British Columbia Hansard — WEDNESDAY, FEBRUARY 25, 2004
20040225pm-Hansard-v20n16
British Columbia — Debates (Hansard)
2004 Legislative Session: 5th Session, 37th Parliament
HANSARD
The following electronic version is for informational purposes
only.
The printed version remains the official version.
Official Report of
DEBATES OF THE LEGISLATIVE ASSEMBLY
(Hansard)
WEDNESDAY, FEBRUARY 25, 2004
Afternoon Sitting
Volume 20, Number 16
CONTENTS
Routine Proceedings
Page
Introductions by Members
Statements (Standing Order 25 B )
2004 B.C. Winter Games
G. Trumper
Mountain pine beetle and wood
products
D. MacKay
Economic development in Powell River–Sunshine
Coast
H. Long
Oral Questions
Disability benefits eligibility
review and auditor general's report
J. Kwan
Hon. S.
Hagen
Hiring of Doug Walls by Children and
Family Development ministry
J. MacPhail
Hon. S.
Hagen
Hiring of Doug Walls and release of
Children and Family Development ministry audit
J. MacPhail
Hon. C.
Clark
Crown prosecutors' salaries
P. Nettleton
Hon. G.
Plant
Committee of Supply
Supplementary Estimates: Ministry of
Agriculture, Food and Fisheries
J. MacPhail
Hon. J. van
Dongen
P. Nettleton
Introduction and First Reading
of Bills
Supply Act, 2003-2004 (Supplementary
Estimates No. 3) (Bill 9)
Hon. G.
Collins
Second Reading of Bills
Supply Act, 2003-2004 (Supplementary
Estimates No. 3) (Bill 9)
Hon. G.
Collins
Committee of the Whole House
Supply Act, 2003-2004 (Supplementary
Estimates No. 3) (Bill 9)
Report and Third Reading of
Bills
Supply Act, 2003-2004 (Supplementary
Estimates No. 3) (Bill 9)
Introduction and First Reading
of Bills
Ministerial Accountability Bases Act,
2003-2004 (Bill 10)
Hon. G.
Collins
Budget Debate (continued)
K. Johnston
G. Halsey-Brandt
Hon. J. van Dongen
D. Hayer
Hon. S. Brice
W. Cobb
[ Page 8803 ]
WEDNESDAY, FEBRUARY 25, 2004
The House
met at 2:04 p.m.
Prayers.
[1405]
Introductions by Members
Hon. G.
Campbell: I just wanted to recognize and welcome back the former member for
Richmond Centre. Mr. Doug Symons is joining us today. He served for two terms in
this House. Actually, I'm surprised that Doug isn't sitting on this side, just
to see what it's like. But welcome back, Doug.
Manhas: I am proud to introduce to the House today a bright and
enthusiastic, dedicated group of Young Liberals from my community in Port
Coquitlam–Burke Mountain. They are here with the Port Coquitlam–Coquitlam
B.C. youth association. They are coming to take a look at how we run our
business here in Victoria and how the public policy process works. I'd like to
introduce the president, Chris Sandve; and also from my riding, Imran Hemani,
director of finance; and Cassandra van Aswegen, director of policy. Would the
House please make them very welcome.
Hon. G.
Plant: Today we're joined in the gallery by the chief legislative counsel
for the government of British Columbia, Brian Greer. We're also joined by his
mother, Judy Greer, and his aunt Eileen Prittie. I hope that the House will make
all of these people very welcome.
Stewart: It's my pleasure, as well, to introduce some Young Liberals who are
visiting from my community. Speaking with these young people, it is clear that
their parents have raised them very well. These students are Nathaniel
Blackmore, Grandy Chiu and Christina Stewart.
Hon. R.
Neufeld: Well, it's a pleasure for me…. As you know, it's not very often
we get someone from northeastern British Columbia down here. It's great to have
someone here that I can introduce today, a councillor from the city of Fort St.
John: Julie Vander Linden. Would the House please make her welcome.
Hon. J.
Les: Today in the members' gallery I'd like to acknowledge a special visitor
from the European Union, His Excellency Eric Hayes. He is the newly appointed
ambassador and head of delegation for the European Commission. This is the
ambassador's first official visit to British Columbia, and I am pleased that he
has travelled here today to discover the many opportunities that our beautiful
province presents. He is here with Mr. Frank Deeg, his principal adviser. Would
the House please make them both feel very welcome.
Hon. C.
Clark: I am delighted to introduce to you today Chris Carter, who is a very
active member in the youth advisory team in my riding. It is a group of anywhere
between 20 and 100 young people who come together quarterly to offer me advice
about the issues that are important to young people, to students and people
under the age of 25 in Port Moody–Westwood. I hope the House will make Chris
welcome if they see him in the hallway.
Hon. G.
Abbott: In the gallery today is an old friend and professor of mine from
University of Victoria days, Dr. Paddy Smith. At the time I knew him, when I was
first a legislative intern here back in 1976 or sometime after the birth of
Christ…. Paddy has since been a professor at Simon Fraser University. He's
back here today. I suspect there's some conjunction between what appears to be
the newest crop of legislative interns and Paddy's presence. Correct?
I'd like
the House to welcome Paddy and all of his guests.
Hon. S.
Hagen: In the gallery today are 51 grade 11 students from Georges P. Vanier
Secondary School in Courtenay together with their teachers Mr. Dave Neill, Ms.
Joan Longstone and Mr. John Caswell and a parent, Ms. Joan Jacobson. Would the
House please join me in making them welcome.
[1410]
Statements
(Standing Order 25 b )
2004 B.C. WINTER GAMES
Trumper: Just a few weeks ago we celebrated the fact that the 2010 Winter
Olympics and Paralympic Games are just six short years away. The Olympic spirit
is taking over the entire province, but I have to tell you that that spirit has
been in the Alberni Valley for quite some time as we prepare to host the 2004
B.C. Winter Games. This will be the first time Port Alberni has hosted the B.C.
Winter Games, but we have hosted the B.C. Summer Games, the Disability Games and
the B.C. Seniors Games in the past.
The games
have the community buzzing as talented athletes arrive from all over the
province to take part. This is sport played for pride, not for money, as is
often the case these days. The games will run from February 26, tomorrow, to
February 29. Athletes will compete in more than 20 events from hockey and skiing
to weightlifting and table tennis.
This is a
great event not only for the athletes but for the volunteers. Let's not forget
the role volunteers play in making an event like this successful. We couldn't do
it without them. Their efforts will not be rewarded with medals, but when those
medals are awarded, they can and should feel as though they played a big
part in
making that athlete's dream a reality.
The 2004
B.C. Winter Games in Port Alberni start tomorrow, and some of the athletes may
even be part
[ Page 8804 ]
of the 2010 Olympics. If you want an early taste of that Olympic spirit, I
urge you to come and check out the action.
MOUNTAIN PINE BEETLE
AND WOOD PRODUCTS
MacKay: Today I'd like to spend a few minutes and talk about the mountain
pine beetle. It's a topic we've discussed several times in this chamber before.
The mountain pine beetle is about six millimetres long, about the size of a
grain of rice. It has a one-year life cycle. It's presently destroying our pine
forests throughout British Columbia. To date, in excess of 160 million cubic
metres of wood have been infected by this little bug.
The result
of the adult beetle, who lives for one year, is a fungus that it deposits into
the sapwood. That fungus, when it is left in the sapwood and the tree dies,
causes the tree to have a blue stain in it. This is called denim wood by a young
woman from Quesnel. She has called this wood denim wood, and it's done very
well.
Today I am
pleased to introduce into this House some wood from those infected trees. This
wood has been transformed into speaking podiums for the members of this chamber
to use. I would like to thank my friend Ray Brakenbury in Smithers for the great
job he did in transforming these pieces of wood into the products that will be
used for years by members of this House. I'd ask you to notice the blue stain in
the wood that I have here on the podium, the one back here, and there's another
one someplace in the chamber.
In closing,
I'd like to say thank you, Ray, and thank you, Mr. Speaker.
ECONOMIC DEVELOPMENT IN
POWELL RIVER–SUNSHINE COAST
H. Long:
They made this podium just the right size for me.
The climate
for investment in Powell River and the Sunshine Coast is warm and inviting. The
Sunshine Coast was named because of the weather, but I want everybody to know
that the Sunshine Coast would also like to be known to provide big opportunities
and bright futures for investors.
Today I am
inviting my businessmen and women to consider setting up a shop in Powell River
and the Sunshine Coast. The people of Powell River have a vision for a sawmill
in Powell River. That sawmill could work closely with the already existing
Norske pulp mill, and Powell River could become an even bigger hub for forestry.
The pulp
mill is doing a brisk business in Powell River. In fact, it has just announced
that NorskeCanada is investing $7.5 million in Powell River in its operation to
support higher-value paper products. I want to thank Russ Horner and his team
for having trust in Powell River.
The
investment will upgrade No. 10 paper machine in Powell River to enable it to
produce high-gloss paper. There is a great opportunity for business in Powell
River and the Sunshine Coast. Picture this: through Premier Campbell's hard
work, we have started shipping wood to China. Some of that wood could be cut,
even processed, in Powell River and easily shipped to Southeast Asia. Isolated
from the rest of the province geographically, Powell River and the Sunshine
Coast are wide open for business.
[1415]
Triton
Logging knows it, so much so that Martha Stewart came and featured a Triton in
Powell River operating on her global television show. They have prospered in
Powell River, and so can you. Powell River and the Sunshine Coast are ready to
help business and to flourish in the future.
Mr.
Speaker: That concludes members' statements.
Oral Questions
DISABILITY BENEFITS ELIGIBILITY REVIEW
AND AUDITOR GENERAL'S REPORT
J. Kwan:
It's true confessions time. The members opposite won't admit it, but they
read the pundits of our fine newspapers daily for clues as to how well they're
doing. Is their spin finding root in the public mind? Is Andy getting the job
done? Well, today here's what they're saying. Mike Smyth on NW: "They just
flushed five million precious taxpayers' dollars down the tube." Or Vaughn
Palmer: "The Liberals deserve all the blame both for the waste of tax
dollars and for adding to the suffering of some of our most unfortunate
citizens."
Will the
minister admit today…?
Interjections.
Mr.
Speaker: Order, please. Order, please, hon. members. Let us hear the
question.
J. Kwan:
Will the minister admit today, after having a night to sleep on it, that he was
wrong — that the government's cruel and ham-fisted disability review was just
plain wrong?
Hon. S.
Hagen: For those two members opposite to talk about wasting money is the
most ridiculous thing that's ever been talked about in this House. How many beds
would the $500 million they wasted on the fast ferries have provided?
The truth
of the matter is that this government…
Interjections.
Mr.
Speaker: Order, please.
Hon. S.
Hagen: …has said consistently that the review that was undertaken by the
Ministry of Human Resources was never about decreasing costs. The review was
undertaken to make sure that the resources
[ Page 8805 ]
we're providing go to the people who really need them. This is about fairness
to our clients.
This was
about gathering information. Under the NDP, the clients' files were virtually
empty. There was no information. The information provided by the medical people
to our ministry personnel included issues like…. We now have important details
of our clients' health conditions which we didn't have before, including an
in-depth knowledge of conditions of our clients dealing with mental illness. As
I mentioned yesterday, people with mental illness have now been added to this
category. We're the second province in Canada to do that.
Mr.
Speaker: The member for Vancouver–Mount Pleasant has a supplementary
question.
J. Kwan:
The auditor general's report is very clear. The government expected to take
some 6,000 to 9,500 people off of disability assistance. But the minister says
B.C.'s independent auditor general is wrong. Let me quote from an internal
ministry plan obtained by the opposition. The ministry expects "that about
9,130 disability clients" — that's 20 percent of the caseload
—"will not meet the new criteria." Right in the minister's own
planning documents.
To the
Minister of Human Resources: why is the minister attacking the credibility of
B.C.'s independent auditor general when his own internal documents prove that
the auditor general is the one telling the truth?
Hon. S.
Hagen: The truth of the matter is that actually 8,000 more clients have been
added to the rolls.
Interjections.
Mr.
Speaker: Order, please. Order.
Hon. S.
Hagen: Thank you, Mr. Speaker. You should try and keep them under control a
bit. It's difficult to speak sometimes.
[1420]
Not only
have we added 8,000 people with disabilities to the rolls, but we have added
people with mental illness to those same rolls. We've increased those rolls as
well. We've also doubled the earnings exemption from $200 to $400. We now have
62,000 people on the rolls that we're helping every month, and the total amount
of money paid by the taxpayers to those people totals about $500 million a year.
That's what we're doing.
I want to
say that in addition to the benefits to the clients, we now have a solid
understanding of our clients' ability to carry out daily activities —
information which helps us create programs and policies to meet our clients'
needs. This is all about service to our clients.
Mr.
Speaker: The member for Vancouver–Mount Pleasant has a further
supplementary.
J. Kwan:
The truth is that this government wasted $5 million to kick 46 people off income
assistance. Yesterday this minister stood in this House and said the auditor
general is wrong. Well, the auditor general didn't just make up his report. He
interviewed officials. He sifted through thousands of pieces of paper and
information to delay the report as well, because he wanted to confirm the facts
from the ministry.
Let me
quote from some of that material in the government's own communications plan,
developed in anticipation of the review, which was leaked to the opposition.
That plan warned the government that "many clients with disabilities,
especially those with mental disorders, will become alarmed and/or confused when
they receive letters from the ministry." It turns out that's exactly what
the auditor general found.
Again to
the minister: can he explain why, despite the warnings from his own government's
officials, his government pushed ahead anyway and blew $5 million of taxpayers'
money down the tube to kick 46 people off income assistance and, in the process,
created much anxiety for those who are most vulnerable in our communities?
Interjections.
Mr.
Speaker: Order, please.
Hon. S.
Hagen: The member opposite in her diatribe mentioned anxiety. I have to tell
you that the anxiety that was created was created by those two members throwing
unofficial numbers out and creating anxiety among the clients we deal with. The
minister previous to me has been consistent, as I've been consistent, in saying
that in fact the review was never about reducing costs. It was actually about
making sure the people who need the money most get the money. I can tell you
that I think the taxpayers of the province, who pay out $500 million a year to
these clients, have a right to know that we're actually directing….
Interjections.
Mr.
Speaker: Order, please. Order, please.
Hon. S.
Hagen: I think the taxpayers of this province, who pay out $500 million a
year to our clients, have a right to know that that money is being directed to
the people who need it the most.
HIRING OF DOUG WALLS BY CHILDREN
AND FAMILY DEVELOPMENT MINISTRY
MacPhail: The Minister of Human Resources continues to stonewall and, in
fact, dig a hole deeper and deeper. He continues to deny the facts and hide the
truth. Let me remind him what the Premier had to say in this House about his
kind of behaviour. I hope I get this quote right. It's a quote from the Premier
in this House on August 22, 2001: "…openness beats hidden-
[ Page 8806 ]
ness every time" — a quote that might explain why the Premier's got a
new-found interest in literacy.
Again to
the Premier: if openness beats hiddenness, maybe he will stand up now and tell
British Columbians how his friend and political supporter Doug Walls got a
six-figure salary from the government with no competition, no notice, no
announcement and no scrutiny.
Hon. S.
Hagen: Certainly, this side of the House and all of the members of the
Liberal Party agree with openness and agree exactly with what the Premier has
said. There is nothing more open than an auditor general's report. All of the
facts are in there. All of the facts are in there — what the money was spent
on, how many people are affected.
[1425]
I would
like to say — and remind the people of British Columbia again — that we are
here to supply…
Interjections.
Mr.
Speaker: Order, please.
Hon. S.
Hagen: …services to people who need those services. We're dedicated to
focusing the money to the people who need it the most.
Mr.
Speaker: The Leader of the Opposition has a supplementary question.
MacPhail: The opposition has so little time to hold this government to
account. Perhaps they could listen. The question was about Doug Walls. I was
going to compare this government to Paul Martin and Alfonso Gagliano for taking
their spin, but I don't know who we could compare them to, given that last
answer. It had nothing to do with the question.
In addition
to being a member of the Premier's family, Mr. Walls was well known to several
of the cabinet members. The Minister of Advanced Education and the Minister of
State for Mining were both handpicked by Mr. Walls to stand as candidates in the
last election. In fact, we understand they were very close to Mr. Walls. He was
also, as we understand, a very close friend of the former Minister of Children
and Family Development. In fact, I understand they had an upstairs-downstairs
relationship in where they held their offices. It's inconceivable that the
Premier didn't know what Mr. Walls was up to.
Interjections.
Mr.
Speaker: Order, please. Order. Let us have the question, please, hon.
member.
MacPhail: Doug Walls, when he was paid…
Mr.
Speaker: Question, please.
MacPhail: …$214,000 for a contract to head the interim community living
authority, must have been aware of that. The Premier must have been aware of
that. He was under investigation for fraud at the time.
Interjections.
Mr.
Speaker: Order, please. Order, please. Order, please.
Will the
member please now put her question.
HIRING OF DOUG WALLS AND
RELEASE OF CHILDREN AND FAMILY
DEVELOPMENT MINISTRY AUDIT
MacPhail: Yes, Mr. Speaker. To the Premier: if openness beats hiddenness, to
quote him, can he tell British Columbians why he's keeping them in the dark
about an audit into the misuse and abuse of tax dollars by Liberal insider Doug
Walls? Is he afraid of what it will say? Is that why he's not going to release
the full report?
Hon. C.
Clark: If this member is indeed interested in holding the government
accountable, I would make three suggestions to her.
(1) Show up
for things like response to the budget speech and actually make a speech about
that in the House.
(2) She
could do her research and get her facts straight when she stands up in question
period.
(3) She
could make sure that when she's got a question, she asks it of the right
minister once in a while.
I will say
this in answer to her question, now that she's finally figured out who to
actually ask the question of. This whole matter is under review by the
comptroller general. He is looking at it as a result of a request by the
Premier. This Premier and this government acted immediately…
Interjections.
Mr.
Speaker: Order, please. Will the members of the opposition please come to
order.
Hon. C.
Clark: …to make sure that a full and complete audit is done of this entire
matter, and the Premier has gone further. He will be releasing all of the
conclusions of the report and making sure that as much information as can be
shared…
Interjections.
Mr.
Speaker: Order, please.
Hon. C.
Clark: …without violating the principles of the law respecting privacy and
information, which that member and that member's government introduced into this
House, are not violated....
Interjections.
[ Page 8807 ]
Mr.
Speaker: Order, please.
Interjections.
Mr.
Speaker: Order, please. Order, please, so we may hear the question. Order,
please.
[1430]
CROWN PROSECUTORS' SALARIES
Nettleton: Crown prosecutors in British Columbia have warned that the
Attorney General's rejection of the Taylor report detailing recommendations for
justice system in this province.
On February
15 of the year 2000, the Attorney General, then B.C. Liberal Attorney General
critic, wrote to Attorney General Ujjal Dosanjh stating: "I am deeply
alarmed at the disruption in the courts of British Columbia resulting from job
action by Crown prosecutors. Your refusal to accept any responsibility for the
almost 400 dedicated individuals is remarkable. Crown prosecutors need an
advocate at the cabinet table. Instead of supporting them or offering
constructive leadership in resolving these issues," he goes on to say,
"you wring your hands and pass the buck."
My question
is: has the Attorney General, now that he is the Attorney General, advocated on
behalf of Crown prosecutors to cabinet on these issues?
Hon. G.
Plant: As a result of the labour disruption that occurred in February of
2000, the prosecutors and the then government entered into a process. That
process led step by step to a point at which there was an arbitration panel
appointed, and it was part of the agreement between the Crown and government
that the Crown would be bound by the arbitration result but government would not
be.
In my view,
and for the reasons that are set out in the letter that I tabled in the House
some days ago, the Crown had failed to make out a case for market adjustments.
The average prosecutor in British Columbia earns $108,000 a year. That is a
reasonable salary. We do not have a problem with retention. We do not have a
problem with recruitment. I think we have a great prosecution service in British
Columbia, and I am confident that in the weeks and months ahead of us, the
prosecutors of British Columbia will continue to discharge their duties to the
people of British Columbia in helping keep all of our communities safe.
[End of question period.]
Supplementary Estimates
Hon. G.
Collins presented a message from Her Honour the Lieutenant-Governor:
supplementary estimates (No. 3) for the fiscal year ending March 31, 2004.
Hon. G.
Collins moved that the said message and the estimates accompanying the same be
referred to Committee of Supply.
Motion
approved.
Hon. G.
Collins: I call committee of supply.
Committee of Supply
The House
in Committee of Supply; J. Weisbeck in the chair.
The
committee met at 2:34 p.m.
SUPPLEMENTARY ESTIMATES:
MINISTRY OF AGRICULTURE, FOOD
AND FISHERIES
On vote
10(S): ministry operations, $27,300,000.
The
Chair: I call committee to order, and if the members would retain their
seats, we're going to distribute the information to you.
[1435]
MacPhail: Mr. Chair, I request a recess. This is the first time I've seen
it. It's rather substantial. Could we have a 15-minute recess, please?
The
Chair: I call a 15-minute recess.
The
committee recessed from 2:38 p.m. to 2:54 p.m.
[J. Weisbeck in the chair.]
MacPhail: Could the minister please explain the necessity for this
supplementary estimate?
[1455]
Hon. J.
van Dongen: The Ministry of Agriculture, Food and Fisheries is requesting
supplementary estimates of $27.3 million. We request these funds to address
dramatic income losses to livestock industries following the discovery of BSE,
mad cow disease, in an Alberta cow. The discovery of BSE on May 20, 2003, shut
down all major borders to export of live cattle and processed meat. The loss of
that major export market created a dramatic loss of income for B.C.'s cattle
industries.
There are
two parts to this request for supplementary estimates: $10.5 million to help, as
quickly as possible, those farmers and ranchers who have lost money already; in
addition to that, $16.8 million to cover B.C.'s portion of additional claims
expected to come in under the Canadian agricultural income stabilization
program, known as CAIS. The increase in claims is expected due to the BSE
crisis.
In terms of
the programs, I'll address the $10.5 million first. These funds will be directed
to programs that will restimulate the industry following the loss of in-
[ Page 8808 ]
ternational markets. That funding will be disbursed through three initiatives
that will assist producers experiencing immediate financial losses and
pressures: the BSE recovery program, the steer and heifer market transition
program, and the Canada–B.C. cull animal program. These three programs are all
related to income losses experienced by farmers since the BSE discovery and will
be paid based on actual claims filed by farmers and ranchers.
The BSE
recovery program will cost British Columbia up to $3.2 million and will bring
combined federal-provincial funding of $8 million to producers. This program
helped to get the market moving again when the U.S. border was first shut down.
The steer
and heifer market transition program will cost B.C. up to $1.3 million and
supports producers who were not able to market their animals by August 31, 2003,
when the BSE recovery program ended. That was the joint federal-provincial
program. The Canada–B.C. cull animal program will cost up to $6 million and
will compensate producers for the extremely low prices received for cull cows
following the discovery of BSE. Cull animals are cattle ready for slaughter but
for which there may not be a market, such as older dairy and beef cows.
Finally,
the CAIS program. Beyond this immediate assistance, we also seek $16.8 million
to make sure B.C. farmers are fully covered under the new CAIS program as a
result of the BSE crisis. The additional funding will cover the estimated
incremental cost of BSE to agriculture risk management programs under the
national ag policy or agriculture policy framework. That's the five-year
agreement involving the provincial governments and the federal government. These
funds address overall drops in farm income that the farmers and ranchers may
have experienced since the BSE outbreak. Funds will be paid out based on actual
claims filed. It is important to point out that payments farmers receive under
the three BSE–specific programs that I talked about will count as farm income
when we determine what payments they are entitled to under the overall program,
the CAIS program.
MacPhail: As I understand it, $8 million from the first tranche, $1.3
million from the second tranche and $6 million from the third tranche of the
CAIS program has been spent or is about to be spent?
[1500]
Hon. J.
van Dongen: First of all, I just want to clarify the member's numbers. The
numbers on the $10.5 million are 3.2 million of provincial dollars, 1.3 million
of provincial dollars and six million of provincial dollars. So just to clarify
that, some of those dollars have been paid out to producers. The $3.2 million,
for example, which was on the BSE recovery program, was a joint
federal-provincial program. It was announced in July 2003 and covered animals
that were slaughtered up to approximately September 1 or August 31. Those
dollars are being paid out. Similarly, the other programs have started, and a
portion of those dollars has been paid out based on claims made through the
proper forms.
MacPhail: The $16.8 million is for farmers for future coverage under CAIS,
as I understand it.
Hon. J.
van Dongen: The $16.8 million is under the CAIS program, which is one of the
risk management programs in the current five-year federal-provincial agreement.
The $16.8 million represents our best estimate of claims that would relate to
the current fiscal year — the 2003-04 fiscal year.
MacPhail: Can the minister describe for me a range or an average claim
that's been submitted?
Hon. J.
van Dongen: Could I just get some clarification, Mr. Chair? Is the member
asking about the CAIS program or the other three programs, in terms of an
average claim?
MacPhail: My first question on this is in the CAIS program.
Hon. J.
van Dongen: Under the CAIS program, part of the agreement between the
federal and provincial governments was to do an advance payment starting in the
fall. That advance payment is calculated to be 50 percent of the ultimate claim,
which will be claimed based on income tax returns for the year, and they would
be claimed in the future. The idea was to get some cash to the producers.
The average
estimated claim is in the range of $22,000 to $25,000. That includes both
federal and provincial dollars. The advance payments that have been made are in
the range of $12,500, of which 40 percent would be provincial money. So that
would be approximately $5,000 for an average claim on the cash advance of
provincial dollars.
MacPhail: How many claims have been made, and what is the anticipated number
of claims the ministry is forecasting for '03-04?
Hon. J.
van Dongen: The number of ranchers who have made claims under CAIS on the
interim program is 125. We anticipate approximately 4,000 claims overall under
that program for the calendar year 2003.
[1505]
MacPhail: Does the minister have any idea, perhaps through conversing with
ranchers, about why the claims are not coming in? Is there a reason for that?
Hon. J.
van Dongen: We have promoted the interim program with ranchers. A lot of
ranchers, first of all, have not been on these programs. Secondly, this is a new
program, so they're not familiar with it. Certainly, the interim advance payment
is a new aspect of the program that was put in place as a direct result of the
[ Page 8809 ]
BSE situation, so it's a case of getting ranchers informed of it, which we
have done.
We have
been out doing a series of meetings throughout British Columbia through August
and early September, all of which I attended along with staff. We've done a
series of workshops to help inform and assist them in terms of the claims. The
full claim cannot be made until the ranchers actually have their income tax
return, so some of them may opt to do it a little bit later.
MacPhail: Through you, Mr. Chair, I would request a copy of the form,
please, that the ranchers must fill out in order to make their claims. Is the
application usually done by the rancher himself or herself, or is assistance
needed — an accountant or lawyer?
Hon. J.
van Dongen: We would be pleased to provide the member with a copy of the
application form. The application involves a two-page form for most ranchers. It
involves an inventory of the cattle in their operation, which the rancher would
normally do himself, and it involves five years of income tax returns. Now, some
ranchers may do their own income tax returns, and some may hire an accountant.
The income tax returns have to be done in any event, so that is something they
will have available to them. This program is actually quite a bit simpler than
the previous program it replaced in terms of the application forms and the
process ranchers and farmers have to go through.
MacPhail: Is the provincial portion of this program standardized across
Canada?
Hon. J.
van Dongen: Yes, the program is standardized across Canada. The CAIS program
is a joint federal-provincial program, and it has all the same requirements in
all provinces.
MacPhail: Is there any cross-application of the CAIS program if, indeed,
chicken farmers need access to a similar program?
[1510]
Hon. J.
van Dongen: Chicken farmers would be eligible to apply under the program,
but given the fact that they're under a regulated marketing system, the
circumstances normally wouldn't develop whereby they would have a need to apply
and would be eligible to collect any dollars under the program.
MacPhail: Could the minister please expand on that for those of us who are
not as familiar with the market system as he is? Why would that preclude them
from being eligible?
Hon. J.
van Dongen: The chicken farmers are eligible, but because they're under a
regulated market — they have a marketing board; they have a formula pricing
system; they have a quota system whereby they have a responsibility and a right
to supply the market with a certain amount of product on a daily or monthly
basis — the circumstances wouldn't normally develop unless there is an
absolute crisis on that individual farmer in the industry. We wouldn't normally
expect to see that.
MacPhail: Has the minister been in touch with the Chicken Marketing Board in
order to provide that reassurance or to have agreement that his point of view is
accepted by the chicken farmers as well? That's question No. 1. Question No. 2:
are all aspects of chicken farming market board–regulated?
Hon. J.
van Dongen: The issue of eligibility has nothing to do with whether I have
an opinion about a marketing system or not. They're either eligible or they're
not. If the circumstances develop where they may be in need of assistance, they
have the ability to apply. This supplementary estimates is strictly related to
BSE and the beef cattle industry and the events that have transpired and the
impacts on our farmers and ranchers since May 20, which actually got
significantly more difficult on December 23. That's what this supplementary
estimates relates to.
MacPhail: I understand that, but there have been events that have unfolded
related to chicken farming that are similar to — or at least in the public's
mind…. What I am exploring is the similarity or differences in order to
provide answers for the public. Are all aspects of chicken farming regulated by
market boards?
Hon. J.
van Dongen: All aspects of the chicken industry and all chicken enterprises
come under the framework of the regulated marketing system. There are various
rules that apply in various situations. There is a small exemption level, and
then there are various other regulations that apply in that sector. Again, I
want to reiterate that this supplementary estimates is about the impact of BSE
on beef producers.
MacPhail: This is just exploratory, but since the outbreak of avian flu on a
chicken farm, has there been no necessity for discussion about assistance to
chicken farmers in the same way that the government is assisting cattle
ranchers?
Hon. J.
van Dongen: The situation of one farm in Abbotsford that was found to have a
case of avian flu is being dealt with under the federal Health of Animals Act,
whereby that farmer is being compensated for the market value of his flock,
which the Canadian Food Inspection Agency issued an order to have destroyed.
That is the situation there. It is one farm. There is no evidence or indication
that situation exists on any other farm. There is no risk to human health from
that situation. We don't expect that farm would be facing any claims under the
CAIS program at the present time.
MacPhail: The determination of $27 million for the fiscal year '03-04, which
is about five weeks away
[ Page 8810 ]
from finishing, was based on what? Is it based on a conclusion, an opening of
the borders? What's the anticipated time of opening the American border, with
this estimate?
[1515]
Hon. J.
van Dongen: The $16.8 million was based on estimates and calculations that
were done independently both by our ministry and by Agriculture and Agri-Food
Canada. We arrived at that estimate based on work done in those two ministries
independently. That represents our best estimate of incremental claims under
that program for the 2003 calendar year.
In terms of
expectations for the border opening, certainly there was somewhat of a delay and
an uncertainty introduced by the December 23 incident, which was not part of the
calculation that was done. But in just meeting with other provinces, meeting
with people in Washington D.C. and talking to the senior people in the agencies
in the United States, we feel there is room for some hope and optimism for an
effort by both countries to work together to harmonize whatever amendments or
changes need to be made in the rules and regulations around border movement and
to move towards, initially, a further partial opening of the border for meat and
live animals and then, subsequent to that, a further opening in an effort to get
to a fully open border and a fully integrated market, which we've always had
between Canada and the United States.
There is
recognition in the United States and in Canada that there will be no opportunity
for either of our countries to enter into discussions with other countries, such
as Japan and Korea, who have closed their borders to North American product. We
need to get on the same page. We need to get our trade moving again. We need to
get to a fully integrated market, and then both Canada and the United States
will be in a better position to negotiate with those other countries.
There is a
certain amount of incentive there for the United States to engage in whatever
discussions are necessary to get the border open. Our expectation is that
probably some time next week, the USDA will reopen the comment period for the
proposal that was made last November for opening the border for movement of live
cattle under 30 months and a number of other aspects of that proposed rule. The
comment period will be anywhere from 15 to 30 days. That will reinitiate that
process with a view and the hope of getting a decision from the USDA, the U.S.
Department of Agriculture, on that aspect some time after that. The timing of
that will be tougher to predict, but certainly we expect the proposal to go back
into a comment period shortly. That period would be 15 to 30 days, and then the
USDA would make their decision.
MacPhail: The Minister of Agriculture, Food and Fisheries attended
Washington recently — in the last week or so. Perhaps the minister could tell
us who led the delegation, who attended and who he met with. Did he meet with
the Secretary of Agriculture?
[1520]
Hon. J.
van Dongen: The delegation from Canada involved seven or eight provinces.
There were ministers in attendance from British Columbia and Alberta.
Saskatchewan was represented by an elected person other than the Minister of
Agriculture, who wasn't able to be there. The minister from Manitoba was there,
the Minister of Agriculture from Ontario was there, and there were
representatives there from New Brunswick. The minister from Nova Scotia was
there. It was a Canadian delegation led by Minister Rosann Wowchuk from
Manitoba, who is currently the lead provincial minister, and we had one or two
staff with us.
We went
there mainly to meet with our counterparts at the state level. They are part of
a national organization in the United States that is called the North American
State Directors of Agriculture. They were represented by virtually all of the
states. There were 48 or 49 directors of agriculture there. They have a regular
meeting at this point in the year. They have a standing invitation to provincial
ministers of agriculture in Canada to attend their meeting.
We met on
Sunday morning with officials from the Canadian embassy and had a full
discussion with them about their assessment of the situation. They have been
doing a lot of work on behalf of Canada and Canadian beef producers. Then in the
afternoon we participated as full participants in a four-hour discussion on the
issue of BSE with the NASDA people. As I said, we were fully involved in that.
The
following day we met with senior officials in APHIS. That is the equivalent of
our Canadian Food Inspection Agency. This is the Animal and Plant Health
Inspection Service in the United States. We met with senior officials there who
were also in attendance on the previous day, but we had a private meeting with
them to talk about how they saw things and how they saw things unfolding.
We also met
with officials from the national beef producers association in the United
States. We met with representatives of the meat packing industry in the United
States and officials in the food processing sector generally. Some of our
delegation were also able to meet with elected members of the agricultural
committees in the House of Representatives.
We had a
full range of meetings with a number of different parties and came away
relatively optimistic and hopeful that Canada and the United States are in the
same boat on this issue. We need to collaborate. We need to work together. We
need to harmonize our regulatory systems. We need to harmonize our responses to
the BSE issue and move forward. Certainly, my conclusion is that there is
sufficient motivation in the United States that we can look forward to moving
ahead on this file. As I said, the only thing that might be a little bit in
question is the timing, but the ultimate goal, I think, is quite clear in terms
of where everybody feels they need to go.
I think
it's also significant that a resolution that the NASDA organization had
initiated in September at their Boise, Idaho, meeting, which was a very protec-
[ Page 8811 ]
tionist response to the May 20 BSE cow in Canada, had gone through a number
of different stages. On Sunday afternoon in the meeting it was completely pulled
off the table and withdrawn in recognition of the fact that the United States
really was in the same situation as Canada and had to move forward and deal with
the issues in a constructive way, work out the harmonized regulations with
Canada and then turn around and get markets such as Japan and Korea opened up to
the North American market.
The other
thing that will probably happen next week is that there will be some improvement
in the flow of cattle under 30 months from the United States to Mexico. It's
part of an evolving situation.
[1525]
I think
we're moving in the right direction. Listening to the discussion at the NASDA
meeting reminds me of where we were last July in terms of our grappling with the
problem. I think it was a very productive session. We had a very good dialogue
between the elected representatives in the United States and Canada, and I look
forward to further collaborative work on the regulations so that we can get
trade flowing again as it should be.
MacPhail: In order to ask my next question, I must ask the minister…. I
don't understand the acronym NASDA.
Hon. J.
van Dongen: I did mention it is the North American state directors of
agriculture. It is an organization of all of our counterparts at the state
level.
MacPhail: Who accompanied you from the federal government — our Canadian
federal government?
Hon. J.
van Dongen: We didn't have anyone with us from the federal government. The
federal minister had met with his counterpart, Secretary of Agriculture Ann
Veneman, on January 16. This was a provincial initiative, because the provincial
ministers of agriculture have a standing invitation to come to the NASDA
meetings. My understanding is that the invitation does not necessarily extend to
the federal minister in Canada.
MacPhail: It is my understanding, though, that the border will be opened
when the federal levels of government both in the United States and in Canada
agree. It has to be an agreement at the federal level.
Hon. J.
van Dongen: Yes, the member is absolutely correct that those details have to
be worked out at the federal level, but it is a fact that the state directors of
agriculture have a significant influence on the decisions in the United States.
In fact, the United States has more authority and responsibility on food safety
issues at the state level than we do provincially in Canada. They are big
players in the federal decision in the United States.
Certainly,
we have been aware of this over the course of working through this process —
that the people in the U.S. Department of Agriculture consult very closely with
the state directors. In fact, in the September meeting, for example, it was
quite a surprise to some of the directors of agriculture in the United States
that the consumer had supported the Canadian beef industry as well as it had,
with a 62 percent increase in consumption in July over the previous year, 72
percent in August and a levelling off or certainly a maintenance of beef
consumption after that compared to last year. It was very useful for us to be
there to impart that information to them, because that was certainly news to
them.
Those sorts
of things are necessary to help build confidence of the elected people in the
state governments and the consumers in the United States to allow the federal
agencies to move forward in making the decisions they know they need to make.
MacPhail: What are alternate plans that the government is contemplating if
the border does not open?
[1530]
Hon. J.
van Dongen: We do have some discussion going on between the federal
government in Canada and the provincial governments, where we are looking at the
possibility of some enhancement to the overall agriculture policy framework —
in particular the risk management programs. In fact, the four western ministers
wrote to the federal minister about three weeks ago on that issue and indicated
to the federal minister that we felt the federal government needed to come to
the table with additional funding if there was going to be additional funding
for any enhancements around something called negative margins on these programs.
On the CAIS
program, it would be the federal government that would have to come to the table
on those dollars. There's nothing — no further decisions — at this point. We
feel that the workings of the CAIS program will provide a reasonable level of
assistance in the foreseeable future and confidence to the cattle industry.
MacPhail: What are the communication arrangements between the federal
Minister of Agriculture and the provincial ministers of agriculture as this
unfolds?
Hon. J.
van Dongen: The federal minister has communicated with provincial ministers
on a very regular basis with regular conference calls updating us on issues that
they're working on. There have also been regular calls at the staff level. For
example, at the assistant deputy ministers' level and the deputy ministers'
level, there have been very regular conference calls. We have had, under the
previous minister, regular face-to-face meetings — certainly more since May 20
than we've had in the past.
There has
been a lot of activity by Premiers, as well, starting with the Western Premiers'
Conference in Kelowna in June. There has been a lot of activity even with
Premiers and state Governors on this issue. Our
[ Page 8812 ]
Premier worked with western state Governors on this issue in terms of trying
to foster the need to get the border open. There have been a lot of
communications with the federal government between the Prime Minister and our
Premier, between the federal Minister of Agriculture and provincial ministers
and all of their counterparts across the border.
MacPhail: My final question in this area is something that I learned from
the cattle ranchers during the prebudget consultation tour in the fall of 2003,
where I was accompanied by about nine or ten of my Liberal government caucus
colleagues. Ranchers came before us and said they were having trouble getting, I
believe — and I hope my terminology is right — Crown leases for grazing in
order to support their cattle that were remaining alive and in Canada, in
British Columbia, as a result of the closed border. Can the minister explain
what improvements he has made, his government has made, in approving Crown
leases for grazing to cope with the expanded herds as a result of the BSE closed
border?
Hon. J.
van Dongen: Certainly. I think the member is referring to the concern last
fall about trying to get some flexibility on behalf of the ranching industry as
to when cattle would be removed off Crown range. We did discuss and our staff
discussed with their counterparts in the Ministry of Forests, who actually
manage that Crown range, the idea of having some flexibility in how we manage
that removal of animals from the Crown range. That was done.
I think
that in most cases there were some satisfactory arrangements made to provide
some additional flexibility for ranchers. There was also a decision made by our
government to defer the requirement for ranchers to make payment for their range
fees until April 1, 2004. So they got a deferral on their range fees as well.
This is
certainly an ongoing issue in the sense that there are larger numbers of cattle
on ranches. We will continue to work with the range managers in the Ministry of
Forests to try and provide as much flexibility and as good utilization as
possible of the forage production on Crown range.
J. Kwan:
Mr. Chair, I seek leave to make an introduction.
Leave
granted.
[1535]
Introductions by Members
J. Kwan:
Visiting us in front of the legislative building today is a group called Faith
in Action. They are a group of people from many different faith communities in
Victoria who share a concern for the poor and the vulnerable in our society.
Because they believe in living in a compassionate and respectful way with one
another, their first focus is to envision an income assistance program in this
province that recognizes the dignity and worth of all citizens. They've been
here since noon today, and they will be here until midnight. In fact, at 10
o'clock tonight the Anglican Church will be serving the Eucharist. They invite
anyone who joins in their vision to visit them throughout the course of the day
and to join them at 10 o'clock tonight.
Debate Continued
Nettleton: I would just like this opportunity to be on record in terms of
the supplementary estimates with respect to the allocation of funds to BSE, mad
cow, and an industry in crisis — an industry that's certainly well represented
in my riding of Prince George–Omineca. I am supportive, in fact, of the
allocation of these additional funds. This is an issue that I've certainly
followed and been involved in, in some detail. I have, as well, a private
member's statement next Monday to which the minister will be responding, which
lays out in some detail my perspective from having worked with people in the
industry within my riding and having been in contact with the ministry and
others with respect to this crisis.
For the
record and for the moment, I would like to say that indeed I am supportive of
these additional moneys that are being designated for this crisis. I do know, in
fact, that the minister has had to work very hard. Indeed, he has a reputation
for being a minister that does work hard. I know he's worked hard to get these
additional moneys through treasury and through cabinet and so forth. For that we
are all thankful. As well, I share his perspective with respect to the federal
government and the need for leadership nationally for this industry that is in
crisis. Indeed, the feds can and should do more.
I will on
Monday, Mr. Chair, for the interest of members, lay out my perspective with
respect to this crisis, which is somewhat different from the minister's in some
respects. I look forward to that Monday of next week. Again, as I say, I will be
supportive. I will be supporting the allocation of these funds for BSE.
Vote 10(
S) approved.
Hon. J.
van Dongen: I move the committee rise and report resolution.
Motion
approved.
The
committee rose at 3:38 p.m.
The House
resumed; Mr. Speaker in the chair.
The
committee, having reported resolution, was granted leave to sit again.
Mr.
Speaker: When shall the report be considered?
Hon. G.
Collins: Forthwith, Mr. Speaker. I move that the report of the resolution
from the Committee of Supply on February 25, 2004, be now received, taken as
read and agreed to.
[ Page 8813 ]
Motion
approved.
Hon. G.
Collins: I move that there be granted from and out of the consolidated
revenue fund the sum of $27.3 million. This sum is in addition to that
authorized to be paid under
section 1 of the Supply Act, 2003-2004, and is
granted to Her Majesty towards defraying the charges and expenses of the public
service of the province for the fiscal year ending March 31, 2004.
Motion
approved.
[1540]
Introduction and
First Reading of Bills
SUPPLY ACT, 2003-2004
(SUPPLEMENTARY ESTIMATES No. 3)
Hon. G.
Collins presented a message from Her Honour the Lieutenant-Governor: a bill
intituled Supply Act, 2003-2004 (Supplementary Estimates No. 3).
Hon. G.
Collins: I move that the bill be introduced and read a first time now.
Motion
approved.
Mr.
Speaker: Hon. members, if you wish to distribute the bill, we could wait for
a moment or two. Okay. Just remain in your seats, please, while we distribute
the bill.
Hon. G.
Collins: With regard to first reading of Bill 9, the use of supplementary
estimates is consistent with the spirit of the Budget Transparency and
Accountability Act. This supply bill is introduced to provide supply for the
operation of government programs for the 2003-04 fiscal year, as outlined in the
supplementary estimates (No. 3) tabled earlier today.
The bill
will provide the additional funds required to defray the charges and expenses of
the public purse of the province for the fiscal year ending March 31, 2004.
accordance with the established practice, the government seeks to move this bill
through all stages this day.
Mr.
Speaker: In keeping with the practice of this House, the bill will be
permitted to advance through all stages in one sitting.
Bill 9
introduced, read a first time and ordered to proceed to second reading
forthwith.
Second Reading of Bills
SUPPLY ACT, 2003-2004
(SUPPLEMENTARY ESTIMATES No. 3)
Hon. G.
Collins: I move that the bill now be read a second time.
Motion
approved.
Hon. G.
Collins: I move that the bill now be referred to a Committee of the Whole
House for consideration forthwith.
Bill 9,
Supply Act, 2003-2004 (Supplementary Estimates No. 3), read a second time and
referred to a Committee of the Whole House for consideration forthwith.
Committee of the Whole House
SUPPLY ACT, 2003-2004
(SUPPLEMENTARY ESTIMATES No. 3)
The House
in Committee of the Whole; J. Weisbeck in the chair.
The
committee met at 3:44 p.m.
Sections 1
and 2 approved.
Schedule
approved.
Preamble
approved.
Title
approved.
Hon. G.
Collins: I move the committee rise and report the bill complete without
amendment.
Motion
approved.
The
committee rose at 3:45 p.m.
The House
resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
Bill
9, Supply Act, 2003-2004 (Supplementary Estimates No. 3) reported complete without
amendment, read a third time and passed.
Introduction and
First Reading of Bills
MINISTERIAL ACCOUNTABILITY
BASES ACT, 2003-2004
Hon. G.
Collins presented a message from Her Honour the Lieutenant-Governor: a bill
intituled Ministerial Accountability Bases Act, 2003-2004.
Hon. G.
Collins: I move the bill be introduced and read a first time now.
Motion
approved.
Hon. G.
Collins: Bill 10 provides for an increase in the amount of operating
expenses for the purposes of
[ Page 8814 ]
ministerial accountability under the Balanced Budget and Ministerial
Accountability Act to account for the disaster relief costs that we've
experienced this last year. The Ministerial Accountability Bases Act, 2003-2004,
makes provision to increase the operating expenses for ministerial
accountability for the Minister of Agriculture, Food and Fisheries, the Minister
of Forests, and the Minister of Public Safety and Solicitor General.
I move the
bill be placed on the orders of the day for second reading at the next sitting
of the House after today.
Bill 10
introduced, read a first time and ordered to be placed on orders of the day for
second reading at the next sitting of the House after today.
Hon. G.
Collins: I call continuing debate on the budget.
Budget Debate
(continued)
Johnston: I'm delighted to stand today and respond to the budget. You know,
when I first got involved in running back in 2001, I was happy to bring forward
and live a document called the New Era document that the government is
living by and living up to.
[J. Weisbeck in the chair.]
As we
walked around and talked to constituents and as we promoted the ideas in that
document, there were a lot of good ideas put forward, and to date, I believe
we've delivered on 90 percent of those commitments and initiatives. For me, two
of the major new-era promises from that document that were extremely critical
had to do with the finances of this province.
Those
promises said this. A B.C. Liberal government will pass real balanced-budget
legislation to make balanced budgets mandatory by our third full budget and will
pass real truth-in-budgeting legislation that ensures all provincial finances
are fully, accurately and honestly reported under generally accepted accounting
principles. With this budget this government has done that.
For the
fifth time in 25 years in British Columbia, we have a balanced budget. We have a
real balanced budget, not a fudge-it budget — not a budget like the last NDP
budget, which used accounting entries to claim it was balanced and left an
unbelievable inherited deficit of $3.4 billion for the next year. That is not
often stressed enough, and I want to stress it again. To use an analogy, it is
like buying a house from somebody. They tell you everything is absolutely
perfect with the structure of the home. They tell you there's nothing that needs
to be done. Then you'll be handed the keys of this particular home as you move
in. You open the door, and the inside is absolutely trashed.
[1550]
The NDP
government left a deficit, a structural deficit. Most people, I can
understand…. It is not a common phrase that rolls off the tongue. A structural
deficit was one they lumbered the incoming government with. For the first year
we had a $3.4 billion deficit strictly because of settlements and wages and no
planning and revenue reductions. That's what we inherited.
For this
budget to be balanced at this time is, in my opinion, an absolutely positive
step and a real achievement — a real balanced budget using real, recognized
accounting practices, generally accepted accounting practices. In
accountant-ese, what that really means is that all of the Crown corporations,
agencies, public schools, hospitals, universities and colleges will in fact be
part of the budget, will in fact be reported on. There are no outside agencies
which, in the past…. Most governments do keep them separate; they keep Crown
corporations and other things outside the realm of the reporting. This is open
and transparent government and reporting.
The Select
Standing Committee on Finance and Government Services released their report
following their consultations around the province. That committee does a lot of
hard work listening to the people of British Columbia. They heard from 216
individuals and organizations as they travelled and listened in the province.
The number one thing they heard was to stay the course and balance the budget.
What they actually said in that report and what came out of the report was:
"We recommend that the government stay the course on eliminating the annual
deficit."
Many people
in the House have already talked about validators, about outside organizations
coming forward and supporting this budget. The Vancouver Board of Trade also
gave their support to staying the course and eliminating the deficit in 2004-05.
On February 17 they gave a report card that I think really summarizes…. I'm
just going to read from the media release of that report card: "Board of
Trade Gives Balanced Budget an A." "The Vancouver Board of Trade's
provincial government budget and finance task force has given the…government
an overall A following today's release of the…provincial budget. 'The balanced
budget is a tremendous achievement,' said Darcy Rezac, managing director of the
board."
They rated
it on four criteria: on economic vision they applied an A; tax competitiveness,
a B-plus; spending control, an A-plus; and debt management, a B-plus. I think
that speaks to the work that's been done, certainly by the Finance minister and
this government, in balancing the budget.
Other
groups also validated the budget. The CAs said: "You made a promise, and we
believe you will stick to it. The single most important outcome for 2004-05 is a
set of balanced books…. Our support for you in this regard is
unwavering." The B.C. Retail Council — again, I'll tell you what they
said: "We strongly support balancing the budget in 2004-05." The
Canadian Taxpayers Federation said: "It is absolutely imperative that this
budget be balanced in 2004-05."
[ Page 8815 ]
I believe
the government has listened to the majority of people in British Columbia. They
have listened to the majority of hard-working British Columbians, who understand
that you cannot live beyond your means, whether it be government or at home.
They understand that you must pay as you go. They understand that we cannot pile
debt on our children and on our children's children. They understand that
government itself has no money. The government is entrusted to do the best thing
they can with the people's money.
[1555]
Hard-working
British Columbians manage their personal finances, understanding that you cannot
spend money you do not have. You cannot keep borrowing from the bank without the
ability to repay the bank. Why does anybody out there think it's any different
for government? Do we have in government some magic vault in the basement where
we can go down and print our own money or grab our own money? I haven't seen it
yet. I've been here three years.
Interjection.
Johnston: I think not.
Except for
the head of the BCMA and a few others, British Columbians understand there is no
golden goose sitting in the basement.
Many of us
have been just very, very fascinated…. In fact, I'm reading a book right now
on the concept of time travel. The concept has been the subject of numerous
books, movies and scientific ponderings. My perception is, and I notice….
I think the
NDP are big fans of time travel. Last week they issued a provincial budget
through a group they gave $200,000 to in the dying days of their mandate. I've
read it — very interesting reading. I personally have coined it the "NDP
time machine budget." This is a budget where the NDP travels back in time
to the not so heady days of 1991 to 2000, when they drove the most prosperous
province in Canada into the ground.
The NDP
finance wizards, the Canadian Centre for Policy Alternatives gang, are the ones
promoting this time machine budget. I often wonder if they've used up all
$200,000 given to them by the NDP on this one report. The CCPA have jumped into
the time machine and are trying to take the province back to the days of deficit
and debt. Some of the highlights of the time machine budget include not
balancing the budget until 2010, which of course would immensely increase the
debt, a very nice legacy for our children and for the children of many people in
the future — paying hundreds of millions of dollars of interest to the bank
instead of into health care and education.
Another fun
feature is the immediate 5-cents-a-litre increase in gas tax. Increasing taxes
on small business, once again promoting small business moving to other
provinces…. A 40 percent tax increase for people earning $60,000 — an
outright attack on what would be middle-income earners. How would we keep
nurses, teachers, public sector employees and anybody else in that range
motivated to work in British Columbia? The NDP budget also wants to increase red
tape and to dictate to business, creating a climate of total uncertainty.
Out of that
budget I take this — and this is direct from the time machine budget:
"The system should provide a range of tax credits, but only for those
companies that are willing to meet provincial economic, social and environmental
objectives." That absolutely frightens me — words like that. What they're
effectively saying is: "If you don't run your business or take care of your
affairs the way we tell you to run them, like a good little boy or girl, we will
not support you. We will not be supportive of you."
It was with
total disbelief that I read the NDP budget. I really hope there aren't a lot of
people that subscribe to those writings. British Columbians do not want to
return to the dark days of NDP despair.
In talking
to the people with their feet on the ground, in talking to the people of my
constituency, there is the belief and the confidence that government is there to
act responsibly with the taxpayers' money. Of course, recent events at the
federal level have certainly gotten our attention and outraged a lot of us. The
wanton disregard for prudence and waste of resources is not something any of us
subscribe to. I'm sure all provincial politicians, regardless of party, are
doing their best to ensure that this type of thing does not occur provincially.
That is why I agree with accountability standards — with the move to generally
accepted accounting principles.
[1600]
British
Columbia is the first government in Canada to legislate this accountability. It
is an extremely, extremely positive step, because it gives us a basic, uniform
standard for financial budget reporting, and it gives us the ability to offer
true accountability to the people of British Columbia.
Enough
about the past and the dark days of the NDP policy. What does this budget do for
the future of British Columbia? Why is this budget important to British
Columbians? There are many issues, and probably the foremost on most people's
mind these days is health. With an aging population, the demands on our health
care system continue to grow. Progress is being made in the health care field.
Just a few examples. The Vancouver coastal health authority is creating a single
acute care network within the region. Instead of every hospital trying to be
everything to every single person, expertise and resources are being directed in
certain areas, and this will provide better and improved patient services.
A new $90
million academic ambulatory care centre is being developed next to Vancouver
General Hospital to provide improved access to one-stop out-patient care for up
to 600,000 patients annually — a positive step. Community dialysis units are
now in place, providing patients with care closer to where they live. An
initiative to reduce emergency room congestion has resulted in a 25 percent
reduction in the wait time for patients who are in emergency and need to be
placed in a bed at VGH.
[ Page 8816 ]
Just a few
days ago the provincial health services authority received a presentation from
Dr. Gavin Stuart, dean of the University of British Columbia's school of
medicine. He said that currently there are 128 first-year spots available for
medical students at UBC. With UBC's expansion and new medical schools coming on
stream at UVic and the University of Northern British Columbia, by 2010 there
will be a total of 192 spots at UBC and a further 32 first-year spots at each of
University of Victoria and University of Northern B.C.
Much has
been done to improve our health care system, but make no mistake: with health
care eating up 42 percent of our spending, we are under tremendous pressure.
Since the spring of 2001 we have added $2 billion to health care to meet patient
needs. Over the next two years another billion dollars will go into the health
care system. The government is committed to ensuring that more of every health
care dollar goes directly to patient care.
Progress is
being made; 38,000 additional surgeries were performed in British Columbia last
year. Having our house in fiscal order gives us the ability to make those
choices, to put more money into health care.
Education
is a building block of our society. Vancouver-Fraserview, my constituency, has
two of Vancouver's largest high schools — David Thompson and Killarney — and
about 15 elementary schools. Balancing the budget gives us the opportunity to
build on student successes. Improving student outcomes is the goal of this
government's education policy. We are investing in the future; we are investing
in our students. The K-to-12 education budget will be increased by $313 million
over three years to improve achievement, promote literacy and make schools
safer. The government has refocused education and emphasized student
achievement, parent participation and choice.
[1605]
By 2004-05
funding per student will be $530 higher than in the spring of 2001. At Killarney
Secondary in Vancouver-Fraserview, with a population of about 2,000 students,
there has been some bad press lately because of some violent incidents that have
occurred. But I would like to do something that is not really reported on in the
papers because it's not bad news. I'd like to acknowledge the vast majority of
those students, contributing students in our society. They are the real face of
the school system. They are the real face of British Columbia.
Last year
at Killarney I had a tour of the music program, which got a digitized,
synthesized recording studio, electronic stimulators, the touring bands program
and everything. This is a school with over 1,000 of the 2,000 students involved
in music and drama. This is a school that is developing well-rounded students.
I also had
the opportunity to meet with five grade 11 students who were part of a national
writing contest. Actually, one of the Killarney students, a Ms. Hobbs, won the
contest in Ottawa with an essay on "What Being a Canadian Citizen Means to
Me."
There's
another school in the riding — a high school called David Thompson, also with
about 2,000 students. This is a school with over 250 students in service clubs
contributing to the community. This is a school with such initiatives as a
robotics development team raising awareness for entry into engineering programs.
These
students are showing us a path to a very bright future. I believe great things
are happening in our K-to-12 system, and I believe these students are proof of
that.
I will
continue to work to try to make sure that education builds on success. I will
also continue my quest to ensure that programs such as inner-city Community LINK
funding, extremely important programs which are recognized as a development tool
in our younger students…. I will make sure that I will continue to fight for
these programs. I will continue to bring to government the concerns of parents
on the education side and, as I said, promote the importance of the inner-city
Community LINK program with my fellow Vancouver MLAs.
Earlier I
spoke about the well-rounded secondary graduates coming out of our school
system, but these students must have somewhere to go upon graduation. They must
have opportunities at the post-secondary level. That is why I am delighted that
funding for advanced education will increase by $105 million in the next three
years. The province will create almost 12,000 new student spaces by 2007, rising
to more than 25,000 by 2010. Access to advanced education is critical to our
economic and social future.
I believe
having a bar of 75 percent to get into post-secondary education is a reasonable
amount. Currently, many students are struggling with the high 90 percent
averages that are often required to get in. These are unrealistic in my mind, so
I'm very happy that is also an initiative.
well-educated workforce attracts investment and in turn funds our economic
growth, which allows us to continue to balance the budget and, more importantly,
provide health care and education to our citizens. It is closing the circle of
social responsibility.
Crime is an
issue of importance to all residents of British Columbia, especially property
crime in the greater Vancouver regional district. We have all been touched by
the tentacles of property crime. Recently — myself, actually, personally —
my wife's car door was ripped completely off in a public parking lot, with
$1,000 worth of damage, and there was absolutely nothing in it. This story is
not exclusive to me. It's common every single day — every single day in our
society.
This is
another story. Last week a friend of mine had a car — a 1973 Ford Escort
which, frankly, was in pretty rough shape — taken right out of his carport.
The point is that it does not seem to matter what the value of your car or asset
or thing in your house is, or what the end benefits of crime are. Everyone and
everything seem to be at risk.
[1610]
I am
hopeful that we can focus more energy on some of the crime-fighting initiatives
that the Solicitor
[ Page 8817 ]
General has brought forward. I know that the balanced budget will give us an
opportunity to put more into community policing and crime prevention.
In 2005-06
government will share 75 percent of all traffic fine revenues with
municipalities to improve community policing and crime prevention. I am hopeful
that more can be done to make the punishment fit the crime in terms of the
sentencing of property crime offenders. We must work with the federal government
to address the problem of treating property crime offenders properly in the
courts.
Budget 2004
is a budget of building a very strong foundation for the future. Over the past
few years which led to this balanced budget, the work of restructuring
government has produced benefits such as being number one in job growth —
159,000 jobs over the past two years — number one in housing growth, number
one in small business confidence and the number one destination for new investor
immigrants.
It is clear
that the government's plan is working. I support that plan. I support this
balanced budget for my children's future and all the children of British
Columbia. I really appreciate the opportunity to have these words.
Halsey-Brandt: It's a pleasure to rise in response to Budget 2004 this
afternoon. Just before I start, I would like to thank the member for Bulkley
Valley–Stikine for these beautiful new podiums that we have in the House this
afternoon. It's the first chance I've had to use it. It just shows you the
creativity of British Columbians. With the destruction and the pine beetle in
central and northern British Columbia, when people put their minds to work to
get around that problem, it's amazing what they can come up with on these
beautiful projects. Again, thank you very much to our member and the people in
that riding who make these.
I also want
to thank the Minister of Finance and his staff. I can just imagine the amount of
time and effort they put into preparation of the budget this year, working with
all the ministries, particularly under the new regulations that we are
publishing our budget under. I know the tremendous effort that goes into putting
this together. I would like to thank them.
When I
spoke to this House — I think it was about three and perhaps a minor budget
speech ago — about three years ago, I remember talking about the decade of
decline that we had just gone through in British Columbia under the previous
government. I remember commenting that this government was committed to
rebuilding the province and that we had, indeed, an economic plan.
In my
professional life before I entered politics and became a mayor and then, of
course, an MLA, I was in city planning. Planning is all about having targets and
setting a direction so that you can reach your goal — whether it be a small
town, a neighbourhood, a city or a province that you're planning for. This
government has a financial plan and budgetary targets. We have set a direction,
and we have indicators along the way to measure our progress.
reflecting back, what did our B.C. Liberal government set as a target for the
budget, and what financial direction did we establish when we were first elected
in May 2001? I want to highlight a few of our commitments from that time. The
member who just spoke previously, the member for Vancouver-Fraserview, touched
on these, but I think it's important, because politicians are often judged in
terms of what they do in living up to their promises.
Our
commitments in 2001. We said it was a new era of accountability. Our plan will
deliver real transparent and accountable government. We were going to do several
things in the financial realm. We were going to pass real balanced-budget
legislation, make balanced budgets mandatory by our third full budget and hold
all ministers individually accountable.
[1615]
[H. Long in the chair.]
We were
going to pass real truth-in-budgeting legislation that ensures all provincial
finances are fully, accurately and honestly reported under generally accepted
accounting principles. We were going to honestly balance the budget without
cutting funding for health care or for education.
We were
going to establish service plans that included measurable performance standards
and targets for all the programs and that are annually audited and published for
all taxpayers to see. We were going to require Crown corporations to be directly
accountable to a committee of the Legislature for their financial management and
their budget plans. Of course, we were going to establish a fixed date for
tabling the annual provincial budget.
Well, we
have indeed lived up to our commitments. This budget for 2004-05 is balanced.
The finances are reported under generally accepted accounting principles. We
have a fixed date for tabling the annual budget, which of course is the third
Tuesday in February. We have protected health care and education. In fact, we've
increased those budgets substantially. All our ministries have service plans of
what their programs are and what their budgets and their staff resources are,
and they're all based on a three-year forecast. These measurables are open and
transparent and available for everyone to examine on the ministry websites.
Part of the
reason I ran in the last election was to work to turn around the economic
decline that B.C. was experiencing. This was necessary because as we all know,
without a good economy, we cannot have first-class social services. It is growth
in the business sector that indeed creates the jobs, and believe it or not, this
area is the one that pays the taxes that give government the money to pay for
health care, education and other social services.
In my
constituency of Richmond Centre, economic development had come to a standstill
in 2001. My constituents were looking to their elected member and our government
to get the economy going again. To deal
[ Page 8818 ]
with the economy, we had a plan: limit spending to what we can afford,
eliminate the deficit and, as the economy grows, increase revenues that we can
use for social services.
As soon as
possible after the election, we gave everyone a 25 percent reduction in personal
income taxes, we reduced corporate taxes, and we carried out dozens of other tax
cuts. We reduced and in many instances eliminated red tape and unnecessary
regulations. We made British Columbia competitive again for capital and labour
in North America.
We stopped
the flight of people from the province. We stopped the flight of capital. We
left hard-earned dollars in the pockets of British Columbians so that they could
decide where to spend them. Let them make their own choices instead of
government making choices for our citizens. This plan has certainly worked over
the past three years.
underline our progress, I want to outline some important economic indicators.
B.C. created 1,000 new jobs in January, building on the 83,400 jobs created in
2003. Total job creation in B.C. since December 2001, just after we were
elected, now stands at 159,900. That record of job creation is indeed, I think,
a record in Canada, and one that allows…. I would like to congratulate the
Minister of Human Resources on the work we have done for people in British
Columbia on social assistance. This record of job creation allows them to get
off of social assistance and have jobs in the province of British Columbia.
Building
permits — record growth again in 2003. The value of building permits issued by
B.C. municipalities in 2003 was up 13 percent over 2002 — twice the national
average, here in British Columbia. The Canada Mortgage and Housing Corporation
forecasts that B.C. will be one of only two provinces to see continued growth of
housing starts in 2004. Again, I just want to point out that this is January
2004. Our housing starts were up 94 percent over the same month of January in
2003 — indeed, an almost 100 percent increase in housing starts in British
Columbia, January over January.
[1620]
Just as an
aside, my son bought a house last weekend. He's taking possession very, very
soon, so he's added to the statistics. As a matter of fact, he just graduated
from university last spring. He got his first full-time job in September. He's
bought a new house, and he's getting married in the fall, so it's all coming
together. It's certainly a measure of success for him, and I think we've laid
the groundwork for him and all our children here in British Columbia.
In terms of
business, the Canadian Federation of Independent Business has found small and
medium-sized businesses in British Columbia are now more optimistic about their
business prospects over the next year than anywhere else in Canada. The number
of small businesses in B.C. has increased over 3 percent in 2002, following —
listen to it — three consecutive years of decline before that under the
previous administration. Small businesses account, as we know, for 98 percent of
all B.C. businesses and over 58 percent of all private sector jobs here in
British Columbia, and we certainly couldn't do it without them.
Another
exciting figure. Aftertax family income in B.C. jumped 4.7 percent in 2001, the
third-strongest increase in Canada and the largest increase in aftertax income
for B.C. families in the last two decades. This was our tax cuts at work.
Another
figure that's been used in this House several times over the past few days was
that for the first time people are moving back into our province — the first
time over the last six years. We saw a net inflow of over 2,600 people from the
rest of Canada coming into British Columbia in the third quarter of 2003.
Finally, a
comment from the Conference Board of Canada, which released their report just
last Friday. "British Columbia's economy will expand by 3.1 percent"
— this is for 2004 — "thanks to a stronger domestic economy and exports
to the hotter U.S. economy," the Conference Board of Canada forecast on
Friday. The province is expected to post even stronger growth numbers in 2005
thanks to a rebound in tourism, manufacturing, the forest industry and
especially pulp and paper. The Conference Board expects significant job growth
from British Columbia's service sector — in particular public administration,
construction, wholesale and retail trade — which should exceed that in most
other provinces and drive down the unemployment rate.
In my
constituency and in fact throughout the city of Richmond under the last years of
the NDP government in Victoria, instead of experiencing increased population
growth from eastern Canada and overseas, which we had had for many years prior,
many people were leaving. They were going to Alberta, to Ontario, back to Hong
Kong, to Taiwan to look for jobs and — it's serious — if they were an
entrepreneur, taking their capital with them. Businesses were boarded up, and
young people were discouraged.
I'm glad to
report that under our financial plan, confidence has returned. My constituency
is excited about economic growth and development once again. A few economic
indicators from our city that I've brought along this afternoon illustrate that
point. The number of new building permits issued in 2003 as compared to 2002 —
last year we were up by 14 percent to 1,600 new building permits. I mentioned
jobs earlier and new business licenses issued. In 2003 over 2002 they were up
almost 9 percent in the city of Richmond.
New jobs
created in 2003 over 2002, and 2002 wasn't a bad year. We had 5,700 new jobs
created in the city, and 6,900 in 2003, for a 21 percent increase in new jobs in
our city. The unemployment rate, of course, went down from 7.9 percent in 2002
to 7.5 percent. As a matter of fact, in December 2003 it was 6.1 percent. The
sale of single-family and multi-family homes in Richmond took off, and the
prices have risen with them.
In addition
to these economic indicators, the hustle of residential, commercial and
industrial activity around the riding is striking. Yesterday the member for
[ Page 8819 ]
North Vancouver–Lonsdale commented on the number of highrise construction
cranes that have gone up in the south Lonsdale area. I'm pleased to report that
indeed that is the case in Richmond. Because our community is flat — it's an
island in the mouth of the Fraser River — they do stand out very clearly, a
good indicator of economic growth. They've returned to our community under our
government. There are a lot of new townhouses, as well, and single-family
residential development.
[1625]
We're very
excited. We've got a new entertainment complex with a hotel opening in the north
side of Richmond, just adjacent to the Oak Street Bridge, by the end of May.
It's a new casino and a new entertainment centre. The hotel will be opened at
the end of this year. We have a brand-new hotel opening in the centre of town,
the La Quinta chain from the western United States. Certainly, I think they have
confidence in the way our community is going in the future.
A huge new
Aberdeen shopping centre. We had a soft opening just before Christmas. We've got
an official opening July 1 — 380,000 square feet of new commercial retail
space in this new shopping centre and a thousand parking stalls so people come
from all over the lower mainland to visit that new shopping centre. Obviously,
the developer and all those merchants going into that new, almost
400,000-square-foot mall have confidence in our economy to make that investment.
In the
industrial sector, I would like to thank the Minister of Advanced Education. She
had the opportunity to visit my riding last summer and made an exciting
announcement for us on the B.C. aerospace strategy, a $20 million strategy
around the province, specializing in terms of where the different campuses are
— whether in Campbell River, Kelowna, Abbotsford, Dawson Creek or indeed
Richmond.
certainly have a shortage of students in the aerospace industry, and this new
strategy will enable students to have additional spaces to graduate in that type
of technology. I had the opportunity to have toured several of the actual plants
at the airport that employ these students. They have such trouble finding enough
students, and in fact they are opening up some of their own training programs.
We also had
an exciting donation in the fall from WestJet Airlines of a Boeing 737-200 that
was flying one week, and they donated it to BCIT aerospace campus the next week.
The students could do their practicums on that plane so they could be right up
to date with the latest expertise.
We had a
very exciting announcement today, as a matter of fact, from YVR. They announced
today a new $1.4 billion capital construction program at the airport. If this
doesn't indicate confidence in the way British Columbia is going over the next
few years, then nothing does. Right now we have a little over 14 million
passengers a year going through that airport. They expect 23 million passengers
a year going through that airport in nine years from now. So, they today
announced an injection of $1.4 billion in capital into the airport. I just want
to touch on what a couple of those things are.
There's a
new international terminal expansion and upgrades. There's the RAV line, of
course — the rapid transit line to the airport. There are upgrades to the
domestic terminal and airfield projects. In fact, the runways are being
upgraded. Baggage system expansion and upgrades, roads and parking and, of
course, a lot of information technology — 5,200 person-years of employment
announced today at YVR. We're thrilled about that, and I think we should be
thrilled as a province.
Earlier
this month MacDonald Dettwiler and Associates of Richmond announced a $140
million project in a Canadian space mission. MDA will lead a Canadian team to
build a micro-satellite spacecraft platform for scientific and commercial
purposes to be launched in 2007. Just last week MD Robotics, a subsidiary of
MacDonald Dettwiler, won a contract to inspect a robotic rover and its
scientific payload that is scheduled to be sent to Mars in 2009.
In addition
to these exciting developments, the 2004 budget will have a direct impact on
many other initiatives in my community. We're excited about the upcoming 2010
Olympic and Paralympic Winter Games because, apart from the games themselves,
individual volunteers and the business community are looking forward to taking
advantage of opportunities.
I would
just like to take a moment to congratulate Mr. John Furlong, a resident of my
constituency, on his selection as CEO of the 2010 Winter Olympic Games. He's a
tremendous contributor to a lot of events, a lot of things that happen in the
city, and I certainly think they picked the right man for that.
[1630]
Perhaps the
biggest community opportunity is the proposed Olympic broadcast centre. In the
centre of Richmond we have a 135-acre piece of property that is owned by the
Department of Fisheries and Oceans. The Olympic committee would like to put the
Olympic broadcast centre on this site. At the present time there are
negotiations going on between Tourism Richmond, the federal government and the
city of Richmond to acquire that property, and it's a real win-win situation.
Tourism
Richmond now collects a 2 percent room tax for every hotel room in the city. One
percent of that tax is going towards this trade and exhibition centre. The
Olympic committee has also designated about $14 million or $15 million towards
this Olympic broadcast centre. Here we have a real win-win for the Olympics in
my community. Tourism Richmond is going to build a trade and exhibition centre.
If we can use that centre for the Olympic broadcast centre and combine those
uses, combine their finances, then we get two for the price of one, if I can
say.
Another
part that's not directly related to the Olympics, but it certainly is in terms
of a deadline, is the new Vancouver-Richmond-Airport rapid transit line. Each
partner, including the provincial government, has designated $300 million to
that project. We have three bids in now that are being reviewed. We
[ Page 8820 ]
expect it to be short-listed to two in the next couple of months and then a
final bidder selected in the fall. We expect 100,000 riders on that new rapid
transit line by 2010. It's going to move people. It's going to move people
between the airport and downtown and Richmond, particularly to be there in time
for the Olympic Games.
Budget 2004
inserts a total of $13 billion over the next three years to expand and update
transportation infrastructure. A portion of this is $200 million from the CN
Rail partnership that came out of our agreement with them. That money will be
used to support transportation improvements around the province.
I just want
to mention one that we're looking at in my constituency in terms of growth,
where we're going in the future and the benefits of this budget for us. We have
a 650-acre parcel of land in south Richmond against the Fraser River owned by
Fraser Port. They're looking at putting in deep-sea shipping terminals along the
edge of the river, and the backup land will be used for light industrial and
heavy industrial uses.
There's
going to have to be a new system of roadways put into this from Highway 91 and
Highway 99, so we're very, very excited about working together with the Ministry
of Transportation in doing that work to tie it into the regional transportation
grid. I know the ministry is working with the city in terms of a traffic study
now.
The funding
for the new post-secondary spaces — 12,000 of them over the next three years
and almost 25,000 by 2010. Like a lot of people in this chamber, my children
have been to college or BCIT or university, and seats just weren't there for
them. When I went to school a long, long time ago, it took four years to get
your BA or your BSc. But now it's common to be five or six years, simply because
the spaces aren't there.
Of course,
as we know, the grade point average has gone up considerably — to 80, 85, 92
percent — and for a lot of us that would be a struggle to get into university.
By creating these new spaces, we're going to get a lot of young people in our
communities now being able to get into university. We have a 92 percent
graduation rate from our secondary schools in our city, and 31 percent of those
young people go on to university. We're very, very excited about this money that
is there to help those young people get into university, from our community and
others around the province, and also, as I mentioned earlier, to places like the
BCIT Aerospace Technology Campus.
An increase
in the homeowner grant threshold, as well, to $585,000 from $525,000 is going to
assist many hundreds of residents in my community that are certainly hitting
that threshold now. I was particularly excited to see the increase for seniors
as , who will at least get a portion of the grant of their home up to $659,500
— an excellent protection for them, of course, against the significant
increase in house values that we've had in the lower mainland over the past two
years.
This budget
also provides for an increase in the gas tax refund for persons with
disabilities, and this is tremendously important in my community, which has a
relatively large percentage of disabled people. I think that's because we have a
large number of programs led by the Disability Resource Centre and the Richmond
Committee on Disability, which train people with a disability to go out into the
workforce.
[1635]
I think
it's partly because of our topography. Being a flat community, it's a little
easier to get around. Also, the city has installed many, many methods in terms
of their curbs and buildings and this sort of thing to enable everything in our
city to be wheelchair-accessible. Often persons with disabilities work part-time
because of that disability, and certainly this gas tax refund will help them, in
fact, get to their places of work.
There are a
host of additional budget measures that I would leave to others to explore, but
I do want to take a moment to reflect on what others think of our government and
of this budget. I turn to those who really do keep a critical eye on everything
that happens in the province. I clipped out three snippets: one from the Vancouver
Sun , one from the Vancouver Province and one from the Victoria Times
Colonist — the three biggest dailies in British Columbia.
Here's what
they had to say about our budget. This is from the Vancouver Sun :
balanced budget and signs of hope. Finance minister Gary Collins called his
first balanced budget a turning point in the history of British Columbia. It
would probably be more accurate to say the turning point came three years ago
when he unveiled the road map to the balanced budget he has now
delivered." And I honestly think it was a bit of both. Congratulations.
"Mr.
Collins's real achievement is that in terms of the bottom line, he is able to
keep to his plan year after year. In doing so, he has restored B.C.'s badly
shaken credibility in financial circles and revived public confidence in his
own ability — after a rocky start, of course, when he took over three years
ago."
From the
Vancouver Province :
"It's
full steam ahead for B.C.'s economic prosperity. The best news for British
Columbians is not the fact that for the first time the budget books are
balanced, but that the Liberal government's disciplined fiscal plan is
beginning to pay off.
"This
is the real benefit of a disciplined government implementing the appropriate
measures to boost the economy. The outcome will be more accessible money for
education and health programs as well as many other services that B.C.
taxpayers are entitled to. Balancing the budget, even though the surplus is
small, was even more of a challenge because it followed the expenditure of
about $1 billion in unexpected costs from last year's forest fires, floods,
SARS, mad cow disease and changes to federal equalization. All in all, a job
well done."
From the Times
Colonist :
"This
budget is a 'steady as she goes, no surprises' document that builds on their
framework put in place soon after the Liberals came to power. Campbell,
Collins & Co." — I guess that's us — "have come through a
miserable year, coping with everything from SARS to floods to fires to the
fallout from terrorism, under budget. Following that with a budget that shows
a modest surplus would be a nice turnaround from two years of deficits."
Finally,
and this is from a real tough group. This group is the Certified General
Accountants Association
[ Page 8821 ]
of B.C. representing 12,000 members they have around the province.
"Finally
a new era in fiscal responsibility and transparency has begun. We have a
balanced budget based on generally accepted accounting principles (GAAP.) The
CGA Association applauds the highly positive development that the government
is now using GAAP in its budgeting. By using GAAP, the government is
presenting its financial information in a fair, open and transparent fashion.
This is a very important milestone in restoring confidence to government
finances. B.C. can take great pride as being the first government in Canada to
adopt GAAP. We are witnessing the restoration of sound financial management
and accountability in government…."
Again,
I would like to congratulate the Finance minister, because it's even more
difficult. This year, for the first time, we had to incorporate schools,
universities and hospitals — all those public sector–funded organizations
— within our budget catchment.
[1640]
The last
three years have indeed been difficult for all of us in British Columbia. Our
economy had gone through a decade of overspending, overtaxation and
overregulation in the 1990s. World political and financial instability took a
significant hit on September 11, 2001. As our relatively small economy is
heavily based on natural resources and foreign trade, that event and the events
that followed — of course, the war in Iraq, SARS, mad cow and the forest fires
here in B.C. — were very difficult.
In spite of
those setbacks, I am pleased our government, led by the Premier and the Finance
minister, has stayed the course and lived up to our promise to balance the
budget. We have also balanced the budget in a socially responsible way, looking
after our health care sector, education, seniors, children and the most
vulnerable in this province. By maintaining the financial course and through our
fiscal policies, we've restored not only business confidence in B.C. but the
confidence of the public that we are managing public programs in the best
interests of all British Columbians.
Hon. J.
van Dongen: It is with great pride today that I stand in this House to speak
about our balanced budget. Certainly, the need for fiscal responsibility in
government is one of the reasons I ran for public office.
Our
government said a little over two and a half years ago that we would balance the
books. We ran on this as an election promise, and one I was very pleased to
embrace. We have delivered on that, despite having inherited a very significant
deficit overhang from the previous government. The previous government had made
commitments that they had not provided funding for. The previous government
could only rely on unexpected and unplanned revenue windfalls to bolster its
fiscal claims.
Our
government has actually balanced the budget. We have brought spending under
control, and our balanced-budget legislation ensures that all future budgets
will also be on track and in the black. We owe this important achievement to the
leadership of our Premier and the Minister of Finance, who have kept us focused
on this important goal. Focus and discipline — that's what it takes to balance
the budget and spend hard-earned taxpayers' dollars wisely.
To put it
into context, consider this. The province's books are in the black after a year
when we faced unprecedented costs to fight forest fires — almost $500 million
— to protect families, workers and communities. We were confronted with an
ongoing pine beetle epidemic. The softwood lumber dispute remains unresolved. We
saw SARS, flooding and, closer to my own ministry, mad cow disease. In all, it
was almost a billion-dollar hit that we have weathered this past year.
Balancing
the books is all about bringing out the best in British Columbia. Balancing the
books gives us choices and means we don't have to mortgage our children's future
to deficit financing. In this budget, health care funding is going to enjoy a
spending increase of more than a billion dollars over the next three years, in
addition to all of the dollars we have put in, in the last two and a half years.
That's real money to improve patient care.
I want to
take a look at what all of this means for the Ministry of Agriculture, Food and
Fisheries. We are certainly focused on bringing out the best in agriculture and
in our seafood sector in British Columbia. Our ministry budget has been
stabilized at $44.6 million. That means we have secure funding in place to share
risk management with the industry through crop insurance and the new Canadian
agricultural income stabilization program.
We're
working with industry on collaborative approaches that build their sectors and
provide them with the assistance they need when they need it. This was
demonstrated this past year with the discovery of BSE in Alberta and again in
Washington State. Our ministry worked alongside industry leaders like the B.C.
Cattlemen's Association to provide the programs that would prove the most
beneficial. I certainly want to highlight and express my appreciation to the
leadership in the B.C. Cattlemen's Association. People like Agnes Jackson and
David Borth have been invaluable in helping us work through this difficult
issue.
[1645]
For
instance, we're paying ranchers and farmers support for their cull cow situation
at $128 per eligible animal. To date we've paid out more than 1,200 claims
totalling more than $2 million, and another 2,000 claims are being processed as
we speak. It's all part of our $10.5 million commitment for the BSE recovery and
cull cow programs.
On top of
that, we're making good on our commitment last fall to farmers and ranchers, and
we'll see another $16.8 million of incremental money provided under the CAIS
program, the Canadian agricultural income stabilization program. Those are real
dollars that are helping our farmers and ranchers in the Peace River region, the
interior, the Kootenays, the Cariboo and many other rural areas of B.C.
including Vancouver Island.
[ Page 8822 ]
Our mission
in the Ministry of Agriculture, Food and Fisheries is for a competitive and
profitable industry that provides safe, high-quality food for consumers and
export markets. This vision impacts every British Columbian and every consumer
of B.C. products. I am proud to be a part of a government whose mandate is to
provide the people of B.C. and our export markets with safe and healthy
world-class food products. I'm also honoured to be part of a government that has
the determination and commitment to lay out a plan, make the difficult decisions
to deliver on that plan and then stay the course until that plan begins to bear
fruit.
The budget
speech talked about bringing out the best in B.C., noting that the groundwork
for growth had been laid and the foundation for achievement was being built. We
are starting to achieve on numerous fronts, both as a government and as a
ministry. Employment is up, with more than 83,000 jobs created last year alone.
Building permits issued by B.C. municipalities were up 13 percent last year
compared to 2002 — almost double the national figure. We even saw a net inflow
of people from the rest of Canada moving into British Columbia in the third
quarter of 2003 — the first time in six years that more people moved to B.C.
from other provinces than moved out of B.C. That's an example of bringing out
the best in our economy, and we're going to do more this year to build on that.
The
Minister of Forests is making some very significant changes in forest policy to
reform and help rebuild that vital industry. Introducing a market-based timber
pricing system on the coast is revolutionary. Reallocating 20 percent of the
annual allowable cut to small operators, local communities and first nations
will help create jobs in the woods.
The
Minister of Sustainable Resource Management is laying the foundation for
economic revitalization with the land use plans he intends to deliver this year.
Working with a diverse group of stakeholders and coming up with innovative
solutions that balance economic, social and environmental goals will help bring
certainty to the whole of the resource sector. That will mean reduced conflict,
stability for our international markets and new working relationships with first
nations.
At the same
time, more than $300 million will be added to the education budget over the next
three years, and that's considering an ongoing declining enrolment in K-to-12.
Our government has committed to not cutting funding for health care and
education. In fact, we're adding major dollars to these two priorities,
recognizing their importance to all British Columbians.
As I
highlighted earlier, in my own ministry we're also providing for people in need.
Ranchers and farmers have faced unprecedented challenges this past year as a
result of the discovery of BSE in Alberta and in Washington. This has meant the
loss of markets, restricted border movement and pressures to cope with record
numbers of cattle in our herds that had nowhere to go. The Premier and I have
lobbied U.S. Governors, WTO trade leaders, ministers, Premiers and the Prime
Minister, as well as consulted our industry and initiated actions to help
mitigate damage and develop recovery options.
[1650]
Our farmers
are able to leverage significant assistance from the federal government, thanks
to the fact that B.C. was one of the first provinces to sign on to the
agricultural policy framework — a five-year, cost-shared $416 million deal to
strengthen and renew agriculture in British Columbia. B.C.'s agriculture and
food industry strengthens coastal and heartland communities, generating more
than $20 billion in annual sales while supporting workers in transportation,
packaging, sales and other industries. There are over 61,000 people employed in
the farming community on over 20,000 farms.
Our
ministry intends to continue working with the industry in the year ahead to
foster new markets for B.C. cattle and beef, and we'll redouble our efforts to
get the U.S. border fully opened to live cattle. We're looking forward to the
continued implementation of the agriculture policy framework that will build the
agriculture sector, in particular improving food safety and quality standards
and on-farm environmental practices.
Aquaculture
is also an area where we are trying to create a supportive business environment
to allow for managed expansion of that industry. Strategies have been undertaken
to ensure the full economic utilization of our marine fisheries and renewal of
the wild seafood sector, continuing to build a sustainable aquaculture industry
at the same time. Our ongoing focus is addressing concerns over water quality,
management of wastes, fish health and a whole range of environmental issues.
Our goal is
to get the most economic benefit possible from our fisheries — our wild
fisheries and aquaculture industries — but not at the expense of the
environment or the protection of our resources. In the same way that we are
working on the land to protect our streams and rivers, we're also expanding our
protection to encompass areas of our natural legacy in the ocean. Strengthening
our relationship with federal and local governments, encouraging the federal
government to clear a backlog of site relocations and new applications for
shellfish and finfish aquaculture operations will help build jobs in coastal
communities among first nations as well as all other communities on the coast.
We're able to do all of this while still meeting our balanced-budget targets.
Our
achievement in tabling a balanced budget cannot be overstated, and it's
important to note that this budget is based on the most up-to-date generally
accepted accounting principles for government entities. We've achieved that
despite some remarkable challenges, as we've mentioned — SARS, the ongoing
softwood lumber dispute, flooding and last year's forest fires. That's the merit
of a government having a fiscal plan and sticking to it. No longer will we be
mortgaging our children's future to deficit financing.
Thanks to
our balanced-budget legislation, all future budgets will have to be balanced.
This means re-
[ Page 8823 ]
ducing interest payments as we reduce our deficit financing and ultimately
begin to pay down our debt. That means there will be more dollars available for
important social programs, more dollars for patients, more dollars for students
and more dollars for people in need. That's what the last two and a half years
have been about and what the Minister of Finance talked about in his budget
speech — building a foundation for renewed prosperity into the future.
We have
also removed the impediments to investment. We have cut costs and red tape.
Personal income taxes have been lowered, and 27 tax relief measures have been
implemented. We will continue to work to do more, making good on our commitments
to reduce the regulatory burden by one-third, encouraging more investment and
modernizing the regulatory framework not just in agriculture but in
environmental management and in our resource sectors as well.
Bringing
out the best in B.C. is an exciting initiative, an exciting thing to be working
on in the future. We have the best resources. We have the best tourism
industries. Most importantly, we have the best people living here, who help
exemplify the best of British Columbia to the rest of the world. We have
overcome many roadblocks in the past year, and we continue to build a better,
stronger British Columbia for everyone because of the leadership of our
government.
[1655]
The time
for uncertainty is over. The time for a brighter future is there with this
balanced budget for all British Columbia citizens. Thank you for this
opportunity.
Hayer: Last year I spent many weeks touring the province as a member of the
Select Standing Committee on Finance and Government Services. Our task was to
hold budget consultation meetings with British Columbians across the province.
We listened as people told us of their concerns, their hopes and their desires
to see an economy that gives them security, prosperity and a bright future. We,
as members of the Finance Committee, took those opinions, those thoughts, back
to Victoria. Most of what we heard helped form the basis of this budget that we
are speaking to today.
People told
us they wanted stability and an economy that can sustain them and provide the
jobs that will allow their families to prosper. This year's budget answers most
of their concerns. It is balanced; it has surplus. Most of all, we have finally
achieved in the government what everybody else must do: match their financial
outflows with their financial incomes. We have made government, like everybody
else, live within its means. That is truly a good thing.
This budget
also speaks volumes about this government's keeping promises and meeting
deadlines. One of the first acts of this government, when we were first elected,
was to bring in balanced-budget legislation. This government not only said it
would bring in a balanced budget in its third year of office, but it made it the
law, and we have abided by that law.
We have
also restored transparency and accountability in other areas of government —
the first in Canada with fixed election dates and with free votes. The free
votes allow the members to vote their conscience or their constituents' desires.
We have also set up the Citizens' Assembly so ordinary people, randomly selected
from across the province, will actually sit together without any political
interference whatsoever and decide what kind of future and what kind of
Legislature we will have to govern this province. This is again the first in
Canada. This is accountability.
We have not
only balanced the budget, but we have the added bonus of $100 million surplus
for 2004-05, $275 million for 2005-06 and $300 million in 2006-07. In addition,
a cushion of more than $400 million in each of the next three years will protect
our balanced budget against unforeseen circumstances such as we faced in 2003.
Last year
was incredible. British Columbians faced horrific and devastating forest fires.
We had to endure cost overruns in the forest fire fighting budget in the
magnitude of ten times what was forecast. We had SARS battering our tourism
industry. We had BSE crippling our cattle industry. We had drought and we had
massive flooding. We had a catastrophic pine beetle infestation destroying our
forests and attacking the economic lifeblood of the forest-dependent
communities.
On top of
all that, our forest industry has had to struggle against the protectionist
attitude of the Americans as they continue to impose import tariffs against our
softwood. Yet through all that, we prevailed and we persevered. This budget
shows just what government can do if it puts its mind and its promises on the
line. We said we would do it, and we did it. We have exceeded even our own
expectations. On February 17 we succeeded.
Last
Tuesday British Columbia became the first province to introduce a balanced
budget that complies with the legislated generally accepted accounting
principles, known as GAAP, and by the law that was introduced by this government
in 2001. All subsequent budgets will be balanced on that basis.
[1700]
Last
Tuesday we sent a very clear message to businesses, to the taxpayers and to
potential investors that British Columbia has now turned the corner on fiscal
prudence. We have turned the corner economically, and the rest of Canada is
noticing. For the first time in six years, more people are now moving back to
British Columbia. They are returning because this government has given them hope
again — hope and the promise of a bright future in revitalizing the economy
that is not only dynamic and growing but sustainable over the long haul. That is
what is bringing families back to British Columbia — back home. Finally, they
know that they can create the lifestyle they want in the best province in the
country and that they can provide for their families right here.
What we
have done during the past almost three years and with this budget is create the
security and
[ Page 8824 ]
the sustainability that families need to grow, to plan and to prosper. B.C.
leads the nation in job creation, housing starts and both consumer and business
confidence. This is further proof that the economy is recovering from the
previous decade.
I know from
my constituents, from the business people in my community and from talking to
people whom I have met on my travels throughout the province and the many
meetings I hold in my constituency that what they wanted from this government is
a strong, growing, resilient economy. They want government to create that while
keeping the tax burden at a reasonable level.
They want a
government that encourages investment. This budget does just that. It encourages
investment and business growth. We have in this province more than 340,000 small
businesses. They represent 98 percent of the business in this province, and they
create most of the jobs and most of the income that British Columbia's families
rely on. Those incomes, those jobs, provide the revenue the government uses to
provide the social safety net that British Columbians hold so precious.
This budget
includes more than $1 billion in new health care spending, and that money will
go to only one thing: improving patient care. It will not go to increases in
salaries. It is targeted at the patients. That is what the health care system
should be all about. As well, another $694 million will go into new
construction, equipment and upgrading of existing health care facilities.
This budget
contains money for our children and our future in the form of more money going
into education. Some $313 million over the next three years is going into
classrooms from kindergarten to grade 12, plus tens of millions of dollars have
been allocated for seismic upgrading of the schools our children attend to
ensure that they are safe and secure.
Another
$105 million will go into advanced education over the next three years to
improve access to higher education for our students and to help create