1983 Legislative Session: 1st Session, 33rd 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 )

THURSDAY, JULY 7, 1983

Afternoon Sitting

[ Page

159 ]

CONTENTS

Routine Proceedings

Tabling Documents.

Public accounts, March 31, 1982.

Hon. Mr. Curtis –– 159

Comptroller-general's interim financial statement, March 31, 1983.

Hon. Mr. Curtis –– 159

Estimates of Sums Required for the Service of the Province.

Hon. Mr. Curtis –– 159

Budget address.

Hon. Mr. Curtis –– 159

Tabling Documents.

Statutory report of the investment portfolio of the province, March 31, 1982.

Hon. Mr. Curtis –– 167

Budget debate.

Mr. Stupich –– 167

Public Sector Restraint Act (Bill 3). Hon. Mr. Chabot.

Introduction and first reading –– 168

Public Service Labour Relations Amendment Act, 1983 (Bill 2). Hon. Mr. Chabot

Introduction and first reading –– 168

Pension (Public Service) Amendment Act, 1983 (Bill 18). Hon. Mr. Chabot.

Introduction and first reading –– 168

Compensation Stabilization Amendment Act, 1983 (Bill 11). Hon. Mr. Curtis.

Introduction and first reading –– 168

Harbour Board Repeal Act (Bill 25). Hon. Mr. Phillips.

Introduction and first reading –– 168

Crown Corporation Reporting Repeal Act (Bill 21). Hon. Mr. Gardom.

Introduction and first reading –– 168

Alcohol And Drug Commission Repeal Act (Bill 8). Hon. Mr. Nielsen.

Introduction and first reading –– 168

Medical Services Act (Bill 24). Hon. Mr. Nielsen.

Introduction and first reading –– 168

Motor Vehicle Amendment Act, 1983 (Bill 23). Hon. A. Fraser.

Introduction and first reading –– 168

Residential Tenancy Act (Bill 5). Hon. Mr. Hewitt.

Introduction and first reading –– 168

Employment Development Act (Bill 16). Hon. Mr. Curtis.

Introduction and first reading –– 169

Gasoline (Coloured) Tax Amendment Act, 1983 (Bill 14). Hon. Mr. Curtis.

Introduction and first reading –– 169

Social Service Tax Amendment Act, 1983 (Bill 15). Hon. Mr. Curtis.

Introduction and first reading –– 169

Tobacco Tax Amendment Act, 1983 (Bill 13). Hon. Mr. Curtis.

Introduction and first reading –– 169

Provincial Treasury Financing Amendment Act, 1983 (Bill 28). Hon. Mr. Curtis.

Introduction and first reading –– 169

Income Tax Amendment Act, 1983 (Bill 4). Hon. Mr. Curtis.

Introduction and first reading –– 169

Miscellaneous Statutes (Finance Measures) Amendment Act, 1983 (Bill 17). Hon. Mr.

Curtis.

Introduction and first reading –– 169

Human Rights Act (Bill 27). Hon. Mr. McClelland.

Introduction and first reading –– 169

Municipal Amendment Act, 1983 (Bill 9). Hon. Mr. Ritchie.

Introduction and first reading –– 169

Assessment Amendment Act, 1983 (Bill 22). Hon. Mr. Curtis.

Introduction and first reading –– 169

Property Tax Reform Act (No. 1), 1983 (Bill 7). Hon. Mr. Ritchie.

Introduction and first reading –– 169

Property Tax Reform Act (No. 2), 1983 (Bill 12). Hon. Mr. Ritchie.

Introduction and first reading –– 169

Employment Standards Amendment Act (Bill 26). Hon. Mr. McClelland.

Introduction and first reading –– 170

College And Institute Amendment Act, 1983 (Bill 20). Hon. Mr. Heinrich.

Introduction and first reading –– 170

Institute Of Technology Amendment Act, 1983 (Bill 19). Hon. Mr. Heinrich.

Introduction and first reading –– 170

Education (Interim) Finance Amendment Act, 1983 (Bill 6). Hon. Mr. Heinrich.

Introduction and first reading –– 170

THURSDAY, JULY 7, 1983

The House met at 2:04 p.m.

Prayers.

HON. MR. GARDOM: It is the custom of this assembly for

members to welcome guests and bid them a cordial and special welcome to

Victoria and to this assembly. Since we have such a large number here

today, on behalf of the government I would like to extend our best

welcome to all the guests.

MR. HOWARD: On behalf of Her Majesty's Loyal Opposition, we

wish to join with the government House Leader and the government in

expressing welcome and appreciation for those who were able to be here

today and listen to the forthcoming words from the Minister of Finance

(Hon. Mr. Curtis).

There was a request from the government to us earlier today that

question period for this sitting be waived. We want to inform the House

that Her Majesty's Loyal Opposition is quite agreeable to waiving

question period today in order to expedite the presentation of the

budget. Perhaps your Honour would like to test the House for leave on

that matter.

Leave granted.

MR. SPEAKER: The member for Skeena has informed the Chair that he has a matter of privilege he wishes to raise.

MR. HOWARD: Mr. Speaker, the question of privilege I want to

raise with Your Honour relates to arrangements in this chamber for the

televising of the budget presentation, and relates to the necessity, I

believe, of having fair play have its full role in the chamber. I have

a proposal for arrangements for, if not equal time — because we don't

know the time factor — at least an opportunity both for the Minister of

Finance and for the member for Nanaimo (Mr. Stupich), who is our

Finance critic and who will be responding to the budget presentation.

The Canadian Broadcasting Corporation has offered on a voluntary

basis to televise the response of the member for Nanaimo tomorrow on

the same basis as arrangements were made today to televise the

presentation of the budget by the Minister of Finance. The Canadian

Broadcasting Corporation and other television companies interested in

doing this would need some lead time. I want to submit to you, Mr.

Speaker, that your predecessor, Mr. Speaker Schroeder, on April 5,

1982, was faced with a similar situation in which something new had

been proposed with respect to the televising of the budget

presentation, and he took the course of testing the House for leave to

televise the debates on April 5, because of the new situation.

I would like to propose to Your Honour that leave be sought to

accommodate the request and the offer of the Canadian Broadcasting

Corporation to coordinate the televising of the response to the budget

by the member for Nanaimo when that takes place tomorrow.

MR. SPEAKER: Hon. member, on a matter of privilege the Chair will reserve

its decision to see if, in fact, a matter of privilege is involved. I will undertake,

in view of the circumstances, to bring a decision back to this House as quickly

as possible, hopefully in order to see if arrangements which might have to be

made would in fact be capable of being made.

Orders of the Day

Ron. Mr. Curtis presented the public accounts of British Columbia

for the fiscal year ending March 31, 1982, in accordance with

section

8(3) of the Financial Administration Act.

HON. MR. CURTIS: Mr. Speaker, I move that the public accounts for the fiscal year 1981-82 be referred to the Select Standing Committee on Public Accounts and Economic Affairs.

Motion approved.

Hon. Mr. Curtis tabled the comptroller-general's interim financial

statement for the two months ended May 31, 1983, and for the fiscal

year ended March 31, 1983.

ESTIMATES OF SUMS REQUIRED

FOR THE SERVICE OF THE PROVINCE

Hon. Mr. Curtis presented a message from His Honour the

Administrator, enclosing the Estimates of Sums Required for the

Services of the Province for the fiscal year ending March 31, 1984.

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. Smith), that Mr. Speaker do now leave the

chair for the House to go into Committee of Supply.

BUDGET ADDRESS

HON. MR. CURTIS: Mr. Speaker, I have the honour and pleasure

today to present the government of British Columbia budget for the

fiscal year ending March 31, 1984, May I first of all, sir, since this

is my first opportunity, congratulate you upon your elevation to the

chair in this Legislative Assembly.

The building of this, the fourth budget that I have tabled in this

House since assuming the Finance portfolio, has been a long and arduous

process. Reflecting the financial effects of recession, hard choices

have been necessary; leadership and teamwork were essential. The hon.

Premier, my cabinet colleagues, senior managers in government and many

dedicated people throughout the public service have worked tirelessly

to bring all the budgetary elements together. The result, Mr. Speaker,

is a financial plan which I am confident meets the needs of British

Columbia today and in the future.

[2:15]

For many in this House, we are beginning another term of service to

the people of the province of British Columbia. We return with renewed

vigour, refreshed by the ideas, concerns and support expressed in our

respective constituencies. May I, then, extend a personal welcome to

all returning members.

[ Page 160 ]

To those elected representatives present in the

Legislature for the first time, may I offer a particular welcome. It is

my hope that your years of public service in this Legislative Assembly

are challenging and productive.

Mr. Speaker, as Minister of Finance I remain committed to

philosophical principles expressed and endorsed here on previous

occasions. First and foremost, I continue to be unalterably dedicated

to the financial accountability of government to the people. The

operation of government requires that billions of dollars change hands

every year, from taxpayer to tax collector, from government to those

providing service to the public, and from government to those in

seriously inadequate circumstances. Each of those taxpayer dollars

belongs, of course, not to the government but to the people of the

province. Accordingly, we in elected office have a primary obligation

to account for the use to which all public moneys are put. In recent

years the quarterly financial reports, the budget documents, the

estimates of revenue and expenditure and the public accounts have all

been expanded and reformed. My goal during my time as minister has been

to assist people to understand how their tax dollars are employed to

provide social and economic benefits for all British Columbians.

Secondly, I remain committed to financial responsibility in

government. Through the new Financial Administration Act, methods,

procedures and controls have been introduced, some of them very

recently. The objective has been to ensure that public funds are

handled in the most correct manner and with the utmost concern for the

taxpayers' right to value for money.

Thirdly, I remain committed to the principle of fairness — fairness

in provision of public services, fairness in taxation policies, and

fairness in compensation and employment practices. It has been a

fundamental part of this government's approach to public policy that no

British Columbians should be burdened excessively by taxation or be

deprived of access to services vital to their health and safety.

Similarly, through the compensation stabilization program, British

Columbia has led the nation in ensuring fair compensation practices in

the public sector.

Finally, I remain committed to a government role in the economy

which supports private initiative, which provides permanent and

rewarding jobs and which builds a secure and prosperous economic

future. No country, no region, has achieved enduring prosperity through

expansion of overbearing government bureaucracy. Those governments

which lean too heavily on the taxpayer suppress individual initiative

and in fact mortgage the future, and that will inevitably precipitate

economic decline.

These principles have been important elements of government policy

in the past and will continue as the foundation of our policy in the

years ahead. More importantly, Mr. Speaker, these principles were

strongly endorsed by the people of British Columbia on May 5.

Mr. Speaker, I would like to touch briefly on the economic challenge.

As we know, the economies of the western industrial world have

reached a critical stage. The growth and prosperity which came so

easily in the 1960s and 1970s have faltered, with the economic crisis

of the past two years marking the turning-point. No one — individuals,

business enterprises, trade unions, professional associations or

governments — should take a return to prosperity for granted.

World economic conditions have changed, markets have become more

competitive, technology is advancing ever more rapidly and traditional

jobs are disappearing as new ones appear.

Most difficult of all, our expectations must change. The simple

message is that without the vital creation of wealth there will be no

means of paying for increased living standards. We can only have the

full measure of economic recovery we all desire if all members of

society recognize and make a conscious decision to give up that which

is no longer affordable. All must support restraint in the spending of

their tax moneys.

It is clearly understood that the problems we are now confronting

originated in the social and economic fabric woven through at least two

decades of prosperity and social reform. Through the sixties and

seventies real economic growth in Canada averaged 4.6 percent per year;

here in British Columbia our economy expanded at 5.6 percent annually

over the same period. In the government sector revenue growth was even

stronger, allowing government to occupy an ever-growing share of the

economy.

We also saw rapidly changing social and economic attitudes. Economic

growth came to be taken for granted; it was simply assumed to be

perpetual, while public debate and concern turned to the social and

environmental ills said to be caused by growth. Distrust of the private

sector was widespread. The public through this period sought more

containment and regulation of business decisions, and governments

responded often too eagerly. Regulatory laws, commissions, tribunals

and related government activities expanded into a tangled regulatory

web, which began to envelop the economy. More than two decades of rapid

government growth meant a corresponding increase in the bureaucracy.

The ambitious social and regulatory agenda of governments required

planners, lawyers, sociologists, geologists, biologists, economists and

other highly trained people.

In British Columbia today the public sector — federal, provincial

and local — accounts for one of every four jobs. Governments taken

together now represent the largest single sector of employment in the

nation.

Governments assumed the role of model employers, offering generous

salary and benefit packages. As a result, skilled members of the labour

force turned to the public sector in greater numbers. These were

dramatic and far-reaching developments — developments that history

might have suggested could not last. They were, in a sense, golden

years of economic growth and social reform.

By the mid-1970s cracks began to appear. The OPEC cartel applied its

market power, and the economies of the world were forced to undergo

truly wrenching adjustments. Inflation and unemployment persisted at

high levels through most of the past decade.

Public sector strikes and compensation practices came increasingly

into conflict with the private sector. Rail shutdowns, port closures,

postal stoppages all exacted their toll on the people we serve. The

massive government presence in labour markets meant that private

employers had to match the compensation practices of public employers,

and yet still compete to survive in international markets.

The consequences of what was, in respect, a major overextension of

government were beginning to rebound on the public sector as well. Ever

more numerous tax incentives,

[ Page 161 ]

combined with a weak economy, began to erode

government's revenue base, and revenues began to fall behind

expenditure growth. Government deficits spread and grew.

Since 1981 there has been a major turning point, with the most

telling signals emanating from international financial markets.

Dramatic increases in interest rates underscored one basic fact: on a

world scale, borrowing demands by governments, corporations and people

could not be accommodated by available savings. As in any market where

a shortage appears, the price rose. Higher interest rates were

necessary to bring savings into line with borrowing demands.

In a few short months the psychology of prosperity underwent

dramatic change. From years of earned prosperity, through years of

complacent prosperity, we discovered quickly and very painfully that

borrowed prosperity was not tenable. Interest rates reached levels in

excess of 20 percent, causing traumatic financial adjustments. The

market's message was clear: borrowing would be more costly. For a

considerable time the cost clearly became prohibitive.

The recession brought on by higher interest rates has been

devastating in the province of British Columbia. It is estimated that

gross provincial product declined by some 7 percent in 1982, compared

to a 4.4 percent decline nationally. Unemployment reached massive

proportions, with more than 200,000 British Columbians out of work in

the winter of 1982 and 1983.

It has been a difficult winter, but there is now evidence that the

economy may have turned the corner. The Canadian economy grew 1.8

percent during the first quarter of this calendar year — 1983. Housing

starts are recovering in both Canada and the United States, and lumber

prices have risen significantly. There are signs of gathering strength

in major durable goods industries such as automobiles, where sales

figures have shown improvement in recent months. More generally,

consumer and investor confidence appear to be returning slowly and

cautiously.

Here in British Columbia we are also seeing tentative signs of

recovery. Employment growth has picked up with 67,000 jobs created

since January 1983. This is well in excess of the normal seasonal

increase. Both retail sales and manufacturing shipments have also been

generally rising since last fall and are now higher than the levels of

the early part of 1982.

I need not emphasize that the forecasting of economic trends and

events is at best a very precarious business. Like other forecasters,

we were well off the mark in anticipating the depth of the recession.

To assemble a budget, however, a forecast must be prepared, and so this

year's budget plan is based upon a forecast of between 1.5 and 2.5

percent growth in the Gross Provincial Product for British Columbia in

1983. Although stronger growth is anticipated for 1984, it may be late

in 1984 or into 1985 before economic activity returns to the level

recorded in 1980.

[2:30]

In spite of signs of recovery, the period that we are entering now

will not be one of easy prosperity. In fact, if we fail to do the right

things, the progress we have seen to date may well disappear.

Few will be inclined to take on debt as before, consumers will be

cautious, and businesses which have reduced staff will be reluctant to

rehire or expand. Faced with cautious and selective consumers, business

awareness of costs and productivity will be heightened and, clearly,

competition will be keen.

More worrisome is the cloud of uncertainty surrounding financial

markets. The recession has brought about a major increase in government

borrowing, with more to come. Unless expenditure restraint is embraced

in a major way and recognition is given to the fact that expenditure

commitments are far beyond the ability of the economy and the taxpayer

to support on a sustained basis, the recovery could be very sluggish.

In fact, it could falter; it could even collapse.

The real danger and irony is that government borrowing demands may

be excessive at a time when the private sector capital needs associated

with economic recovery are finally showing some strength. The potential

for higher interest rates is there, and the economic risks are great.

On a more positive note, however, inflation has fallen steadily for

the past year and has now reached an annual rate of 5.4 percent in

Canada and 5.1 percent in British Columbia. Although these rates are

still much higher than the standard of the 1950s and 1960s, they are

the lowest that we have seen in more than ten years.

Even more promising has been the pattern of declining wage

settlements, reflecting, in part, government compensation and restraint

initiatives. As reported by the Employers' Council of British Columbia,

the average increase in contract compensation over the 12-month period

ending May t983 was 6.8 percent in the public sector compared to 9.9

percent in the private sector. Moreover, in May 1983 both public and

private sector contract settlements averaged less than 3 percent.

Continued restraint in wage settlements, in government and in the

private sector, will be essential to a continuing decline in inflation.

Lower inflation will, in turn, reduce the risk of increased interest

rates and a short-lived recovery.

While many of the forces at play are not of British Columbian

origin, they will shape important aspects of our economic future. They

will determine the health of international markets into which we sell

our products, and they will affect the interest rate patterns we shall

face in the future.

The strategy for British Columbia is clear. We cannot spend our way

out of recession nor expose ourselves to excessive risk from higher

interest rates. Similarly, our industries cannot afford to be marginal

suppliers in world markets to be the first bumped when economic

conditions tighten. Only by focusing on restraint and productivity can

the public and private sectors return to the basic reality that

prosperity must be earned.

The compensation stabilization program introduced by the Premier, by

this government, last year led the course of public policy in Canada.

The budget I am tabling in this House today represents another step

in a program to rebuild the economy, to improve the balance between the

public and private sectors. This budget meets the commitment made to

the people of British Columbia in the May 5 election that this

government will provide the basis for private-sector expansion and job

creation.

Today's budget is in some respects transitional. We remain in the shadow of recession, but recovery is beginning to be felt.

Symptomatic of the economic downturn, government revenue for the

1982-83 fiscal year declined to $6.541 billion, a drop of 5.3 percent

from the previous year. On the expenditure side, economic dislocation

resulted in a 32.9 percent escalation in spending by the Ministry of

Human Resources. By implementing a comprehensive program of

[ Page 162 ]

restraint across government, we were able to

maintain funding of critical social programs, while holding overall

expenditure to $7.519 billion, a 6.1 percent increase from fiscal year

1981-82. Although the public accounts for the last fiscal year have not

been fully finalized, I now estimate the deficit for 1982-83 at $978

million.

Given the severity of the recession and the magnitude of the revenue

reduction, I feel this represents a remarkable achievement. It is a

credit to all ministers and government managers that the deficit in

such circumstances could be held below $1 billion.

Nevertheless, government revenue will remain weak for a considerable

time. In fact, removing that part of revenue growth accounted for by

inflation, per capita government revenue has now declined to the level

reached seven or eight years ago. A return of revenue to the peak

levels reached in 1979-80 is not anticipated within the foreseeable

future.

Similarly, while employment has increased in recent months, the

seasonally adjusted rate of unemployment remains above 13 percent, and

improvement is expected to be slow through 1983 and 1984. Fundamentally

stronger international markets, an extended period of economic

stability and a superior effort at restraining costs and increasing

productivity will be essential; indeed, it will be vital to sustained

recovery in British Columbia.

My overall fiscal objective is, therefore, to achieve a balance

between the restraint which is essential for longer-term recovery and

the provision of funding to stimulate employment in the short term. To

accommodate the competing objectives of restraint and employment

creation, I am combining a comprehensive program to restrain permanent

expenditure with a plan to load certain future expenditures into the

present year for job creation purposes.

Reviewing the expenditure plan, I can say that British Columbia's

core social programs will be preserved. In the main social policy

ministries — Attorney-General, Health, Education, Human Resources and

Universities, Science and Communications — total appropriations are

proposed to increase by 8.1 percent over last year's spending, and will

account for over 70 percent of all ministry expenditure. Appropriations

for all other ministries, excluding interest on the public debt, call

for an increase of less than 1.4 percent over 1982-83 spending, while

the expenditure increase for all government ministries is to be held to

6.4 percent.

I should stress, Mr. Speaker, that no provision has been made in

this budget for general compensation increases this year for either

direct provincial employees or those in public bodies. Increases simply

are not affordable in the absence of offsetting productivity increases.

In addition to ministry expenditure, provision will be made for

program and project spending of $415 million through the employment

development account. This employment stimulation initiative meets the

commitment made earlier this year to provide a major expenditure

injection for creation of immediate employment relief, primarily

through the private sector. The funding for the employment development

account comprises two major components: the appropriation for the

current year will be $245 million, while the remaining $170 million

will be financed through regular capital funding mechanisms and

amortized over a number of years.

Most of the program represents accelerated capital expenditure which

would otherwise have occurred in future years. Highways construction of

$190 million, diking expenditures of $12 million, agricultural projects

of $4 million, and health facilities capital totalling $170 million are

being advanced to create employment now when it is most needed. This

government's policy of advancing capital projects during recessions

also secures savings through lower construction costs obtained through

more competitive project tenders when industrial activity is slow.

Finally, $40 million will be designated in the employment

development account for a series of job creation programs, again

focused on the private sector. Included among the programs to be funded

are summer youth employment subsidies, funding for the NEED program to

assist in employment of UIC exhaustees and welfare recipients, and a

program of assistance for unemployed apprentices. A portion of this

funding will be made available for other projects to be elaborated upon

in the weeks ahead.

The expenditure of funds from the employment development account is

creating between 15,000 and 20,000 man-years of employment in British

Columbia. It will make a critical contribution to the easing of

unemployment as our economic recovery begins gradually to gain momentum.

The last major element of this year's expenditure plan will be the

payment of interest on direct provincial debt outstanding. Total direct

debt of $2.4 billion is forecast by the end of 1983-1984, and interest

costs of $181 million are anticipated for the current year.

While the government has rejected the severe taxation increases or

expenditure cuts needed to avoid the deficits of 1982-1983 and

1983-1984, it must nevertheless be recognized that borrowing represents

either deferred taxation or deferred expenditure reductions. Every

dollar for payment of debt or interest is a dollar which has to be

collected in taxes and which cannot be directed to provision of

government services. The debt must be repaid, and the interest must be

paid. This government's restraint program will restore balance to our

fiscal affairs over the next several years.

Total consolidated revenue fund expenditure, including expenditure

by ministries and government offices, initiatives under the employment

development account and interest costs on direct debt, is estimated for

1983-1984 at $8.445 billion. This represents a 12.3 percent increase

over last year.

Although the existing revenue base is expected to increase to $6,669

billion, a 2 percent increase over 1982-1983, it is not sufficiently

strong to bring revenue into line with expenditure. In fact, a number

of fundamental weaknesses, particularly in resource and corporation

income tax revenue, will cause the revenue base to fall short of

expenditures for a number of years. Consequently, Mr. Speaker, I shall

be announcing a number of revenue measures in this budget. In the

current year these measures will yield an estimated $173 million and

bring total revenue to $6.842 billion for a 4.6 percent increase over

last year.

On a consolidated revenue fund basis, expenditure is estimated to

exceed revenue by $1.603 billion in 1983-1984. While the budget

shortfall exceeds the $978 million in 1982-1983, this is due in part,

as I indicated earlier, to the acceleration of employment creation

expenditure.

Our view is this: by implementing revenue measures now, it should be

possible to avoid substantial tax increases in the years immediately

ahead. However, it is essential that expenditure restraint continue.

The choice is clear: we must either restrain our demands for government

services or we must be prepared to contribute more tax dollars to pay

for program costs.

[ Page 163 ]

[2:45]

The government's decision is clear: we shall restrain expenditure.

We shall reduce the size of government; we shall increase productivity

and keep public sector costs to a minimum. We shall not take the

irresponsible course, the course of widespread tax increases, of

excessive burden of government on the economy. We shall not lead

British Columbia down the path of economic decline.

Program of restraint for recovery. As I indicated a few moments ago,

the expenditure plan for the current year combines restraint in

permanent government expenditure with accelerated funding for

employment creation. The overall focus of restraint is to eliminate

unnecessary government, but it is a positive program. In too many cases

expenditure programs, which may be desirable for some groups, do not

support the broader goals and aspirations of all British Columbians.

Expenditure, therefore, for such programs should be trimmed, and the

trimming should be welcomed.

At a more general level there's a simple truth that bears repeating:

government has grown too large. Since 1971-72 the provincial government

has more than doubled the amount it spends for the average British

Columbian. Even after accounting for the increased expenditure

resulting from inflation, there's been a 60 percent increase in real

expenditure for every man, woman and child in the province. One must

surely question whether people are receiving 60 percent more or better

services from government over the same period. Governments everywhere

have run up against the law of diminishing returns: the more

expenditure grows, the less each dollar adds in service to the public.

It is time to reverse this process. It is time to strive for more with

less. Productivity must become a central theme.

In pursuit of leaner, more efficient government, the fiscal plan for

the next few years calls for continued staff reductions. From a base of

nearly 47,000 full-time-equivalent staff authorized in April 1982,

staff reduction plans have brought government ministries down

substantially. Additional progress is essential if our targets are to

be met. The budget for the 1983-84 fiscal year will provide funding for

39,965 fulltime equivalent staff, with a further reduction planned for

1984-85. To enhance accountability and control, the estimates of

revenue and expenditure for this year contain a more comprehensive

picture of government manpower than in previous years. The presentation

of full-time-equivalent staff, in place of the former enumeration of

established positions, provides, we believe, a broader and more

accurate measure of staffing for each ministry. Full-time equivalents

will also form the basis of future budgetary manpower monitoring. The

required legislation will be tabled in this House very shortly.

In line with staff reductions, the British Columbia Buildings

Corporation will also be implementing a generalized space and cost

reduction program in 1983-84. Following a comprehensive review, space

standards for government offices have been reduced by 10 percent, and

standards of operation and building maintenance are being reduced where

possible. This, together with lower space requirements resulting from

government staff reductions, is expected to reduce accommodation costs

in this fiscal year and in future years.

In addition, Mr. Speaker, government vehicle fleets are to decline

by up to 20 percent in 1983-84, and rules governing the use of vehicles

by government employees are to be tightened.

The compensation stabilization program will continue to play a very

central role both in bringing down inflation and in supporting

government restraint and productivity improvements. Legislation to

extend and revise the program is to be tabled. The revisions will

ensure that the primary consideration with respect to salary levels is

the employers' ability to pay. Where increases are affordable they will

be determined largely on the basis of productivity.

Effective today, the CSP regulations will be revised to provide the

range of compensation adjustments from minus 5 percent to plus 5

percent. This will allow significant scope for ability to pay and

productivity adjustments. In addition, the program will require that

the cost of salary increments be included as part of the compensation

package.

Steps will also be taken in the weeks ahead to achieve greater

consistency in compensation patterns among senior managers in the

public sector. Deputy ministers and other senior executives in

government ministries, senior executive officers of Crown corporations,

hospitals, school districts and other agencies and institutions are to

be placed within a common compensation framework.

Legislation will be tabled to allow the government to regulate

individual salaries of senior executives. A small team of senior public

officials is to provide recommendations to cabinet by September 15 for

subsequent implementation. Until recommendations are made and

adjustments can be considered, senior management salaries are to remain

frozen.

In several ministries steps are being considered to improve

productivity through organizational changes and consolidation. For

example, the Public Service Commission performs a number of functions

that can be consolidated with a considerable saving to the taxpayer.

In the area of advertising, government publications and information

services, some $3 million in savings will be realized by an

organizational consolidation. Duplication in staffing, printing

equipment and advertising will be substantially reduced by the transfer

of this function from individual ministries to the Ministry of

Provincial Secretary and Government Services.

With respect to education, I am informed that the number of teachers

employed in the public school system grew from 27,200 in 1975 to 28,200

in September 1982. Over that same period, however, the number of

students declined by 38,600; the ratio of teachers to pupils grew by 12

percent. My colleague the Minister of Education will therefore be

implementing a plan for reducing the ratio of teachers to pupils over a

period of several years. We believe this can be accomplished while

continuing to improve the quality of education in British Columbia

schools.

The minister will also be restraining costs and improving

productivity through initiatives such as an improved financial

management and budgeting system to be used by school districts and the

ministry. With the new budgeting system it will be possible to

determine more accurately the cost of providing a basic level of

educational service in each district. Savings will be effected through

the elimination of the three councils involved in the allocation of

college funding, and consideration will also be given to achieving

further savings through amalgamation of certain school districts with

small enrolments. The Minister of Education will table the legislation

necessary for implementation of these and other changes. Similar

initiatives in other areas, such as the amalgamation of certain

hospital boards, is also to be examined.

[ Page 164 ]

Over the years the trend to regionalization of government operations

has led to some duplication and inefficiency. This trend is to be

reversed. The number of staff and the amount of office space in

communities around the province will be pared where reduction or

elimination of regional offices can be achieved without loss of

essential service to the public.

Budgetary adjustments have been made to reflect reduction or

elimination of regional offices in the Ministries of Forests;

Provincial Secretary and Government Services; Environment; Finance;

Municipal Affairs; Transportation and Highways; Consumer and Corporate

Affairs; and Lands, Parks and Housing.

Years of government expansion have led to a proliferation of

committees, boards, commissions and other agencies in government. In

many instances this has resulted in excessive use and employment of

highly paid professional staff to support regulatory processes. As an

example, savings are to be realized by initiatives affecting the

Employment Standards Board in the Ministry of Labour, the office of the

rentalsman in the Ministry of Consumer and Corporate Affairs, the human

rights branch and the Human Rights Commission in the Ministry of

Labour, the planning branch in the Ministry of Municipal Affairs,

regional resource management committees operating under the aegis of

the Environment and Land Use Committee of cabinet, the Agricultural

Land Commission, and the motor vehicle inspections branch of the

Ministry of Transportation and Highways.

My colleague the Minister of Energy, Mines and Petroleum Resources

will also be taking steps to streamline the regulatory processes of the

British Columbia Utilities Commission.

In addition, legislation will be presented to remove from regional

districts those planning and zoning functions which apply to

municipalities. It is the government's view that this represents an

unnecessary and an inefficient duplication of functions which are

performed by municipalities.

Further, where possible, the government intends to give the private

sector the opportunity to take over functions and activities not

appropriate to government. Budgetary adjustments have therefore been

made to allow the following facilities and activities to be assumed by

the private sector: the Cypress Bowl ski facility; Manning Park Lodge

and ski facilities; Pacific Coach Lines Ltd.; Beautiful British Columbia magazine, and a number of other magazines published by some ministries; and Tranquille and Colony institutional farms.

In speaking about privatization, which essentially means less

government and lower expenditures, two points must be restated. Our job

has just started. It is by no means complete now, nor will it be in the

course of this fiscal year. Further, this government will continue to

examine other program areas with a view to reducing cost, while at the

same time maintaining essential services.

The government will invite the private sector to identify areas of

government where a function can be provided less expensively by that

sector. All genuine and serious proposals will be carefully reviewed

and considered for future government action.

In certain areas, full privatization is neither possible nor

desirable. The government will, however, reduce staffing while drawing

more heavily on services offered by the private sector wherever

appropriate.

Legal services to government are now largely provided by staff

employed by the Ministry of Attorney-General, for example. Budgetary

adjustments will reduce staffing in this area, with more emphasis to be

placed on private sector legal advice.

Similarly, future needs for planning analysis, architectural

services, engineering services, computer systems advice and staff

training services can and will be met to a greater extent by

contracting with the private sector.

[3:00]

Many government programs are presently open-ended. Expenditure grows

automatically, regardless of whether the expanding cost is either

affordable or desirable. When government revenue growth has been

strong, the relentless expenditure growth for such programs has been

supportable without major tax increases. That is no longer the case.

This budget therefore reflects initiatives to reduce, restrain or

eliminate a number of open-ended programs. Further steps can be

expected next year.

In the Ministry of Attorney-General, the scope of the criminal

injuries compensation program will be reduced substantially. My

colleague the Attorney-General (Hon. Mr. Smith) will table legislation

to effect the required changes.

In addition, the legal aid program, jointly funded by the province,

the federal government and the Law Foundation of British Columbia, will

be the subject of an intensive review. The budgetary provision for this

program has been held to $13.4 million. To meet this expenditure level,

program coverage will be carefully reassessed and eligibility will be

limited to those most in need.

The courts and correctional systems represent another area of

open-ended expenditure growth. In the case of corrections, over 40

percent of incarcerations are now related to drinking drivers. It is

becoming prohibitively expensive to keep people in jail — at an average

cost of almost $100 per person per day — and many correctional

facilities, as we know, are bulging at the seams. Proclamation of

certain sections of the Motor Vehicle Act will therefore be delayed

pending a review of the role and effectiveness of fines, impounding of

vehicles and other possible deterrents. We must examine more

cost-effective methods for reducing the carnage on British Columbia

roads caused by drinking drivers.

I wish to assure you and the House, however, Mr. Speaker, that

budget adjustments will not, of course, prevent the proclamation of

those sections of the act which will allow blood tests to be taken from

drivers hospitalized after an accident where alcohol may have played a

role.

I'm informed that consideration is also being given to increased use

of minimum-security prisoners for work in park maintenance, salmonid

enhancement and construction of equipment and facilities for use in the

public sector. Such initiatives are to be welcomed, both for the work

experience gained by offenders and the reduction of costs to the

taxpayer.

I also want to make it clear that no provision has been made in this

budget for increased costs in connection with the federal Young

Offenders Act. While reform and improvement in the juvenile justice

system may be a laudable aim, the full implementation of the proposed

changes could cost this province alone some $60 million each year.

British Columbia takes the position that such costs are unacceptable

in an era of declining government fiscal capacity. If the federal

government wishes to proceed with these changes, we shall require full

and permanent compensation for the expenditure demands this would place

on the justice system administered by this provincial government.

[ Page 165 ]

Mr. Speaker, as indicated in the Speech from the Throne, this

government's commitment to health care is absolute. British Columbians

will continue to enjoy services at a standard and quality difficult to

match anywhere in North America. More fundamentally, no one in British

Columbia, regardless of income, is denied access to top-level medical

care. It has, however, been very costly. Health expenditure has

increased at an average annual rate of 17.7 per cent since 1976-77. As

a share of total expenditure, spending by the Ministry of Health has

increased from 24.2 percent in 1976-77 to 29 percent in 1983-84.

The proposed $2.45 billion expenditure for the Ministry of Health

represents a 7.3 percent increase over 1982-83 levels. In addition,

$170 million in health construction projects has been advanced for

employment creation and is included in the employment development

account.

It must be stressed and understood that improvements in the health

care system have required significant sacrifices in other areas of

government. We are, I believe, reaching the limits to which other

programs and government services can be constrained to support further

enhancements in health care. Mr. Speaker, it is time for all Canadians

to assess realistically how much more we are prepared to pay for health

care services. The question must also be addressed as to the

appropriate balance between the costs to be borne by the general

taxpayer and by those benefiting directly from the service.

My colleague the Minister of Health (Hon. Mr. Nielsen) will be

taking steps to develop an overall health care strategy for the balance

of the 1980s. Work is proceeding on a multi-year hospital facilities

plan to ensure that British Columbia communities are provided with

access to basic health and hospital care, that unnecessary duplication

is avoided, and that there is consistency between communities in the

standards of care offered. In order to ensure a more integrated and

efficient health care delivery system, the minister will also table

legislative amendments to bring the Alcohol and Drug Commission

directly into the Ministry of Health.

In addition, legislation will provide the government with greater

control over the number and location of doctors entitled to bill the

Medical Services Plan. Steps will be taken to work with the British

Columbia Medical Association to review alternative ways of ensuring

that individual doctors' billings to the Medical Services Plan are both

fair and reasonable, and that total billings do not exceed the budget

provided. These are positive and timely initiatives which will ensure

that our health care system continues to be financially viable, while

protecting the high quality and ready access to services that British

Columbians want, expect and deserve.

Restraint measures in the Ministry of Human Resources must be viewed

against a 1982-83 expenditure increase of 32.9 percent. This growth

reflected the dramatic increase in the number of people out of work and

in need of income assistance as a result of the recession. Despite the

enormous expenditure increase last year, the budget plan calls for a

1983-84 allocation of $1.37 billion, a further increase of 13.9 percent.

Again, the government is committed to maintaining basic and

essential income assistance programs. In order to preserve such

services, however, sacrifices have been required in less critical areas.

My colleague the Minister of Human Resources (Hon. Mrs. McCarthy)

will maintain welfare rates at their current level. This government

continues to believe it is better to assist more people at existing

rates than to escalate payments for a restricted number of people.

I am also reconfirming today that legislation to cancel the renters'

and provincial personal income tax credits will be presented during

this session of the Legislature.

The budget will make provision for the implementation of a program

of automatic enforcement of maintenance orders. The details are to be

developed and announced by the Minister of Human Resources later in the

year. The objective is for automatic collection procedures to be

initiated when maintenance payments for separated spouses and their

children who are clients of the GAIN program are not forthcoming.

Another important area of open-ended expenditure growth has been the

aid program for students in colleges and universities. The budget for

this program will be limited to $14.6 million in 1983-84. The Minister

of Universities, Science and Communications (Hon. Mr. McGeer) and the

Minister of Education (Hon. Mr. Heinrich) will be implementing strict

criteria and program limits to ensure that necessary assistance is

provided in the most appropriate manner.

The Minister of Lands, Parks and Housing (Hon. Mr. Brummet) will

take steps to limit expenditure on certain housing programs. Both the

rental and purchase markets have eased considerably in the past year.

Consequently, the first home grants program will be cancelled and the

social housing rent scale is to be adjusted in relation to tenants'

incomes.

Finally, the government will be taking a fresh approach to its

industrial assistance programs. Too often, governments have fallen into

the trap of providing grants to business, leading in many cases to

subsidized firms competing with non-subsidized firms. In other cases,

firms have become subsidy-dependent. They collapse without further

infusions of money. Consequently, my colleague, the Minister of

Industry and Small Business Development (Hon. Mr. Phillips) will be

reorganizing industrial assistance programs and giving them a focus

more attuned to today's economy. The emphasis is to be on provision of

risk capital at preferred rates to high technology ventures having the

potential to thrive, grow and add diversity to British Columbia's

economic base. To the maximum extent possible, program costs will be

funded by successful loan recipients. Funding for this program will

come from a combination of voted expenditure and the proceeds of

housing and employment development bonds.

The measures I have noted represent some of the major initiatives to

be taken, but the list is not comprehensive. In every ministry, every

government office, every Crown corporation and every public body,

restraint measures will be taken. Restraint is a top priority in the

current year and can be expected to be a top priority next year.

With respect to revenue measures, Mr. Speaker, the deterioration in

our fiscal position is not entirely recession-related. A number of

fundamental changes have undermined certain major components of the

revenue base — most notably the general weakening in resource revenue,

revenue losses resulting from reductions in federal transfers, and

federal tax policy initiatives which have reduced the provincial tax

base.

In 1979-80, for example, natural resource revenue reached $1.32

billion. In spite of significant increases in water rental charges, by

1982-83 resource revenue had fallen

[ Page 166 ]

to $545 million and is forecast to decline further

to $527 million in the current year. Although some recovery is expected

over the next several years, few look for the kind of resource market

strength characteristic of the boom periods in the 1970s.

Federal government transfers, which have traditionally contributed

about 20 percent of British Columbia revenue, have also been reduced

substantially in recent years. As an example, the federal government

has implemented funding reductions for health and post-secondary

education transfers — EPF transfers — costing this province $725

million over the five-year period 1982-1983 to 1986-87.

[3:15]

In the taxation area the provincial government is partner to the

Canada–British Columbia tax collection agreement, which enables

corporate and individual taxpayers to file a single income tax return

through Revenue Canada. Under this arrangement the federal government

collects provincial corporation and personal income taxes, the

provincial government saves tax administration costs, and the taxpayer

is spared the necessity of filing two income tax returns. In return,

British Columbia agrees to accept the federal tax base for provincial

purposes. Here again, federal tax concessions have cost millions of

dollars in forgone provincial revenue. Corporation income tax changes

contained in the April 1983 federal budget will result, as an example,

in substantial reductions in provincial revenue for the next three to

five years, perhaps costing as much as $180 million.

While revenue has undergone a structural erosion, expenditure

pressure, particularly in the social program areas, which occupy over

70 percent of the budget, has continued to grow.

After careful consideration of the government's current and forecast

fiscal position, I have concluded that a number of revenue measures are

necessary. To avoid facing this reality would require acceptance of

permanent borrowing and ever-growing interest costs or massive cuts in

core social programs, neither of which is acceptable to this government.

Therefore, effective midnight tonight, the social service tax rate

will be increased from 6 percent to 7 percent. This change will provide

an estimated $126 million in additional revenue this year and some $170

million in a full year. Even at the new rate, British Columbia's sales

tax rate is as low as, or lower than, that in six of the nine other

provinces.

The variable social service tax rate for new automobiles will also

be replaced by the new general rate of 7 percent. With energy prices

now closer to world levels, it is no longer necessary to offer a

graduated Social Service Tax rate as an added incentive to purchase

fuel-efficient automobiles,

In announcing these changes, I want to emphasize that British

Columbia's exemptions from the sales tax compare extremely favourably

to those in other provinces. Literally thousands of items are exempt.

In fact, roughly half of the consumer dollar in this province is exempt

from sales tax. There are, however, a number of items currently exempt

which in a time of restraint are difficult to justify.

Effective midnight tonight, I shall remove two significant

exemptions from the social service tax. First, meals prepared and

served on the premises and costing $7 or more per person will no longer

be exempt from the social service tax. Secondly, long-distance

telephone calls will no longer be exempt from the social service tax.

The taxation of prepared meals and long-distance calls is consistent

with the practice in most other provinces. Removal of these two

exemptions will generate an additional $44 million in revenue this year

and an estimated $60 million in a full year.

Effective midnight tonight, the tax rate on cigarettes and tobacco

products is increased 25 percent. The tax on a package of 25 cigarettes

will therefore be 50 cents, again comparable to most other provinces.

This change will increase revenue by $18 million in 1983-84 and $24

million for a full year.

I'm also announcing that health co-insurance charges will be

increased on September 1 of this year. A

schedule of old and new rates

for acute care, extended and long-term care, emergency and day surgery

charges is presented in the appendices to the budget, which will be

made available to members at the earliest possible moment today. The

revenue from these measures is applied directly against the hospital

programs appropriation in the Ministry of Health, and will therefore

serve to reduce hospital programs expenditure by $12 million in 1983-84

and an estimated $23 million in a full year.

As I said earlier, health care has become a $2.45 billion

expenditure program in British Columbia, representing the largest

single area of government expenditure. The $166 million increase for

1983/84 alone is much larger than the total combined budgets of the

Ministry of Agriculture and Food, the Ministry of Consumer and

Corporate Affairs, the Ministry of Energy, Mines and Petroleum

Resources and the Ministry of Tourism. Fees and charges in the hospital

programs and long-term care area remain a relatively minor contributor

to total operating costs, providing only 7.5 percent of the $1.7

billion annual expenditure in that activity.

Finally, I can say categorically that no British Columbian will be

denied the best medical care available, regardless of income or ability

to pay. That is a principle to which this government is committed.

Health fees and charges will continue to be paid on behalf of those

unable to afford them, and our program of premium assistance for those

on low incomes will remain securely in place. Failure to face up to

restraining the enormous and growing burden of health costs on the

general taxpayer could lead to the demise of universal health care. It

would be an abrogation of our responsibilities. This government is not

prepared to see that happen.

Looking now at property taxes, two minor changes are to be made.

Firstly, the tax rate on rural land is to be increased from 12 to 13

mills. This change, to come into effect January 1, 1984, reflects the

increased costs of providing services to rural areas. Secondly, the

minimum property tax payable after application of the homeowner grant

will be raised from $125 to $150, effective January 1, 1984. However,

the minimum $1 for seniors and handicapped remains in effect.

Major legislation to reform property taxation is also being tabled

in this Legislature in this session. The introduction of the variable

tax rate system will allow municipal governments to establish property

tax rates which reflect the sharply different patterns of real estate

values among communities in the province. Most people will, of course,

remember clearly the property tax problems arising out of the real

estate market volatility of recent years. Under the new system,

stability will be restored to property tax levels, and municipal

councils will gain increased autonomy to meet the particular needs and

circumstances of their community.

In the course of extensive public meetings throughout the province

last winter, it was made very clear that property tax applied to

machinery and equipment has had a negative

[ Page 167 ]

impact on many small- and medium-sized businesses.

To assist these firms, the present exemption for machinery and

equipment of $1,500 of assessed value is to be increased to $50,000 of

actual value. The government is also providing a new $10,000 actual

value exemption for business and industrial properties. These major

changes, effective for the 1984 municipal taxation year, will eliminate

taxes paid on machinery and equipment for 15,000 businesses in British

Columbia and will significantly reduce property tax for many other

firms. Our work in reforming the property tax system is also by no

means complete. Further changes to enhance the fairness, efficiency and

stability of the property taxation system can be anticipated.

I want now to comment upon the

schedule of water rental charges

implemented over the past 18 months. The proposed increases were to

bring the cost of energy produced from hydro power developments into a

more consistent relationship with the costs of producing the power and

the cost of other energy sources. The major changes, scheduled to take

place over three years, were introduced prior to the economic

deterioration brought on by the recent recession.

In order to assist industry and other consumers of electricity

during these early stages of the economic recovery, I am announcing

today that the significant increase scheduled to take place on January

1, 1984, will be deferred and replaced by the simple indexing of water

rental charges for next year. This change will reduce revenue by $16

million in 1983-84 and a further $66 million in 1984-85.

Finally, I am announcing a change in the taxation of marked bunker

fuel to encourage the growth and expansion of marine refuelling at

British Columbia ports. The tax rate applied to marked bunker fuel will

no longer be linked to that for clear gasoline, but will be set at a

rate per litre fixed quarterly at 20 percent of the pre-tax price. It

is expected that the revenue loss from this lower tax rate will be

fully offset by increases in sales volumes.

In addition, I shall provide this House with the necessary

legislative amendment to ensure that imported bunker fuel is subject to

taxation on a consistent basis with that which is supplied

domestically. It will no longer be possible to avoid provincial

taxation when refuelling in British Columbia with imported bunker fuel.

Mr. Speaker, this budget has been constructed from the twin

foundations of restraint and employment creation. Growth of government

is being reversed, and the private sector is encouraged to increase

employment. It is a budget for recovery. While our return to prosperity

cannot precede international recovery, we in British Columbia cannot be

passive. In the months ahead the accelerated projects and program

funding from the employment development account will assist the private

sector to provide employment opportunities during the transition to

full recovery. Through the restraint program, longer-term recovery will

be secured. It will be achieved through common sacrifice and effort

from all groups in British Columbia. No one group has been, or should

be, singled out. All can share fairly and equitably in the costs and

benefits of restraint, and all must be willing to play their part.

It is essential to recognize that this is not restraint for the sake

of restraint; it is restraint for recovery. It is restraint for a

return to earned prosperity. I must repeat the earlier statement:

compensation increases in the absence of offsetting productivity gains

are simply not affordable.

[3:30]

The budget provides what is needed to contain the size and burden of government

so the private sector — our major resource companies, all businesses, small

and large — will have the climate needed to ensure that our fragile recovery

gains momentum.

The budget calls for major change. It calls for a new way of

It calls for a recognition of the cost of government, a recognition

that those costs have become excessive in recent years.

It calls as well for a recognition that our economic future, the

future health of our economy, lies not with government but with the

individual decisions that we take and the demands we make. Ultimately,

it is individuals who seek compensation increases, and they must decide

what is reasonable. It is individuals who must apply themselves with

ingenuity and enthusiasm if productivity is to be increased. It is,

fundamentally, our approach as British Columbians that will determine

whether government can be contained and our economy allowed to grow and

prosper.

The recovery is fragile but it is within reach if we are prepared to

reduce the size and scope of government; if we are prepared to accept

only those wage increases we justify through increased productivity; if

we accept the importance of a sound labour-management climate.

I believe the people of British Columbia have clearly chosen

restraint and private-sector job creation. I believe people have chosen

the direction they wish to take, and I believe we have the resolve to

once again lead the nation in solving the economic problems of Canada

today.

Hon. Mr. Curtis tabled the statutory report of the investment

portfolio of the province for the fiscal year ending March 31, 1982.

MR. STUPICH: I anticipate the minister will be answering a

few questions about the budget in the next few hours, and I'd like to

make just a point or two before he has that opportunity, while saving

tomorrow for a more detailed analysis of the budget.

As the minister points out, this is his fourth budget as Minister of

Finance. He neglected to point out that this is the first time that

he's predicted a deficit, although we have experienced a deficit for

the fourth year in a row, starting with the year ending March 31, 1981,

most of which was in 1980 — a very good year, by the minister's own

admission. In that year there was a deficit of $313 million. This

government, since that minister has been in office, has been engaged

upon a policy of profligate spending such as we've never known before

in the province of British Columbia.

They give lip service to restraint, but they do look after their

friends. A Socred image-maker gets an 18 percent increase. The

Premier's batman gets a 55 percent increase — that's restraint. To pay

for their excesses, in this budget they tell us they're going to put

their hands into the pockets of every consumer in the province and into

the tills of every small business operator in the province.

We're told this is a budget for restraint for recovery, and they

promise to achieve recovery by increasing taxes and unemployment. Some

restraint! This government, by the time we have finished with this

budget and the estimates, will have been spending money without

legislative approval for some six months, yet their own admission of

their absolute

[ Page 168 ]

failure to satisfy the needs of the people of our

province is best illustrated in the increase in the spending in the

Ministry of Human Resources. The prediction last year was that it would

go up by 19.2 percent; we're told today that the increase was actually

32.9 percent. The greatest single increase in dollars of any ministry

projected for the year ahead is in the Ministry of Human Resources.

Some recovery, Mr. Speaker!

Mr. Stupich moved adjournment of the debate.

Motion approved.

The House took recess at 3:36 p.m.

The House resumed at 3:50 p.m.

Introduction of Bills

PUBLIC SECTOR RESTRAINT ACT

Hon. Mr. Chabot presented a message from His Honour the Administrator: a bill

intituled Public Sector Restraint Act.

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.

PUBLIC SERVICE LABOUR RELATIONS

AMENDMENT ACT, 1983

Hon. Mr. Chabot presented a message from His Honour the Administrator: a bill

intituled Public Service Labour Relations Amendment Act, 1983.

Bill 2 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.

PENSION (PUBLIC SERVICE)

AMENDMENT ACT, 1983

Hon. Mr. Chabot presented a message from His Honour the Administrator: a bill

intituled Pension (Public Service) Amendment Act, 1983.

Bill 18 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.

COMPENSATION STABILIZATION

AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Compensation Stabilization Amendment Act, 1983.

Bill 11 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.

HARBOUR BOARD REPEAL ACT

Hon. Mr. Phillips presented a message from His Honour the Administrator: a

bill intituled Harbour Board Repeal Act.

Bill 25 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 CORPORATION REPORTING REPEAL ACT

Hon. Mr. Gardom presented a message from His Honour the Administrator: a bill

intituled Crown Corporation Reporting Repeal Act.

Bill 21 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.

ALCOHOL AND DRUG

COMMISSION REPEAL ACT

Hon. Mr. Nielsen presented a message from His Honour the Administrator: a bill

intituled Alcohol and Drug Commission Repeal Act.

Bill 8 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.

MEDICAL SERVICES ACT

Hon. Mr. Nielsen presented a message from His Honour the Administrator: a bill

intituled Medical Services Act.

Bill 24 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.

MOTOR VEHICLE AMENDMENT ACT, 1983

Hon. A. Fraser presented a message from His Honour the Administrator: a bill

intituled Motor Vehicle Amendment Act, 1983.

Bill 23 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.

RESIDENTIAL TENANCY ACT

Hon. Mr. Hewitt presented a message from His Honour the Administrator: a bill

intituled Residential Tenancy Act.

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.

[ Page 169 ]

EMPLOYMENT DEVELOPMENT ACT

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Employment Development Act.

Bill 16 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.

GASOLINE (COLOURED) TAX

AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Gasoline (Coloured) Tax Amendment Act, 1983.

Bill 14 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.

[4:00]

SOCIAL SERVICE TAX AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Social Service Tax Amendment Act, 1983.

Bill 15 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.

TOBACCO TAX AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Tobacco Tax Amendment Act, 1983.

Bill 13 introduced, read a first time and ordered to be place on

orders of the day for second reading at the next sitting of the House

after today.

PROVINCIAL TREASURY FINANCING

AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Provincial Treasury Financing Amendment Act, 1983.

Bill 28 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.

INCOME TAX AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator, a bill intituled Income Tax Amendment Act, 1983.

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.

MISCELLANEOUS STATUTES (FINANCE

MEASURES) AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Miscellaneous Statutes (Finance Measures) Amendment Act, 1983.

Bill 17 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.

HUMAN RIGHTS ACT

Hon. Mr. McClelland presented a message from His Honour the Administrator:

a bill intituled Human Rights Act.

Bill 27 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.

MUNICIPAL AMENDMENT ACT, 1983

Hon. Mr. Ritchie presented a message from His Honour the Administrator: a bill

intituled Municipal Amendment Act, 1983.

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.

ASSESSMENT AMENDMENT ACT, 1983

Hon. Mr. Curtis presented a message from His Honour the Administrator: a bill

intituled Assessment Amendment Act, 1983.

Bill 22 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.

PROPERTY TAX REFORM ACT (NO. 1), 1983

Hon. Mr. Ritchie presented a message from His Honour the Administrator: a bill

intituled Property Tax Reform Act (No. 1) 1983.

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.

PROPERTY TAX REFORM ACT (NO. 2) 1983

Hon. Mr. Ritchie presented a message from His Honour the Administrator: a bill

intituled Property Tax Reform Act (No. 2) 1983.

Bill 12 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.

[ Page 170 ]

EMPLOYMENT STANDARDS AMENDMENT ACT, 1983

Hon. Mr. McClelland presented a message from His Honour the Administrator:

a bill intituled Employment Standards Amendment Act, 1983.

Bill 26 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.

COLLEGE AND INSTITUTE

AMENDMENT ACT, 1983

Hon. Mr. Heinrich presented a message from His Honour the Administrator: a

bill intituled College and Institute Amendment Act, 1983.

Bill 20 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.

INSTITUTE OF TECHNOLOGY

AMENDMENT ACT, 1983

Hon. Mr. Heinrich presented a message from His Honour the Administrator: a

bill intituled Institute of Technology Amendment Act, 1983.

HON. MR. HEINRICH: I ask leave to move first reading of the bill accompanying the message.

MR. SPEAKER: You've heard the motion. All in favour say aye.

MR. COCKE: It's been a very interesting afternoon, and on a

matter of order, when the minister asks leave, I would expect that the

Speaker would ask the House whether leave be granted. Instead of that,

you're issuing a challenge of a motion. I just wonder whether or not we

should get back to asking leave on these ministerial bills.

MR. SPEAKER: If the Chair has fallen into error, it apologizes on that matter.

Bill 19 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.

EDUCATION (INTERIM) FINANCE

AMENDMENT ACT, 1983

Hon. Mr. Heinrich presented a message from His Honour the Administrator: a

bill intituled Education (Interim) Finance Amendment Act, 1983.

Bill 6 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.

Mr. Speaker, Order, please. Will the House allow the Chair just a moment, please?

Hon. members, prior to commencement of the budget debate, the hon.

member for Skeena (Mr. Howard) raised as a matter of privilege a

proposal that the response to the budget address by the hon. member for

Nanaimo (Mr. Stupich), as finance critic of the official opposition, be

permitted to be televised. In support of the matter raised, the hon.

member for Skeena referred the Chair to the course taken by the Hon.

Mr. Speaker Schroeder in submitting to the House a new proposal not

consistent with previous practice relating to the televising of a

budget address. I note that in his remarks, recorded in Hansard

on April 5, 1982, Mr. Speaker declined to treat the matter as one of

privilege, and I concur with that ruling. It is my opinion that the

proper course, as previously followed, would be for the House to

indicate its unanimous consent, or otherwise, to a material departure

from the well-established practice of only permitting television

coverage of proceedings on the opening day of a new session and of the

budget address itself.

MR. HOWARD: Mr. Speaker, if it's your ruling that we follow

the course set by Mr. Speaker Schroeder on April 5, 1982, then I think

you should test the House and ask that leave of the House be given to

televise the comments of the member for Nanaimo tomorrow.

MR. SPEAKER: Hon. members, while it is somewhat a move from

practice, I would be prepared to put that question on the understanding

that raising a matter of privilege does not constitute a need for the

Chair to put any particular question to the House. However, in this

case, because of the time constraints and because of the preparation

that would have to be undertaken if such a motion were to pass, I would

therefore put the question. The question is that television coverage be

allowed tomorrow for the reply to the budget speech by the government

today.

[4:15]

Motion negatived.

Hon. Mr. Gardom moved adjournment of the House.

Motion approved.

The House adjourned at 4:16 p.m.

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