2010 Legislative Session: Second Session, 39th Parliament

HANSARD

The following electronic version is for informational purposes only.

The printed version remains the official version.

official report of

Debates of the Legislative Assembly

(hansard)

Thursday, April 15, 2010

Afternoon Sitting

Volume 14, Number 5

CONTENTS

Page

Routine Business

Introductions by Members

Tributes

Gene Kiniski

M. Farnworth

Introductions by Members

Statements (Standing Order 25B)

David Thompson Heritage Lands

N. Macdonald

Christine Morrison Hospice

M. Dalton

Terry Fox’s Marathon of Hope

M. Farnworth

Business awards for cultural diversity

D. Hayer

Fraser River protection

D. Black

Williams Lake Indoor Rodeo

D. Barnett

Oral Questions

Harmonized sales tax

B. Ralston

Hon. C. Hansen

M. Farnworth

Government mailout information on harmonized sales tax

D. Donaldson

Hon. C. Hansen

A. Dix

S. Simpson

J. Horgan

D. Black

R. Fleming

J. Kwan

High school child care programs for student parents

M. Elmore

Hon. M. Polak

M. Karagianis

Tabling Documents

WorkSafe B.C., annual report, 2009, and service plan, 2010-2012

Hon. M. Coell

Environmental Appeal Board, annual report, 2008-2009

Hon. B. Penner

Orders of the Day

Second Reading of Bills

Bill 9 — Consumption Tax Rebate and Transition Act (continued)

J. Kwan

Hon. B. Bennett

D. Black

R. Lee

J. Horgan

Hon. S. Bond

G. Gentner

Proceedings in the Douglas Fir Room

Committee of Supply

Estimates: Ministry of Housing and Social Development (continued)

S. Simpson

Hon. R. Coleman

V. Huntington

N. Simons

M. Karagianis

M. Elmore

S. Chandra Herbert

M. Sather

H. Bains

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THURSDAY, APRIL 15, 2010

The House met at 1:33 p.m.

[Mr. Speaker in the chair.]

Routine Business

Introductions by Members

M. Farnworth: In the gallery today we have visiting us — during, I think, an important week, this being the 30th anniversary of Terry Fox's run, the Marathon of Hope, which started in Newfoundland — students from Terry Fox Secondary School in my constituency. They are here to see our proceedings and tour the buildings. I would ask the House to make them most welcome.

L. Reid: I have the absolute pleasure today of welcoming to this place Carla and Mike Cuccione. They have joined us. Michael Cuccione is the president of the Michael Cuccione Foundation. Some of you will know that Michael visited here prior to his death. The work they continue to do in terms of fundraising on behalf of pediatric cancers is extraordinary. I'd like the House to please make them welcome.

Hon. M. Coell: I am pleased to introduce a group of grade 3 students visiting us from Salt Spring Centre School. They're here with their teachers and parents. I met with them earlier and made a point of telling them how respectful and quiet question period will be this afternoon. So please make them very welcome.

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Tributes

GENE KINISKI

M. Farnworth: I'd like to take this opportunity in introductions to recognize the passing of a prominent British Columbian, particularly for those of us of a certain age who grew up in the '60s and '70s in British Columbia, who on Saturday afternoons would turn on one of three television stations in the Lower Mainland. You would watch All Star Wrestling hosted by Ron Morrier, and one of the key attractions was Gene Kiniski, who was billed as Canada's greatest athlete.

He was an individual who was known to legions of fans across B.C. and across this country as the ultimate heel in professional wrestling, but more than that, he was a very community-minded individual who left a mark here in British Columbia. I think all of us should recognize his contribution to British Columbia.

I would ask the House to recognize his passing and send our condolences to the Kiniski family.

Introductions by Members

Hon. J. Yap: In the gallery today is an old friend, mentor and constituent, Tung Chan, who all members will know as not only a great Canadian but also the chief executive officer of the great social service agency, the organization known as SUCCESS — one of the most successful immigration, settlement and social service agencies supporting all communities, including the Chinese-Canadian community in Canada and British Columbia.

Would the House please join me in offering a great B.C. Legislature welcome to Tung Chan.

Hon. N. Yamamoto: I have the pleasure of welcoming His Excellency Justin Brown to the House today. He's the High Commissioner of Australia to Canada. He is here to have meetings with the Minister of Small Business, Technology and Economic Development, myself and the Minister for Climate Action.

Would the House please make him feel welcome.

J. Kwan: I'd like to just add a welcome to Tung Chan, who is the CEO of SUCCESS, who earlier, actually, also made an announcement that he'll be retiring from SUCCESS. I'm sure the board and the staff there will miss him very much, in terms of his leadership for the organization.

In addition to that, today we have a busy day, I think, in the legislative building for school tours. I had the great pleasure of just meeting with a group of students and adults from Britannia. There are 22 students in the group, and they're accompanied by Jane Belanger, the teacher, and the youth workers Barry Skellen and Mary Beth Sullivan.

They're here to visit the Legislature and learn about what we do, what the hot issues of the day are. I know they'll be watching question period as well, although I don't see them at the moment. Maybe they are seated behind me. If they are, maybe wave to the folks on this side. I would ask the House to please make them welcome.

D. Horne: It's with great pleasure today that I acknowledge in the gallery Mary Collins, former Member of Parliament and someone who held a number of portfolios federally and who really does contribute a great deal to the community. I want the rest of the members to join me in making her welcome.

Hon. B. Penner: I have the honour to introduce to members present Mr. John Hansen, president of the North West CruiseShip Association. He's somebody I got to know a number of years ago when I was working with the Pacific Northwest economic region.

He's joined here today by Mr. Tom Dow of the Carnival Corporation. He's a vice-president with them.

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As well, Andy Nelson, vice-president of tour operations for Royal Caribbean Tours, and Mr. Bruce Bustamante, vice-president, community and public affairs, with Princess Tours.

Would the House please make these gentlemen welcome. I note that the first cruise ships of the season are just weeks away.

L. Reid: Mr. Speaker, today I have the honour of making an introduction on your behalf. In the precinct today we have a delegation from the Bermuda House of Assembly. They are here to observe our Hansard broadcasting and transcription operations.

Joining us in the Hansard broadcasting studio are Mr. Eugene Bassett, Mr. Norris Ebbin and Mr. Robert McRonald. With them is Mr. Nic Côté of the Montreal-based media technology company which developed the digital audio recording and transcription system in use in our Legislature today.

I would ask the House to please make them welcome.

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Hon. M. de Jong: The government/non-profit initiative is comprised of senior representatives from the non-profit sector and the public service. They are here today conducting joint meetings in an attempt to ensure that we are working together to best serve the non-profit sector. I hope all members of the House will make them all feel welcome.

Statements

(Standing Order 25B)

DAVID THOMPSON HERITAGE LANDS

N. Macdonald: David Thompson is one of Canada's most fascinating historical figures, and in the Columbia Valley he is particularly celebrated. In January 1811 he travelled up the Whirlpool River in what is now Jasper National Park and over the Continental Divide down to the upper Wood River, which is a tributary of the Columbia River. This followed an established First Nations route.

Next summer the communities of Revelstoke, Golden and Invermere will celebrate the bicentennial of David Thompson's initial journey through the Athabasca trail. This 200-year anniversary is an ideal time to commemorate his legacy through the creation of the David Thompson Heritage Lands. The upper Wood River is an area largely untouched by people. In fact, Wood River Forest, which has cutting rights in the area, has voluntarily surrendered those rights to keep the area protected. Back-country users in Golden and Revelstoke have also agreed that this special place should remain wild.

My wife Karen and I hiked the Athabasca trail a couple of summers ago. It is true wilderness. We saw wolves, which was special, and a lot of mosquitoes, which was less exciting. Currently the Minister of Forests has signed off on a change to the Kootenay-Boundary higher level plan to protect the area because of its historical and environmental significance.

Now the hope is that the Athabasca trail will be made a national heritage site, and the provincial government, of course, has a role in that designation. People in Revelstoke and Golden certainly hope that this area's pristine environment and ecological integrity can be safeguarded, along with recognition of the historical significance of the Athabasca trail. The David Thompson Heritage Lands will make a fine addition to Canada's national historic site system.

CHRISTINE MORRISON HOSPICE

M. Dalton: Last Friday I had the opportunity to visit the Christine Morrison Hospice, occupying the entire third floor of Mission Memorial Hospital for the past seven years. As you step off the elevator, a waterfall mirror welcomes you in. The warm lighting, colours and comfortable furniture create an atmosphere that helps you forget that you're even in a hospital.

At the front desk you will meet one of the many dedicated volunteers or staff who will be there to greet you, people like LPN Joanne St. Pierre, RN Jane "Spikey" Godfrey or Joanne Halligan, coordinator of volunteers. You may also talk with Dr. Potter, who has been in the Mission Hospice for many years.

Founded in 1985 to provide compassionate care and support to the dying and the bereaved, the hospice emphasizes care, not cure, for those who are in the final stages of life. Executive director Kim Skinner believes that aligning oneself with the Mission Hospice Society means working with a team of dedicated professionals, committed volunteers and generous donors who share the vision of quality hospice care for everyone in the community. Her predecessor, Stephanie Ediger, and people like past president Diane Kruger have spent years building the hospice from a small society into the wonderful place it is today.

Not only does the hospice offer a comfortable place for patients, it also offers tremendous support for families and friends. Kimberley Thompson, the coordinator of bereavement programs, and Kate McCandless, the child, youth and family program coordinator, help people deal with the loss and find renewed meaning in life. The commitment of hospice staff, doctors, nurses and volunteers is invaluable and is greatly appreciated in the community.

TERRY FOX’S MARATHON OF HOPE

M. Farnworth: This week we mark the anniversary of an astonishing achievement by one of our greatest

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British Columbians and Canadians. Thirty years ago, on April 12, 1980, Terry Fox began his Marathon of Hope by dipping his artificial leg into St. John's harbour.

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All of us know the rest of Terry's remarkable story. His goal was to run across Canada to raise money for cancer research, and he pursued his goal for 143 gruelling days. He eventually had to stop outside Thunder Bay, Ontario, because he was too sick to continue. The cancer that he had been fighting had returned.

It was a remarkable achievement, and I'd like to put those numbers into a bit of perspective for all of us in this room and in the gallery. Running for 143 days straight with no day off, running an average of 42 kilometres each day. Just so we can all appreciate that, that's like each of us getting up tomorrow, putting on our sweats and running shoes and then going outside to run a marathon, and then the next day and the next day, and doing it over and over and over again for 143 days.

Are you tired even just thinking about it? But Terry did it for 4½ months. His run was a testament to the spirit of the individual, but more important than that, it showed us that it's ordinary people who achieve remarkable and extraordinary things.

I was at school with Terry. We were in the same class in junior high school. He was just a regular kid like everybody else in that classroom, but he went on to achieve true greatness — greatness that wasn't thrust upon him, but greatness that came from inside him.

He had a heart and a determination to achieve his goal and his dream. He did that day in and day out, and that is why his legacy lives on. But more important than that, and just as important as the battle to fight cancer, is the lesson for us that it's within each of us with our determination to make dreams like his a reality.

BUSINESS AWARDS

FOR CULTURAL DIVERSITY

D. Hayer: On Tuesday, I attended the 15th annual Cultural DIVERSEcity Awards for Business at the Sheraton Guildford Hotel in my riding. This was an exceptional evening, which recognized the tremendous diversity in businesses throughout the Lower Mainland and celebrated the culture that makes up our communities.

This special awards ceremony was organized by DIVERSEcity Community Resources Society. I have had the pleasure of attending this annual recognition of a remarkable business organization for many years now. This year in the category of Business 1 to 25 Employees, the winner was Ashton Service Group, and the finalists were L2 Accent Reduction Centre and 818 Channel Media Inc.

In the category for business with more than 25 employees, the winner was the Ebco Group of Companies, and the finalists were Synergy Engineering and the Harmon Bal Group of Companies. In the corporate category, the winner was Home Depot, and the finalists were Costco and PricewaterhouseCoopers.

In not-for-profit section, the winner was the Hospital Employees Union, and the finalists were the Canadian Union of Public Employees and the Developmental Disabilities Association.

In the category of public institutions, the winner was the Richmond school district, and the finalists were UBC Continuing Studies Centre for Intercultural Communications and the Vancouver school board.

I would ask the House to join me in congratulating all the winners and finalists and to help me thank president Joseph Brown; Lesley Woodman, executive director, an excellent director for the last ten years; director Rob Terris; Debbie Lawrance, Diana Ng, Kiren Sandhu, Conni Kilfoil, Sarb Basra and Shelly Adams Turner; emcee Penny Priddy; keynote speaker Sophie Lui of Global TV; all the volunteers, judges, staff and sponsors for organizing this evening of recognition for the diversity displayed in these businesses and for the excellent work they do in the organization of business.

FRASER RIVER PROTECTION

D. Black: It's easy to buy fish at a supermarket without thinking about the process it took to get there. We all benefit from the use of our rivers for fishing and transportation, but too often we don't think about our ability to sustain these rivers.

The importance of the Fraser River to the building of our province and the continued life of our communities cannot be overstated. Archaeological evidence shows traces of occupation by First Nations peoples in the Fraser Basin as far back as 10,000 years ago. Today two-thirds of all British Columbians live in the Fraser Basin.

[1350]

Sadly, the Fraser came third on this year's list of endangered rivers of B.C. compiled by the Outdoor Recreation Council. Of particular concern is last year's sockeye run, which Mark Angelo, chair of the Rivers Institute at BCIT, says is the lowest return recorded in 52 years. Last year's massive shortfall raises concerns about the long-term survival of fish stocks that have been so crucial to B.C.'s communities for hundreds of years.

There are groups doing tremendous work to protect the Fraser, groups like the Fraser Basin Council, the Rivershed Society of B.C. and the Fraser River Discovery Centre in New Westminster, which works to educate the public about the importance of the river.

American photographer and environmental writer Tim Palmer says the "river is the centre of the land, the place where the waters and much more come together. Here is the home of wildlife, the route of explorers and recreation paradise…. Only fragments of our inheritance remain unexploited, but these streams are more valuable than ever."

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I hope that both parties in this Legislature can work together to recognize the importance of the Fraser and ensure that its benefits keep flowing for future generations.

WILLIAMS LAKE INDOOR RODEO

D. Barnett: A wild horse race, peewee barrel riders, a barn dance, bull riding, pancake breakfast, clowns and prizes, beer gardens and live music — these are a few of the action-packed events happening this weekend as rodeo season is set to kick off.

The Williams Lake Indoor Rodeo is celebrating its 20th anniversary as Williams Lake plays host to the event at the pioneer memorial complex, which boasts not only its second-biggest rodeo of the whole circuit, but for those competing, it is also the second-largest payout. It is expected that over 250 people will be taking

part in the competitions and shows over the three-day festivities that include entertainment for all ages.

This spectacular rodeo could not be possible without the vision of both rodeo president Alan Parent and past president Gwen Cyr as well as all the members of the committee and board of directors. However, none are more important than the tireless efforts of the hundreds of volunteers that make this rodeo possible. Alan started off as a volunteer in the beer gardens many years ago and is now proud that this has turned into a complete family effort.

There will also be four new inductees into the B.C. Cowboy Hall of Fame, which plays an important part of the longstanding tradition in rodeo culture. The rodeo is a major event for Williams Lake and surrounding communities that sees approximately 5,000 people participating as spectators, competitors, volunteers and sponsors that take

part in what will be an experience everyone takes from and enjoys.

I would like to wish all the best to those involved in this spectacular community event.

Oral Questions

HARMONIZED SALES TAX

B. Ralston: Last November 23, the Finance Minister told this House: "The very first indication that anyone in the federal government would have had that British Columbia was reconsidering its previous opposition to the HST was a comment I made to the federal Finance Minister during a break in the deliberations of the Finance ministers' meeting which was held in Meech Lake at the end of May. It was only subsequent to that that there were discussions that commenced at the officials level."

Can the minister explain media reports today that contradict what the minister told this House and suggest that federal and provincial officials were in discussion about the HST within days after the election on May 12?

Hon. C. Hansen: In no way does it contradict what I had said. In fact, what I have said is that going back to the mid-1990s, the federal governments of the day have been urging provinces to sign on to the harmonized sales tax. And yes, as I have indicated, there have been discussions between officials in the provincial Ministry of Finance with their counterparts in Ottawa going back well over 12 or 15 years on this subject of harmonized sales tax.

[1355]

I'd point out to the member that he was the Deputy Chair of the Finance Committee of this Legislature that made a unanimous recommendation that government study the harmonized sales tax. Should it be any surprise to the member, the Finance critic, that officials in the Ministry of Finance took it upon themselves to do exactly that?

Mr. Speaker: The member has a supplemental.

B. Ralston: Well, the time horizon is a little bit shorter than ten to 15 years. Let's just go over what the minister said again: "It was only subsequent to that" — the meeting at end of May at the coffee machine at Meech Lake with Finance Minister Flaherty — "that there were discussions that occurred at the officials level." Is the minister now saying that what he said to the House back on November 23 was wrong?

Hon. C. Hansen: Actually, the member misquoted what he said in the first question, because what I indicated to Mr. Flaherty at the end of May is that we were considering changing our position on the HST. That is exactly the first indication that the federal government ever had that we as the province of British Columbia were going to reverse our previous opposition to the HST.

Mr. Speaker: The member has a further supplemental.

B. Ralston: I can appreciate how excruciatingly painful it is for the minister to be quoted accurately from Hansard , but that's what Hansard says. That's what he said. The minister's position was that HST wasn't really on the radar. I think that's the really ambiguous term he used. Is the minister now suggesting that days after the election, officials in the ministry turned the radar screen on themselves?

Hon. C. Hansen: If the member is implying that in any way I gave instructions or anyone gave instructions on my behalf or on behalf of the government that min-

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istry officials should take on that examination of HST issues, that is false.

As I indicated, I said after the election when I re-engaged with officials in the Ministry of Finance and we went through a whole series of briefings on things to bring me back up to speed in my responsibilities as Minister of Finance, one of the issues that came up was HST. Clearly, the ministry staff had taken a look at it, and it was based on the information that they provided to me in those meetings that we made the determination that we should actually engage in a reconsideration of our previous position.

M. Farnworth: Well, somebody turned the radar on, because prior to the election this Minister of Finance, and every other previous Minister of Finance before him, had said no to the HST. In fact, they told the public during the election campaign: "No, we're not going to do the HST." In fact, they said: "It's not on our radar screen."

Three days after the election ministry officials, on what the government is saying is the most important public policy issue in the province of British Columbia that they had no intention of doing just three days before then…. All of a sudden that's now on the radar screen within the Ministry of Finance.

So my question to the minister is this. If he didn't turn on the radar screen, who did?

Hon. C. Hansen: As I indicated at the outset, there was a unanimous recommendation of the Finance Committee that government study HST. Why should the members in the official opposition be surprised that a unanimous recommendation that they themselves supported — including the Finance critic, the Energy critic, the member for Vancouver–Mount Pleasant, the member for Cariboo North…? They unanimously put forward a recommendation that government should examine HST. That is exactly what happened.

[1400]

But I can tell you that based on the briefings that I got after the election from officials in the Ministry of Finance, where they started pointing out to me that if Ontario had adopted the harmonized sales tax and British Columbia didn't, we would be at a competitive disadvantage…. We would not gain the benefit of the jobs. We on this side of the House stand up for those jobs that will be created in British Columbia. On the other side of the House, they would just as soon see happen what happened in the 1990s, and that's jobs leaving British Columbia to go to Ontario.

Mr. Speaker: The member has a supplemental.

M. Farnworth: Well, last time I checked, finance policy is made in the Ministry of Finance and at the cabinet table, not in a committee.

Interjections.

Mr. Speaker: Sit down for a second. Sit down.

Members.

Continue, Member.

M. Farnworth: Finance policy is made in the Ministry of Finance, and the policy of this ministry had been no HST. It had been no HST since January. It had been no HST for every Finance Minister before this one, and it had been no HST during the election. Yet three days after the election, when they said it wasn't on their radar screen, all of a sudden it is.

Again to the minister: if he didn't turn on the radar screen, who turned it on? This government doesn't make a decision without someone at the top knowing about it.

Hon. C. Hansen: What I said earlier, and I'll repeat it again, is that the staff in the Ministry of Finance took it upon themselves to make those inquiries. If the member is implying that in any way I or anybody acting on my behalf or anybody acting on behalf of any member of executive council made that request, he is absolutely wrong.

GOVERNMENT MAILOUT INFORMATION

ON HARMONIZED SALES TAX

D. Donaldson: Well, here are the facts. It was the B.C. Liberals who, after saying during the election that they had no plan to implement the harmonized sales tax, announced the HST a few weeks later. Now we find out that three days after the election, bureaucrats under this minister's authority were negotiating on the HST. That's what is called a contradiction, and some would actually call that a deceit.

Mr. Speaker: Member.

Interjections.

Mr. Speaker: Members.

Member, would you withdraw that last comment, please.

D. Donaldson: I withdraw, hon. Speaker.

Mr. Speaker: Continue.

D. Donaldson: It's been nine months now, and the Finance Minister says he wants to send information out to British Columbians telling them they're wrong to oppose the HST.

To the Minister of Finance: how much is this mailout campaign going to cost taxpayers, the same taxpayers who overwhelmingly oppose the HST?

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Hon. C. Hansen: The member's allegation that somehow negotiations were taking place is absolutely wrong. The first time that we engaged with the federal government on any negotiations regarding the harmonized sales tax was in June of last year.

This member talks about the facts. Yesterday we exposed the fact that on the NDP website there was blatant misinformation that they were providing to the public about the HST. Lo and behold, guess what. We wake up this morning and find out that they actually removed at least one of the pieces of blatant misinformation.

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I challenge the deputy Finance critic to actually instruct their people at party headquarters to go through and remove the rest of the misinformation that's on the NDP website.

We also know that this is a member who is actually one of the 18 NDP MLAs who has jumped into bed with Bill Vander Zalm on his campaign. Now, I would like to know from this member: is he endorsing everything that Bill Vander Zalm is saying on their website? I challenge that member to stand up and disassociate himself from Bill Vander Zalm's campaign and the blatant, gross misinformation that Bill Vander Zalm and his crew are posting on the internet.

Interjections.

Mr. Speaker: Members.

The member has a supplemental.

D. Donaldson: In the spirit of transparency, then, I say to the Minister of Finance: will he…? I challenge him to reveal all the conversations and the documents that took place three days after the election between his ministry officials and the Department of Finance in Ottawa. Will you do that? I challenge you to do that today, to admit and to table those documents, those conversations, anything that happened around that day.

Yesterday the Minister of Finance confirmed the government is going to be mailing out material to British Columbians about the harmonized sales tax. What steps is the Minister of Finance taking to ensure these materials will abide by the Election Act? Has the Finance Minister gotten all the materials approved by Elections B.C., or does he figure he'll just send out the material without Elections B.C. oversight and continue this government's pattern of deceit around the HST?

Hon. C. Hansen: First of all, we will definitely make sure that all of our communications are in compliance with the rules of Elections B.C. But I challenge this member to ensure that their information that they are putting out is factual. I challenge them to actually go in and look at the NDP website. Not only have 18 of them jumped into bed with Bill Vander Zalm, but they've actually got a link on the NDP website to take them to Bill Vander Zalm's site, which is full of blatant factual misinformation. I challenge the member to correct….

We will continue to put out information. I encourage the member to go to the government website in terms of the information on HST. It will correct a lot of the misinformation that they are putting out and fearmongering around British Columbia.

A. Dix: It's a very simple question to the Minister of Finance. He'll know that this month his colleague the Minister of Housing is cutting dental services for low-income kids. I'd like to ask the Minister of Finance — it's a very precise question — how much he plans to spend on this HST mailing.

Hon. C. Hansen: We are putting out factual information about the harmonized sales tax. We will put out factual information about the budget, as we do every year, and the harmonized sales tax is an important part of that. As part of public accounts, all of that information gets disclosed.

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Mr. Speaker: The member has a supplemental.

A. Dix: It's a very simple question, and the minister can dodge and dodge and dodge, but it's a very simple question. How much is he planning to spend on this HST mailing?

S. Simpson: This is a question of transparency and accountability. This minister is going to put this information out to the public. They have a right to know what it's costing them. How much will it cost for the material the minister intends to put out?

Hon. C. Hansen: Maybe the member should actually ask his colleague from Delta North how much of taxpayers' money it cost to put out a brochure that had blatant misinformation in it. I can guarantee this member that the information that we put out will be factual, and it will ensure that it's in compliance with the B.C. election laws. We will push back on the misinformation that the NDP are spreading.

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Mr. Speaker: The member has a supplemental.

S. Simpson: This is about the government and this minister spending the taxpayers' money — taxpayers who despise this tax, who hate this tax and want it gone. The question is a simple one. How much does this minister and the B.C. Liberal government intend to spend on this brochure and government propaganda?

Hon. C. Hansen: Most years over the last number of years we've put out information about budgets, whether it was Budget 2006, Budget 2008. This year will be no exception, and we will not be spending any more this year on putting out that information as we would do in a normal year.

J. Horgan: I'm sure that the minister and his colleagues are well aware of an initiative campaign that's underway at this point in time. At no time did anyone sign on with Elections B.C. to oppose that initiative, but today we learn that the Minister of Finance is using public money to try and distort the outcome of an initiative campaign. What steps has he taken to inform Elections B.C. of his desire to thwart the initiative process?

Hon. C. Hansen: I've said earlier, and I'll say it again. We will make sure that all of our communication that goes out is totally in compliance with the B.C. election laws.

Mr. Speaker: The member has a supplemental.

J. Horgan: Again, it's as simple as all of the other questions. How much is the minister going to pay of public dollars to thwart an initiative campaign by the citizens of British Columbia? How much is it going to cost?

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Hon. C. Hansen: When I go onto a website that the NDP are endorsing, and I see the kind of blatant factual error and blatant, deliberate misinformation that is being put out by Bill Vander Zalm, saying things — for example, that bus fares are going to be an additional 7 percent more expensive, that music lessons are going to be 7 percent more expensive, that rents and strata fees will be 7 percent more expensive, that car repairs and maintenance will be 7 percent more expensive, that legal fees will be 7 percent more expensive….

All of those are factually incorrect. They are wrong. They are misleading. They are fearmongering. We will take steps to push back on that kind of blatant false information that is being put out by people around British Columbia, including the New Democratic Party.

D. Black: The only misrepresentation there's been is the misrepresentation in the B.C. Liberal election platform that said they would not bring in the HST.

My question is a very simple one. I want to ask: will the minister report to Elections B.C. how much this propaganda is going to cost before he sends it out?

Hon. C. Hansen: I've said it before. I will say it again. We will ensure that all of the communications material is totally in compliance with the Elections Act.

Interjections.

Mr. Speaker: Members.

Just take your seat for a second.

Continue, Minister.

Hon. C. Hansen: I think that we need to ask 18 members of the official opposition why they signed on as canvassers. I think somebody should ask them: is it because they are simply trying to collect names and data that they're going to use to fight an election three years from now? What we see are 18 members of the official opposition using their positions as MLAs to collect data on citizens in British Columbia. I think they need to stand up and come clean on what their real motives are.

R. Fleming: The Minister of Finance has to know how much he intends to spend on pro-HST propaganda. The question for him is: will he tell the House here today how much it will cost, and will he tell Elections B.C. officials exactly how much it will cost the taxpayers of British Columbia to receive pro-HST propaganda on their doorstep?

Hon. C. Hansen: What's pretty obvious to me is that the members of the official opposition are afraid of the facts. I think they're actually afraid of the fact that there are millions of British Columbians who have been fed the blatant misinformation that they are spreading around the province.

I can guarantee the member one thing — that those British Columbians, when they realize that the NDP have misled them in terms of information about the harmonized sales tax, are going to be very, very, very bitter towards the New Democratic Party.

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J. Kwan: It is the B.C. Liberals who misled British Columbians on the HST.

The minister knows exactly how much it is going to cost taxpayers to send out this information about the HST from his ministry. Why won't he tell British Columbians the truth now? How much will it cost them for this mailout?

Hon. C. Hansen: It's interesting that the member should talk about the truth, because she should look at her own NDP website. She should actually look at the

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website that's being endorsed by the NDP, which is Bill Vander Zalm's website, and go in there and see how much truth you find in there. The information that's in there is blatantly misleading. It is misinformation. It is false.

I challenge this member and the rest of her colleagues to disassociate themselves from the blatant misinformation that Bill Vander Zalm has on their website.

HIGH SCHOOL CHILD CARE PROGRAMS

FOR STUDENT PARENTS

M. Elmore: The Minister of Children and Families has been denying the impact of her funding cuts to the high school day care programs at Options family child care and Higgins House. Having access to these programs changes the lives of these young moms.

Nineteen-year-old Karla Saachi said: "I had nothing. I had no family or friends for support, so I honestly thought I had no other chance at getting my education done. So it's a really great option for me." Nineteen-year-old Bailey Thiessen said that: "Without Options, I wouldn't finish high school this year." And 21-year-old Chantaya Roloson said: "A lot of our plans and dreams will be shattered."

The impact of this program for young mothers and their babies is clear. Will the minister commit today to fully restore funding to these programs?

Hon. M. Polak: I'm happy to inform the member there have been no cuts to child care spaces in British Columbia anywhere this year. In fact, at both Artemis and Higgins House….

Interjections.

Mr. Speaker: Minister. Minister, just take your seat for a second.

Continue, Minister.

Hon. M. Polak: At Artemis and Higgins House, the funding for the day care spaces remains entirely in place, and the young ladies who attend at both of those facilities are provided with an enhanced subsidy that amounts to approximately $100 more than most parents would receive.

M. Karagianis: The Minister of Children and Families continues to deny the impact of her cuts on these day care services, but in fact, both of these day care services are shutting down. The minister has sent a letter just this week to the Options day care program basically saying that they will make sure that the funding is in place just till the end of the school year.

So the minister knows better on this. Higgins has already given notice to all of their young moms that as of June this program will no longer offer day care. Her cuts have shut down day care to teenage mothers. It doesn't matter how many ways she tries to deny it. That is the fact on the ground right now for these teenaged mothers.

I am asking the minister to do the right thing and reinstate the funding so these teenage mothers can continue to get their education and find the jobs and raise their kids and have the opportunities that they deserve.

[1425]

Hon. M. Polak: Again, the member is entirely wrong. There has been no change in the funding for the day care spaces at Artemis and Higgins House. There is absolutely no reason why the day cares at Artemis or Higgins House should be closing. The funding for their day care spaces remains in place and has not been changed, including an additional $100 monthly subsidy for the young moms in those programs.

[End of question period.]

Tabling Documents

Hon. M. Coell: I'd like to table the 2009 annual report and 2010-2012 service plan for WorkSafe B.C.

Hon. B. Penner: It turns out that I do, in fact, have a report I'd like to table — the 2008-2009 annual report of the Environmental Appeal Board.

Orders of the Day

Hon. M. de Jong: In Committee A, I call Committee of Supply — for the information of members, the ongoing estimates of the Ministry of Housing — and, in this chamber, continued second reading debate on Bill 9.

Second Reading of Bills

Bill 9 — Consumption Tax Rebate

and Transition Act

(continued)

J. Kwan: Well, we just finished question period, and as it would have things proceed, we were talking about the HST. So we're now into the full debate on the HST.

[L. Reid in the chair.]

I'd like to just visit a couple of things about this whole story. It reminds me, actually, of when I was a kid. You know how your parents tell you to always tell the truth, because if you make up a story along the way, then down the road you will be caught up in a situation where that very story will unravel before your very eyes. You won't

[ Page 4385 ]

be able to keep up and keep straight what is factual information and what is fabricated information.

That's actually a well-learned lesson, I should say, that we in our family — the kids, the six of us — took to heart. You carry that kind of information — or instruction, if you will — from your parents all the way into adulthood. Here we are in the Legislature today, and let's just visit for a moment the government's whole HST spin.

I would argue that the story that the government is spinning around the HST is unravelling before their very eyes. We have a B.C. Liberal Party who, before the election, said that they would not bring in the HST. They swore up and down and made these promises to people in the industry that they would not bring in the HST. Little did British Columbians know that after the election the government is bringing in the HST.

Hence, we're in this debate right now, and hence, the majority of question period questions for today — not just today but previously as well. I would expect that the HST debate is going to dominate this House for the better part of the month, if not longer — that is, of course, if the government brings in closure on this debate. If the government embarks on that road, then of course, they will attempt to shut down that debate.

We'll recall that the Liberal government said that they won't bring in the HST — the Liberal Party. After the election they brought in the HST. We recall their claim that they needed to bring in the HST because it was good for the economy. Then, supposedly, there were all sorts of studies done about the HST — that they have been studying it all along, so the minister says. He said it today in question period.

[1430]

Yeah, it is true that they've been studying it all along, and all along the government's position had been a no to the HST. That only changed after the election when the government finally told British Columbians what they were up to, that they had changed their story.

Now we have the Minister of Finance, who says we need to do the HST because it's good for the economy, notwithstanding the fact that the HST would cost jobs and income in a variety of different sectors in the economy. In the area of the service industry, take for example the Restaurant and Foodservices Association. They've been on the record to say that the HST will cost that industry jobs.

In fact, they said that the HST would cost some $750 million to that industry. That would be an average of $50,000 per restaurant. That's what they said in terms of the information that they had put out regarding the HST. These are real numbers, because they actually did an analysis on it, unlike the Minister of Finance or the Minister of Small Business who I believe has not actually done the study related to that sector in terms of the impacts.

The industry went on to say that adding this tax at this time — at a time of recession, if you will, where the economy is weak — is going to cost even more in the long run for the provincial coffers. If consumers are not going out to the restaurants to spend their dollars in the sector, it's going to hurt the businesses, it's going to hurt the workers, it's going to hurt the community and ultimately it would hurt the provincial economy.

The vast majority of restaurant owners, some 91 percent, say the HST in B.C. will have a negative impact on their business. According to a survey of the Canadian Restaurant and Foodservices Association, where they have 4,000 members, 85 percent of those who responded to their survey said the HST will have a significant negative impact, and 6 percent said that it would have a slightly negative impact. Only 9 percent who responded said that it would have no impact at all.

Adding a 7 percent PST onto the 5 percent GST will more than double the sales tax on restaurant meals. That would result in a dramatic decrease in consumer spending on eating out. The restaurant associations say that restaurants are at the heart of every community in B.C., an important employer for people of all ages and walks of life.

The HST announcement has created a great deal of uncertainty for their members. It is clear that they're deeply concerned about the damage the HST will do to their business and that they'll be looking to the government and the federal government to "fix this major tax shift onto the restaurant sector." This is actually a direct quote from a press release sent out by the association.

They are very worried about this, to the point where they actually launched a campaign to say: "No HST on the food and restaurant services industry." The industry even sent out a letter at the end of 2009 urging politicians to withhold support for the HST.

They also say that an Ernst and Young report attributed some 75 percent of the sales decline to the impact of the GST and that by way of contrast, GDP the same year fell by 2 percent. By making the political decision to deviate from a pure value-added tax, the government has done significant harm to restaurants across the country.

[1435]

Pursuing harmonization in B.C., where there is no tax on restaurant meals, makes matters worse. That's what they have to say. And while capital-intensive industries will benefit from the input tax credits under the GST, restaurants will not, because their largest input costs are labour and food. That means there will be a significant tax shift towards the industry with almost no tax break to compensate for it.

I have more to say about that. I'm going to yield the floor to my colleague, who's going to make an introduction.

Deputy Speaker: Surrey–Green Timbers seeks leave to make an introduction.

Leave granted.

[ Page 4386 ]

Introductions by Members

S. Hammell: Visiting the House are 45 students from Cindrich Elementary. They are with their teacher Jas Shahi and some parents, I'm sure. I met them prior to them attending here. I wanted to make sure they actually could see the chamber and see the excitement and drama of our work here. Would the House please them welcome.

Debate Continued

J. Kwan: For the service sector industry, such as the food services industry, such as those from the tourism industry where most of their business is on labour costs, from that perspective, the input tax credit would not help them, because those labour costs would not be something that they could claim the input tax credits back on. But yet that industry would be faced with this tax — a new tax being imposed for that sector, which they have never seen before.

What does that mean? It means that consumers would have to pay more, and if consumers can't afford to pay more, it means that that sector is going to get hurt in terms of their economy. It is that simple. I have to say the Minister of Small Business particularly would not even acknowledge such basic information put forward by the sector themselves — wouldn't even acknowledge it — and just sort of goes on to spin the government spin from the public affairs bureau on the information about the HST, how it is wonderful for everyone.

Well, I have to say this. If it was so wonderful, why didn't the B.C. Liberals tell British Columbians that they were going to bring in the HST during the campaign? Why didn't they tell British Columbians that? Why didn't they make that as their major economic plank during the election campaign?

No, instead of doing that, instead of putting it up front with British Columbians, they hid it. They wouldn't tell British Columbians. They misled British Columbians.

After the election, lo and behold, guess what. "Oh, but this is really good for the economy. We really, really, really have to do it" — notwithstanding right at that time when the government announced it, they didn't even have one study they could show for it. They didn't have one study that they had done to say how supposedly great the HST is for the B.C. economy. I mean, it is interesting to note why the government wouldn't come clean and tell British Columbians that information.

Then of course, when we had the budget that came down, we had the Minister of Finance say, "Oh, but British Columbians, you must know that the health care costs are costing us an arm and a leg, and we have to pay for it somehow, so the HST is going to do that" — notwithstanding that the Minister of Finance, prior to that day, had gotten up and said on the public record that the HST was supposedly revenue-neutral.

Now, if it's supposed to be revenue-neutral, how is this supposed to pay for health care costs? It doesn't add up. It doesn't add up with the storyline that the Minister of Finance is putting out to British Columbians.

Of course, we now hear from other ministers who say: "But the HST is good for forestry." I'm sure the government will keep on spinning this and keep on spinning it until British Columbians vote on this issue and say they've had enough. Overwhelmingly, British Columbians say that they don't support the HST. The government did no consultation with British Columbians on this question prior to bringing this in.

[1440]

In fact, the president of Vancouver-Fraserview riding association for the Liberal Party actually said on the public record that this government does not have the mandate to bring in the HST with no consultation. That's not coming from New Democrats. That's coming from one of their own, who actually says that they don't have the mandate to bring in the HST, given the circumstances in which this government is thrusting it upon British Columbians.

Today we learned that there appears to be documentation to show that ministry staff had contacted the federal Department of Finance tax officials on May 15, just days after the election, about an information request regarding the HST. Interesting. The Minister of Finance says, though, that he didn't direct the staff to go and get that information — that somehow ministry staff went on their own.

It is astounding to follow the logic that somehow ministry staff would go and do this work without direction from their bosses. Where did it come from? Did that just come from thin air, or did it come from the place where the government is faced with a huge deficit — a deficit that is seven times more than what they said it was during the election campaign?

In the face of that huge deficit, the government would do just about anything to make good on their deficit projections that they told British Columbians before the election. In an attempt to do that, isn't it the case that it was the government who then said: "Oh, if we sign on to the HST, we could get money from the federal government"? Some people call that blood money — $1.6 billion from the federal government. That will perhaps fill the hole in the big, gigantic deficit that the government find themselves in with regard to the budget.

So then we're down the road of trying to get this blood money. Supposedly, according to the Minister of Finance, that conversation took place only much after the election, towards the end of May, by a water cooler with the federal Minister of Finance.

I mean, it's kind of incredible — don't you think? — that somehow a major tax policy change in the province

[ Page 4387 ]

of British Columbia would take place in a casual conversation between the Minister of Finance from B.C. and the federal Minister of Finance at a water cooler. Really? Is it that unimportant for the government in terms of this major taxation change in taxation policy for B.C. for it to take place in a casual conversation by a water cooler? Or was there some other planning that was done before?

Really, would you accept this explanation, Madam Speaker, if you were a CEO of a company? If you were a CEO of a company that's about to embark on a major policy change for your company in its revenue stream and how you collect that revenue, would you leave it to your staff somewhere, without direction, to go and seek information and engage in discussions about that without your direction or knowledge base? Would you do that as a head of a company, as a shareholder of that company? Would you do that? I think not. If you did, I'd be astounded, and I would argue that that's not exactly competent management of your company.

Yet the Minister of Finance would have British Columbians believe exactly that — that he did not tell his staff to go and engage in discussions with the federal officials on this major taxation shift, that he did not give that direction, that somehow the staff went off and did it on their own and that he knew nothing about it. He didn't direct it, and he knew nothing about it.

[1445]

Well, if that is the case, then I've got to say that is incompetence at its maximum. It is astounding to learn that that is how the Minister of Finance is managing our revenue streams in British Columbia.

The HST is going to hit British Columbians in an unprecedented way. It is a $1.9 billion tax shift onto the consumers of B.C., and it is going to hit British Columbians pretty well every single day on their purchases of goods and services. From the moment they get up in the morning and go into their local coffee shop to buy a cup of coffee, they are going to see a 7 percent hit to their pocketbook. Going out to eat lunch in the afternoon, they're going to see a 7 percent hit to their pocketbook. Getting a movie perhaps after work to relax a little bit or maybe to go on a date — that's going to be another 7 percent hit.

The consumers are going to be hit if they want to go and do things that you normally would do. I just went and got my hair done last week when the House was out. It seemed like the only time I could do it, and after July 1 it's going to cost me another 7 percent more to get my hair done.

For those people who are on a tight income, that may impact how many times they may actually go and see a hairdresser. That's actually important for British Columbians. We all know — I know and you know — that after you've gone to get your hair done, it feels good because they make you look good. You feel good about yourself, and it makes a difference.

But for people with incomes that are tight, where there's a 7 percent impact for them — seniors on a fixed income, for example — this may well reduce the amount of times that they could actually go and get their hair done. Maybe you think that's kind of frivolous, but I think not. It's about our own well-being, about who we are.

Then let's talk about another area where it's going to hit people in their pocketbooks. We have students today visiting the Legislature from different schools. Many MLAs got up to introduce and welcome the students from their riding. Well, come next September, those students and families, when they go out and get ready for school and get their school supplies…. Guess what. They're going to have to pay 7 percent more.

I would argue that school supplies would be a necessity for students in our educational system. Families on a fixed income who have more than one child would feel the squeeze because every single little thing in terms of goods and services that they didn't have to pay the PST on before, they will now have to see a 7 percent increase in taxes for those services.

Just two days ago we had people from the funeral services industry coming forward to say that in death, families will now see a 7 percent increase in taxes while they are grieving. Think about it. It turns out that the party that brought in the death tax would be the B.C. Liberals, not like the smear campaign information that was put forward in the Fraserview campaign, alleging that the NDP would bring in a death tax. It turns out it's the B.C. Liberals who would bring in a death tax in the name of the HST.

Those families are going to be hit hard. It isn't cheap. I was looking at the information that's put forward by that industry. When you go through the funeral services, it's not cheap. The costs add up, perhaps sometimes for some families at an unexpected period of time. That happens, unfortunately, in people's lives, and then in the midst of trying to cope with all of that, they have to deal with the financial end of things as well. Then they're going to have to dig deeper into their pockets, perhaps dollars that they don't have at the ready.

[1450]

So the death tax is actually brought in by the B.C. Liberals, but that's not the only thing. The other thing is that in mutual funds savings, those services will now also face a 7 percent increase in taxes by this government. So the government will tax you in death, but it will tax you when you are alive with your own savings as well. That's this government's doing. It's this Liberal government's doing that is off-loading these costs onto the consumers.

Just when you think you can escape the HST by going off on vacation…. You think, "Oh, I've got to get away from all of this for a bit," you know, and you want to travel. Guess what. The tourism industry people and

[ Page 4388 ]

tourism operators have already said that the HST will impact them as well their business.

At a time when we want to attract people to British Columbia and expand on our tourism opportunities, we actually have this additional taxation that's going to cost that industry. Just when you think you can get away from it all, little did you know that you're going to have to pay out of pocket for that as well through the HST. So you can't get away from it no matter what.

Day in, day out, from dawn to dusk, you are going to be faced with this tax. There's no escaping it — unless, of course, the government listens to the opposition. Unless, of course, the government actually listens to their constituents. Unless, of course, the MLAs around this House on the government side have enough courage to represent their own community and their own constituents and come into this House and say no to the HST.

I challenge each and every one of the government MLAs to go out and talk to their constituents about this tax and truly reflect what they tell them about how they feel about the HST. Some 80 percent, over 80 percent, of British Columbians are opposed to the HST. Make no mistake about it. They're not all in New Democrat ridings. They are all over the province of British Columbia. If any of the Liberal MLAs have got courage, they will stand up in this House and represent their constituents on this issue.

I know that in the city of Richmond, which I travel to from time to time — I shop there quite often; I eat there quite often; they have fabulous food — the restaurant owners and the shop owners tell me all the time about the HST and how it would hurt them. The folks in that neighbourhood say that they don't want to support the HST. Overwhelmingly, the community comes forward and tells me that they don't support the HST.

I challenge the Liberal Richmond MLAs to stand up and reflect those restaurant owners, those business owners, and to reflect those constituents — their points of view, what they have told me when I go to visit Richmond. I challenge them to come into this House to represent them on that view around the HST. We live in a democratic society. After all, people elect us to represent them, to bring their voices into this Legislature.

I would argue that MLAs have an obligation to do exactly that, and I would challenge the Richmond MLAs to do exactly that. Go to your local restaurant and ask the patrons there how they feel about the HST. Go to the local mall — Aberdeen Centre, Parker Place, any one of those major malls that sell all kinds of goods and services and foods and things like that — and ask the people who frequent those malls whether or not they support the HST.

I would say that you would then have a full sense of how the people in our communities feel about the HST. The truth is they don't want it. No matter how the Minister of Finance tries to dress it up and how he says that it's great for British Columbians, the truth is that nobody is buying it. Nobody is buying it.

[1455]

So instead of working overtime in creating mailouts, having the ministry spend money — taxpayers' money — in creating mailouts and sending them out to British Columbians to convince them how the HST is really good for them, how about actually owning up to the fact that the B.C. Liberals misled British Columbians, that they were wrong in bringing in the HST, that they would be prepared to listen to British Columbians, that they would stop this charade, that they will ensure that MLAs come into this House and that there would be a free vote on the HST.

I challenge the government. I challenge the Minister of Finance, the Premier and the executive council to let the Liberal MLAs have a free vote on the HST. Let them represent their constituents about the HST, and let democracy take its place in this very chamber on this major tax policy that the government is shoving down the throats of British Columbians.

S. Hammell: I ask leave to make an introduction.

Leave granted.

Introductions by Members

S. Hammell: This is the second and third class from Cindrich Elementary who have come here to share our experience in the House and to learn a little bit about democracy. With them are Ms. Gill and Ms. Milliken.

Just a note about Ms. Milliken. She is a cousin of the Speaker of the House of Commons, Speaker Milliken. That makes it very interesting for me in meeting her, and the kids have a very special person with a very special connection. Would the House please make these wonderful kids from Cindrich Elementary welcome.

Debate Continued

Hon. B. Bennett: This debate over the merits of the harmonized sales tax, I figure, today provides me with an opportunity to have a discussion here in the House about the tax policies of this government and the tax policies of the opposition — sort of a comparative analysis, you might say.

The opposition would like the public to believe that they are a credible choice for government in 2013. They're making lots of noises about the government's tax policy choices, and that's fair enough. That's what they do in opposition. So in providing my reasons for supporting Bill 9 here today, I would like to present a comparison of the tax policies of this government with the NDP policies of the 1990s and also statements made much more recently than that. Then the pub-

[ Page 4389 ]

lic will come to terms with who has the credibility in terms of tax matters.

I think everyone would agree here, both sides of the House, that there is a fundamental difference in rural view between the two political parties on how tax policy should be used. Frankly, I don't doubt the sincerity of the opposition when they express their beliefs. I just think that they're wrong.

I want to tell the House a short story, and it's a true story, just to illustrate the NDP approach to tax policy. For decades, as a matter of course, British Columbia trappers made use of dead wildlife found at the side of the road. However, in September of 2000 the parsimonious government of the day imposed the nefarious tariff charged on this benign and functional rural practice, and of course, it became known as the dreaded roadkill tax. A dead elk or a moose cost $71; a deer or a black bear, $61; a red-tailed hawk, $65; a dead bison, $116; and any species not listed, $25.

Presumably, if you found a dead or mortally wounded mouse and you wanted to take it home and feed it to your cat, you would be required to travel to the nearest government office, fill out the forms, pay your $25 and quickly journey home to satiate your eagerly waiting carnivorous kitty. Of course, you could stop and buy a $10 bag of cat food if you wanted to.

Trappers back in that year of 2000, not being intimate with the infinite ingenuity of the NDP in the field of taxes, fees and permits, could not cognize the government's logic, nor could they see the sanity of this particular regulatory endeavour, the roadkill tax. One of B.C.'s most distinguished journalists, Mr. Leyne, wrote at the time: "Is this proud province in such reduced circumstances that government inspectors have to roam the roadside ditches looking for people who are looking for roadkill in order to levy a tax on them?"

[1500]

I'm exceedingly proud that this government cast off the shackles from our enterprising and industrious trappers. Trappers today can avail themselves, without cost, of the spoils of highway carnage, which no doubt have been compounded as a result of the much stronger economy over the past nine years, and the increased movement of goods and services.

Of course, that little story doesn't quite measure up to the same scale as getting rid of the corporate capital tax, but I must say that at the time, I did rejoice on behalf of all free trappers across this great fur-bearing province.

Now, I've said that the NDP on this side have diametrically opposite views of how to use tax policy in B.C. That's certainly one example of how in the 1990s the NDP…. I know they don't like to talk about it, but when they had the opportunity, that was one of their ideas for tax policies.

In the '90s they showed that another idea they had for the economy around taxes was to provide subsidies instead of tax relief for businesses, even though they knew that that wouldn't work. How do I know that they knew that? Well, actually, they said so.

The former member for Nelson-Creston said: "In our hysteria to deal with the recession, we tried to bribe capital into saving us, but it didn't work. It didn't work with the aluminum smelters. It didn't work with the jobs and timber accord. It didn't work with the fast ferries that we thought we could sell to the world. It didn't work with the amusement park on Burns Bog. It didn't work with the trade and convention centre in Vancouver. So why didn't we admit it? Because we were afraid to tell the truth." The member for Nelson-Creston in November 1999. God bless Corky Evans. I wish he was still here.

Now, while we believe that government should use tax policy to provide incentives to help families in this province with good jobs — that's the way we see tax policy on this side of the House — the opposition believes that tax policy has the narrow purpose of simply collecting whatever money they feel is required to pay for the many program ideas that they have. In particular, the NDP apparently does not believe that tax policy, whether it's HST or some other tax, can be useful in creating a more competitive, more attractive investment climate in which the likelihood of jobs is increased.

I came across something said quite recently by the Leader of the Opposition on CKNW radio that pretty much sums up the NDP position, I think, on tax policy. This is from December 2009, from the opposition leader: "There's absolutely no tie between the tax breaks business gets and creating jobs here in British Columbia."

That's what she said, and she's certainly entitled to her opinion, but we don't agree with it. Basically, I'm not sure how you can sustain a position of saying that there is no connection between lowering the taxes of an employer and that employer's disposition towards further investment in job creation. It isn't logical and doesn't stand up to the evidence.

Let me say for all members to hear, hon. Speaker, that this government does believe wholeheartedly that reducing the taxes of business will encourage business to reinvest in their businesses — large, medium-sized and small — and will encourage them to hire more people. This is a defining difference between the NDP and this government.

Again, I do support the opposition's right to be wrong. In fact, I encourage it. As long as the NDP believe that tax relief has no positive impact on the economy or people's lives, I suppose I'm likely to be able to continue to serve the good people of Kootenay East.

This government over the past nine years has made over 100 different tax reductions — 120, to be precise — leaving more money in people's pockets and restoring our economic competitiveness. We have, as many

[ Page 4390 ]

members from this side of the House have noted — and I think, it bears repeating; in fact, I don't think we can say this often enough — the lowest personal provincial income taxes in the country for people earning up to $118,000. That matters to people. It leaves them with more money in their pockets.

An additional 325,000 low-income earners today don't pay any provincial income tax, with most British Columbians now paying between 30 and 75 percent less in taxes than they did in 2001.

[1505]

Now, over this past nine years, as we introduced those 120 different measures of tax relief, the NDP voted against every single one of them, apparently believing that the taxpayers' capacity to pay is infinite and apparently believing that there was no public policy value in reducing taxes for anyone, the individual or the business.

Again, the Leader of the Opposition, who I presume speaks for the opposition, said not too long ago: "It doesn't work to make tax cuts." There again, the NDP is entitled to its opinion. On this side of the House, we believe in putting money where it belongs, and that's back in the pockets of the people who earned it. We know for sure that those people know how to spend their money better than government does. That's another defining difference between this side of the House and the other side of the House.

Our tax relief measures for business. We cut corporate income taxes by 39 percent, small business taxes by 44 percent. Corporate and small business taxes here in British Columbia will be the lowest in the G7 by 2012. That's stimulated economic growth. It's helped the province create hundreds of thousands of new, high-paying jobs in this province over the past nine years. So it does work despite what the Leader of the Opposition has to say.

Now, the NDP often claim that they believe in higher taxes because they care more about British Columbians, and I think all of us on this side of the House have come to recognize that familiar refrain from the left side of the House — that when they can't win that substantive policy argument, they'll fall back to that comfortable place they like to go. They'll say: "We care more than those dastardly B.C. Liberals." I've heard them say that so many times over my nine years. It just seems to be a mantra.

This government has provided the lowest personal income taxes for individual taxpayers on income up to $118,000 — the second-lowest top marginal rate in the country. I'm thinking — I could be wrong about this — that British Columbians figure that any government who would take less of their hard-earned paycheque must care about them. I'm pretty sure about that. Those 325,000 low-income British Columbians who now pay no provincial income tax must be certain that this government cares about them.

I would imagine they're quite fearful of the NDP, because the NDP voted against those government tax policies. When the NDP had the opportunity to say, "Yes, we want there to be 325,000 low-income people in this province who pay no provincial income tax," the NDP stood up, and they said: "No. We don't agree with that. We're voting against that." Interesting.

In the recent budget debate the NDP spoke against tax policy that increased the basic personal amount of the tax credit by almost $9,000 from $1,627 to $11,000. We also increased the spouse and equivalent-to-spouse credits by $1,627, and they voted against that as well. They spoke against it.

So let's face it, hon. Speaker, the NDP have absolutely no credibility in their ill-informed opinions about the harmonized sales tax or any other tax policy, because when they had their chance in government, they raised all taxes. They took more money from the pockets of hard-working British Columbians, and they destroyed the British Columbia economy.

Maybe there are folks who think the NDP have turned over a new leaf. Here's what the opposition leader said at the 2009 UBCM convention in September. She called for $150 million in new corporate income taxes on business and rural industries.

I would point out that I'm a rural guy, just as some of the other folks are on the other side. The other side often talks about rural British Columbia, and I'm glad that they do that. But these industries that the opposition leader wants to tax, wants to levy $150 million more tax on, are located where we live. They're located in Golden, Cranbrook, Williams Lake and Terrace.

I don't understand how the NDP can sustain that position. They actually want to hurt the industries that employ the people in rural British Columbia, and frankly, if the NDP gets its way, B.C. will be paying the highest taxes again in North America, just like they did in the 1990s.

So what about the harmonized sales tax? Well, on this side of the House we're taking lots of heat for this, and that's fine. We've made some tough decisions over the past nine years, and we'll have to make some more tough decisions. Those who are new to politics will learn that sometimes you do have to make difficult decisions.

[1510]

I remember in the first term. I know we had to close a hospital in Kimberley, and we closed the hospital in Sparwood — very, very difficult decisions. But we ended up with a much, much higher level of care, especially specialist care and acute care for the people of our region.

Mind you, hon. Speaker, the opposition members know a lot more about this than the physicians do. I'm sure of that. The physicians say that the level of care we receive in Kootenay East today is far superior to the level of care we received when the NDP was running the province. But of course, we know that those opposition

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members know a lot more about health care than those physicians. Sure we do.

The harmonized sales tax eliminates embedded taxes along the value chain and replaces it with a single tax. Certainly, the opposition doesn't get it. Frankly, I think some of my constituents probably do not get it yet. I think they will, and the piper is going to be paid on this. I think the opposition is going to discover that when the public does learn how this value-added tax actually applies.

The HST is going to keep B.C. competitive in jurisdictions in Canada and also globally. That's why we're doing it. Seven of ten provinces have or are moving to value-added tax. We're the seventh, and between us and the other six provinces, that will cover over 90 percent of Canada's population.

We've also got 130 countries, including 29 of the 30 OECD countries, that have moved to a value-added tax. We're certainly not creating any precedents here. We're not going where no jurisdiction has gone before. There are many, many modern jurisdictions in the West that have gone to a value-added tax.

This move, this adoption of harmonized sales tax, will move B.C.'s marginal effective tax rate by 40 percent. That will move us below Ontario, and it will move us below Alberta. It will give us in this province the second-lowest overall tax burden in the whole country by moving to HST. The NDP are opposed to that, and they're getting away with it today. But they're not going to get away with it much longer.

The HST reduces costs on investment and compliance by over $2 billion a year. That is not what we're saying; that's what economists are saying. Almost $2 billion in taxes will be removed from business inputs, and that includes $880 million from construction. That includes $140 million from manufacturing, $210 million from transportation, $140 million from forestry, $80 million from mining and oil and gas.

Where I come from, our economy depends on essentially mining, forestry and tourism. There are other types of economic activity, but those are the three main sources of economic activity. Our forestry mills are struggling because of the price of softwood and the value of the Canadian dollar. Everything that government can do to help make those companies more sustainable — help them make the decision to keep the doors open and keep families sustained by that industry, keep people working — we should do.

We have a moral obligation to help those industries, and of course, adopting the harmonized sales tax…. In the case of the major forest company in my riding, they have said it will save them hundreds of thousands of dollars every single year. So that makes it a lot easier for them to decide to keep their doors open. That reduces input costs, and that's going to save consumers money.

We're going to have to wait to see that play out, but in Atlantic Canada they found that when HST was introduced, very shortly thereafter — the first year, in fact — prices went down. Interesting. International studies show that countries without the value-added tax have higher prices. That also is interesting.

The HST will bring in new resources for government to invest in programs while reducing the prospect of future debt or tax increases. We're going to get and have started to receive $1.6 billion in federal transition payments for joining on with the other six provinces in the country that are already there.

The opposition leader has said that she would give back that $1.6 billion. Presumably, that would jack up our deficit and our debt. I'm not sure where she would find that $1.6 billion unless, of course, she wanted to raise taxes, which is certainly what they have done in the past.

[1515]

There's a $30 million administrative savings to government that we can put back into services. I asked myself: $30 million? In Cranbrook that's a lot of money. In Victoria it should still be a lot of money. Maybe in the general scheme of things, $30 million isn't a lot to some people, but you can do a lot of good with $30 million. That $30 million is there for us to help British Columbians, and I think that's a good thing.

For consumers, we're going to provide exemptions and we're going to provide rebates. There are rebates on gasoline, books, children's clothes, car booster seats, diapers, feminine hygiene products. All of those will be exempt from the provincial portion of the tax. For low-income individuals, this is important. There are over a million British Columbians who are characterized under the definition that we currently have as low income. So 1.1 million people in this province will get a $230-a-year credit to help them with the costs of the harmonized sales tax.

New homes. There will be rebates up to $26,000. A full rebate on all residential energy use. There are a number of items.

I had a senior come into my office last Friday, a lady who has supported me in three successive elections, and she was very anxious, very worried. She had been to see Mr. Vander Zalm because she remembers him when he was the leader of the Socred party. She went to hear him, and she got very, very concerned with what she heard.

I took about 45 minutes and went through the various items that she had been told at this public meeting. The NDP was represented there. In fact, the fellow who ran against me in the last provincial campaign apparently organized the meeting. In any case, she was there with some of her friends, so she wanted to know the facts. She was worried.

She had been told that legal fees were going to be impacted by HST. She was told that physiotherapy was

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going to be impacted by HST. She was told that rents and strata fees, bus fares — all of those things — were going to be impacted by HST. So I told her they're not impacted, not at all. There's no cost to this senior. She's in her 80s.

There are people going around the province today deliberately trying to frighten that lady and deliberately trying to frighten other seniors — and for what? For political advantage. Shame. We can have a debate about the harmonized sales tax without people trying to frighten seniors in this province.

The proposed HST eliminates the duplication that we have in terms of our small businesses that have to record their sales and record the taxes paid. B.C.'s businesses, because of the elimination of this duplication with the PST and the GST, will save about $150 million a year in administrative costs.

Frankly, I don't think that everybody realizes that yet, and that's probably normal. This is a harmonized sales tax. It's a completely different concept from a cascading sales tax, like the one that we have today. It's going to take some time for people to actually experience that, "Oh, my goodness, I'm not spending as much time in the office looking after these two separate taxes, and I'm actually saving money from this," but they will. They will come to understand that over the next three years.

B.C. will have the lowest harmonized tax in Canada. That means that we will continue to be an attractive place for investment and a place where you can create long-term, stable employment. It also means that for more than 90 percent of the population in this country, B.C. will have the lowest HST rate.

The NDP are opposed to the HST, and they have every right to take that position, but this is what it means. In their opposition to the harmonized sales tax, what that really means is that they're against the most important step that we can take to improve British Columbia's economic competitiveness. That's what the economists have said.

[1520]

The Finance Minister has stood and said that multiple times in this House, and he gets heckled by the other side. The other side does this sort of fake laughter that they seem to be doing these days. Their House Leader must figure that's a good idea. They do all that sort of thing. But the economists, the vast majority of economists in the country, have said that this is going to improve B.C.'s economic competitiveness, and the NDP is opposed to that.

Now, their partner Mr. Vander Zalm — strange bedfellows, hon. Speaker — introduced or increased over a dozen taxes in nearly every budget he brought down that punished families and small business. He's the guy who introduced the property transfer tax. He's the guy that increased the small business tax to the highest level ever.

This is the guy, Mr. Vander Zalm, that the NDP wants the people of British Columbia to take tax advice from. We're expected to take advice on tax policy from a guy who was forced to resign from office in disgrace, paving the way for the disastrous NDP win in 1991 that drove B.C.'s economy from first to last in Canada, that raised taxes by over $2 billion in their first two years — $2 billion of increased taxes in their first two years — and drove tens of thousands of people out of the province. We're supposed to take tax advice from that guy — hmm.

When the NDP states their opposition to the HST, what they're really saying is that they're against job creation in the forest industry; they're against job creation in the mining industry; they are against job creation in the energy, construction and technology industries. Well, that's consistent. I will say that, hon. Speaker. They're wrong to be against the creation of new jobs. They don't understand how tax policy works; they never have. But at least I would say they're consistent, because their record has consistently been, from the time of Dave Barrett, to raise taxes, not lower them.

Actually, they ran in 1991, and their campaign commitment was: "No new taxes." Well, they raised taxes by $2 billion in their first two years. Under the NDP, B.C. had the highest marginal tax rates in Canada — the highest. We're now down to the second-lowest overall tax burden in the country. We've got the lowest personal income taxes and the second-lowest business taxes in the country. When they were in government, what did they do? When they had their chance, they had the highest taxes in the country.

They've never believed in tax relief, and now they pretend to be concerned about the harmonized sales tax. I just want folks to remember what they said. This is what the opposition leader said: "It doesn't work to make tax cuts." This is what she said in December of 2009: "There's absolutely no tie between the tax breaks business gets and creating jobs here in British Columbia."

Amazing in today's world that you would believe that, with all the evidence from places like Ireland and other jurisdictions across the world. I think my favourite quotation that really captures the essence of the NDP approach to tax policy is from the hon. member from the opposition who is from Nanaimo.

He said: "I haven't seen anyone die of overtaxation in this province." I like the hon. member. I would imagine he wishes he never had said that. Flippant. "I haven't seen anyone die of overtaxation in this province." Let's jack 'em up. That's what they did. That's what they would do again.

These are expressions of the NDP on tax policy. They don't understand how to use tax policy to help British Columbians. Tax policies can be used by governments to help people, to help create jobs, to give people what they want. They don't understand how to use tax policies.

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Hon. Speaker, I'll just close with that. Their record shows and their comments prove that they just don't get it.

[1525]

D. Black: I rise to convey the concerns of residents of New Westminster who, like most other British Columbians, the majority of British Columbians, will be negatively affected by Bill 9 if it becomes law — the Consumption Tax Rebate and Transition Act, as it's euphemistically called in this Legislature.

It's been said that the big three in life can be summed up as hatching, matching and dispatching — birth, marriage and death. Unfortunately, my New Westminster constituents will find all three to be more expensive, thanks to the proposed harmonized sales tax, or the HST. Yes, we will all be paying and paying again for everything from cribs to car seats to the wedding dress and the organist to funeral costs. These are hardly luxury items. Well, maybe some weddings do go a bit overboard, but most are quite modest, and families strive to stay within a budget and still create a special day.

As I heard at the HST forum I hosted in March, the HST will hit my constituents in the wallet day in and day out if it goes ahead. What is particularly galling to them is that the B.C. Liberals promised they wouldn't bring it in. They even put it in writing during the election campaign last year. The kindest

interpretation would be that they have short memories.

A more accurate

interpretation would be that if they had told the truth, they would not have formed government. How many people do you know who really would have voted Liberal if they knew they were looking at a $1.9 billion tax grab? The B.C. Liberals deceived the voters about the HST. They didn't consult with British Columbians, and they do not have a mandate to bring the HST in now.

I was pleased to see that more than a hundred people turned out to my forum on the HST. People of all ages, ethnic backgrounds and economic positions came together in New Westminster last month. Their goal, proudly stated, strongly stated by the people who turned out, was that they want to join with others to stop the implementation of the HST.

We heard that the HST will hit particularly hard in New Westminster because of the large number of small businesses that are located there. These businesses will have to charge 7 percent more for both goods and services, a charge that will, without question, be passed onto consumers. Most restaurants, for example, are small businesses, and the restaurant industry forecasts the HST will cost as many as 12,000 jobs across the province as well as $750 million in lost revenue.

[C. Trevena in the chair.]

Restaurant owner Jasbir Sandhu told my community forum that the tax will mean more expensive restaurant meals, lower food sales, lower tips and job losses. He agrees with Mark von Schellwitz, western vice-president of the Canadian Restaurant and Foodservices Association, who said recently: "As one casual diner said to us, it's tough enough now. But with the HST, when you sit down at a full-service restaurant, you know you're going to be paying 30 percent more, with the HST and a tip, before you even have anything to eat."

Next door to my constituency office is a friendly, family-run coffee shop. It's called the Coming Home Café. The owner has offered space on his patio for volunteer canvassers to collect signatures on the anti-HST initiative petition that's currently being circulated. He's a small business owner. He works hard and contributes to our community. He's involved in several community organizations, including the committee that's organizing New Westminster's first Pride Day on August 7.

He sees the HST as yet another assault from a government which favours big corporations and insiders to the detriment of average hard-working people like himself. Like many others in the restaurant industry, he's uncertain and worried about what the future will bring. He says that it took many years to recover from the impact of the GST, and the introduction of the HST will probably force more small businesses to close down.

At the same time, tourism leaders across the province are rejecting the government's claim that the HST will not mean an increase in the price of a hotel room. The tourism industry expects to lose up to 10,000 jobs and $545 million in lost revenue.

[1530]

Many of these jobs are minimum-wage jobs, and I don't need to remind you or other people in this Legislature that in British Columbia we have the lowest — the lowest — minimum wage in the country. Many of these minimum-wage jobs are held by young people who are supporting themselves while they're going to college or university or to get technology training.

Students who can't find jobs in the summer also face now having their student aid cut while tuition continues to rise in British Columbia at an alarming rate. The HST is yet another burden for our bright young leaders of tomorrow who are already struggling against many obstacles while they work to achieve their educational goals.

Tourism and restaurants are not the only businesses that will be negatively impacted by this tax. A recent

article in the New Westminster News Leader pointed out:

"Gord Hobbis figures he'll do about three months' worth of business at his Cap's bike shop in Sapperton during the month of June, and he's not happy about that. That's because on July 1 the bicycles he sells, as well as bike parts and safety gear, will instantly become 7 percent more expensive.

"Since March of 1981 bikes, bike parts and safety accessories like helmets, lights, reflectors" — all of these things — "purchased in

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B.C. have been exempt from a provincial sales tax. The exemption was implemented to encourage people to get active and maybe even leave their cars at home and cycle to work. For the most part, it's been a success, says Mr. Hobbis, especially in the last few years, when he's heard grumblings from veteran cycling commuters."

They claim that the paths and trails are getting too crowded now by other bicyclers.

Hobbis, whose family has been selling bikes in New Westminster for 78 years, says the new additional tax "might be just enough to put the skids to some people considering an investment in cycling."

"'The government should be doing more to encourage cycling, not discouraging it,' he said. 'It's a healthy activity. Anyone can do it. It has no impact on the environment, and you don't need to build anything. You can ride a bike anywhere.'"

New Westminster resident Ken Wilkinson also agrees. Health problems prevent him from driving, so he cycles everywhere. He said: "Good safety equipment is expensive and necessary for those living in New Westminster. I have to have special disc brakes for my bike because of all the steep hills and the wet roads. I also bought Kevlar tires after going through ten to 15 tubes a year because of all the debris from construction projects."

Mr. Wilkinson is worried that people either will endanger their own safety by not buying the proper equipment or will simply stop riding their bikes, neither of which is something the B.C. government should be encouraging.

On March 3 my colleague, the member for Saanich South, hosted a rally outside these buildings where hundreds of cyclists voiced their displeasure with the HST. They reminded the Liberal government how counterproductive it is to make it more difficult for people to continue cycling or to take up cycling as a new mode of transportation.

Of course, some friends of this government have been given special consideration when it comes to the implementation of the HST. There will actually be a break for those wealthy enough to buy luxury cars. Combined with earlier increases to the threshold for the luxury vehicle surtax, the government will have saved buyers of these expensive vehicles $372 million between 2001 and 2010, while only saving buyers of fuel-efficient vehicles $59 million in the same time period. It just doesn't make sense when most people are looking for ways to improve the environment.

However, those who are unable to afford a new car or who choose to buy a car privately from another citizen will be paying even more. Forcing people who buy a car from an individual to pay HST now is not "levelling the playing field between used car dealers and the private sellers." It actually puts the private seller at a huge disadvantage. It's sheer hypocrisy for this government to claim to be fighting climate change while they continue to give special breaks to those purchasing luxury cars.

[1535]

It's even more hypocritical when, at the same time, those buying smaller, more fuel-efficient cars and especially bicycles are being hit with the full force of this new tax. This hardly seems to be an appropriate way to encourage commuters to burn less fuel or give up their cars and start cycling instead.

If the HST is going to negatively hit consumers and small businesses, who does it benefit? The answer is big business, which will pay less tax. Businesses will be able to get their money back thanks to the HST rebates. It doesn't seem fair to me that we provide rebates for businesses but not for families, especially as we are trying hard and people are trying hard to recover from a worldwide recession.

Economist Phillip Legg summed it up well at my community forum. He said that the HST is a tax shift; it is not tax reform. Phillip Legg also noted that there is no doubt the HST will depress consumer spending significantly. Unfortunately, small businesses are facing this during a time when many are barely managing to keep their doors open.

In some ways, I have to cynically admire the Liberals for their chutzpah in trying to pitch the HST as a way to pay for health care. Journalist Paul Willcocks pointed out: "The hokiest part of the budget was the announcement that HST revenue would be dedicated to health care. It's an obvious attempt at phoney spin. All the money flows into general government coffers, and it's allocated as the politicians choose."

Seniors are one of the groups very concerned about the provision of health care, and they're certainly not accepting the government's attempts to sell the HST as a way to pay for health care. Sylvia MacLeay, the president of the Council of Senior Citizens Organizations of B.C., spoke at my community forum also. She clearly stated that the harmonized sales tax promises to add an average of $900 a year to individual expenditures, an amount that is impossible for people on fixed incomes to raise.

I wonder how this government expects seniors to carry this load in addition to all the other increases they've made — increases in user fees; in MSP premiums; in hydro charges; in bus, SkyTrain and ferry rates; delisting of certain medications; and cancellation of many health services.

Seniors understand that in order to have the public services that they need, that we all need — public services like health care, education and a clean environment — they have to pay taxes. What they object to is regressive taxes such as the HST, which hurt both the middle class and those with lower incomes. They're willing to pay their fair share as long as other segments of society, like corporations and the wealthy, are paying their fair share too.

I was shocked to read in the latest newsletter from Century House seniors centre in New Westminster the following report from the executive director. She wrote in their newsletter: "HST will arrive on July 1, so there

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will be price increases. Our normal price review for food services is September, but this may be done sooner and incorporated into the HST price changes."

Hundreds of New Westminster seniors who visit Century House for recreation and for companionship will face increases in the price of food served there as well as for the excellent programs that are provided at Century House.

I know that the staff at Century House feel badly about this, as they are constantly striving to serve reasonably priced, nutritious meals to the large number of seniors who have lunch there in the company of their neighbours and their friends who attend the really valuable programs that are provided at Century House. It really is deplorable that the government persists with implementing the HST while ignoring the detrimental effect it will have on seniors' lives.

[1540]

At the beginning of my remarks, I mentioned dispatching as one of the big three in life. There's a well-known expression that nothing is certain in life except death and taxes. This has again proven to be true. We don't even escape the HST as we depart this life.

Last month the Society of Independent Funeral Homes in B.C. announced they have officially thrown their support behind the citizens' initiative to repeal the HST. Society spokesperson Michael Crean, of New Westminster, said: "We believe it's wrong to tax people another 7 percent for funeral services, which are a necessity for all families. The HST hurts consumers, and we strongly oppose it." And he added: "We plan to make sure all of our clients are aware of the fight to stop the HST."

I've heard from constituents who make it clear that not only will seniors be negatively affected by the HST, but services for the youngest members of our society are also being affected. An executive member of a well-respected New Westminster child care centre recently reported the following concerns:

"Our society operates a not-for-profit day care for 25 kids in a converted residence. Last year the gross rent increased by $200 per month when it was decided the GST was applicable. With the introduction of the new HST, the rent will now be subject to PST when they combine them, which means an extra $300 a month.

"Of course, the extra costs will have to be passed on to the families whose children attend our school. I'm sure there are many such stories where the government hasn't fully thought out the ramifications of its decisions on everyday people."

Madam Speaker, at a time when family budgets are already stretched thin, a long list of school supplies will also cost families more. Ballpoint pens, pencils, crayons, exercise books, rulers, glue sticks, loose-leaf paper, felt pens, scissors, calculators, geometry sets and binders are just some of the items going up in price. The HST will even increase the price for kids' sports and community groups in every B.C. community, including arena and meeting room rentals.

A well-known media commentator stated recently: "One has to wonder how much credibility the Minister of Finance has right now when it comes to making any kind of economic argument. The polls indicate voters are smarting over last year's budget, which turned out to be widely off the mark in its projections." At first the government was saying the HST would be revenue-neutral to government, but now we know revenues will actually be reduced by $330 million a year, and phasing in tax credits for large businesses will cost the government approximately $155 million more.

One has to wonder how it makes sense for the government to impose an onerous tax increase on consumers while giving a tax cut to big business, when the end result will be to increase the deficit. Increasing the deficit will further threaten essential services like health care and education, which are already hit hard by shortfalls in government funding.

Even Liberal-friendly organizations are unhappy with the implementation of the HST. The impact of this tax on the construction of housing in New Westminster and across Metro Vancouver could be particularly dramatic, since it will drive up the cost of a new $600,000 home by $22,000 and also increase the cost of renovations to existing homes by 7 percent.

Peter Simpson, who's the head of the Greater Vancouver Home Builders Association, was quoted in a recent newspaper

article as saying that his members are still angry. "The industry is just starting to recover from a bad year due to the recession. Now the HST, combined with rising interest rates and tougher mortgage rules, could drive away new homebuyers. It could create the perfect storm of buyer resistance in July," Mr. Simpson added.

Sales commissions, appraisals and home inspections are some of the other services connected with homebuying whose costs will increase. Condo owners will not escape the effects of the tax, as their monthly fees are certain to rise when the strata council has to pay 7 percent more for gardening, for lightbulbs, for all other maintenance and repair services that they require.

[1545]

The Rental Owners and Managers Association of B.C. has joined the chorus of organizations concerned about the impact of the HST. They say the tax will have a negative impact on rental housing quality and affordability. It will increase most rental housing industry costs such as property management, repairs, maintenance and contracts by 7 percent after July 1.

The overall cost to operate rental buildings will increase by up to 3 percent as a result, about $300 per rental unit per year. Tenants could see a decrease in maintenance services, as this is the only discretionary cost that landlords can reduce to offset the HST impact. In other words, virtually every British Columbian, whether they rent or own their home, will be asked to pay more because of the new tax.

Everyone will also be affected when the cost of a wide range of products and services used every day

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throughout the province increases on July 1. British Columbians will pay more for restaurant meals and catered foods, snack food, prepared food, heated food. They'll pay more for taxi fares, household repairs, movie and theatre tickets, amusement parks. They'll pay more for accounting services such as tax preparation and mutual fund management. Imagine that, now. People who go to an accountant to have their taxes done will now pay a tax to have their taxes filed.

They'll pay more for veterinary care. They'll pay more for classes in yoga, dance and cooking. They'll pay more for martial arts classes. They'll pay more in membership fees for clubs and gyms. Fees for team sports will go up. Airline tickets will increase. Facility and arena rentals will rise. Acupuncture and alternative medicine will cost more. Haircuts will increase. Repairs to home appliances go up. Laundry, dry cleaning, carpet and upholstery cleaning, and janitorial services will cost more. Car washes will be taxed.

Basic telephone services will go up. Basic cable TV service will go up. Vitamins, dietary supplements and other non-prescription medical products will go up. Residential smoke or fire alarms under $250 will rise in price. Work-related safety equipment will cost more. Magazines, periodicals, newspapers, newsletters, student yearbooks, energy-saving items and appliances for your home and vehicle, automobile towing and emergency roadside services will cost more. And there's more, Madam Speaker — many more.

Residents of New Westminster are not remaining quiet about the government's HST tax grab. They're speaking out in the local papers, on blogs and via e-mails, phone calls and letters. Here's the text of an e-mail I received only a few days ago:

"I'm writing you to oppose the implementation of a harmonized sales tax in the province of British Columbia. Polls in British Columbia show that over 85 percent of citizens here are opposed to this tax. This opposition represents an overwhelming majority in every riding. The results of the recent federal by-election in New Westminster–Coquitlam demonstrate that any B.C. politician that supports the HST will face the wrath of the voters at election time.

"As a voter in New Westminster, I will be casting my ballot in the next election only for a candidate who opposes the implementation of the HST in B.C., regardless of political party. If you wish to have my support and the support of thousands of other constituents in this riding, I strongly urge you to vote against the implementation of the HST."

And he goes on:

"I hope you will heed the wishes of the majority of your constituents and that you will act in accordance with Canadian democratic principles and political accountability with regard to the HST. I strongly oppose this tax on the basis that the B.C. Liberals have no mandate to create such a tax. It has been unfairly implemented in B.C. and will place too great a burden on consumers struggling to cope with the recession. Once again, I urge you to please vote according to the majority of your constituents' wishes against the HST."

Well, I intend to do just that. This is only one of dozens of similar messages I've received in the past few months.

[1550]

It's no wonder that New Westminster residents and people across British Columbia feel so strongly about this issue, because before last year's election the B.C. Liberals said the HST would raise the costs for consumers and restrict B.C.'s ability to control our own taxes.

It's very hard to understand. If the HST, from the Liberal perspective, was so wrong then, just a few months ago, why are the members opposite saying it's so right now? Vaughn Palmer summed up the situation very accurately in the Vancouver Sun recently. He said: "Well, if this HST idea is such a humdinger for the future of the economy, why didn't they do it before the election?"

There is no evidence that the HST will help consumers. In fact, it's quite the contrary. In the Maritimes the HST drove up the cost of necessities like housing and clothing, even though, when the HST was brought in there, these provinces actually dropped their overall tax rate. Increases in investment there were short-lived, and now several Atlantic provinces are raising the sales tax once again.

The B.C. government has offered no relief to taxpayers in the form of a lower sales tax or universal rebates, which are now being given in Ontario. This government promised British Columbians that they would not bring in an HST — period. That's what they said during the election. They even put it in writing.

Then a few short weeks after the election, the B.C. Liberals betrayed British Columbians and broke that promise. Without even a semblance of consultation with ordinary taxpayers, small business, they announced the implementation of the same tax that they had criticized only a few short weeks before.

Everything about the HST says it's a tax grab by a desperate government that didn't tell the fiscal truth during the election campaign. However, British Columbians from all walks of life and all parts of the province are joining together to try and stop the HST. Thousands have signed petitions in a matter of days, joined Facebook groups and held rallies. They've contacted government MLAs to urge them to join the official opposition in voting down Bill 9.

If only seven Liberal MLAs will listen to their constituents and vote in accordance with their wishes, the legislation will not pass. I hope that the members opposite will think hard about this and sincerely consider that they were elected to represent the people who live in their constituencies, not to vote in some sort of unthinking unison in support of everything that's put before them by their government. I urge the members opposite to put the wishes of their constituents ahead of the wishes of their political taskmasters.

I'm confident the residents of New Westminster and all of the people of British Columbia will continue to remind this government that they do not want an unfair tax that affects them so negatively, including raising the costs of the big three events in their lives.

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I've been in consultation with people in my community and around the Lower Mainland of British Columbia, and each and every person — and they count in the dozens — has indicated their visceral disrespect for this government. I think not only do they object to this tax — they see it as a regressive tax and a tax that's not in their best interests — but they also feel betrayed by this government. I think that sense of betrayal is even stronger, in some respects, than their anger at the tax.

They feel like they had the wool pulled over their eyes, and they're very, very angry at the B.C. Liberals. They're going to remember this for a long time. Once again, I urge those seven B.C. Liberals — or more, if they have the courage — to stand up. Stand with the official opposition, and vote this tax down.

Citizens are again returning to the big three events in their lives. They're looking at ways of hatching a plan to dump the HST. They're matching wits with the Liberals about what it really means, and hopefully, by working together, they're dispatching it to the graveyard of ridiculous tax grabs.

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R. Lee: We know that the world has become a smaller place over the last 20 years. We are conducting trade and business on an international level that we have never seen before. Markets on opposite ends of the world are depending on one another, and economic progress requires partnerships in all corners of the world.

This means that we are living in a small world. There are many factors that force us to consider the economic situation, not just in our province but in the region of the world that we do business with. It's becoming quite obvious that the world economy in general was in a downturn and is slowly recovering. This means that in our province we have to be considering the other factors.

For example, it's important to increase our competitiveness in the world so that we can attract more investment to our province. We know that there are many investments around the world and that they can come here, create more jobs and grow our economy. The move to HST, which is a value-added tax system, will work to reduce the cost of production, allowing for industries to recover quicker.

The member for New Westminster is saying why we got elected. We got elected because we have a mandate to fix the economy, to keep B.C. strong. As well, we are going to grow our economy. This was the case back in 2001 when the province was faced with an outstanding operating debt left by the preceding NDP government.

In fact, the cumulative operating debt over the last ten years in the NDP is over $6 billion. That was a structural debt in operating, and then, because of the momentum of the debt, it carried over to about $14 billion just in operating debt. We managed to reduce that operating debt by $7 billion. This is an achievement, I believe, by the B.C. Liberal government.

This government is looking into the future, and the adoption of the HST is what we need in order to move forward. I'm very confused as to why the NDP would be opposing a measure which will propel the economy of our province ahead. There are no valid arguments, when I listen to the opposition speaking, for opposing the HST.

Of course, suggesting that this is an additional tax overall tricks people. In many cases people are paying 12 percent already on their goods and services. We are removing the PST at many stages of production in our factories, which will lower costs for our industry and attract many more producers to this province.

When you consider the fact that Ontario, one of Canada's largest economies, recently adopted the HST, it's important that we make sure that we're staying competitive. Our economy is one-third of Ontario's. I believe it's one-half of Quebec's. So the two provinces together — we are only 20 percent of their economy.

When they have the HST system and we are not moving towards that same system, I don't think we are competitive. When a manufacturer is faced with the choice of paying PST at each and every stage of production, compared to paying one tax of HST on their completed product, they will no doubt choose the latter — the HST — because when they do export, they can claim all the HST back. Then they will be competitive with other countries. With those other countries — most of them have the value-added system. They export; they don't pay tax internally.

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If we are not moving to the same system, we are not competitive — as simple as that. We want businesses to choose our province because not only do they grow our economy, but they bring jobs to B.C. That's why many employers in B.C. actually endorse the HST.

The leading economists endorse the HST — say, Dr. Jack Mintz, department of economics, University of Calgary; Glen Hodgson, chief economist, the Conference Board of Canada; Michael Smart, C.D. Howe Institute; John Winter, B.C. Chamber of Commerce; Jock Finlayson, Business Council of B.C.; Richard Rees, the Institute of Chartered Accountants of B.C. They all endorse that this HST is good for our economy.

There are many employers in B.C. who agree that the HST means more jobs. There's a whole list of employers, including the B.C. Agricultural Council. They agree that HST means more jobs. Members of the B.C. Business Council agree that the HST means jobs. The B.C. Chamber of Commerce came out to endorse the HST, which means more jobs for them, for their members.

The B.C. Lumber Trade Council. They are saying that the HST means jobs. Canada West Foundation. They are saying that HST means jobs. Coast Forest Products

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Association. They are saying a similar thing: HST means jobs.

The Conference Board of Canada. They have been an advocate of HST for many years. They are saying the HST means jobs. The Chartered Accountants of British Columbia — those are the professionals — understand the tax structure. They are saying that HST means jobs.

The Canadian Manufacturers and Exporters Association. They are saying that the HST means jobs. They can export more. They can manufacture more. That means jobs for B.C.

The Certified General Accountants are saying that the HST means jobs. They understand the taxation system. They know that this is good for B.C.

The Mining Association of British Columbia. They know that HST means jobs. They are saying that HST means jobs.

The Retail Council of Canada. They are saying that it is good for retailers. We heard about the HST — the impact on small business. The retailers association — they are coming out to say that the HST means jobs. A lot of people are in small business.

The B.C. Trucking Association. They are doing a lot for our province. Their industry, trucking the logs to the sorting yards, is helping to export our lumber. They are saying that HST means jobs.

The B.C. Road Builders and Heavy Construction Association. They are the builders of our province. They construct highways. They construct infrastructures. They are saying that HST means jobs. Those are the people, associations, saying that the HST means jobs, and that's important for B.C.

We don't want to drive our business away from our province. We want to attract more business, not like the NDP. In their ten years they drove out a lot of big business and small business to other provinces. When a manufacturer is faced with a choice of the HST or PST, as I said, they will choose HST. We are offering the people of B.C. more jobs with this tax measure.

How can you argue against job creation and economic growth? How can you do that? If you continue to insist that businesses pay layers upon layers of PST, then they will flee the province and head to Ontario and other provinces which have the HST system. Then they don't charge the PST in their provincial level.

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This government realized that the future of this province is unlimited with these changes. Our unique geographic position and proximity to the Asia-Pacific region make us one of the most attractive North American jurisdictions. With the HST, it's even more attractive.

We have developed and fostered a relationship with Asian markets to ensure the future of our economy. It's widely known that the Asia-Pacific countries are heavily investing in foreign opportunities, and B.C. is this foreign opportunity for them.

There are more than 130 countries in the world, including 29 of the 30 OECD countries, that have adopted similar tax policies. British Columbia will be sixth of the other Canadian provinces with a similar tax structure.

All industrial sectors in B.C. will benefit from sales tax harmonization and will see their effective tax rate on new investment drop by over one-third — quite a saving for new investments. If you invest after July 1, the net effective tax rate will be dropped by one-third.

This HST will remove about $1.9 billion in costs from job-supporting sectors such as forestry, mining, oil and gas, construction, manufacturing and transportation. These industries are very, very important to the economic health of our province. They are what we need in order to continue doing business with our largest trading partners.

Our construction industry will save an estimated $880 million because they won't have to pay all this PST — layers and layers when they buy those materials. Those layers and layers add to the cost of the building materials. As our communities are quickly growing and we experience more and more development, a saving of this magnitude will make it easier for people to build in B.C. We are excited at the possibility of this type of growth.

Aside from the many countries that have switched to a value-added tax system like the HST, there are many others who support this tax — individuals. I can go on with a list of associations and individuals.

For example, Dr. Kevin Milligan from UBC's department of economics. He supports this HST, saying that this is good for our economy. Robert McFarlane, CEO of TELUS, supports it. Kenneth McKenzie, Canada West Foundation, supports this HST, saying that this is good for our economy. Tim McEwan, CEO, Initiatives Prince George in the rural area. They are supporting this. Ben Dachis and Alexandre Laurin, C.D. Howe Institute.

David Baxter from Urban Futures supports it. We have listened to David many times in our conferences, and he's very knowledgable about B.C. in terms of the demographic distributions, in terms of the movement of people. He is saying that this will be good for our economy. The HST will be good for our economy.

I can go on and on, but I would also like to mention that the HST is very important to our future. These measures will be very important to the economic health of our province. They are what we need in terms of continuing our business with our trading partners.

I would also like to mention that there was recently an article, probably a few months ago — I don't exactly know the time — in a publication which is well-known for its frequent opposition to the policies of this government. This

article claimed that this tax is a good policy for consumers.

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The

article cited the opinion of two UBC economists, who recognized the significance of the harmonized sales tax, the HST. I've mentioned Professor Milligan already. He's quote