several occasions in
these estimates — and I appreciate we’re only on day 2; by day 4, I’ll
hopefully have hammered away home — the amount of supports that we’ve
been able to provide here for businesses in British Columbia, for
important businesses.
The member mentioned a specific business. Of course, I can’t look
up the specific business and what they qualified for or what they
didn’t, but from the sounds of his description, I certainly hope that he
had advised them to apply for the circuit breaker too, if they’re a
restaurant, because that would have been money available for them. I’m
sure the member, being a good critic, would have informed them that that
would have been the best course of action. I’ll leave that with the
member.
Now, he’s got quotes of a business that was hoping to apply. I’ve
got hundreds of quotes from businesses that applied and received the
grant.
We had Whistler VIP Mountain Holidays. They reached out to us with
comments. They said:
“I want to say a big thank-you to the people that work for our
provincial government who made this possible. It’s been a difficult time
for artists running small businesses.
“This grant started making a difference when I was making the plan.
Just to have a sense of direction is huge. It gave me hope. The funding
and plan really add to my optimism and enthusiasm for opening up again
and keeping my belief alive of hanging on to a business through
difficult times. I have more energy every day, and this enthusiasm
spreads to the community. I can sleep at night now, and that gives me
more creative energy to make a plan that works.
“Thank you.”
This is actually a business in Prince George. VIP Mountain
Holidays originally had their plan to entice more Canadians to visit
Whistler, but with the travel restrictions, they were able to pivot and
promote to a new audience in Vancouver and local tourism.
We had a business in Coquitlam that was grateful because they were
able to use the money from their small and medium-sized recovery grant
program and then leveraged the launch online program and used their
contribution from the small and medium-sized recovery grant program to
be their contribution for the launch online program, which allowed them
to improve their website, hire an online marking team and do
advertisement. They’re extremely grateful.
There are businesses in Vancouver that have been writing. We’ve
employees and is helping refugees with employment, that talked about how
the program was very easy for them to apply and how grateful they are
for the funds.
We can go on at great lengths of all the businesses that have been
writing. Again, over 10,000 businesses. I’ve already highlighted to the
member that we hired some additional staff in March to help get the
dollars out quicker.
Originally the program was targeted to support 15,000 businesses.
We have 17,895 fully complete. The member is talking about changing the
program, and what I’m telling the member is: we have. We’ve adjusted the
programs and listened to the business community. That’s why we’re seeing
the dollars we’re seeing, the amount of businesses we’re seeing that
were applying. That’s why we’ve added additional dollars to the fund,
from $300 million, originally, to up to $430 million — so we can support
more businesses as we’ve gone through this pandemic.
[3:15 p.m.]
Surely you can agree that having a target of 15,000 and seeing
17,895 come in already is a positive for British Columbia.
T. Stone: Well, 10,000 businesses that he keeps referencing is about 2
percent of the 530,000 small businesses in British Columbia. So there
are a heck of a lot of businesses out there that are not getting the
support.
Frankly, to respond to Bobbe Lyall, who owns Ohana Market up in
Sun Peaks and is being left out in the cold because of an artificial
eligibility requirement that requires her to be cash flow–positive in
2019 and in business for 18 months prior to the date of application….
It’s cold comfort and frankly, I would say, insensitive to skate past
her concerns and simply start rattling off quotes from other
businesses.
I know there are businesses out there that have been able to apply
for and receive funding from each of these programs. So 40 percent of
some of the programs and 50 percent of others in terms of total revenues
out the door, so obviously, that would mean there are some businesses
that have been successful.
My concern, and the frustration I’m trying to express here, is
that there is still half of all of those dollars that has been not
pushed out the door after many months, in several cases, of these
programs existing. There are a lot of businesses that actually need the
help that can’t get the help because of these artificial eligibility
requirements that remain in place.
I would again ask the minister if he is willing to entertain a
modification in the eligibility requirements related to businesses that
either haven’t been in business for the full 18 months prior to the date
of application or are businesses that, for whatever reason, were not
cash flow–positive in 2019. Will the minister consider changing the
eligibility requirements on those two fronts, which I would suggest
would then result in a whole bunch of additional businesses being
eligible for the support that they need? Will the minister do that to
help these businesses out?
[3:20 p.m.]
Hon. R. Kahlon: Again, the member has referred to some details about a specific
business, and, of course, I’m not able to go into the specifics of that
business and their particular application. Again, I do hope that the
member had urged them in his discussions to apply for the circuit
breaker, which probably would have been available for them. I think it’s
important to highlight for the member, again, the other supports that
we’ve put in place that do benefit businesses.
Of course, I’ve highlighted already that early on in the pandemic,
in March, we had deferred property taxes, cut property taxes, deferred
other pressures that businesses were facing. We put in rules to ensure
that there weren’t commercial evictions happening. We forgave three
months of Hydro bills. Of course, tax credits for hiring and rehiring
employees and PST breaks for purchase of new equipment.
If it’s a business that has online sales, they can apply for
launch online. If they serve liquor, of course, they benefit from the 25
percent reduction in liquor pricing. Of course, that’s made permanent.
There’s a whole host of other supports.
At this point, hon. Chair, hopefully I can request a five-minute
recess.
The Chair: You may request, and I will grant that request. Thank you,
Minister.
The committee is in a five-minute recess.
The committee recessed from 3:25 p.m. to 3:36 p.m.
[N. Letnick in the chair.]
The Chair: Member for Kamloops–South Thompson, Kamloops
Blazers.
T. Stone: I like that, Mr. Chair. Kamloops Blazers did win the division this
year and last year.
I wanted to move on. There are a few groups that have really
struggled for funding or haven’t been eligible for supports. The first
one…. I’m hoping that this is a really simple, straightforward question
for the minister, with a simple, straightforward answer back. It should
be an easy one for him.
We’ve profiled in this chamber, in question period, the lack of
eligibility for ANAVETS for receipt of the circuit breaker. Originally,
the legions weren’t eligible either. We brought that issue into the
House. We were really pleased for legions around the province that the
government decided to make legions eligible for some support, about $1½
million I believe — really pleased that legions are going to get the
support that they need.
If we can just reiterate, most legions in the province generate a
significant amount of their revenue, which really is make-or-break in
covering their operating costs, via the kitchens that they operate — the
lounges, the bars, the social events that they’re able to put on. They
operate, for all intents and purposes, as a lounge/restaurant, various
days and hours depending on the legion and the province.
So when the circuit breaker was brought in, the legions were
impacted as much as any other hospitality organization. Obviously,
legions have been impacted throughout this pandemic. So it was the right
thing to do. We were pleased to profile the issue on behalf of legions,
and we were pleased to see that the legions were finally provided
supports.
But we were shocked that ANAVETS, of which there are 18 locations
— 18 ANAVETS units — across British Columbia, including in my hometown
in Kamloops, but all over the province…. ANAVETS is also an organization
comprised of veterans that looks and feels and operates very similarly
to legions. ANAVETS, despite some assertions to the contrary from
government over the last week or so, have written to the
province.
[3:40 p.m.]
Again, they were shocked — we were shocked — that when the
government finally reversed its position on the legions and decided to
make legions eligible for the circuit breaker, the ANAVETS weren’t
included in that. It just makes no sense. Even if you just said that at
a rate of $10,000 per ANAVETS unit…. I mean, we’re talking about 18
units, so $180,000 is the number. We’re not talking about millions
here.
I’m hoping that the minister’s answer will be the right one here.
The right thing to do is just to say: “We acknowledge that ANAVETS
should be included. We are doing the work right now to make sure that
that comes to pass.”
To the minister, are he and his government going to do good by the
ANAVETS organizations, the 18 units in British Columbia, as soon as
possible by making ANAVETS eligible to receive the circuit breaker or
some comparable level of funding in recognition of the support that they
need, the impacts that they have felt, the good work that they do and
what they represent in communities across British Columbia?
Hon. R. Kahlon: Thanks to the member for the question. Of course, the Army, Navy
and Air Force Vets in Canada play a very important role. We understand
there are 18 units across B.C. We have received the letter from them
regarding wanting additional supports. I have mentioned in question
period, and I’ll say it again, that we are also in conversations with
Veterans Affairs Canada. They could be doing, I think, more to support
these organizations.
That being said, we’ve received the letter, and we’re working on
that. We’ll have more to say as the staff continue to discuss with them
about their needs. So more to report later.
T. Stone: Just as a matter of follow-up on that. We heard the same response
the other day. I’m not sure why the minister — the Premier, I believe,
said it too — would be in any way deferring to the federal government or
Veterans Affairs on this.
The ANAVETS is very similar in look and feel and structure as the
legions are. So if the government were able to put a package together or
a program in place to support the legions…. I don’t understand why
engagement and consultation with the federal government and Veterans
Affairs Canada are needed.
[3:45 p.m.]
Nonetheless, I’ll just ask the minister this. Can the ANAVETS
organizations across British Columbia expect that they will receive
support from this government?
Hon. R. Kahlon: As I’ve already said to the member, we’ve received the letter.
We’re considering it, and we’ll get back to the member and, of course,
them as quickly as possible.
T. Stone: Well, I don’t know why it’s so hard. Eighteen ANAVETS units across
the province at $10,000 each would be $180,000. It’s not even a rounding
error in most ministries.
The government provided supports, I would point out, after a fair
bit of pressure from the legions themselves and from the official
opposition. I would say let’s get on with it. Do good by the men and
women who have served our country. Get them the support they need so
that their ANAVETS organizations remain viable moving
forward.
Speaking of…. Another group that is quite perplexed as to why they
haven’t received support from this government, certainly not at the
level commensurate with the pain that they have faced, is British
Columbia’s live events industry. The minister would know well that there
are all kinds of businesses in communities across this province that
operate within the live events sector.
They provide a wide range of support services. Often it’s couched
as audiovisual supports, and so forth, but it’s so much more than that,
so much broader. These are the support companies that make concerts and
graduation ceremonies possible. They’re the companies that make
conventions and conferences possible. They’re the companies that, in
many ways, make events like the PNE possible.
They are feeling left out and lost in the mix here in terms of a
lack of support from the province. The refrain in the sector at the
moment is: “We make a living by not being seen in putting all these
events on. We aren’t seen. Today we’re not feeling heard. Our concerns
don’t seem to be relevant to the government.”
For a little bit more context, I’ll read a few examples into the
record. The first is Briere Production, Chris Briere. They’re based in
Burnaby. He says…. Obviously, their sector has been shut down almost
entirely. You have to think about that. There are few sectors…. Even
restaurants weren’t shut down completely for the entire 14 months. The
live events sector has been shut down.
[3:50 p.m.]
Now, some have been able to pivot, which is a grossly overused
term, frankly. They’ve been able to put on very modest online events and
those kinds of things, which might account for 5 or 10 percent of what
their normal revenue would be. For all intents and purposes, the sector
has been shut down for the entire 14 months of the pandemic.
Briere Production — their losses have been mounting. They’re
anywhere from $50,000 to $200,000 in the red every single month through
this pandemic. They are going to end this pandemic with two to three
times the amount of debt that they had before the pandemic. They’ve had
to let go 200 contractors, and they’ve cut their full-time staffing
complement in half.
They’ve watched as over 200 events that they had on their calendar
for 2020 just didn’t happen. We all know why. The question isn’t: should
the events have happened? We know that they couldn’t because of health
restrictions, which were in place because of the pandemic. But there has
been a significant lack of support from the government.
The insult to injury for these companies is that they were not
eligible for the circuit breaker. You’ve got restaurants and pubs and
others — fitness centres — that get the circuit breaker. Fair enough.
They absolutely need it. The live events sector has been like…. It’s not
like a circuit. You’ve shut down all the power coming into the building,
right at the street level. The entire industry has gone dark.
Mike Miltimore, up in Kamloops — Lee’s Music — has seen their
employee complement go from 30 down to six. Their revenue has declined
80 percent. They’ve had virtually…. Every single one of their events
over the last 14 months had to be cancelled. They, again, are quite
worried about what the future looks like because of the level of debt
that they have.
You have to remember that these businesses are capital-intensive.
There are significant investments that they have to make in equipment in
order to be able to put live events on. That equipment doesn’t make
money for the company sitting in a warehouse. Again, very frustrated at
the lack of support commensurate with the pain and the shutdown that
they’ve experienced.
When you look at John Donnelly of the MRG group, they’ve lost $30
million over the last year. Tim Lang of Proshow has had a $10 million
revenue loss. He has a 75 percent revenue decrease, year over year.
They’ve had to let go a significant number of their staff.
Literally just today I received a note from Isaac Kinakin of Scene
Ideas. I’ll read part of it into the record. He says:
“We’re based in Richmond. We, basically, would work with concerts,
music tours and festivals, corporate events, trade shows, exhibitions,
experiential marketing and theatre. As you can imagine, we lost all of
our business last year, starting in January. What was once a $5 million
gross annual business with 30 employees went to zero — no revenue and no
employees. Since then, we have struggled. We have incurred a lot of debt
and made many pivots.
“I’m writing to you because I’m desperate, I’m tired, and I’m,
frankly, at my breaking point. I’m fed up with the current government,
their lack of compassion and their lack of understanding of what has
happened to my industry, as well as their constant ambiguous information
they’ve been giving us. Once again we have been denied funding, even
though we supply restaurants and bars, and we’re affected by the circuit
breaker shutdown. On top of that, we have been shut down since the
beginning with no hope in sight until possibly September, while
restaurants and bars have actually been able to stay open throughout
this whole ordeal.”
A bit of anger there — frustration, obviously — and a tremendous
amount of pain that companies in this space are facing.
[3:55 p.m.]
I would suggest that if the province doesn’t step up and do good
by this sector, something is going to happen that is going to shock and
is going to surprise a lot of British Columbians this summer and into
the fall. They’re going to expect that music in the park festival in
their downtown park or that live concert that had been rescheduled or
had been postponed several times or that convention that is always held
in a particular community every year, save the last couple of
years.
These events are not going to be there. They’re not going to be
there because the support companies — the hard-working men and women
that work in this industry, the live events sector — aren’t going to be
there to be able to put these events on. How sad that would be,
particularly coming out of the pandemic, as everybody gets their second
vaccination, and we continue to hopefully see COVID numbers fall, as
they are, and the future looks promising.
The sector needs help. So I’d like to ask, with that lengthy
introduction…. Instead of asking five or six separate questions about
specific companies, I thought I would put them all in one question
there, just to set the context for the pain and the frustration that
this sector is experiencing.
I would ask the minister if there is any work underway in the
ministry to provide additional supports to this sector in recognition of
the fact that they have been, essentially, closed for 14 months. As part
of that, will he extend the eligibility of the circuit breaker or
fashion a program that provides necessary supports for the live events
sector? They desperately need the help, and they need it now.
[4:00 p.m.]
Hon. R. Kahlon: I thank the member for the question. I, too, look forward to the
time when we’re able to all be in a park and see live events and music.
Who knows, I may even drop into his backyard to enjoy some of those
events as we get more vaccinations. Certainly, something my family wants
to do is to travel, hon. Chair, to your backyard, but we’ll stop in the
beautiful city of Kamloops, I’m sure, on the way.
I appreciate his concerns that we certainly want to support as
many businesses and as many of our sectors as we can. I know that the
Parliamentary Secretary for Arts and Film, who comes from the music
industry, has been a very passionate advocate for businesses in this
sector. He’s been meeting with many of them along the way.
I think it’s important for the member to know that we’ve had 144
event-types of businesses apply for the small and medium-sized business
recovery grant program to date. If there’s any business that hasn’t
applied, I strongly recommend that they apply, as have
others.
Then there are funds through Creative B.C. for live music. That is
out there. Of course, they’ll have more details. I know that arts and
culture had a resilience plan fund of $35.8 million that may also be
helpful to them. Of course, Tourism, Arts and Culture has a lot of the
funds that are targeting the live music industry in particular. Perhaps
a question to the minister there, during estimates…. You might be able
to get more details on some of those programs that they’ve
launched.
T. Stone: Yes, I think it’s an important contribution to this discussion
that a number of these companies are in various stages with the small
and medium-sized business recovery grant program. A couple have been
successful that I’m aware of. For example, Proshow, I believe, was
successful with a $45,000 grant.
[4:05 p.m.]
The point that I think needs to be made, however, is this is a
company that has lost $10 million. A $45,000 grant from the province of
British Columbia for a company that has lost $10 million is appreciated.
It’s better than nothing. But it’s certainly not going to help that
company bridge the gap.
I have listed off some of the levels of financial loss that these
businesses have realized. The point is they need way more support to
remain viable and to be standing after the pandemic is over than what
they have been eligible to receive up to this point. They weren’t
eligible for the launch online grant. They weren’t eligible for the
circuit breaker grant, which, frankly, added insult to injury for an
industry, a sector, that has been closed for the entire 14-month
period.
Let me just, for the minister’s benefit, add a little bit more
context here. Again, this business is very representative of many others
in this sector. That’s the Briere Production Group. They wrote to me,
and they said: “Here is a list of all of the programs that we have
either been denied for or we never heard back from or we weren’t
eligible for in the first place.”
They did get some wage and rent subsidies from the federal
programs. That covered about 20 percent of their monthly fixed costs.
Okay, great. You’ve got 80 percent of the monthly fixed costs still to
worry about.
They were denied business interruption insurance. They were denied
funding through the 2020 federal arts and culture COVID-19 relief fund.
That was a $500 million fund, only $20 million of which, by the way, was
set aside for the live events sector. The program received ten times the
applications for the budget available.
Number four, they were denied direct funding support through
Canadian Heritage. Then they found out on April 6, 2021, that the recent
$181 million top-up of Canadian Heritage would not provide any funds.
There would be no funds, as part of that, made available to the live
events sector.
They were denied funding provincially for the launch online grant,
denied funding for the B.C. circuit breaker relief grant.
This is a sector that is not receiving near the supports that they
need to remain viable. They have suggested that one solution could be
the creation of — call it whatever you want, but for the lack of a
better phrase — a culture restart program that could be, actually,
delivered by Creative B.C. Creative B.C. has the Amplify fund, at the
moment — got a vehicle that’s already in place there. It wouldn’t
require creating anything new.
What it requires is for the government to actually put some funds
into this program so that the companies that support events, like the
ones I have listed here today, are actually able to receive some
meaningful support, again, that’s commensurate with the fact that
they’ve been shut down for the entire pandemic.
Will the minister advise this House if he and his government are
working on such a program? Again, it’s a program that would provide
direct supports for the live events sector that is commensurate with the
fact that this sector has been shut down for 14 months.
[4:10 p.m.]
Hon. R. Kahlon: I think that the member highlighted well how challenging this is
for folks in that sector. I mean, we have talked at great length how
hard this pandemic has been on people and businesses and community
groups and many members of this House. Everyone has been feeling the
challenge.
Of course, the impacts are felt disproportionately — different for
every sector and every person, depending on their circumstance. I
appreciate how challenging it would be not to be able to…. Of course,
there are concerns around the business, but also the people. They love
this. This is their passion. This is their work, and not to be able to
do it in a pandemic is very difficult. I fully acknowledge
that.
[4:15 p.m.]
I’ve had many conversations with the Parliamentary Secretary for
Arts and Film. He comes from this sector, and he talks about the impacts
— he has a loved one in the sector — and what that impact is in real
terms. So I appreciate the member’s question and, of course, the concern
that he has raised.
For the launch online program, he mentioned that they weren’t
available to access that. We did change it for services to be able to
apply. I’m not sure, if they’re doing $10 million a year, if launch
online is something that they would need for their business. That’s more
targeted to smaller businesses that don’t have the means to go online.
But that program is available — I just wanted to correct that — for some
of the smaller live events organizations or businesses. They can
apply.
Of course, I will say that if any business hasn’t applied for the
small and medium-sized business recovery grant program, they should.
Like I’ve already mentioned, we’ve had 144 apply already, and certainly,
anyone that hasn’t, should.
Lastly, I will just say that Creative B.C., obviously, is an
organization that works closely with this sector. I’m sure they’re
having conversations with the Ministry of Tourism, Arts and Culture. If
the member has more detailed questions, I do suggest that he raise those
in estimates with the Minister of Tourism, Arts and Culture. She’s very
passionate about the sector as well.
T. Stone: Well, yes, I am aware that the minister’s colleague from Maple
Ridge–Mission has had discussions with this group, as has the Minister
of Citizens’ Services, who represents Maple Ridge–Pitt Meadows. I think
it’s part of the frustration that this group is feeling.
Chris Briere says in his letter that to the end of April, they had
had multiple meetings with the Department of Canadian Heritage, with
Creative B.C., Zoom meetings with the two members of the Legislature
that I just mentioned. Richard Davis and Randy from Canadian Heritage,
I’ve already mentioned. They’ve written 60 letters. They’ve had all
kinds of phone calls and whatnot. So this is not a lack of effort on the
part of the live event sector to make sure that they’re seen, that their
issues are understood and that government gets a sense of the pain that
they’re feeling.
As I mentioned earlier, if you’ve lost $10 million this year, if
you’ve lost $2 million this year, a $45,000 recovery grant isn’t going
to go too far, particularly if you’ve lost all of that money and you
haven’t been able to even have much certainty to plan for events for the
short to mid-term. We don’t really know when a lot of these companies
are going to be able to start putting on live events and concerts and
the like. We have a four-phased restart plan, yes, but there’s no
certainty as to where in that plan this sector is actually going to be
able to begin to re-engage and start putting on events again.
And, as it’s been pointed out to me by all of these companies,
they need a heck of a lot more than a few days or a few weeks of lead
time so that they can actually bring staff back and so that they can
actually pick their companies up off the mat, so to speak, and mobilize
and get ready. Events, especially major events, can’t be put on in a
matter of days or even weeks. There’s a lot of lead time
required.
[4:20 p.m.]
I guess I’m just trying to really impress upon the minister the
importance of this sector — the pain that they’re feeling. The recovery
grant is not enough. There are going to be far fewer live events in this
province in the months ahead if the government doesn’t step up with a
meaningful program of supports that provides direct aid to this
sector.
The one final piece that I wanted to ask the minister about,
because it reflects the other major concern of the live event sector, is
one of talent retention and attraction. It’s obviously a massive
challenge to be losing 200, 500, $1 million a month. That’s hitting
these businesses in the here and now. But when they do get the green
light to begin to hold events again, and they start trying to recall
their employees, they are all seriously concerned about whether or not
they’re actually going to be able to have a suite of employees to call
back.
Mike Miltimore said in a recent letter to me: “We desperately need
to hold on to our technicians, as it takes a long time to train these
guys. You can’t just go to school to be an AV tech. We need support to
keep these staff on.” Every single one of these companies has indicated
that this is their next most challenging issue that they need some help
with.
With that background, I’d like to know if the minister could
provide any details on any work that’s underway to develop a talent
retention and training program for the live event sector. Or perhaps it
would be more broadly implemented across other sectors where this is
really going to be a serious, serious business challenge for these
businesses, which have already been hit so hard from a financial
perspective as a result of being shut down for so long.
So is the minister putting together a talent retention and
training program to provide that critical support to the live events
sector?
[4:25 p.m.]
Hon. R. Kahlon: Again, thanks to the member for the question. There are a few
programs that we’ve designed that are available for the live events
industry. First, we have the innovator skills initiative that is being
run out of Innovate B.C., which is $15 million. That’s 3,000 spots. That
provides up-to-$5,000 grants for on-the-job training for employers to
bring new workers on the job to learn.
We’ve got an additional $2 million that’s Mitacs, which are,
again, grants available. We can provide this to the member, if he wants,
in writing.
[S. Chandra Herbert in the chair.]
We also have $7 million that we’ve given to the digital
supercluster. That’s tech-related training and capacity-building. Of
course, AEST has money for micro-credentialing and training, so there
might be some opportunities there. But if the member likes, we can just
put that in writing for him.
[4:30 p.m.]
T. Stone: At this point, I’m going to turn the floor over to a number of
opposition MLAs. I’m pleased to start that off with the Member for
Saanich North and the Islands.
The Chair: Thank you, Member.
Recognizing the member for Saanich North and the
Islands.
A. Olsen: Thank you, Mr. Chair. Good to see you today.
Good to see the minister as well.
Thank you to my colleague from Kamloops for giving me this
opportunity to ask a few questions. Just wanting to ask a few questions
around the Emerging Economy Task Force and, as well, the innovation
commissioner.
Let’s start with the Emerging Economy Task Force. I’m just
wondering if we could start with a pretty general question. If the
minister could provide a response to where the government is at in
implementing the report and if any action has been taken.
[4:35 p.m.]
The Chair: Minister.
Hon. R. Kahlon: Thank you, hon. Chair. Welcome back to the chair.
Thank you to the member for the question. I guess a couple of
things. First, I really appreciated the report. I had a chance to read
it very early. In fact, I read it when it first came out, but I go
through it with a different lens now that a lot of the work falls within
our ministry. A lot of the work we’re doing is inspired by the work that
was done by that task force, a very accomplished group of individuals
who put a lot of work into it.
The spirit of the report is very much alive in many of the things
we’re doing, and it’s very much an active document. Obviously, it was
done pre-pandemic. Some things have changed, but a lot of things remain.
I’ve got a lot of details here. I can go through each one, if the member
wants. I’m just looking for him to nod. He does. Okay.
There were 25 recommendations and 40 suggested actions that were
made. There were five strategic priorities that were identified. So 26
of the suggested actions are things that are in my ministry alone that
we’re working on. So I’ll go through each of them.
One of the recommendations was to strengthen the ecosystem for
innovation, commercialization, scale-up companies. In our ministry, in
JEDC, we have the venture acceleration program, which is being run
through Innovate B.C. and which provides about $2.7 million annually,
and the small business venture capital tax credit program. We have
ongoing sector and cluster development work that’s being done by our
ministry that aligns with some of the work that the B.C. digital
technology supercluster initiative is working on.
We have been working to ensure the alignment and coordination of
all the ITD branches, especially for some of these acronyms: the TIR
team, the ISBs, who profile and aggressively market high potential areas
to prospective investors. Working on digital infrastructure and super
computers at SFU and UVic. Working on digital infrastructure.
[4:40 p.m.]
As I’ve mentioned, we’re going through a review of intellectual
property and policies. We’ll be hosting and anchoring forums with IP
experts in the tech sector, academia, Innovate B.C. and government
ministries to discuss approaches to keep made-in-B.C. intellectual
property here in British Columbia.
Of course, the export navigator program plays an important role,
which was highlighted in that recommendation. I won’t go into too much
more detail, but I can happily provide the member, on recommendation 1,
more details, if he likes.
Recommendation 2 was: “Foster technology adoption to generate
economic, environmental and social benefits.” Of course, Innovate B.C.
is mandated to support the growth of innovative technology in B.C.
sectors through programming, funding, government support, policy
development and other related initiatives. There was the innovation
commissioner report which echoed many of the pieces, as well. We
provided, through CivicInfo B.C., seed funding — invested $17 million in
a new Quantum Algorithms Institute. Food Security Task Force report
recommendation 2 is something that comes from emerging task force — the
work that they had done.
The other recommendation was: “Enhance the financing options
available in the emerging economy.” Of course, InBC obviously is a
critical part of that. We are doing B.C. chamber engagement sessions to
support the work of our ministry across government in annual engagements
with the B.C. Chamber of Commerce and its members. We’re working closely
with strategic partners to alleviate awareness of the capital needs and
potential matching that can be done through institutional investors and
other sources of capital.
Number 4. We had to become a leader in smart regulation. So JEDC
has developed a policy framework and tools, like the Policy
Approaches Playbook , to support ministries and identify
opportunities for regulatory innovation. Small Business Task Force
report recommendations 2 and 3 also maintain the province’s commitment
to avoiding excessive regulations for small businesses. And of course,
Food Security Task Force also had recommendations on that.
Recommendation 6 was: “Capitalize on B.C.’s vertically integrated,
clean power advantage.” Of course, you’ll see a lot of that in CleanBC
and in phase 2 of B.C. Hydro’s review.
Number 7 was: “Take advantage of growing global demand for green
economy products and services.” You’ll see some of that work in the
low-carbon industrial strategy, the ICE fund supports for clean tech and
some advanced manufacturing. We have the industrial cluster strategy —
Surrey innovation corridor, mech tech alley; Foresight Cleantech cluster
initiatives; work we’re doing with FPInnovations. Innovate B.C. has a
program, of course, that I’ve highlighted already, the venture
acceleration program. The Ignite program. Clean tech scale-up
pilot.
Of course, we have the provincial nominee program tech pilot,
which now we’ve made permanent. We announced that just within the last
two weeks. Green building training. International trade and marketing
strategy. I can go on at great lengths, but I’ll make sure that the
member gets this, maybe, in writing. I see him smiling on the
screen.
I’ve got four or five pages, so I think it might be more, either….
I can get the member a more detailed briefing on this, instead of going
through all the four pages. But I’ll just say, in respect to his
question, that it was an important report. Both that and the previous
innovation commissioner’s report I found quite useful. A lot of those
principles are guiding the work that we’re doing now and certainly will
guide the work as we go forward.
A. Olsen: I appreciate the exhaustive answer. We almost used the full 15
minutes that was available to the minister. It’s good to hear that that
work is being implemented across government. Clearly, it is across
ministries that this innovation is going to take place.
[4:45 p.m.]
I’m wondering about the role of the current innovation
commissioner and, sort of, the accountability aspects of it. Perhaps the
minister could highlight — and we can ask this question in estimates —
whether or not there are going to be any reports that are done to
consolidate the work as progress is done against that report. Or are
these just going to be recommendations that are going to be implemented
over time and that we don’t really have a consolidation of the work and
tracking to completion?
[4:50 p.m.]
Hon. R. Kahlon: I thank the member for letting me share that information, too, in
writing, because I was only on No. 6 of 40. We don’t have enough time
today for me to get through all of that.
But to the member’s point. Off the top, I want to thank Alan
Winter for the excellent work he did in that report that he put in. If
you look through the recommendations that he had made — support
innovation clusters, capitalize on the strength of CleanBC, help
entrepreneurs protect IP, retain talent and help businesses scale up —
those are core elements that are reflected in my mandate letter. His
work carries on as something that’s integral to the work we’re doing as
we go forward and focus on economic recovery.
I also want to say that the new innovation commissioner has been
fantastic. I really value the experience and insight that she brings to
the role. She meets with our team weekly to discuss what’s happening,
what she’s hearing. She’s going to be an integral part of the work as we
go forward. I really appreciate the amount of experience that she brings
to the table.
So the member’s question was around the reports and how we’re
going to integrate them into the work we’re doing. They align very well
with not only the work that my ministry is doing but many of my
colleagues’. A lot of those elements are being built into the work that
we do going forward. The economic recovery framework that we hope to
launch later in the fall will have key elements of that.
A. Olsen: Thank you, Minister. I appreciate the response. I appreciate the
engagement that you’ve highlighted between your ministry, yourself, as
the minister of your ministry, and Gerri Sinclair. It’s going to be a
good relationship going forward.
I’m just wondering with respect to the reports: is there going to
be — and like I said, other than coming to budget estimates, to the
variety of ministries that are all going to have a responsibility in
innovating — any consolidation of the specific actions that come
out?
Maybe I’ll just add to that. Can we expect to have any further
reports that are going to be coming forward from the new innovation
commissioner that we can then also use as kind of like benchmarks for us
to be able to ask questions of you, the minister, and the ministry, as
we progress through time?
The Chair: Through the Chair, of course.
A. Olsen: Through the Chair, of course. I’m sorry.
The Chair: Quite all right, thank you. Keeps me busy.
[4:55 p.m.]
Hon. R. Kahlon: There are a couple of things. I think that the report done by the
Emerging Task Force and the innovation commissioner are very much alive.
I think the member would agree that we might not need a new report given
that many of the elements that have been recommended are very valid
still in the work we’re doing.
The current innovation commissioner may not put a report together
in the same way but is working actively with us, as I said, meeting
weekly with our team as we go forward. Again, I’m happy to even meet
with the member, or even happy, if he would like, for the team to
provide a bit of a briefing for the member.
But my expectation isn’t that she’ll necessarily write a new
report, because we have two reports that are excellent that I think have
elements that are critically important for us still, given even as we
come out of the pandemic.
So those elements will be there, of course. The new innovation
commissioner has some new ideas and brings lots of energy to the work.
We’ll be incorporating both that previous work and some of the ideas
that she has now on our economic recovery framework that we’re working
on, or the plan we’re working on for the fall.
A. Olsen: Thank you to the minister. Absolutely, I recognize that the
landscape has changed since we have those reports and certainly
appreciate perhaps even a different relationship from the previous
ministry as it was constructed. Now things have changed for sure.
Appreciate that.
I think we’d look forward, at some point in the coming weeks or
months, to have a more fulsome briefing. I think that that would be of
value to our caucuses. This was an important — as the minister knows —
aspect of the confidence and supply agreement, so it’s good to just keep
track of those legacy bits of work.
Just a final question around…. It’s a very similar question that I
asked around the innovation commissioner, and perhaps the minister did….
The Emerging Economy Task Force was another body of work that was done
throughout the last parliament. Just wondering if the minister could
also provide just a high-level report to the people through budget
estimates here on the Emerging Economy Task Force, the implementation of
the report that they provided and maybe how that dovetails with the work
that is being done with the innovation commissioner.
Of course, it’s not the same body of work. It’s complementary, so
just perhaps a few comments. Then I’ll be done for the day. I thank the
minister for his responses.
[5:00 p.m.]
Hon. R. Kahlon: The focus right now is to implement the findings in the report
that will add to people’s standard of living and help the economy
rebound from the impacts of the pandemic. We’re prioritizing the
recommendations that will have immediate impact and align with the work
of the Premier’s Economic Recovery Task Force and the innovation
commissioner’s report.
Longer term we want to ensure that B.C. keeps its strong economic
position, reducing the impacts global trends could have, taking
advantage of opportunity in all sectors. The member will know that we
have historic funding for connectivity, which was in the budget. That
was an element of the work of the emerging task force.
Again, I’m happy, in the coming weeks and months, as the member
would like, to set up a more thorough discussion about it. I do have
eight pages of things that we’re doing that are related directly to the
emerging task force, but I don’t want to put that member through that,
unless he’s yelling: “More.” I can’t tell from the screen. I’m happy to
provide more information offline if the member likes.
T. Stone: Before I turn it over to a series of colleagues from the official
opposition, following on the interesting discussion between the member
for Saanich North and the Islands and the minister, I just was
wondering. The commitment that the minister made to the member for
Saanich North and the Islands with respect to providing a written update
on the status of implementation of recommendations, both the innovation
commissioner’s report recommendations as well as the emerging task force
recommendations….
I’m just wondering if the minister would be willing to provide a
similar copy of that information to me so that I have the same
information at my fingertips as well.
Hon. R. Kahlon: Yes, of course. We will do that.
T. Stone: Thank you to the minister.
Next up is the illustrious member for Peace River
North.
The Chair: He was so keen. He jumped up right away.
Member for Peace River North.
D. Davies: Thank you, hon. Chair. Yes, very excited about
estimates.
Again, thank you to my colleague from Kamloops North….
Interjection.
D. Davies: Kamloops–South Thompson. I apologize. I’ll give him one free Peace
River South just in case.
A couple questions here. Again, I do appreciate my colleague for
allowing me the opportunity to ask these questions on behalf of a few
constituents and businesses up in the north. I wrote the minister about
a month ago regarding a couple of businesses — Boston Pizza in Fort St.
John and Fort Nelson. Of course, Trevor McNiven was the one individual.
He’s co-owner of Boston Pizza.
I bring this issue forward. The minister did pen a reply, stating
that the individual businesses did not qualify for the grants because
they were co-ownership — I think it was 50 percent or more being in
Alberta. This is a very common thing along our border communities —
Dawson Creek, Fort St. John, straight down in through the Kootenays —
where there’s a lot of commerce, there’s a lot of movement and travel
between the two provinces.
This individual, Trevor…. I know that he lives in Fort St. John.
He runs the Boston Pizza in Fort St. John — as well as the gentleman up
in Fort Nelson, very similarly. He had to lay off almost 60 people
during the circuit breaker. That’s 60 British Columbians that he had to
lay off — people that pay taxes into British Columbia — and Trevor, who
pays taxes into British Columbia.
My colleague from Kamloops–South Thompson brought up earlier that
about 50 percent of the money has gone out the door, and a lot of that
is around the barriers around getting this money out. This is, I
believe, one such barrier. I’m hoping the minister could possibly
elaborate a little more if there has been some reconsideration to look
at some of these businesses, again, that do business in British
Columbia.
[5:05 p.m.]
Just because they have one part-owner that might live in another
jurisdiction outside of British Columbia, they do not qualify for this
funding. I’m hoping the minister can go a little bit beyond his reply
and hopefully offer some hope to these many business owners in British
Columbia.
Hon. R. Kahlon: I appreciate the question from the member for Peace River North.
Just kidding, just kidding. Peace River South. I appreciate his
question.
Interjection.
Hon. R. Kahlon: Is it north? Oh man, I stepped into it now.
Interjection.
Hon. R. Kahlon: I’ve been heckled. I’m the MLA for Delta South now. I deserve that
one.
I just wanted to share with the member that 28 businesses in his
riding have received the small and medium-sized business recovery grant.
It’s $655,000 that has directly gone into the pockets of businesses in
his community. I thought that he would appreciate that number. It’s
keeping people employed.
[5:10 p.m.]
Of course, the member is aware that businesses that don’t have
majority-owned shares in a business are ineligible to apply for the
small and medium-sized recovery grant program. The rules don’t specify
that it has to be 100 percent. It just says that it has to be a
majority. Of course, I know that he reached out to us. I believe we’ve
written back, and staff have communicated with him on that
matter.
D. Davies: The $655,000 to the 28 businesses — obviously, it’s appreciated by
those businesses, without a doubt. But my question isn’t about those
businesses. It’s about the businesses that don’t fit in that…. I’ll use
the term. There’s been a line drawn in the sand that makes many
businesses that employ — well, if we use the provincewide — thousands of
British Columbians who pay taxes in this province. These are the people
that are impacted. To penalize these businesses because they may have a
partnership that is outside the jurisdiction only penalizes the province
of British Columbia. It penalizes the economy.
This is where I’m just amazed. My colleague brought this out
earlier, and I mentioned it at the start of my first question. The small
business grants — 49.8 percent of the $430 million is out the door in
eight months. There is light at the end of the tunnel. The pandemic is
winding down. These businesses still need the support. They still need
that help if they’re going to be around when we’re done this pandemic.
The circuit breaker grant — 40 percent out the door. So when we have
this criteria, it doesn’t make sense.
I’ll give you another example. I had the owner of the local KFC
reach out to me. He just moved to the city of Grande Prairie before
COVID, and he is ineligible. His entire business is here in British
Columbia, pays taxes in British Columbia. His employees pay income tax
in British Columbia. But because he happened to make the untimely
decision to move to a community in Alberta just before COVID, he’s now
ineligible.
Again, is there hope on the way for these many businesses, not
only the ones in my riding but across the province of British Columbia,
that have these circumstances? We have the money. We see that. There’s
$215 million left. Let’s get it where it needs to go, supporting these
businesses, and fix what I consider a simple problem that needs to be
fixed.
[5:15 p.m.]
Hon. R. Kahlon: At this time, the rationale requiring at least 50 percent…. That
the businesses be owned by a B.C. resident is to ensure that taxpayer
investments are supporting locally owned and operated B.C.
businesses.
That being said, the member will know, and most businesses will
know, that there are tax credits available for hiring and rehiring
employees. There are PST rebates available for any equipment that they
may want to purchase. Of course, they will know that we’ve capped the
food delivery fees for them, which were becoming a bit of a challenge.
And of course, the 25 percent reduction in liquor price that’s now
permanent is a call that they’ve been making for a long time. It’s not
temporary; it’s made permanent. So a whole host of supports, not to
mention the federal government supports.
Just one quick note for the member from Kamloops, because we had a
good exchange around live events. I just wanted to give him an update
that 50 live event companies have actually registered for the digital
marketing bootcamp as well, so we’re seeing the live event sector apply
and take
part in that program as well.
D. Davies: I appreciate the PST rebate on equipment — food delivery fees. It
does no good if they’re not in business. Right now they can’t afford to
be purchasing equipment. They’re barely able to pay for the absolute
bare necessities. These companies…. Again, I’m talking of these
businesses, very specific, that fall into this arbitrary line in the
sand that has been drawn that excludes these businesses from applying
for these grants.
These businesses, make no mistake, pay into the British Columbia
economy. It’s not like this grant money is going to be paid to the
business and be shipped off. It is going to be keeping these small
businesses in business so that they can employ people — again, almost 60
people with the one restaurant. Unfortunately, this company didn’t have
a patio and really struggled during the circuit breaker.
So while those lines that the minister has stated about some
things that have been done…. They are beneficial in some ways. But the
point that I’m trying to make is these companies need the support of the
grant to get them through, to make sure that we have these businesses in
our communities in the coming months so that they can continue to employ
people and keep our local economies moving.
Again, can the minister provide…? The minister can do this. He’s
got $215 million yet to go out the door. We are at the “light at the end
of the tunnel” part of the pandemic. Can we hear today that there is
some hope, when I direct people to this Hansard broadcast? Can we have
some hope for these businesses that fall into this weird middle that
makes them exempt? Can the minister give us…? Again, my question: can
the minister give some hope for these businesses?
[5:20 p.m.]
Hon. R. Kahlon: Again, thank you to the member for the question. I think there’s
hope for all British Columbians right now. I think there’s hope for all
businesses, as they see the restart plan. They’ve seen the metrics that
we’re using in decision-making, giving them some certainty on how they
can open up progressively over time. We’ve seen the businesses be able
to return to having six people at a table indoors.
The member mentioned the KFC. I’m not sure if it has a
drive-through, but we’re told by industry leaders that the
drive-throughs are making record dollars, given that many people aren’t
able to go inside, but they’re still wanting to get food. I’m not sure
about the KFC, particularly, in his community, but we’ve been told by
the associations that, overall, they’re seeing record
profits.
Of course, I’ve highlighted some of the programs that are
available to the business that the member spoke of: the 25 percent
liquor pricing, which will help their bottom line considerably with
every sale they make; the tax credits — the PST rebate on equipment;
capping of food deliveries. I’m sure that they’re still seeing lots of
orders coming through online, considering that people are ordering more
and more at home during this pandemic.
The wage subsidy program that the federal government rolled out,
which has now been extended till the end of September, has made a
significant impact. Rental supports are available for businesses.
Commercial tax relief. There’s a whole host of measures — the highest
supports for people and businesses per capita in Canada.
So I appreciate the member’s questions and his advocacy, but the
funds’ intentions were to support B.C.-owned businesses. But all the
other measures, the whole host of measures…. In fact, there are a lot of
federal ones, as well, that I can go through in detail, if the member
likes, that he can share with the business in his community that’s
impacted.
D. Davies: I’m disappointed in the minister’s reply. I know that there are
many businesses in this province that are also going to be quite
disappointed — that, again, fall into this arbitrary rule that penalizes
businesses that employ British Columbians, that won’t qualify for this
support. And while I do agree that, again, things are looking better,
there are many businesses that still today don’t feel they’re going to
be able to hold on.
My next question, moving on. I think one thing that has become
very clear over this past 18 months is supply chain issues. We’ve seen
that across the country, and we’re still feeling the effects of it
today. I don’t know if you’ve tried ordering anything in stores. It’s
backlogged indefinitely — many, many different items.
[5:25 p.m.]
Is the minister…? This is again with a northern perspective. Of
course, northern B.C. is different than Vancouver or Victoria. Are there
any incentives that are being looked at to support manufacturing —
support this angle of operations — in our northern and more rural
communities across the province of British Columbia?
[5:30 p.m.]
[N. Letnick in the chair.]
Hon. R. Kahlon: Thank you to the member for the thoughtful question. I know that,
in his region in particular, supply chain resiliency is a big challenge.
I know Mayor Ackerman has been raising this issue as well. I appreciate
him raising it. Just for those that don’t know, this sector is 172,000
good-paying jobs and 7 percent of the provincial gross domestic product.
It’s $17 billion in contribution to our GDP, so it’s
significant.
There are three programs. One is the $10 million accelerating
manufacturing scaleup grant program. We had a $6 million supply chain
resiliency grant program. We’re also funding strategic supply chain
analysis research that was requested as well.
The one fund that I’ll highlight for the member…. There are some
projects that we just recently funded. The
Nisg̱a’a society and Prince
Rupert Chamber of Commerce, $167,000 for developing a food distribution
network in northwestern B.C. We’ve supported the Interior Lumber
Association to develop a computer model that will help identify value
extraction opportunities and improve allocation of available logs to
various manufacturing facilities. We have recently provided $200,000 to
Nature’s Formulae Health Products. That’s the Thompson-Okanagan. There’s
funding for organizations in the Kootenays, etc.
We do have a program right now called the accelerating
manufacturing scaleup grant program. The intake, I believe, just closed
for that. We have gone to PricewaterhouseCoopers to administer the
program. Of course, applicants are eligible for a one-time, 75 percent
funded provincial grant of a maximum up to $250,000 for an individual
business and half a million dollars for group collaboration projects.
Certainly, it’s important work that we’re going to have to continue
doing as we go forward.
J. Tegart: It’s a pleasure to be here. Thank you to my colleague for allowing
me some time to ask some questions in regard to businesses, in
particular through the Fraser Canyon.
As you can imagine, it is particularly challenging to run a
successful business in the Fraser Canyon at any time because of traffic
counts, because of traffic flow and because we are demographically very
challenged. I’m going to talk about three businesses that have run
successfully throughout the downturn of the Fraser Canyon.
What happened when the Premier announced new travel restrictions
with the goal of reducing the impacts of COVID is that people took him
at his word, particularly these three businesses — a campground and two
resorts, one in Hope and two in the Boston Bar area.
When the Premier announced on the Monday that they’d be combining
health regions, that Metro and Fraser Health would be combined, and
Interior and Northern Health would be combined, these businesses took a
look at their reservations for the next three weeks. Being good citizens
of British Columbia, they went through their reservations and cancelled
all of their reservations from the Interior Health region because they
were outside their health region.
[5:35 p.m.]
Imagine their surprise on the Friday when the minister announced
that Hope had been taken out of Fraser Health. It was now in Interior
Health — no rhyme, no reason. Every reservation they had was from the
Metro area. They lost all of their reservations for the next three
weeks. And an announcement that was going to affect them until May 25,
on May 25 was extended.
I want to talk particularly about the Blue Lake Resort. I’ve got
an e-mail from him saying:
“So nice for us to have a representative in Victoria who understands
our challenges. She really went to bat for us. Not sure if the NDP
stands for anything, but I do know they stand for everything. Trees:
save them. Trees: cut them. Watching the NDP govern is like laying in a
crib with a baby mobile twisting and turning over our heads: sometimes
something drifting by to look at but nothing we can get our hands
on.
“Thank you to Jackie for your help. We did get a $10,000 grant for
the eight weeks and counting that the travel shutdown cut us off. We
have taken over $45,000 in cancellations to date, and many have
cancelled for the weeks in June and July due to the uncertainty. The
grant doesn’t hurt, but it did not mean that we could hire back our
staff.”
Now, this is a business in and close to Boston Bar. For anyone who
has driven through the canyon, Boston Bar is a pretty small community,
and there aren’t a lot of employment opportunities. So this business was
severely affected, and they were very thankful for the $10,000 grant.
But my question to the minister is: was there any modelling done on the
impact of changing Hope and Boston Bar out of the Fraser Health region
and into the Interior Health region and the impact on
businesses?
[5:40 p.m.]
Hon. R. Kahlon: Thank you to the member for the question.
I think we can agree that safety is critical — paramount right now
during the pandemic. I think no one wants to put any measures in place
that will impact people and communities, but we’re in a pandemic, and
decisions are being made to keep people safe. I know the member
appreciates that.
I guess, thank you for sharing the email. The email said a lot of
nice things about her, so it’s great that she was able to get that on
the record. It’s great to see that the circuit breaker was available to
them if they qualified for the circuit breaker. I suspect that they
should apply for the small and medium-sized business grant as
well.
I’ll just say that the restart plan as it’s laid out has, at the
minimum, June 15 — which is coming up very soon — as the time for people
to be able to travel. Certainly, the feedback that I’ve got from people
is that they cannot wait to get out of town to travel to different parts
of the province.
All the trend lines continue to go in the right direction. We have
surpassed the metric of people we wanted to see vaccinated. Case counts
continue to go down. All the positive indications are there. I suspect
that businesses are already starting to book travellers for soon after
the projected date, as has been laid out in the restart plan.
J. Tegart: Certainly not the purpose of the reading out of the email, except
to express the frustration that many businesses are feeling in their
applications for different grants and different funding
opportunities.
The second business I want to talk about is REO resort. I know
that we’ve been working with the minister’s office on this one. They
applied in January and were finally contacted April 30 that their
application was denied. Then, the newly announced travel restrictions,
which showed them clearly in the Fraser Health region, cut off all of
their business, because they were now in the Interior Health
region.
When we tried to find out why the change was made, it was very,
very difficult to get a straight answer on why the health regions were
changed — why Hope and Boston Bar were taken out of Fraser Health.
Because it’s only for this period of time, and I can tell you, it’s had
a significant effect.
REO resort has been operating for 39 years. They put in their
application and were rejected because they didn’t show a profit in 2019.
They sent quite a long letter to the minister, I do believe, and to many
others, talking about what they think should be criteria to be
considered for the grants.
They talked about the long-term viability and history of the
business. Not just one year — take a look at how long the business has
been there. The importance of the business to the region for job
creation. The importance of the business as a travel generator to the
area from B.C. and beyond. Also, the significance of the business on a
global level as a tourism motivator for international destination travel
to B.C.
They have contacted my office. The minister’s office has been in
touch with them and is working with them to look at whether there is
some way that they can actually qualify for any kind of grant — the
circuit breaker, the small business grant and whatever that looks
like.
[5:45 p.m.]
They’ve also offered some ideas based on their experience as a
small business operator for the minister to take a look at, as we look
at half the money not even out yet. Maybe there are some criteria that
could be looked at so that more businesses qualify.
REO is, again, a very important employer in the Boston Bar area.
They have a chef. They have a very internationally known yoga
instructor. They do glamping. They are a five-star resort that many
people don’t know about in Boston Bar.
So what I’m asking the minister is: when you review the
applications that have been rejected, are there common threads? And are
you giving consideration, for the next reiteration of funding
opportunities, to other criteria?
Hon. R. Kahlon: Yeah, we canvassed this with the hon. member from Kamloops earlier
— that sometimes government has programs where it’s just, you know,
you’re approved or you’re rejected, and that’s the notice you get. With
this program, what we’ve been doing is that we’ve actually been working
back and forth with businesses.
[5:50 p.m.]
If a business doesn’t quite qualify, we’ve been trying to find
creative ways to work with them to ensure that they can qualify. So
there has been a lot of flexibility built into the way that that program
is being done.
Again, a big thank-you to the staff who have been working so hard
to not only support the businesses to get the funding but also to hear
about the challenges they’re facing. I really appreciate the member
bringing this business forward to us and writing to us. I understand
that they had a really good meeting with our staff and that their
application is proceeding into the system. I’m very hopeful that they’ll
see a positive result.
There is also a digital bootcamp that’s available for many of the
tourism-related businesses. We’ve seen a considerable uptake from
businesses that are in that tourism space to learn about how to be
online. Of course, money is available for launch online to set up that
online e-commerce and the website so they can attract business. Those
programs may be available for this business as well. Our office can
share that with your office if you need.
Then as far as the future — certainly, I think, the member would
agree — I hope we never have to create these kinds of programs in a
pandemic ever again. Certainly, there have been learnings. We’ve been
adjusting the programs as we go, and lots of learnings for the
future.
The Chair: Just a reminder to both the minister and the member: through
the Chair, please.
J. Tegart: Yes, Mr. Chair, through you to the minister. Well, the minister
talks about hope and that we have a lot of hope for the future. I can
tell you the businesses that I’m talking to in the Fraser Canyon just
hope that you put Hope back in Fraser Health. I trust that the minister
will commit to advocating for that, because there seems to be no rhyme
nor reason as to why Hope was taken out.
Hon. R. Kahlon: I know that there are estimates happening on Health, so the member
may want to raise that question. I thought I’d share with the member
that 49 businesses in her community have received the small and
medium-sized business recovery grant program, which is just over $1.1
million. I know that’s significant for businesses and for keeping people
employed in the community. Thanks for the questions — through you, of
course, hon. Chair.
The Chair: Sorry I brought it up.
T. Shypitka: Thanks to the minister for some time here today. It has been a bit
of a good theme that I’ve seen from my colleagues here over about the
last hour or so. That’s identifying, perhaps, some of the cracks in the
system, some of the businesses that have fallen into these cracks. The
member for Peace River North mentioned some cracks for business owners
that live in a different jurisdiction yet can’t apply for some of these
grants.
I wanted to talk to one that is probably the worst of the worst.
We know that tourism is arguably the hardest-hit sector in our economy
during this pandemic. We’ve heard the member for Kamloops–South Thompson
advocate for live events. However, the guide-outfitters, in my opinion,
perhaps are, within the subclass, essentially the hardest hit, as I’ve
said, of all the hardest hit. Instead of me describing to the minister
what these guide-outfitters are going through right now, maybe what I
would like to instead is ask the minister what he knows about
guide-outfitters and how they’re being impacted by this
pandemic.
[5:55 p.m. - 6:00 p.m.]
Hon. R. Kahlon: Thanks to the member for the question. Perhaps the member wasn’t
here when we talked about live events, but I was able to share with the
critic that many in the live events space have received small and
medium-sized business recovery grants. Many have applied for the launch
online program. So dollars were available, but the member perhaps wasn’t
here on that portion of that.
I think that when we talk about disproportionate impacts, the
member and I will agree that guide-outfitters have been
disproportionately impacted. They rely heavily on international
tourists, and it’s been a really challenging time.
I can share with the member that we have seen applications come,
for the small and medium-sized recovery grant program, from
guide-outfitters — I believe 31. Staff met with the guide-outfitters to
encourage them to get all their members to apply. It’s important to note
that they get the tourism top-up for part of their business. It’s up to
$45,000.
So I would encourage the member, if he has guide-outfitters, to
encourage them to apply. Again, our staff have been available to meet
with the guide-outfitters. If the member likes more information about
how they can apply, we certainly can share that with him.
T. Shypitka: Absolutely. I was here when the member for Kamloops–South Thompson
was talking about live events and funding through Creative B.C.
Obviously, those funds aren’t available to guide-outfitters.
The launch online program is something, I guess, that these
guide-outfitters could take advantage of. But the truth of the matter is
that they’ve got their deposits. They’ve got their reservations already.
They don’t need the launch online program to do that for them. The
problem is that they’ve taken deposits. Well over 90 percent of the
clientele that guide-outfitters attract are from outside of Canada,
predominantly from the United States. So apart from the small and medium
business recovery grant, that is all that these guide-outfitters have
had to really had to look forward to.
When you talk about the ongoing operating costs that these folks
go through…. They still have their licensing fees, their tenure fees.
Taxes on their tenure, such as school tax. They pay land tax. They also
pay taxes on buildings — cabins and outbuildings and such like that.
That’s not to mention the enormous amount of money they pay to secure
their territory. When they first buy their territories, those are in the
millions of dollars. So they’ve got loans outstanding.
Like I said, one of the guides in my area is paying $25,000 a
month in operating costs just to keep them going. He’s trying to keep
his employees, because with the inevitable reopen…. We just don’t know
when it is, so there’s really no certainty there. These folks are
basically, like I said, on their second season here. The small and
medium business grant, I believe, is ending July 1, just when the
fishing guides are going to be going through their second
season.
I don’t have a lot of time, so I’ll just ask one more question.
These guides really need a lot of help. They need the minister to maybe
see through some of these cracks that have been opened through these
programs. Not condemning the minister on that. I mean, inevitably,
there’s always somebody that’ll fall through the cracks. The
guide-outfitters are that one sector, that one subclass, that has really
found their way to the bottom of the hole here, and they really need to
have a proactive view on how we can save these businesses. I’m just
being straight up. They are on their last straw here.
I guess the last question to the minister is: is the minister
interested at all in extending the B.C. small and medium business grant
to those guide-outfitters? It’s a little bit. Some of these businesses
are well over $2 million in revenue, but they’ve got enormous costs to
go along with them.
These small-business recovery grants only amount to maybe, at the
maximum, $45,000, which is good, but in my last example, that would only
keep a business afloat for a couple of months. It’s appreciated, but
with what’s left in the kitty in the small and medium business recovery
grant, there is certainly enough to identify this subclass of the sector
that is really getting hit hard the most.
So question to the minister: would he be interested in extending
the business recovery grant to those guide-outfitters and fishing guides
that are in desperate need?
[6:05 p.m. - 6:10 p.m.]
Hon. R. Kahlon: Again, I just want to stress to the member that the small and
medium-sized business recovery grant program is available to
guide-outfitters. As I highlighted, 31 of the, I believe, 245
guide-outfitters have applied. I would strongly encourage the member to
encourage any of the guide-outfitters that he’s been speaking to, to
apply before July 2.
The member also mentioned other fees and overhead costs that are
being incurred. The member may be aware that we forgave the land and
park act rent for last year. I certainly hear his advocacy, and I will
take his advocacy to my colleague the Minister of Forests, Lands and
Natural Resource Operations.
I thought I’d also share with the member that $2.15 million in
small and medium-sized grant programs have gone directly to businesses
in his community. That’s a substantial number compared to some of the
other communities. Businesses are actively applying in his community,
and I want to thank him for helping spread the word to businesses to
apply in his community. Clearly, something he’s doing over there is
working. So thank you.
R. Merrifield: Well, I’ve been listening to as much as I possibly could of these
riveting estimates. I have heard a ton of agreement on how this pandemic
has not affected all businesses equally. It hasn’t affected all people
equally. That’s something that the minister as well as my colleague from
Kamloops would agree on.
This pandemic has chosen winners and losers — and somewhat
disproportionately. There are many in my riding of Kelowna-Mission that
have been significantly impacted negatively by this pandemic. While I
appreciate that there are some programs that have been created, there
seems to be less attention given to how that actually furthers the
dynamic of the winners and the losers.
Obviously, my riding has an incredible amount of wineries, and the
wine industry is part of the tourism industry that is vital to Kelowna.
Now, while many people increase their alcohol intake during the
pandemic, the wineries could adjust. Their businesses could take and
send directly to customers, but others associated with this industry
could not adjust in the same manner.
Wine tour companies are one of these industries. Even the largest
in my riding, like Cheers Okanagan or Beach Bum Tours, watched as their
buses and cars sat idle while their employees were laid off or left.
Devastated doesn’t begin to describe what’s happened to these
businesses, yet there were no programs that they actually fit
into.
I’ll quote Lou from Cheers Okanagan Tours.
“Greetings, Renee.
“I’m writing to ask if you can help us get the funding needed for
our business to stay in business. We’ve received, from many sources, the
tourism grant link that the hon. John Horgan talked about recently. I
was elated, as we are the largest tour company in the Okanagan, and
eagerly dove into looking at the qualifications. ‘Additionally, tour bus
companies are an important link to bring travellers to regional
destinations, attractions and experiences’ in B.C.
[6:15 p.m.]
“Yes, we were in business in 2019. Yes, we had seven vehicles busy
every possible day for 12 months. I added up the number of passengers we
had, and it totalled 15,300.
“The qualifier is 30,000 passengers to receive up to $500,000. My
heart sunk for us and for all the tour companies. Anyone smaller than
our fleet, which is now nine, will be counting on a busy summer and,
when that is over, will barely make it to 2022, having had to pay all
the debts incurred over these 1½ years of on-off lockdowns and 90
percent less revenue.
“It appears this is for tour bus companies but not all tour bus
companies, especially those that are ambassadors for the wine experience
and attractions in the Okanagan.”
She goes on.
Devastated doesn’t begin to describe what is happening to these
businesses, yet there are no programs that these businesses actually fit
into. How will the minister adjust the programs to meet the needs of all
businesses that were hit hard in this pandemic, including the tour
operators in my riding?
Hon. R. Kahlon: Maybe a point of clarification for me