1980 Legislative Session: 2nd Session, 32nd Parliament

HANSARD

The following electronic version is for informational purposes

only.

The printed version remains the official version.

Official Report of

DEBATES OF THE LEGISLATIVE ASSEMBLY

(Hansard)

TUESDAY, MARCH 11, 1980

Afternoon Sitting

[ Page

1365 ]

CONTENTS

Matter of privilege

Alleged partiality in administration of justice.

Mr. Macdonald –– 1365

Routine proceedings

Oral questions.

Administration of Justice. Mr. Leggatt –– 1365

Budget address.

Hon. Mr. Curtis –– 1369

Finance Statutes Amendment Act, 1980 (Bill 2). Hon. Mr. Curtis.

Introduction and first reading –– 1379

Social Service Tax Amendment Act, 1980 (Bill 3). Hon. Mr. Curtis.

Introduction and first reading –– 1380

Corporation Capital Tax Amendment Act, 1980 (Bill 4). Hon. Mr. Curtis.

Introduction and first reading –– 1380

Special Purpose Appropriation Act, 1980 (Bill 5). Hon. Mr. Curtis.

Introduction and first reading –– 1380

Special Funds Act, 1980 (Bill 7). Hon. Mr. Curtis.

Introduction and first reading –– 1380

Crown Corporations Borrowing Authority Increase Act (Bill 9). Hon. Mr. Curtis. Introduction and first reading –– 1380

Erratum –– 1380

TUESDAY, MARCH 11, 1980

The House met at 2 p.m.

Prayers.

HON. MR. MAIR: Mr. Speaker, in the members' gallery today are

two representatives of the British Columbia Health Association. I would

like the House to join me in welcoming Mr. John Braddock and Mr. Gene

Tomasky.

MR. BARNES: In the gallery today are employees from the

regional office of the Ministry of Human Resources in my constituency,

along with their supervisor, Mr. Carlos Charles, and they are: Margot

Feuchuk, Pat Osborne, Sheila Taylor, Val Stefan and Lynda Mailies.

HON. MR. CURTIS: As you would expect today, sir, members of

my family are present, and I would like to refer to Sheila, my wife,

and one of my sons, Gary, who are in the gallery along with my mother,

Helen Curtis, of Victoria. My mother indicated that she had other

appointments today, and she hoped the speech wasn't too long.

[Laughter.]

MR. STRACHAN: Mr. Speaker, I would like the House to welcome a friend of mine, Mr. Tom Nixon, from the Citizen newspaper in Prince George.

MR. SKELLY: Mr. Speaker, I hope the House will welcome a constituent of mine, Mr. Gordon Swann.

MR. KEMPF: Mr. Speaker, in the gallery with us today is a Mr.

Bill McAloney. Bill is an alderman on the council of the town of

Smithers, in the constituency of Skeena, and I would ask the House to

make him welcome.

MR. MACDONALD: Mr. Speaker, I rise on a point of privilege.

MR. SPEAKER: Please state the matter, sir.

MR. MACDONALD: I wish to correct the false and misleading

statement concerning myself in my capacity, I may say, as a member of

this House, and my one-time deputy minister, David Vickers, which

appeared in last evening's Vancouver Sun , not to mention the electronic media.

Judge Bewley of the B.C. Provincial Court, presently under a

contract with the B.C. Alcohol and Drug Commission, after referring in

his jejune way to an impaired driving case before him as "a petty case

of its kind, barely worth the time of a busy court," went on to

attribute to Mr. Vickers and myself a far more serious case of

interference with justice.

His imputation that someone was protected from an evenhanded

administration of justice is false and libelous. The reference is to

the case of Regina v. Sanucci

in 1974. In that case Crown counsel, who, I believe — but I haven't

checked the records — was Al Melvin, who is now a respected county

court judge, entered a stay because of insufficient evidence, with no

reference to Victoria at that point. The use of such a stay in criminal

justice, however Judge Bewley disagrees, was found to be proper by a

supreme court justice, who I believe was Mr. Justice Anderson. When the

case was brought to my attention I directed that a preliminary inquiry

proceed anyway, in order that the people and the accused should each

have their day in open court. On this inquiry the presiding judge found

there was insufficient evidence to commit the accused to trial. No one

received special attention or favours.

MR. SPEAKER: Hon. members, I will take the matter under

advisement and bring to the House a report as to whether or not a

matter of privilege does exist. I will reserve decision on it.

MR. MACDONALD: Mr. Speaker, in accordance with page 152, I

think, of the nineteenth edition of May, I was correcting a false

impression that had been conveyed about me in my conduct as a member

and minister. I don't intend to move a motion or have the matter go

further. I want it on the record.

MR. SPEAKER: The matter will drop?

Interjections.

MR. SPEAKER: The hon. member is still on the matter of privilege. Order, please.

MR. MACDONALD: I want it on the record, and I'm not impressed by that kind of response from the government benches.

MR. SPEAKER: Since the member gained the floor on a matter of privilege, I just assumed that perhaps a motion would be attending.

Oral Questions

ADMINISTRATION OF JUSTICE

MR. LEGGATT: Mr. Speaker, my question is directed to the

Minister of Intergovernmental Relations. In answer to the second member

for Vancouver East (Mr. Macdonald) yesterday, in the questions which

surrounded the Rigg case, the minister — and I'm quoting from Hansard —

said: "I was distressed with an error in judgment. And it was a mistake

in judgment." He went on to say: ''...and it was an unfortunate error

in judgment."

Would the minister now advise the House what the error in judgment

was that the minister found in respect of his deputy's conduct in

regard to the Rigg case?

HON. MR. GARDOM: In answer to the hon. member, I concluded that it was in not carrying on with the appeal.

MR. SPEAKER: I'm going to interrupt question period — and

time will not be taken up for this. There's some concern about whether

or not the cameras present in the chamber are actually operating. The

answer is no; they will begin operating when the budget speech begins.

MR. LEGGATT: I want to assure you, Mr. Speaker, that the cameras have no influence on whatever is happening here today.

My question is directed to the Attorney-General; it also follows the

answers that he gave yesterday to the second member for Vancouver East

(Mr. Macdonald). In the cases which involved Mr. Ritchie, Wendy King

and Andrew Rigg,

[ Page 1366 ]

has the minister in his investigation determined

whether the initial intervention in those cases was from his Deputy

Attorney-General, or was the intervention from the regional Crown

counsel or from a representative at the local level?

HON. MR. WILLIAMS: The review of these matters, of which I

advised the House on Monday, is still continuing. I'll have to take the

question as notice until that review is complete.

MR. LEGGATT: I have a supplementary question.

MR. SPEAKER: A supplementary is not permitted on a question taken on notice. However, a different question is in order.

MR. LEGGATT: My question again concerns the very serious

matters raised in the letter from Mr. R. Bruce Donald, which I know the

minister presently has under investigation. However, I'd ask him if he

could advise the House in regard to one very serious matter raised, and

I'm quoting from the letter: "I believe that Mr. Vogel then did in fact

discuss with Mr. Filmer the staying of a subpoena issued for John

Farris, and did discuss ways of preventing John Farris from being

called as a witness." Did the minister check with Mr. Filmer to

determine whether the allegation in the letter made by Mr. Donald was

an accurate one? In other words, can he now tell the House whether

there was any intervention, in regard to which witnesses would be

called in the Wendy King case, from the Attorney-General or any

representative in the Attorney-General's ministry?

HON. MR. WILLIAMS: As that allegation is one of the principal

ones under review, it will be dealt with when I bring a full statement

to this House.

MR. LEGGATT: In the course of the investigation, would the

minister determine — and perhaps he could advise the House today — what

it was about those three cases which led to an intervention — if there

was intervention in the Ritchie case, the King case and the Rigg case?

Is there some common thread, that he is able to determine, as to why

there would be intervention at the Attorney-General's level in regard

to those cases?

HON. MR. WILLIAMS: Mr. Speaker, the question is based upon

speculation, and the member, even coming from other places, must know

that such questions are not in order.

MR. LAUK: On a supplementary question, Mr. Speaker, I restate

the question. The Attorney-General has indicated that it's not in

order. I understood, Mr. Speaker-correct me if I'm wrong — that that

was your purview. And if Mr. Speaker is considering the

Attorney-General's submission to that extent, I would add my own, to say that the question was straightforward.

Is the Attorney-General, after all of these days of controversy,

stating in this House that he doesn't know the answer or that it's a

question of future policy? The question was quite simple. "What is the

common thread between the Wendy King case, the Ritchie case and the

Rigg case?

AN HON. MEMBER: The CBC.

MR. SPEAKER: Order, please. A question which is hypothetical

and a question which inquires into the future activity of a minister

are not in order, but a question which asks of a minister's completed

action is certainly in order. Also, a question asking an opinion is not

in order. And I would suggest that this is the kind of question that

the minister may choose to answer or not to answer, according to his

discretion.

HON. MR. WILLIAMS: Mr. Speaker, I told the House on Monday

that I was conducting a review for the purposes of bringing a full

statement to this House, and that is my commitment. What the member has

assumed is that there is a common thread, and the review will disclose

whether or not that assumption is sustainable. At the moment I do not

believe it is.

MR. LORIMER: Will the Attorney-General's review include an investigation into the Mickey Moran case?

MR. SPEAKER: This question is one which inquires into the future activity of the minister. Does the hon. Attorney General wish to answer?

HON. MR. WILLIAMS: I might say before answering the question,

Mr. Speaker, that members have used the word "investigation" from time

to time. They should be aware that in the Ministry of the

Attorney-General investigations are undertaken by the police. However,

if the member for Burnaby-Willingdon (Mr. Lorimer), saw the CBC

television show last Thursday night, he will know that the Moran case

was one of the cases referred to. My review is with respect to all of

the allegations in that telecast.

MR. LORIMER: Is the Attorney-General at this time satisfied

with the implication that a conviction could not be obtained on the

charges of impaired driving and failure to take a breathalyser test in

that particular case?

MR. SPEAKER: Is this a question seeking for a legal opinion?

MR. LORIMER: I'm asking for the Attorney-General's opinion — whether he's satisfied that the implications....

Can the Attorney-General assure the House that the Crown's decision

to drop the charges of impaired driving and failure to take a

breathalyser test were in accordance with the usual practices, and

based solely on the evidence?

HON. MR. WILLIAMS: Mr. Speaker, my review of the matter has

touched upon this particular aspect, and I can assure the member that

the concerns he expressed are unfounded. The decision was made by

qualified counsel and based upon the evidence that was available from

witnesses and with no other consideration whatsoever.

MR. LORIMER: I wonder if the Attorney-General could tell me

whether or not Moran, at the time of his arrest, was taken by police

car from Christina Lake to Grand Forks?

HON. MR. WILLIAMS: The answer is no, Mr. Speaker. I have no knowledge of that matter.

[ Page 1367 ]

MR. LORIMER: I didn't hear whether the answer was no or he doesn't know.

MR. SPEAKER: The answer was no, hon. member. The Attorney-General clarifies his answer.

HON. MR. WILLIAMS: I don't wish the member to be confused. My

answer is no. I can't tell him what took place because I have no

knowledge of those details.

MR. LAUK: With respect to the review that the

Attorney-General has announced he is conducting into these allegations,

could he indicate to the House who is conducting the review? Is it the

Attorney-General personally, or his staff, or what persons are involved?

HON. MR. WILLIAMS: I am conducting the review personally, with the assistance of my staff.

MR. LAUK: Does that include the assistance of the associate deputy minister in charge of criminal justice?

HON. MR. WILLIAMS: Yes.

MR. LAUK: How can the Attorney-General justify the

involvement in the review of a person who was involved directly in the

Donald letter to the Attorney-General?

HON. MR. WILLIAMS: Mr. Speaker, I can justify the use of

Assistant Deputy Attorney-General McDiarmid. He has for 25 years been

the senior officer in the Ministry of the Attorney-General with respect

to criminal matters. He is a respected, experienced and skilled senior

civil servant who has served this government and the previous

government with honour and distinction. I would be happy to have his

services in such matters at any time.

MR. LAUK: It is precisely because of the respect that we all

hold for Mr. McDiarmid that he should not be placed in that position. I

repeat: how can the Attorney-General justify the use of a man whose

name has been mentioned in the letter, placing upon him the absolutely

impossible burden of reviewing his own situation and his own case?

MR. SPEAKER: The same question was just asked.

HON. MR. WILLIAMS: Mr. Speaker, I have given the reasons for

my justification, but I must say I wish the member would attend more to

what is taking place in this House, because Mr. McDiarmid's conduct is

not under review in any of these matters.

MR. LAUK: I would point out to the Attorney-General, as a

preamble, that in the Donald letter Mr. McDiarmid was mentioned as a

person meeting with Mr. Vogel and others with respect to the King case.

I will ask a different question, but I point that out to the

Attorney-General and ask whether he would consider that, and relieve

Mr. McDiarmid of the review responsibilities upon him.

I'll ask this question: seeing that the review is not being

conducted outside the Attorney-General's department — which is

impugned, and which allegations must be either proved or disproved —

can the Attorney-General differentiate between Mr. Vogel's involvement

in these cases and the case involving Judge Govan, where the

Attorney-General immediately called on a member of the judiciary?

MR. SPEAKER: I must observe that the

preamble sounded more like a statement than like an adjunct to the question.

HON. MR. WILLIAMS: For that reason, Mr. Speaker, in my

response I must touch upon those matters. Mr. McDiarmid was involved,

as indicated in the letter from Bruce Donald, because he had been

instructed by the Attorney General of the day to carry out precisely

that responsibility.

MR. LAUK: To repeat the question: can the Attorney General

differentiate between the Govan case, in which he immediately appointed

a member of the judiciary, and this case, in which he is conducting an

in-house review?

HON. MR. WILLIAMS: Yes.

MR. LAUK: Will the Attorney-General do so now?

HON. MR. WILLIAMS: I already have, Mr. Speaker.

MR. SPEAKER: Hon. members, in anticipation of the order paper

for today, and anticipating that perhaps some distinguished guests

might accompany us to the floor, I would declare a short recess to

allow for the proper preparations; also a short recess in order for the

television cameras to gain lighting levels, etc. I will ring the bells

when I need your attendance.

The House took recess at 2:32 p.m.

The House resumed at 2:41 p. m.

Orders of the Day

HON. MR. CURTIS: Mr. Speaker, I move that the public accounts

for the fiscal year 1978-79 be referred to the Select Standing

Committee on Public Accounts and Economic Affairs.

MR. HALL: Mr. Speaker, I stand in my place to move an

amendment to that motion, seconded by the member for Skeena (Mr.

Howard), that the motion be amended by deleting the word "year" and

substituting therefore the following: "years 1977-78 and .…" The

amended motion would then read: "That the public accounts for the

fiscal years 1977-78 and 1978-79 be referred to the Select Standing

Committee on Public Accounts and Economic Affairs."

MR. SPEAKER: We first have to determine whether the motion is in order.

I see no reason, hon. members, why the amendment shouldn't proceed.

On the amendment.

MR. HALL: Mr. Speaker, I'll be very brief. It is my opinion,

and the opinion of the party I represent, that the opportunity afforded

to the public accounts committee of the first session of this current

parliament was insufficient for it to do its work in examining the

expenditures of the government opposite, totalling some $4 billion. The

timetable was

[ Page 1368 ]

as follows: the session last year commenced on June

6, 1979; the select standing committee did not report to the House

until July; the organizational committee which set up the leadership,

shall I say — or the chairman and secretary of the public accounts

committee — did not take place until July 9; as soon as possible

thereafter the chairman, the second member for Surrey, called a

meeting. That only left three weeks for that committee to do its work.

It has attempted to do its work in the ensuing period. Mindful of

the fact that it cannot sit while the House is adjourned, it

nevertheless attempted to do its work in seeking information from the

government. I don't wish to enter into debate at this time on this day,

which, I appreciate, is an important day for the government; but it was

not able to do its work, although it attempted to do it.

I would therefore request the government to give earnest

consideration to this amendment, so that the unfinished work of

examining your performance, your spending practices — the details of

1977-78 — can continue with the public accounts committee, which was

set up by the select standing committee, when it reports, presumably

speedily, this session.

HON. MR. CURTIS: Mr. Speaker, the government cannot accept

the amendment and will oppose it. It would be perhaps sufficient to say

that it is unprecedented, and there are those in this House who have

had far more experience than I in matters of this kind; but I believe

it is a well-established precedent, Sir, that the public accounts for a

particular year are referred.... While the member who has moved the

amendment — and I thank him for providing me with a copy of it — has

explained the fact that the committee, to paraphrase what he said, did

not have an opportunity to fully explore the accounts, I am not aware

that when the House approached the day for an adjournment last summer,

there was any suggestion by members opposite that more time was needed

to study public accounts. I think that would have been a reasonable

time. Perhaps in the fullness of time, sir, a committee would have an

opportunity to consider the point which has been raised; but for today,

on the basis of a sudden amendment, the government is not prepared to

support it.

MR. LEVI: Mr. Speaker, in refusing the motion the minister

has said that it is without precedent. Well, certainly the performance

last year was also without precedent: we met for only forty days. If

the minister is suggesting that somehow it was really possible to

review in something like two weeks what took place in respect to

expenditures of $4 billion, then do we have some kind of indication

that this is the way the government wants to go in terms of looking at

the people's money?

We've heard constantly from this government about "not a dime

without debate, we're an open government, we want to be able to have

people know exactly what's going on." We wrote to the

comptroller-general with respect to getting information. We were not

able to get it, because we were not sitting; we were in adjournment. To

suggest that at the end the government was somehow going to prolong....

I find it ridiculous that the minister cannot, regardless of

precedent.... We don't live by precedent completely. You can be

flexible and you can change.

The suggestion is that we have an opportunity in this session to

review not only the year that has to come under review but the previous

year. That's the way and the sign of being an open government and being

prepared to have these things under scrutiny. If the minister, who is a

new minister, wants to create a good precedent, then I suggest to you,

sir, that you allow the motion. Let's have a continuation of the

suggestion that you have made: that we are going to have open, free,

accessible government. At the moment we don't have an information act.

If anybody suggests over there that somehow the auditor-general is

going to do this kind of job, then we might well ask: "What do we need

the public accounts committee for?" But we have one, we need it and we

need the opportunity for this kind of scrutiny.

Mr. Speaker, the new Minister of Finance has an opportunity to

create a new precedent. I would suggest that he rethink what he said

when he made his remarks.

MR. MACDONALD: Mr. Speaker, I'm going to say only a very few

words, but I think the refusal of the government to accept this

amendment is a very, very serious matter in British Columbia.

Are there accounts sitting out there somewhere that should not be

inspected and scrutinized by the elected representatives of the people?

Are we working now as legislators, particularly in the opposition, so

hard that we cannot give better scrutiny to the financial affairs of

this province? The answer is that we can give better scrutiny, and we

should not be blocked by a government majority in examining any

government records of expenditure. We do not know if there are things

buried in those accounts which are proper or improper. But we have a

right to see them. Here we are, ready to present a budget to the people

of British Columbia, but the minute examination of how that money is

being spent is being denied to this Legislature of the province of

British Columbia.

I conclude by asking the Premier, as the head of the government, if

he will not change his mind on this simple amendment and allow full

examination of the public accounts of the province of British Columbia

by the elected members. Amendment negatived on the following division:

YEAS — 26

Macdonald

Barrett

Howard

King

Lea

Lauk

Stupich

Dailly

Cocke

Nicolson

Hall

Lorimer

Leggatt

Levi

Sanford

Gabelmann

Skelly

D'Arcy

Barnes

Brown

Barber

Wallace

Hanson

Mitchell

Lockstead

Passarell

NAYS — 30

Waterland

Nielsen

Chabot

McClelland

Rogers

Smith

Heinrich

Hewitt

Jordan

Vander Zalm

Ritchie

Brummet

Ree

Davidson

Wolfe

McCarthy

Williams

Bennett

Curtis

Phillips

McGeer

Fraser

Mair

Kempf

Davis

Strachan

Segarty

Gardom

Mussallem

Hyndman

[ Page 1369 ]

Division ordered to be recorded in the Journals of the House.

Motion approved.

Hon. Mr. Curtis tabled the report of the comptroller general

pursuant to the provisions of the Audit Act,

chapter 22, Revised

Statutes of British Columbia, 1960.

ESTIMATES OF SUMS REQUIRED

FOR THE SERVICE OF THE PROVINCE

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Estimates of Sums Required for the Service of the Province

for the fiscal year ending March 31, 1981, including

Schedule A sums required

by Her Majesty to make good certain sums expended for the public service for

the period ended March 31, 1980, and to indemnify the several officers and persons

for making such expenditure, recommending the same to the Legislative Assembly.

Hon. Mr. Curtis moved that the said message and the estimates accompanying the same be referred to Committee of Supply.

Motion approved.

HON. MR. CURTIS: Mr. Speaker, I move, seconded by the hon.

Attorney-General (Hon. Mr. Williams) that Mr. Speaker do now leave the

chair for the House to go into Committee of Supply.

BUDGET ADDRESS

HON. MR. CURTIS: Mr. Speaker, as Minister of Finance, it is

my pleasure to present to this House and to the people of British

Columbia the first budget of a new decade. For British Columbians it

will be a decade of prosperity and promise. This budget represents a

strong statement of confidence in our province, in our people and in

our economy. It is the catalyst I believe is needed to solidify British

Columbia's position as one of Canada's strongest and most dynamic

regions.

We are part of Canada's booming west. We are situated to take

advantage of growing markets on the Pacific Rim. Our resources are rich

and varied, and our people are skilled and energetic. The ingredients

are all there, but they will not come together without effort. The task

for all of us will be to put it together for the eighties, to build a

secure and satisfying future for our citizens.

The tabling of a budget gives a Minister of Finance a privileged

opportunity. It is a chance to present in tangible form the

government's plans for dealing with pressing social and economic

issues. I have been particularly fortunate in taking over the

provincial finances after four years of careful management by my

colleague, the Hon. Provincial Secretary and Minister of Government

Services (Hon. Mr. Wolfe). I can say, without doubt, the government

finances were left in good shape, much better, I might add, than my

colleague found them in December 1975.

Perhaps I can also take this opportunity to offer a tribute to a man

who has served this province for many years. Mr. G.S. Bryson is

retiring after 23 years of dedicated service as Deputy Minister of

Finance for British Columbia. His diligence and counsel will be missed

by many. I would like to thank him and wish him well.

I am fortunate in having an able replacement in the person of Mr. L.

I. Bell, currently the Deputy Minister of the Ministry of Lands, Parks

and Housing. Mr. Bell's boundless energy and experience will be of

great value to me, to the Ministry of Finance and to the people of

British Columbia. I welcome Mr. Bell to the ministry and I wish him

continued success in meeting the challenges of government.

Finally, I wish to acknowledge all of British Columbia's public

service. Over the last four years I have been constantly in touch with,

and assisted by, the government employees of this province. They are

hard-working, extremely capable, and they represent a great asset to

the people of British Columbia.

In this first budget I would also like to outline the general

approach I shall be bringing to the Finance portfolio and to the

presentation of the budget.

First, and I think most important, will be a continuation of the

firmly established Social Credit tradition of fiscal responsibility in

government. Public services and facilities must be provided

efficiently, with sensitivity to people's needs, and at minimum cost to

taxpayers. But responsibility has to prevail. We should not be spending

today the tax dollars of our citizens of tomorrow. British Columbia's

tax levels are currently among the lowest in Canada, and yet we enjoy

superior public services without recourse to government borrowing. I

intend to preserve this tradition.

Secondly, government is here to serve the people. To do this we

shall have to communicate effectively and be accountable. The budget

should be an important vehicle for bringing people and government

closer together. I intend to enhance this role of the budget in several

ways: (1) by improved methods of presenting government revenues,

expenditures and overall fiscal position; (2) by paying increased

attention to tax measures, such as complex deductions and credits that

do cost money but are somehow lost in a maze of fine print. We shall,

where possible, adopt the practice of providing "expenditure

equivalents" for measures of this type; (3) by presenting with the

budget more information on the factors behind our decisions, and on the

meaning and implications of the decisions themselves. Toward this end,

increased use will be made of explanatory tables and appendices, and I

intend to provide a detailed background paper with each budget I bring

forward. Mr. Speaker, I table herewith the background paper "March

1980" for the 1980 budget.

Thirdly, budget policy should be set within a longer term, more

forward-looking perspective. Good decisions must be timely, well

considered and, as much as possible, should reflect a high level of

public awareness regarding future developments, the choices to be made,

and the consequences of alternative options. To facilitate this, the

budget document will contain a statement of important economic and

fiscal developments expected over a three- to five-year period into the

future.

Finally, the budget should be the one source where people may look

for an overall statement of the government's economic policy and

strategy. Priority issues should be identified and plans presented for

bringing the policies and programs of various ministries to bear upon

them. In so

[ Page 1370 ]

doing, I believe more cohesion will be brought to

government policies, and the people of British Columbia will have the

opportunity for an improved perspective on government actions.

The Ministry of Finance is now assuming this new role and has been

assisted by the reorganization of government ministries in late 1978.

At that time the capable staff of the Ministry of Finance was augmented

by a group of policy analysts transferred from the Ministry of Economic

Development.

This budget will reflect the elements of this approach — continued

fiscal responsibility, improved communications and accountability, a

longer-term perspective, and emphasis on overall provincial economic

policy.

While today's budget reflects my personal view of government, it is

one which is very much related to past budget measures and initiatives.

A distinct pattern can be observed in looking back over this

government's last four budgets. The document for the 1976-77 fiscal

year was designed to put the provincial finances back on a sound

footing after the first, and only, occasion on which the province had

to borrow on its own since 1952. At that time a number of taxes had to

be temporarily raised. With the financial position of the province

generally restored, the budget for the 1977-78 fiscal year stressed

expenditure restraint in an effort to reduce government excesses and

improve efficiency. We had to restore that very critical balance

between big government, with the burdens it imposes on citizens, and

good government, that provides needed services and leadership in a

fiscally responsible manner.

The two budgets that followed, culminating with last year's

"sunshine budget," returned to the people of British Columbia the

rewards of their own restraint and of the renewed financial strength of

their government and of the provincial economy.

With the provincial finances back in order, with taxes at a low

level, and with a fundamentally healthy economy, we are now able to

take steps to build on our strengths in the 1980s. This budget

demonstrates further this government's ability to provide improved

services to people while keeping to a minimum the tax burden on all

British Columbians.

Let me turn now to the economic setting that conditioned the choice of policies contained in this budget.

The 1980s will present British Columbians with great opportunities

for developing our province and the potential of securing living

standards of unsurpassed quality. It will also be a tough and a

competitive decade posing many challenges. Opportunities can be

realized, Mr. Speaker, but only if these challenges are met head on

through good planning and hard work. Let me turn first to some of the

opportunities.

In spite of uncertainties in the world community, a number of

factors should combine to favour the British Columbia economy. Although

relatively slow economic growth is expected for most western industrial

nations through the 1980s, a number of countries around the Pacific Rim

— Japan, Korea, China, Malaysia, Indonesia — will show continued

strength. British Columbia is well situated to participate in this

growth.

Trade liberalization associated with the multilateral trade

agreements recently signed in Tokyo will augment the benefits from

British Columbia's location on the Pacific Rim. New export markets will

open up, certain imported goods will be cheaper, and a general

trade-related increase in traffic over the provincial transportation

network should favour British Columbians.

The 1980s are expected to bring buoyant commodity markets. Tight

international energy supplies will result in firm markets and high

prices, not only for oil and natural gas but for other energy forms as

well. The international situation can also be expected to place

continued demand pressure on a wide variety of metals — gold, silver,

copper, lead, zinc, aluminum and molybdenum. British Columbia is rich

in a variety of energy resources — natural gas, coal, hydroelectricity,

wood wastes — and in many other resource commodities expected to be in

scarce supply. As a result, exploration, resource extraction,

processing and the use of high technology and related expertise will

offer great opportunities in the coming decade.

Within a Canadian context, economic growth will strongly favour

western and northern Canada. Again, British Columbia's proximity to

Alberta, Saskatchewan and the northern territories will prove

advantageous for producers in this province. Added stimulus will come

from the province's position as the "gateway to the Pacific."

Strong economic growth on the Prairies, in northern Canada and the

western region of the United States will also combine with British

Columbia's natural magnificence and climate to create increased

opportunities for our visitor industry.

The province has a labour force second to none and our natural

advantages attract people of drive and imagination. Ultimately our

ability to grow, develop and take advantage of economic opportunities

depends upon the attitude, abilities and energies of our workforce.

British Columbia will benefit from these opportunities only if a number of challenges are met head on.

The driving force behind much of our historical prosperity has been

the forest industry. The point has now been reached where major

increases in the timber cut could jeopardize the future health of the

industry, and that of the province, unless attention is focused on

preserving the forest base and increasing the productivity of the

forests. It is essential that we concentrate more on farming the

forests, not depleting them. As the farmer must use more advanced

farming techniques to increase his yields, so we in British Columbia

must turn to more advanced techniques of forest management.

Economic growth in the 1980s will require advance planning and

timely government action if British Columbians are to take maximum

advantage of opportunities. An efficient transportation system — ports,

roads, railways, ferries and air services — should all be in place. The

education system must prepare people for new opportunities as well as

accommodate the educational needs of British Columbians in the future.

Necessary services and facilities will have to be provided without

increasing the tax burden on our citizens. This will be of added

importance in view of our location next to a province experiencing

unprecedented growth of government revenue, enabling it to maintain

with ease the lowest rates of tax in the country. To attract the best

industries and the people with skills needed to help build this

province, our tax levels cannot be allowed to become excessive.

British Columbia's economy reaches well beyond the borders of this

province and, in consequence, many of the opportunities in the years

those areas over which it has policy-making jurisdiction. We must have

good international and interprovincial transportation systems; we need

[ Page 1371 ]

trade policies that assist our efforts to sell in

the growing markets of the Pacific Rim; and we need fiscal arrangements

with the federal government that will enable us to tackle problems and

seize opportunities.

An additional challenge, and a major one, will be to ensure that

vital commodities such as energy are in secure supply for our citizens

and industries. International instability, as recent events clearly

demonstrate, can shake the economic foundation of nations and regions

relying too heavily on foreign sources.

Finally, it will be a great challenge for British Columbians to

achieve our economic potential while preserving the environment that is

so central to the quality of life in this province. Urban development

must proceed in an orderly way so as to maintain congestion, noise and

pollution at a minimum. Achievement of our goal of energy security will

require particularly difficult decisions to be made concerning hydro

development, pipelines and other projects related to our energy future.

Mr. Speaker, these are some of the opportunities and challenges we

shall face in the decade ahead. Let me turn now to the more immediate

economic and fiscal situation.

I shall deal only briefly with the economic situation and outlook,

since it is more fully detailed in the background paper that I have

tabled today. Looking back for a moment, however, it is clear that

fiscal caution and sound financial management by the provincial

government have restored business confidence and have encouraged

private-sector expansion in British Columbia. Here are a few indicators.

Since 1975 business capital expenditures have grown at an impressive

average annual rate of 16.8 percent, compared to only 11.3 percent in

Canada.

The value of exports from British Columbia has expanded since 1975

at an average rate of 22.8 percent per year. The comparable rate for

the country as a whole has been 17.9 percent.

Beginning in 1977 and continuing through '78 and '79 the rate of

inflation, as measured by the Vancouver consumer price index, has been

well below the national average, in spite of the fact that in earlier

years it was usually higher.

When this government took office in 1975 the seasonally adjusted

rate of unemployment stood at 8.9 percent, the highest rate since the

labour force survey started, the highest rate west of the Maritimes,

and a significant 1.6 percentage points higher than the Canadian

average. Since then, the annual unemployment rate in British Columbia

has declined in each and every year.

Since this government took office, the number of jobs in the province has increased by more than 170,000.

In 1975 British Columbia accounted for over 17 percent of Canada's

total time lost from strikes and work stoppages, but by 1979 this share

had declined to approximately 10 percent.

Looking specifically at 1979, it is clear that British Columbia's

economy maintained momentum in a difficult year. Real gross domestic

product is estimated to have grown by 3.3 percent compared to 2.8

percent for Canada. The average provincial unemployment rate for the

year was 7.7 percent, down from 8.3 percent in 1978. And in 1979,

British Columbia's 7.7 percent inflation rate was well below the 9.1

percentage increase in consumer prices for Canada.

Total investment was also strong, increasing 12.9 percent over the

level of a year earlier. Even more impressive is the fact that

investment in the private sector was up 23.4 percent in 1979, a sure

sign of underlying business confidence and economic strength.

Now, Mr. Speaker, looking to the future, I should like to draw a

distinction between what we see for 1980 and prospects for the years

beyond. Virtually all western industrial countries are expected to

experience an economic slowdown in 1980. A major factor underlying

economic weakness in Canada and the United States, as we all know, has

been high interest rates and their dampening effect on construction

activity. Since British Columbia is closely tied to the international

community through its reliance on export markets, some repercussions on

the provincial economy are unavoidable. Reduced prices and sales of

British Columbia forest products must be of particular concern in this

regard.

Overall for 1980 we are expecting real growth in gross domestic

product of around 2.1 percent, compared to I percent forecast for

Canada by the federal Department of Finance. British Columbia's

inflation rate should again be lower than the Canadian rate, and

investment should continue to be strong. A recent capital investment

intentions survey by the federal Department of Industry, Trade and

Commerce indicates that British Columbia could experience the highest

private-investment growth rate of all Canadian provinces in 1980.

Finally, reflecting the national and international economic

slowdown, the unemployment rate is expected to rise slightly in 1980,

reaching approximately 8 percent compared to 7.7 percent in 1979.

Now, Mr. Speaker, while the perils of forecasting are recognized,

good decision-making requires us to have a view of economic events in

the longer term. The detailed discussion in the background paper

concludes that beyond 1980 we should expect a strong resurgence of

economic growth. Such forecasts must necessarily be modified as more

information becomes available, but at this time we anticipate annual

real growth of provincial gross domestic product of between 4.5 and 5

percent over the 1981-85 period.

To summarize, the government sees important opportunities for

British Columbia in the 1980s. These opportunities can be realized with

good planning and hard work. We shall be working against a background

of modest growth in 1980, but a stronger performance is expected over

the 1981-85 period.

Before I turn to the policy priorities proposed for the coming year,

let me review the fiscal position of the government and show you what

we have to work with.

The government is in a strong fiscal position, a reflection of the

economic life that has been breathed into British Columbia in recent

years. Budgetary revenue has grown from $3.5 billion in 1976-77 to an

estimated $5.5 billion for 1979-80, an increase of over 57 percent,

despite substantial tax reductions in the last two budgets. The revised

forecast for budgetary revenue of $5.5 billion in 1979-80 is over $900

million more than projected in last year's budget.

Approximately two-thirds of the unanticipated revenue is not from

taxation but from natural resources, and can be largely attributed to

higher than expected income from lumber and natural gas. In last year's

budget speech my colleague and predecessor noted that for 1979 "lumber

shipments could decline if a slowdown develops in housing starts in the

United States." While such a slowdown had been widely predicted, it did

not actually begin until late in the year, and not before British

Columbia's lumber shipments reached record volumes at record prices.

[ Page 1372 ]

The extra revenue from natural gas also arises from higher export

volumes at increased prices. During the past year the National Energy

Board authorized more than a doubling in the export price of natural

gas following rapid increases in international oil prices.

Looking to 1980-81, revenue growth is not expected to match that of

this fiscal year. Revenue is forecast to increase by 5.4 percent in

1980-81.

The anticipated slowdown in export markets for certain resource

products, particularly in the forestry area, is the major factor

underlying our expectation of more modest revenue growth. Lumber prices

have already turned downward and are not expected to recover fully in

the coming year. Consequently, next year's forest revenues could be

down to approximately 1978-79 levels. Although revenue from oil,

natural gas and minerals together is expected to increase by 31.3

percent, total natural resource revenue is forecast to decline 4.3

percent from the 1979-80 fiscal year.

Expected revenue growth from taxation is affected by tax reductions

enacted last year and by revenue measures contained in this budget.

Reflecting this government's commitment to keep taxes down, revenue

growth from this source taxation — is expected to be 7.3 percent in

1980-81. Federal government contributions to provincial revenues are

expected to grow at 9.1 percent in 1980-81. This is below the expected

growth rate this year due mainly to the fact that the province received

substantial special adjustment payments this fiscal year. Revenue from

all other sources will grow at a rate of around 11.8 percent, roughly

in line with expected growth in the economy.

In

summary, the revenue picture for the next year reflects a number

of tax reductions and anticipated softening in some export markets and

the economy in general. Nevertheless, 1980-81 total revenue should

reach $5.8 billion.

In addition to current revenues, funds are also available in the

form of revenue surpluses accumulated from prior years. The combination

of prudent financial management and strong resource revenue growth has

generated a surplus of revenue over expenditure in each of the last

four years.

For the fiscal year just ending, the surplus should reach $470

million after non-budgetary transactions such as the $200 million

Housing Initiative Program are accounted for. This would bring the

revenue surplus earned since 1976 to $900 million. Of this total, $294

million was appropriated for special initiatives in the 1978-1979 and

1979-1980 fiscal years. As a result an expected $606 million will be

available in the revenue surplus account at the end of the 1979-80

fiscal year.

I would like to say a few words about the general taxation and

expenditure position this government will be taking in the coming year.

Four factors weighed very heavily in our thinking.

First, clearly, the provincial revenue position is very strong. I've

already mentioned the progress made in recent years to improve the

economy and restore a more appropriate balance between the public and

private sector. Success in these areas has allowed major tax cuts and

incentives in the last two budgets while retaining considerable revenue

strength.

Secondly, long-term economic development requires more than low

taxes. Realization of our potential will require a number of carefully

planned government initiatives in support of economic development.

Looking ahead to the opportunities and to those challenges of the 1980s

a number of actions have been identified that must be taken now.

Thirdly, British Columbia's healthy economy, in itself, results in

increased demands for services to be provided by the province or by

local governments. As the economy remains on a solid longer-term growth

path, the need for increased services to our citizens will continue to

grow. Fourthly, high interest rates and world economic difficulties are

expected to result in reduced economic growth in 1980, while the threat

of accelerating inflation remains. To accommodate these factors the

government has concluded that the 1980-81 fiscal year should be one of

selective expansion and stimulus. A foundation for the 1980s must be

put in place, some economic stimulus is in order for the current year,

and action is needed to cushion the impact of continued inflation and

higher energy prices.

The spending estimates I am presenting to the House today propose

total budgetary expenditure of $5.55 billion, 15.4 percent above the

revised estimates for 1979-80. While 1980-81 expenditure growth will be

higher than in recent years, this does not represent the beginning of a

new trend. Our forecast of expenditure growth over the next five years

is contained in the budget background paper and shows a growth trend

similar to that forecast for the economy as a whole. I should note that

some of the increase for 1980-81 reflects the inclusion in the

budgetary estimates of items previously funded from revenue surplus,

and a subsidy for transit services previously funded by British

Columbia Hydro and Power Authority.

In the 1980-81 fiscal year, therefore, budgetary revenue is expected

to exceed budgetary expenditure by $250 million. It is the government's

intention to return this surplus revenue to the economy through special

program initiatives, most of which will not result in recurring

expenditures in future years. In planning for statutory appropriations

of $250 million, I am budgeting for a balance between revenue and

expenditure in 1980-81.

In addition to public services and economic stimulation provided in

budgetary and statutory appropriation measures, approximately $353

million will be spent from surplus revenues, leaving an anticipated

balance of $253 million. I consider it prudent at this time to plan for

a contingency balance in the revenue surplus account. There are two

reasons for this:

First, the intensity of the expected international slowdown is

exceedingly difficult to predict, and the effect on provincial revenues

may be more severe than has been anticipated.

Secondly, in the process of preparing this budget, l have asked my

officials in the Ministry of Finance to prepare medium-term projections

of revenues and expenditures. These projections, which are summarized

in the background paper, indicate that revenue shortfalls in 1981-82

and 198283 are possible. Moreover, these projections make no allowance

for added expenditure on future programs.

In the interest, Mr. Speaker, of good, prudent management it is

clearly desirable to carry a surplus forward at this time. No one in

this House, or in the province, should lose sight of the fact that the

alternative to a surplus today could be a deficit tomorrow, and a

deficit means imposing an interest-cost burden or increased taxes on

the taxpayers of British Columbia. As circumstances change and our

fiscal planning for the coming years proceeds, it may be possible to

inject further funds into the economy.

This government has successfully used the revenue sur-

[ Page 1373 ]

plus account to stabilize the growth of provincial

expenditures and the economy. I shall be giving thought during the year

to formalizing and extending this practice, possibly through creation

of a revenue stabilization fund. All natural resource revenues could be

channelled into such a fund, and the government could draw upon it to

finance ongoing public services and economic development initiatives.

That is the general fiscal stance for this budget. Now let me deal

with more specific policy priorities, beginning with the economic

policy and programs area.

British Columbia's natural resources have been a driving force

behind our solid growth performance for decades and, with careful

management, will play an important role for many years to come.

In view of concerns which I expressed earlier about the depletion of

our forest resources, this government has made improved forest

management a major priority in this budget. Consequently, $388 million

is being allocated this year as the first stage in a five-year, $1.4

billion forest management program. Funding for the coming year — that's

the first of five — will be provided from three sources.

First, $157 million will be allocated to the Ministry of Forests, an

increase of $32 million over last year's budget estimate. The

Ministry's estimates include funding for the five-year, $50 million

Canada–British Columbia Subsidiary Agreement on Intensive Forest

Management.

Secondly, $84.1 million will be allocated from stumpage revenue for

reforestation and other projects related to forest management. The

practice of allowing private companies to claim credits for certain

expenditures against stumpage will be modified to give the government

greater flexibility in the use of Crown revenue. The government will

now be able to choose between undertaking projects directly, or

contracting with private industry to have the job done. Either way, the

Ministry of Forests will be better able to ensure that the interests of

all British Columbians are guarded in the management of our forest

estate.

Thirdly, $146.6 million from the 1979-80 revenue surplus will be

placed in a new Forest and Range Resource Fund. Included in the fund

expenditure in 1980-81 is $1.45 million for Forintek Canada, that, as

you know, is a research laboratory dedicated to applied research in the

forestry area. The research of Forintek has been, and will continue to

be, of great value to this province and to the forest industry. The

government of British Columbia stepped in to support this forest

This forward-looking program will be the most substantial investment

ever made for the protection of our valuable resource base. Of the $1.4

billion to be spent over five years, some $785 million will come from

the regular ministry budgets, $448 million will be returned from

stumpage revenues into forest management; and the remainder will come

from the Forest and Range Resource Fund to be created by legislation to

be introduced during this session by my colleague, the Minister of

Forests (Hon. Mr. Waterland). Expenditure from the Forest and Range

Resource Fund will be directed toward silviculture, protection against

fire and pests, improved harvesting, improved range management and

other forest management responsibilities.

Resource enhancement in the fisheries area will also be continued

this year. The Salmonid Enhancement Program, funded jointly with the

federal government, and intended to double salmon stocks in British

Columbia waters, will be allocated $2 million in 1980-81. In addition,

$1.95 million is included in the estimates for a new Fisheries Economic

Development Program to enhance commercial utilization of aquaculture,

groundfish and marine plants.

Agriculture represents another important renewable resource sector.

Because of our limited arable land, it is extremely important that it

be utilized effectively.

The Ministry of Agriculture is to have its mandate enlarged to

include responsibility for the food industry, as well as re-organizing

its structure to improve the delivery of services to our farmers. A new

field operations service, with increased emphasis on program

development at the regional level, has been established to assist

producers in improving the utilization of their agricultural resource.

An economics and marketing service has also been established to

emphasize efforts to improve markets for British Columbia farmers. The

Agricultural Land Commission will be updating soil and agricultural

capability maps to provide an accurate and detailed inventory of the

various classes of arable land.

In addition to programs for enhancement of our renewable resource

base, high priority will be placed upon measures to diversify British

Columbia's industrial base. Through encouraging industrial activities

such as resource upgrading, high-technology industries, tourism and

other service industries, British Columbians will be able to enjoy more

stable, secure and high-quality employment in the future.

The creation of the Ministry of Universities, Science and

Communications marked an important step in this government's drive to

make British Columbia a centre for scientific research and

high-technology industry. As a further initiative I am allocating $6.5

million from revenue surplus for scientific research in 1980-81. Of

this total, $3.5 million will be provided to the Science Council of

British Columbia for grants in support of applied research in industry

and universities. The British Columbia Research Council will be granted

an additional $1 million for applied research leading to the economic

advancement of the province. The balance of $2 million will be used to

assist universities in acquiring modern scientific research equipment.

Our visitor industry continues to be an important and growing source

of economic activity in British Columbia, and efforts to exploit its

growth potential will continue in the coming year.

The Ministry of Tourism is developing a tourism strategy that will

include the promotion of British Columbia's scenic and recreational

assets both in Canada and abroad. The five-year $50 million British

Columbia-Canada Travel Industry Development Subsidiary Agreement

continues to provide funding for expansion of facilities and

development of all-season tourist sites. The budget for 1980-81

provides $17.1 million for this purpose, with major projects to include

facilities at the Whistler ski resort area.

To accommodate increasing demand and high utilization rates for

British Columbia parks, the Ministry of Lands, Parks and Housing will

be allocated $6.5 million from revenue surplus for the first year of a

three-year accelerated park development program. This program will

provide increased tourist and recreational opportunities through the

improvement and expansion of the provincial parks system.

Mr. Speaker, you will know that British Columbia is also making major strides

toward establishing itself as a focal point for trade fairs, conventions and

recreational events. At this time three major projects are being planned: British

[ Page 1374 ]

Columbia Place, the Pacific Rim trade and convention centre and the Victoria conference and trade centre.

Financing arrangements are nearing completion for the Pacific Rim

centre at Pier B-C in Vancouver. Agreement on federal and local

government participation has now been reached, and the province has

committed a further $8.5 million to help cover construction costs. This

brings total provincial assistance to $18.5 million. A further $300,000

per year for five years has been promised to assist in covering

operating deficits. Work is expected to begin in the fall of 1980, and

some 800 construction jobs should be created.

Further provincial commitments have also been made to the Victoria

conference and trade centre. Last year in this House $2.5 million was

transferred to the Victoria trade and convention centre fund, and a

further $2 million was committed in January. The province is also

contributing land valued conservatively at $1.7 million. Federal

participation is sought, and construction on this centre is to commence

before the end of June 1980.

In last year's budget $25 million was allocated to the lower

mainland stadium fund. Since that initial commitment the government has

decided to proceed with a covered multipurpose amphitheatre on the

False Creek site in downtown Vancouver. This 60,000-plus seat

amphitheatre is part of British Columbia Place, a much broader project

to encompass redevelopment of the north shore of False Creek and the

improvement of lower mainland public transit. In this budget the

government is proposing increased funding for this exciting project.

First, an additional $25 million will be allocated to the existing

stadium fund. Secondly, $15 million will be provided to a new

corporation to oversee development of British Columbia Place.

Legislation will be introduced to establish this corporation. In

addition the government will secure the land for this development by

negotiating land exchanges with the present owners.

In 1986 British Columbia Place will stage a world exposition on

transportation, Transpo '86, and in the same year will serve as the

focal point for celebrations marking the centennial of the inception of

Montreal-to-Vancouver rail service.

Approval in principle has been received from the Bureau of

International Expositions in Paris for holding Transpo '86 in

Vancouver. This budget provides $500,000 for studies, planning,

negotiations and related matters for Transpo. Legislation will be

introduced by my colleague to establish a non-profit corporation for

this purpose.

In addition to providing impetus for the overall development of

British Columbia Place, Transpo '86 will attract tens of thousands of

visitors to Vancouver. Similar expositions elsewhere have proven to be

financially self-supporting as well as providing lasting facilities and

heightened awareness of tourist attractions in the area.

But a great deal of effort and imagination will be required from

individuals, from businesses and from all levels of government in order

to bring this project to fruition. I am confident we shall succeed.

An important aspect of industrial diversification must involve

further processing of mineral resources in British Columbia. Further

processing ensures greater stability of employment, more and better

jobs for our workforce, and increased benefits from natural resources

to all British Columbians. To encourage resource upgrading, a

processing allowance equal to 8 percent of the original capital cost of

processing assets will be allowed under both the Mining Tax Act and the

Mineral Resource Tax Act. In addition, the maximum annual processing

allowance limits will be changed to benefit producers who process their

output beyond the raw material or concentrate stage.

To assist small business within the mining sector, the current

income exemptions under the Mining Tax Act and Mineral Resource Tax Act

will be raised to $50,000 of annual taxable income. Clearly this will

remove a tax burden from small independent operators.

Encouragement of small business will continue to be an important

element of the province's economic policy. Great impetus to industrial

growth and innovation comes from the actions of individual

entrepreneurs and small companies. A number of initiatives are

therefore proposed today to help this sector of the economy.

Firstly, enabling legislation will be introduced to permit the

creation of registered small business venture capital corporations in

British Columbia. Such corporations will provide an important new

source of financing to assist small businesses to realize their growth

potential. For the 1980 and subsequent taxation years, British Columbia

residents and/or corporations will be allowed a credit against income

tax for shares purchased from a registered small business venture

capital corporation. The cooperation of the federal government will be

sought to accommodate administration of this program under our tax

collection agreements.

Secondly, and with a great deal of pride, I announce that this

government will institute the standard commercial practice of paying

interest on bills received that remain unpaid after 60 days. This

measure will encourage ministries to pay their bills more promptly and

will reduce the interest burden on companies, particularly small

companies, which have found it difficult to cope with delays in payment.

Thirdly, and most important, the income tax rate on small business

will be reduced from 12 to 10 percent, retroactive to January 1, 1980.

This action will give a further incentive to those willing to seek out

opportunities and to take risks.

As the government's recent energy statement pointed out, British

Columbia has, by world standards, a rich and diverse energy potential

ranging from natural gas and coal to renewable hydroelectricity and

wood waste. With this energy advantage the province is in a strong

position to attract industrial investment directed toward rapidly

expanding markets in western Canada and the Pacific Rim. Further, our

energy resources are sufficient to meet the needs of our citizens for

many years without recourse to nuclear power generation. We do not need

nuclear power in the foreseeable future, and this government is opposed

to its development in or near British Columbia.

However, British Columbia remains dependent on oil imported mainly

from Alberta. To increase our energy security the government has

established a policy framework for developing British Columbia's own

untapped potential and reducing our dependence upon oil.

A major element in achieving energy security will be significantly

expanded research and development efforts. The government is moving

immediately to establish an energy development agency, chaired by the

Minister of Energy, Mines and Petroleum Resources (Hon. Mr.

McClelland), to coordinate and direct all government energy research

and development activity. An amount of $10 million will be made

available to the agency in 1980-81 through a new energy development

fund. This money will be in addition to that included in the research

budgets of individual ministries

[ Page 1375 ]

and will support demonstration and development of

alternatives to gasoline as well as enhancing existing government

energy conservation and oil substitution programs.

Let me outline the other energy security initiatives to be funded in this budget.

British Columbia is rich in natural gas but oil reserves are

declining. Therefore $1.5 million will be provided for a pilot project

to examine methods of recovering more oil from existing wells.

In addition, $1.8 million will be provided to accelerate

construction of the Sierra-Yoyo Road and ensure year-round access to

natural gas fields in the northeastern part of the province.

Over the next four years the province, working jointly with the

federal government, will continue to implement a $27 million program of

energy conservation and renewable energy technology development. In

1980-81, $3.1 million will be provided for this purpose.

Energy conservation will also be encouraged through a number of tax measures which I am introducing in this budget.

First, as a means of encouraging conservation of gasoline use in

passenger automobiles, the sales tax rate applied to the purchase of

new automobiles will be altered to favour more fuel-efficient vehicles.

Effective midnight tonight, new cars with high fuel-efficiency ratings

will be subject to a reduced social services tax rate of 2 percent. New

cars with poor fuel-efficiency ratings will be taxed at a 6 percent

rate, while vehicles with mid-range fuel consumption ratings will

remain subject to the general 4 percent social services tax levy.

Recreational vehicles, vans, trucks, buses and used vehicles will

continue to be taxed at the general social services tax rate.

Energy conservation and conversion will also be encouraged through

selective sales tax exemptions. Effective midnight tonight, the

following items will be completely exempt from the social services tax:

wood- and coal-burning stoves and furnaces, including fireplace

inserts; storm windows and storm doors; multiglazed windows and doors;

heat pumps used in heating and cooling systems for buildings; heat

recovery units or devices; time-controlled thermostats used for heating

systems; automatic timer controls for certain electric lighting

systems; wind-powered generating equipment; propane converter kits for

motor vehicles, specific equipment used exclusively in solar heating

systems; and thermal insulation material not already exempt.

Further, to cushion the impact of high energy costs on the people of

British Columbia, and to encourage the use of energy forms other than

oil, residential natural gas and electricity billings will no longer be

subject to the provincial social services tax, effective midnight

tonight. Home heating oil is not presently subject to the social

services tax, but is subject to a small one-half cent per gallon levy

under the Fuel-oil Tax Act. This tax, Mr. Speaker, will be repealed at

midnight tonight. It is hoped that many people now heating with oil

will convert to other fuels as soon as it is possible to do so.

Finally, I have instructed officials in the Ministry of Finance to

undertake a thorough review of the taxation of fuels by the province,

including coloured gasoline.

Although the province has taken these important steps to secure our

energy future, many important energy decisions, such as the pricing of

oil, will be taken at the federal level. The questions of how high the

price is raised, what is done to prevent windfall profits and how extra

revenue is to be used are matters for federal-provincial discussion.

Along with my colleague the Minister of Energy, Mines and Petroleum

Resources, I plan to put forward British Columbia's views on these

matters to the new federal government. Our position will be made very

clear on one issue: that federal taxation of British Columbia's natural

gas, beyond that currently applied to natural gas producers through the

income tax system, is unacceptable. Such taxation would substantially

reduce revenues accruing to the people of this province and limit our

capacity to develop energy programs unique to our particular situation.

As I indicated earlier, if we are to seize many of the opportunities

available to us in the 1980s, a number of actions are needed now. This

means public investment in facilities is required to support the

developmental patterns planned for the future.

Transportation will continue to have a high priority with this

government. The Ministry of Transportation and Highways is preparing a

transportation policy to ensure proper development of a total

transportation system for the province.

Highway construction will be funded at a record level in the coming

year with $215 million provided for this purpose in the estimates, and

a further $100 million from revenue surplus. My colleague the Minister

of Transportation and Highways (Hon. Mr. Fraser) will be elaborating on

highway construction and maintenance priorities during this session of

the Legislature.

One of the critical elements of the government's efforts to develop

the northern regions of the province has long included the need for a

major port at Prince Rupert. After extensive discussion and negotiation

with the federal government and other western provinces, construction

of grainhandling and other bulk-loading facilities has finally been

started on Ridley Island. The estimates for 1980-81 provide $4 million

for off-site services and an additional $4 million for access roads.

The federal government is expected to assume responsibility for the

grain-handling facility.

The government is providing $20 million by statutory appropriation

for support facilities associated with northeast coal development.

Several companies have made progress in negotiating contracts with

countries such as Romania, France, Japan and Korea. The government now

stands ready to invest these funds, as required, to expedite

development.

Northern development will also be encouraged by the $14 million

allocated for reconstruction and operation of the Fort Nelson extension

of the British Columbia Railway. It is expected the upgrading of this

vital transportation link will be completed this year or in early 1981.

The British Columbia Railway has played an important role in opening

up the more remote regions of the province. In doing so it has had to

make large investments in facilities before they could be operated

profitably. The burden of debt on these investments has been a barrier

to good financial management and to the continued success of the

railway. The government therefore proposes to introduce legislation at

this session to provide for the province's ongoing commitment to the

interest costs and retirement of the British Columbia Railway's

historic debt. An amount of $70 million will be provided toward fiscal

year 1980-81 costs by way of a special appropriation.

Finally, air transportation services for smaller communities will be assisted in 1980-81 by $3.4 million being

[ Page 1376 ]

made available from the revenue surplus for the Local Airport Assistance Program.

Mr. Speaker, I should like to turn now to this government's

priorities in the area of education and manpower planning. I remarked

earlier that one of the most valuable resources we have in this

province is the skill and energy of our people. Many government

programs represent investments in our human resources that are more

important to the economy than investments in natural resources.

The education system will receive increased financial support in the

coming year with major increases provided for colleges and provincial

institutes. These institutions are providing programs to meet the high

public demand for vocational and career training. Such training is

essential to ensure a proper match between the skills and career plans

of individuals in the labour force and the needs of industries in the

future.

This budget provides $232 million for colleges and provincial

institutes in 1980-81. In 1979 the provincial government assumed

responsibility for the school district portion of college budgets. With

this move the province increased its financial commitment to a program

area that is experiencing rapid growth in demand from the public. I

welcome this growth, and my colleagues do as well, especially in light

of the high level of job relevance in the college system and the

importance of this system to the future of the province.

The three public universities, now under the new Ministry of

Universities, Science and Communications, will receive funding of $262

million for 1980-81. The funding increase for universities will enable

them to continue standards of excellence established in the past.

In addition, $1.2 million will be made available from the revenue

surplus for the Open Learning Institute. This post-secondary

institution is expanding educational opportunities in all regions of

the province.

The public schools system receives $684 million in this budget,

almost one-eighth of the entire budget estimates and an increase of 6.7

percent from the spending level in the current fiscal year. Independent

schools provide a valuable alternative to public schools and will

receive $11 million in the coming year.

In the area of manpower planning, the Ministry of Labour has

reviewed the market for skilled people in British Columbia and

identified areas of shortage. To correct this situation the province

established and appointed members of the Provincial Apprenticeship

Board, which is now studying alternative proposals to revitalize

apprenticeship programs for the 1980s. The Ministry of Labour will

receive $41.5 million for apprenticeship training and employment

opportunity programs, $4.5 million of which will come from revenue

surplus funds.

Finally, funding has been provided to the Science Council of British

Columbia for awards to graduate students working in industry as well as

providing post-doctoral fellowships to bring universities and

high-technology industries closer together in British Columbia.

A serious problem which continues to hurt British Columbia's economy

is the persistence of high interest rates in both Canada and the United

States, and that is no news to this House. I can say, however, that the

government of British Columbia took dramatic action in its

determination to do more than complain about the situation.

In January of this year the Premier announced a $200 million program

to provide low-interest 9 3/4 percent mortgages for the construction of

new homes. That program represents a major step toward reducing the

impact of high interest rates on British Columbia home buyers while, at

the same time, stimulating employment and incomes in sectors which have

experienced difficulty in recent months.

That is not the only initiative designed to help offset the problems

posed by high interest rates. We shall also continue to assist home

buyers and housing construction through the Provincial Home Acquisition

Fund. This fund, with assets of over $300 million, will provide an

estimated $40 million in 1980-81 for home purchase grants and second

mortgage loans to assist persons who want to own their homes.

Small business is obviously also hurt severely by high interest

rates. In addition to the introduction of provisions for venture

capital corporations we are budgeting for expanded programs to assist

small- and medium-sized business in British Columbia. Expenditure will

be increased in 1980-81 under the Industrial Development Subsidiary

Agreement, part of which will go toward provision of low-interest loans

to small business in certain designated regions. British Columbia's own

Low Interest Loans Assistance program for non-metropolitan areas will

continue to be funded through the British Columbia Development

Corporation at a level of $4 million. This program, which provides

loans to small business at one-half the chartered bank prime rate, is

particularly valuable as an offset to the federal government's current

high interest rate policy.

An additional $10 million will be made available from the revenue

surplus for assistance to small- and medium-sized business in

metropolitan areas of the province. Five million dollars of this will

be used to continue expanded coverage of the Low Interest Loans

Assistance program, and the remaining $5 million will be applied to a

new program of assistance to small manufacturers.

The federal government should follow this government's lead in

softening the impact of high interest rates on those hardest hit. The

suggestion which was contained in the December budget, that the federal

government introduce development bonds to assist small business, should

be considered by the new federal government.

Finally, in agriculture the effects of high interest rates are being

cushioned by the Agriculture Credit Program. Because of high interest

rates charged farmers by financial institutions, the $7.7 million

provided in the 1979-80 budget for interest reimbursement was exceeded

by $9 million. An amount of $23.2 million will therefore be provided

for 1980-81.

Having outlined policies and programs to support the economy and

develop the province's wealth, I would like now to deal with social

development. This government's social programs are fundamentally

concerned with the health and the well-being of our people. Of

particular concern are the elderly, the handicapped, those on low

incomes, and other disadvantaged groups in our society.

Turning to health and hospital care, this government's commitment to

high-quality services and facilities for our citizens is expressed

clearly by the provisions made in this budget. The Ministry of Health,

Mr. Speaker, will receive $1.55 billion in 1980-81, an increase of $226

million over forecast expenditure for the current year and the largest

commitment in this budget to any single ministry.

The most rapid rate of increase is in medical care, where $345

million is to be allocated to the Medical Services Commission for an

increase of 21 per cent. This increase reflects, in part, increased

utilization of the service. But it

[ Page 1377 ]

also reflects the fact that this government has not increased premiums since 1976.

I would observe that the medical-care system is working well in

British Columbia. Unlike a number of other provinces, we have not

experienced the problem of doctors opting out of the medicare system.

This government continues to be committed to the provision of good,

affordable medical coverage for all the people of British Columbia.

Mr. Speaker, this commitment also extends to our province's hospital

facilities. More than three-quarters of a billion dollars is allocated

in this budget for hospital programs, and capital financing of $100

million will be provided for hospital construction projects. Sir, over

the next five years the province will be continuing with the largest,

most costly hospital construction program in British Columbia's

history. Through this program 1,700 extended-care beds will be

provided, increasing the total by almost 25 percent. This will free an

almost equivalent number of acute-care beds to augment the 500 net

additional acute beds planned for this period. Further easing of the

hospital bed needs of our people is being achieved through the

continued extension of the home-care program.

This government is concerned, Mr. Speaker, about the rate of

increase in health costs and is determined to deal with this problem,

but not at the expense of jeopardizing our high level of services. In

fact, efforts planned to control costs will improve the health-care

system by providing a better balance of services. For example, $161.8

million, up 25 percent from current-year expenditure, is included in

the estimates for long-term care. Within that program the increased

funding for home care will ensure provision of services in the home to

prevent or delay expensive hospitalization.

Health promotion and education will be increased to encourage

responsible use of expensive services and the avoidance of unhealthy

lifestyles. Increased preventive health services will be provided by

the health units throughout the province, and $39 million is included

in the budget for these purposes.

Finally, as promised in the throne speech, a dental care assistance

program will be introduced this coming year; $30 million has been

allocated for this purpose. The cost of this program in a full year is

expected to be substantially higher.

The Human Resources ministry will receive $762.9 million in 1980-81, 17.4 percent higher than anticipated 197980 expenditures.

The health services component of the Human Resources budget is

increased substantially to cover the cost of Pharmacare. Also in health

services is an additional provision for appliances, wheelchairs and

other prescribed items, to assist handicapped persons to remain in

their homes rather than moving to institutional care facilities. A

further $1.4 million is provided for increased subsidies to achievement

centres for handicapped persons.

The major portion of Human Resources expenditure is devoted to

income maintenance programs, which are allocated $53.3 million above

the 1979-80 estimates. This will cover the 50 percent increase in the

renter's tax credit, introduced last year, as well as planned rate

increases for income assistance recipients.

The budget provides for significant increases in services for

families and children. The rehabilitation resources program provides

funding to allow the needs of handicapped children to be met in local

or community schools. Provision is made for new residential resources

for children and for increased assistance for parents of handicapped

children. Increased foster-home rates and higher day-care subsidy

levels are also accommodated in the Human Resources estimates.

This government has long supported the principle of maximum local

autonomy in government. We stress this principle in relations with the

federal government, and our approach to local government reflects the

same philosophy. British Columbia's revenue-sharing arrangement with

the municipalities is unique in Canada, and I'm proud of having played

a

part in its establishment.

This budget today gives a major boost to local governments, with

funding for the Ministry of Municipal Affairs increasing by almost 53

percent. Through the Revenue Sharing Fund, municipalities share in the

revenue strength of the provincial government. This fund will receive

$176.2 million in 1980-81; that alone is an increase of 24 percent from

the current-year allocation. The revenue-sharing formula generates

$167.5 million from the coming year's provincial revenue, and $8.7

million is provided for adjustments in respect of 1978-79 fiscal year

revenue.

The Urban Transit Authority is budgeted to receive $69 million in

1980-81 to reflect the provincial contribution of 75 percent of the

shareable deficits of local transit systems. With the metropolitan

transit systems coming under this program on April 1, 1980, the

organizational arrangements will be in place for transit developments

in the 1980s. Although we cannot predict today what form future transit

systems will take, it is clear that in future years circumstances may

require large capital expenditures on urban transportation networks.

Therefore it is proposed to set aside $55 million in a special fund to

be devoted to covering the province's contribution to the future

capital requirements of the Urban Transit Authority.

To remain vital centres of growth, our major cities must be served

by a balance of the private automobile and public transportation

systems. Neither must be neglected, since neither alone can fill the

needs of all our citizens. It is for this reason that $30 million of

revenue surplus will be allocated in this budget to a fund for an

additional crossing of the Fraser River, in the vicinity of Annacis

Island. The full cost of this development is estimated to be about $130

million over the four-year construction period. Funding in 1980-81 will

provide for the first stage of this project.

As a step in ensuring the continued vitality of central city areas,

$25 million will be provided in a fund for a special program of

downtown revitalization. Grants under this program will be made to

municipalities for the provision of public facilities in designated

downtown improvement areas. Grants will also be made to reduce the

interest costs faced by private owners who borrow funds to restore

building exteriors in these areas.

Through direct grants to municipalities and school districts, Mr.

Speaker, and by the homeowner grant, the province is playing a major

role in restraining the growth of local taxation. Direct grants to

school districts will increase $29 million in 1980-81, restricting the

increase in the basic mill rate. The $100 increase in the homeowner

grant introduced last year is maintained in this budget, and as a new

measure the homeowner grant will be increased by a further $50, to

$630, for the elderly, the handicapped now receiving GAIN, and war

veterans.

In addition to the revenue and expenditure measures

[ Page 1378 ]

already announced, a number of other changes are proposed at this time.

Mr. Speaker, the following additional exemptions under the Social Services Tax Act will benefit a great many British Columbians.

It is proposed to exempt patent medicines, since these items are

required for health reasons by a large number of people. A detailed

list will be provided by regulation.

At the present time, used mobile homes are subject to tax if

purchased from a dealer, but not subject to tax when purchased on a

mobile-home site. This inequity will be ended by exempting all sales of

used mobile homes.

The monthly telephone rental charge is presently taxed in every

province where a sales tax is levied. Since many people are very

dependent on the telephone, especially the elderly, this is an

opportune time to exempt residential telephone rental charges from the

social services tax. Long distance calls, Mr. Speaker, are already

exempt in British Columbia, although taxed in most other provinces.

I outlined earlier a number of the planned expenditures from revenue

surplus in 1980-81. Funds will also be made available from revenue

surplus for the following:

The Refugee Settlement Program will receive $2.65 million to provide

special educational, health and employment services primarily to the

southeast Asian refugees accepted in British Columbia.

The Recreational Facilities program will receive an additional $5

million to assist communities in the construction of centres for

leisure-time activities.

A new $3 million fund to assist computerization in public libraries throughout the province will be established.

The Elderly Citizens' Housing Assistance program will be augmented

by $1 million to accelerate the construction of non-profit society

housing for low-income senior citizens.

Five million dollars will be made available to the new Barkerville

Historic Park Development Fund. This money will go toward renovations

and capital projects at this historic Cariboo gold rush site.

A second instalment payment of $26.1 million to retire the provincial direct debt will be made on May 1, 1980.

Interjections.

HON. MR. CURTIS: Would you call this House to order, sir?

MR. SPEAKER: Order, please, hon. members. We have been progressing so well; let's continue.

HON. MR. CURTIS: Mr. Speaker, this is my

part in the debate. They'll have their chance.

Other significant tax and administrative changes proposed by this

government include: an amendment to the Taxation (Rural Area) Act to

eliminate the duplicate assessment of coal land; amendments to the

Insurance Premiums Tax Act to conform to the basis of assessment

prevailing in other provinces and to introduce tax instalment payments;

elimination of fees payable under the Probate Fees Act; and an

amendment to ensure the Employment Standards Act takes precedence over

the Social Services Tax Act in bankruptcy situations. Further details

of these measures are contained in the appendix to the budget.

Several amendments to the Corporation Capital Tax Act to promote

greater administrative efficiency and to afford more equal tax

treatment to similar types of financial firms are also proposed.

Effective January 1, 1980, the tax assessed on banks and trust and loan

companies will be levied on a common capital base consisting of paid-up

capital stock, rest and/or reserve accounts, and retained earnings.

These firms will no longer be required to pay the capital tax on

deposits held by their shareholders or by any other corporation.

To offset the revenue loss of the proposed amendment, the capital

tax rate applicable to these institutions will be increased. Effective

January 1, 1980, chartered banks will be subject to a levy of

four-fifths of 1 percent on the value of their redefined paid-up

capital, while loan companies, trust companies and trust and loan

companies will be subject to an increased rate of three-fifths of 1

percent. A system of instalment payments will also be introduced for

this tax.

Finally, a new Financial Control Act will be introduced into the

Legislature during the coming session. The purpose of the act is to

modernize all accounting and control procedures of the government and

to make the government more accountable to this House and to the people

of British Columbia.

Since this government took office in late 1975, high priority has

been given to federal-provincial relations. Both senior levels of

government in Canada have important legislative and jurisdictional

large number of areas that are vital to the development of the province

and the well-being of our citizens — unlimited powers of taxation,

authority to set rules and levies governing international trade,

policy-making authority over international and interprovincial

transportation, very significant spending power, and control over

Canada's monetary policy and interest rates.

The next few years will see important decisions made at the national

level and it will be of utmost importance to ensure that the interests

and concerns of British Columbians are appropriately reflected. The

federal election results could make this more difficult, and the

government of British Columbia will therefore have to pursue

intergovernmental affairs with increased vigour.

In recognition of the critical importance of federal-provincial

relations, this government has created a new Ministry of

Intergovernmental Relations. The ministry will be responsible for

British Columbia House in Ottawa and will assume the complex task of

coordinating the province's affairs with other governments. The

estimates provide the necessary funds for administering this important

ministry.

As Minister of Finance, I expect to be playing an active role in

federal-provincial consultations and negotiations on economic and

financial matters. Therefore I should like to outline briefly the areas

of priorities that I see for the coming year.

A first priority of the new federal government should be the

introduction of a budget. In this regard the defeated December budget

had many valuable elements that should not be thrown aside by the new

government. For the first time a federal jurisdiction brought a

medium-term perspective to their financial affairs and presented a plan

for dealing with the large federal deficit. These were important

innovations that should be part of the new budget when it is presented.

I should also like to see the budget contain measures to offset the

adverse impacts of high borrowing costs until such time as the federal

government is able to bring down interest rates.

Certainly the new federal budget should include clarification of

federal energy policy and, in particular, the domestic oil pricing

issue. As I mentioned earlier, I am concerned with

[ Page 1379 ]

the fiscal and economic impact on British Columbia

of national energy decisions, and I would welcome a federal-provincial

meeting of finance ministers to discuss these and other matters before

the federal budget is introduced.

Canada and British Columbia will benefit from the implementation of

the new multilateral trade arrangements. Under these, an agreed program

of tariff reductions will be implemented. However, the government of

Canada retains a significant amount of flexibility in the design of

this country's non-tariff barriers to trade, adjustment assistance

programs and trade promotion efforts. The approach taken by the federal

government to these issues could be a crucial factor affecting our

trade opportunities in the 1980s. British Columbia has made substantial

contributions to federal-provincial discussions on trade matters, and

we shall continue to emphasize the benefits of freer trade for the

province and Canada as a whole.

A new budget, an energy strategy and a trade policy are clearly

priority items, not just for British Columbia but for the whole

country. For this province there are also a number of local issues that

deserve the early attention of the new national government.

First, we are looking to that new government to commit funds to the

development of British Columbia Place. This government has made a major

financial commitment, but federal financial support is both necessary

and appropriate. It is our view that the taxation and cost-sharing

arrangements made for Expo '67 Montreal should serve as the basis for

financing Transpo '86. We look forward to early negotiations on the

subject with the federal authorities.

Secondly, we look to the federal government to reintroduce the

special capital cost allowance on MURBS — multiple unit residential

buildings — or to provide similar measures to help alleviate the

difficult rental situation in British Columbia.

Thirdly, we shall be negotiating with the new government for a

shared-cost agreement covering public investment in structures relating

to the development of this province. It is our view that economic

development funds should be directed increasingly toward areas of

potential economic strength. British Columbia has that potential in the

1980s, and we shall be seeking federal cooperation toward its

realization.

Discussions should also begin this year on matters of longer-term

significance. A number of fiscal arrangements between the federal

government and all provinces expire at the end of 1981-82. British

Columbia has drawn attention to some weaknesses in the present

arrangements and we shall be looking for an early start to those

negotiations.

Finally, the province will continue, largely through the Ministry of

Intergovernmental Relations, to play a major role in federal-provincial

constitutional discussions. Ultimately, changes to the constitution

will be the most effective means of ensuring that the needs and

aspirations of British Columbians are reflected in national decisions.

In the near-term British Columbia will be seeking to continue

discussions on the transfer of offshore mineral rights to the province.

Now, Mr. Speaker, let me summarize, as briefly as possible, some of

the major themes of this budget: the provision of adequate economic

stimulus for 1980, while retaining funds necessary to carry on

responsible budgets in the years ahead; actions to enhance and improve

our renewable resource heritage; programs and initiatives for

diversifying our industrial base to provide a more secure and

satisfying employment future for our work force; specific incentives

and other measures to ensure energy security while at the same time

cushioning the impact of energy price escalations on the people of this

province; investment in developmental facilities needed to seize

opportunities and meet the challenges of the 1980s; measures to train

and educate our work force and young people so they may participate in

the prosperity of British Columbia; programs to soften the impact of

high interest rates, particularly on individuals and small business;

the most substantial investment in hospitals and our health-care system

in the province's history; continued emphasis on programs to improve

the well-being of the poor, the elderly, the handicapped and other

disadvantaged groups in our society; unprecedented levels of assistance

to ensure that local government is able to provide a high level of

service while retaining its autonomy; new administrative procedures to

increase the efficiency and effectiveness of government; renewed

emphasis on federal-provincial financial and economic relations to

ensure the interests and aspirations of our citizens are reflected in

national government policies.

In conclusion, this budget represents a strong statement of

confidence in British Columbia. It is a budget which builds for our

people in the 1980s and prepares for the opportunities and challenges

ahead. It is, most of all, a budget which serves the people of British

Columbia in a responsible, sensitive and forward-looking way.

Bold new steps are taken to provide for British Columbians today and

build for a better tomorrow. Taxes are not being increased to do all

this; we are simply putting the rewards of good management and a strong

economy to work. We are investing our surplus resource revenues

directly in this province's economic future.

It is a new style of budget and it is my hope that it will lead to a

better understanding of government initiatives and policies. A great

deal of information is presented both here and in the budget background

paper. My objective is to be more open, and share with all British

Columbians the factors and rationale behind the policies and programs

this government is putting forward. A good dialogue should follow, and

we can work together to build a better, more secure future for all.

Mr. Stupich moved adjournment of the debate. Motion approved.

MR. SPEAKER: Hon. members, in order that the proper documents can be distributed, I declare a short recess. The House recessed at 4:40 p.m.

The House resumed at 4:48 p.m.

Introduction of Bills

FINANCE STATUTES

AMENDMENT ACT, 1980

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Finance Statutes Amendment Act, 1980.

Bill 2 introduced, read a first time, and ordered to be

[ Page 1380 ]

placed on orders of the day for second reading at the next sitting of the House after today.

SOCIAL SERVICE TAX

AMENDMENT ACT, 1980

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Social Service Tax Amendment Act, 1980.

Bill 3 introduced, read a first time, and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

CORPORATION CAPITAL TAX

AMENDMENT ACT, 1980

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Corporation Capital Tax Amendment Act, 1980.

Bill 4 introduced, read a first time, and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

SPECIAL PURPOSE

APPROPRIATION ACT, 1980

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Special Purpose Appropriation Act, 1980.

Bill 5 introduced, read a first time, and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

SPECIAL FUNDS ACT, 1980

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Special Funds Act, 1980.

Bill 7 introduced, read a first time, and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

CROWN CORPORATIONS BORROWING

AUTHORITY INCREASE ACT

Hon. Mr. Curtis presented a message from His Honour the Lieutenant-Governor:

a bill intituled Crown Corporations Borrowing Authority Increase Act.

Bill 9 introduced, read a first time, and ordered to be placed on

orders of the day for second reading at the next sitting of the House

after today.

Hon. Mr. Gardom moved adjournment of the House.

Motion approved.

The House adjourned at 4:53 p.m.

ERRATUM

Volume 3, Number 5: March 5, 1980, Afternoon sitting.

Page 1268: Duplication of text from last paragraph of first column to beginning

of page 1269.

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