British Columbia Hansard — Thursday, October 24, 2019 p.m. — Number 281 (HTML) (41st Parliament, 4th Session) (20191024pm-Hansard-n281)
20191024pm-Hansard-n281
British Columbia — Debates (Hansard)
Fourth Session, 41st Parliament
(2019) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Thursday, October 24, 2019
Afternoon Sitting
Issue No. 281
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business
Tributes
Al Martin
Hon. J. Horgan
Introductions by Members
Statements
Message of appreciation
Hon. M. Farnworth
Tributes
Al Martin
S. Thomson
Introductions by Members
Statements (Standing Order 25B)
Agriculture industry and activities of animal rights
protesters
J. Martin
Primary health care services in Maple Ridge and Pitt Meadows
B. D’Eith
Public art in Ashcroft
J. Tegart
Diwali
R. Singh
Legacies of Saanich area residents
A. Olsen
History of Sutlej and reconciliation
R. Kahlon
Oral Questions
Court ruling on evidence rules in ICBC cases and impact on revenues
A. Wilkinson
Hon. D. Eby
M. de Jong
Forest management and climate change mitigation
A. Olsen
Hon. D. Donaldson
Forest industry and value-added products
A. Olsen
Hon. D. Donaldson
Automobile insurance rates
J. Johal
Hon. D. Eby
J. Thornthwaite
Motions Without Notice
Membership change to Auditor General Appointment Committee
Hon. M. Farnworth
Orders of the Day
Committee of the Whole House
Bill 36 — Gaming Control Amendment Act, 2019 (continued)
M. Lee
Hon. D. Eby
C. Oakes
Point of Order (Chair’s Ruling)
Committee of the Whole House
Bill 36 — Gaming Control Amendment Act, 2019
(continued)
S. Chandra Herbert
Hon. D. Eby
Report and Third Reading of Bills
Bill 36 — Gaming Control Amendment Act, 2019
Second Reading of Bills
Bill 33 — Securities Amendment Act, 2019
Hon. C. James
R. Sultan
S. Chandra Herbert
THURSDAY, OCTOBER 24, 2019
The House met at 1:37 p.m.
[Mr. Speaker in the chair.]
Routine Business
Tributes
AL MARTIN
Hon. J. Horgan: I rise today to acknowledge the passing of Al Martin. My colleague
from Oak Bay–Gordon Head did this earlier in the week.
I know that members on the other side will have known Al as a
dedicated public servant, 30-odd years working on protecting fisheries
and wildlife issues for future generations. His passion for the
outdoors, his passion for the wildlife of British Columbia led him to
retirement and then a job with the B.C. Wildlife Federation working on
issues like sturgeon conservation, salmon habitat protection and, of
course, watershed restoration.
I’ve spoken with Al many times over the years, as a scolding
public servant telling me what was right, as a public servant myself and
later as an elected representative scolding me about what was right. Al
was very passionate about British Columbia. He was very passionate about
the spectacular splendour we have, whether it be our wildlife, our
natural abundance. The province is lesser as a result of his passing. It
was sudden. I know that his wife, Julie, and his three children are
grieving deeply.
As the member for Oak Bay–Gordon Head said, and I’m sure all
members would agree…. If the House could pass on their condolences to
the family as we reflect on the loss of a truly great British Columbian,
Al Martin.
Introductions by Members
Hon. D. Eby: Thank you to the members for their tolerance of a slightly
longer-than-usual introduction/proclamation. This is the beginning of Access
to Justice Week in the province. As members know, access to justice is
fundamental to a vigorous and well-functioning democracy. It’s really only
possible when people are able to understand, use and afford information and
services that can help prevent, manage or resolve legal problems and
disputes and reach fair outcomes in a timely manner.
Next week law students will be exploring access to justice through
events to be held in Kamloops, Vancouver and Victoria as part of Access to
Justice Week in British Columbia. Access to Justice Week happens October 27
to November 2 and is led by the law schools — the school of law of the
University of British Columbia, Thompson Rivers University’s faculty of law
and the University of Victoria’s faculty of law — and is sponsored by Access
to Justice B.C.; the Canadian Bar Association, B.C. branch; the Continuing
Legal Education Society; the courthouse libraries; the Law Foundation; the
Law Society; and the Ministry of Attorney General.
Today I ask the members of the House to join me in welcoming Rob
Lapper, Queen’s Counsel, who’s the David and Dorothy Lam Chair in Law and
Public Policy at the University of Victoria; and Johanne Blenkin, the
director of the Access to Justice Centre for Excellence at the UVic faculty
of law. They are here with us in honour of the proclamation of Access to
Justice Week 2019.
[1:40 p.m.]
Congratulations to the organizations, law schools and students who
will be celebrating the proclamation of British Columbia’s Access to Justice
Week next week.
S. Sullivan: Today we have two very special guests, Richard Lowy and Cheryl
Campbell. When Richard’s father was 15 years old, he and his twin brother
were sent to a camp called Auschwitz under the care of a doctor named
Mengele.
I know that Richard and Cheryl have been having very productive
meetings with the Minister of Education and his staff. He’s telling a very
important story called Leo’s Journey . It’s a story that all of us
need to hear.
Thank you, Richard and Cheryl, for your work.
Hon. H. Bains: We have some very special guests in the House today: the president of
the B.C. Federation of Labour, Laird Cronk, along with a number of B.C.
Federation of Labour staff members. We also have the president, Stephanie
Smith; the treasurer, Paul Finch; a number of vice-presidents of various
components; as well as BCGEU staff members.
Also in the House is Barb Nederpel, president of the Hospital
Employees Union.
House, please help me make them feel very, very welcome.
Statements
MESSAGE OF APPRECIATION
Hon. M. Farnworth: All of us were privileged this morning to be part of a very
historic ceremony that went off very smoothly and incredibly well, in
large measure due to the excellent work behind the scenes of the staff,
the security, the Table Officers and people in this building.
I’d like the House to recognize their great contribution this
morning in making today’s event go so well.
Tributes
AL MARTIN
S. Thomson: On behalf of the members on this side of the House, I’d like to
add to the words of the Premier and the leader of the Green Party on the
passing of Al Martin and to bring our condolences to his wife, Julie,
and their family.
I knew Al and worked with Al for many, many years and received
many of the same scoldings that the Premier referenced. But I worked
with Al even before politics, when I worked for the agriculture
industry. I had lots of engagement with him, when he was working in the
ministries and I was representing the agriculture industry, around
conservation issues and land use issues and then, latterly, as Minister
of Forests, Lands and Natural Resource Operations, both working with him
and then in the Wildlife Federation. In one particular file with…. I
received a lot of scolding from him on the wildlife allocation policy
file.
He was a tremendous and passionate advocate for conservation, for
wildlife in British Columbia. He leaves a great legacy in that whole
movement. I know the citizens of British Columbia are going to miss him,
and we are sorrier for the loss of his commitment to the environment and
to wildlife.
On behalf of the official opposition, I add, as I said, to the
words of the Premier and the Leader of the Third Party in passing on our
condolences to his wife and his family and all his friends.
Introductions by Members
R. Chouhan: I’m pleased to welcome 17 teachers from across British Columbia who
are with us to participate in the 22nd B.C. Teachers Institute on
Parliamentary Democracy, an intensive four and a half days of professional
development on politics, democracy and governance. They are continuing to
expand their knowledge of our parliamentary system in order to return to
their classrooms to better equip B.C. students on democracy and civic
responsibilities.
They’re also joined by three of their peers, who are returning in the
role of facilitators: Mr. Neil Powell, Ms. Beth Morgan and Mr. Timothy
Dilley. I would ask the House to please make them feel very
welcome.
[1:45 p.m.]
Hon. S. Fraser: The work we do here is so important, and the work we all do as MLAs is
vital. But going along with that, we often miss our families. We miss
events, and our family members have to put up with a lot. So it’s a real
treat when they are able to come here and spend a bit of time with
us.
My wife and love, Dolores Fraser, is here in the audience, and my
beautiful daughter, Emma Carswell, is also here. She was here with her
husband, Cameron Carswell, earlier to witness the introduction of Bill 41.
Would the House please make them feel very welcome.
Hon. D. Eby: Here in the corner is Ian Waddell, former MLA, former MP, my
constituent that visits the most frequently. I want him to be recognized for
that. He also has a new book out, and I recommend all members in this place
go pick it up right away.
Hon. J. Horgan: I want to echo the sentiments of the Attorney General. Not just a
former MP and a former MLA, Ian has the distinction, I believe, of the only
member of the House of Commons from Vancouver-Kingsway who ran in Kingsway
in 1984 and in Port Moody–Coquitlam right next door, three or four SkyTrain
stops away, in ’88. Then he became, of course, the member for
Vancouver-Fraserview. It is really an extraordinary career — a life well
lived.
Ian, it’s always good to see you. But you’ve got to find a hobby in
Vancouver, friend.
Would the House please make him very, very welcome.
Mr. Speaker: And he’s a very hard marker.
Hon. M. Mark: Speaking of hard work, I have two guests in the gallery today, Asia
Munro and Diego Cardona. They are my executive assistants, my executive
coordinators. They manage my calendar. They make sure I get fed. They make
sure that I am there for ballet pickup for Makayla and rugby practice for
Maya. They support me in everything that I do. They are my professional
family. They make sure that I’m in good hands.
I want to highlight that they’re students from VIU. I want to give a
shout-out to former Malaspina, Vancouver Island University, where Asia
studied tourism and recreation management. She’s from the Sucker Creek Cree
First Nation.
To me, that is reconciliation in action. She’s a graduate of the
internship youth program for year 12, a program that started many years ago
and that we continue on with pride, in the public service.
Of course, Diego Cardona, who’s been a champion for former youth in
care, making sure that they have a voice. He was a big champion for the
language learning is a human right.
Will the House please join me in welcoming our two special
guests.
Statements
(Standing Order 25B)
AGRICULTURE INDUSTRY AND ACTIVITIES
OF ANIMAL RIGHTS
PROTESTERS
J. Martin: Like many in this chamber, I represent a riding that is rich in
agriculture, rich in agrifoods. Those who make their livelihood in the
fields and the barns…. They’re accustomed to facing challenges —
challenges from weather, fires, price fluctuations, feed supply,
livestock diseases and more.
Now farming families are facing a new challenge. They are being
physically threatened and slandered. They are seeing trespassers
vandalize their property and risk food security. Even their children are
being harassed and threatened. All of this is being done in the name of
animal rights activism.
Well, let’s be very clear. This is not activism. This is
intimidation. This is thuggery. This is terrorizing families in their
homes. I’ve heard from Chilliwack and Fraser Valley farming families who
Columbia’s borders. I can tell you that the viciousness and the
vulgarity of these attacks is nothing short of horrifying.
Trespassers are casually entering private property and refusing to
vacate when told to do so. Or they trespass at night, damaging gates and
fences in the process, methodically destroying farm equipment and
installing cameras on private property. When these acts are reported,
too often there is little if any response. Sadly, it has become all too
common for authorities to turn a blind eye to blatant criminality so
long as it’s been conducted in the name of protest or
activism.
Well, there are numerous levels of governance and authority that
need to do more. I was thrilled to see some positive bipartisanship and
collegiality in this chamber in recent days to step up on this very
subject matter and do the right thing.
[1:50 p.m.]
As always, the buck stops here in this House, with all 87 of us.
Farming families throughout British Columbia are counting on us — all 87
of us.
PRIMARY HEALTH CARE SERVICES
IN MAPLE RIDGE AND PITT
MEADOWS
B. D’Eith: I was shocked to learn that over 18,000 people in Maple Ridge and
Pitt Meadows currently don’t have a family doctor or consistent primary
care providers. As Canadians and British Columbians, we take pride in
our public universal health care system. However, far too many people
depend on the emergency room for primary care.
Recently I was elated to be joined by the Minister of Health; the
Minister of Tourism, Arts and Culture; Dr. Victoria Lee from Fraser
Health; Chief Grace George of the Katzie First Nation; and Dr. Ursula
Luitingh of the Ridge Meadows Division of Family Practice at the opening
of an urgent care and primary care centre and the launch of two primary
care networks for Maple Ridge and Pitt Meadows.
More and more families continue to move into our area, but for
many years, investments in health care haven’t kept up with this pace.
Our new urgent primary care centre will ensure that folks can receive
the quality care they need, including same-day access to urgent care.
The centre expects to have over 25,000 annual visits.
The urgent primary care centre will be operated by the Fraser
Health Authority with the support of the Ridge Meadows Division of
Family Practice and, very importantly, the Katzie First Nation. In fact,
in the spirit of the reconciliation that we witnessed today, the Katzie
Nation has been fully involved in order to provide culturally
appropriate and traditional care in our community.
Now, as far as the primary care networks, these will provide teams
of highly qualified care workers who will help to address the diverse
health needs of our community, including maternity care, chronic pain,
in-patient service, mild-to-moderate mental health care, preventative
care, substance abuse, seniors and residential care, and many other
needs.
Through the urgent care and primary care centre and the primary
care networks, patients in Maple Ridge and Pitt Meadows can fully enjoy
one of our most fundamental rights as Canadians and British Columbians:
timely access to quality universal health care.
PUBLIC ART IN ASHCROFT
J. Tegart: I want to share a story about how a small community has come
together through art. The Ashcroft mosaic public art displays, over 70
installations throughout the community, are stunning pictures that
depict the history and culture of the area, starting with the incredible
dragon mosaic at the historic Chinese Cemetery, which seems to move in
the light as you drive by. The shrine with mosaic symbols completes the
Chinese Cemetery installation.
Another amazing project is the Harmony Bell project, bringing
together mosaic art pieces featuring First Nations, the Japanese
community, the Chinese community and the settlers — four pieces
portraying the contributions of all four cultures to our community and
area. A very significant piece in our community in the process of
reconciliation through art.
Recently we unveiled a mosaic designed and created by our first
responders. It’s a piece that shows five first responders, and it
commemorates the 2017 Elephant Hill fire. The first responders talked
about how healing the artistic process was for them. The most recent
pieces unveiled were in commemoration of the Japanese internment. We
were honoured to host the Japanese consul general in our community
during the unveiling ceremony.
There are two common elements in all these incredible glass art
pieces. Those are artists Marina Papais and Daniel Collett. They have
chosen Ashcroft as their home and have brought mosaic glass art to the
life of the community. They welcome one and all to participate in their
love of creating meaningful pieces that are an inspiration to
everyone.
I invite everyone in the House to join me in celebrating the
Ashcroft mosaic artwork.
DIWALI
R. Singh: Diwali, the highlight of Indian festivals, a festival that
celebrates the victory of good over evil and of liberty from injustice,
will be celebrated on Sunday. In respect of that, I would like to share
an immigrant experience with you all.
[1:55 p.m.]
The celebration of this festival stretches back to about 3,000
years, but even today it occupies a special place in the Indian hearts.
Growing up in India, Diwali was a celebration that children and grownups
alike looked forward to with immense excitement. As it drew near, the
sense of anticipation and joy could be felt in the air all around. The
colourful lights garlanding homes, gurdwaras, temples and businesses.
People carrying gifts and confectionaries. Family and friends visiting
and the crackle of never-ending fireworks. It was and is a time to
celebrate the privilege of humanity and invoke good fortune for the
coming times.
I must admit that in 2001, when I first moved to Canada, to B.C.,
despite the density of South Asians here, I was underwhelmed by the lack
of comprehensive Diwali celebrations. Those that existed were a bit
subdued, and that made me long for a vibrant Diwali even
more.
Fortunately, for thousands like me, things have changed, and now
Diwali in B.C. is celebrated with much fanfare, be it by families or
businesses that serve those families. Now there is a stretch of Diwali
galas and functions welcoming this much-loved festival. In this age of
widespread divisiveness and exclusion, many British Columbians have made
this festival of light their own, which is evidence to the world of our
openness to embrace other cultures.
During my initial years in Canada, never would I have thought that
I, a new immigrant to this beautiful place, would be standing in this
venerated chamber of my new home’s Legislature, dressed in a celebratory
sari, addressing all of you and inviting you all and the rest of B.C. to
celebrate Diwali with us. This, I can attest, speaks of the
inclusiveness and multicultural values of British Columbians.
LEGACIES OF SAANICH AREA RESIDENTS
A. Olsen: Today I stand to celebrate the lives of three giants from my
community and try to do it in under two minutes.
One lived and worked the soil in the Saanich Peninsula for nearly
nine decades. One used his gift of language to illustrate in our minds
the complexity of nature and our human relationships. One worked
tirelessly to create a more just society through his career and
community volunteerism.
Vern Michell was a fourth-generation farmer on the Saanich
Peninsula. He’s survived by Dorothy, his wife of 64 years; his sons, Tom
and Terry; six grandchildren; and three great-grandchildren. Over the
years, I had the honour of talking with Vern and hearing a few of his
stories, from him working his fields with horse and plow, harvesting the
seafood on the beaches neighbouring his property at Island View to his
championship bowling. Vern’s life was one well lived. The hundreds of
people that attended his celebration of life are a true testament to the
quality of the man and the family he raised.
Patrick Lane, an award-winning poet, an officer of the Order of
Canada and the recipient of five honorary doctorate degrees, is survived
by his partner, Lorna Crozier; two sons, Michael and Richard; and six
grandchildren. A gardener who lived and loved life hard through his
powerful gift of words, I was blessed with Patrick’s wisdom a few times.
We walked together on the beach and through the forest that he
personally and methodically cleared of climbing ivy.
Bill Foster’s legacy in the province lives on to this day. Former
assistant to the deputy minister, director of inspections and standards
and manager of the northern Interior regions of B.C. Corrections, Bill
is survived by his wife, Jocelyn, and his children, Maggie, Jon and Ben.
He was a community organizer and a volunteer, chair of the Saanich
Peninsula Food Bank and John Howard Society and president of my riding
association in Saanich North and the Islands. He’s the only person I
know to have a sticker with my name on it perpetually stuck to a
prosthetic leg.
I raise my hands to these three gentlemen and their families. I’m
honoured to stand here today to acknowledge their contributions to our
community and our province and celebrate their lives.
HÍSW̱ḴE
SIÁM .
HISTORY OF SUTLEJ
AND
RECONCILIATION
R. Kahlon: Many people who drive down Sutlej Street here in Victoria would
never think twice of where the name came from. Not Victoria’s Jatinder
Singh. He was intrigued because Sutlej is a famous river in Punjab and
associated with many historical Sikh events. He didn’t think any more of
it until Victoria city council started talking about reconciliation with
Canada’s Indigenous populations.
[2:00 p.m.]
In their discussions, Sutlej Street came up amongst other Victoria
street names that might be deemed offensive to Indigenous communities.
He thought: “Why would this offend First Nations?” That’s when his
journey of discovery and reconciliation started.
In 1846, the East India Co. launched an attack on the Sikh Khalsa
army on the banks of the River Sutlej. The battle tragically ended with
the British’s colonization of Punjab. To commemorate this event, the
British navy commissioned a new navy gunboat and named it HMS
Sutlej .
A few years later in B.C., after ongoing, intensified conflicts
between the Ahousaht Nation and the British, HMS Sutlej gunboat
was deployed. The event is still remembered today as the most aggressive
gunboat attack on the west coast. The vessels fired cannonballs. The
crews burned longhouses, destroyed canoes, claimed hostages and killed
many. One of these hostages was a young child who was renamed Margrette
Sutlej Davis after the gunboat. The Nuu-chah-nulth girl survived two
more years on the gunboat and died at sea.
Sutlej has different meanings to different people but unites the
struggles of two communities. Jatinder Singh took this history of
injustice and made it a mission. Along with many in the Sikh community,
Khalsa Aid Canada and the Ahousaht Nation, they launched the Maggie
Sutlej Ahousaht reconciliation project.
Today our government is making history by introducing legislation
to recognize the United Nations declaration on the rights of Indigenous
peoples. It’s an important moment to reflect on the darker chapters of
our collective history and how all of us can make a difference in
that.
Oral Questions
COURT RULING ON EVIDENCE RULES IN
ICBC CASES AND IMPACT
ON REVENUES
A. Wilkinson: Not long ago the Attorney General stated to the people of British
Columbia that he would save motorists $400 million a year with a quickie
change to the rules of court. Well, the only problem is that he somehow
didn’t notice that the courts determine the rules of court.
Today the Chief Justice of the Supreme Court of British Columbia,
Mr. Justice Hinkson, made it crystal-clear that the Attorney General had
no clue what he was doing and slapped down his effort to control costs
at ICBC. His scheme is dead in the water to the tune of $400 million
that the Finance Minister now has to deal with. And who pays? Every
single driver in British Columbia.
When is the Premier going to realize that his Attorney General’s
scheme is falling apart and he better figure out a new plan and find a
new Attorney General?
Hon. D. Eby: It’s, obviously, a difficult day receiving the decision from the
B.C. Supreme Court. We’re still studying it.
But we went forward with a basic principle, which is that the
amount of money that people spend to get a decision from the court
should be proportionate to the award itself. It’s not something that we
just came up with. In 2006, the Leader of the Opposition will remember
Allan Seckel. He and the then chief justice worked on a civil reform
justice group and said exactly that.
Now, I’ve been waiting….
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: The members are shouting about committees. I appreciate
it.
I’ve been sitting here waiting for 2½ years for a question on ICBC
from the opposition. So while it’s a difficult day in the court
decision, I’m glad to stand and remind British Columbians…
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: …of what the Fraser Institute said about the previous government.
“Faced with exploding costs, the previous B.C. government had a choice:
contain the costs, take the unpopular decision to increase rates
substantially or enact large-scale reform of the basic auto insurance
system in the province. In the end, the government chose to do
nothing.”
Mr. Speaker: The Leader of the Official Opposition on a
supplemental.
Interjections.
[2:05 p.m.]
Mr. Speaker: Members. Members, the Leader of the Official Opposition has the
floor.
A. Wilkinson: Well, we’ve got quite a track record emerging here from this
Attorney General, who purports to be the person who runs the legal
system in British Columbia.
August 29, 2017, in federal court: “British Columbia does not
appear to understand the basic ground rules of the complex proceeding it
is seeking to enter.” February 22, 2019 — case kicked out of the Alberta
courts because the claim is struck. May 24, 2019 — lost 5-nothing in the
Court of Appeal in the Trans Mountain case. Now we have the Chief
Justice of the Supreme Court of British Columbia saying the Attorney
General hasn’t got a clue what he’s doing when it comes to managing the
rules of court.
This is a bit of a surprise when we’re supposed to have a
competent Attorney General who’s managing ICBC. Instead, we have
flagrant incompetence, a continuing losing record and no effort
whatsoever to do anything that is actually going to lead to reduced
costs for motorists.
This is a total failure by the Attorney General. It’s time the
Premier took some accountability on this, because motorists are paying
for this, not the Attorney General.
Hon. D. Eby: I’m going to tell the Leader of the Opposition a brief story about
a member who didn’t have the stones to stand up today to ask a question
about ICBC. It was a sunny afternoon in 2015 in Kelowna, a closed hotel
boardroom and a lobby group called the ARA, a lobby group for automobile
repair….
Interjections.
Mr. Speaker: Members. Members, please.
Interjections.
Mr. Speaker: Members, we shall hear the response.
Hon. D. Eby: I’m worried the members know the story I’m going to tell, which is
why they don’t want me to tell it. In 2015, a closed boardroom in
Kelowna….
Interjection.
Hon. D. Eby: It’s better than burying reports. I hear the driveway crew out
front just dug up one from the former Finance Minister this
morning.
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: The former minister, who’s shouting, literally tore pages out of a
report about how to fix ICBC. So I’ll take my direction from somewhere
else.
Now, in the first part….
Interjections.
Mr. Speaker: Members. Members.
Interjections.
Mr. Speaker: Members, we shall hear the response.
Hon. D. Eby: Thank you, hon. Speaker.
In the first part of his speech in this closed boardroom to a
group who’d donated $30,000 to the previous government, the former
minister responsible for ICBC, after he requested a report about how to
reduce costs at ICBC, promised them that he would do a review about how
to increase the amounts paid to automobile repair shops.
In the second part of his speech, he talked about a repair
facility owned by ICBC worth literally millions of dollars. One of the
people in the crowd said, “You’re going to give it to us?” as a joke.
Everybody laughed, because it was funny.
Obviously, the minister wouldn’t give away a multi-million-dollar
building from an insurance corporation that was losing money. But in
fact, he was. The minister smiled and said: “I am pleased to announce I
have directed ICBC to transfer their training facility from their
ownership and control to the ownership and control of the ARA.” There
was an audible gasp in the room.
There should have been a gasp from ratepayers, but they didn’t
know about it, because there was no press release. There should have
been a gasp from the board, but the minister was out on his own. You
couldn’t legally do it, and he wasn’t able to follow through.
The opposition literally tried to give away ICBC property to lobby
groups. That is the incompetent management that our province saw to cost
$2 billion.
Interjections.
Mr. Speaker: Members. Members, please.
[2:10 p.m.]
A. Wilkinson: Let’s bring this back to reality. In Cranbrook, you meet two
people: a single mom whose daughter has a car worth $1,000, and her
insurance just went up to $5,300 a year; and another family whose kid’s
insurance for the car that the parents bought for him went from $2,000
to $7,300. That lies squarely in the lap of this incompetent Attorney
General, who has failed the motorists of British Columbia, and he hasn’t
got any answers except to throw out these historical insults.
Premier, when are you going to find a competent Attorney General
who knows how to do anything in the courts and knows how to manage ICBC
more than throwing around insults?
Hon. D. Eby: I have so many stories to tell. I didn’t even finish the first
one. In the boardroom, in that very meeting, the former minister
responsible was introduced by saying he used to be a board member of
ICBC, which he did used to be. He leaned over to the person next to him
and said: “That was a dark period in my corporate board
experience.”
Well, it was a dark period for ICBC and for ratepayers as well. In
the two years the member was on the board, he gave away $1 million
in bonuses to just six executives at ICBC.
Interjections.
Hon. D. Eby: What have we done? We eliminated the bonuses. That’s action. They
didn’t do it. We did it.
Interjections.
Mr. Speaker: Members.
M. de Jong: The Attorney General embarked upon a scheme to limit the rights of
insured drivers in British Columbia, and he told us and he told them
that it would save $400 million. Just one problem. One teensy, small
problem. The whole thing was unconstitutional. Not my words. The words
of the court, at page 43: “unconstitutional and of no force or
effect.”
Besides being caught trying to violate the constitutional rights
of British Columbians, the Attorney and the government now have a $400
million problem.
There are only two ways to fix that problem. One is that the rates
for those families in Clearwater and Cranbrook are going up even
further, or the second is that the Finance Minister has a $400 million
problem in her budget. Which is it?
Hon. D. Eby: Gosh, I wonder how we got here. If only there was some way to
know.
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: If only there had been some way to predict.
Interjections.
Mr. Speaker: Members. Members, if we may improve the decorum.
I was thinking this morning, pinching myself, how lucky we are to
be here. Of course, the decorum was wonderful. Perhaps we could go at
least a few days without behaving badly.
Hon. D. Eby: In 2014, the B.C. government knew that ICBC was in trouble. They
commissioned a report to advise them how to fix the problem. The report
was released in 2015. Something was missing. Seven pages were missing
from the report. Now, when we asked, “Will the opposition release those
seven pages?” the member who just asked me this question said: “There
are cabinet confidences that need to be respected, unless Mr. Eby’s view
as Attorney General now is that all cabinet documents are open season.
That is interesting….”
Interjections.
Mr. Speaker: Members. If the Attorney General may….
Hon. D. Eby: This is upsetting him, and I understand why. It’s
upsetting.
Interjections.
Mr. Speaker: Members, I’m concerned that we’re gobbling up question period
time.
Hon. D. Eby: It is upsetting. I want one of those magnets for the back of my
car, because I’m upset.
The quote continues: “That is interesting, because he took an oath
to the contrary. If Mr. Eby wants to look at a document and respect
those confidences, I don’t have any problem with that.”
[2:15 p.m.]
I could look at the seven pages he cut out, but I couldn’t tell
anybody what they said. Do you know what they said? They said: “ICBC is
in trouble. You need to fix the system. If you don’t, you’re going to be
losing a lot of money.”
Guess what happened after he buried that report. We lost $2.3
billion because of his decision.
Interjections.
Mr. Speaker: Members.
M. de Jong: Well, there’s a remarkable performance. The Attorney stands up and
purports to criticize the very principles he’s spending taxpayers’ money
arguing in favour of at the Supreme Court of Canada.
You know what people are actually beginning to notice? Every time
this Attorney General steps onto the judicial ice, the other team
scores. And they’ve noticed this. He’s full of bravado in the pre-game
interviews, but he’s got the worst plus-minus record in the entire
league.
The rules he sought to impose were his alone. He deliberately
didn’t involve the rules committee that for decades has been utilized by
Attorneys General to ensure that this can be done constitutionally. Now
he’s got a $400 million problem.
I predict that when he stands up in a moment, he won’t answer the
question that British Columbians need to hear an answer to, and that is
this: are drivers going to be paying more, or is the budget going to
slip into deficit, or a combination of both? Which is it?
Hon. D. Eby: Try to imagine the situation faced by the member for Abbotsford
West before the election. ICBC is hemorrhaging money. You don’t want to
make it an election issue. So what do you do? You claim the sale of the
ICBC headquarters that hasn’t even been listed for sale yet. You claim
the sale of ICBC.com, the URL, for $10 million. You claim the savings
for a report you haven’t even received yet in order to hide the fact
that ICBC is in trouble. A massive enterprise, a huge amount of work, to
hide the problem from the electorate.
Now the member stands up and says: “Hey, the step you took wasn’t
good enough.” Well, I’ll tell you this: it was a hell of a lot more than
they did.
FOREST MANAGEMENT
AND CLIMATE CHANGE
MITIGATION
A. Olsen: Yesterday my colleague drew the connection between the climate
risks facing our community and the management of our forests, but the
climate risks also could have huge impacts on the forests across the
province. According to the climate risk assessment quietly released by
government, climate change could negatively affect forest growth rates,
increase forest mortality and change forest composition. Climate-induced
drought could increase forest die-off and make trees more vulnerable to
wildfire and pest outbreaks.
These changes are happening now. My daughter Ella is growing up in
a world where summer means fire. The skies above our house have been
blanketed by smoke for half of the summers of her life. Luckily, we got
a break this year, but who knows what next year will bring? The risks
facing our forest sector are going to be exacerbated as we move
forward.
My question is to the Minister of Forests, Lands, Natural Resource
Operations and Rural Development. How are we ensuring that
forest-dependent communities will be able to have a resource they can
rely on in future decades as the impacts of climate change take
hold?
Hon. D. Donaldson: I thank the member for his well-thought-out and presented
question.
Interjections.
Mr. Speaker: Members.
[2:20 p.m.]
Hon. D. Donaldson: When it comes to fighting climate change, our government takes our
responsibility very seriously. Unlike some members on the other side,
our government and our colleagues in the Green caucus know the science
is clear and we need real action now.
As far as the Preliminary Strategic Climate Risk
Assessment , which was a report that is mandated in our CleanBC
plan that we worked on with the Green caucus, there are a number of
factors pointed out around forestry and around the need for innovation
in forestry when it comes to the forests and the future. The member is
correct to point out the incredible fires that we’ve had in 2017 and
2018 as a result of forests drying out and a change in
climate.
Innovation in practice. One example that we’ve had, and we’ve had
many, is prescribed burning. We’re allotting $10 million a year for the
next three years to use traditional Indigenous knowledge and create
prescribed burns to lower the fuel load and therefore lower the amount
of greenhouse gases that are emitted into the atmosphere from unplanned
fires.
We have innovation in management. The member asked around
innovation in management. We have a seed tree program where we’re
growing trees that are going to be better adapted to the climate change
characteristics in the future.
And we have innovation in technology. We’ve been working on an app
in the field, a biomass utilization app that will assess biomass volumes
and potential greenhouse gas emission benefits in real time. That’s been
supported…
Mr. Speaker: Thank you, Minister.
Hon. D. Donaldson: …by Canada under the transformative technologies
agreement.
They don’t seem to want to know about innovation in forestry, and
I can understand that, because they ignored forestry for 16
years.
We’ll keep working hard to support innovation in our forest
sector.
Mr. Speaker: The member for Saanich North and the Islands on a
supplemental.
FOREST INDUSTRY AND
VALUE-ADDED
PRODUCTS
A. Olsen: I thank the minister for the answer to the question and the answer
to the supplemental, and maybe the supplemental for next week as
well.
We need to transform our approach to forestry in this province,
especially as we confront the massive challenge of climate change. We
must be better stewards, and we must start managing for value instead of
volume. This is the only way to create resilient local communities and
dependable jobs. We could produce everything from wood fibre insulation,
mass timber or a range of products to replace single-use plastics.
Instead of leading this change, B.C. is exporting raw logs. We continue
to lose forestry jobs, and we are a net importer of engineered wood
products.
Sweden is an example of how things could be different. Despite
having a similarly sized harvesting land base, Sweden’s forestry
industry employs almost twice as many people as B.C.’s. The difference?
They manage their forests for value and on the basis of
science.
My question is to the minister. Forestry-dependent communities are
hurting across this province. Now is the time for transformative change
of our forest management in B.C., not just for band-aids or for changes
around the outside. What specific actions has he taken to spur the
innovation in this industry so that we add value, maximize local jobs
and responsibly manage our forests?
Hon. D. Donaldson: I apologize for the length of my answers. It’s just that I’m so
passionate about the future of forestry in this province. I couldn’t
agree with the member more about maximizing value of the logs that come
out of our forests versus maximizing volume. Part of that is true. The
exponential growth of raw log exports under the previous government is
something that we’ve addressed directly under the coast forest sector
revitalization initiative.
Interjections.
Mr. Speaker: Members.
Hon. D. Donaldson: The member asked how we’re addressing getting more value out of
the forest. I can give him a very, very good example. Earlier this year
the Premier announced that we in B.C. have become the first province in
Canada, as an early adopter of 12-storey building regulations around
building 12-storey buildings out of wood. First in Canada. That will end
up…. That’s directly in regards to building taller buildings out of
engineered wood products.
[2:25 p.m.]
That adds value to the value chain. That creates more jobs in the
forests and more jobs in the factories and makes more stable rural
communities.
AUTOMOBILE INSURANCE RATES
J. Johal: In Surrey, the Morris family is facing an extra $770 a year on
their ICBC bill. Their insurance rates have gone up, not because of an
accident but because they have a young driver in their family. Changes
by the minister mean families like the Morrises are now paying wildly
higher rates. As Aidan Morris says: “As someone my age who is trying to
build towards their future, it certainly doesn’t make things any
easier.”
Can the minister tell British Columbians when they can expect
significant cuts in ICBC rates?
Hon. D. Eby: I understand that the member may not have been here, but a whole
bunch of people he’s sitting nearby were there when they lit the
dumpster fire at ICBC. Let me tell the member, to pass on to the folks
that he’s talking to about ICBC, how we got here.
You heard about the MLA for Abbotsford West cutting out the pages
of the report.
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: When the member from South Kamloops, who had been the minister
responsible, was asked about it, he said: “I don’t recall ever having a
draft report brought to me. Certainly, I don’t have any understanding of
anything being removed.” But then….
Here’s somebody the Leader of the Opposition knows: Paul Taylor.
He’s the former chair of ICBC, chief of staff to Gordon Campbell. He had
something to say about management at ICBC while he was chair. “That just
doesn’t ring true to me. Frankly, I quit as chair because of….” He uses
his name — the MLA for Kamloops–South Thompson.
“I quit as chair because of the MLA for Kamloops–South Thompson.
This whole stuff about him trying to point the blame for problems at the
corporation for a report that his own department commissioned and,
knowing him, would have been on his desk and he wouldn’t have liked some
of the stuff in that and asked that it be changed. That’s exactly the
kind of stuff I saw when I decided to resign. I found him that kind of
guy.” Yikes.
That’s why rates are high. That’s why we’re working hard to bring
them down.
Interjections.
Mr. Speaker: Members.
J. Johal: The minister can say what he wishes, but I want to remind him that
the Morris family saw a 159 percent increase in insurance premiums under
his watch. The party on this side of the House has always been to keep
rates low. Under his watch, ICBC premiums have gone up by 18 percent,
and ICBC projects a 24 percent increase in premiums over the next three
years. That’s $1.7 billion extra British Columbians will be paying
because of this minister.
On behalf of young people and their parents, when will this
government stop gouging B.C. motorists and bring back affordable
rates?
Hon. D. Eby: The member wonders how we got here.
The Leader of the Opposition is on CKNW. As has become his habit,
he had a bit of a flight of fancy. He said: “I was not aware of this
problem in 2016 as the claims rate went up.” Yet the member from
Kamloops South says, “Last time I checked, you and a few others…were
sitting with us at the cabinet table as we made decisions,” about
ICBC.
I think that the most important piece…. How did we get in this
situation? It’s clear.
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: But amazingly, after creating such a mess…
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: …the members on the other side are advocating for a system
that would increase rates dramatically for drivers.
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: The Insurance Bureau of Canada issued a report that told British
Columbians very clearly what the impact of privatization would
be…
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: …in this province — a 37 percent increase in basic insurance for
those under 20 years old, a 24 percent increase in basic insurance for
those from 20 to 24 years old, an 18 percent increase in basic insurance
for those 25 to 34 years old. That’s the privatization model that
they’re out there advocating, a report by private insurers about
what….
Interjections.
[2:30 p.m.]
Mr. Speaker: Members.
Hon. D. Eby: A report issued by the very private insurers themselves that these
guys want to bring into British Columbia.
J. Thornthwaite: Linda is from North Vancouver, and she’s absolutely livid over
this minister’s changes to the ICBC rates. I have her invoices right
here. Last year it was $1,926; this year it’s $2,285. The only reason is
because she has someone under 25 that’s in her household. It has nothing
to do with her driver’s record.
My question to the minister is: when are you going to help
families, the thousands of families that are writing you and writing us,
that are worried about their ICBC rates for their families?
Hon. D. Eby: I wish there was more time in question period, because I could go
on and on about the changes our government has made to get costs under
control at ICBC. We inherited a corporation hemorrhaging $1 billion a
year from the previous administration.
Our last quarterly report was….
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: We’ve managed to increase benefits at the same time as getting
costs under control at ICBC. Let me tell you. We’ve reduced….
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: We’ve reduced earners of $100,000 plus by 16 percent. We’ve
reduced earners of $150,000 plus, at the corporation, by 38 percent.
We’ve reduced earners of $200,000 plus by 34 percent. We’ve reduced
earners, at ICBC, of $300,000 plus by 33 percent, than when the other
side was in power.
Here they are advocating for a private insurance system that would
increase rates on that young driver the member talked about by $900 on
basic insurance alone, according to the private insurers’ own numbers.
If they are so enamoured with the private insurance industry, then let
me read to them what the private insurers think about the rate reform:
“The government also recently….”
Interjections.
Mr. Speaker: Members.
Hon. D. Eby: These are the members’ friends in the private insurance industry.
These changes are long overdue, and pricing auto insurance based on
driver risk is an effective way to incent better behaviour on our
roads.
[End of question period.]
Motions Without Notice
MEMBERSHIP CHANGE TO AUDITOR
GENERAL APPOINTMENT
COMMITTEE
Hon. M. Farnworth: By leave, I move:
[That Dr. Andrew Weaver , MLA be appointed as a Member of
the Special Committee to Appoint an Auditor General, replacing Adam
Olsen , MLA.]
Leave granted.
Motion approved.
Orders of the Day
Hon. M. Farnworth: In this chamber, I call Committee of the Whole on Bill 36, Gaming Control
Amendment Act, continued.
[2:35 p.m.]
Committee of the Whole House
BILL 36 — GAMING CONTROL
AMENDMENT
ACT, 2019
(continued)
The House in Committee of the Whole (Section
B) on Bill 36; R. Chouhan
in the chair.
The committee met at 2:37 p.m.
section 2 (continued) .
M. Lee: I wanted to come back to a question that was raised in comments on
the arrangement on an interim basis, just to understand the comment that
the Attorney General made near the end of the last period of time we
were dealing with this as a committee. It was around what would be a
permitted expenditure by First Nations on those arrangements.
I was understanding that when looking at the recitals of the
interim agreement and other sections of the agreement, there is
contemplation of five or six core areas in which First Nations are
expected to be spending the share of revenue that they’ll be receiving
from the government. If I can confirm with the Attorney General that
that is the case, and if so, what are those areas, for the
record?
Hon. D. Eby: Eligible B.C. First Nations will determine their own priorities
for these funds, which may be spent within six categories of approved
purposes, which were set by them: health and wellness; infrastructure,
safety, transportation and housing; economic and business development;
education, language, culture and training; community development and
environmental protection; and capacity building, fiscal management and
governance. Direct distributions to individuals are not
permitted.
I think that fully responds to the member’s question.
M. Lee: I appreciate that there has been a level of engagement or
discussion around the core areas for which expenditures ought to be
provided. When a First Nation is receiving funds, can those funds be
expended on any purpose other than the ones that the Attorney General
has mentioned?
Hon. D. Eby: I understand that the nation could invest the money, but
ultimately, it would have to be spent on one of the six categories that
I listed.
[2:40 p.m.]
M. Lee: I wanted to ask about the term…. The member for Skeena — this is
one of the questions that he wanted to raise, which is clarity around
the definition of “provincial territorial organizations” on page 9 of
the interim agreement. The use of the word “territorial” is intended to
denote what?
Hon. D. Eby: Provincial territorial organizations are the First Nations Summit,
the B.C. Assembly of First Nations and the Union of B.C. Indian Chiefs,
which collectively make up the leadership council. As for the word
“territorial,” it has its usual meaning, that I understand.
M. Lee: I just wanted to ask, to reconfirm the type of reporting that is
required under the interim agreement. If the Attorney General could
outline, on an annual basis, what the First Nations are expected to be
doing in order to comply with their obligations under this
arrangement.
Hon. D. Eby: The limited partners provide their audited reports to the
partnership, and then the partnership aggregates the reports and
provides an aggregated report to the province about how the money is
being spent and what impact it has had on communities.
M. Lee: With these audited statements that are being provided, how do they
fit with other existing audit requirements — say, required by the
federal government?
Hon. D. Eby: I’m advised that we don’t have sufficient information about the
federal requirements. But from what we know of the federal requirements,
there’s not intended to be overlap or that somehow one system would feed
into the other, necessarily. The auditing function is about ensuring
that the money that’s provided is used for the project as stated and not
for other purposes.
M. Lee: Just in terms of the general partner, what are the requirements on
reporting on the use of funds, apart from the audited statements, that
is needed to be provided by each of the First Nations?
Hon. D. Eby: The current requirements, as we understand them, are that within
90 days following the end of a fiscal year, the general partner will
receive audited financial statements from the limited partner, which are
going to show the receipt of the distribution from the partnership
itself and then how the limited partners spent that money. The report
will be of all the amounts expended on permitted expenses. It’s sort of
a straightforward grant report, I guess, if any of you have had exposure
to the non-profit world, and that report is going from the limited
partner up to the partnership.
[2:45 p.m.]
M. Lee: I wanted to come back to a few aspects of what we were discussing
in the last committee session and ask the Attorney General: were First
Nations given the option of having the funds, the net annual gaming
revenue, flow directly to them other than through the
partnership?
Hon. D. Eby: Once a First Nation becomes a limited partner in the partnership,
there is an option for them to direct the partnership to instruct the
province to provide the funding directly to the nation. But they do have
to become a limited partner first. They’re still subject to all of the
reporting accountabilities that are in the partnership
agreement.
M. Lee: We did touch on this yesterday, in that regard. That would be,
presumably, for one individual First Nation to work through the
partnership arrangement in order to make that direction.
In terms of the review that’s contemplated down the road under the
long-term agreement, if the limited partners choose to alter the way,
the mechanism, in which funds are received…. We discussed yesterday in
committee that presumably that would be a material change to the
partnership agreement arrangement and would require approval by way of
an extraordinary resolution of all of the limited partners. Could I
confirm that that is the case?
Hon. D. Eby: The previous answer that I gave to the member was in relation to
an individual nation that might want to have its money flow directly
from government. They still have to become a member of the limited
partnership.
If the limited partners decided to dissolve the partnership and
have money be administered in a different way, then certainly, they’re
entitled to do that through special resolution. It would obviously be a
fairly significant step, given that the partnership is written into all
of the agreements as well as the legislation.
It’s possible, but it would be fairly substantial, compared to
just somebody saying: “I’d rather have my money come directly from the
provincial government.”
M. Lee: When we look at the Gaming Control Act itself and look at sources
of revenue and sharing of revenue from gaming in this province…. As a
point of reference, under the act that we’re currently considering an
amendment to under
part 6, “Grants to Eligible Organizations,” there is
contemplation, of course, about annual community gaming
grants.
Can I ask the Attorney General to confirm the current level of
another form of revenue-sharing that’s occurring in this province with
not-for-profit organizations and others in the arts or in sports or
other needs in the community? What is that level of funding that’s
currently being received by those organizations, in an aggregate
nature?
Hon. D. Eby: We’re getting the number for the member. We don’t have it
immediately at hand. It shouldn’t take long.
[2:50 p.m.]
M. Lee: I appreciate that. I appreciate the opportunity to confirm that
level.
To the Attorney General and his team there, it would be helpful….
My next question was going to be to look back in terms of for this
current budget year and, let’s say, the four previous years —
recognizing that there’s obviously been a previous government that is in
that range. I just wanted to see, to establish some steady-state
pattern, I expect, from that level of gaming, under either the previous
government or this current government. That would be my request for that
information that would facilitate this discussion.
Just as we look at
part 6, the way it is established, there is the
mechanism for which there is, under
section 41 of this act…. “Subject to
there being an appropriation under the Financial Administration Act,” on
application, “grants may be made to organizations that meet the
prescribed standards of eligibility.” Has there been any consideration,
in the context of revenue-sharing, to establishing a minimum committed
amount for community and gaming organizations, organizations that are of
need for these funds and rely on these funds on an annual
basis?
Many not-for-profits, including the ones that I’ve served as a
director of, look to that funding in order to fund their good
operations, including — I think I referenced this in my second reading
speech — an arts and education training organization that I used to be
on the board of that was able, with the help and the assistance of
community gaming funds from the province, to establish new programs for
after-school care, particularly for children who were vulnerable,
low-income people who don’t have access, families that don’t have access
to that kind of strength in arts and education training.
Organizations like that have the need to have the ability, at
least, on an annual basis, to apply for further funds based on their
track record and based on their need. Has there been any consideration
in this area looking at establishing a minimum commitment for a
proportion of gaming revenue to be set aside on an annual basis for
community gaming?
Hon. D. Eby: This legislation is not related at all to the community gaming
program. Government does have a fixed amount that it provides to
community organizations, which is independent of the particular
financial income of the B.C. Lottery Corp. As the member will know, when
we banned bulk cash transactions at casinos, there was a lot of concern:
if it affected B.C. Lottery Corp.’s revenues, would it impact gaming
grants? Government committed that no, we would be keeping a consistent
amount of money in the gaming grant system.
I’ll do my best to answer gaming grant–related questions, but this
is a totally different project program and a different stream of
government revenue, and so on.
M. Lee: I appreciate that it’s certainly a different
section of the act,
but we are talking about gaming revenue. Certainly, there’s been a
history in this province of community gaming grants being established.
As I understand it, in talking to a previous member of this Legislative
Assembly, back in the ’80s, under the Premier of the day, it was his
intention and desire to ensure that revenues that were being made
available from gaming were made available directly to communities and
that those revenues did not flow back through government through general
revenue.
We’ve since moved a great deal of distance there, but the
intention of ensuring that these funds are put to good use in
communities…. As we look at this arrangement, it’s important to consider
what has been a very important program of funding. That’s the reason why
I’m asking questions around this, and my colleague the member for
Cariboo North will join me shortly in further discussion around
that.
[2:55 p.m.]
Let me just pause there for one moment, because there’s some
information coming and also because the member for Kelowna–Lake Country
asked me to ask a point of clarification in response to the previous
answers around how a limited partner, as a First Nation, would have the
ability to withdraw from the limited partnership arrangement. If that
was the case as an individual First Nation, would there be any further
administrative or carrying charges or any other costs that the First
Nation who is withdrawing from the limited partnership would need to
pay?
Hon. D. Eby: Perhaps a point of clarification here. In order to be able to
direct your payment to come directly from the government, you need to
become a member of the limited partnership. That’s the structure that’s
been established around accountabilities, around reporting, and so on.
You’re still a member of the limited partnership. You’re just saying: “I
don’t want you to cut the cheque. I want the government to cut the
cheque.”
To my knowledge, there would be no extra cost to request a cheque
from the government, rather than to do what everybody else would
presumably do and receive their cheque from the limited
partnership.
M. Lee: Thank you for that response. This is an important consideration
for the member for Kelowna–Lake Country. He spoke yesterday about the
feedback he had from a Chief of a First Nation in his area of
representation. If I can, I’ll just pursue that a little more
here.
If we have a First Nation who withdraws or — as put correctly by
the Attorney General, just to clarify the language — directs the limited
partnership to provide the funds directly from government to the First
Nation, presumably, at some point, the general partner…. If there were a
number of First Nations that were doing that, there is going to be some
cost.
Yesterday we learned that the estimated budget of the general
partner is up to or less than 1 percent of the annual carry for the
fund. That’s been estimated at roughly $1 million or less. The Attorney
General stressed the less part. Who knows what that is? But let’s just
say for discussion purposes, it’s $1 million or so.
Presumably, with the 203 First Nations, if they all started
withdrawing or directing, what would be the role, first of all, for the
general partner? And assuming there is a role, presumably, there is
going to be — or is there? — some fee necessary by those First Nations
in order to continue to support the overall enterprise, given that that
First Nation is still a limited partner.
Again, I’m assuming in the case of a limited partner who directs
funds to go directly from government to the First Nation, not through
the limited partnership, that there’s still a role for the general
partner. So what is that role? Two, what fee would there be for the
performance of that role payable from that First Nation, who is making
that direction, to the general partner?
Hon. D. Eby: The limited partner is an incredibly important entity. It is the
democratic body that hears concerns, suggestions, feedback from all the
nations that are participating about various things: the categories for
which grants can be given; the reporting structures that are in place;
the decision about particular projects that may be close to the edge or,
for some reason — we can’t speculate why — might be
controversial.
That is the decision-making body for administration of this pool
of funds. It is an incredibly important structure, because it’s
Indigenous-led for Indigenous people. If a nation wanted to receive
their cheque directly from the government, they would still want to
participate in the limited partnership, because this is where decisions
are being made around the formula, around the areas where you can apply
for a grant and the reporting structures and the administration costs as
a whole.
[3:00 p.m.]
It’s hard to imagine a scenario where a nation would say: “We
don’t want to participate in the criteria-setting or the formula-setting
discussions. Go ahead and make those decisions for us.” It’s possible,
but they at least have the option as limited partners to participate in
that. That’s the nature of the body. It’s not solely a cheque-cutting
facility.
M. Lee: For the member for Kelowna–Lake Country, what I’m hearing the
Attorney General respond would suggest that even though a First Nation
has the ability to direct the limited partnership to receive the funding
flow directly from government, as opposed to through the limited
partnership, that limited partner is still a limited partner and, as
such, would still be subject to the fees and expenses that are
chargeable. The question, then, is how a deduction would be
made.
Let me ask that. How is the deduction going to be made from what
the First Nation would receive, in respect of the general partner’s
expenses?
Hon. D. Eby: I don’t know…. There might be some sort of misunderstanding, but
maybe not, about how this is going to work. The money is going to flow
from government to the limited partnership. Limited partners, by right,
will participate in that according to the formula that is set by the
limited partnership through the partnership agreement.
It’s going to be net of any administration costs of that — the
money that’s distributed according to the formula. So there are no
deductions. I don’t know. The potential, I guess, is that the
partnership would do the calculation and say that nation X is entitled
to Y amount of money and let government know, and then government would
distribute that money directly to the nation according to the formula
and their entitlement.
There’s no application for a particular project and then getting
approved. There are no deductions. It’s just an entitlement to a fixed
amount of money that comes through the partnership according to the
formula, net of any administrative costs.
M. Lee: Just as a point of clarification, then, how does the money, as a
different option…? I’m hearing the Attorney General describe it as it
coming from government to the limited partnership, and the net amount is
going out to First Nations, which is part of the structure. So if we’re
talking about the alternative, is that still a net amount?
Hon. D. Eby: It always drove me crazy in opposition when the government side
tried to do this, but I’m going to try anyway — try to get at what the
member is really asking me about. Is there a way to deliver this money
with less administration costs and ensure that more money goes to the
bands or the nations?
[3:05 p.m.]
The answer is no. There is no way to deliver this money without
administration costs. There need to be reports about how the money was
spent. Someone needs to receive those reports, compile them and report
out to the public about how the money is spent. Someone needs to set the
criteria, evaluate the criteria, receive feedback from nations about
whether the formula is working properly, adjust the formula if necessary
and adjust the categories if necessary to ensure that the program is
working properly. There is no world where there are no administrative
expenses.
Then the question is: if there are inevitably going to be
administration expenses, who is best placed to administer this program?
Is it the government, or is it the nations for themselves? The position
of government is that the best group to administer this program for the
nations are the nations themselves through the structure that they have
established, which is the limited partnership.
I hope that broader perspective addresses the member’s questions.
There will be administrative costs regardless of whether a nation that’s
a limited partner asks for it to be distributed directly from government
or distributed from the limited partnership. The reason for that is that
all of the work I just outlined still has to get done by somebody, and
we believe it’s best done by Indigenous people for Indigenous
people.
M. Lee: Well, I appreciate that response. I believe that provides the
clarification that my colleague, the member for Kelowna–Lake Country,
was asking for. I appreciate that.
Can I ask, just from a process point of view, if the information
has been received in terms of community gaming?
Hon. D. Eby: In 2015-16, it was $134.8 million; in 2016-17, $134.8 million. In
’17-18, the incoming government increased that amount, so it was
$139.7 million — rounded up, $139.8 million. Then in ’18-19, it was
$139.8 million.
M. Lee: Thank you for that confirmation. I appreciate the opportunity to
have that historical information shared here.
Just one question related to that. I presume that, in terms of as
a proportion of total gaming revenue, that percentage — this
contribution amount — ranging between $134 million and $139 million over
the last four fiscal years, has been a consistent percentage of annual
gaming revenue. If that’s the case, what is that rough
percentage?
Hon. D. Eby: I don’t believe that any government has run this as a fixed
percentage of gaming revenue as the First Nations program is proposed to
run. I understand the gaming program was a fixed amount, and the
government has generally provided fixed amounts through the gaming
program.
Again, this program lies in the Ministry of Municipal Affairs and
Housing. We’ll do our best to answer the member, but I hope he’ll have
some understanding if I have to stand up and correct myself. It’s my
understanding that these were closer to fixed numbers. There wasn’t a
formula percentage of gaming revenue.
C. Oakes: Thank you for the opportunity.
If you review the actual 2019 community gaming grant guidelines,
is it not true, because it had certainly been identified in the
guideline, that, in fact, the Attorney General is responsible for the
integrity of the community gaming grants program?
Hon. D. Eby: Certainly, the Attorney General has a role to play around the
integrity of any government program if there are allegations of fraud or
corruption. Policy-wise, though, the program lives in the Ministry of
Municipal Affairs and Housing.
[3:10 p.m.]
C. Oakes: I certainly understand that, but again, if you look at the policy
applications on the community gaming grant side, the Attorney General is
still responsible for the integrity of the community gaming grants
program.
Hon. D. Eby: I think I agreed with that. Also, a staff member here indicated
that there is a member in the Ministry of Attorney General that collects
the audits in relation to this program.
C. Oakes: I think it’s really important. Again, it was a historic day today,
and one of the things that really stood out to me was when Grand Chief
Ed John talked about the importance of asking questions. I think that’s
a legitimate comment that all of us should take — that we represent
constituents in our ridings. They put forward questions that they
request of us, as their elected officials, to come and to bring forward
to the House.
I have to make a comment in response to the member from Saanich,
Gulf and the Islands — quite frankly, were egregious and inflammatory….
The idea that when we bring questions forward from constituents, from
Indigenous populations in our communities, if by chance the comments
that we make do not deserve the adequate respect of every member in this
House….
I want to put on record that some of the comments that have been
made about us asking questions that our constituents have asked to bring
forward…. To be dismissed and to have comments that were very
unparliamentary is just, quite frankly, on behalf of my constituents,
not acceptable.
When my constituents raise questions and concerns — and I talked
briefly about this on Bill 36 — it comes from a place of concern. It
comes from a place that we as a community…. We’ve heard discussions
about what has been happening in the Cariboo — the impacts of the
wildfires, the impacts of a downturn in the economy, the forestry
crisis. Our communities are struggling.
We count on support. We count on programs that have been put in
place by government to ensure that there is adequate expected support
for our constituents. So when the First Nations and I go home, and they
talk about what it means that the government has delayed the rural
dividend program — the program where they were expecting those funds to
go forward…. It is, rightfully, a concern that they’ve asked me to
raise. When they’ve asked me to come forward in this House and raise the
fact that, on the formula, the idea of population-based formulas are a
concern under Bill 36, it shouldn’t be dismissed.
It shouldn’t be as if…. We are asking questions about concerns of
our constituents. We are no less engaged with listening to, advocating
for and fighting, quite frankly, for our constituents.
While the minister can look at the ceiling, which looks like it
must be quite fascinating….
Interjection.
C. Oakes: Well, that’s fantastic.
The Chair: Members, let’s keep it….
Interjections.
C. Oakes: The formula on the bill. It’s not about….
Interjections.
C. Oakes: To the members, we are talking about Bill 36.
The Chair: No, no. The member has the right to ask questions.
The Attorney was not looking at anything else, Member, just
looking at the students. Carry on.
C. Oakes: Okay. I’m glad that we have students here. I know that these
students would want to recognize the fact that we, as MLAs, represent
constituents in our communities and that our responsibility is to bring
their voices forward in this House.
On behalf of my constituents, there is concern around the
population-based nature of the formula. There are also concerns…. Around
the population-based formula, can the minister confirm that for
communities that are small of population, we will get our fair
share?
[3:15 p.m.]
Hon. D. Eby: I appreciate the member standing up and asking questions on behalf
of the First Nations in her community. I hope that she’s reaching out to
them and sharing the good news about the government sharing gaming
revenue with them, after so many decades of advocating for that to
change — B.C. being the only province that doesn’t share gaming revenue
with First Nations.
When she talks about her community being hard hit, we couldn’t
agree more on this side of the House. It’s a total crisis, and this
money will help. It will help First Nations in her community, which will
help the whole community. We’ve seen it in Ontario, where they’ve been
sharing gaming revenue for a long time through a partnership like this.
Economic development on First Nations reserves, traditionally very
impoverished reserves, has had a knock-on and positive effect in the
broader community as well.
Certainly, when we see an economic downturn or a crisis, like we
do in the forest sector, it is those on the economic fringes that are
particularly hurt as well. A lot of people are hurting right now. This
is money that’s coming into the community that’s going to make a very
positive difference, so we’re very excited about that. I hope the member
is sharing that good news with her constituents.
As for the formula, it’s set by First Nations for First Nations.
One of the things that is going to happen is that the initial
distribution is on three key factors. Factor 1 is just a straight-up
equal distribution among all 203 nations, not based on population or
geography or anything else, just a straight division. That’s 50 percent
of the revenue received by the partnership.
Then the second factor is population, and 40 percent will be
distributed according to population. Then the third factor is rural and
remote communities and Indigenous communities. There’s an extra 10
percent that will be used to top up those communities, because often
they’re very small communities, and there’s recognition of
that.
What’s going to happen is that there’s going to be the first year,
the first couple of years, of distributions. If the formula is not
working out the way that people intended, then the partnership will
revisit it. The history of First Nations in B.C. is one of larger
nations standing up on behalf of smaller nations. I have no reason to
believe that that would change here in terms of supporting them and
ensuring that they’re not excluded from participation.
I look forward to this. I hope that it makes some difference in a
very hard-hit area, in association with all of the Minister of Forests,
Lands and Natural Resource Operations’ $69 million fund for forest
workers, that the member can reassure her constituents that government
is doing what we can in a very difficult time.
C. Oakes: Could the minister clarify? I’m certainly aware of applications
that have gone in through the community gaming grant process by
Indigenous and First Nations organizations. The minister just shared
that we have not shared these funds. Community gaming grant applications
have been open, in fact, for cultural organizations and groups. Could he
maybe clarify that comment, as he is responsible for the integrity of
the community gaming grant program?
Hon. D. Eby: I will acknowledge that the previous government did not exclude
First Nations from applying for community gaming grants, if that’s what
the member is suggesting. What the previous government didn’t do was
something that every other province in Canada did, which is to have a
dedicated stream of revenue from gaming exclusively for First Nations,
which is what this is. It’s very significantly different.
I’m not sure if the member understands quite what we’re doing here
if she’s confused about that point, because the money is a dedicated
stream of revenue from a percentage of the earnings of government from
gaming distributed directly to First Nations through a limited
partnership controlled by First Nations. It is structurally completely
different from community gaming grants, which I will absolutely
acknowledge that any First Nation in B.C. could have potentially applied
to and did exist under the previous government.
C. Oakes: On page 9 of the new community gaming grant guide, and under
organizational eligibility, under 3.2…. I guess my question is, as the
Attorney General is responsible for the integrity of the
program….
[3:20 p.m.]
It now states that an organization is permanently ineligible for a
community grant if it “is a federal, provincial, regional, municipal,
First Nation or other local government.” So are First Nations now not
eligible for community gaming grant funds?
Hon. D. Eby: I appreciate the member clarifying that.
First Nations governments were never able to apply. Neither were
municipal governments, federal or provincial governments. It’s community
organizations. As the member said in her initial question, First Nations
cultural organizations, language organizations and sports teams
organizations could apply. But the First Nations government itself, the
band council, and so on, could not apply.
That’s not something new. That has always been the
case.
C. Oakes: I’ve just had a brief opportunity to review Bill 41, Declaration
on the Rights of Indigenous Peoples Act. Of course, in it are the
definitions that have been identified — critically important. Any time
we have
definitions in legislation, it does have an impact on all other
pieces of legislation that we have in this House.
The
interpretation of an Indigenous government body and Indigenous
peoples has the community gaming grant program…. What impact will Bill
41 now have on other pieces of legislation — for example, the community
gaming grant which the Attorney General has responsibility
for?
Hon. D. Eby: Well, the member had us all scrambling for a second. It’s only
been a few hours that Bill 41 has been introduced in the House — a proud
and historic day for government, introducing that bill.
It’s a wonderful question for committee stage on Bill 41 — not
particularly relevant to the distribution of gaming revenue to First
Nations that is in front of the committee right now.
C. Oakes: Where it is relevant is that it is a historic day. Any time
there’s something like this and there’s been significant change in the
legislation and we need to have that conversation, I think it is very
fitting — and Grand Chief Ed John said it so eloquently about the fact
that it’s important — that we do everything within our ability to make
sure we’re answering those questions so that if there are any concerns
that are coming from our communities, we’re respecting those, and we’re
taking every single opportunity to ensure that we’re not going to have
unintended consequences.
The community gaming grant program is incredibly important to our
communities. I really value what the Attorney General said about
recognizing the fact that our communities in the Cariboo have been
struggling. One of the eligibility factors currently within the
community gaming grant guideline is looking at the demonstrated need of
community members.
When I look at the fact that we have seen significant decline in
community gaming grant revenue…. The Quesnel Figure Skating Club
traditionally receives $28,000. This year they received nothing. When
the north Cariboo Métis society, their healthy relationships, which is
critically important…. Again, the North Cariboo Métis Association that
puts in for victim services…. We were not successful in getting those
funds.
Literacy Quesnel — critically important funding for our community
— impacts a lot of Indigenous First Nations and non-Indigenous in our
community. We’re seeing that the Lions Club has been reduced. The Rotary
club’s funds have been reduced. The Scouts have been reduced. The
Quesnel Women’s Resource Centre went from $122,000 down to
$80,500.
So women’s groups, First Nations groups, public safety groups,
sports groups and arts groups have all seen a decline in community
gaming grant funding into our community.
[3:25 p.m.]
There is significant fear that the changes that are being brought
forward could have even more impact on our communities that have been
significantly impacted.
I think it is fitting. The Attorney General said that he did not
have the ability in the last couple of hours to look at the
interpretation of UNDRIP and the impact that it’ll have on community
gaming grants.
I think it’s fitting, at this time, that we send that sense of
confidence back to all of our communities who count on community gaming
grants for our volunteer organizations, our sports groups, our public
safety organizations — all those volunteer groups that work so
diligently and so hard in our communities. They expect us to raise their
voices and their concerns, and they want to make sure that the community
gaming grant will be kept whole.
I think that is a rightful thing for us to say. So I move an
amendment that is on the order paper.
Section 2 by adding the underlined text as
shown:
Amount of net income available for community gaming
grants
14.7 Subject to the regulations and the
prescribed formula, a minimum percentage of the actual net income of
the lottery corporation for each fiscal year beginning on or after
April 1, 2020 shall be made available for community gaming grants in
accordance with
Part 6.
And by adding the following section:
2.1
Section 41 (1) is amended by striking out
“ Subject to there being an appropriation under the
Financial Administration Act ,
and ” and substituting “ Subject to
section 14.7, and ”. ]
I think it’s a fair amendment. Again, it just reaffirms that the
community gaming grant program will be available.
While I recognize that the minister has said, “Look, we are
committed to putting this money forward,” I think constituents across
British Columbia would have a lot more confidence in this new
environment, before they have the ability to look at what the
interpretation is of Bill 41, by confirming that community gaming grant
programs will be kept whole for all of our volunteer organizations
across British Columbia, because we know how much you are counting on
these funds.
Again, I put forward this amendment that has been on the order
paper in my name. I look forward to comments from the
minister.
Hon. D. Eby: I look forward to reading the member’s amendment. I haven’t seen
it. I can advise the member that there is absolutely no impact on
community gaming grants by this initiative. Community gaming grants…. We
did a little back-of-the-envelope calculation here. About 10 percent of
net revenue to government from the B.C. Lottery Corp. goes to community
gaming grants. This program — about 7 percent going directly to First
Nations in the province.
I’ve asked staff to have a look. As I’ve advised the members
repeatedly, gaming grants are in the Ministry of Municipal Affairs and
Housing. I’ll do my best to answer. The audit reports come back, but the
decisions around issuing grants are made by public servants in a
different ministry.
We’ll try to figure out what the changes, if any, have been in
gaming grants in the member’s constituency, because our government
actually increased gaming grants by $5 million on forming government.
There’s $5 million more available for community organizations in the
province than there was the year before, under the previous
administration, so it seems strange. But we will definitely….
I think the member will find that the intention of government is
to maintain what we understood to be the non-partisan distribution of
gaming grants to communities in need across the province — community
groups, and so on — and that tradition should be continuing. If she has
concerns that, for some reason, her community is not seeing good success
with the gaming grant applications, to make some time with the Minister
of Municipal Affairs and Housing — have a conversation, talk about those
groups, try to figure out what is going on and what the issues may
be.
The member should also know that government…. It was the same
issue when they were in government. I know, because many of the groups
that I worked for applied for gaming grants and didn’t get them. There’s
a fixed amount of funds and there’s far more need for the funds than
government has, so some applications will ultimately be declined. But
there are other sources of funds and there are other grants that
organizations can apply for, and government can assist with that kind of
thing.
[3:30 p.m.]
[J. Isaacs in the chair.]
I look forward to seeing the member’s proposed amendment. I don’t
fully have an understanding of it from her description, but I look
forward to reading it. But unless she’s been out consulting with First
Nations on this issue and has the support of the Leadership Council,
it’s going to be challenging.
She talks about the UNDRIP legislation that was introduced today.
One of the core principles is, of course, Indigenous people making
decisions for Indigenous people, and we have been working with
Indigenous groups for more than a year in developing this.
I’ll have a look at her amendment, but I’ll just caution her that
this context is a difficult one for an amendment that would structurally
change the program.
C. Oakes: I sincerely want to thank the Attorney General for recognizing our
communities and for an openness to look at what is happening.
I guess I raise this because I’ve certainly heard that…. And I
want to thank staff. I worked closely, as the minister, with the gaming
division, and I really want to thank them. I know that the work that’s
done is done in a thoughtful, sincere way, and I truly want to say thank
you. I am just trying to understand how I can better support my
constituents with some applications. Quite frankly, we’ve never seen
this level of reduction before, and we just want to get some
answers.
I also appreciate some of these programs…. Of course, again, I
have that file, and there is a large level of…. You know, everything
sometimes tends to be oversubscribed. I had the opportunity to meet with
the Minister of Public Safety on the victim services program. When
communities are in crisis and you lose a significant program that is
designed to help victims at a really, really difficult time, and a
significant portion of the folks are Indigenous…. I have those concerns.
And if we’ve looked at every funding option and we’re still not having
success, then it is our job to advocate.
Further to the Attorney General…. I appreciate his comments around
Bill 41. What I was talking about is
interpretations,
interpretations
that are created in legislation that identify in this act how we
interpret a body. A governing body can have application to other pieces
of legislation. I will say that in the pieces of legislation I’ve had
the privilege of bringing forward, I was certainly advised by incredibly
capable public servants that any type of
interpretation or change that
we make in legislation can have ramifications or can have changes in
other pieces of legislation.
I think what the amendment is about is saying we have a community
gaming grant program that, yes, is separate from what has been proposed
in Bill 36. But what constituents are asking of this minister is: can
you confirm that the community gaming grant funds, that the funds that
he has, in fact, stated will remain the same, that people will still
have access to community gaming grant funds, that we will, in fact, keep
as well — to create that certainty across British Columbia that
community gaming grants will not be impacted? That is the statement that
we are hoping, within this amendment, will be recognized by this
minister.
Hon. D. Eby: One of the repeated concerns that people brought forward to me in
community, following the government’s ban on bulk cash transactions at
casinos, following the revelations of large-scale transnational money
laundering happening in our casinos, was concern that this might impact
the revenue at casinos and, by extension, the revenue of the B.C.
Lottery Corp. and, by extension, community gaming grants, all
negatively.
I assured people, the Premier assured people across the province,
and the Minister for Municipal Affairs and Housing assured people across
the province that we would not be reducing community gaming grants. In
fact, our government increased community gaming grants by $5 million in
our first year.
We understand the importance of community gaming grants to
communities, to all of the cultural groups, the dance troupes, the
language groups, the services that are delivered to people, really, for
pennies on the dollar because so many of them are
volunteer-driven.
[3:35 p.m.]
We fully support the project, and I can assure the member that
there will be no impact on this that comes from further sharing of
gaming revenues directly with First Nations.
C. Oakes: Could you also confirm that funds will be regionally distributed
as well? Again, I’m trying to identify how come, in rural British
Columbia, we’ve seen such a reduction in organizations getting access to
community gaming grants. The question is: can the minister confirm…?
He’s just confirmed that there won’t be any reduction in the community
gaming grant program. Can he also confirm that rural British Columbians
will not see a negative impact — we don’t have the population; we talked
a little bit earlier about population formulas as it pertains to this
bill — and that there won’t be any reduction in rural British Columbia
on community gaming?
Hon. D. Eby: It’s a challenge to get the information the member needs, because
it’s not squarely on the bill that’s in front of the House. We’re doing
our best. I will endeavour to get her the distribution — how it’s
distributed geographically, whether population plays a factor. It’s
certainly based on applications. People have to apply for the money, but
I don’t know exactly how it’s distributed.
I don’t believe there has been any change to distribution plans or
policies, but again, I don’t know. So what I’d like to do is to get the
information for the member and share it with her as soon as I can, but I
don’t currently have it.
C. Oakes: I really do appreciate and look forward to getting access to that
information. Maybe part of the reason is…. And again, this is the
integrity piece that the Attorney General is responsible for.
I know, for example, that on the sports side, March 1 to May 31 is
when the applications went in. All organizations, by policy, were to be
told by August 31, and the sporting groups are still waiting. I don’t
know if perhaps that’s a piece of a policy change or something from an
audit perspective, but we’re wondering why there are such significant
delays. There were also delays in the arts and cultural funding
announcements that were supposed to go out on July 31. I think this year
it went out in September.
So if that information could also be accessed — why there are such
significant delays in organizations that have applied for community
gaming grants, why they have not yet heard.
Hon. D. Eby: I’m afraid I just don’t have that information for the
member.
C. Oakes: Would the Attorney General also be willing, though, to provide
that information in the other information he is accessing?
Hon. D. Eby: Absolutely, I will. But in the interest of red-tape reduction, I
might suggest that the member go directly, as well, to the Minister of
Municipal Affairs and Housing, or ask her staff to reach out to the
minister’s staff. It sounds like she has a number of questions about the
program. Because, essentially, what I’m doing is getting the information
from the Minister of Municipal Affairs and Housing and then passing it
through to the member. So if she has additional questions, if she wants
to get into detail, I’m sure that staff would be glad to arrange
it.
M. Lee: Well, I’d like to join the member for Cariboo North in supporting
her amendment to this bill. This amendment to the Gaming Control Act
would propose a new section….
The Chair: Yes, and Member, you’re speaking on the amendment.
[3:40 p.m.]
M. Lee: I am, to 14.7. The amendment has been moved, so now I’m speaking
in favour of the amendment.
When we look at revenue-sharing of gaming revenue…. I mentioned
earlier that in the 1980s under a previous Premier, Bill Bennett, there
was a real recognition of the importance of gaming revenue to
communities and that those gaming revenues ought to be shared with arts
and cultural organizations, sports and other social infrastructure in
our communities around the province directly and not at the behest of
government through general revenue.
The Attorney General just mentioned more recent history. But when
we talk about history in this House, I think it’s important that we all
understand the history. In the 1990s, there were issues around gaming
revenues with the previous NDP government — Bingogate, as it was known —
concerns about the funneling of money through various charities and
kickbacks. Criminal charges were laid.
This is when, of course, we talk about ensuring integrity in the
way that gaming revenue is provided to community organizations in this
province — that there’s a level of stability. I appreciate when the
Attorney General says that we have to have confidence in how gaming
revenues are shared. Absolutely. That’s the purpose of this
amendment.
This amendment ensures what has been confirmed at this committee
level. There’s been a stable level of funding available to the community
gaming program. That’s been at the 10 percent level. It has ranged
between $134 million to $139 million over the last four fiscal years.
And there will be no impact on that program by this other arrangement
with First Nations.
We are just trying to ensure that, through this amendment, we’re
saying to communities around this province that that important community
gaming program will continue, with a minimum percentage commitment from
our government. Again, for the reasons that the member for Cariboo North
indicated at length, both in her second reading speech and just now at
committee stage, there is tremendous need, and there is tremendous
concern as a result.
Communities that are not just rural parts of our province but
other parts of our province really depend on the ability to access
gaming funds to support their organizations. We know, with the economic
pressures — the increased taxes, the uncertainty in the forestry
industry and other industries resource-wise and others in this province
— that there is downward pressure. There is downward pressure on
giving.
Individuals who want to support our community organizations and
our communities for good intention have less disposable income to do
that. The trend lines are coming down on that. So we need to ensure, as
a government, that we continue to support these organizations, the
not-for-profit organizations that have to fill in the gaps.
I certainly believe that government can’t do everything. We need
community organizations that can respond to local needs. They’re best
situated to do that. Government has a part to support that. We can’t do
it on our own. We need that partnership. That’s why, through the
community gaming grant program, it’s been a vital program of
funding.
I believe, with other colleagues on this side of the House, that
there’s a great need to ensure that we demonstrate that level of
commitment to community organizations all over this province by setting
a minimum percentage of the same term — the actual net income of the
Lottery Corp. on an annual basis. This amendment would propose that that
would be set by regulation and the reg-making power under subsection
41(1) of the act and that we begin with that minimum commitment in the
upcoming financial year of government, recognizing that, under the
interim agreement, the revenue-sharing as a commitment to First Nations
has already been underway.
[3:45 p.m.]
The two streams can run side by side — 7 percent, in the first
case, for First Nations and a minimum percentage to be set and confirmed
under this amendment. For discussion purposes, we’ve been talking about
it at the 10 percent level. That would be the expectation, if not
more.
We need to ensure, with the changes in the program and what
members on this side of the House are seeing in their communities….
There seems to be some difficulty in some of the organizations that have
been depending on that funding, as the member for Cariboo North has been
describing. There seems to be some change here.
Now, I appreciate the Attorney General has indicated that the
Minister of Municipal Affairs and Housing will provide that information
through her team, but it’s in that context that we want to ensure that
we have that level of clarity and transparency and commitment. That’s
why we’re proposing this amendment. Certainly, I’m supportive of this
amendment, and I hope that all members of this House will consider this
amendment in that spirit.
Point of Order
Hon. D. Eby: I’m glad to hear the member’s comments. I think, really, any
government would approach reducing gaming grant money extremely carefully.
The impact of these grants, although small, is very significant for many,
many, many community groups all across the province. That’s why our
government increased gaming grants by $5 million a year.
I note that simply because I can’t help but wonder if this proposed
amendment is out of order on a couple of fronts. One is that it’s not
related to the bill in front of the House, and the other is that it purports
to put a financial obligation onto government. So I would ask for a decision
from the Clerk on whether or not this amendment is in order.
I mean, that’s assuming that the members want to go ahead with it, in
light of repeated assurances that the gaming grants not only haven’t
decreased under our government but have actually increased, even though
we’ve written down $30 million a year at B.C. Lottery Corp. because they’re
no longer taking bulk cash transactions from people involved in money
laundering.
M. Lee: If I may, just for consideration by the Clerk and others here, this
amendment that is being proposed has been on the order paper, given notice
to all members of this House. By way of discussion, we have confirmed at
this committee level that this would not be a new financial obligation to
government. In fact, as confirmed by the Attorney General, it’s been an
existing, repeated, stable, steady level of commitment.
We are also not specifying what that number is. We’re only saying, in
concept, that the government, through this act, should set a minimum
percentage, and that percentage would be determined by regulation. That
regulation, of course, will confirm what level of funding has been made
available by government on a consistent basis and clearly has been done so
in this current budget year as well.
S. Chandra Herbert: I’d be interested in a ruling, but I’m happy to speak while you
confer, to give you the time to see if there is a ruling on whether or not
the amendment is in order.
I guess I rise to speak because it’s interesting. There seems to be an
attempt…. I think the member for Vancouver-Langara said: “There seems to be
some change here.” I think the member for Cariboo North talked about
something that has happened that has meant that non-profits in her riding
haven’t got gaming grants, as if the government, through some secret
backdoor move, has deleted funds, when the actual fact is that $5 million
has been increased in gaming grants.
I rise to speak to this because the only time we’ve seen some change
to gaming grants in British Columbia, the kind of change that those members
are trying to suggest we are doing, which is completely wrong, is when they
were in government.
I was new to this House in 2009, 2010. The government of the day found
that they had told the public they would have a balanced budget. They
didn’t, so then they went and raided charities to patch the hole that
existed in the budget. This amendment seems to suggest that that’s what’s
going on today, and that’s not what’s going on today.
[3:50 p.m.]
Their government was so vicious, in the sense that they even took
money from charities that had multi-year contracts with government and that
had already spent the money. There were charities that had spent the money
to put on performances, to support youth, to do those kinds of
things.
They were required by government rules to have a big logo of the
province of B.C. They were required to thank the province of B.C. for the
money. They put the money. They paid their artists. They paid their staff.
Then they were told by government, by the former Liberal government, that,
no, actually the money that they’d been promised, the money that was to pay
the salaries of those people who’d already done the job, wasn’t coming,
that, in fact, the government was going to renege, break its commitment to
fund charities.
The only time that happened was under the B.C. Liberals. So for them
to suggest there’s some change going on here when, in fact, we’ve increased
the gaming budget by $5 million to go to charities and non-profits…. It
doesn’t add up. I could use stronger language, but I’m trying to be warm and
friendly, because today is a good day.
It was wrong. It hurt people. It caused non-profits to shut their
doors, to lose their ability to serve their communities. I know of arts
councils, for example, that were forced to fire all their staff because of
what the Liberal government did.
Gaming grants matter. The only time in our province where a government
didn’t think they mattered was when those people were on this side of the
floor. I remember the former Premier of the day saying there…. This is a
quote. He was on the radio. When asked why he was tearing up contracts with
non-profit charities, he said, “Well, there are commitments, and then there
are commitments,” seeming to suggest that a commitment to a charity was not
a real commitment by the government.
Now, thankfully, people rose up. They spoke out in opposition, and
they made it clear that gaming grants mattered. I think, in some small part,
that it led to the loss of that Premier, not to mention the HST and all the
rest. There was some small move under the next Premier to try and repair
some of the damage they’d done to non-profits by putting a bit of the money
back, but fundamentally, they didn’t do much else. I think they realized
that you can’t go after non-profits and charities in this way, and I’m glad
they realized that.
Our government recognizes that very strongly. That’s why we increased
the budget for gaming grants to communities. That’s why more people are
getting more money from gaming grants in this province today. But this
legislation, fundamentally, is not about non-profits and charities. It’s
about First Nations communities getting access to gaming grant funds that
they should have been getting a long time ago.
I’m not sure if this amendment is in order. I understand the spirit of
it, but I just find that the argument in support of it is false. There’s
been no reduction in gaming grants. There’s been no move to limit them going
to charities. There has been no sum change here, as the member obliquely
referred to. In fact, the opposite — the only change here has been the
gaming grants going up, more money going out to communities and a stronger
commitment to gaming grants in this province than we saw under the former
government.
C. Oakes: I’ve sat in this House over the last few days, and people have
heckled. They’ve said I’ve…. The member for Powell River–Sunshine Coast
somehow alluded to the fact that I was lying. The member for Vancouver–West
End said that what I am saying is somehow false. I would like this
opportunity to read into Hansard the experiences of my
constituents, what is happening now, the actual numbers. It is not false. It
is happening in our communities, and it is wrong.
The member for Vancouver–West End talked about the Arts Council, so
let’s look at what the Quesnel arts council put in for. In 2018, they
received $11,500. This year, they received $6,000. I mentioned the Quesnel
Figure Skating Club. For years, they’ve received $28,000. This year, they
received nothing.
The Baker Creek Enhancement Society: last year, $44,000; this year,
nothing. And they’re important. Their job is around…. They do work on
wildfire mitigation and restoration and resilience. The Quesnel Women’s
Resource Centre: 2017, $122,000; under this NDP government, under this
community gaming grant program, it is now down to $80,500.
[3:55 p.m.]
How about the Scouts? Let’s see what the Scouts group got. In 2018,
they received $7,700. This year they received $5,600. How about Quesnel
Rotary? Last year, Quesnel Rotary received $32,235. This year, they received
$20,000. How about the Lions Club? The Lions do excellent work in supporting
seniors in our community. Last year, $29,058; this year, 2019, they received
$20,000. Victim services through the North Cariboo Métis healthy
relationship program — cut, no funding.
I have a very difficult time…. I’ve got pages, and I would be happy to
spend that time going through each of these organizations, because I have
been tracking it.
To the members who say or suggest to my constituents, who I represent
and who I proudly come and serve in this House…. To suggest for one moment
that what I’m sharing with you in this House is false is wrong. It’s
absolutely wrong.
I appreciate the sincerity of the Attorney General for looking and
finding and providing me the opportunity to get the answers that my
constituents are asking for. If $5 million has, in fact, increased in the
community gaming grants — and I know, through the financials, that it has —
the constituents in my riding, who’ve been absolutely decimated by what has
been happening in our community…. Where a fundamental value that states in
the community gaming grant program that you are supposed to look at
communities who are having significant impacts, the only impact I see in my
community and for my volunteer organizations and my groups is a reduction in
funds from the community gaming grant program.
So forgive me if I have put forward an amendment to ensure that for my
constituents and for my volunteer organizations, who have served for so many
years, there is some sense that funds will be kept whole and that
organizations in our community — and communities across British Columbia —
who work tirelessly to volunteer, whether it’s sports, arts, public safety,
environment, know that they can trust this government to ensure that those
funds will remain. That will ensure that through this piece of amendment,
financially, they will know that they can count on this government and
future governments to make sure that the community gaming grant funds will
be kept whole.
The Chair: The House will recess for about five minutes.
The committee recessed from 3:58 p.m. to 4:14 p.m.
[J. Isaacs in the chair.]
Point of Order
(Chair’s Ruling)
The Chair: In response to the point of order raised by the Attorney
General, I’ve examined the
section 2 proposed
by the member for Cariboo North.
[4:15 p.m.]
The amendment to
section 2 proposed by the member for Cariboo
North appropriates a portion of the income of the Lottery Corp. for
community grants in accordance with
part 6 of the Gaming Control Act.
Bill 36 provides for the sharing of annual provincial gaming revenue
with the B.C. First Nations Gaming Revenue Sharing Limited
Partnership.
In my opinion, in the opinion of the Chair, the proposed amendment
exceeds the scope of Bill 36. Additionally, the amendment contravenes
Standing Order 67, which requires a message from the Lieutenant-Governor
for any resolution for the appropriation of any part of the public
revenue for any purpose. The amendment is therefore ruled out of
order.
Debate Continued
Amendment ruled out of order.
S. Chandra Herbert: I certainly didn’t mean to, in any way, suggest that community
organizations in the member for Cariboo North’s community may have had,
in some cases, a decline in gaming grant revenue. Some years it’s up,
and some years it’s down. I know that’s really a tough struggle for
charities. I’ve worked in them, and I understand that.
I think what I’m trying to suggest…. I double-checked the math
here, and it may be helpful for the member. She can probably pass this
on to the community groups in her neighbourhood. In Quesnel, in
specific, the numbers that I’ve got suggest that in 2016-2017, Quesnel
itself — the community non-profits there — received about $515,000, give
or take, in gaming grants. That’s in the BCLC report that was provided
to council. It’s on the web. It’s easily accessible.
However, 2017-2018 saw about a $100,000 boost to community
charities in her community through BCLC gaming grants. In fact, instead
of seeing a decline, we saw about $100,000 more go into Quesnel than
under the last year of the previous government. Now, to say what will
happen in 2020, when they release the report…. We haven’t seen it,
obviously. I haven’t seen it. It will be released publicly in
April.
I want to clarify that it wasn’t to suggest…. Certain non-profits
may have seen a change in their funding levels, as has happened in my
own community. Some have got more. Some have got less. And in fact, in
the entirety, more have got more than some have got less. The numbers
have gone up, and $100,000 more into the community of Quesnel is, I
think, something that should be celebrated as opposed to suggesting
there’s less money going in than there was before.
Sections 2 and 3 approved.
Title approved.
Hon. D. Eby: I move the committee rise and report the bill complete without
amendment.
Motion approved.
The committee rose at 4:18 p.m.
The House resumed; Mr. Speaker in the chair.
[4:20 p.m. - 4:30 p.m.]
Report and
Third Reading of Bills
BILL 36 — GAMING CONTROL
AMENDMENT ACT,
Bill 36, Gaming Control Amendment Act, 2019, reported complete
without amendment, read a third time and passed on the following
division:
YEAS — 72
Chouhan
Kahlon
Begg
Brar
Heyman
Donaldson
Mungall
Bains
Beare
Chen
Popham
Trevena
Chow
Kang
Simons
D’Eith
Sims
Elmore
Dean
Routledge
Singh
Leonard
Darcy
Simpson
Robinson
Farnworth
Horgan
James
Eby
Dix
Ralston
Mark
Fleming
Conroy
Fraser
Chandra Herbert
Rice
Malcolmson
Furstenau
Weaver
Olsen
Glumac
Cadieux
de Jong
Polak
Lee
Stone
Coleman
Wat
Thornthwaite
Paton
Ashton
Martin
Davies
Kyllo
Sullivan
Morris
Stilwell
Oakes
Johal
Rustad
Milobar
Shypitka
Hunt
Tegart
Stewart
Sultan
Gibson
Isaacs
Thomson
Larson
NAYS — 1
Letnick
Hon. M. Farnworth: In this chamber, I call second reading, Bill 33, Securities
Amendment Act.
[R. Chouhan in the chair.]
Second Reading of Bills
BILL 33 — SECURITIES
AMENDMENT ACT,
Hon. C. James: I move that Bill 33 be read a second time now.
The amendments that are included in Bill 33 are to improve
security law here in British Columbia in a number of ways. I’ll use my
second reading comments to talk about the various ways and the positive
impacts that we could see through these changes in this bill.
I think people may think of the Securities Act as far removed from
their own life and that it’s not something that impacts most people.
They don’t have large investments. They may not think of the Securities
Act as something important to them or that impacts them
personally.
I think we’ve all seen the headlines. We’ve all seen the stories
of fraud that often occurs, fraud that may occur through investors
telling people that this is a great investment. In fact, people are
often losing, in many cases, life savings or retirement savings. So
these are very personal, heartbreaking stories that, in fact, we see
when we take a look at the Securities Act and the impact of strong
regulation.
[4:35 p.m.]
I think the other piece that’s really critical and important is
the faith that people have in our public institutions and, certainly,
faith that people need to have in our financial institutions in this
province — to make sure that they know that there are strong regulations
around investment, around derivatives, around securities, that those are
in place, that they can feel confident when they’re investing, that
those rules and regulations are being followed and that there are
penalties for people who don’t follow them.
I think this is critical legislation. There are critical
amendments that are coming forward in this bill to crack down on
fraudsters, to support victims and ensure that we do everything we can
so that victims have as much of their money returned as is possible and
that we build public confidence in the systems that we have here in our
province. That’s why I think this is a bill that, while people may not
see it have an impact on their lives, in fact is critical to the
confidence in our province.
Many of these amendments, just to look at a few of the specifics….
I think it’s also important to note that these changes to the Securities
Act are the first significant changes that have come forward in a long
period of time — in fact, in almost a decade since we’ve seen these
kinds of major changes come forward in the Securities Act.
So many of the amendments, as we go through them…. I’m sure in
committee stage, we’ll have an opportunity to be able to go through the
specifics: increase enforcement and fine collections and fine collection
powers that will serve, again, as I said, to deter security fraud in our
province and will ensure that we continue to be a leader in this
country. Many of these new changes that are in this bill, in fact, will
have British Columbia as the leader. We will be ahead of other provinces
when it comes to cracking down on fraud.
There are new powers, as well, that really will aid the commission
in the difficult task of collecting fines from people who violate
securities. What you’ll find, and I’m sure members will know this in
this House, is that the fraudsters often have ways of trying to hide
their assets, hide their money, when they know that they’re going to be
facing challenges for the work they’re doing. So what you will see in
these changes is to close as many loopholes as possible, to be able to
find the areas that have been used for evasion and to be able to evade
detection, and to be able to address those.
For example, in this act, you will see that we’ve included more
expansive investigatory powers that will allow the commission staff to
investigate both the person who is under investigation and the people
who have received property for less than market value from that person
under investigation.
This is a very critical piece of these changes. It is a new piece
but a very critical piece of these changes. Very often what you will see
are fraudsters who will transfer their property for less than market
value, for a very low cost, to individuals in order to hide it from the
fine that may be coming or to hide it from the dollars that could be
returned to victims, so this is a very important piece. Once these
assets are identified using the new investigatory powers, as I
mentioned, the commission will then have expanded powers to be able to
preserve the assets until the person of interest’s guilt can be
determined through a commission hearing.
I think that’s very important to note. Again, as I said, it will
give the opportunity to preserve those assets, go through the hearing
process. If guilt is found through the hearing process, then you still
have the ability to be able to utilize that asset, to be able to provide
support back to victims who have been victimized.
Again, as I talked about loopholes, this prevents people…. Well,
as much as possible, it will hopefully prevent people and serve to deter
people from hiding their assets or transferring their assets to other
individuals to avoid their fines, to not have to pay their fines. Again,
let’s remember that this is about returning resources to victims. This
is about providing compensation to victims, and, as much as possible,
that’s the goal in the changes that are coming forward.
[4:40 p.m.]
As I mentioned, you would go through a hearing process. After a
hearing where the commission orders a person to disgorge any funds that
were wrongfully obtained from investors, the commission then will be
able to use a process that people will know because it’s very similar to
the process found in the Civil Forfeiture Act. It’s a very similar kind
of process they’ll be able to use it to seize the assets that were
preserved during the investigation to satisfy the disgorgement order.
“Disgorgement” is their formal term they use to return money to victims.
So again, as we’ve seen in the Civil Forfeiture Act, it means making
sure that people don’t profit from crime, that you can actually utilize
those resources to be able to provide the support.
These expanded preservation and forfeiture powers will, hopefully,
make it more difficult for the person who violated security laws to
actually shield their assets. It will certainly assist the commission in
ensuring that there are more assets available to repay the victims,
which, ultimately, is something that I think all of us in this House
certainly support.
It also is about making sure that there are real consequences for
people who violate security law. That’s a key component in all of this.
Because while we want to make sure the penalties are in place — and you
will see through these amendments in this act that we’ve done that —
it’s also important to send a message that we are not going to tolerate
it. We are going to do everything we can in this province to ensure that
victims are compensated, that people don’t fall victim to these kinds of
crimes.
In addition to the investigatory, the preservation and the
forfeiture powers, we’ve also introduced a process for those people who
fail to pay their security fines. There are additional penalties in here
now where they will be unable to renew their licence to drive or be able
to get numbered plates for their vehicles. This is, again, another
deterrent. If someone has a fine on record and they’re avoiding paying
their fine, they will be penalized. They will be penalized no