British Columbia Hansard — Wednesday, February 18, 2004

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British Columbia — Debates (Hansard)

5th Session, 37th Parliament OFFICIAL REPORT OF DEBATES OF THE LEGISLATIVE ASSEMBLY (HANSARD) Wednesday, February 18, 2004 Afternoon Sitting Volume 20, Number 9 THE HONOURABLE CLAUDE RICHMOND, SPEAKER ISSN 0709-1281

PROVINCE OF BRITISH COLUMBIA (Entered Confederation July 20, 1871) LIEUTENANT-GOVERNOR Honourable Iona Campagnolo 5TH SESSION, 37TH PARLIAMENT SPEAKER OF THE LEGISLATIVE ASSEMBLY Honourable Claude Richmond EXECUTIVE COUNCIL Premier and President of the Executive Council ............................................................................................................Hon. Gordon Campbell Minister of State for Intergovernmental Relations ...............................................................................................................Hon.

Sindi Hawkins Deputy Premier and Minister of Children and Family Development ................................................................................ Hon. Christy Clark Minister of State for Early Childhood Development...................................................................................................................Hon. Linda Reid Minister of Advanced Education................................................................................................................................................ Hon.

Shirley Bond Minister of Agriculture, Food and Fisheries..................................................................................................................... Hon. John van Dongen Attorney General and Minister Responsible for Treaty Negotiations..................................................................................... Hon. Geoff Plant Minister of Community, Aboriginal and Women's Services ................................................................................................ Hon.

Murray Coell Minister of State for Immigration and Multicultural Services...................................................................................... Hon. Gulzar S. Cheema Minister of State for Women's and Seniors' Services................................................................................................................... Hon. Ida Chong Minister of Education ............................................................................................................................................................Hon.

Tom Christensen Minister of Energy and Mines...............................................................................................................................................Hon. Richard Neufeld Minister of State for Mining...................................................................................................................................................................Hon. Pat Bell Minister of Finance.........................................................................................................................................................................Hon.

Gary Collins Minister of Forests................................................................................................................................................................... Hon. Michael de Jong Minister of State for Forestry Operations.................................................................................................................................. Hon. Roger Harris Minister of Health Services.........................................................................................................................................................Hon.

Colin Hansen Minister of State for Mental Health and Addiction Services ....................................................................................................Hon. Susan Brice Minister of Human Resources........................................................................................................................................................Hon. Stan Hagen Minister of Management Services ............................................................................................................................................. Hon.

Joyce Murray Minister of Provincial Revenue.................................................................................................................................................... Hon. Rick Thorpe Minister of Public Safety and Solicitor General...................................................................................................................... Hon. Rich Coleman Minister of Skills Development and Labour......................................................................................................................Hon. Graham P.

Bruce Minister of Small Business and Economic Development ...............................................................................................................Hon. John Les Minister of Sustainable Resource Management ....................................................................................................................Hon. George Abbott Minister of State for Resort Development............................................................................................................................... Hon.

Sandy Santori Minister of Transportation...........................................................................................................................................................Hon. Kevin Falcon Minister of Water, Land and Air Protection ............................................................................................................................... Hon.

Bill Barisoff LEGISLATIVE ASSEMBLY Deputy Speaker ....................................................................................................................................................................................John Weisbeck Leader of the Opposition .......................................................................................................................................................................Joy MacPhail Deputy Chair, Committee of the Whole..............................................................................................................................................

Harold Long Clerk of the Legislative Assembly ........................................................................................................................................... E. George MacMinn Clerk Assistant.........................................................................................................................................................................................Robert Vaive Clerk Assistant and Law Clerk ...............................................................................................................................................................Ian D.

Izard Clerk Assistant and Clerk of Committees ....................................................................................................................................... Craig H. James Clerk Assistant and Committee Clerk ..........................................................................................................................................Kate Ryan-Lloyd Sergeant-at-Arms............................................................................................................................................................................. A.A.

Humphreys Director, Hansard Services ..................................................................................................................................................Anthony Dambrauskas Legislative Librarian ..................................................................................................................................................................................Jane Taylor Legislative Comptroller...............................................................................................................................................................................Peter Bray Published by British Columbia Hans ard Services, and printed under the authority of the Speaker by the Queen's Printer, Victoria.

Rates: single issue, $2.85; per calendar year, mailed daily, $298. GST extra. Agent: Crown Publications Inc., 521 Fort St., Victoria, B.C. V8W 1E7. Telephone: (250) 386-4636. Fax: 386-0221. www.leg.bc.ca Hansard Services publishes transcripts both in print and on the Internet. Chamber debates are broadcast on television and webcast on the Internet.

Party Standings: Liberal 75; New Democratic 2; Independent Liberal 2. ALPHABETICAL LIST OF MEMBERS Abbott, Hon. George (L) ..........................................................................Shuswap Anderson, Val J. (L)............................................................... Vancouver-Langara Barisoff, Hon. Bill (L)...............................................Penticton–Okanagan Valley Bell, Hon.

Pat (L) ..................................................................Prince George North Belsey, Bill (L)....................................................................................North Coast Bennett, Bill (L) ..............................................................................East Kootenay Bhullar, Tony (Ind. L) ................................................................... Surrey-Newton Bloy, Harry (L).....................................................................................Burquitlam Bond, Hon. Shirley (L)..........................................

Prince George–Mount Robson Bray, Jeff (L) ........................................................................Victoria–Beacon Hill Brenzinger, Elayne (L)..................................................................Surrey-Whalley Brice, Hon. Susan (L)...................................................................... Saanich South Bruce, Hon. Graham P. (L) ................................................. Cowichan-Ladysmith Campbell, Hon. Gordon (L) .............................................. Vancouver–Point Grey Cheema, Hon.

Gulzar S. (L)............................................Surrey–Panorama Ridge Chong, Hon. Ida (L) ......................................................... Oak Bay–Gordon Head Christensen, Hon. Tom (L) ...................................................... Okanagan-Vernon Chutter, Dave (L) ..............................................................................Yale-Lillooet Clark, Hon. Christy (L) ....................................................Port Moody–Westwood Cobb, Walt (L) ................................................................................Cariboo South Coell, Hon.

Murray (L) ..........................................Saanich North and the Islands Coleman, Hon. Rich (L)................................................Fort Langley–Aldergrove Collins, Hon. Gary (L) ..........................................................Vancouver-Fairview de Jong, Hon. Michael (L) ........................................Abbotsford–Mount Lehman Falcon, Hon. Kevin (L) ............................................................ Surrey-Cloverdale Hagen, Hon.

Stan (L) ......................................................................Comox Valley Halsey-Brandt, Greg (L) ............................................................Richmond Centre Hamilton, Arnie (L)..............................................................Esquimalt-Metchosin Hansen, Hon. Colin (L) .......................................................Vancouver-Quilchena Harris, Hon. Roger (L) ................................................................................Skeena Hawes, Randy (L)............................................................... Maple Ridge–Mission Hawkins, Hon.

Sindi (L) ........................................................... Kelowna-Mission Hayer, Dave S. (L) ..................................................................... Surrey-Tynehead Hogg, Gordon (L)................................................................... Surrey–White Rock Hunter, Mike (L) ..................................................................................... Nanaimo Jarvis, Daniel (L)........................................................North Vancouver–Seymour Johnston, Ken (L)..............................................................

Vancouver-Fraserview Kerr, Brian J. (L) ................................................................ Malahat–Juan de Fuca Krueger, Kevin (L)................................................... Kamloops–North Thompson Kwan, Jenny Wai Ching (NDP)................................ Vancouver–Mount Pleasant Lee, Richard T. (L).........................................................................Burnaby North Lekstrom, Blair (L)................................................................... Peace River South Les, Hon. John (L)....................................................................

Chilliwack-Sumas Locke, Brenda (L) ............................................................. Surrey–Green Timbers Long, Harold (L) .................................................... Powell River–Sunshine Coast MacKay, Dennis (L)......................................................... Bulkley Valley–Stikine McMahon, Wendy (L).............................................. Columbia River–Revelstoke MacPhail, Joy (NDP) ............................................................

Vancouver-Hastings Manhas, Karn (L) ..............................................Port Coquitlam–Burke Mountain Masi, Reni (L) ..................................................................................... Delta North Mayencourt, Lorne (L)............................................................Vancouver-Burrard Murray, Hon. Joyce (L)............................................................. New Westminster Nebbeling, Ted (L)..................................................... West Vancouver–Garibaldi Nettleton, Paul (Ind.

L) ...................................................Prince George–Omineca Neufeld, Hon. Richard (L) ....................................................... Peace River North Nijjar, Rob (L).....................................................................Vancouver-Kingsway Nuraney, John (L)..................................................................Burnaby-Willingdon Orr, Sheila (L) .............................................................................Victoria-Hillside Penner, Barry (L)......................................................................... Chilliwack-Kent Plant, Hon.

Geoff (L) ........................................................... Richmond-Steveston Reid, Judith (L)....................................................................... Nanaimo-Parksville Reid, Hon. Linda (L) ..................................................................... Richmond East Richmond, Hon. Claude (L)...................................................................Kamloops Roddick, Valerie (L)............................................................................

Delta South Sahota, Patty (L).......................................................................Burnaby-Edmonds Santori, Hon. Sandy (L) .............................................. West Kootenay–Boundary Stephens, Lynn (L).................................................................................... Langley Stewart, Ken (L)........................................................

Maple Ridge–Pitt Meadows Stewart, Richard (L)........................................................Coquitlam-Maillardville Suffredine, Blair F. (L)..................................................................Nelson-Creston Sultan, Ralph (L) .........................................................West Vancouver–Capilano Thorpe, Hon. Rick (L)............................................................Okanagan-Westside Trumper, Gillian (L)..................................................................Alberni-Qualicum van Dongen, Hon.

John (L)..................................................Abbotsford-Clayburn Visser, Rod (L)...................................................................................North Island Weisbeck, John (L).......................................................... Kelowna–Lake Country Whittred, Katherine (L).............................................

North Vancouver–Lonsdale Wilson, John (L)..............................................................................Cariboo North Wong, Patrick (L)..............................................................Vancouver-Kensington LIST OF MEMBERS BY RIDING Abbotsford-Clayburn ........................................................ Hon. John van Dongen Abbotsford–Mount Lehman................................................Hon. Michael de Jong Alberni-Qualicum ........................................................................

Gillian Trumper Bulkley Valley–Stikine ................................................................ Dennis MacKay Burnaby North................................................................................ Richard T. Lee Burnaby-Edmonds.............................................................................. Patty Sahota Burnaby-Willingdon ........................................................................John Nuraney Burquitlam............................................................................................

Harry Bloy Cariboo North..................................................................................... John Wilson Cariboo South........................................................................................Walt Cobb Chilliwack-Kent ................................................................................ Barry Penner Chilliwack-Sumas ........................................................................... Hon.

John Les Columbia River–Revelstoke .....................................................Wendy McMahon Comox Valley .............................................................................Hon. Stan Hagen Coquitlam-Maillardville............................................................... Richard Stewart Cowichan-Ladysmith .........................................................Hon. Graham P.

Bruce Delta North.............................................................................................Reni Masi Delta South...................................................................................Valerie Roddick East Kootenay .....................................................................................Bill Bennett Esquimalt-Metchosin .................................................................... Arnie Hamilton Fort Langley–Aldergrove....................................................... Hon.

Rich Coleman Kamloops ......................................................................... Hon. Claude Richmond Kamloops–North Thompson.......................................................... Kevin Krueger Kelowna–Lake Country .................................................................John Weisbeck Kelowna-Mission ...................................................................Hon. Sindi Hawkins Langley........................................................................................... Lynn Stephens Malahat–Juan de Fuca.......................................................................

Brian J. Kerr Maple Ridge–Mission ......................................................................Randy Hawes Maple Ridge–Pitt Meadows............................................................... Ken Stewart Nanaimo .............................................................................................Mike Hunter Nanaimo-Parksville..............................................................................Judith Reid Nelson-Creston......................................................................... Blair F.

Suffredine New Westminster .................................................................... Hon. Joyce Murray North Coast .......................................................................................... Bill Belsey North Island.......................................................................................... Rod Visser North Vancouver–Lonsdale .................................................... Katherine Whittred North Vancouver–Seymour ..............................................................

Daniel Jarvis Oak Bay–Gordon Head.................................................................Hon. Ida Chong Okanagan-Vernon ..............................................................Hon. Tom Christensen Okanagan-Westside................................................................... Hon. Rick Thorpe Peace River North ...............................................................Hon. Richard Neufeld Peace River South ..........................................................................Blair Lekstrom Penticton–Okanagan Valley...................................................... Hon.

Bill Barisoff Port Coquitlam–Burke Mountain......................................................Karn Manhas Port Moody–Westwood ...........................................................Hon. Christy Clark Powell River–Sunshine Coast............................................................Harold Long Prince George North .........................................................................Hon. Pat Bell Prince George–Mount Robson................................................. Hon. Shirley Bond Prince George–Omineca .................................................................

Paul Nettleton Richmond Centre ...................................................................Greg Halsey-Brandt Richmond East ............................................................................ Hon. Linda Reid Richmond-Steveston ...................................................................Hon. Geoff Plant Saanich North and the Islands..................................................Hon. Murray Coell Saanich South............................................................................. Hon. Susan Brice Shuswap ................................................................................

Hon. George Abbott Skeena .......................................................................................Hon. Roger Harris Surrey-Cloverdale ....................................................................Hon. Kevin Falcon Surrey–Green Timbers.....................................................................Brenda Locke Surrey-Newton ..................................................................................Tony Bhullar Surrey–Panorama Ridge................................................... Hon. Gulzar S.

Cheema Surrey-Tynehead .............................................................................Dave S. Hayer Surrey-Whalley ........................................................................ Elayne Brenzinger Surrey–White Rock.......................................................................... Gordon Hogg Vancouver-Burrard .................................................................. Lorne Mayencourt Vancouver-Fairview..................................................................Hon. Gary Collins Vancouver-Fraserview .....................................................................

Ken Johnston Vancouver-Hastings......................................................................... Joy MacPhail Vancouver-Kensington .................................................................... Patrick Wong Vancouver-Kingsway............................................................................ Rob Nijjar Vancouver-Langara...................................................................... Val J. Anderson Vancouver–Mount Pleasant .............................................Jenny Wai Ching Kwan Vancouver–Point Grey..................................................... Hon.

Gordon Campbell Vancouver-Quilchena ............................................................. Hon. Colin Hansen Victoria–Beacon Hill ...............................................................................Jeff Bray Victoria-Hillside.....................................................................................Sheila Orr West Kootenay–Boundary ......................................................Hon. Sandy Santori West Vancouver–Capilano ............................................................... Ralph Sultan West Vancouver–Garibaldi............................................................

Ted Nebbeling Yale-Lillooet .....................................................................................Dave Chutter

CONTENTS Wednesday, February 18, 2004 Afternoon Sitting Routine Proceedings Page Introductions by Members ....................................................................................................... ............................................. 8617 Statements (Standing Order 25B) .............................................................................................................................. ............. 8617 Burgess Shale W. McMahon Youth programs K. Manhas RAV transit line G.

Halsey-Brandt Oral Questions................................................................................................................. ......................................................... 8618 Organized crime and funding of police services J. Kwan Hon. R. Coleman J. MacPhail Public forum on organized crime J. MacPhail Hon. R. Coleman Addiction services in Powell River H. Long Hon. S. Brice Transfer of community living services R. Hawes Hon. C. Clark Student grant program H. Bloy Hon. S.

Bond Point of Privilege............................................................................................................. ......................................................... 8621 J. MacPhail Hon. M. de Jong Budget Debate (continued)............................................................................................................................... ........................ 8622 R. Sultan P. Nettleton B. Kerr Hon. R. Coleman Hon. R. Neufeld B. Lekstrom K. Stewart S. Orr R. Hawes

8617 WEDNESDAY, FEBRUARY 18, 2004 The House met at 2:03 p.m. Prayers. Introductions by Members Hon. R. Coleman: I am pleased to introduce today, on behalf of the Minister of Transportation and MLA for Surrey-Cloverdale, 66 grade 11 students from Southridge Senior Secondar y School, their teacher Mr. Julian and two adult chaperons which I doubt that they probably need at all. Would the House please make them welcome. [1405] Hon. J. Les: Today in the visitors' gallery I would like to acknowledge some special visitors from the Piemonte region in Italy.

I' d like the House to join me in welcoming Barbara Ramaglia — she's the consulente of the Regione Piemonte — and Claudio Barbero of the industrial union. This is the advance team to the visit of Enzo Ghigo, the region president, in late March. Would the House please join me in welcoming them to Victo- ria today. B. Belsey: I have the privilege today to stand and introduce to the House a young fellow who was raised in Prince Rupert, who is now down here looking at the University of Victoria where he wants to take some geography courses.

Would the House please join me in welcoming Andrew Cuthbert, a member from Prince Rupert. J. Bray: Joining us in the gallery today is one of my newest constituents who is living in my riding and attending the fine University of Victoria, who has moved here from Prince George and who just happens to be the daughter of the Minister of State for Mining. Would the House please welcome one of my newest constituents, Donna Bell. Hon. P.

Bell: It appears we've been able to drag another northerner down south for a short period of time as well, although he doesn't want to succumb to the salt air he is being victimized with in this particular locale. He's a great friend, a great son and a great snowmobiling buddy, who gets me unstuck on a regu- lar basis. Would the House please make my son Doug Bell very welcome. Statements (Standing Order 25

B) BURGESS SHALE W. McMahon: I a m p l e a s e d t o r i s e i n t h e H o u s e today and introduce my colleagues and British Colum- bians to a hidden treasure in my constituency of Columbia River–Revelstoke. Yoho National Park in the Rocky Mountains is host to an amazing natural occur- rence, the Burgess Shale fo rmation. This formation, located just outside of Golden near Field, is without a doubt one of the most significant fossil deposits in the world, dating back to the middle Cambrian age nearly 500 million years ago.

The Burgess Shale is host to a diversity of soft- bodied fauna — early animal life — that allows us to study the evolutionary processes associated with the development of life on Earth millions of years ago. While these rare fossils are over half a billion years old, they can be dissected today to reveal their stomach contents and their amazing body parts. The Burgess Shale fauna provide an unparalleled opportunity to glimpse into the window of ancient oceans and environmental co nditions of another time.

It has attracted so much attention and curiosity, of sci- entists and the public alike, that the Burgess Shale Geo- science Foundation was established. The mandate of this organization is to increase the public's science lit- eracy. The foundation offers a variety of educational hikes around the fossil beds and delivers a number of earth science education programs. Its vision is to create a facility, the first of its kind in the world, to interpret and display the Burgess Shale. This offers a great op- portunity to not only show case this amazing natural formation but also showcase the entire Kootenay re- gion.

The Burgess Shale Geoscien ce Foundation attracts thousands of students, teac hers, scientists and inter- ested observers from all over the world. Tourists come from far and wide to see th e Burgess Shale firsthand. They gain an appreciation of earth sciences, and at the same time they experience one of the most beautiful regions of the province. I applaud the Burgess Shale Geoscience Foundation for its commitment to the earth sciences and education of the public.

Organizations su ch as this one contribute to the educational and scientific fabric of our province while creating innovative opportunities for employ- ment and tourism in the Kootenay. [1410] YOUTH PROGRAMS K. Manhas: I have risen many times in this House to talk about the Youth Matters! initiative that I launched in the Tri-Cities la st year and its goal to in- crease positive youth development using the assets approach. It would appear that this work is paying off in our local school system.

School district 43 student leader- ship council recently declared this week, February 16 to 20, as assets development week. These students have examined asset-building opportunities appropriate to elementary, middle and secondary students and have distributed their recommend ations throughout our school system. As a result of their work, our students, parents and teachers are gaining a better understand- ing of the benefits we stand to make by engaging our

8618 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 youth. These students aren't alone. As I speak, there are over 20 organizations from across the Tri-Cities work- ing together to improve the community for the youth growing up within it. One of the priority goals for Youth Matters! has been to increase the way in which our community con- nects with and values our youth. Working together to build assets strengthens th e bond between the individ- ual and the community. It's unfortunate that many young people, especially when they reach adolescence, feel as if they're invisible to the adults around them.

That's why adult mentorship is crucial to the success of our asset-building efforts. I think many of us can look back to our days as teenagers and remember those few adults, those indi- viduals who engaged us to be interested in some- thing. It might have been a parent, a teacher, a neighbour or a coach who encouraged and took an interest in us to pursue something. Unfortunately, many of today's young people have gone their entire lives without having any of that kind of encourage- ment. I think we each have a responsibility to change these circumstances.

Even a smile or a hello is an im- portant connection that says to a young person: "You're important." We also need to do our part to encourage youth to take action in their communi ty when they see things they want to change.

It was more than 200 years ago that English author Samuel Johnson said: "Self- confidence is the first requisite to great undertakings." I want to congratulate and thank Tamara Ramusovic and the entire school district 43 student leadership council for their leadership in taking those words to heart for the benefit of all students and for increasing the awareness of each indivi dual's role in building as- sets. Keep up the good work. Here's to the first assets development week. RAV TRANSIT LINE G.

Halsey-Brandt: Last week RAV Project Man- agement Ltd., a subsidiary of the Greater Vancouver Transportation Authority, released a

summary of the range of options submitted by the three teams com- peting for the contract to design, build, partially fi- nance, operate and maintain the Richmond-Airport- Vancouver rapid transit line . This line has been dis- cussed since the mid-1970s and was constantly on the transit planning diagrams of the GVRD through the 1980s to nineties. Finally our government and our funding partners — the federal government, the Van- couver Airport Authority and TransLink — are bring- ing it to fruition in time for the 2010 Olympics.

This much-needed link between downtown Van- couver, the international ai rport and downtown Rich- mond is expected to have 100,000 boardings per day, carrying 26 million to 38 million passengers annually by 2010. In environmental term s, it is anticipated that the rapid transit system will eliminate tons of harmful air emissions and result in gasoline fuel savings of mil- lions of litres annually. Th e three competing bids re- ceived last week all meet the terms of reference for the line.

They provide travel times from downtown Van- couver to Richmond Centre in less than 30 minutes and to the airport in less than 25 minutes. Construction is to begin in spring 2005 with an in-service date of Novem- ber 2009. We look forward to a thorough review by the evaluation committee to be completed by April and then to have the two select ed teams submit their final and best offer by this fall.

While there is concurrence in a combination of tunnelling at grade and elevated line in Vancouver and at the airport, the question of whether the line should be elevated or at grade at No. 3 Road in Richmond still needs to be determined. My whole community looks forward to entering that dis- cussion next month. This is a rapid transit lin e that is way overdue. We are excited that its time has come, and I thank our funding partners and the GV RD communities for their continuing support. Mr. Speaker: That concludes members' statements. Oral Questions ORGANIZED CRIME AND FUNDING OF POLICE SERVICES J.

Kwan: In the past five days there've been two shootings in the lower mainland and one assault. Or- ganized crime activity is suspected in each. Crime, par- ticularly organized crime, is causing enormous public concern. Can the Solicitor General confirm that these shootings and assaults are not random events but that they're related to organized crime activities? [1415] Hon. R. Coleman: The hon. member across the hall knows that I don't comment on ongoing police investigations or the actual aspect of an individual case. I will tell you this, though, Mr. Speaker.

We've identified the concern with regard to organized crime. We're actually moving towards creating an integrated organized crime unit by moving the Organized Crime Agency in with the RCMP and our serious crime peo- ple, which will find us an additional savings of $4 million that will go directly into investigations of or- ganized crime. Mr. Speaker: Member for Vancouver–Mount Pleasant has a supplementary question. J. Kwan: The Solicitor General's words ring a bit hollow. After the organized crime squad raided this building, the RCMP compared organized crime to a cancer growing on the moral fabric of our society.

But apparently the Solicitor General didn't hear about that warning, because he continues to make it harder for the police to fight crime — $13.5 million in cuts to police this year alone. That was tabled yesterday in this gov- ernment's budget.

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8619 Interjections. Mr. Speaker: Order, please. Order, hon. members. Let us hear the question. J. Kwan: How can British Columbians have any faith in this Solicitor, any faith at all that the police are protected, when police services in this province are being served up to the Minister of Finance for cuts? Hon. R. Coleman: I'm really glad that member asked that question. I don' t know where she's doing her research, but I suspect it's been from one of the dailies and looking at the budget. Maybe the member might want to take this into consideration.

Last year's budget included $10 million for crime, which was expended in last year's budget, that doesn't need to be expended next year. It included another $6 million in small capital, so we can reduce our costs with regard to small capital in outgoing years. It also included the cost of the Pickton investiga- tion, which is winding down. Therefore, the costs will be less on this. When the member actually does the math and figures it out, she' s going to find out that we actually invested more money in operational policing in British Columbia this year. Interjections. Mr. Speaker: Order, please.

Order, please, hon. members. The member for Vancouver–Mount Pleasant has a further supplementary. J. Kwan: The budget books don' t lie. So says this government. According to the budget book that was tabled yesterday, it shows that $13.5 million will be cut out of policing. That's the truth, and this is the gov- ernment who has yet to alloca te the traffic fine dollars to local governments for policing in spite of their prom- ise prior to the election. According to the government's own numbers, the crime rate last year went up 8 percent. Gangland shoot- ings are becoming a regular feature on nightly news.

But the Solicitor General continues to ignore the prob- lems that are out there in our communities. Yesterday the government announced it is spending $33 million on public relations and partisan advertising. How can the Solicitor General justify si tting at the cabinet table, signing off on millions of dollars for television ads ex- tolling the virtues of his government, when he's put- ting public safety at risk? Hon. R. Coleman: First of all, let's recognize one thing.

This member was a member of a government for t e n y e a r s t h a t d i d n ' t s o m u c h a s m e e t w i t h t h e p o l i c e and do any forward planning for law enforcement in British Columbia. They did not invest in any technol- ogy, which we did last year — over $10 million into crime — and they did not do. They refused to move forward on an integrated policing relationship that saves millions of dollars and increases the efficiency of law enforcement in British Columbia. They also don't get it that we know there's organ- ized crime out there. That's why we have strategies.

That's why we are building our plans. That's why we have increased funding to these areas. That's why we've looked for efficiencies , and that's why, frankly, we're doing a great job and actually doing the job on behalf of British Columbians. [1420] J. MacPhail: Mr. Speaker, I sure hope the blue books don't lie, because the blue books from this gov- ernment — the estimates book — say that there's been a $13.5 million cut to policing. The previous govern- ment set up the organized crime agency. The previous government set up community policing. What does it take to get the attention of this Solici- tor General?

The organized crime squad was in this building searching through files. We've had two shoot- ings in five days, but he stands there and blusters on, pretending that he's on top of it. Thank God he's not sitting on it. Well, he's not on top of it. We're losing the battle against organized crime, and his answer is to cut the budget for policing. Not only has the minister cut funding to police, he's chopped $3 million more from victims services. That's on top of a $6 million cut from last year.

How can the Solicitor General stand there, wave his arms about and tell the public he's getting tough on crime after letting the Finance minister raid his budget to pay for the Premier's image consultants? Hon. R. Coleman: One of these days this member is going to figure out that sometimes you invest in one year to get savings in the ne xt year, and it doesn't actu- ally affect an operational budget. What we have done is some of the most innovative things in the history of British Columbia.

There are individual cases of violence in this prov- ince, and there are a number of factors that we would like to see improved, including penalties to people that are actually committing crimes in this province. The bottom line is this: the operat ional cost of policing has gone up and has been enhanced by this government. The dollars the member refers to are to investigations that had to have notional access to contingencies that will not cost as much next year, because they were in- dividual cases like the Pickton investigation. Mr. Speaker: Leader of the Opposition has a sup- plementary question. J.

MacPhail: No, Mr. Speaker. Those are separate lines in the Estimates. I wish this government would actually learn what it's talking about. What he's refer- ring to are separate lines in the budget. Interjections. Mr. Speaker: Order, please.

8620 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 PUBLIC FORUM ON ORGANIZED CRIME J. MacPhail: Policing in this province has been cut by $13.5 million. The opposition has asked three times for the Solicitor General to call a public inquiry into organized crime. Every single time he hides, and the rest of his government laughs about organized crime — laughs about it. Interjections. Mr. Speaker: Order, please. J. MacPhail: He won't consult the public as he promised to do. He won't call an inquiry, and clearly he won't fight for new resources. He talks the talk on crime, but he won't walk the walk.

Let me give him another chance to take action. Will the Solicitor General listen to the public, will he listen to the police, and will he finally leave his comfy, soft chair and at least hold the public forum into organized crime that he promised almost a year ago? Hon. R. Coleman: First of all, let's get a couple of things clear. This particular member has had an epiph- any about organized crime that's happened in the last 30 days, because she failed to attend the Crown Corpo- rations Committee when they actually talked to the Organized Crime Agency, as a member of that commit- tee.

She's also had an epiphany all of a sudden about something I've been talking about for two and a half years and the fact that ther e's organized crime in Brit- ish Columbia. If you sat down with law enforcement tomorrow and said, "Would you prefer we spend a few million dollars on a public inquiry with regard to or- ganized crime, or would you prefer we gave you more money to actually fight organized crime," the answer would be: "Give us the money to fight organized crime." Interjections. Mr. Speaker: Order, please. Hon. R. Coleman: What this member doesn't get is that she's never had a plan for policing.

Actually, when you sit down, you figure out the costs, you invest the capital and you plan it out, you can enhance the opera- tional cost of policing by front-end lowering some costs that can move from one budget year to the next. Interjection. Mr. Speaker: Order, please. Hon. R. Coleman: The member just doesn't get the fact — and it drives her crazy — that law enforcement in British Columbia are finally supportive of a gov- ernment because they stand behind them, plan with them and build for the future. Interjections. [1425] Mr. Speaker: Order, please. Order, hon. members. ADDICTION SERVICES IN POWELL RIVER H.

Long: My question today is for the Minister of State for Mental Health and Addiction Services. In the mid-eighties I worked with the New Life Society in Powell River to bring a contract for addiction services to our community. Recently Powell River people were told that the Vancouver coastal health authority has decided to terminate the society's contract as of March 31, 2004. Can the Minister of State for Mental Health and Addiction Services explai n how the cancellation of this contract is going to improve addiction services for Powell River? Interjection. Mr. Speaker: Order, please. Hon. S.

Brice: Vancouver coastal health will now directly provide the programs and services offered by the New Life Society. This decision ensures that re- sources are used to the maximum potential in order to strengthen patient services. There will be absolutely no reduction in service or quality of care as a result of this move, and no client will lose services or be denied care as a result of this move. In fact, Vancouver coastal will be able to provide increased service from savings in administrative costs.

The integrating of these services with mental health will provide more options, and this is another great example of how health authorities are improving service delivery and patient care. Interjections. Mr. Speaker: Order, please. TRANSFER OF COMMUNITY LIVING SERVICES R. Hawes: M y q u e s t i o n i s t o t h e M i n i s t e r o f C h i l - dren and Family Development. For a long time now, the ministry has been working with the community living sector on a new plan for the transfer of govern- ance for people with developmental difficulties.

Re- cently the ministry has announced it has postponed that transfer, which was planned for June. Now, can the minister tell my constitu ents, including Mr. Bryce Shaufelberger who served on the board as a self- advocate, if the transfer plan has now been aban- doned? Or if it has not, has a new date for the transfer been set? Hon. C. Clark: Indeed, we are still very committed to shifting to community governance in the community living sector. The reason we want to do that is this: it is the right, moral thing to do. Delivering these services

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8621 in communities, closer to communities where the peo- ple who receive them have some say over how they look, is the right thing to do. I know the opposition doesn't care about this, but thousands of people have invested thousands of hours…. Interjections. Mr. Speaker: Order, please. Order, please. Would the member for Vancouver–Mount Pleasant please come to order and listen to the answer. Hon. C. Clark: I know the opposition is not particu- larly interested in allowing communities to control the services that we provide in this ministry.

I know, in fact, that the opposition has called for this to stop, but the reality is that thousands of people have spent thou- sands of hours. They have invested… Interjections. Mr. Speaker: Order, please. Hon. C. Clark: …their hopes and dreams in this. In fact, 14,000 people provincewide have participated in the consultation about how we can make this happen. W e w a n t t o m a k e s u r e t h a t w h e n i t h a p p e n s , i t h a p - pens right.

We want to ma ke sure that the community living authority is on a solid foundation so that the people we're serving continue to be well served and continue to get every benefit that our society can give them. But we are committed to making sure that these services are delivered in the community, and we are committed to making sure that the community living authority is up and running on a firm foundation as soon as we possibly can do it. Interjections. Mr. Speaker: Order, please. [1430] STUDENT GRANT PROGRAM H. Bloy: My question is to the Minister of Ad- vanced Education.

I have heard some confusion from my constituents regarding the transfer of funds from the student grant program dire ctly to universities and colleges. Could the minister address the benefits of funding universities and colleges directly, and also assure my constituents that there will still be financial aid for any student in this province that requires it? Interjections. Mr. Speaker: Order, please. Will the Leader of the Opposition please come to order. Hon. S. Bond: It is true we are converting student grants to a loan program in British Columbia.

In fact, the dollars that go from that program will be sent to institutions that were, in fact, expecting fewer dollars to be transferred to them th is year. The majority will actually receive as many dollars, if not more than they were anticipating. In fact, institutions will soon receive budget letters which indicate that they will receive dollars they did not anticipate. We expect that to pro- vide benefit in mitigating…. Interjections. Mr. Speaker: Order, please. Order. We'll continue when we have order in the House, please. Hon. S.

Bond: We expect the transfer of dollars to institutions to mitigate some of the tuition increases that were expected, and I expect institutions to look closely at their decisions about tuition based on the decision made yesterday. [End of question period.] Point of Privilege J. MacPhail: Mr. Speaker, I said that I was about to bring forward three motions of privilege. Here is the third.

During question period on May 29, 2003, the Solici- tor General stood in this House and stated the follow- ing: "What we did" — and I quote directly — "is actu- ally took gaming in this province arm's length from political influence, gave it to the corporation and said, 'You manage gaming within the capacity.' We identi- fied that capacity, and the corporation is doing its job in the way it should be — without political influence, as some people maybe had seen in the governments of the past." He then also stated: "The B.C.

Lottery Corporation is a corporation that is operating without political in- fluence and will do its business on behalf of British Columbians to the level it should be, rather than hav- ing — as in the past — political influence dictating stu- pid decisions in gaming." His position, as stated in this House, is consistent with statements he made at an open cabinet meeting on January 16, 2002, where he stated: "After being the min- ister for six or seven months, it was abysmal how this sector of government was managed. That's why I've moved it to where it's very professional, arm's length from the minister.

I don't make decisions on individual licences, nor do I ever discuss an individual licence." Mr. Speaker, there are several statements of a simi- lar nature in the popular media. I raise these matters arising from outside the Legislature only to substanti- ate the point that the minister did not misspeak himself in the Legislature. He deliberately made three separate statements in this House to imply that he had no in- volvement at all, no influence over decisions made by the gaming corporation and specifically regarding slot machines.

8622 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 A recent statement from the member for Powell River–Sunshine Coast tells a different story.

He is quoted in a December 23, 2003, Powell River Peak article, which has not been retracted, that reports the follow- ing: "B.C.'s Solicitor General Rich Coleman asked MLA Harold Long how Powell River would feel about hav- ing slot machines in the community. 'He asked if our community would be interested in slot machines in the bingo hall, where there is gambling already,'" said the member for Powell River–Sunshine Coast. [1435] As the member for Powell River–Sunshine Coast has identified, the Solicitor General is personally seek- ing out venues for the installation of slot machines.

Erskine May, 22nd edition, page 63, quotes from the civil service amendment or der-in-council 1995, which states: "…the following prin ciples should govern the conduct of ministers of the Crown in relation to par- liament…it is of paramount importance that ministers give accurate and truthful information to parlia- ment…." That learned source also states: "Ministers who knowingly mislead parliament will be expected to offer their resignation to the Prime Minister." The same edition, on page 64, also states: "It was not intended to affect or derogate from the duties min- isters owe to parliament in their capacity as members of one of the Houses, and imposing on ministers the additional duty to offer their resignation to the Prime Minister will not affect the right of either House to pro- ceed against them in a case of alleged contempt, as it might proceed against any other member." I argue, therefore, that th ere is a prima facie case for the Solicitor General to be found in contempt of this House and that this House has the authority to act on it.

For your consideration I put forward a notice of mo- tion for you to consider, and I also table for you the

article that stands with out retraction from the Powell River Peak and the open cabinet meeting minutes that I quoted from. Mr. Speaker: The Chair will take your comments and your submissions into consideration. The Chair will now entert ain comments or notice of comment from the government side. Hon. M. de Jong: Mr. Speaker, I seek to reserve the right to make further submissions in due course. Mr. Speaker: So noted. Orders of the Day Hon. M. de Jong: I c a l l c o n t i n u i n g d e b a t e o n t h e budget. Budget Debate (continued) R.

Sultan: It's an honour to be asked to respond to the budget speech of the Minister of Finance. He's pre- sented a commendable — indeed, a remarkable — piece of work, for this is not merely a piece of paper, as someone recently called it.

Rather, it's the culmination of a hazardous three-year project involving thousands of people, starting from an election promise, proceed- ing through core review via caucus committees into new law and public consultation involving the turning down of multiple screws, making agonized choices, requiring growth of thick skin and a fair amount of marketing, enduring legislative critique and opposition scorn and ultimately arriving at a balanced budget. Today we can celebrate the announcement of a bal- anced budget for fiscal '04-05.

One observer said to me: "These guys come across year after year as steadily steering a ship, and the ship's on course." In politics this is unique. The feds don't do it this way, and neither do the Americans. It's quite special and quite remarkable. [1440] A balanced budget in and of itself is an unusual event in the history of this province. In recent years you would make money betting that B.C. would be in the red four years out of five.

The party opposite could manage it only twice in ten years, and that relied on risky electrical arbitrage in the state of California, where the final accounting has yet to be done. Proving that governments of our past held no mo- nopoly on fiscal deficiency, balanced budgets are also becoming rare in that great empire to the south. In the United States, governments now contemplate deficits equal to 5 percent of their gross domestic product. By that yardstick, our Finance minister would be present- ing a budget in the deficit range of $7 billion.

Our Fi- nance minister's and our government's local accom- plishments here in this province are all the more laud- able in light of what's goin g on in the good old U.S.A. Congratulations, minister. Our friends across the aisle are the first to protest that the government accomplished this feat on the backs of the poor, the disabl ed, students and the sick. I say baloney to that. Let's look at the record. In their final four years in government, the NDP increased health spending by only $1.8 billion — only $1.8 billion. Cheapskates, I sa y. In four years of B.C.

Liberal government, health spending will have gone up by $2.2 billion. In their final four years in government, the NDP increased education spending by only $822 million. Pikers, I say. In four years of B.C. Liberal government, education spending will have gone up by $932 mil- lion, even though the number of students has gone down. In their final four years in government, the NDP increased social services spending by about $164 mil- lion. I say jobs are better than handouts. In four years the B.C. Liberal government will have reduced social services spending by more than half a billion dollars, and that's a lot.

Over 85,000 people no longer rely on income assistance, and the majority — 60 percent, ac- cording to the surveys — leave for employment, earn- ing two or three times what they were given by the government. The money saved is helping fund the

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8623 government's aggressive expa nsion of health care and education. Getting a job is not a hardship, but don't expect applause from those who believe the ideal economy is one where half of the people are on welfare and the other half work for the government — and that seems to be the model that is frequently suggested — and who also, bald facts notwit hstanding, prattle on end- lessly about cuts to health care and education. I say: where are the cuts in light of the numbers I've just read to you?

Furthermore, of all the provinces in Canada, none has created more jobs than British Columbia. Surely this merits NDP applause and not their condemnation. To put it another way, this Finance minister has man- aged to maintain and even expand the government services network on which society relies, even while creating a more competitive free enterprise business and tax environment. Surely that policy combination is in the best Canadian tradition.

We're once more indebted to the Canadian Centre for Policy Alternatives for spelling out the alternatives — as, indeed, their charter suggests they do — and they've done it again. Just like last year, CCPA missiles again trundled through Red Square, but with a new leader, Carole James, in her greatcoat admiring it all from the reviewing stand atop Lenin's mausoleum. Let's give credit where credit is due.

British Columbi- ans should be grateful to the prior NDP government for sending a couple of hundred thousand dollars over to their friends at the CCPA, thereby preserving a liv- ing museum of socialist ideology which might other- wise have been lost forever. [1445] Once more, we have a through-the-looking-glass glimpse of how life would be should the NDP be in power today. Lewis Carroll would marvel at their eco- nomic tonic, starting with th e upbeat title of their re- port: We've invited the world. They're coming. And the place is a mess . To encourage tidiness, they will intro- duce three big measures.

No. 1 is an incentive-based corporate tax system that rewards companies willing to meet provincial, economic, social and environmental objectives with "carrots and sticks" — their phrase — with the carrots and sticks no doubt defined by the CCPA team. Yeah, that'll do it — nothing tidier than a lot of empty office buildings downtown. The second is a public investment bank — these people love banks — to provide access to capital, par- ticularly non-profit and cooperative ventures. Yup, that'll do it.

Under the new Carole James regime, there will be a lot of non-profit ventures — unfortunately, not all of them planned. Finally, taxes up by 27 percent overall, on the opti- mistic assumption that taxp ayers stoically sit there and just take it. However, British Columbians are mobile. Stock tip: buy WestJet. But we must concede that the decreased traffic on our roads, the empty restaurants and the fewer kids to educate would certainly help fulfil the centre's tidiness objective. Here we see the proposed world of Carole James and the new NDP as advised by the CCPA.

It features the highest tax rate s in North America; a defi- cit budget for at least six years; income tax hikes of 40 percent for those earning between $32,000 and $65,000, squarely targeting card-carrying union members; and an adjustable-rate business tax, fluctuating with the tides of political correctness in Victoria. Lest we forget, let's remember what happened last time when under the influence of this type of advice, the NDP ruled B.C. We had a forest industry hog-tied by David Zirnhelt's famous 12-foot-shelf Forest Prac- tices Code. I see the minister smile.

The mining indus- try fled to more hospitable Mongolia. Public servants were not granted raises for years under the influence of union bosses more interested in expanding the mem- bership base than their salaries. Doctors and nurses were fed up with the above and demanded huge catch- up increases from the new government and got them. A health system was structured around 52 boards — well meaning but unworkable. The economy, on most national indicators, went from first to last.

Having done their best to promise everything to everybody, the NDP shovelled a whole bunch of money overboard as they headed for the life- boats, attached this great big anchor of unmet promises to the sinking ship, tossed it overboard, paddled ashore and hid until the election was over. As a final legacy, the NDP left us with an economy in recession. We now know that in their final term, GDP shrank. In 2001 gross domestic product actually shrank for the first time in 20 years. It was a wobbly platform for the new government to build on and all the more reason to ap- plaud the Finance minister's accomplishment.

As we head into another election, we will all be subjected to more rhetoric about this government's policy of tax cuts for the rich. The argument is made that tax cuts don't pay for themselves. I believe they do, in particular the 25 percent tax cut we gave to low- income persons — for example, resulting in persons earning $30,000 paying the lowest taxes in all of Can- ada. That's what it said in today's Province newspaper. Let's agree to call it the lo w-income tax cut from now on. [1450] Do tax cuts like this pay for themselves?

In fiscal 2000, the last full year prior to the election, tax reve- nues were $13.8 billion. In 2005 tax revenues will be $14.2 billion. We've caught up. The taxes have paid for themselves, I argue. Yes, us er fees also increased sig- nificantly — can't deny that. But more important fac- tors were more jobs — over two million for the first time. This translates into more taxpayers, encouraging people to come here instead of leave.

Last quarter, for the first time, there was net in-migration from the rest of Canada into British Columbia instead of people leav- ing, encouraging higher-income people — and this is huge — who pay the lion's share of the personal in- come tax base, to move here and file income tax returns in British Columbia for the first time. Under this gov- ernment's personal income tax regime, we can now recruit managers, academicians and scientists from

8624 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 around the world but partic ularly from the United States. They're glad to move here because of not only the quality of life but a friendly personal tax environ- ment. This is big stuff. Another factor: encouraging businesses to stay in- stead of moving to Calgary or elsewhere. We've yet to see a surge of returning head offices, but at least the outflow has been staunched. Flight Centre is leading the way, and there will be more, I am sure — more tax dollars for the Finance minist er.

In short, tax cuts pay for themselves, and British Columbia offers the case evidence. I was highly annoyed to pick up the January issue of a local business magazine featuring a picture of our Premier on the cover and the headline stating: "Where's the Prosperity?" What a curi ous question. Prosperity is all around us. Wake up. Evid ence abounds that British Columbia is in the early stages of a massive economic turnaround, and we ain't seen nothing yet. I'll stake my Harvard degrees, my Royal Bank credentials and my Starbucks coffee mug on it.

We all fall into the trap of looking for the blockbuster announcements: Glen Clark's three aluminum smelters — or was it seven? I kind of lost track — or, worse yet, his three aluminum ferries. Forget the blockbusters. In the twenty-first century economic growth is achieved one dollar at a time. It's achieved by smaller enterprises. The relics of the past, such as the major steel companies — not to pick on them, but they do stand out — will soon be forgotten. As structural changes occur, the emerging smaller, more entrepreneurial, more agile enterprises are harder for the journalists to track.

We can appreciate that, but maybe we should excuse them when enterprise growth is unnoticed. The most compelling statistic telling us that eco- nomic growth is occurring is employment — not un- employment but employment. Unemployment tends to measure how many people come here sensing oppor- tunity. You might even say that in British Columbia a high unemployment rate is a measure of success be- cause people are here thinking they're going to find work — and of course they do. [H. Long in the chair.] Rather, employment. Jobs are growing, and hourly wages are going up.

While individual month's statistics may bob and weave and may be used selectively to illustrate whatever point the speechmaker has in mind, the annual wage trend is quite clear. Average annual wage rates in B.C. have increased without interruption for over seven years and co ntinue to do so. Further- more, wage rates are increasing faster than inflation. So real wages are, in fact, goin g up. So let's just stop the debate right here. The NDP need read no further. The policies inherent in this budget are doing what the government set out to do: improve the lives of ordinary people here in British Columbia.

To illustrate the mechanism by which this is hap- pening, let's take a quick tour around the province. Continental Airlines recently signed a ten-year mainte- nance contract with Abbots ford-based Cascade Aero- space, which will create an additional 200 jobs in the Fraser Valley. According to Deloitte and Touche, B.C. has 15 of Canada's 50 top growing high-tech compa- nies. We're tied with Ontario in that regard.

Electronic Arts out in Burnaby is adding over 35,000 square me- tres of studio space to its software operation centre in Burnaby — encouraged, no doubt, by extension of the research development tax credit. Red Chris mine near Iskut in northwestern British Columbia is close to en- tering the permit stage. It will employ upwards of 350 people, including many first nations. [1455] The Ministry of Forests has awarded an employees' group the operation of the Skimikin Nursery near S a l m o n A r m , a n d t h e y p l a n t o e x p a n d t h i s s a p l i n g nursery.

B.C. is back on the charts, attracting 43 percent of all immigrant investors to Canada — the highest since 1997. Vancouver has become one of North America's leaders in biotechnology. In recognition of this, Merck Frosst recently gave a $31 million research grant to the Children's Hospital in Vancouver. The Prince Rupert Port Authority has started con- struction of a new $9 million cruise terminal. Container facilities contemplated to service CN–BCR's new ser- v i c e f r o m R u p e r t t o t h e American Midwest and back again will, I think, provide extraordinary stimulus for Prince Rupert.

Harrison Hot Springs Resort is investing $16 mil- lion in improved facilities — just picking some exam- ples at random. Flight Centre is moving its North American head- quarters here, as I already mentioned. Dunkley mills north of Quesnel is investing $50 million to build a new 90,000-square-foot sawmill. The Fort Nelson first nation has entered into an $8 million partnership with Ensign Drilling to own and operate an oil rig. The greater Victoria film industry brought in $24 million of direct production spending.

In my own back yard, North Vancouver's $400 mil- lion redevelopment of the lower Lonsdale area busi- ness and residential core was recently announced by Mayor Barbara Sharp. This project has been in the works for many years, and we now see its culmination. Over $5 billion of public infrastructure spending is taking off, ranging from the RAV line to the Sea to Sky Highway to the new Fraser crossing to the Kicking Horse Canyon portal from Alberta to new Olympic facilities to water treatment facilities on the North Shore, and on and on and on . I think I've probably un- derestimated the sum.

Finally, the sleeper in the budget is probably the new IFC legislation, which grants our province unique tax privileges — not available in Ontario at all, by the way; this is not very well understood — heretofore only available to Quebec. We've got it. We've got the legislation on the books. It will be shortly, and it's go-

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8625 ing to be a tremendous boost not just to Vancouver but to every community in the heartlands. Headline writers take note: the economy cup is m o r e t h a n h a l f f u l l . I t w i l l s o o n b e o v e r f l o w i n g . T h e contrast with the dismal NDP years is so striking that I don't hesitate to judge that most of this is due to the policies and budgets of this government. Now that the books are being balanced, it may do well to contemplate a couple of policy issues we'll have to face up to in the longer term.

I won't dwell on them, but let me just flag them in passing. The growth of the health sector. Health spending is growing at about 7 percent per year, maybe even faster in some years. That's the longer-term trend in recent years. The economy is only growing half that fast. The health sector continues to expand its share of the econ- omy and its share of government budgets from the low of 40 percent. I heard someone speculate it might even- tually reach 50 percent of the budget. Its share of the economy, now 10 percent or 11 percent in B.C., is al- ready at 15 percent in the bellwether United States.

Is that a harbinger of things to come? What are the fiscal and management consequences of a government that is half health care and half everything else? I don't be- lieve we've begun to seriously consider the conse- quences, but it does illustrate that the system must change, and that is what we are trying to do. A second issue that merits some sober contempla- tion — and one I know the Solicitor General has tried repeatedly to focus our minds on — is the growth of the underground economy, particularly the criminal underground economy, in British Columbia.

The situa- tion we face, if I could steal an anecdote from the member for Sunshine Coast, was reported in a recent newspaper story from that part of the world. [1500] It seems a local member of the Sunshine Coast re- gional government — this is an elected official; this is part of our leadership in this province — noticed that logging didn't have the occupational vitality it once had. He suggested to the media that the police should back off to allow marijuana grow ops the full opportu- nity to fill the void in logging. This is what our leader- s h i p i s s a y i n g u p t h e r e .

E x p a n d t h i s t o a p p r o x i m a t e l y $5 billion, and the magnitude of this one underground sector…. It's by no means the only one. This one un- derground sector — unregulated, untaxed, danger- ously criminal and illegal — is, in my view, both frightening and cause for lo nger-term fiscal reflection. This is a huge chunk of the economy, and it impacts all of us — but merely looked at in economic terms; forget about the criminal dimensions. Summing up, as I contem plate the future, please forgive me if my thoughts turn again to Will Shake- speare.

British Columbia is a small place — only four million people in a sea of 400 million on this continent, only 1 percent in a sea of four billion around the world, a fraction of 1 percent. What can this tiny enterprise we call British Columbia accomplish, and how? We've already accomplished a great deal. We've created a quality of life ranked first in the world by objective observers. We've protected the unmatched splendour of our environment. We live healthy life- styles which are the envy of demographers and health scientists around the world. We educate our people to first-class standards.

How can we create the conditions by which this small, talented, robust group of people assembled here from all over the world…? How can this group take on the world and win? It's a brave goal. On another field, almost 600 years ago an English king rallied his heavily outnumbered troops with these words: "The fewer the men, the greater the share of the honour." Let this government be remembered for its valour, for the fights it has fought and won, and for the integrity of its purpose: to create a better British Co- lumbia for ourselves and for our grandchildren. P. Nettleton: Thank you, Mr.

Speaker, for this op- portunity to respond to the budget. In his opening remarks to the budget speech yes- terday, the Minister of Finance stopped short of declar- ing 2003 an annus horribilis. Instead, he said it was marked by an unforeseeable and unparalleled string of natural disasters. That was an understatement, espe- cially when you include, as I will, the string of man- made disasters inflicted upon British Columbians by this government. Thankfully, they were forced to re- treat from some of these horrendous decisions.

The Finance minister said that we had faced some of the toughest challenges we had ever seen. I'm won- dering: is that an admission, or is he seeking sympathy for the government's mishandling of the various situa- tions? He went on to applaud the people of British Colum- bia for rising to the occasion. The same cannot be said for the government, except when they retreated in the face of a population angered at the war waged upon them by their own government, who are part and parcel of these hardships which they did little to alleviate.

This is not the time to turn back or change course, the Finance minister warned. What got us here were tough decisions, he mainta ined. I ask the Finance min- ister and the Premier: just where are we today? The people of B.C. will tell you. They have told you many times, but you won't listen. Hard times are where we are today — not just yes- terday, today.

In this day of the so-called balanced budget, the Finance minister says: "That was what we inherited." I'm wondering: how long can this govern- ment continue to blame others for their mismanage- ment of taxpayer money and abuse of every British Columbian in this ideological war they continue to wage, where money is placed above the dignity and the rights of people? [1505] The minister said that the story of B.C. today em- bodies the Spirit of 2010. Hopefully, the Spirit of 2010 will not reflect the spirit of 2001 through 2003. God forbid that should be the case. This government likes to do something.

It likes to turn the clock and the cale ndar back to 1999 and for-

8626 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 ward to 2010, hoping the annus horribilis — that is the times this government has presided over — will some- how disappear. Steadily, under this government, each year has progressively worsened, despite their retreat- ing from some of the mean-spirited decisions they have tried to force through. Now we are faced with more promises, as there were each previous year, and claims that the corner has been turned towards that elusive prosperity and the golden new era.

Government funding is increasing, we are told, but I note this is mainly to ministries that have failed to achieve their promised mandate or are in some diffi- culty. In fact, such bailouts are merely bucket brigade bailouts to stop those ships from sinking. What has hap- pened to the across-the-board restraint and cutbacks that this government touted and proclaimed so arrogantly? The original agenda is in disarray with no cohesive program to replace it.

Mere paper and mere words, the Finance minister's prognostications will be tested when the rubber meets the road — out where the average British Columbian lives and works, including the so- called heartlands. The minister says we have weathered the economic storms of the past few years. I'm wondering where he has been living — Hawaii? The only place the govern- ment has seen fit to hold the line of fiscal restraint is with those groups the polls reveal as being the least likely to have public opinion on their side. Health care workers and doctors are amon g these.

It is a scratch- my-back-and-I'll-scratch-yours government, embold- ened by public opinion. The minister says no to teach- ers and yes to students, no to doctors and yes to pa- tients, no to government workers and yes to the public. Great-sounding words, but I am not at all optimistic that students will find a "yes" to their needs in this speculative budget, and neither will the long-suffering B.C. public. As a Liberal, I am shocked at the Machiavellian ideology this government has tried to implement, but not at the whirlwind these policies have been reaping even to this day of supposed budgetary success.

It's like calling the rehabilitation of a bank robber success- ful because he no longer em ploys a gun but rather re- sorts to a knife. With this government, I say, "I'm from Missouri," and I say: "Show me that B.C. is a better place for Brit- ish Columbians today." Show me that this government has people at the heart of its policies. Show me that this government is rehabilitated and is now truly listening to the people as the Premier claims. No, I am forced to take a wait-and-see attitude to this budget and to the government that has produced it. So, how good or bad is the economic situation in B.C.?

Let's hear it from the horse's mouth. The follow- ing quotes are from the Minister of Finance as given in the budget speech: "We will have the balanced budget as promised by the Premier, in spite of a decade of de- cline and of people losing hope, of them giving up on British Columbia and of young people leaving the province.

The Premier promis ed to turn this around, and he has," claimed the minister. [1510] Despite all this negative news and the disasters that have damaged the economy, the Finance minister says he expects the government to end 2003-04 with a bal- anced budget and a deficit of, in his words "only $1.7 billion." This is the truth, he said in the budget speech, because the government passed a law that they have to tell the truth about how they handle taxpayers' money.

He said: "There is no longer the ability in B.C. for gov- ernments to push a deficit onto Crown corporations or organizations such as school districts." Mr. Minister, how enlightening. He went on to say: "The budget we are presenting today shows the whole picture." Again, how enlightening — the whole truth and nothing but the truth, so help me God. Also looming above all British Columbians like a dark storm cloud is the sp ectre of the $39 billion pro- vincial debt, which has grown by approximately $6.5 billion since the B.C. Liberals came to power in 2001.

For a province of four million people, that is the most massive debt I have ever heard of. By the way, $39 bil- lion is the same debt as the state of California with a population, in contrast to British Columbia, of 37 mil- lion people — which has crippled them. Their debt load is so heavy that they have called on Arnold Schwarzenegger to help lift it. We don't have an Ar- nold, so the heavy lifting is all up to the backs of the people of British Columbia. I very much doubt we have seen the end of that story. I'm no accountant.

The Fi nance minister, a former airline pilot and flight instructor, wisely relies on bean- counters and accountants to give him the goods. What does the average B.C. taxp ayer do to get answers? Well, they rely in part on people like myself to ask questions in an attempt to hold this government to account. I tell you that they, too… Most of them are from Missouri when it comes to this legislative body. "Show me; tell me. Is it so?" Time will tell, and I would say that time is not on this government's side. B.

Kerr: I'm glad to hear that our member for Prince George–Omineca thinks debt should be reduced and the debt is a burden on our future generations, because that's one area where I do agree with him. I've got a confession to make, because last night I was a lamb led to slaughter. Fortunately, nobody was watching. I was on the Moe Sihota show. He did what some of the other opposition members have done. He got into the minutiae of th e budget. We were there for an hour, and he got in and started hammering us on the minutiae of the budget. Quite clearly, it was diffi- cult. I didn't know some of the answers.

I would like to get on the record what I should have said, so I can get it off my chest and say it now. When he was asking me a question that was on a $2 million item on page 65 of the Estimates, I should have really stopped him right there. I should have said: "Moe, we have a $30 billion budget. It's balanced. It's going to increase the economy. It's going to create more jobs. It's going to put 25,000 more students back in university and lower the averages that they need to get into uni-

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8627 versity. We're going to put a billion dollars more into health care. We're going to put $300 million more to education. Why are you talking to me about $2 mil- lion?" That's what I should have said, and I didn't. In- stead, I tried to answer the question. Hon. M. de Jong: But the same number of viewers are watching this that watched last night. B. Kerr: Well, that's what I'm hoping. I'm hoping the same number of viewers are watching this now, so I can say the right things and balance the record. He asked me another question on unemployment.

Instead I listened to him when I should have said, "Wait a sec," like the member for West Vancouver– Capilano. "Let's talk about the jobs that are created. For the first time ever two million people are working in British Columbia. We are number one in new job growth. Don't talk to me ab out unemployment. Talk to me about employment and about opportunities in Brit- ish Columbia." That's what I should have said. I didn't, so I apologize. Now I got that off my chest, and I feel m u c h b e t t e r .

I h o p e t h e s a m e n u m b e r o f p e o p l e a r e watching that were watching his show. [1515] I said before that every so often as I sit in this House, things are said or ev ents take place which rein- force why I got into politics. The last time was in No- vember when the member for Vancouver-Hastings railed on about the government because CN Rail might make a profit. She was prepared to forgo any economic development in the north along with added jobs, be- cause CN was going to make a profit. That's what sets her government apart from ours. We don't agree that profit is a four-letter word.

We believe profit or its po- tential is what drives business. When business sees the potential for profit, it invests. It's that investment that creates jobs and economic prosperity. That incident is but one of many reasons why I en- tered into politics. Going back to the beginning, it was a lack of any desire by the previous government to manage the debt and balance the budget. Balancing the budget was foremost in my mind. It was the reason why I put my personal life on hold to enter into public life. So I'm relieved. I'm pleased.

To quote my colleague from Prince George–Mount Robson: "I'm even excited that on this, our penultimate budget in our first term, we have balanced the budget." When I say balanced, I mean this will be a balanced budget according to generally accepted accounting principles. This budget does not have any qualifiers like the last balanced budget of the NDP. That budget, buried away back on page 95…. The Finance minister at that time admitted that although the budget was balanced, meeting the goals of that budget could not actually be met.

In other wo rds, their budget, to quote the recent words of the president of the BCMA, was "just a piece of paper." Generally accepted accounting principles is a very important concept. British Columbia is the first prov- ince to present its budget according to GAAP. What does this mean? This means that for the first time, the auditor general will not have to qualify his audit report in the consolidated accounts. It also means there could be no chicanery in the books. I remember a former government budget…. They brought $450 million into the books that really made the financial picture look much brighter.

Under generally accepted accounting principles, this $450 million would never have shown in the books. As it was, the government was forced to write off that amount the following year. I believe this was the first fudge-it budget. Quite frankly, these last few years have been brutal. It started with the recognition and the meltdown of the high-tech economy. Then we were faced with 9/11, the softwood lumber dispute, SARS and its effect on tour- ism, forest fires, floods an d BSE. I know it's taken a tremendous amount of discipline to stay focused on balancing the budget.

With all the excuses available it would have been easy to postpone it, but some gov- ernment at some time must have the conviction, the courage and the fortitude to suffer the slings and ar- rows and do what is right, not what is easy. On behalf of my grandchildren, who will benefit from this budget, I would like to give my sincere thanks to the minister for showing such courage and conviction. I served on the Select Standing Committee on Fi- nance and Government Services.

It was our responsi- bility to travel the province and seek out input on what the public thought should be included in the budget and what priorities the go vernment should set when the money is available. We travelled through 11 differ- ent communities and received over 200 submissions from people from all walks of life. What did we hear? First, we heard from almost every presenter to stay the course and balance the budget. Second, we heard them say stay focused on economic development. We also heard them say we must address the skill-shortage issue. Has the minister listened? Let's look at what's in the budget.

To begin with, we did just as we pr omised and the budget is balanced. We projected $100 million surplus this year, and in fact we're not stopping there. We're projecting increased surpluses for the ne xt two years. With only four balanced budgets in 24 years, we're very proud of our ability to hand down three in a row starting this year. We're investing $1.3 billion to bring out the best in health care and education. We're putting more than $300 million right into education over the next three years. We're going to put $105 million into post- secondary education.

This budget puts $1 billion into health care, over $1 billion into transportation infra- structure, over $170 million into our forests and $17 million into offshore oil and gas. It sounds to me like the minister was listening to British Columbians. [1520] At the beginning of my speech, I mentioned there had been pivotal points to reinforce my decision as to why I entered politics, and I would like to compare our government's budget to the alternative budget that was presented last week. This was offered by the NDP

8628 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 think tank. This is on the website; anybody can see it. Under their budget, taxes would increase to some citi- zens by over 100 percent. The deficit would carry on until 2010 and most likely beyond. Corporate taxes would increase considerably, with the proviso that tax credits would be offered for companies that follow the government's social program. Didn't the opposition le arn anything from their t i m e i n o f f i c e ? W e h a v e w o r k e d s o h a r d t o e n c o u r a g e companies to invest in B.C.

We have worked so hard to bring investment back to the province after years of decline, and our policies have been working. Virtually every economic indicator is up. In most categories B.C. is first or second in Canada. If that's not good news, I don't know what is. Our government has been a government of devel- opment and growth. Building permits are up. The value of building permits in British Columbia grew 13 percent in 2003, and that's well above the national av- erage of 7½ percent. We are leaders in Canada. The value of residential permits is up 16.2 percent — nearly double the national average.

That's exciting news. We had almost $6.4 billion worth of building starts in B.C. alone last year. That's $6.4 billion of investment, $6.4 billion worth of growth. We're predicted to be the only one of two provinces in all of Canada expected to continue to grow in housing starts. We're anticipated to increase housing developmen ts by 3.2 percent, and that's the most growth in housing in Canada. The best part of this is that the same survey predicted continu- ing growth right through 2005. We are growing, and it is not just a short-term thing.

There is only one reason that new homes are needed, and that's because more people are working and more families are growing. Since the end of 2001 there have been nearly 160,000 new jobs in British Co- lumbia. This is the kind of news that tells us we're right on track. We set out to impr ove B.C.'s economy, to get people back to work and to rebuild British Columbia, and we're doing it. Because of the leadership of our Premier and his cabinet, we now have more people in B.C. working than ever before. The economic recovery we have been experiencing is inspiring more than just me.

Consumer confidence in B.C. is the highest in Canada. Despite having economic powerhouses like Ontario and Alberta to compete with, we are number one. And why not? We have vast resources that they're now allowing us to be devel- oped. We have the most livable city in the world, we have the most beautiful parks in the world, and we have the most beautiful island in all of the Americas. B.C. has everything to offer, and now that we've opened ourselves up again, the world is taking notice. In fact, 2003 was the first year in the last six where more people moved to B.C. than moved out.

I'm so excited about this news; it's great to hear that B.C. is doing so well. And 2004 is going to be another stellar year for B.C. According to TD Bank forecasts, we're going to have the second-highest GDP growth in the country. Some economists expect 3.3 percent GDP growth this year. That's $4 billion worth of GDP growth. We're well above the national average. This is just one more ex- ample of how we are taking the lead in B.C. Small and medium-sized businesses play an excep- tionally vital role in B.C.'s growth and are a large part of why we're continuing to grow so impressively.

In fact, according to the Canadian Federation of Inde- pendent Business, our small and medium-sized busi- nesses are more confident than their counterparts in any other part of Canada, and that says a lot about the leadership of our Premier and our government. When the people who take on the risk and respon- sibility of starting up and running a small business feel comfortable investing their time and money in B.C., it acts as an incentive for the larger investors to make that same decision also.

Because of the growing confidence, the number of small business es increased for the first time in 2002, after three years of back-to-back decline. [1525] We should also make no mistake. Individual small businesses may be small, but small businesses play no small role in our economy. Fifty-eight percent of the jobs in this province come from small businesses. When small business does well, B.C. does well. Thirty percent of our GDP comes from small businesses. With 58 percent of the jobs and 30 percent of the GDP, it's hardly fair for us to call them small business.

This en- trepreneurial spirit is what drives B.C. to become the best province in the whole country. Right here in Victoria we've seen record-breaking TV and film production. This is a 63 percent increase over 2002. That's $23.8 million invested right here in the capital region. It is undeniably that 6 percent tax credit for labour costs and filming outside greater Van- couver…. We are really bringing out the best in British Columbia. We also believe in getting the government out of the business of running businesses. Our partnership with CN Rail to operate B.C.

Rail is going to make B.C. the hub of trade between Asia and North America. Prince Rupert will be revitalized when almost all the trade traffic from Asia goes through it, but the benefits of B.C. Rail aren't limited to the North Coast. By paying off B.C. Rail's debt, it's going to save the province $30 million every year. In B.C. we're excited about the 2010 games that are going to be in Vancouver and Whistler. With the de- velopment of tourism we're going to see as a result of these games, it is going to blow everybody away. I'm sure of it.

The spirit of B.C. is evident in the growth we are seeing now and will continue to see over the next six years and beyond. Vancouver is a world-class city in a world-class province. This province has grown by leaps and bounds in the past few years and will continue to do so. I'm proud of the work done by our government and our Premier. B.C. is open for business, and the business is coming. Now the opposition would chase these companies back across the border with their draconian tax cuts and their spend-deficit financing measures. During the

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8629 term of their office over 500 companies moved to Al- berta. Alberta has far more head offices than B.C. Make no mistake. Head offices bring a huge advantage to their communities. I would like to explain, si mply, why tax cuts are so important. I would like to bring it down into the gro- cery business. Let's assume you run a small grocery store but find that because of the competition, high wage costs and possibly poor management, you are not able to show a profit. This means you can't expand or purchase new equipment to make your store more effi- cient.

You see, profits are necessary lifeblood for corpora- tions. Without profits, companies can't survive, but that's not the point. My point is that if you were an NDP manager, you would merely say: "Well, I need more money, so why don't I raise the price of milk to $10 per jug and the price of a loaf of bread to $5. Then I will have all the money I need." Well, you know what would happen if you followed that path. Nobody would shop in your store. It is no different for this province. If we raise taxes to corporations, why would they invest in this province when there are so many other places to invest?

If we raise taxes to our doctors up to 40 percent as suggested by the NDP budget — and in some cases 105 percent — they'll go elsewhere. What about our nurses and teach- ers, who are also going to find their taxes taking a huge increase — up to 40 percent? This doesn't include the huge hidden tax on our children by carrying successive deficit budgets year after year after year. Make no mistake. It is our children and grandchildren that will be paying the interest on those deficits, and that interest will have a huge effect on their ability to pay for the social programs they need.

I looked at the alternative budget they presented, even further. Mr. Speaker, they plan to set up a bank to compete with real banks. Di dn't they learn from the Four Corners fiasco? They're now going to run a deficit so they can finance the ba nk. Private sector banks know their businesses — we all know, when you nego- tiate with your banker — better than any government could ever know the banking business. That is the difference between them and us. They would raise taxes without considering the conse- quences. They would increa se the deficit without any thought to the future.

They would build a huge bu- reaucracy under the guise of social spending, without any thought as to how the costs would be paid by fu- ture generations. They wo uld drive business from the province and slide us back to the decade of decline. Under the proposed NDP budget, they would be increasing taxes and still be unable to balance the budget. Not only would they be unable to balance the budget this year, but not even next year. Under the NDP's proposed budget, th e y w o u l d n ' t h a v e a b a l - anced budget into 2010.

I believe they would never balance the budget because they wouldn't have the courage and fortitude to do that. The NDP wants to tax and spend this province in to fiscal oblivion. We've brought ourselves from last place to first place since the NDP left office, and I don't want to see us go back there. [1530] Under the NDP budget the average family in B.C. would face up to a 40 percent tax increase. Under their budget they would take nearly $3 billion more in taxes. That's $3 billion of discretionary spending they're tak- ing out of the economy.

We've had a huge increase in housing starts, and we've had huge housing sales. One of the reasons we've done that is because take-home pay has in- creased. What do young families do? They look at their take-home pay, and they say: "How much money am I taking? What's my mortgage going to be? I can buy a house." Take that $3 billion discretionary spending away, and we would have hundreds and hundreds, maybe thousands, of families that would never be able to afford to live in a house or send their children to university. Access would be denied.

That's $3 billion they're taking away from working British Columbians — so much for sticking up for the worker. The NDP wants to raise taxes and increase the defi- cit, and that just doesn't make sense. It's not good enough for the NDP to make us pay for their waste; they want to saddle our children and our grandchil- dren with it too. The path we've set out for ourselves is a path that has worked in other parts of Canada, other successful parts of Canada. It's hard to believe, but it wasn't that long ago that Canada's economic superpower, our neighbour Alberta, itself had a deficit.

In 1993 when Ralph Klein took office, Alberta faced more than a $2 billion deficit. They promised to have a balanced budget by 1997, and in fact they had it sooner. Alberta's success is a testament to fiscal responsibility and stay- ing the course. It's no wonder business left British Co- lumbia under the NDP and went to Alberta. W h e n w e c a m e t o o f f i c e , w e m a d e p r o m i s e s , a n d we're keeping them. We prom ised to maintain health and education funding, and we have. We promised to cut red tape, and we have.

We promised to make B.C. the best province in Canada in which to do business and to live, and we have. We promised to balance the budget, and as of yesterday we have. I got into politics to help bring our economy back in line, and I have to say that today I feel pretty satisfied with the work we've done. We have some of the best- paid professionals in Canada, we have a world-class health care system, we have some of the best schools in Canada, we have the best cities and the best islands in the Americas, and we are trul y bringing out the best in B.C. and in Canada.

I'm glad that the NDP gave us a choice by coming out with an alternate budg et, because the choice is simple. I choose a balanced budget, freeing our chil- dren and grandchildren from the shackles of debt. I choose a budget that keeps our taxes at the lowest pos- sible rate. I choose a budget that encourages business investment. I choose a budget that creates jobs. I choose a budget with a proven trac k record. I choose a budget

8630 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 that has taken British Columbia from the worst posi- tion, under the NDP, back to first. I choose a budget which will make British Colum- bia the best province in Canada to live, to work, to in- vest, to play and ultimately to retire. I choose to live in British Columbia because it is the best place in Canada to live, and I want to see that for my children and for my grandchildren and for their grandchildren. Hon. R. Coleman: I ' m p l e a s e d t o b e a b l e t o r i s e today and speak to the budget debate, for a number of reasons.

I look back at when I first came to this House in 1996 through to 2001. I saw the inability of a group that probably never had to do anything more than col- lect a paycheque — never actually had to make a deci- sion to make an investment or meet a payroll or decide how to make an investment — take my province and my future and my grandchildren's future and my chil- dren's future down the road to disaster. When this government came into place in 2001, we had made some commitments to British Columbia, and one of them was to balance the budget.

It was probably the cornerstone commitment to the people of this prov- ince. Everybody knows that if you continue to spend more than you take in, you eventually go broke. Eve- rybody knows that if you cannot find efficiencies in how you operate your business or your home or your daily life to meet what you have coming in and you're not prepared to make the changes to do those things, you find yourself in financial trouble.

Everybody knows that you have to make prudent investments at the beginning of a plan in order for the end of the plan to work. [1535] Could you imagine somebody today saying that they still wanted to build automobiles on the same assembly line as they built the Model-T, because they refused to change and modernize and make additional investments so they could improve their efficiencies and deliver their product to marketplace?

Could you imagine that somebody said: "We're going to stay with wire and never do fibre optics because we only have wire and don't want to find anything new that we can do for efficiencies and impr ovement of our business"? Could you imagine if you never invested in your infra- structure? You just watched the roads go downhill, the rails go downhill and never actually opened an airport or made it larger so you can actually attract people to come to your country. That's the philosophy of a socialist.

The philosophy of a socialist is: let's take everybody else's money, give it to special interests and friends and insiders, and never actually do what is right for the future business plan of a province or a country or a community. Back in 2001 we undertook a core review of gov- ernment. It was no easy thin g to do. We had to look at how government did business. We actually had to take a step outside the box and ask, first of al l: i s this pro- g r a m o r t h i s e x p e n d i t u r e c o r e t o w h a t g o v e r n m e n t should be providing to ou r citizens?

Then, once we made that decision: is this the best way to deliver to the people that are citizens of our communities? We found a whole number of things out there that were being funded by the previous government in cer- tain ways that had excess administration, excess over- heads and very poor delivery on actual services to people in our communities. We saw that in such a way that we noticed that we had to actually change how the people did government.

We did that as we moved for- ward to get to a balanced budget and at the same time try and find a way we can improve services and im- prove funding to our communities to build a strong future for the people of this province. As you do that, there are a number of confidences you've got to bring back into your society.

First of all, you have people internationally — whether it be bond- rating agencies or the banking industry or investors — who look at your jurisdiction and ask this: "Are these guys going to manage their province in such a way and change their structure in such a way that it makes sense for us to make an investment in their province?" When we became government, we had a high level of personal income tax, so we cut it by 25 percent.

We had a punitive tax on investment, called the corporate capi- tal tax, in this province which pushed people away from building a mill or making an investment in this province because of the ongoing cost. To tax some- body's actual risk money in an investment to create jobs in your jurisdiction is absolute nonsense as far as wanting to let people know that you are a place for business.

As we laid out our plan over the last few years and started to put in three-year plans in a cycle and build towards a balanced budget that in a three-year plan- ning cycle is now going to be balanced in three succes- sive years with surpluses, we did that knowing that if we did, we would start to have a whole shift in how people looked at British Columbia. The shift would be that investment would come back, that confidence in this province's ability to deliver on the international stage would come back, and that the confidence of its own people as we created jobs and saw an increase in jobs would come back.

More importantly, as we did that, we would also make the tough decisions that would allow us to revi- talize our key sectors of forestry, mining, tourism and other job creation areas.

You have to do that with the confidence that you know you're doing it right, with the confidence that you know at times you're going to have to adjust your plan, and with the confidence that you know at the end of the day your province and the people you represent will be better for it. [1540] On July 2 one of the most significant international bodies in this world showed confidence in British Co- lumbia, as the International Olympic Committee awarded the 2010 Games to British Columbia. Now, they awarded those games to this province because they saw a number of thin gs.

They saw a vision and stability in the Premier of the province of British Co- lumbia. They saw stability in their government, and

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8631 they saw stability in the fact that we would actually be in a fiscal position through planning and balancing our budgets to make an investment in the Olympics and meet the commitment we made to them to pull off an international event. By getting our fiscal house in order, we have actu- ally saved our interest costs, we've lowered our bond rating and our interest costs, and that money can now flow to things like health care and education.

I don't know that you would find a jurisdiction anywhere which, six years out from an international event like the Olympics, has already funded over 20 percent of its infrastructure costs, becaus e they actually have some planning in place and they actually believe and know exactly what they're trying to accomplish. What happens when you get this momentum with something like the 2010 Olympics is that along comes the 2006 World Junior Hock ey Championship. What also comes along is the 2009 World Police and Fire Games — three significant international events to be staged in British Columbia in 2006, 2009 and 2010.

In 2006 communities across this province will see interna- tional junior hockey in their communities, and three communities will host international games as part of the tournament. In 2009 the second-largest sporting event, by participant, in the world will come to Bur- naby in the World Police and Fire Games. I want to talk about that for a second, because I want to talk about two people — two firemen in Bur- naby who put $2,500 (U.S.) on each of their Visa cards to pay the deposit to go after the World Police and Fire Games. They told their spouses after they did that.

They then came to us as a government and asked if we could support them in the bid. There was support from the people at 2010, and th ere was support from the province. We met with the people, and they secured the bid. Over 13,000 people will come to participate in the World Police and Fire Games. The unique thing about that event is that most of them bring their family, because they turn it into their holiday for the year. In Barcelona there were over 12,000 people at the World Police and Fire Games.

This event will have a significant impact on the lower mainland, but it will also give us the opportunity to actually test our volunteers in preparation for six months later, the 2010 Olympics, which — if you can think about it — will be the most significant thing that can happen on an international stage for our province since Expo 86. There are open ing ceremonies that take place at the Olympics. At the Salt Lake City Olympics there were two billion people that watched the three- hour opening ceremonies.

If you went to any international company, any business anywhere, and said: "How would you like to have a three-hour full-paid commercial to two billion people about your business…?" Can you imagine that? All of those people are going to be looking at British Columbia. I remember the day a week ago, when I was walking over to do an interview at a radio station, in the sunshine. It was the day that was exactly six years away from the opening ceremony of the 2010 Olym- pics.

There was snow on th e North Shore mountains, the sun was out, there were ships in the harbour, and it was one of the most spectacular sights you could ever see. That's what people are going to see when the 2010 Olympics come to British Columbia.

All of this is possible because we have been gifted with a leader in our Premier who can focus on the ball and actually reach the goal to achieve something on behalf of the people of this province and who does not go out and seek the accolades to do it but rather builds a team to make it happen. [1545] The winning of the 2010 Olympics is no different than the balanced budget. It takes leadership, and that leadership comes from the Premier, who, along with the Finance minister, has stayed the course.

Frankly, sometimes for a minister that can be frustrating, as you think of some little thing that you think is more impor- tant and you have to be reminded, as a minister, what the long-term goal of the province is and that you have to keep your eye on the ball. Sometimes you have to suck it up and make the sacrifices that are necessary so that everybody will balance their budgets. But as you move forward and you do this, there are a lot of things you can do. If you actually take the funds you spend on something and retarget them, great things can happen. I want to use one small exam- ple.

We had victims programs in this province when I became the minister and we became government. We were given the challenge to see if we could improve that program within the envelope of money that exists today. We looked at the duplication. We looked at the over-administration. As a result of thinking outside the box — like the core review and all these other exercises taught us — we were able, within the funding enve- lope, to create 18 new police-based victims programs, on top of the ones that were already being funded, and five to seven new specialized victims programs in communities of over 100,000 people.

We're able to do that because we focused our eye on the ball. The eye on the ball was: how can we get the maximum number of services to the victim with in that budget? Not the eye on the ball that in the past would have seen: "Let's give a contract to some organization that is a friend of ours." A s w e m o v e f o r w a r d , w e h a v e t o r e m e m b e r t h a t everything we've done in the last two and a half years is setting the stage for a gr eat future. To achieve that great future, we have to stay the course.

We have to remember that our own fiscal responsibility as mem- bers of government will continue to be challenged as w e m a k e s u r e t h a t b u d g e t i s b a l a n c e d a n d w e r e a c h our goals in the next three years. As we do that, we will continue to see things start to happen in this province. We will see, on top of the already great increase in investment in the mining in- dustry, significantly more increase in investment.

We will see our competitiveness start to be relished by other jurisdictions as they see the impact of cutting one-third of our red tape an d regulations in the first three years, as they see ho w by retargeting our funds we can actually invest in the future and deliver better

8632 B RITISH COLUMBIA DEBATES W EDNESDAY, FEBRUARY 18, 2004 on programs, and as they start to see how those changes and that focus will actually bring us better health care and education for our citizens. It will also show people how you can get to low unemployment and how you can actually create jobs, because you let the power of free enterprise do it for you. A mistake of socialist governments is that they think they're job creators.

A mistake of socialist gov- ernments is that they think they just need to go out and tax you more, as Carole Jame s has told the people of this province, so that they can give you more of what they think you need and so they can tell you how to live your life and spend your money back to you.

But you know, if that budget of Carole James and the NDP were ever to come forward in this province, all those people that have had the opportunity of home owner- ship — as the growth in housing starts and sales has grown in the last two years — would be facing an in- ability to pay their mortgages, because somebody would come along and take between 40 percent and 110 percent of their income in increased taxes in British Columbia. That's not acceptable.

Leave the money in the pockets of the people who can make the best deci- sions as to where their money should be spent, and you will reinvigorate the economy and create jobs in British Columbia. As we've gone through this to this budget, this budget outlines the money we 're prepared to invest in forests — money that is needed so we can expand and enhance our timber sales to put ourselves on a more level playing field in competition with our neighbour to the south and eventually get to a long-term solution to the softwood lumber deal.

It also allows us to invest money in salvage operations, something that has been called for by small salvage operators since I was elected to this Legislature in 1996. [1550] We're also going to build on the Premier's efforts and the efforts of my colleague the Minister of Forests to open new markets for British Columbia timber as we go forward to actually say to people — and hear this here: "This is not a sunset industry; this is a sunrise industry.

It's important to th e future of the people of British Columbia, and we're going to work with it to make it better in the future, because we can actually think outside the box." When we were in opposition, investment in mining reached an all-time low. It was actually disgusting. It was disgusting that there was a government which did not recognize that an investment in exploration led to significant investment in mines, which created very good-paying and sustainable long-term jobs for people in British Columbia. They didn't care. Their attitude was that you weren't welcome here.

We had people in my riding, people that I knew, who had been involved in mining for years — still liv- ing in British Columbia — who were doing all their investment in Chile. They were actually doing their business in other countries around the world because they told me the worst place to do it was in the very province that they came fr om. They told me the best geologists and engineers were actually going offshore to other countries because we were the worst place to do business. Well, it has taken a lot of work, but you now see today the investment and the exploration in mining going up.

We've actually made some changes on flow- through shares that can help us attract back the in- vestment in British Columbia, but there's a lot more work to be done. We're going to do it because it's actu- ally good for the people of the province. You know, it really strikes me as interesting when I drive through the lower mainland of B.C. and I look up on a hillside and see it covered in homes. Homes from door to door, from wall to wall, from ceiling to ceiling — basically, a clearcut of a mountainside.

A residential subdivision sits in a larger footprint than a mine that can create jobs for 30 or 40 years in British Columbia and can be reclaimed at the end of its lifetime. It strikes me as amazing that people don't get the fact that mining is environmentally sustainable. Not only that, its mark on the landscape is like a pinprick on the side of a mountain, when you look at the land- scape and the size and the br eadth of this great prov- ince of ours. So, we're going to attract that investment.

If you listen to the opposition — and even the member for Prince George–Omineca, who seemed to believe that we shouldn't go after the resources of coal- bed methane, natural gas and offshore oil and gas — they seem to think we shouldn't have that investment attracted into the province so that we can create jobs and wealth, which creates more jobs, which also helps us sustain health care and education.

What it is, I guess, is that they feel they could never actually accept that people of a free enterprise government could have a good idea, that they coul d deliver on something they couldn't even get out of the front gate as far as a dis- cussion was concerned. We're fortunate in this province because we have the leadership of our Minister of Energy and Mines, who has actually gone after the improvement of the oil and gas sector.

We have a caucus that had a mining task force that went look ing at how we can improve the investment in mining in B.C. — a group of people who have all worked together to actually enhance how we can get investment on the ground. And it's work- ing. It's working because something innovative happens here. You can actually come and speak to government.

You can actually have a conversation, and if it makes sense and it is environmenta lly sustainable, that gov- ernment will move forward for the benefit of the peo- ple of the province and not for some special interest group that is not prepared to put real science on the table to justify their position that is opposed to a devel- opment. We also know that as we build an economy, we need to build our educational process. That's why in this budget over half of the new post-secondary educa- tion positions that were promised by the Premier in the throne speech are being funded into 2006-07.

Let's un- derstand something here. The cost of a post-secondary

WEDNESDAY, FEBRUARY 18, 2004 B RITISH COLUMBIA DEBATES 8633 education on the tuition level is one of the lowest costs that people getting a university degree actually spend. [1555] I've had a child go through post-secondary educa- tion. I can tell you that the food, the rent, the transporta- tion, the books and then the tuition are all combined in a cost of education. If you have to take a year more or two years more or three years mo re because there aren't the courses for you, every single year

Document details

Collection	British Columbia — Debates (Hansard)
Citation	h0218pm-09
Type	hansard
Volume / chapter	h0218pm 09
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	865fd48a9440909f01b9ba181ab6bd082f0bba34

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