Fourth Session, 41st Parliament

(2019) OFFICIAL REPORT

OF DEBATES

(HANSARD)

Tuesday, February 19, 2019

Afternoon Sitting

Issue No. 201

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

Presentation of Estimates

Estimates of sums required for the service of the province

Budget Debate

Hon. C. James

T. Redies

Introduction and First Reading of Bills

Bill 5 — Budget Measures Implementation Act, 2019

Hon. C. James

Tabling Documents

Strategic plan, 2019-20–2021-22

Budget and fiscal plan, 2019-20–2021-22

Service plans, 2019-20–2021-22

Presentation of Estimates

Supplementary estimates for the fiscal year ending March 31, 2019

TUESDAY, FEBRUARY 19, 2019

The House met at 1:35 p.m.

[Mr. Speaker in the chair.]

Mr. Speaker: Good afternoon, everyone. I’d like to begin by welcoming everyone here

today on behalf of all members of the Legislative Assembly.

We will, first, now hear from the Songhees First Nation’s elder Butch Dick

and ask him to give us a blessing.

B. Dick: Hay’sxw’qa si’em siye’ya. Thank you for this honour.

Thank you, Carole, for the invitation.

It’s always a blessing to us to be welcomed, to be part of a ceremony such

as this. It’s actually a great honour for me to be here today and to be able to

offer words of encouragement. We never grow too old for the words of

encouragement.

These are important times for us, as it is for everybody. The things that

are on the agenda today are very important to all people in British Columbia, in

particular to me who works for the Songhees Nation as education liaison. I’ve

been in education for 37 years and still find it a challenge and a challenge

that I look forward to every day.

So I thank you for this honour.

A’si’em nu schala’cha. A’si’em nu’shwala’kwa. Hay’sxw’qa gwns âne

‘techul Lkwungen Tung’exʷ . Hay’sxw’qa

si’em nakwilia.

That’s the language of the Lekwungen people, which is in a revitalization

program right now, as are many languages in our communities. They’re very

important to us because they hold the teachings, and the teachings are attached

to the environment. All of that is very important.

I know a lot of that is in the budget, and I’ll hold you to it.

[Laughter].

So thank you very much for this honour. I do offer you words of

encouragement from the First Nation community and, in particular, on behalf of

Chief Ron Sam.

I want to acknowledge all the chiefs and the elders who are present today.

I thank you for journeying down to Metulia to take

part in today’s work. We

thank you very much.

I’ll offer a paddle welcome song to you.

Again, thank you — hay’sxw’qa — for this honour.

[Lək̓ʷəŋin̓əŋ was sung.]

Mr. Speaker: Thank you so much, Butch.

[1:40 p.m.]

Orders of the Day

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

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

Majesty.

Motion approved.

Presentation of Estimates

ESTIMATES OF SUMS REQUIRED

FOR THE SERVICE OF THE

PROVINCE

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

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

Province for the fiscal year ending March 31, 2020, and a supplement to the

estimates for the fiscal year ending March 31, 2020, recommending the same

to the Legislative Assembly.

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

accompanying the same be referred to the Committee of Supply.

Motion approved.

Budget Debate

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

[That the Speaker do now leave the Chair for the House to go into

Committee of Supply.]

I’d like to begin by acknowledging that we’re on the traditional

territory of the Songhees and Esquimalt First Nations and give a warm

welcome to everyone who’s here today — the Indigenous leaders, parents with

young children, students, workers, seniors, mayors and council, current and

former MLAs and MPs, members of the press and, of course, the people who

might be listening from home or work.

I want to also say thank you at the start to all those who wrote and

took

part in the Select Standing Committee on Finance’s budget

consultations. Thank you, as well, to the members of the Green Party caucus,

who helped shape our work through the confidence and supply

secretariat.

Thank you to the many people who wrote letters, stopped me on the

street and engaged me on line. Your ideas and your voices are helping make

life better for people in this province.

For each and every person who reaches their full potential, they get

there because the people around them care. They care about the places that

have shaped their lives and the opportunities they’ve had to succeed. That’s

certainly true for me as Finance Minister.

I grew up in a house with open doors. My old family house is just a

few blocks away from the Legislature, on Lewis Street in James Bay. It’s a

rambling, seven-bedroom house that, over the decades, was home to my family

and extended family, including dozens of foster children.

I knew I’d have trouble getting through this.

I grew up in that house, and I later raised my own family there. The

road out front sported constant games of street hockey. The nearby beach was

a stretch of sand that we were certain belonged to all of us, and the

backyard was always full of kids and of laughter. Dinner hour in our family

was animated with discussion, and then a wave out the door, as family headed

off to a volunteer meeting, to support a cause or to help out a

neighbour.

I lived with my grandparents and my mom. They never lectured us about

why we dedicated our time to people. It was just part of our everyday life.

That home on Lewis Street showed me the importance of taking care of one

another. I saw firsthand that often all it takes to change a person’s life

is an opportunity paired with a hand up. Those values of caring, of opening

doors, of recognizing that everyone has something to contribute, of living

within your means and of sharing what you have — those are the values of the

people of this province, and those are the values that they expect from

their government.

But I have to say that under the former government, those values were

often forgotten. Opportunity became further out of reach for most, while a

few at the top flourished. We became a province that despite thriving

economically, allowed the people who power our community to fall further

behind.

Over the last decade, many British Columbians started to accept that

this is just the way it is. Hard-working middle-class families could no

longer afford to own their own home, and the cost of child care could stop

them from starting a family or going back to work. Young people graduating

with huge amounts of debt were faced with the difficult decision of moving

to a different province they could afford to live in. Years of cuts meant

that people couldn’t access the health care or the education that they need

and deserve.

[1:45 p.m.]

The past government made the choice to make life easier for the few at

the top while everyone else struggled. People of this province were told

that they had to choose between a strong economy or investments in people.

But the truth is that we can and we must have both.

That’s a lesson I learned at my house on Lewis Street so many years

ago. Success really doesn’t mean much unless it’s paid forward to help

others. I’m proud to announce that Budget 2019 does just that.

Your government is building a strong economy and balancing the budget,

creating a foundation upon which people will thrive. We’ve shown that

putting people first is the responsible thing to do. It’s good for people,

good for our economy and good for our province.

One year ago we tabled our first full budget. It put people back at

the centre of government’s work. After 16 years of cutting services and

prioritizing the few at the top, Budget 2018 finally offered a hand up for

middle-class British Columbians, who’ve been left on the outside looking

in.

Nothing demonstrates this more clearly than the housing crisis. The

last government chose to look the other way as the housing market spiralled

out of control. The crisis left a generation of young people believing

they’d never be able to afford a home or raise a family here. Teachers,

carpenters, small business owners could no longer afford to live in the

communities where they worked. Seniors and students ended up living in

shelters or, in some cases, in cars. This is wrong in a province as rich and

as prosperous as British Columbia.

After years of neglect, Budget 2018 took decisive action to begin to

address the housing crisis. We introduced our 30-point plan, because every

person in our province deserves a place to call home. We’re leading the

country in our work to ensure that housing is actually used to house people

rather than being a resting place for foreign capital or, even worse, money

laundering.

That’s why we introduced important measures to curb speculation and

foreign demand in our housing market. That’s why we’re ending the hidden

ownership of property and closing loopholes in the presale condo market. And

that’s why we’ve made the largest investment in affordable housing in B.C.’s

history, more than $7 billion over ten years. That means building 114,000

new affordable homes for people across this province.

We’re also working to ensure that B.C. is a fair, affordable place for

renters. We cut the annual allowable rent increase by 2 percent, helping

600,000 renters in our province. We closed the fixed-term and geographic

loopholes, giving households more protection from unfair evictions and rent

increases.

Tackling the housing crisis isn’t just about making life more

affordable for people. It isn’t just about making it easier for businesses

to find the workers they need. It’s about restoring a sense of hope, a sense

of optimism for people in our province.

For young families, housing is one challenge that they’ve had, to make

a life in British Columbia. Another one is child care. Too many parents have

been unable to find quality child care for their children. Even if they were

lucky enough to find a spot, the costs could be overwhelming.

Parents are struggling to choose between their family and their

career, which is not a choice that any young family should have to make.

That’s why, in Budget 2018, we took an enormous step forward, making the

largest investment in child care in B.C.’s history, transforming child care

and changing families’ lives for the better.

At the centre of this plan, we launched the affordable child care

benefit, providing the majority of families in British Columbia with up to

$15,000 per child, per year, so that people could afford child care in

B.C.

We also delivered an immediate fee reduction for parents, bringing the

total benefit to nearly $20,000 per child, per year. To deliver the quality

care our kids deserve, we’re creating 22,000 new licensed child care spaces

across this province, and we’re growing the number of early childhood

educators, with access to training and fair wages.

Together these initiatives mean tens of thousands of B.C. families can

finally access quality affordable child care, and they’ve set our province

on a path towards a made-in-B.C. universal child care system.

[1:50 p.m.]

Budget 2018 was the first full budget in over a decade that put people

first and started making their lives better. As a government, we’re

delivering on our commitment to the people of B.C., because together we need

to restore a sense of hope and opportunity.

Today with Budget 2019, we find ourselves standing at a crossroads

where we get to choose our path forward and think about what B.C. will look

like in the next ten, 20, 50 and even 100 years. And that is the starting

point. It acknowledges, in Budget 2019, that a truly prosperous economy

needs to work for everyone. It needs to make life better for people today

and ensure that our children have the opportunities they need to meet the

challenges of tomorrow.

It looks ahead into the 21st century to unlock the potential of a

green economy. It asks ourselves: what kind of environment, province do we

want to live in, and what kind of world do we want to leave our children and

grandchildren? It works to lift people up who for far too long have been

left behind.

B.C. is in a strong position. We can be optimistic and deliberate

about how we chart our course from here. Budget 2019 continues on the

transformational path that was set out in the past year and a half. It’s

about creating opportunities for you, your neighbours, your children, your

friends. It’s about opening doors to a good education, quality health care,

secure housing and a good job. It’s about making life better for British

Columbians in every corner of our province.

Everyone in B.C., regardless of their background, wants life to be

more affordable. Our new government has been hard at work putting money back

in people’s pockets and lowering costs. Budget 2019 continues to do just

that. One of the first things we did as a government was to get rid of tolls

on the Golden Ears and Port Mann crossings, saving tens of thousands of

commuters $1,500 a year. We gave more than 22 million passengers travelling

on B.C. Ferries a break by freezing and rolling back ferry fares.

We put an end to the past government’s scheme of hiking MSP premiums

year after year on middle-class families. We made a different choice. We

immediately slashed MSP premiums in half, undoing a decade’s worth of

middle-class tax increases from the former government. In Budget 2019, our

government is moving ahead with the full elimination of MSP premiums. This

will save individuals $900 a year in taxes and families $1,800 a year. At

$2.7 billion, this is one of the largest tax cuts for people in B.C.’s

history. It was long overdue.

Eliminating MSP premiums is just the beginning when it comes to making

life more affordable. Our government believes that every parent should be

able to give their kids a good start in life. We believe that no child

should be forced to go to school without a lunch or school supplies. No

child should be denied an opportunity to play sports or be in band because

their family can’t afford the equipment.

To make sure that every child has the opportunity to thrive and to

provide more help to parents raising a family, I’m proud to announce that

Budget 2019 introduces the new B.C. child opportunity benefit. The child

opportunity benefit is a historic investment in the people of our province

that puts more dollars directly back in parents’ pockets.

This benefit gives supports to families for every child they have up

to the age of 18. For the first child, the benefit will be as high as $1,600

a year. For a family with two children, the benefit rises to $2,600. That

number continues to increase for larger families. For anyone who has raised

a child, they know how transformational this support can be, from the

ability to put healthy meals on the table to buying your child a good winter

coat.

That kind of support is going to make an incredible difference. In

total, the B.C. child opportunity benefit will put nearly $400 million a

year back in the pockets of hard-working families.

[1:55 p.m.]

In Budget 2019, we’re committed to making life better for all British

Columbians, including the most vulnerable. Too many people in our province

are just a paycheque away from poverty. When family budgets are squeezed,

even a small setback can lead to a crisis. Too many people in this province

feel stuck, worried life will never get better for them or their

children.

That’s why I’m proud to announce that our government is investing over

$1 billion in Budget 2019 to lay the groundwork to make sure that every

person can reach their full potential. As I mentioned, the centre of this

work is the B.C. child opportunity benefit, but that’s just one part of our

work.

Our government — one of the first things we did when we were elected

was to increase income and disability assistance rates by $100 a month.

Today, in Budget 2019, we are adding more support by raising those rates by

an additional $50 a month, bringing the total increase to $150 a month or

$1,800 a year. This means more money for groceries and life’s basic

necessities.

But we know more needs to be done. We need to make income and

disability assistance more accessible, so we’re also investing $26 million

to make these benefits more fair and respect people’s dignity. This will

mean examples like allowing people on income assistance to keep their car,

helping them get a piece of ID that they might need to secure a job or find

a place to live.

We all know that without secure housing, it’s impossible to build a

better life. To provide security for renters at risk of losing their homes,

I’m proud to announce that we’re establishing the first-ever provincial

program to fund rent banks in B.C. This means that renters on the brink of

eviction will be able to get immediate short-term loans, because no one

benefits when families are thrown out on the street. The province is taking

action to make sure people have a roof over their head, and we’re making

sure people can connect to the essential services they need that were

previously out of reach.

The inability to access affordable legal services can often mean

unfair treatment in the workplace or the inability to escape domestic abuse.

That isn’t right, and it’s why we’re piloting a new network of legal clinics

to ensure that B.C.’s most vulnerable citizens will have equal access to

justice in this province.

No one who works hard for a living should be forced to live in

poverty. Our government is giving the lowest-paid workers in British

Columbia a raise by setting us on a path to reach a minimum wage of more

than $15 an hour.

After years of neglect, Budget 2019 addresses serious inequities when

it comes to caring for our most vulnerable in B.C. Community Living B.C.

home-share providers will see the first increase to their compensation since

2009. Family-based caregivers like foster parents will also receive higher

support payments starting April 1, their first increase in a

decade.

I’m so proud to announce that extended families, like grandparents and

aunties and uncles, who support children and keep them out of care will

finally have payments that will be equal to foster payments in this

province. We’re investing in care and in caregivers to help those who need

it live a better life.

Breaking the cycle of poverty is about making sure people have the

fundamentals: a roof over your head, food on the table, an opportunity to

make life better for ourselves and our family. It’s also about opening doors

for people so they can get the skills and get ahead.

In my 17 months as Finance Minister, one of the most meaningful

moments for me was to confirm funding for our provincial tuition waiver

education and for B.C. students who are former youth in care — goes to the

heart of our values as government. We’re seeing thousands take advantage of

this opportunity.

[2:00 p.m.]

Our work to make learning more accessible to all doesn’t end there.

Creating opportunities to learn is not just good for young people; it’s good

for our province and good for our economy. From engineers to teachers,

nurses to electricians, our students are the future workers who will ensure

that our economy continues to grow. That’s why I’m proud to announce that

our government is delivering on our commitment to eliminate interest from

all B.C. student loans.

Students and young families with loans will save an average of $2,300

after graduation, so they can start their careers off on the right foot.

Instead of worrying about growing debt, young people will be able to focus

on learning, and graduates can put their energy into the next steps in

life.

I believe this important work to create opportunities reflects the

core values of British Columbians. We’re a diverse and generous people, and

our government’s work must reflect those values that we teach our kids to

live by. Budget 2019 is about lifting people up, giving everyone a chance to

build a better life, because British Columbians take care of one another. We

offer a hand up to someone when they’re in need. It’s the right thing to do.

It’s good for people, it’s good for communities, and it’s good for the

economy.

We’re grateful to live in a province with a thriving economy, and we

all know that our province’s success comes from the hard work of people who

call B.C. home. British Columbians have been clear. They don’t want a

government that works for the few at the top. They want a government that

hires teachers, that builds hospitals and lowers wait times, that ensures

seniors are taken care of as they age.

As we know, there is nothing more important to British Columbians than

their health and the health of their loved ones. That’s why we’re moving

forward with investments in our health care system, to deliver better,

faster medical care to people. It’s why we’re hiring 200 new family doctors,

200 more nurse practitioners and 50 more clinical pharmacists. These

professionals are going to provide primary care for thousands of patients in

every corner of our province.

To give people the health care they deserve, we’re building and

improving hospitals across B.C., from North Vancouver to Langley, from

Terrace to Penticton. We’re investing in seniors care, with hundreds of new

beds and expanded diagnostic and treatment options for patients. That

includes 37,000 more MRI exams and a new surgical strategy that will reduce

wait times.

Universal health care is foundational to who we are as Canadians, but

for far too many, the price of prescription medication is too high. I’ve

heard from seniors who only take half of their prescribed medication,

putting their health at risk, because they can’t afford it. That’s why we

eliminated Fair PharmaCare deductibles for people with low incomes in this

province, and in Budget 2019, we’re taking the next step by investing an

additional $42 million to expand drugs covered by Fair PharmaCare so that

people can access the medications that they need.

Our government’s also working hard to tackle B.C.’s overdose crisis

and expand mental health services for British Columbians. One of the first

things we did as a government was to invest $322 million to help stem the

tide of the overdose crisis. This action is saving lives by expanding harm

reduction, increasing access to naloxone and connecting people to

life-saving supports, including treatment and recovery services.

We’re getting to work to improve the mental health services people

count on. I’ve met with countless parents worried about their child’s

well-being, and they didn’t know where to turn. It’s time that B.C. had a

child and youth mental health system where families can ask once and get

help fast. In Budget 2019, we are making a $74 million investment to start

to build that system now.

We’re going to improve access to care and work to end stigma, so

families can feel safe accessing the supports they need. Our kids and our

young people deserve a complete system of care, where every door is the

right door, because after a decade of neglect, people can’t afford to wait

for the services they so desperately need.

This commitment to the well-being of our children doesn’t end at our

health care system. Our children deserve a good education in safe,

supportive classrooms. We’re making record investments to achieve smaller

class sizes, improve schools and classrooms and give kids more

support.

[2:05 p.m.]

In Budget 2019, that means over a half a billion dollars going to

education to ensure our schools can deliver quality education to all British

Columbians. That’s on top of the work we’re doing to hire over 4,000 new

teachers, school psychologists and counsellors. It’s in addition to hiring

1,000 new education assistants to support children in the classroom. We’re

investing almost $1 billion into new schools, additions, seismic upgrades

and property purchases with the largest capital investment in B.C.’s

history.

What have these investments meant? Over 17,000 students with safer

classrooms because of seismic upgrades and replacement schools and over

11,000 children enjoying new school playgrounds just one year after the

launch of our government’s new annual playground fund.

We’re investing in health care, in education and in fundamental

services, because that’s what British Columbians have asked us to do. It’s

good for people, it’s good for our economy, and it’s good for British

Columbia.

British Columbia is a remarkable province of natural beauty,

hard-working people and a thriving economy. For British Columbians, our

mountains, rivers, forests and ocean are part of our identity, part of our

way of life. They’re vital to our health, recreation and industries. Our

environment not only represents us to the world; it represents who we are as

a people. It’s something that all British Columbians feel proud and

protective of, and it’s something we must preserve.

The increase in catastrophic wildfires and devastating floods over the

last two years weigh heavily on hearts and minds. This past summer when B.C.

was blanketed by a dark, smoky sky, I heard many people wonder out loud if

this is what we can expect for our future. British Columbians from all

political stripes recognize the threat posed to our province by climate

change. The Intergovernmental Panel on Climate Change let the world know

that urgent, large-scale changes from government, industry and individuals

are all needed to address this crisis. It’s not too late to do our part. So

we have chosen to act.

In December, working together with our colleagues in the Green Party

caucus, we introduced CleanBC, our climate action plan, to put our province

on the path to a cleaner, better future. We’re reducing climate pollution by

shifting homes, vehicles and businesses away from fossil fuels towards clean

electricity and other sources of renewable energy.

With CleanBC, we are building a strong, sustainable, low-carbon

economy for the future. We’re protecting the place we call home. I’m proud

to announce that Budget 2019 invests $902 million in CleanBC, the largest

investment in climate action in B.C.’s history.

Budget 2019 includes a $41 million investment in incentives that will

save families hundreds of dollars with clean energy retrofits for their

homes. We’re investing $90 million to make electric vehicles more

affordable, putting up to $6,000 in any British Columbian’s pocket who buys

an electric car. This isn’t just good for the planet; it’s good for people’s

pocketbooks.

We’re increasing the climate action tax credit for working and

middle-class British Columbians. That means that families will receive

payments of up to $400 per year. CleanBC will strengthen our province by

opening doors to new, clean opportunities. B.C. is a destination for new

investments and industries that share our goal of urgent climate action.

First Nations, local governments and businesses are all partners on the path

forward to reduce our reliance on fossil fuels and cut air

pollution.

Now, we know that fighting climate pollution isn’t the same challenge

for all communities. That’s why we’re investing $15 million this year to

support remote communities in transitioning to clean energy solutions. For

those communities facing the threat of wildfires, we’re investing $171

million in response, prevention, recovery and resiliency work.

We’re taking critical steps forward as we build a clean future for our

children and our grandchildren. We’re doing our

part in a way that makes

life better for people and builds a strong economy.

[2:10 p.m.]

Central to our commitment to make life better for British Columbians

is the work we’re doing with First Nations to achieve true and lasting

reconciliation. We have an obligation to recognize injustices which continue

to affect the lives of generations of Indigenous peoples.

Our commitment to do so is more than just words. Last year we made a

historic $50 million investment in supporting the First Peoples Cultural

Council and First Nations communities to revitalize Indigenous languages. We

took the bold step of being the first province to partner with First Nations

communities to build and operate over 1,700 units of social housing on and

off reserve.

At the time, I told people that this was just the start. Today I’m

proud to say that we’re taking another step forward in our

government-to-government relationship. In partnership with the First Nations

Leadership Council, we are co-creating legislation to implement the UN

declaration on the rights of Indigenous peoples.

We’re taking action with legislation, but we’re also taking action

with resources. I’m also proud to announce that Budget 2019 introduces the

most substantial revenue-sharing agreement with First Nations in B.C.’s

history. This commitment means over $3 billion in provincial gaming revenue

will be shared with First Nations communities over the next 25 years,

including nearly $300 million in the next three years.

This agreement is the result of decades of work and advocacy by First

Nations to address the need for stable long-term funding in their

communities. With these funds, First Nations will be able to invest in

services and infrastructure for their communities — like child care,

supports for new parents, housing, road upgrades, self-government and

economic development. It’s the right thing to do on the path to

reconciliation, because B.C. thrives when everyone has the opportunity to

succeed.

On that note, I’m proud to say that British Columbia’s economy is

thriving. We’re projected to run surpluses: $274 million, $287 million and

$585 million, over the three years of the fiscal plan

respectively.

Our debt-to-GDP ratio is at its lowest level since the financial

crisis, and we’re the only province with a triple-A credit rating from all

three major international rating agencies.

The operating debt has been eliminated for the first time in 40 years,

and the Economic Forecast Council predicts that B.C.’s economy will grow by

2.5 percent this year and 2.6 next year, leading all of Canada.

As I’ve said, we’re at an important crossroad. We have the opportunity

to lay the groundwork for what B.C. will become for our children’s children

and invest in the opportunities people need today so we can continue to

build a strong, sustainable economy for the future. To build that strong

economy, we need a strong foundation. I’m proud to say that we are building

that foundation — again, with the largest capital plan in B.C.’s history, a

$20 billion investment in infrastructure in communities around the province.

The construction of these schools, roads, health care facilities and

post-secondary institutions will support tens of thousands of

jobs.

We’re choosing to innovate, diversify and move British Columbia’s

economy forward. Our government has facilitated the largest private sector

investment in Canadian history — a liquefied natural gas project worth $40

billion, of which $24 billion will be spent right here in B.C. We did so

under four important conditions: a fair return for B.C.’s natural resources;

good jobs and training for British Colum­bians; respect and

partnership with First Nations; and protections for our air, land and

water.

[2:15 p.m.]

This project will produce one of the cleanest LNG facilities in the

world. It generates funds for critical services while meeting our

responsibility to guarantee clean air, land and water for generations. It

creates opportunities for British Columbians and their children in the

communities they call home. This includes up to 10,000 construction jobs and

950 permanent jobs.

This is a critical investment in our resource-based communities, who

for too long saw their sectors neglected. I’m proud to say that Budget 2019

also invests in these communities. We’re working to rebuild a strong,

healthy forestry sector, with a $10 million investment. And to support the

people who work in the mining industry, we’re investing $20 million to

ensure a fair, independent oversight body that protects workers’ health and

safety.

While we work to strengthen resource industries like forestry and

mining, we’re also supporting tourism, agriculture, manufacturing, tech and

the creative economy. Budget 2019 invests $15 million in making B.C. a

leader in the arts so we can open doors for our artists, writers and

creators.

As we look to the future, we continue to create the conditions for

B.C.’s tech sector to continue to thrive. Tech and innovation are growing

rapidly, and to help B.C. become a global hub of innovation and

connectivity, we’re investing $50 million to expand high-speed Internet all

across this province. This investment will allow businesses to expand in

dozens of rural and remote communities.

However, none of this work to advance and diversify our economy would

matter without the skilled workers to do these jobs. That’s why we’re

supporting 2,900 science and tech spaces at post-secondary institutions

across this province.

Our government is working to set the stage for B.C.’s future economy.

To that end, we’re also helping small business and entrepreneurs get ahead.

We cut the small business corporate income tax rate from 2.5 to 2 percent,

making it the second-lowest small business rate in Canada.

As of April 1 this year, we’re fully eliminating the PST on

non-residential electricity, again helping businesses expand. And I’m proud

to announce today that our province will be joining with the federal

government to deliver tax reductions for businesses investing in machinery

and equipment in British Columbia. In total, our contribution means $800

million in tax reductions for businesses over the next four

years.

We’re working to create opportunities so that businesses and people

can thrive, and we’re seeing the results. Unemployment is at record lows,

and we continue to lead the country with a 4.7 unemployment rate. After

years of stagnant wages, our strategy is paying off for British Columbians.

Wage growth has accelerated to 4.1 percent, the highest rate in a decade.

And the new child opportunity benefit and the full elimination of MSP

premiums will put thousands of dollars back in people’s pockets.

The net result? A family of four making $80,000 will be paying 43

percent less in taxes than they did under the last government. When all of

this work is put together, it’s clear that we’re making choices to put

people first, because it’s good for people, it’s good for our economy, and

it’s good for British Columbia.

It’s a true privilege to stand here today and to table our

government’s second full budget, and it’s a privilege to work each and every

day for the people of this province. When people voted for change nearly two

years ago, they knew they could count on our government to roll up our

sleeves and get to work.

Under the last government, we saw health and education underfunded and

neglected. Fiscal mismanagement turned ICBC and B.C. Hydro into fiscal

messes, and money laundering and real estate speculation were allowed to

take root in our province.

[2:20 p.m.]

There is no shortage of work to do. We are doing, in our government,

the heavy lifting to put B.C. back on track, where people can see hope on

the horizon, where they can break out of a cycle of living paycheque to

paycheque and access opportunities to make their lives better. We’re working

to ensure that all British Columbians can live a good life.

Now, we know the problems we face won’t be fixed overnight, but

looking back on the progress we’ve made and our next steps in this Budget

2019, the results are showing. Young people are getting the chance to start

off their careers without being saddled by ever-growing debt. Families are

getting the supports they need so they can afford child care and give their

children the opportunities they deserve. Businesses have the assurance of a

thriving economy, a balanced budget and some of the lowest personal income

taxes in this country, and future generations of British Columbians will

know that our province did our part to lead the fight against climate

change.

There is a long way to go yet, but your government is committed to

making your life better. As I look ahead to the future we’re charting, I

can’t help but reflect on my past and where I came from. When I think of the

work we’re doing to support each other and give people access to

opportunities, I think back to my family home a few blocks from

here.

Today the owners rent out the spare bedrooms to tenants. I’ve talked

to students, newcomers to Canada and even a family with a newborn born in

the house, who have loved the warmth of living there. After all these years,

it fills me with happiness to know its door is still open to people. The old

house reminds me of where I come from and where we are going as a province:

through open doors that lead to a better life for all British

Columbians.

T. Redies: It’s my privilege to deliver an initial response to Budget 2019 on

behalf of the official opposition. Today, as the designated speaker, I’ll be

providing a brief overview and will reserve my remaining remarks for a later

time. I also want to note that my fellow critic, the member for Prince

George–Valemount, will provide final remarks later in the debate. Along with

my colleagues, we will present a detailed review of what exactly is in this

budget. We expect it to be much the same as it was in Budget 2018, with the

devil truly in the details.

Last year tax policies appeared made up on the fly. Constant revisions

to the half-baked speculation tax have only contributed to the market

uncertainty and confusion on the part of average homeowners. It seems this

Finance Minister has cast her tax policy as a giant fishing net. Only a

month ago 1.6 million British Columbian homeowners discovered they had to

declare their ownership or be deemed speculators and forced to pay the NDP

speculation tax. Now, we’ve been warning that the NDP would take us back to

the 1990s. We just never thought it would be cable-company negative

billing.

The employer health tax, or EHT, is another prime NDP tax attack.

Without public consultation, without warning and without a mention during

the election, the Finance Minister cast her net over taxpayers again with

the EHT. This tax caught everyone off guard. Here in the capital, Victoria

council has said the EHT is the reason it has held off on a planned boost to

its police budget, and the chief says that it will result in the equivalent

of nine police officers and civilian employees being cut this

year.

Make no mistake: the police budget is going up by $1.8 million, but

$700,000 of that is going into the Finance Minister’s net, paid for by

increased taxes on Victoria residents. The Finance Minister’s net is

catching municipalities in every part of the province, and not just for

local governments. Businesses are facing a triple whammy. Not only are they

paying the EHT and the MSP in 2019; they’re also paying higher taxes to pay

their municipality’s share of the EHT.

[2:25 p.m.]

Now, what we didn’t see in Budget 2018 was an economic plan or a

vision for the province, and Budget 2019 is no different. The distinct

absence of any bold economic measure is not very reassuring to the private

sector or the average British Columbian. We see no efforts to stimulate the

growth of the private sector or to encourage foreign direct investment and

grow high-paying jobs, only the continued growth of the public sector, now

on a bloated path to grow by $13 billion since the NDP took over.

Business confidence, a barometer for business investment, is sagging

in this province, with only 46 percent of businesses believing this

government supports them. That figure has dropped from 78 percent just two

years ago, according to the B.C. Chamber of Commerce.

We certainly didn’t see any concrete vision in the government’s

lame-duck throne speech last week. In fact, if the government’s two new

primary strategies for solving affordability announced in last week’s throne

speech cover only cell phone bills and ticket scalpers, what reassurance can

British Columbians take who are living paycheque to paycheque?

That bring us to today’s budget speech. While it appears this budget

is balanced as of 2019 and through the next three years, we believe there is

significant risk in this forecast that will put the budget in

jeopardy.

The government is baking in $13 billion in spending since the NDP took

office, which is a 26 percent increase over four years. Taxation revenues

are increasing by $10 billion, including almost $6 billion in new taxes.

This budget, importantly, also includes a one-time $1.6 billion federal

transfer payment, which was based on a super-hot 2017 economy under the

previous government.

Let’s be clear. It’s not a given that this transfer will be repeated

in 2019, 2020 and beyond. If this transfer was excluded from this year, the

government would be facing an $800 million deficit. And notwithstanding the

increased uncertainty in the global economy, the NDP have actually reduced

their forecast budget allowances over the next three years to a minuscule

amount, despite razor-thin surpluses. There is no room for error. Surpluses

are only a half of 1 percent of the planned spending of this

government.

Further, based on ICBC’s $300 million in additional losses to forecast

this year, we remain highly skeptical that ICBC can get back to the black in

one year, which is essentially what this budget is forecasting in

2019-20.

Simply put, the math doesn’t work. We’re concerned that this

government continues to be the tax-and-spend NDP of the 1990s on

overdrive.

It’s very important that governments build in fiscal prudence, as one

never knows how the global economy will end up. We know that the global

economy is slowing, as is the B.C. economy, yet this government is

increasing spending at a huge clip, and they are basing their budget on a

hope and a prayer that the federal transfers will continue.

More importantly, there is virtually no reference to a jobs plan, to

growing the private sector economy, to attracting foreign direct investment,

to improving business competitiveness, to increasing exports, to growing

high-paying private sector jobs that add to the tax base. There is nothing

in this budget about that, and based on what we’ve seen in the last two

budgets, should a fiscal challenge emerge for this government, which we

think is highly likely, we have absolutely no doubt that this government

will not hesitate to go back to their primary revenue generation source —

the B.C. taxpayers.

This government is being far from prudent. To date, what have the

middle class, the average person on the street, got to show for this

government’s largesse on their behalf? Are their lives any better? Is life

really more affordable under the NDP? Even the throne speech acknowledged

that many people are still having to work two jobs just to make ends meet —

this after two years of the government promising to make life

better.

Interjections.

Mr. Speaker: Members, we shall hear the reply.

T. Redies: Has a lottery system for daycare services translated into universal

savings for families across the province or just in randomly selected

communities? We looked hard at the child care spending in this budget, and

what we found was that there’s nothing new. The B.C. child opportunity fund

that the minister announced doesn’t kick in until 2020. Based on our

previous concerns, we are very skeptical that the government will be able to

fund it without going into deficit.

Where is the $10-a-day daycare? Today only 2 percent of child care

spaces in this province are at $10 a day. What about the $400 renters

allowance? That appears to have disappeared into the ether of unfulfilled

campaign promises.

[2:30 p.m.]

This government said they would be putting more money in your pocket.

It’s more like more of your money into their pocket. As we’ve seen, this

government truly believes it can spend your money better than

you.

By next year, per-capita taxation — that is, the amount of tax paid on

average for every man, woman and child in this province — will have

increased by almost $1,100 under this government, net of the MSP

elimination. Now, that is the average. Some people will be paying less, but

the large majority will be paying more in tax. How is this making life more

affordable for British Columbians?

After two years of the NDP, where are the affordable homes in Metro

Vancouver? This government’s housing policy has certainly led to the

plummeting value of the most expensive homes in B.C., by probably 20 to 25

percent, depending on the area. Unfortunately, they still remain well beyond

the reach of the average British Columbian. So if the Finance Minister wants

to take credit for making luxury homes more affordable for rich people, by

all means, Minister, take a bow.

To date, housing prices in more affordable markets in Vancouver have

only increased in price. From Chilliwack, where prices have risen by 11.2

percent in 2018, to the Fraser Valley and Victoria, where prices have

increased by 7 percent or more, for the average middle-income earner, homes

have just become more expensive since the NDP took power. In black and

white, this budget shows that housing starts will drop substantially in each

of the next three years. Apparently, everyone except the NDP knows that

adding supply is a key factor in improving housing affordability. Why is it

so hard for this government to understand that they are one of the biggest

culprits in the lack of affordable housing in B.C.?

While British Columbians are struggling to heat their homes through an

extended cold snap this winter, they can take cold comfort in the fact that

this budget contains the second of four consecutive increases to the carbon

tax, which will increase by 67 percent under this government. The carbon tax

will generate $6 billion over three years, dramatically increasing gas

prices, heating costs and, of course, the cost of doing business, at a time

when B.C. has already lost its competitive advantage.

You can imagine our surprise when we discovered in this budget that

out of this $6 billion, only $900 million is being invested in the CleanBC

green initiatives. The rest is going into general revenues. Further, 45

percent of this money is unallocated or has no detailed plan regarding the

expenditure. It’s clear that this is a slush fund to keep the leader of the

Greens happy. For a government that claims to make life more affordable,

British Columbians are wondering if they can afford any more largesse from

this government.

Life is not more affordable for most British Columbians two years into

this NDP government. No, from house prices to gas prices to car insurance to

groceries, life is not more affordable under the NDP. Far from it. The NDP

minority government, backed in full by the Green Party, has now been in

power for two years. Instead of outlining a discernible pathway to

sustainable economic growth, this government appears stalled at a

crossroads, stalled in a mid-life crisis with no plan to create the

higher-paying jobs that are needed to address affordability, no plan to

stimulate business investment in our province, a growing and punishing tax

burden on employers in B.C. and no incentives to make B.C. more competitive

in global markets.

Today we see a government that is almost catatonic on the economy,

perhaps relying solely on one LNG project that was started by the B.C.

Liberals and no economic plan of their own. Instead, we have a government

that seems to think that economic policy is about growing public sector jobs

and paying off the unions that got them elected. They’ve been blindly

spending the surpluses left them and taxing British Columbians more and

more, thinking that this party will never end.

The government can’t keep going to the piggy bank of the roughly 2½

million people in this province who pay tax. They’re already taxed to the

hilt. We know global and provincial growth are slowing. Housing starts are

down. Housing sales have cratered, and we can already see the impact on the

government’s property tax revenues. The party may not be over, but it’s

nearing midnight.

We’re left wondering: just how is this government going to deliver on

its many unfunded promises to British Columbians? It’s certainly not clear

from our perusal of this budget, and I don’t think it will be clear to

British Columbians.

I will conclude now and ask to reserve my remaining time for tomorrow,

as we adjourn debate.

T. Redies moved adjournment of debate.

Motion approved.

[2:35 p.m.]

Introduction and

First Reading of Bills

BILL 5 — BUDGET MEASURES

IMPLEMENTATION ACT,

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

Lieutenant-Governor: a bill intituled Budget Measures Implementation Act,

Hon. C. James: I move first reading of Bill 5, Budget Measures Implementation

Act, 2019. The bill amends 12 statutes in order to implement many of the

tax measures in Budget 2019.

To make sure that every child has the opportunity to thrive,

effective October 1, 2020, the Income Tax Act is amended to replace the

early childhood tax benefit with a new B.C. child opportunity benefit,

providing hundreds of millions of dollars each and every year to

families with children.

The Income Tax Act is also amended to extend or make permanent

several tax credits. For example, the mining flow-through share tax

credit is made permanent. The mining exploration tax credit is made

permanent. The training tax credits are extended for one year. The

shipbuilding and ship repair industry tax credit is extended for three

years. The farmers food donation tax credit is extended for one

year.

The Income Tax Act and the Small Business Venture Capital Act are

amended to make several changes to modernize and enhance the small

business venture capital tax credit program. These changes will help

ensure that the program continues to meet the needs of B.C.’s business

community.

The Motor Vehicle Act is amended, effective July 1, 2019, to

enable Metro Vancouver mayors to increase their motor fuel tax by up to

1.5 cents per litre on gasoline and diesel in the TransLink service

region, at the request of the Mayors Council.

Finally, a number of statutes are amended to improve tax

administration through enhanced enforcement and information-sharing

provisions and to ensure necessary consequential amendments to various

statutes.

Motion approved.

Hon. C. James: Now I’ll move that Bill 5 be placed on the orders of the day for

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

Bill 5, Budget Measures Implementation Act, 2019, introduced, read a

first time and ordered to be placed on orders of the day for second reading

at the next sitting of the House after today.

Tabling Documents

Hon. C. James: I have the pleasure to rise to table government’s overall strategic

plan and the Budget and Fiscal Plan 2019-20–2021-22 , which together

fulfil the requirements of sections 7 and 12 of the Budget Transparency and

Accountability Act. I also table, on behalf of the ministers responsible,

service plans, as required under

section 13 of the Budget Transparency and

Accountability Act.

The service documents are presented in two binders. The first binder

contains service plans for the Office of the Premier and 20 ministries. The

second binder contains service plans for 27 service delivery agencies and

Crown corporations. The second binder also includes a listing of

organizations that are exempted from the service plan requirements and

identifies two new exemptions from

section 13 of the Budget Transparency and

Accountability Act.

Presentation of Estimates

SUPPLEMENTARY ESTIMATES FOR THE

FISCAL YEAR ENDING

MARCH 31, 2019

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

Lieutenant-Governor: supplementary estimates for the fiscal year ending

March 31, 2019.

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

estimates accompanying the same be referred to the Committee of

Supply.

Motion approved.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 1:30 tomorrow.

The House adjourned at 2:39 p.m.

The Official Report of Debates ( Hansard ) and webcasts of

proceedings

are available on the Internet. Chamber debates are broadcast on

television.

Copyright © 2019: British Columbia

Hansard Services, Victoria, British Columbia, Canada