British Columbia Hansard — Thursday, February 28, 2019 p.m. — Number 211 (HTML) (41st Parliament, 4th Session) (20190228pm-Hansard-n211)
20190228pm-Hansard-n211
British Columbia — Debates (Hansard)
Fourth Session, 41st Parliament
(2019) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, February 28, 2019
Afternoon Sitting
Issue No. 211
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Orders of the Day
Committee of Supply
Supplementary Estimates: Ministry of Advanced Education, Skills and Training
Hon. M. Mark
S. Cadieux
Supplementary Estimates: Ministry of Attorney General
Hon. D. Eby
M. Lee
Supplementary Estimates: Ministry of Children and Family Development
Hon. K. Conroy
L. Throness
Hon. K. Chen
Proceedings in the Douglas Fir Room
Committee of Supply
Supplementary Estimates: Ministry of Citizens’ Services
Hon. J. Sims
S. Thomson
A. Olsen
B. Stewart
Supplementary Estimates: Ministry of Energy, Mines and Petroleum Resources
Hon. M. Mungall
T. Shypitka
G. Kyllo
P. Milobar
THURSDAY, FEBRUARY 28, 2019
The House met at 1:33 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: In this chamber, I will be calling the supplementary estimates for the
following ministries, in this order. First will be Advanced Education, then the
supplementary estimates for the Attorney General’s ministry and then the
supplementary estimates for the Ministry of Children and Families.
In Committee A, the Douglas Fir Room, I will be calling the supplementary
estimates for the Ministry of Citizens’ Services first; followed by the
supplementary estimates for the Ministry of Energy, Mines and Petroleum
Resources; followed by the supplementary ministry estimates for the Ministry of
Forests, Lands, Natural Resources and Rural Development.
[1:35 p.m.]
Committee of Supply
SUPPLEMENTARY ESTIMATES:
MINISTRY OF ADVANCED
EDUCATION,
SKILLS AND TRAINING
The House in Committee of Supply (Section B); J. Isaacs in the
chair.
The committee met at 1:38 p.m.
On Vote 11(S): ministry operations, $5,500,000.
Hon. M. Mark: I’d like to start the conversation with a few remarks. First, I’d
like to acknowledge that we are gathering on the traditional territory
of the Lekwungen-speaking people, members of the Songhees and Esquimalt
First Nations.
It is my honour to introduce the supplementary 2018-
2019 spending
estimates for the Ministry of Advanced Education, Skills and Training.
I’d like to introduce my staff. To my flank, ADM Jeff Vasey; to my
right, my deputy minister, Shannon Baskerville, and my assistant deputy
minister Kevin Brewster. I’ve got other teammates that are waiting in
the wing just in case the official opposition has any technical
questions that we need to address.
I’d like to thank the members opposite, my official critics, my
colleagues, for allowing me to provide a brief introduction. I
understand it’s been a long time since we’ve seen supplementary
estimates in these chambers.
[1:40 p.m.]
Moving forward, a more recent history lesson is warranted as we
talk about adult basic education, skills and training. In December 2014,
the old government announced a policy of exclusion — to no longer fund
learning. These are programs in numeracy, literacy and upgrading across
the ecosystem. The policy decision by the old government unfortunately
slammed the door for ordinary people who wanted to better their lives,
get a job, support their families or pursue their opportunities in
college or university. People wanting to upgrade their education and
participate in the economy were penalized with tuition fees as high as
$1,600 per semester. As a result, enrolment in ABE and ELL programs
dropped almost 35 percent, from 10,244 spaces in 2013-2014 to 6,692
spaces in 2016-2017.
The members opposite may recall the reaction of students — and
let’s not forget that it is about students — and the instructors, very,
very passionate about ABE. I can imagine that the members opposite have
had a chance to meet the recipients of these ABE and ELL programs and
the instructors that go to work each and every day with passion, who
begged the old government to do the right thing and reconsider their
decisions. The former Minister for Advanced Education was absent from
that announcement and faced significant backlash in his
riding.
Thousands of people sent letters pleading with the old government
to do the right thing, to reverse their decision. From across the
province, students and educators told us how the unfair tuition fees
blocked people from advancing their opportunities, improving their
chances of success and participating in the workforce. They pleaded for
change.
Now, let’s talk about the present. When we formed government in
July 2017, we were quick to take action, because our government knows
that the importance of investing in people is through education and
training. We know it’s about opening doors so that people can
participate in the workforce, build thriving careers and support
themselves and their families. It brings pride and hope to
people.
I want to pause for a moment, because I’ll never forget the day
that I went to my mom’s graduation at Native Education College, when she
returned to school as an adult to get her GED. It is life-changing. It
is a deal-breaker for people that, for whatever reason, didn’t get a
chance to finish their grade 12 along with their peers.
On August 8, 2017, I stood next to Premier Horgan, Minister
Fleming and students from Camosun College to announce that we were
removing roadblocks. In less than three weeks of taking office, our
government announced we were eliminating tuition fees for ABE and ELL
programs, which is a key part of my mandate. This was a direct response
to the call to action from thousands of students and educators from
across the province.
On September 1, 2017, tuition-free programs came into effect at 18
public post-secondary institutions, as well as the Native Education
College. Adult basic education programs are now helping students
complete high school or upgrade to access post-secondary
programs.
Students are taking their math at Okanagan College. That’s equal
to grade 11 high school math and will get them into academic career and
technical programs. Students are taking chemistry at Thompson Rivers
University and Native Education College. They’re learning about the
periodic table, atomic structure and chemical reactions. Students are
studying social sciences at College of the Rockies. They’re learning
about Canadian government, law and citizenship and Canada’s relationship
with Indigenous peoples.
and go on to higher education. As a result, life’s looking a lot
brighter.
We’ve stopped the decline in ABE enrolments. The number of ELL
students has increased by 10 percent. We are continuing to break down
barriers with a policy of inclusion. Through our Upgrade B.C. campaign,
we are getting the word out that ABE and ELL programs are now
tuition-free. We can’t undo the damage overnight that the old government
caused, but we are taking steps, we are taking measures, and we are
taking action.
[1:45 p.m.]
When people can access affordable education, skills and training,
it tackles poverty and inequality and grows our strong economy. This
policy builds on our belief that we must lift as we climb. More than
20,000 students now have opportunities to pursue their dreams and forge
new pathways.
Behind the numbers are real people who have been given a chance at
opportunity, students like 34-year-old April Murphy. April is an ABE
student from Vancouver Island University. April battled illiteracy,
homelessness, addiction and mental health challenges. But she’s well on
her way to getting her high school diploma. April plans on enrolling in
the community mental health worker certificate program so she can help
others overcome their barriers.
She says: “I went from being my own worst enemy to being my best
friend. I didn’t realize how good life could be if I was good to myself.
The community at VIU has been amazing through this process. I don’t
think I would be half as successful if it weren’t for the staff here
cheering me on and pushing me to better myself.”
There are thousands of people like April across the province who
are going back to school to better their lives. We’re fighting for
students like April. This is good public policy. It’s what British
Columbians expect of government.
As I close, Budget 2017 Update confirmed the removal of fees for
2018 brought hope and included $18.5 million a year for tuition-free ABE
and ELL programs for a total of $55.5 million over three years. We’re
increasing that by $5.5 million in 2018 and 2019 and the following years
to defray costs.
Education is a great equalizer that transforms lives. I’m proud of
the choices our government has made and the work we’ve done over the
past 19 months. I look forward to responding to the questions from my
colleague members opposite. Haawa .
S. Cadieux: I apologize for my voice. I hope it makes it through, as I hope
yours does, Minister.
Thank you to the staff for being here to help with questions
today.
First off, I’ll introduce my co-critic, the MLA for
Abbotsford-Mission, who’s here with me. Although for the ease of this
short stint in supplementary estimates today, I’ll ask the questions on
our behalf.
I will beg forgiveness in asking this first question. It’s a
question for clarity for me that may prevent me from coming back to a
different question later. So I’d like to ask it first. It comes, though,
out of the minister’s accountability report from the 2017-18
year. Just for clarity for myself — because as I was preparing for
today, I found something, and I can’t explain it — I just would like to
know if you could, please….
On page 10 of the accountability report, where it lists the
individual responsibilities results for members of the executive council
with operating expense and responsibilities, Ministry of Advanced
Education expected results — expected spending of $2.571 billion; actual
results of $2.475 billion, with a variance of $96 million. For clarity,
could the minister explain why those numbers are not the same numbers as
we look at in the estimates for the ministry, which were, of course, a
total of $2.153 billion? I’m just confused as how they come to that
total, as arrived at in that document.
[1:50 p.m.]
Hon. M. Mark: I’d like to thank the member opposite for the question. There are
a number of variables to respond to that specific question. We can get
the answer to you in writing, hopefully, before estimates, which is
scheduled for, I believe, next week, next Thursday. My staff, at the
moment, are prepared for the supplementary estimates today.
S. Cadieux: Thank you very much, Minister. I’d appreciate that. I’m just
trying to work my way through these books and just making sure I have
things clear, so thank you.
On to the subject at hand, which is the supplementary estimates.
The last time government required supplementary estimates was, indeed,
during a global financial crisis. That’s certainly something quite
different from what we’re seeing now. What we’re seeing now is a
government that either (
a) didn’t adequately budget, or (
b) couldn’t
control its spending and overspent and is now coming back to ensure that
they can massage the numbers so that they can come in
balanced.
Now, I understand, and as the minister’s statement at the opening
of the session has stated, that the ministry is looking for $5.5 million
for adult basic education and EBE programs. Some inquiries, definitely,
along that line. My understanding, from last year and from our estimates
process and discussion, was that the ministry was budgeting $18.5
million for the ABE, ELL reinstatement this year. Is that
correct?
[1:55 p.m.]
Hon. M. Mark: In 2017-2018, it wasn’t a full year. The first full budget was in
2018-2019. We anticipated $24 million for Budget 2018. So $18.5 million
was in the budget and $5.5 million in contingency. We worked closely
with the public post-secondary institutions, starting from the 35
percent reduction that I made in my opening remarks. Based on the first
year, we have hit our target.
S. Cadieux: Okay. I guess I’m having trouble understanding how the first year,
2017-18, was a partial year, given that it started in September. You
would have had that semester, and you would have had the second semester
starting in January of that year. When is it that government makes those
transfers to institutions? How does that break out during the
year?
[2:00 p.m.]
Hon. M. Mark: To the question. As the member is aware, the semester is divided
into three, one starting in September, one starting in January and one
starting in April. We know that the budget is April to April. So the
partiality comes from the program starting in September and then again
in January.
The $18.5 million was in our budget for September. We were ready
to fund on demand, but the program had to ramp up. There had to be
awareness that the program was now tuition-free. The number that we have
for the first year is partial, because it’s only covering the two
semesters of April and January.
S. Cadieux: Thank you, Minister.
My next question, then, is on the numbers, on the uptake for the
program. The minister stated in her opening remarks that in ’13-14,
there were 10,244 students; in ’15-16, 6,692 students. First off, is
that FTE or enrolment? Then what were the numbers for ’16-17 and
’17-18?
The numbers that the minister quoted do not match the numbers that
the minister provided to me in a letter on November 20, 2017, by any
shape of the imagination. I’m just trying to understand what the real
number is and where it comes from.
Hon. M. Mark: I wish Hansard could see the graphs in front of me to explain
it.
To the questions that the member is asking, we have numbers for
head count. We have numbers for FTE. We have numbers for FTE broken down
by ABE and ELL. FYI, I’m just joking with acronyms.
I’m going to go with head count first. ABE and ELL total head
count, in 2015-2016, was 22,170. For 2016-2017, it was 20,120. For
2017-2018, it was 20,280. This is for head count, combined ABE and
ELL.
The second graph is ABE and ELL, combined, by FTE. In 2015-2016,
it’s 7,262. In 2016-2017, it’s 6,692. For 2017-2018, it’s
6,882.
[2:05 p.m.]
Breaking that down, split between ABE and ELL. For 2015-2016, it’s
6,310 for ABE, 958 for ELL. For 2016-2017, it’s 5,555 ABE and 1,137 for
ELL. Finally, for 2017-2018, it’s 5,633 ABE and 1,249 for
ELL.
We’ll gladly get these graphs to you before estimates. But there
is a difference, as the member is aware, between head count and FTE, so
I’ll get those three graphs to you.
S. Cadieux: Thank you, Minister. Yeah, it’s very confusing because those
numbers still don’t jive with the numbers that I’ve been given before,
so it’ll be great to have it all laid out.
I can move on to another question.
Hon. M. Mark: Point of clarification, because sometimes I can be dyslexic with
numbers, and I apologize. When I said the combined FTEs for 2017-2018
for ABE and ELL, it’s in fact 20,820, not 20,280. Anyway,
sorry.
S. Cadieux: My next question is: how was the budget arrived at, then? When the
ministry decided they were going to make it tuition-free again, how was
that budgeted? Was that budgeted per student — so per head count, per
FTE or in some other way? Was it determined per institution or a
combination? How much was that determined to be on a per-student or
per-FTE or per-institution basis?
[2:10 p.m.]
Hon. M. Mark: The money is per FTE. To the member’s question, we’re working with
PSIs, the post-secondary institutions, with actual numbers and
projections. Of course, as she can appreciate, they’re the experts in
their community. Money provided is for demand.
Not all courses cost the same. Some of the courses…. As an
example, computer studies, Indigenous ABE, sciences, biology, chemistry,
physics…. All of the courses are not the same, but on average, we know
that $1,600 per semester was the average cost of tuition when the
previous government allowed PSIs to charge tuition for ABE and
ELL.
Forecasts are for an increase in need, which is why we are going
from $18.5 million to $24 million. Finally, with the full year
completing this year, moving into April, we will have better numbers
through our data, but we are on track.
S. Cadieux: Okay. Well, that’s confusing.
You budgeted and projected by FTE at an average of $1,600 per FTE
based on the projections for enrolment that were provided by the
institutions, knowing what they normally would see in terms of people
coming in. I understand there’s some flux because courses cost a
different amount of money.
You budget an amount. Then the bills come in at the end of the
year from the institutions saying: “This is how many students we had in
these courses, so here’s our bill.” Is that how this is
working?
You said that you budgeted at $18.5 million with $5.5 million in
contingencies. But you’re not accessing contingencies. You’re asking for
a budget lift because you’ve overspent. So is this…? You think you’re on
track now, and you think that that will work going forward, but you
won’t know till April, which is too late for the next budget.
I’m just trying to get some clarity around how this process works,
because it’s going to be hard to believe the ministry has a sense of
their budget if they’re $5.5 million out, plus or minus, at this
ask.
[2:15 p.m.]
Hon. M. Mark: To some of the line of questioning, there has been no
overspending. We are working with the PSIs, the public post-secondary
institutions, throughout the year and tracking student uptake. It is not
unusual, as the member can attest and relate, as a former cabinet
minister, when implementing a new program to get partial funding and
access to contingency as the program rolls out.
[2:20 p.m.]
Last year we used enrolment and costs to get better information on
student uptake and program costs. We started at $18.5 million, and the
numbers of students are showing up as expected — which is why our budget
is being increased. Yes, PSIs billed us after the first partial year. We
used that data to build in the funding for their annual grants going
forward.
S. Cadieux: The second-quarter update, or the forecast document in November,
showed a $1.7 million overspend for the ministry and predicted that the
ministry would come in on budget. Now the ministry is coming and asking
for an additional $5.5 million because they can’t meet that budget. So
the overspend has more than tripled in the second half of the
year.
Now, I recognize that 0.24 percent is not a lot of money, and ABE
programs are a good thing. It’s not a criticism that government is
embarking on this program, but it is a criticism that in a budget of
$2.2 billion, the ministry has spent so freely this year that they need
more at the end of the year and that there isn’t a 0.24 percent slippage
in the ministry’s budget, especially, it would appear — given the
question I started the day with — that in an average year, there would
be a significant fluctuation of a few percentage points of
room.
There are things that don’t happen. There are unexpected costs in
other areas. Some things go up; some things go down. There’s a hiring
lag. Something doesn’t move ahead as ahead as expected during the year,
or there’s a delay. Therefore, some of the dollars don’t get spent.
That’s what generally happens.
The fact that on a $2.2 billion budget, the ministry has come so
close to the line that, at the end of the year they have to come back
and ask the Legislature for an additional $5.5 million to be able to
fund this program that they launched, and for which they projected they
would need $5.5 million additional from contingencies much earlier,
suggests that they can’t get the money from contingencies because those
are overspent. Whether it’s this ministry that has overspent or the
government that has overspent, either way, it doesn’t bode well that the
government is coming back because they can’t balance their budget. I am
concerned about that.
Along that line, can the minister tell me, please, was there any
additional spending this year on the following: mental health supports
for students on campus and sexual violence policy implementation
supports? How much was spent on completion grants this year? The average
has been between $30 million and $32 million. What was this year’s
total?
[2:25 p.m.]
Hon. M. Mark: I appreciate the questions from the member opposite. As she
recognizes, these are the supplementary estimates to speak specifically
There’ll be ample time in estimates, which is scheduled next week, to
discuss my ministry — which, for the record, is not over budget. To
imply that we’re the “go and spend, spend freely out there, over budget,
can’t manage a budget….”
I recognize that the tone in estimates is supposed to be a little
bit more collegial, but I will not allow the record to state that we
have overspent anything. Our budget is balanced; it is in line. In fact,
is also balanced. I’m more than happy to answer any questions related to
those two program areas, but to talk about slippage and 2.4 percent —
there’ll be ample time in estimates to speak to that.
S. Cadieux: Well, it’s my understanding that we’re here because the ministry
has not been able to meet their budget. It needs an additional $5.5
million in order to meet their spend for this year for this program on
ABE — for which they had only budgeted, in the document, $18.5 million,
as the minister stated earlier, and another $5½ million in contingencies
— which clearly they have not accessed, because they’re coming to ask
for additional funds. I’m curious as to why my question about whether or
not anything else happened during this year — did something else in the
budget change? — is not seen to be a question for today. I’m trying to
discern why it is that we need to come back for $5½ million on a $2.2
billion budget.
Having managed a budget of considerable size myself, I do know
that generally there is some slippage, and that therefore, a ministry
usually is asked to manage within their budget. That’s how it works.
That’s the point of budget accountability. That’s the point of the
Budget Transparency and Accountability Act, which has ministers’
salaries held back to ensure that they meet their budgets. If they don’t
meet their budgets, they don’t receive that holdback. So I’m
curious.
Now again, I’m not arguing that ABE isn’t a good program or that
it’s not a new program and therefore they’re having some challenges. I’m
just trying to discern, through this line of questioning, the degree of
that challenge so that, when we get to the estimates for yet a new
budget year, we can ask those questions. The reality is: we’re asking
about the year we’re currently in, and these questions are related to
the year we’re currently in. It’s not what they’re going to spend next
year or what they’re planning to spend next year, but what indeed they
spent this year that has led to their need to come back for another $5.5
million.
I’ll ask once again to the minister, collegially: was there any
money transferred to universities to support the government’s sexual
violence policy implementation or mental health supports on campus,
which have been talked about a lot by the minister? And I’m curious as
to how much the government spent this year on completion grants for
students. All of these things have an impact on the budget that we’re
now here to supplement.
[2:30 p.m.]
[R. Chouhan in the chair.]
Hon. M. Mark: Government policy, the new government policy, is that ABE and ELL
learning exceeds our $18.5 million budget for the program. The Minister
of Finance has allowed an additional allocation of $5.5 million to
support this demand-driven program.
Put plainly, what we are doing is bringing certainty to this
program. There is going to be certainty for students to understand that
programs tuition-free throughout British Columbia.
For the record, around supplementary estimates, which is new to
many of us…. I don’t recall if the member opposite ever did
supplementary estimates. They’re new. They’re unique. They’re rare. I’m
the rookie who gets to stand here for the first time to speak to them.
So you know what? I can’t give you a history lesson.
What I can tell you on supplementary estimates is that they’re a
fiscal planning tool that allows government to use fiscal surplus to
fund new initiatives that would otherwise be funded in Budget 2019 or
future budgets, removing pressure from the fiscal plan in future years,
and move already approved funding being held in the contingencies vote
by the Minister of Finance to a ministry’s specific appropriations in
order to manage the contingencies envelope.
Further, the use of supplementary estimates does not mean the
government is running out of money or that ministries are not carefully
monitoring their budgets for fiscal 2018-2019. Additional surplus has
materialized since the 2018 budget was tabled, which provides the fiscal
room to table supplementary estimates.
S. Cadieux: Well, no, I haven’t had to be the minister in supplementary
estimates before, because I didn’t have a situation where I overspent my
budget.
The reality is that I understand that the minister must have
spent, or be on track to have spent by the end of March, all the money
in all the lines of her budget. Otherwise, she wouldn’t need an
additional $5.5 million to be added to the budget. That’s just the
reality of it. You can dress it up however you’d like,
Minister.
Frankly, I will state once again that I like and I don’t have any
problem with the fact that this is a program to help people better their
lives — absolutely. I don’t have a problem with the government making
the decision to fund this, but I do have a problem with the government
not managing well enough during the year that they feel that they need
to come back at the end of the year to get additional money to fund this
program.
Now, it was in contingencies. Generally, that means you didn’t
anticipate needing it, or if you did, it would have been moved into your
budget. You don’t need supplementary estimates to move contingencies
money into a budget. I think this is more likely putting a program — a
good program, a worthy program — up for a boost to the budget, because
in another area, they don’t want to admit that they have
overspent.
[2:35 p.m.]
I was trying to just ask simple questions — whether or not there
were other areas of the budget that had been underspent or overspent.
But the minister has not chosen to volunteer that any of the other areas
of the ministry are overspent or underspent and suggests we cover that
in estimates for the next year. Well, okay. I guess we’ll do that. I
don’t expect that the minister will be any more forthcoming with answers
related to those at that time, because I don’t think that the minister
wants to be completely transparent about this circumstance.
This is an unusual circumstance, and it is concerning. It’s
concerning not because the money is going to support a worthy program
and support individuals that are looking to better their education, not
for that reason, but for the reason that the government sees fit to….
“Wow. There’s a surplus. Let’s go and spend it.” Rather than: “Wow.
There’s a surplus. I guess we won’t need to take as much from the people
next year.” But instead: “We are going to spend every dollar, and then
we’re going to take some more.”
I guess, with that, I will say thank you to the minister and the
staff for being available today, and I’ll look forward to delving into
all of these things again next week.
Hon. M. Mark: I look forward to having conversations about the issues that the
member raised — mental health, completion grants. But to imply, on the
record again, that there is overspending is simply not accurate. We are
still in the middle of the budget. The budget is not over. It’s still
the end of February. There’s more time to go in this fiscal
year.
To be clear, let’s talk about where we came from, because the
history lesson is that that $74 million in cuts from the old government,
the previous government, the members that sit opposite, who cut ABE….
I’m looking at my notes here, just to remind for the record — $17
million in base funding in 2014.
We’re not talking about cuts here. We’re talking about bringing
certainty into the budget, into my Ministry of Advanced Education,
learning.
Vote 11(S): ministry operations, $5,500,000 — approved.
J. Brar: I seek leave to make an introduction.
Leave granted.
Introductions by Members
J. Brar: I see students there. I don’t know what school they’re from, but I
welcome these students. I ask the House members to make them feel
welcome.
I just want to say to you that what you saw right now was the Minister
of Advanced Education sitting on this side with her staff members, and the
critic from the opposition side sitting on the other side. There were
questions being asked by the critic to the minister about the budget. That’s
what we are doing right now.
In the next three or four months, the ministers will be asked
questions about the budget, whether it’s the Minister of Education, the
Minister of Agriculture or the Minister of Finance, whatever — one by one.
That’s the process that will continue until the end of May. That’s what
we’re doing here.
Welcome to all of you. I hope you’ll enjoy your stay here.
The Chair: The House will be in recess now for five minutes.
The committee recessed from 2:39 p.m. to 2:41 p.m.
[R. Chouhan in the chair.]
Debate Continued
SUPPLEMENTARY ESTIMATES:
MINISTRY OF ATTORNEY
GENERAL
On Vote 14(S): ministry operations, $7,900,000.
Hon. D. Eby: I’d like to introduce — I have some staff here with me today —
Richard Fyfe, Deputy Attorney General; Salman Azam, executive financial
officer and assistant deputy minister, corporate management services
branch; David Hoadley, chief financial officer and executive director,
finance division, corporate management services branch; Carmen
Zabarauckas, executive director, tribunal transformation initiative,
justice services branch, and Richard Rogers, executive director and
registrar of civil resolution tribunal. They’ll be coming in and out as
necessary, with your leave, Mr. Chair.
M. Lee: I appreciate this opportunity to review with the Attorney General
and the team the need for this additional $7.9 million. Perhaps I could
just start there by asking the Attorney General what the purpose for
this request is.
Hon. D. Eby: The $7.9 million breaks down to $4.4 million for the civil
resolution tribunal, $1.5 million for justice services branch for the
tribunal transformation and supports office and $2 million for
amortization.
M. Lee: I appreciate that brief overview as to the requirements for this
expenditure. It does gives us the opportunity, of course, to talk about
the many changes that have occurred with the ministry since the last
budget. Certainly, we will get into those topics. Like my colleague the
MLA for Surrey South, obviously we haven’t seen this sort of exercise in
this House for over ten years. It’s very exceptional that ministries
would be coming forward to look for this process at this
time.
To the Attorney General, in the current budget for the 2018-2019
fiscal plan, how are the expenditures against that plan to
date?
[2:45 p.m.]
Hon. D. Eby: I can advise the member that it’s our understanding that we are
pretty much on track in relation to the budget. Also, it’s my
understanding, although I don’t pretend to be an expert in the area,
that supplemental estimates were restricted until the operating debt was
retired, which our government did do and which we’re proud of
doing.
M. Lee: In terms of these expenditures that are being requested, were any
of them foreseen prior to the last budget?
Hon. D. Eby: These are expenses, I’m advised, that are foreseen, but the actual
amount is variable. So what happens is that by bringing them in through
the supplemental estimates process, they let the opposition and the
public know that this money is certainly going to be spent in these
areas. It also puts it into the base budget for ’19 and ’20.
M. Lee: For example, on the justice services branch, was it not…? You have
a plan for 2018-2019. Was it not contemplated what the plan would be for
that branch over that period of time? Why is it necessary to ask for an
additional $1.5 million at this time?
Hon. D. Eby: I understand that the history of funding new programs in
government is that they are funded through contingency until they
establish a track record of expenditure that can be relied on, at which
point it typically moves into the base budget. So that’s what the member
is seeing here.
The JSB program, tribunal transformation and supports office —
this is the first year of that program. It was in contingencies, and now
he sees it moving into the base budget.
M. Lee: That would presumably be part of the response in terms of the CRT.
Can I get a better sense from the Attorney General as to the purpose for
the $4.4 million in terms of what that is being spent on in terms of the
initiatives that the Attorney General has brought forward over this past
year?
Hon. D. Eby: I can tell the member — he may know — that shortly before he came
into this place, the previous government established a civil resolution
tribunal in relation to, first, strata disputes, and then small claims
disputes were added after that. What the member is seeing is that new
program transitioning into the base budget. It’s $4.4
million.
We can advise the member that none of that is in relation to the
civil resolution tribunal expected to take over ICBC-related disputes
under $50,000 for minor injury and benefits disputes. That is not
expenditure in relation to this number.
[2:50 p.m.]
M. Lee: If I hear this correctly, then clearly, the $4.4 million relates
to only the current mandated CRT and not to the new mandate, which will
be implemented as of April 1 for minor injury disputes in the expanded
mandate. So this $4.4 million is for the tribunal purposes. What was
that expenditure for then?
Hon. D. Eby: It’s for civil resolution tribunal expenses related to the
administration of small claims and strata disputes in the
province.
M. Lee: I’m not sure why that was not part of the base plan in the first
place. Were there new initiatives, or new spending, that were being
thought of in the contingency for that purpose?
Hon. D. Eby: Fair question. The CRT was established under the previous
government — and the expenditure for the CRT to resolve strata disputes
out of contingencies. That was the approach that was taken by the
previous government. The member now sees us moving it into base budget
in relation to the strata disputes and the small claims disputes, as I
outlined.
The general policy, as I understand it, is that a new program like
the CRT…. I don’t mean to cast aspersions on the approach taken by the
previous government, because it’s an approach we’re taking, too, with
new programs. They’re funded out of contingency until they establish a
pattern of reliable expenditure, at which point, they shift into the
base budget.
M. Lee: So that would mean that the previous line, which I think was $23
million for tribunals…. Did it include expenditure for the
CRT?
Hon. D. Eby: The member is correct. The previous line item related to the 18
tribunals within the Ministry of Attorney General, not the civil
resolution tribunal.
M. Lee: That’s helpful to know. In terms of the base funding, then, for
CRT that was previously in contingency, it’s actually $4.4 million,
prior to the changes that are coming forward. Is that
correct?
Hon. D. Eby: If the member is talking about the ICBC changes, that’s correct.
This does not include the ICBC changes. This is civil resolution
tribunal expenses related to strata disputes and small claims
matters.
M. Lee: Are there any expenditures that are incurred through the course of
the 2018-2019 plan for the implementation of the expanded mandate for
CRT?
Hon. D. Eby: All of the new staff related to the upcoming and the staffing up
for taking on the ICBC-related disputes will be coming out of
contingency. But I do want to tell the member that, obviously, there’s
time being spent by the executive director, for example, the registrar
and other senior staff to do that hiring and to oversee development of
the software, which, I understand, the member has been oriented on.
Also, the executive director, tribunal transformation initiative,
justice services branch, is spending some of her time getting this set
up too.
It’s not a bright line in the sense that there are current staff
at the CRT, current staff at the tribunal transformation initiative,
that are assisting in the hiring and the development of this new
function within the tribunal. But the vast majority of the new expenses,
the new staff that will be handling the disputes, the actual cost of the
software development and so on would be out of the contingencies and is
not part of this.
M. Lee: Just before coming back to that, can I ask in terms of the third
category of expenditure — for the Attorney General to walk us through
that as well?
[2:55 p.m.]
Hon. D. Eby: This is an amortized cost related to software for the tribunal
transformation project. What we’re trying to do is to get the tribunals
to use a consistent software platform for managing their cases, and this
is the software platform that four new tribunals will be onboarded to in
the period. Our hope and expectation are that there will be a unified
back end, essentially, for these tribunals through the software program,
so it’s an amortized expense related to that. It’s a five-year
amortization.
M. Lee: This, again, would have been part of the plan in 2018-2019 for the
ministry, in terms of the transformation, of course, of the tribunals,
which is ongoing. Was this not a cost that would have been foreseen and
budgeted for at the outset a year ago?
Hon. D. Eby: I’m advised that the actual value of the amortization depends on
how many tribunals go live on the program in any given year, so it’s a
variable amount. We now know that there are these four tribunals that
are going live on it, so we have a certain amount for the
budget.
M. Lee: Why the timing of now, though, in terms of this adjustment? Why
isn’t this adjustment just being done in next year’s budget to account
for that expenditure or that cost to the amortization?
Hon. D. Eby: There is allocation for this made in contingencies. There is
expectation that some number of tribunals will be coming on over the
year. So it’s moved from contingencies into base budget. Because there
are four tribunals coming on, this is a fixed expense we can put into
the budget.
M. Lee: In terms of the 2018-2019 contingency amount for this ministry,
what was that amount again?
Hon. D. Eby: I regret to tell the member that we don’t have the 2018-19 full
contingency number, which would include contingencies for major cases
and other files, but the amount of contingency proposed to be brought
over in relation to today’s supplementary estimates is $7.9 million, as
I advised earlier.
M. Lee: Obviously, as has been said by my member opposite so many times,
I’m new to this House, so I’m just trying to understand how this process
is working. We understand — as just a recap — that there are contingency
amounts for new initiatives that are there. That’s being now brought
over through this supplementary estimates process to be put into the
base, because this tribunal, CRT, has now reached a stage.
I’m still unclear as to why now. Why isn’t it part of the next
budget that we’re reviewing and not a catch-up for the previous year?
Presumably, when you set a contingency, you know what you’re going to be
spending that’s going to be contingent on, as we say, major cases, other
impacts, new court cases, taking Alberta to court numerous times — areas
like that — situations within this House, new requirements for legal
counsel from the Ministry of the Attorney General.
[3:00 p.m.]
I must say, of course, that there have been other things that the
Attorney General has brought forward, including in January, which would
take money off the table from British Columbians, in terms of
settlements that might have been put forward for major complex claims,
which is arguably adding more cost, in one way, to British Columbians,
maybe less costs on the table in terms of defence costs.
There are fluctuations in this budget as we go forward, and we’re
talking about how legal claims will be dealt with by this government.
I’m surprised, here, that we are still talking about taking money and
converting it from contingency when that contingency is for a variety of
purposes, many of which would have been contemplated for this 2018-2019
fiscal year. In the absence of knowing what the exact number of the
contingency is for this ministry, it’s hard for me, as a member of this
House, to understand what the percentage is that we’re talking about and
why we’re doing it in the first place.
If I can ask for some greater clarity on how this is occurring at
this time, as opposed to in the planning process and the approval
process in estimates for the 2019-2020 budget, which I would have
thought would have incorporated the expenditures for CRT in the base
budget. That’s obviously something that we’ll be looking at. I believe
that figure is on an $8 million figure, year over year, additional.
That’s something, perhaps, we can be touching on here. For now, let’s
just ask further about the contingency and how that’s being converted at
this time.
Hon. D. Eby: The member is asking: why is this happening? I can advise that I
understand one of the reasons why this is happening is that it can
happen. Because our government retired the operating debt, we’re able to
do these supplementary estimates. This isn’t something that was
available previously when the operating debt existed.
The member asked questions about the ICBC litigation strategy. I
can tell the member that there’s nothing in the Ministry of Attorney
General budget related to ICBC defence costs or so on. The line item in
the Ministry of Attorney General budget that we’re talking about is in
relation to…. When someone has a dispute with ICBC, instead of the B.C.
Supreme Court, they will go to the civil resolution tribunal.
That’s an additional caseload for them. They have to hire up
decision-makers, and they have to be prepared for that with a software
program that guides people through the application process and so on.
Those are those expenses, but that’s not ICBC defence costs. I would
want to be really clear about that. Those costs are separate and
contained within ICBC’s financial statements for the
corporation.
Of course, the member will see ICBC showing up in the budget as a
giant black pit of money, currently, until we get our fixes in on April
1, part of which fix is this civil resolution tribunal approach.
Obviously, I regret the fact that ICBC is in the financial state it’s
in. We could spend a lot of time talking about that, but unfortunately,
we can’t, because it’s not in this budget.
M. Lee: Structurally, then, the expenditure that’s required here is one
that…. What is the alternative, then, in terms of leaving it in
contingency, not doing this move?
[3:05 p.m.]
Hon. D. Eby: There are some good reasons to do this, one of which is increased
transparency. It allows for the opposition to understand where money is
being spent that might not be immediately apparent otherwise and the
public to understand where money is being spent. Not only that, a fixed
expense that’s expected to go forward into the future and move into the
base budget. So it provides that advantage.
If we didn’t do this, it would simply come out of contingency
funding, as it had in the previous decade, I guess, when the previous
government was in power. Because there is room in contingencies, there’s
a surplus budget and our Finance Minister has done a very good job of
preparing this budget and has retired the operating debt, we’re able to
do this and provide this transparency.
M. Lee: I guess in the absence of knowing what the contingency amount is
overall for this ministry…. Am I to take it to understand that there are
these dollars…? Well, let me ask it this way. Are there any other
additional funds in the contingency that aren’t being spent? Is it $7.9
million that’s left over?
Hon. D. Eby: Staff have made good use of the time while we were discussing
other issues to track down the total contingencies currently within the
Ministry of Attorney General. I say currently, because the Ministry of
Finance is always tracking what’s happening in the various ministries
and may allocate or pull back contingencies from ministries, depending
on whether or not anticipated outcomes are realized or not — whether or
not there were major cases, for example, within the Ministry of Attorney
General — and may reallocate those contingencies to other ministries
that may have had unanticipated expenses. The forest fires might be a
good example of that.
We currently have $39 million in operating contingencies. The
member may be curious about whether the $7 million plus we’re talking
about here is part of that, and it is. That $7.9 million would be coming
out of that $39 million in operating contingencies and to base
budget.
M. Lee: In terms of other uses of the contingency, then. There hasn’t been
any, in terms of all of the other new major court cases that have
occurred through the course of this year…. How much of that has utilized
or used up some of that remaining balance of the $39 million
contingency?
[3:10 p.m.]
Hon. D. Eby: As I understand it, the general philosophy of the contingencies
use is that there are anticipated expenses at the beginning of the year
that may be variable. They may not be a fixed number. Civil resolution
tribunal disputes related to strata and small claims — the program has
been around for a little bit of time. People are just starting to learn
about it. They don’t know how many cases they’re going to have. They
expect they’re going to see X level of cases. They’re budgeting to X
level of cases. The money is in contingency instead of in base budget
because it may be variable. Maybe fewer people bring cases; maybe more
people bring cases.
Once that stabilizes, then it moves out of contingency into base
budget so that we have an understanding, generally, of what a standard
year looks like for the civil resolution tribunal. So the contingencies
amounts are the best estimates of what the actual expenses are going to
be for the year. It may be that something happens, like we need to hire
Peter German to come in and do a bunch of work on anti-money-laundering.
There are expenses that are attached to that, like having the regulator
in the casinos at peak hours instead of just Monday to Friday, nine to
five.
When those things happen, you go to Treasury Board and they might
allocate a contingency to that. Or they might say, “No, we’re not going
to provide the funding for this request,” so you’ve got to make it up
out of your existing funding that you have.
The ministry is budgeted to use the contingencies, but as I say,
those are variable amounts. They’re in categories that may be higher or
lower. The Treasury Board monitors that. If contingencies are not being
used that were expected to be used, they could be reallocated to another
ministry.
I hope that helps the member to understand a little bit about that
general approach.
M. Lee: So many questions to be asked here. Let me just say that it does
actually introduce something that I did want to speak to the Attorney
General about in this session this afternoon. Again, thank you to the
Attorney General and his ministry for arranging a good meeting. Last
time, at the end of November, when we were doing the Attorney General
Statutes Amendments Act — another one — we had a good discussion around
the civil resolution tribunal, and the Attorney General invited me to
meet with the chair of the CRT.
I did do that last week. We did sit down with a member of the
Attorney General’s ministerial staff as well, to walk through the
current planning for the greater mandate for the CRT.
Just speaking from a budget planning point of view and what’s
occurring here within supplemental estimates on contingency and how the
Attorney General just laid that out, I’m curious to know what the
current assessment is by the ministry in terms of the expanded mandate
of the CRT, as to what the caseload of that tribunal will look like with
the increased mandate of the CRT to deal with minor injury claims,
claims up to $50,000, keeping in mind, of course, that the Attorney
General, through order-in-council, also passed a regulation in November
to expand the definition of minor injury to include brain injury and
concussion — elements that British Columbians did not expect to occur as
part of that minor injury definition.
I’m asking the Attorney General what the expectation is and, with
all of these changes that have occurred over the last six months, what
the current assessment is and what the planning might be, particularly
when we’re talking about a $4.4 million figure on contingency for the
CRT that’s moved over now to base. What is this government considering,
going forward, for the CRT?
[3:15 p.m.]
Hon. D. Eby: I guess this will save us some time in the ’19-20 estimates. I’m
happy to provide the member with whatever numbers I can. I’ll just
advise him that I don’t have all the staff here for the ’19-20, so I’ll
just do the best I can. We’re prepared for supplementary estimates, and
we do have these numbers, so I’m glad to share them with him. I’ll do my
best to share whatever we do have.
For ’19-20, the project resources for CRT related to the ICBC
disputes are $11.07 million. For ’20-21, $25.96 million. And ’21-22,
$30.76 million. Those would be annual expenditures anticipated for the
CRT.
Just to give you an idea about the volume that that reflects, the
anticipated volume — again, this is a variable expense. It’s very hard
to know how many disputes there will actually be. It could be
significantly more; it could be significantly less. So for ’19-20,
10,100. For ’20-21, 31,100. And for ’21-22, 31,750. These are in terms
of the anticipated claim dispute volumes as best as we can determine
with the information we have currently.
M. Lee: Thank you. I appreciate that that does relate to ’19-20. I
appreciate the Attorney General sharing that information with me in this
process. But it does actually go to the point, in terms of this new
area, as this government builds out the CRT in the manner that it just
referred to. Currently, my understanding is that, with ICBC, the numbers
fluctuate, but it’s about….
So 111,000 motor vehicle accidents per year is one figure for one
period of time recently, of which 55 or 60 percent might be represented.
So disputed claims might have a figure in the 55,000 to 60,000 category
number. Certainly, a figure that we’ve discussed, including at the end
of November, with the Attorney General, has been the figure which is the
10,000 to 15,000 range of individual claimants that might file a notice
of civil claim.
Of course, the CRT, in the way that they process claims coming
forward, is dealing with facilitation and mediation — trying to address
what might be a minor injury or a minor claim. So that figure is closer,
I think, to that 31,000 figure. If I could ask again to the Attorney
General….
I presume that, in the first year, it’s a 10,000 figure because of
the ramp-up — recognizing that, as of April 1, that’s just the first
year. It’s not all going to hit the CRT right away. But is 31,000,
thereabouts, the expected capacity that the government will want to plan
for in contingency in their budget in 2019-2020 and years to come? And
go through the same exercise that we’re going through today, which is
moving, in this case, a $4.4 million figure into base from contingency?
Is this what we can expect from this ministry going forward?
Hon. D. Eby: The member is asking about the ministry’s plans to use
contingencies in the future. Just as the previous government did, we
will be using contingencies for new programs where expenses are
variable.
The member is right to observe that, in later years, the number of
anticipated disputes going through the CRT is higher. The reason for
that is that it’s only for accidents happening on or after April 1, the
beginning of the fiscal year, that they are eligible to bring a dispute
to the civil resolution tribunal. So there is, as the member said, a
ramping-up process, which is why the number is closer to 10,000 disputes
for year 1.
[3:20 p.m.]
Now, the member is basically making a case for why we use
contingencies for new programs. The number might be higher; it might be
lower. So we will be using contingencies for this program until the
number stabilizes and we have sort of an understanding of what that’s
going to look like going forward.
Eventually, yes, the money will move into the base budget. Whether
it happens through the budget process itself or through supplementary
estimates, I wouldn’t want to hazard a guess about the Finance
Minister’s plans in the future. But that is the general process: start a
new program starting in contingencies until the expenses stabilize and
then shifting into base budget.
M. Lee: Because this budget process is going to take until, potentially,
the end of May, I’d just like to ask at this juncture, recognizing that
the CRT is implemented as of April 1: what is the Attorney General’s own
assessment of the state of preparedness, let’s say, for the
implementation of the changes at the CRT as of April 1?
Hon. D. Eby: I’m following it very closely, and I’m currently advised that
we’re anticipating that everything should launch as expected on April
M. Lee: I ask that question because if we look back at the history of the
CRT and, again, with the discussion around the $4.4 million to date….
The CRT continues to be — I think the Attorney General used the words,
in effect, “in a pilot, experimental phase.” It’s still transitioning to
a stable state.
In that planning to date, can the Attorney General indicate how
many disputes the CRT has administered through their process since the
initiation of the CRT itself?
Hon. D. Eby: In terms of applications for dispute resolution — disputes filed
and completed as of January 31, 2019 — 9,294 applications for dispute
resolution to the CRT. So 7,375 of those have been completed, and 1,919
of those were outstanding at December 31, 2018. And just to confirm,
those numbers are since the beginning of the tribunal accepting these
files.
M. Lee: I guess that I say that only because, to date, for the
expenditures, even in contingency of the $4.4 million, the volume level
is not the same, certainly, as what is expected after April 1. So with
that, in terms of the state of preparedness of the CRT for
that….
I do understand that it’s the view of the tribunal itself that
there will be an ability to scale up — literally, I think, that’s how it
has been described — for the tribunal. But in terms of the personnel,
for example, does the Attorney General believe, at this juncture, that
the CRT has the sufficient number of personnel, as well as training and
expertise, to see this change come about as of April 1?
Hon. D. Eby: I’m advised that as far as the project management goes, everything
is going as expected for launch as expected April 1, which means
handling the dispute levels required of it by British Columbians if they
have disputes with ICBC.
[3:25 p.m.]
M. Lee: Well, I wanted to also ask the Attorney General as to whether
there had been consideration for any other purpose of funding through
supplementary estimates in his ministry, in terms of areas of focus,
whether it’s through access to justice or any other initiatives that the
Attorney General has focused on in the last year.
Hon. D. Eby: I can’t speak for the internal process within the Ministry of
Finance, but in terms of my understanding, it’s the $7.9 million that
the member sees in front of him that was considered for moving out of
contingency.
M. Lee: We’ve talked a bit about some of the changes that have come about
in terms of rules of court. Those were initiatives that the Attorney
General took as of February 11 to limit the number of expert reports
that individuals who are seriously injured might be able to utilize for
the purpose of making their claim. This is had the effect, of course, of
changing the rules midstream for individuals who are with counsel,
raising their claims.
The second area is that it causes those plaintiffs the need to
make a decision as to which part of their claims they will have expert
reports support for. Also, there have been changes announced by the
Attorney General in early January which had the effect of, with many of
these complex claims, ICBC withdrawing their settlement offers and
tabling in their place significantly lower offers.
I’d ask to the Attorney General what impact the Attorney General
sees in this area in terms of additional impacts on court delays, court
processes that were not set up for these rule changes in terms of — what
I understand to be the case — cancellations of trial dates or
adjournments because the capacity is not there. So when we look at
contingency spending and the current supplemental estimate process, is
there any consideration by the Attorney General in terms of the impact
of these rule changes that the Attorney General has made to British
Columbians, midstream, which arguably has limited their rights to pursue
their claims in a court of law?
Hon. D. Eby: There’s a lot there. Obviously, some of it I agree with; some of
it I don’t. But I think I can summarize the response in a couple parts.
One is….
Unfortunately, I don’t have anyone here from ICBC today to break
down some of the projected financial implications and how they went
through that actuarial process. But what I can tell the member is that I
think it’s far too soon to say what the impact of any of these changes
will be, ultimately, in the long run.
It is much like the areas that we’ve been talking about that are
in contingency funding here. The outcomes are dependent on a number of
variables that are beyond our control, including the court’s
interpretation of the rule changes, the proclivity of plaintiff counsel
to go to court or not, or to settle, or a number of different and
variable factors. I think it’s too soon to say what the impact of any of
these things will be or whether they will even have an
impact.
[3:30 p.m.]
We’re certainly hopeful that they will assist us as part of a
larger suite of reforms to make litigation more efficient and get away
from the use of adversarial experts. That’s a hopeful outcome that we
have, but we’ll see how things work out on the ground.
M. Lee: Well, I would just observe…. This is a lot of change, of course,
that’s happening, which has an impact across all claims, not just at the
CRT level.
[J. Isaacs in the chair.]
What is the expectation in terms of the percentage of cases that
the CRT would be asked to administer and adjudicate through its
processes versus the percentage that we’re talking about that are
affected by these rule changes?
Hon. D. Eby: Again, challenging for me to provide numbers to the member, but I
can say broadly that 80 percent of cases that are currently filed in
B.C. Supreme Court, with all of the attendant length of dispute and
attendant costs for disbursements, and so on, will no longer be in the
B.C. Supreme Court. Those disputes will be in the jurisdiction of the
civil resolution tribunal. It will be a very significant change. That
change is effective April 1.
As far as what number of claims 80 percent represents, I would
need the ICBC folks here with me to provide that number to the member.
But it is a significant shift of cases out of B.C. Supreme Court into
the tribunal process.
M. Lee: With the amount of shift that is occurring here, does the Attorney
General foresee additional budgetary expense relating to these changes,
from his ministry?
Hon. D. Eby: We certainly do anticipate additional expense. I ran the member
through the anticipated expenses in relation to the CRT’s taking on of
the ICBC expenses. There is some time spent by our executive director of
the tribunal transformation initiative within the Ministry of Attorney
General to work on this, as well as within the CRT’s base budget to
spend time working on this.
The majority of the costs associated are in contingencies, and I
ran the numbers through the projections for the next three years in
terms of caseload and anticipated expenses. They’re in contingencies
because this number is anticipated to be quite variable.
M. Lee: I just wanted to reflect on one question that came up in the
course of the Attorney General’s responses to me when I’ve referred to
these changes in the rules of court and limitations on expert reports,
the withdrawal of offers and the substitution of what some people would
term, and many would see as, lowball offers back to British Columbians —
really, effectively, pushing out the kind of potential for settlements
and causing, arguably, increased legal costs through the
courts.
The Attorney General and I would differ on that in terms of what
we would expect coming out of that. We can say that we don’t know today
what’s going to happen in the future, but certainly, we are seeing the
challenges within the court system, from what I’m hearing from many
members of the legal community.
Having said all that, I’m curious, again, as to how the Attorney
General sees his role in responding to these questions in these
supplemental estimates on these topics versus how he sees his role as
the minister responsible for ICBC.
[3:35 p.m.]
I appreciate that we have opportunities, of course, in estimates
to have that discussion. But it will just be important for me to
understand how the Attorney General separates his role in making changes
to the rules on expert reports and settlement offers — which, again,
falls within the confines of the Attorney General as the chief legal
officer for the province — versus his responsibility for ICBC, which
arguably is the beneficiary of these rule changes in the area of what
has been what the Attorney General has focused on: cost containment for
the benefit of the province but also on the backs of many vulnerable and
injured plaintiffs, individuals who are seeking that sort of
relief.
I’m curious, again, as to how he separates his two roles in that
regard.
Hon. D. Eby: Obviously, there’s a difference in perspective between the member
in the opposition and me in terms of what the best way is to resolve 80
percent of the disputes that people have with ICBC. The member clearly
thinks that B.C. Supreme Court, with all of its attendant processes and
expenses linked to it, is the best way to resolve these
disputes.
I disagree. I have about a billion reasons why I disagree with
that assessment, not just a billion reasons in terms of the cost but the
misery of waiting multiple years to have your dispute finally resolved,
to have to pay massive expenses to have your dispute with ICBC
resolved.
The CRT has had remarkable success in resolving disputes to date.
It has done a very good job of resolving these disputes. We think that
they will be able to provide fair, independent decision-making around
disputes that people have with ICBC in relation to benefits, in relation
to their entitlements under their insurance policies.
I will note that those entitlements are not going down. Those
entitlements are going up, doubling the lifetime benefit for people who
are injured in accidents from $150,000 to $300,000, increasing the wage
loss, increasing homemaking allowance, increasing the number of service
providers that can provide covered services to people who are injured in
an accident. And then, increasing the rate at which those service
providers are paid, so it’s actually the market rate for a
physiotherapist, not a fraction of what a physiotherapist charges. This
will make a real difference in the quality of life of people who are
injured in accidents.
I don’t understand why the member doesn’t support that, but he’s
entitled to that opinion. Frankly, it may explain, to some degree, how
we ended up in this mess with ICBC.
I think that the proposal to shift matters to a civil resolution
tribunal will provide expedited resolution of disputes, will provide
cost savings that allow people to have increased access to benefits,
more care. They’re going to get better faster. It will provide cost
reductions for all British Columbians that buy car insurance.
These are changes that were made in every province in Canada
except for B.C. for some reason. We are reaping the costs of the fact
that these changes weren’t made when they were recommended to the
previous government in a report. The government cut the page out of that
report before releasing it to the public, rather than just releasing the
report to the public, where it said: “Hey, you might want to make these
changes. Everyone else is. You’re facing some major costs coming down
the road.” If only they’d done that, I think we’d be in a different
situation today. They didn’t, but we are.
M. Lee: There are probably a couple of points we could come back to on
CRT, but just not to lose the question in the response…. In my
discussions, let’s say, with the Attorney General — in the course of
last year’s estimates, through the bills relating to CRT and minor
injury, the Attorney General Statutes Amendment bill in November and now
currently — it’s fair to say that I’m becoming increasingly concerned
when I see the changes that have been brought forward by the Attorney
General.
In the face of what I understood to be the case, which was the
consultation that he did with members of the legal committee, members of
the judiciary and the members of the CRT about how to deal with expert
reports, for example….
[3:40 p.m.]
In the face of that, recognizing that there should be greater
proportionality in terms of the cost, what I understand when looking at
that report…. Close to ten different recommendations were made from that
group. Yet the Attorney General went forward with a recommendation or a
path that was not part of those recommendations. That’s from my
understanding.
My concern is increasing in terms of the language used for cost
containment around ICBC versus people’s individual rights, particularly
when we’re talking about individual claimants who have very complex
claims that might involve brain injuries, spinal cord injuries, internal
injuries, psychological or chronic pain issues. These are five
categories of potential reports that experts would need to provide to a
court in order for a claimant to get what he or she needs to seek.
People who have been quite severely injured in car accidents in their
early years, for example — they can’t be cut off on that
basis.
As we’re talking about this, we all want to ensure that there’s
efficient, orderly access to justice for British Columbians. The concern
is with the on-line dispute mechanism that is being put onto British
Columbians through the CRT, with the ramp-up of significant claims that
have to go through that process, plus these rule changes.
I’m concerned about the separation of duties for the Attorney
General in his role as the chief legal officer when he goes through that
consultation process and then changes gears on British Columbians at the
outcome of that. I’m concerned as to that role versus the role that he
has as the minister responsible for ICBC.
That is, I think, evident in the course of these supplemental
estimates, in terms of his responses. That’s the reason why I’m raising
this question at this time. I think it’s fundamental to the kinds of
discussions I’m able to have with the Attorney General in this House, in
the course of estimates to come and the completion of these supplemental
estimates.
Again, I would invite the Attorney General, if he would please
address the question I’m raising in terms of the concern regarding the
separation of duties between, on one hand, his role as the Attorney
General, chief legal officer, versus, on the other hand, minister
responsible for ICBC.
Hon. D. Eby: I wish the member would just come out and say what his concern is,
his growing concern. I don’t understand what he’s talking about. Is he
suggesting that the reforms that have been put forward are illegal?
Well, actually, the reforms around experts are in place in the United
Kingdom and Australia — in the United Kingdom, one expert only allowed;
in Australia, no experts allowed without leave of the court.
Is he suggesting that they’re improper? Manitoba and Saskatchewan
both have car insurance systems where you’re not allowed to sue. It’s
called no-fault. You’re literally not allowed to sue. I’m struggling to
understand what the member’s concern is. I think the concern is simply
that change is being made. I don’t think that’s enough. I think you need
to say what the concern is. What is the actual concern that you
have?
The argument for change is multiple. It has many tentacles, the
argument for change. One is the fact that the non-partisan legal expert
group looking at the civil justice system in British Columbia in 2006,
the Civil Justice Reform Working Group, came together and said: “People
say that the legal system takes too long. They say that it’s too
expensive; they say that it’s too complex. We have a series of
recommendations to fix this.”
One of the categories that they identified as a major driver of
costs: expert reports — adversarial expert reports in particular, where
each side gets an expert. Those experts, because of human nature, want
to do the best for their side, and then there’s this battle of the
experts. And the judge is expected to know which expert is more
credible, which expert is more believable, on incredibly complex,
technical matters.
That’s why the U.K. and Australia moved to a model of joint
experts. That is the reform related to the court rule that the member
addressed, about eliminating experts. It doesn’t actually limit joint
experts. It’s intended to encourage the two sides to come together and
say, “This is a credible expert. We both have confidence that this
person will do a good assessment,” and then that person will provide
evidence to the court as a joint expert.
[3:45 p.m.]
You still get to have three adversarial experts as well. You still
get to have your expert, your plaintiff expert, your defence expert —
for three — and then for any additional experts, you’ve got to come
together with the other side. You’ve got to choose someone who’s
credible to both sides and have that person present the information to
the court.
The member is concerned about that approach. Okay, I hear that. I
do think that he should maybe take his concern a step further and
articulate exactly what it is about the reforms that he’s concerned
about. When we live in a country where people are literally not allowed
to sue in car accidents — that is not what is proposed here. When other
jurisdictions have totally banned experts — that is not what is proposed
here. It’s a very modest limit of three adversarial experts and then
joint experts after that.
What is it, exactly, that the concern is? I will note that we are
well away now from supplemental estimates, but I guess the member won
one on me, in the sense that I couldn’t resist responding.
M. Lee: Well, I appreciate that we’ve had a great opportunity to have
those discussions, in this House, between the Attorney General and
myself. That’s partly because, I think, of the complexity of the roles.
I will just conclude by saying that, specifically, the concern is over
the multiple roles that the Attorney General carries. One is the
responsibility to be the chief legal officer for this province, advising
the Premier and the cabinet. The role that he played during the
referendum, for example, comes to mind.
The second, of course, in no particular order, is the minister
responsible for ICBC. As these changes are coming forward, does the
Attorney General look at these changes through the lens of cost
containment, as the minister responsible for ICBC, or through the lens
of being the chief legal officer to this province, ensuring that
individuals’ rights are protected?
There is, of course, great concern in terms of the need for expert
reports, the manner in which this meat chart policy that ICBC now has….
There was a report that the Attorney General brought out in early
January or December. That was the litigation review, which showed no
systemic concern. At least, that was the headline. But clearly there was
a change by ICBC coming forward, in terms of how they managed their
litigation process.
These are the topics that, I think, are quite concerning, in terms
of the pattern right now, of the way this has been approached, in the
face of the concerns from members of the legal community. I look forward
to discussing that further with the Attorney General in estimates and at
other opportunities. I do thank the Attorney General today and the
members of the ministry staff for that opportunity to have this
discussion.
Hon. D. Eby: I can’t let go unchallenged the member’s suggestion that ICBC has
a “meat chart.” They do not have a meat chart. That is incorrect; the
member knows it’s incorrect. He shouldn’t repeat it.
That’s the end of my closing statement. I thank the member for his
questions on the supplementary estimates, and I thank my staff for
assistance.
Vote 14(S): ministry operations, $7,900,000 — approved.
The Chair: A five-minute recess, please.
The committee recessed from 3:49 p.m. to 3:57 p.m.
[J. Isaacs in the chair.]
SUPPLEMENTARY ESTIMATES:
MINISTRY OF CHILDREN
AND
FAMILY DEVELOPMENT
On Vote 18(S): ministry operations, $19,900,000.
Hon. K. Conroy: Before we go into the supplementary estimates, I ask leave of the
House that the Minister of State for Child Care can speak from, and
answer questions in, the seat in which she is in. It isn’t her regular
seat, but in order to keep us together and streamline the process, I’m
asking leave from the House for that.
Leave granted.
Hon. K. Conroy: I’d like to begin by acknowledging we are here today on the
traditional territory of Lekwungen-speaking people, including the
Songhees and Esquimalt First Nations.
It’s a real honour to serve as the Minister of Children and Family
Development, working with a team that places people, families and
communities at the heart of what we do.
Before we get started, I’d like to thank the many members of the
staff who have worked tirelessly to develop policy and implement the
initiatives that we’ve launched under Childcare B.C. In particular,
thanks to my executive team that is here with us today: Allison Bond,
our Deputy Minister; Christine Massey, ADM for early years and
inclusion; Philip Twyford, ADM, finance and corporate services. The work
that they have done — and will continue to do over the coming months —
is critical to the success of our child care plan. Without them, we
would not have come as far as we have over the past 12
months.
I also want to pay tribute and acknowledge my colleague the
Minister of State, who has been tireless in her work on this file. Her
passion and dedication is also why we have gotten as far as we have this
quickly.
Our government is committed to giving families access to
affordable, quality child care throughout this province. Last February
we announced a three-year $1 billion investment through our Childcare
B.C. plan to lay the groundwork for universal child care. This plan has
last year we’ve worked tirelessly to introduce supports in each
area.
[4:00 p.m.]
Our first priority was making child care more affordable for
families. That’s why we moved quickly to introduce the child care fee
reduction initiative in April 2018, followed by the affordable child
care benefit in September. Together, these two supports can save B.C.
families up to $19,200 a year per child on the cost of child care alone,
meaning that some parents are already paying the equivalent of $10 a day
or less for child care.
This has also been a long-term problem concerning the availability
of child care in B.C., and infant and toddler spaces have been
particularly hard to find. We’ve launched several programs to support
the creation of new licensed child care spaces and bring relief to
parents right across the province.
The childcare B.C. new spaces fund provides up to $1 million for
providers to create new licensed spaces or to expand an existing child
care facility. We introduced this program in July 2018 with several key
changes over the previous major capital program, including an increase
to the amount of funding available and an end to fixed application
windows.
We also launched the childcare B.C. maintenance fund in June 2018
to help providers with the cost of unexpected and emergency repairs, to
keep their facilities safe for children and maintain licensing
standards. We’ve seen a great demand for this initiative and have funded
more than 700 individual applications to date.
Alongside the new spaces fund and the maintenance fund, we
launched the start-up grant program, also in June of 2018. This program
is helping existing unlicensed providers or those new to the child care
field to upgrade their qualifications, as well as supporting those who
may currently be working in the field at an existing provider but who
want to branch out on their own.
Essential to all of our work with child care B.C., of course, is
our providers. They are the heart of our child care system, but for too
long, they haven’t received the recognition that they deserve. We are
improving the quality of B.C.’s child care sector and delivering
improved supports to the people who are caring for our children every
day.
I’m so proud of what we’ve achieved over the last 12 months, but
we can’t rest there. We’ve made a commitment to B.C. parents, and we’re
going to keep it. The budget item we are looking at today in
supplementary items is directly related to our government’s goal of
investing in people and making life more affordable.
I’m proud to present supplementary estimates for an additional
$19.9 million for child care initiatives to support the child care fee
reduction initiative, the childcare B.C. maintenance fund and other
services. This funding will support the higher-than-expected first-year
expenditures on our programming, supporting the child care operating
funding and the child care fee reduction initiative, as well as
higher-than-anticipated uptake on the childcare maintenance
fund.
The Minister of State and I look forward to the questions about
these supplementary estimates.
L. Throness: I want to thank both ministers for appearing today to account for
their spending. I would point out that, together, they have the
fifth-largest budget among the ministries, and therefore they warrant
the closest scrutiny. So I’m going right to questions.
The first question is about detail. The supplementary estimates
describe the $19.9 million in funds as support for the child care fee
reduction initiative, the maintenance fund and other services. These
descriptions are quite broad. They’re not terribly
descriptive.
I’m wondering if the minister can break down these general
categories into their component parts, so we can see exactly how much is
planned to be spent on what. For example, what are “other services,” and
so on? Could we get as much detail from the ministers as
possible?
[4:05 p.m.]
Hon. K. Chen: To answer the first question — and thanks to the critic for the
question — the child care operating fund and the child care fee
reduction initiative have had significantly more takeup from operators
across the province than we had anticipated in the first year of this
great initiative. We’re really thrilled to report that more parents than
we originally anticipated are benefiting from the fee reduction in those
centres across the province.
That’s why we’ve also made improvements to our adjudication
process to address issues operators have identified as we continue to
listen, learn, make sure our process continues to work better and
better, also increase transparency and simplify the application
process.
The result of the work during the past year, working with
providers, is that for the operating fund and CCFRI, our budget this
year is going from its original $76.73 million to $95.63 million, which
is an increase, through these supplementary estimates, of about $18.9
million. So that’s the first item.
The second item is the child care maintenance funding, which
provides child care operators with greater financial support for
maintaining and repairing their child care facilities. The budget for
this program was originally $1.36 million, and as a result of really
good participation, higher than we had expected, the supplementary
estimate required is an increase of $1 million to support improvement in
child care facilities to improve high quality.
The total expenditure for this fiscal year is $2.36 million. So
those are the two items that we are working on for the supplementary
estimates. We’re really pleased that many British Columbian families are
benefiting from those two programs. More parents are getting the fee
reduction while we enhance the services of quality child care
services.
L. Throness: Could I ask, then, if all of those extra moneys, all of the $19.9
million, are being spent on funds that are going to parents in the fee
reduction and to providers in the child care maintenance
fund?
Hon. K. Chen: Yes, the funding will be going to support families and
providers.
L. Throness: I’m wondering about when it says “other services.” What does other
services mean in the supplementary estimates?
Hon. K. Chen: To clarify, it’s the two items that are for the supplementary
estimates. So the two items that we’ve mentioned.
L. Throness: These are estimates, which I think implies that they are planned
future expenditures. Has any of this money already been spent? If not,
when will it be spent?
[4:10 p.m.]
Hon. K. Chen: This amount is based on the current expenditure and also our
forecast expenditure that’s going to go on till the end of March. We
want to make sure this funding is available to support the needs of the
two programs.
L. Throness: The minister didn’t answer my question. My question was: has any
of the money been spent?
Hon. K. Chen: Yes, it has.
L. Throness: I’m wondering about the purpose, then, of supplementary estimates.
An estimate is a request. Is she asking for permission or forgiveness?
How much has been spent so far without the permission of the
House?
Hon. K. Conroy: Actually, supplementary estimates are a normal government
practice. They were very common in B.C. until a legislative change a
decade ago ended their use while B.C. maintained an operating debt.
Government eliminated that operating debt, the first time in 40 years,
as announced in the second quarterly report last November. Our fiscal
picture is strong, with the highest GDP growth in the country and the
lowest unemployment rate. So now it means we can put these resources to
work on priority initiatives that help out people in the
province.
Also, supplementary estimates provide an opportunity for
government to fund existing programs, or parts of programs, through the
ministry appropriations rather than using the contingencies vote.
Sometimes a contingencies vote is used to cover program costs, but now
that we’re close to the end of the fiscal year and we have a high degree
of certainty about the program costs, we can move some of that program
funding out of contingencies, out of that envelope, into the ministry
appropriations. And in these cases, this is a shift in funding sources
for these programs.
L. Throness: Forgive me. I’m a fairly new MLA, so I don’t really understand
this because this is the first supplementary estimates, as the minister
stated, in about a decade.
I’m just wondering about her legal authority to spend money that
has not been approved by the House. I understand that this may be a
practice, but on what legal authority does the minister spend this
money?
[4:15 p.m.]
Hon. K. Conroy: I want to make it clear to the member that we have not exceeded
our authorized appropriation in any way, shape or form. In fact, because
of the strong economy, because of the position that our government finds
itself in, we are able to utilize the supplementary estimates, as
opposed to using contingencies, which is a benefit to all the programs
and to the people that are accessing them.
L. Throness: I’ll move on to another question. Last year I asked if the
minister had delegated any authority to the minister of state. Has she
delegated any authorities in the past year?
[4:20 p.m.]
Hon. K. Conroy: This answer is no. I haven’t delegated any statutory authority
decision-making to the minister of state.
L. Throness: The Balanced Budget and Ministerial Accountability Act, given that
the minister is solely in charge, requires that the minister’s salary be
reduced by 20 percent for overspending her budget. Will the minister
receive a reduction in pay for going over her budget this
year?
Hon. K. Conroy: The answer is no, because our budget is in line. It’s not been
exceeded in any way, shape or form. So the answer to the member’s
question is no.
L. Throness: I understand that. There may be a legal explanation for that, but
the fact is that the minister’s budget was set a year ago. She’s gone
over her budget, so could she explain to the public why she shouldn’t
receive some kind of sanctions, some kind of sign of disapproval for
overspending by nearly $20 million? That’s why we have supplementary
estimates.
Hon. K. Conroy: I understand that the member doesn’t understand supplementary
estimates, because they haven’t been utilized in the times he was
sitting on this side of the House. Because you need a balanced operating
budget in order to do that, and for the first time in 40 years, we
actually have that in this province. That’s why we are going ahead with
supplementary estimates.
Just to walk the member through, we have not exceeded our budget.
It’s in line. It’s in place. We have not exceeded. We are using
supplementary estimates instead of contingency funds. Contingency funds
are part of our budget, part of our approved, authorized budget that was
authorized this time last year. So those funds are part of our budget
that we are not using. We are using the supplementary estimates
instead.
[4:25 p.m.]
I want to comment on the member’s comment that British Columbians
would want to know about this, but I think what’s even more important is
we are just so incredibly pleased that we have been able to benefit so
many British Columbians’ lives with this program. There’s not a week
that goes by when either myself or the minister of state is not
approached by someone on the street to tell us how much this program has
benefited them, how much of a difference this has made to families’
lives. They can finally start to afford things like saving a down
payment for a home, saving to buy a car.
I got a hug the other day in Safeway because a woman said she can
finally buy good-quality food. She can buy vegetables and fruit for her
kids, and she was so happy about it. I think people in B.C. want to know
that. They want to know that these supplementary estimates are going to
help us to continue to provide those services to people in B.C.,
continue to provide the fee reductions, continue to expand the spaces
that we need in this province. I think that’s what people want to hear.
Why are we doing supplementary estimates? So that we can continue to
benefit families and children in this province.
L. Throness: As I understand it, there were contingency funds available, but
the minister chose not no use those contingency funds and instead came
back to the House for more. Can the minister explain why she didn’t use
contingency funds if they were available?
Hon. K. Conroy: Once again, I’ll explain that supplementary estimates are a very
normal government practice. They were common in B.C. until a legislative
change about a decade ago that ended their use while B.C. maintained an
operating debt. As government, we’ve eliminated that operating
debt.
For the first time in 40 years, our fiscal picture is very strong.
We no longer have an operating debt. We have, actually, the highest GDP
in the country and the lowest unemployment. This means we can put these
resources to work for people. Our government knows that investing in
B.C. and in the people of B.C. and tackling these hard programs is the
best way to build a strong economy and a more secure future.
We’ve been hearing from parents: what better way to build a strong
economy than by investing in child care? It’s investing in child care so
parents can go back to work — to ensure that they can go to work and
invest back into the province. The people we’re talking to aren’t
jetting off to some foreign place, taking holidays. They are spending
their money back in the community. They are taking the money they are
saving and spending it right back in the community. That’s why
supplementary estimates are so important.
They also provide an opportunity for government to fund existing
programs or parts of programs through the ministry appropriations rather
than through the contingencies vote. Sometimes the contingencies vote is
used to cover program costs. But again, now that we’re close to the end
of the fiscal year and we have a very high degree of certainty about
program costs, we can move some of that program funding out of the
contingencies envelope and into ministry appropriations.
In this case, it’s a shift in funding sources for these programs.
Again, it’s an excellent way, through supplementary estimates, to ensure
we are supporting families in this province, ensure we’re putting more
money into parents’ pockets, make sure we are increasing spaces so that
we can make more child care for parents in the province.
[4:30 p.m.]
L. Throness: I’m confused by what the minister is saying. When you strip away
the rhetoric, she’s saying that she had the money. She had contingency
funds. They were available, but she chose not to use them. She’s letting
that money sit in the bank, I guess, or in the ledger of the ministry,
and she comes back to the House asking for more.
I’m simply wondering if she could explain why she didn’t want to
use those contingency funds and instead wanted to go with supplementary
estimates. Why was it necessary that she come back to the House for more
money?
[R. Chouhan in the chair.]
Hon. K. Conroy: Again, I want to reiterate that supplementary estimates is a
normal practice as long as you do not have an operating debt, which we
no longer have — just to reiterate that.
I probably am quoting our esteemed Attorney General, a lawyer who
would understand the law and legal implications, who said that
supplementary estimates actually improve transparency. It gives an
opportunity for members, such as the member, to question where we’re
going with the spending and why we’re spending it.
We are spending it to improve the lives of British Columbians. We
have a transparency here now that we can do this. We’re taking this
additional almost $20 million to ensure that we’re providing better
services for British Columbians.
L. Throness: Well, it’s amazing to me that the minister says that she wants to
be transparent, but she refuses to answer the question. So let me pose
the question in a different way. Will the contingency funds that she did
not use go back to general revenue then, or will it be carried over into
next year’s budget?
[4:35 p.m.]
Hon. K. Conroy: Again, supplementary estimates do provide transparency. They
provide transparency about the programs that are detailed for these
supplementary estimates. Actually, the minister of state and I look
forward to the member’s questions about the programs that are being
funded through the supplementary estimates.
L. Throness: You know, I’m just stunned that the minister won’t answer my
question. Anyway, I’ll continue on. I’ll soldier on here.
The minister would call it unanticipated demand, and I would call
it going over budget. When did the minister become aware that there was
unanticipated demand and that she would choose — not need, but choose —
to bring forward the supplementary estimates?
[4:40 p.m.]
Hon. K. Chen: I’m very happy to say and I think it’s important to point out that
our two programs for which we’re doing the supplementary estimates here
today are going very, very well since we launched the Childcare B.C.
program.
The first one is the child care fee reduction program, for which
we work with providers so that they can join this program. It’s
non-income-tested, and it provides a fee reduction of up to $350 per
child. Many, many families — now we have over 52,000 children — are
benefiting from those spaces. Like the minister for MCFD has mentioned,
that means a lot of parents will be able to put more money into their
housing costs, putting quality food on the table and making sure that
they can balance their living costs. It means a lot to many
families.
We’re really happy to say that while, originally, we budgeted at
about 70 percent intake for this program, now it’s at 88 percent. This
means that this new program — the first time in B.C. that we’re working
with providers to lower parent fees, the first time that we’re expecting
a significant decline of our affordability measures — is going really
well. I think it’s good news for all those families who are benefiting
from those spaces.
The 12 percent difference, the overwhelmingly positive feedback in
the enrolment that we’re getting…. Each space means one more child and
one more family is getting some relief, finally, from their high-cost
child care fees. They’ve struggled for many, many years with the high
cost of living, high cost of child care, high cost of housing. Now they
can have a little bit of room to breathe. I’m really happy that we’re
able to do these supplementary estimates to be able to ensure that we
continue to support those families.
The second item, of course, is the maintenance fund, which is
another important way that we are supporting child care providers and
educators, who work so hard every single day to support our young
children and families in child care spaces. Currently, we have approved
funding for 716 applications. The intake has been, overwhelmingly,
really positive, which means an extra $1 million that is going into this
program. Those spaces will mean that we’re supporting providers, whether
they’re private or non-profit, to maintain the health and safety and
ensure the quality of those spaces.
One provider, for example, told me that she has always been hoping
to get some money. She’s a small, family-based provider hoping to get
some funding to support her to renovate her floor, because she started
to get concerned about safety issues. Then, because of this funding,
she’s able to do that, so children can enjoy high-quality early learning
in a safe environment. We’re really proud of those intakes, and those
dollars are really going to benefit providers, educators, children and
families in our communities.
L. Throness: Well, I appreciate the speech, but I don’t know if the minister
even heard my question, because she didn’t address it at all. I would
point out to the House that she has not answered as to when she became
aware that the demand was unanticipated and that they had erred in
anticipating demand.
The minister spends about $150 million a month. It is an avalanche
of money that flows out of her ministry. My question is: when she began
to realize that the demand was unanticipated, that they had made a
mistake, that the integrity of her budget was in question, what concrete
steps did she take to instruct her officials to strive to bring the
budget under control and to manage that within the envelope that the
House approved a year ago?
[4:45 p.m.]
Hon. K. Chen: This is really the first time — after parents and families have
been struggling with the child care chaos, with the high cost of child
care — that we are working together with providers, through this fee
reduction initiative, to make sure that we can help parents to provide
the first relief ever and lower parent fees for the first time in B.C.’s
history, through working with providers.
The fee reduction program. Because it’s a new program, we’ve been
closely managing and monitoring this program really well. We’re learning
along the way, through our conversations and engagement with providers.
It’s been a huge success.
I remember that when the program was first out, the member
opposite was very concerned about low intake. Now we’ve exceeded our
expectations. It’s 88 percent of the providers that are joining the
program, close to 90 percent. There are some providers, the Indigenous
providers, that don’t charge a fee at all and that have not been in the
program, but we’re working with them to make sure that we continue to
fund the fee reduction initiative to support families. Every space that
we’re funding means that one more family will be able to get that extra
relief that they have been awaiting for many years.
I think it is an important celebration. We are working within our
budget. I hope the member opposite is not suggesting that — with this
overwhelmingly good demand from parents and providers to join this
program — we should stop funding this program.
[4:50 p.m.]
If the member truly believes in investing in children and
families, I hope these supplementary estimates are really a celebration
of the success of how this program, for the first year, has gone so
well. We need to continue this work to support all families and children
that are benefiting from those two programs.
L. Throness: We are truly ships that pass in the night on this discussion,
because I’m asking questions and not getting any answers or even a
remote response to what I’m saying. I find that alarming, and I want to
tell you why. I think these supplementary estimates really bring into
question the management practices of the government.
Let me go through a recap of what we’ve learned so far. As soon as
the operating debt is eliminated, the supplementary estimates come out
within a few months. They’re not small. They’re $375 million. That’s
almost 1 percent of the total 2018 budget.
Next, the ministry is spending without permission. They’ve already
started spending, even before the supplementary estimates were put out.
Although the estimates for 2018 were approved by this House, these ones
have not been. But they’re already spending, and they don’t know how
much, or maybe they’re not telling how much. I don’t know.
Next, they’ve asked permission for more money when they didn’t
need that money, when they’ve already said that they have contingency
funds in place. But they’ve come out asking for supplementary estimates
anyway. Then they won’t say what they’re doing with their existing
contingency funds. They refuse to say whether they’re giving them back
to general revenue, whether they’re transferring them to next year or
whether they’re just sitting there, nor why they didn’t use
them.
Finally, they refuse to answer whether they took any steps to
control the overage, even though they’re spending $150 million a month,
which is an enormous fiduciary responsibility.
My question is this: has the minister built any contingency funds
into her 2019-2020 budget so that this doesn’t happen again?
[4:55 p.m.]
Hon. K. Conroy: I just want to clarify this for the member to make sure he
understands it. Contingencies are held in the Ministry of Finance.
Supplementary estimates provide an opportunity for government to fund
existing programs or parts of a program through ministry appropriations,
rather than through the contingencies vote. This offers transparency so
that the opposition can understand where money is being spent. So this
is about transparency and being upfront with where money is being
spent.
L. Throness: I actually suspect that they wanted the contingency funds for
spending in other areas, and that’s why they decided to go to
supplementary estimates. Regardless, I’m going to move on here and
target the fee reduction and just talk about the fee reduction
initiative for a moment.
The minister or her officials knew very well a year ago, when the
fee reduction program began, how many eligible spaces there would be.
She could have set a maximum budget for that, so that if there was 100
percent buy-in to the program, then all those spaces could have been
funded in the budget. But perhaps she expected that not every provider
would opt into the program. What was her assumption for opt-in rates
when she set the budget for the fee reduction initiative one year
ago?
Hon. K. Chen: We are very thrilled that this is a new program. The fee reduction
is a program to help parents lower parent fees. In only a year, the
program has been overwhelmingly very successful. The 70 percent intake
that we set…. Because this is a new program, we want to encourage
providers to join, to help us to work together to make sure we reduce
child care fees.
When we first started this work as a new government with a new
program, one of the biggest challenges we had was that child care was
never a priority for the former government for many, many years. This is
the first time we’re pulling the data, pulling the information together
to work with providers.
We set that as a number to hope that we’ll be able to have the
majority of providers join this program. It is an option, not mandatory
program. Providers can join and get extra support for their operating
funds. We’re providing more benefits, not just for families but also for
providers that we work together with. I’m really happy to say, through
these supplementary estimates, that our current intake of 88 percent
means 11,000 more spaces than we expected. Our getting this fee
reduction is overwhelmingly a good success, and those 11,000 spaces
represent 11,000 children.
[5:00 p.m.]
Like the Minister of Children and Family Development has
mentioned, every family has a story. Every family means that when they
are getting this relief, they’ll be able to pay more for their
groceries. They’ll be able to pay more for their housing and
transportation costs. I think this money is significantly supporting
families, children and British Columbians in our communities.
L. Throness: The minister assumed that only 70 percent of providers would opt
in. She was therefore anticipating opposition. I can’t imagine not being
able to give away 19 million bucks. But the reason she was not able to
give that away is because it was a coercive program. So they must have
assumed that 30 percent of providers would not opt in. I think it’s sad
that they would do that.
My next question is…. So 88 percent of child care spaces have
opted in. Just so I know, what percentage of eligible providers does
this represent?
Hon. K. Chen: The eligible providers with the spaces to choose to opt in is
about 60,089 spaces. The ones that applied to opt in, with our latest
data, is 54,498 spaces.
L. Throness: I thank the minister, but that wasn’t my question.
My question is: what percentage of eligible providers does this
represent? Does the minister not know that?
Hon. K. Chen: I hope I understand the member opposite’s question.
If you’re talking about the number of providers, we have it as
organizations that we have. The actual eligible organizations to opt
into this program is 2,988 organizations. The ones that have applied to
opt in as organizations is 2,746 organizations and providers. The
percentage of those organizations that have applied to opt in is 92
percent of the organizations.
L. Throness: So is the extra amount of $19 million, or nearly that, being
requested on the assumption that 100 percent of providers — and their
spaces, of course — will opt in? If not, what is her prevailing
assumption now in making up the supplementary estimates?
[5:05 p.m.]
Hon. K. Chen: This funding would accommodate this very successful program until
the end of the year, which is the end of March.
L. Throness: Again, I would point out that the minister didn’t answer my
question. But let me soldier on.
The child care maintenance fund is out of money, and only
emergency applications for repairs are being accepted, which is the
reason why we’re adding $1 million. Will these estimates replenish the
fund and be able to address all the applications that are before it and
allow it to be opened up again? When will that money be spent? Will that
be spent in this fiscal year?
Hon. K. Chen: Yes, the funding is to accommodate the overwhelmingly successful
demand for this year. Now the program is only open for emergencies. When
I said “for this year,” it’s the end of the fiscal year, just to
clarify.
L. Throness: I’ve inquired with some former ministers, and they tell me that
there’s always some slippage in ministers’ budgets. Does the minister
forecast any unspent dollars, any slippage in her budget this year that
would go back into general revenue? If so, how much is that
slippage?
[5:10 p.m.]
Hon. K. Conroy: I just want to tell the member that we carefully manage our
budget. Based on current spending and projections, we will fully utilize
the budget to meet the needs of children and families right across the
province. We are not anticipating any slippage.
L. Throness: Sometimes permission can be given from the centre for carryovers
in the next fiscal year. Are there any funds in the minister’s budget
that she’s planning to carry over into fiscal 2019-2020?
Hon. K. Conroy: The answer would be no.
L. Throness: At times, in the public service, officials will come to the end of
the fiscal year — and we all know about that — in the month of March.
They will race to spend their entire budget before the funds disappear
at the end of the fiscal year. We call it March Madness. Can the
minister assure us that there will be no accelerated amount of $20
million or more that will be needlessly spent in the month of March —
which begins tomorrow, by the way — that instead could have been used to
manage this overage?
Hon. K. Conroy: The answer would be no.
L. Throness: Thanks to the minister. How can the minister assure us that she
will not have unanticipated demand again next year, perhaps by the same
amount, perhaps by much more? Has she planned for an overall $20 million
increase in the program areas covered by these supplementary estimates
for next year?
[5:15 p.m.]
Hon. K. Chen: I am more than happy to discuss this in more detail for our next
year’s estimates. When the member opposite asks the question again,
you’ll see an increase for our next fiscal, and then we’ll be able to
provide more details in those discussions.
L. Throness: I know I’ve been inquiring quite intensely of both ministers,
because this is a brand-new thing. There’s never been a child care
program in the way that the government is doing it.
The minister’s budget for the coming year has risen to $2.065
billion. That’s an increase of $272 million in a single year, which
includes the planned $180 million increase. Then she got another $92
million, which is a 15 percent increase in just one year.
The minister has just begun to spend. Last year’s budget predicted
that her ministry will spend $182 million in the present fiscal year on
child care alone. The supplementary estimates are in child care alone,
so the ministry’s gone over the child care portion of her budget by $20
million, or 11 percent, in one year. But next year she will have almost
double that amount to spend in child care alone. That’s $357 million
plus whatever small other bits that she received in the budget. Is it
still correct that she will spend, in the upcoming fiscal year, on child
care alone, $357 million?
Hon. K. Chen: I have to say I’m more than proud and honoured to be able to do
this work, because child care, for the first time, is the provincial
government’s top priority — after families have been struggling for
years and years with the cost of child care, not being able to access
quality child care spaces, when providers and educators are struggling
in the system, with low wages and lack of support. This is the first
time this is a top priority, and we’re proud of this priority, as we
have shown in the support for the sector and for families in
B.C.
In terms of next year’s estimates and the next fiscal year, I’m
more than happy to have a discussion in more detail when we do next
year’s estimates.
L. Throness: Well, $357 million is an enormous sum of money. The year after
that, her budget is set right now to be $464 million. I’ll assume that
that’s the case, but I’ll ask in estimates, as she says.
Both ministers are managing a suite of new programs with many
unknowns in the future. There’s the possibility of variation in demand
and supply, and there are a thousand details yet to be worked
out.
If the ministry overspends by 11 percent over the next two
forecast years, the taxpayer will be dinged with another $90 million in
supplementary estimates, and when you forecast that out to when the
government completes its child care plan, which is supposed to cost $1.5
billion a year — but that’s a ten-year-old estimate; it’s probably much
more than that — a similar overage would amount to about $150 million a
year.
My final question to the minister: what extra checks or processes,
what concrete steps is the minister taking now to stop the coming
hemorrhage of taxpayer dollars, to help her to get control of a runaway
budget in coming years?
[5:20 p.m.]
Hon. K. Chen: We’re going to continue to monitor the progress of all of our
programs and, at the same time, continue to be fiscally responsible like
we’ve done during the past year while we invest in children and families
in B.C.
L. Throness: I wonder if I could ask one thing for clarification. The Minister
of State for Child Care talked about 60,089 spaces. I didn’t get to
write all of that down because she said it quite quickly. So there are
60,089 spaces, and there are 54,000 something and that represents
something. Could the minister clarify that for me?
Hon. K. Chen: I think what the member opposite is referring to is when I was
talking about the fee reduction program and, in terms of spaces, that
the actual eligible spaces to opt into this program is 60,089 spaces.
And the spaces that have applied to opt in to the fee reduction is
54,498 spaces. We’re more than happy to provide a detailed report to the
member opposite for his information.
L. Throness: Actually, I’m not looking forward to a great deal more detail. I’m
not too optimistic.
The House Leader suggested that we talk for a little longer, so
let me ask a couple more questions.
Interjection.
L. Throness: It’s okay; we don’t need to? Then that’s all.
Vote 18(S): ministry operations, $19,900,000 — approved.
Hon. K. Conroy: I move that the committee rise, report resolution and completion
of the supplementary estimates 2018-2019 of the Ministry of Children and
Family Development, the Ministry of Advanced Education, Skills and
Training and the Ministry of the Attorney General and ask leave to sit
again.
Motion approved.
The committee rose at 5:23 p.m.
The House resumed; Mr. Speaker in the chair.
[5:25 p.m.]
Committee of Supply (Section B), having reported resolutions, was
granted leave to sit again.
Committee of Supply (Section A), having reported resolutions, was
granted leave to sit again.
Hon. M. Farnworth moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m. Monday
morning.
The House adjourned at 5:30 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
SUPPLEMENTARY ESTIMATES:
MINISTRY OF CITIZENS’
SERVICES
The House in Committee of Supply (Section A); D. Routley in the
chair.
The committee met at 1:36 p.m.
On Vote 19(S): ministry operations, $50,000,000.
The Chair: Does the minister have an opening statement?
Hon. J. Sims: I do. Thank you very much.
Good morning — or good afternoon, everyone. The morning just flew
by. First, I would like to acknowledge the territory of the Lekwungen
peoples, including the Songhees and Esquimalt First Nations.
I would also like to acknowledge ministry staff that are here
today, led by my deputy minister, Jill Kot, and thank them for the
amazing work they have done to prepare for estimates and also for the
ongoing work they do each and every single day to make sure that the
ministry operations run smoothly.
I’m honoured to be here today to introduce the supplementary
estimates for the Ministry of Citizens’ Services. Supplementary
estimates are a normal government practice. Up until a decade ago, they
were common in B.C., but they ended while our province maintained an
operating debt. For the first time in 40 years, I’m proud to say we’ve
eliminated this debt, and our fiscal picture is strong. We have the
highest GDP in the country and the lowest unemployment rate. This is
good news for British Columbians. It means we have additional resources
to help more people in our province.
Our government knows that investing in the people of B.C. and
tackling the hard problems are the best ways to build a strong economy
and a more secure future. Every day our government delivers the services
British Columbians rely on, and the engine powering this is the Ministry
of Citizens’ Services.
My ministry is both the face and backbone of government. From
front-end representatives at our 65 Service B.C. centres to our back-end
cybersecurity engineers to our procurement specialists, from our staff
managing provincial buildings to those helping drive connectivity
investments, we are the centre of where service excellence,
transformation and innovation are happening within our
government.
As the need for services expands across government, so does the
work of this ministry. The ministry’s budget for 2018-19 was $524
million, which was revised to $580 million. Due to our government’s
prudent fiscal management, we’re now able to do more for British
Columbians.
As the 2018 fiscal year comes to an end, my ministry has been
allocated an additional $50 million to further expand high-speed
Internet services throughout British Columbia. This will benefit people
living in approximately 200 rural and Indigenous communities in this
province. The broadband service speeds will align with the new CRTC
standard of a minimum of 50 megabits per second.
[1:40 p.m.]
This investment is an important step in achieving our government’s
commitment to true, lasting reconciliation with Indigenous peoples. It
will help ensure Indigenous communities have the technologies they need
to participate in the digital economy and are better able to access
health services and educational opportunities. This funding will also
help government leverage the new CRTC broadband fund, which supports a
wide variety of connectivity projects.
I’m pleased to say that my ministry has had great success working
with our federal partners and the private sector to expand connectivity
in our province. We’ve been able to leverage funds from our connecting
B.C. program and work collaboratively with our partners on behalf of
rural and Indigenous communities. This approach means our dollars go
further and benefit more people. We will also continue to work with
local governments to help them maximize the potential of high-speed
Internet so they can achieve greater economic, social and environmental
benefits in their communities.
Working to connect all British Columbians to affordable high-speed
Internet, regardless of where they live, is a priority for me and my
ministry. I’m incredibly proud of our staff and the progress we have
made so far. Since we formed government, projects to improve broadband
are underway or completed in 417 communities, including 74 Indigenous,
which is about 43,000 households. I’ve seen firsthand the positive
impact of high-speed Internet in communities, towns and cities
throughout the province.
In Trail, new digital technologies are helping reduce the
environmental impact of manufacturing and create more innovative local
companies. By acting on the community’s desire to live sustainably and
working with local entrepreneurs, Metal Tech Alley is creating
high-value products from what would previously have been manufacturing
waste. The result? High-paying jobs, environmental benefits and economic
growth.
To help innovative companies grow, Selkirk College in the West
Kootenays is creating new programs so students can develop digital and
entrepreneurial skills and young people can get good-paying jobs closer
to home. Connectivity is helping many B.C. communities transition from
resource-based economies to economies that are diversified and
growing.
I’m proud to be part of a government that is focused on making
life better for people in our province. Our investments in connectivity
are opening doors, bringing people together, providing new opportunities
and creating local jobs. Our government is charting a path to a more
affordable, balanced and hopeful vision for all British
Columbians.
Now I look forward to taking your questions.
S. Thomson: I appreciate the opportunity to ask some questions here. Thank
you, Minister, for the opening statement, and welcome to all the staff
that are supporting.
First, I want to send appreciation for the briefing that was
provided to us the other day on the preparation for overall estimates. I
see today kind of as a bit of a warm-up for the main estimates, because
we’re dealing with a specific supplemental to the estimates here. But
there certainly will be some questions around that.
I think I do need to make a comment to begin with. The minister
commented that this is a normal procedure. We went away from it for
awhile, w