Third Session, 41st Parliament

(2018) OFFICIAL REPORT

OF DEBATES

(HANSARD)

Tuesday, February 20, 2018

Afternoon Sitting

Issue No. 82

ISSN 1499-2175

The HTML transcript is provided for informational purposes only.

The PDF transcript remains the official digital version.

CONTENTS

Orders of the Day

Presentation of Estimates

Budget Debate

Hon. C. James

S. Bond

Introduction and First Reading of Bills

Bill 2 — Budget Measures Implementation Act, 2018

Hon. C. James

Tabling Documents

Budget and fiscal plan 2018-19–2020-21

Government’s service plans and strategic plan 2018-19–2021-22

TUESDAY, FEBRUARY 20, 2018

The House met at 1:34 p.m.

[Mr. Speaker in the chair.]

Orders of the Day

[1:35 p.m.]

Hon. C. James: I move that this House, at its next sitting, resolve itself for this

session into a committee to consider supply to be granted to Her

Majesty.

Motion approved.

Presentation of Estimates

ESTIMATES OF SUMS REQUIRED

FOR THE SERVICE OF THE

PROVINCE

Hon. C. James presented a message from Her Honour the

Lieutenant-Governor: Estimates of Sums Required for the Service of the

Province for the fiscal year ending March 31, 2019, and a supplement to the

estimates for the fiscal year ending March 31, 2019, recommending the same

to the Legislative Assembly.

Hon. C. James moved that the said message and the estimates

accompanying the same be referred to the Committee of Supply.

Motion approved.

Budget Debate

Hon. C. James: I move, seconded by the hon. Premier of British Columbia:

[That the Speaker do now leave the chair for the House to go into

Committee of Supply.]

I want to begin by welcoming everyone here in the gallery today. We’ve

been joined in the capital by parents with young children, renters,

homeowners, advocates and business owners, First Nations and Métis leaders,

mayors and councillors, former and current MLAs, and many more people who

are watching from home or work. Thank you, all of you, for joining us for

Budget 2018, a budget that works for you.

Seven months ago we were sworn in as a new government. It was clear in

the election, as it is now, that British Columbians want a better B.C. We

live in a province that is rich in people, resources, natural beauty and

opportunities. Yet these opportunities have become further and further out

of reach for so many. Families are working hard and can’t get ahead. Young

people starting out can’t afford housing. Seniors can’t get the services

they rely on.

It’s time for a different approach. It’s time everyone in our province

is part of our prosperity. We took the first steps in the Budget 2017 Update

to carve that path to shared prosperity in this province, and now Budget ’18

continues down that path to a strong, sustainable British Columbia that puts

people first.

Our first full budget is based on choices that work for the people of

this province because your government should be working each and every day

to make life affordable, to improve the services you count on and to build a

strong, sustainable economy that supports jobs in every corner of the

province.

Your government is also looking ahead because this budget is not only

about what will happen this year or over a three-year fiscal plan. The

choices we make today will chart a path to what we want our province to look

like in ten, 20 and even 50 years.

A budget is about more than revenue and expenses. It’s about people.

It’s about the entrepreneur building up their tech start-up. It’s about the

senior volunteering time to help their community, the single parent who

wants to return to work, the construction worker building our province, the

college student deciding what career path to pursue, and the young family

putting down roots. It’s about the kind of community we want to live in.

It’s about the kind of future that we all want. It’s about a progressive

province we can be proud of. It’s about a better B.C. for each and every

person in this province.

Budget 2018 recognizes that an economy that works for everyone starts

with a budget that works for everyone. After all, it’s British Columbians

who drive our economy. That’s why people are at the centre of the choices

that we’re making in Budget 2018. Those choices started when we were sworn

in as a new government.

In September’s Budget 2017 Update, we took several important steps to

meet some of the province’s most urgent needs. We’ve helped make life more

affordable by increasing the minimum wage and setting the path to $15 an

hour, increasing income and disability assistance rates, investing in 1,700

new affordable rental units, taking action to address poverty by developing

the first steps towards B.C.’s first poverty reduction strategy and

eliminating tolls on the Port Mann and Golden Ears crossings.

[1:40 p.m.]

We improved services by investing in education to give children the

support they need to thrive, by providing 2,000 modular supportive housing

units for people who are homeless, by taking immediate steps to fight the

overdose crisis by creating a ministry for mental health and addictions and

funding new treatment and support programs that save lives.

We removed tuition for former youth in care, and we ended fees for

post-secondary sectors, to give people opportunities to grow and

succeed.

Now Budget 2018 looks ahead. It builds on our progress. It makes

choices based on the people’s priorities, and it delivers on our commitments

to you as British Columbians.

I want to acknowledge that we’re on the traditional territory of the

Songhees and Esquimalt Nations. I’m honoured to be part of a government that

is committed to learning from and working with Indigenous peoples as we

build a path towards reconciliation.

That means a commitment to fully adopting and implementing the UN

declaration on the rights of Indigenous peoples and the calls to action of

the Truth and Reconciliation Commission. The Premier has given every

minister the responsibility for adopting and implementing the declaration

and the calls to action. Addressing reconciliation is our shared

responsibility, and you’ll see support for Indigenous peoples throughout

this budget.

Budget 2018 invests in housing, child care and skills training, with

more than $200 million dedicated to Indigenous priorities over the fiscal

plan in that range of areas. That includes funding to expand culturally

based Indigenous child care. It includes 1,750 new units of supportive

housing for Indigenous people, which will be developed in partnership with

Indigenous housing societies and First Nations. It invests in Indigenous

skills-training development funding for training and solidifying

partnerships between industry and the provincial, federal and First Nations

governments.

Aboriginal friendship centres are also receiving additional funding in

this budget. Friendship centres do incredible outreach work and serve all

Indigenous peoples, whether they are status, non-status, Métis or Inuit.

They provide health, social and dedicated youth programs, while fostering a

deep sense of community for those they serve. By investing in Aboriginal

friendship centres, we are investing in the kinds of relationships that our

government wants to cultivate with First Nations.

Now, we know there’s a strong link between linguistic and cultural

identity and social, mental and physical well-being. Revitalization of First

Nations languages is a critical part of that link. Language is fundamental

to who we are, where we come from, how we relate to others and what lives on

long after we’re gone. The teaching of language also strengthens the

cultural and social health of a community. It encourages children to grow

into a future that flows from their rich heritage. It connects the next

generation with those of the past.

Both the Truth and Reconciliation Commission’s calls to action and the

UN declaration on the rights of Indigenous peoples emphasize the need to

preserve and revitalize Indigenous languages. British Columbia is home to 60

percent of First Nations languages in Canada, with more than 30 unique

languages and 61 dialects. But our First Nations languages are in a state of

crisis. Eight languages are severely endangered; 22 are nearly extinct.

That’s why I’m proud today that we’re committing $50 million in this fiscal

year to support the preservation and revitalization of Indigenous languages

in our province. This funding will flow immediately, because there is no

time to lose.

I’d now like to talk about the choices we’re making in Budget 2018

that help make life more affordable for people in our province. These

choices start with building a quality child care system that is affordable

and accessible. I’ve heard from parents here in Victoria and across the

province that they’re anxious about child care. Often this anxiety starts

before the baby is even born.

Parents want quality child care that is safe and that gives them peace

of mind while they’re at work. For those parents lucky enough to find a

spot, they struggle to afford high child care fees, and businesses also feel

the effect of unaffordable child care. They’ve told us that economic growth

is hampered. When a parent can’t find child care, it means they often lose a

worker.

[1:45 p.m.]

Parents delayed from entering or returning to the workforce impact our

economy’s productivity. The B.C. Business Council, the B.C. Federation of

Labour, chambers of commerce, Vancouver Board of Trade and municipalities

across B.C. have urged the province to improve access to affordable child

care. This would expand the pool of workers available to employers and also

create jobs and provide a lift to B.C.’s economy. We need to heed the

ever-expanding body of research showing us that public spending on child

care is a wise social and economic investment.

That’s why I’m so proud that Budget 2018 marks the beginning of a

made-in-B.C. universal child care program. It will take time to deliver, and

that’s why we’re starting right away. Budget 2018 offers the largest

investment in child care in B.C.’s history, with a $1 billion child care

investment over three years — to lower the cost for parents, increase the

number of child care spaces and make sure those spaces meet quality child

care standards.

Our child care plan starts with two key investments to reduce child

care costs for tens of thousands of families across this province. Starting

April 1, the child care fee reduction program will provide funding directly

to licensed child care providers. It will provide up to $350 a month for a

child care space. These fee reductions will benefit an estimated 50,000

families per year by 2021.

We’re also introducing a new affordable child care benefit, starting

in September 2018. It will provide up to $1,250 per month per child. It will

lower costs for 86,000 families per year by 2021. The highest level of

benefits will apply to infant and toddler care, because that’s often the

least affordable and the most difficult to find. Families who are earning

less than $45,000 will pay little or nothing for their child

care.

Now, families have also told us that even if they could afford child

care, there aren’t enough spaces in their community. For a child care plan

to work, there must be more spaces. That’s why we’re creating 22,000 new

licensed child care spaces across this province.

We’re also increasing grant funding to encourage the building and

maintenance of spaces where they’re needed the most in B.C. We’ll work with

other ministries, municipalities, school districts and not-for-profit

operators to accelerate the creation of new spaces. That work will also

include looking for opportunities to include child care facilities in new

schools and affordable housing.

We’ll offer incentives for licensed service providers to offer child

care outside of standard business hours. This is going to help parents who

work shifts or weekends or are going to school in the evening. Because

family-based care is a choice made by many parents, we’re also supporting

unlicensed family care providers to become licensed.

Experts, like the Coalition of Child Care Advocates of B.C. and the

Early Childhood Educators of B.C., have been clear. The quality of our child

care system depends on early childhood educators. We agree. Our plan to

build more child care spaces will mean a higher demand for these

professionals, and we need to do more to support this important

field.

We’ll work with our partners to develop a comprehensive workforce

development strategy. It’ll look at innovative approaches to training,

education and fair compensation. We’re getting started in this budget by

growing the early childhood educator programs in our colleges and

universities and investing $16 million in federal funding for bursaries and

grants that will support certification and professional development

opportunities. Taken together, it will boost the supply of early childhood

educators to meet growing demand and rising quality standards.

Our made-in-B.C. plan sets us on the path for universal child care. It

represents real, transformational change in our society. Our plan will be

affordable for families and the province. It will be accessible for parents

so that they can get back to work. It will give parents, grandparents and

caregivers peace of mind by meeting rigorous quality and safety

standards.

[1:50 p.m.]

Now, we know that our vision for universal child care requires a shift

that’s going to take time. It will take an openness to learn, a commitment

to work together and a strong sense of community. I think it’s no

coincidence that these values are at the core of quality child care. I’m

incredibly proud to be part of a government that is taking this bold step

toward universal child care in British Columbia.

I want to talk about another challenge our government is tackling in

this budget: housing. Housing affordability affects us all. The problem has

been ignored for too long, and the consequences are being felt throughout

B.C., with housing costs skyrocketing. The result is that renters have seen

vacancy rates drop while prices rise dramatically.

Students going to college and university have had a hard time

accessing affordable housing. Young professionals are faced with moving out

of their communities or the province. First-time homebuyers have been

sidelined as housing prices soar out of their reach. Seniors struggling to

meet rising housing costs on fixed incomes are at risk of homelessness.

Parents have told me that they worry their children won’t have a safe,

secure place to live, let alone be able to afford a house.

People have clearly been hurt by the housing crisis, and B.C.

businesses and our economy are feeling the effects as well. Three out of

five Vancouver Board of Trade members cite housing unaffordability as a

barrier to recruit and keep employees. Nurses, construction workers,

teachers, engineers and city workers are building careers, growing families

and contributing to our province. They should be able to put down

roots.

People want their government to take action, but a piecemeal, reactive

approach won’t work. The problem is too complex. The need is too great.

That’s why we’re setting out a comprehensive housing plan that commits to

long-term solutions in Budget 2018.

It starts with taking action to stabilize the market and curb demand.

B.C.’s real estate market should not be used as a stock market. It should be

used to provide safe and secure homes for families, for renters, for

students and for seniors. That’s why we’re going to crack down on

speculators who distort our market.

We will introduce a new annual speculation tax, starting in B.C.’s

urban areas. It’s going to tax foreign and domestic speculators. This tax

will apply to property owners who don’t pay income tax here, including those

who leave their units vacant. This will penalize people who’ve been parking

their capital in our housing market simply to speculate, driving up prices

and removing rental stock.

To curb demand, we’re also increasing the additional property transfer

tax rate, which is known as the foreign buyers tax, to 20 percent. We think

that foreign buyers should contribute more for the quality of life that they

enjoy when they are in our province.

Currently this tax only applies to Metro Vancouver, so we’re extending

it to Fraser Valley, Nanaimo, the capital and Central Okanagan regional

districts. Increasing the tax may deter those who are speculating in B.C.’s

housing market, and it will definitely penalize those who do. Extending it

to other communities ensures that we simply don’t push the speculation into

neighbouring markets.

Our goal is fairness for the people that live, work and pay taxes

here, and we’re taking steps to ensure that in Budget 2018. Countering tax

fraud starts with better information-sharing, so we’re changing tax laws to

help us ensure the accuracy of the information people provide on the

property transfer tax and income tax forms. This will help us detect tax

fraud and ensure that taxes are being paid.

Another way to curb demand is to close real estate loopholes that

allow some people to skirt our tax laws. We’ve all heard stories of a condo

unit being sold multiple times before the unit is even lived in. We wonder

if those people have paid their fair share of taxes. This is unfair to

people who are trying to buy into the condo market.

We’re changing legislation to require developers to collect and report

comprehensive information about these presales assignments. This will allow

us to strengthen our audit and enforcement system in partnership with the

federal government.

Another loophole that’s being used is hidden ownership. Numbered

companies, offshore and domestic trusts and stand-in owners hide the true

source of capital that’s flowing into our real estate market. A lack of

transparency in our land registry means true ownership is not clear. We’re

going to change that.

[1:55 p.m.]

First, we’re going to require additional information on beneficial

ownership on the property transfer tax form. Second, we’re going to

establish a registry of beneficial ownership in B.C. that will be publicly

available and shared with law enforcement and tax auditors. And third, we’re

going to introduce requirements for corporations to hold accurate and

up-to-date information on beneficial owners. These changes will return a

sense of fairness to the real estate market for the people of B.C., because

the tax system should work for all British Columbians, not just those at the

top.

We know that soaring house prices have benefited many people. We think

it’s fair to ask those who have benefited from those high prices to give a

bit more back. That’s why we’re increasing taxes on B.C.’s most expensive

properties, on the value over $3 million. Our intent is to bring stability

to housing prices with these changes and have revenues to invest in building

affordable housing. We recognize that these are bold actions, but that’s

what B.C.’s housing crisis demands.

I’ve talked about demand. That’s one half of the affordability

equation. Supply is the other half. There’s a drastic shortage of affordable

housing in this province. Families are squeezed. Students are struggling.

Seniors are falling through the cracks. We came into government with a

vision to fix this, and we’re taking action.

We’re going to build the homes that people need. These homes will be a

mix of housing for students, people with disabilities, seniors, families and

will range from supported social housing to market rental housing. We’re

also going to make significant investments to preserve and protect our

existing social housing for the people already living in them.

Our commitments will total more than $7 billion over the next ten

years. This will be the single largest investment in housing in the history

of our province. It will build almost 34,000 units across our province,

including mixed-income social housing, new beds for students at colleges and

universities and units dedicated for people who are homeless.

We know housing affordability can hit renters the hardest, and many of

our most vulnerable citizens are at risk. That’s why our budget boosts two

rental assistance programs: our rental assistance program, known as RAP, and

the shelter aid for elderly renters, known as SAFER.

We’re going to increase the benefits of RAP so that low-income

families will see their average payment increase by $800 per year, and we’re

going to expand the eligibility of the program to help 3,200 new households

with their rent. Seniors who receive SAFER will see their average payments

increase by more than $930 a year. That means we can help over 35,000

households make their rent more affordable. These are important investments,

and they’re the right steps in the right direction for B.C.’s rental

supply.

Now, it’s clear that the province can’t fix the housing crisis alone.

We’re charting a path to build 114,000 affordable housing units, but this

can only be done by building partnerships. It will require a focused effort

on our part that will be spearheaded by a new housing hub office at B.C.

Housing.

This office will bring everyone together to facilitate the building of

affordable homes. It will develop partnerships to find, use or redevelop

available land in communities that are hardest hit by the housing crisis.

This new housing hub underlines the importance of partnerships and the

coordinated effort it will take to address housing affordability.

We’re also empowering our partners to make changes in their

communities. On-line accommodation providers will pay their fair share of

taxes with upcoming legislative changes to the PST and the municipal and

regional district tax, also known as the hotel room tax.

We know that affordable housing is a real challenge in communities,

particularly those that rely on the tourism sector. That’s why we’re going a

step further today to change the rules around the hotel tax. We’re giving

local governments the flexibility to use their hotel room tax revenue to

build housing in their communities to support the workers in the tourism

industry. This will give people that work in tourism in their communities a

place to live. We’re also giving the power to strata corporations to levy

higher fines for short-term rentals if they choose to do so.

Each community faces its own unique housing challenges. Each community

will now have more power and resources to address these challenges

locally.

[2:00 p.m.]

The scale and complexity of the housing affordability challenges mean

change isn’t going to happen overnight. We’ll need to join with mayors,

businesses and community leaders to speed up approvals and to find ways to

build more housing faster, and we’ll need to develop funding partnerships

across the board, with First Nations, with federal governments.

We’re taking action to give British Columbians greater choice in

finding housing where they work and where they go to school because we want

diverse, inclusive neighbourhoods. We want communities with safe, affordable

housing. We want housing that works for people.

Now, I have spoken about the changes to make the tax system more fair

to help housing affordability. People in British Columbia want a tax system

that is fair. They want everyone to pay their fair share of taxes, and they

don’t want hidden fees and costs. I have a clear mandate from the Premier to

bring more fairness into our tax system.

Since being sworn in as Finance Minister, we have, as part of our

Budget 2017 Update, cut medical service premiums by 50 percent, reversed the

tax break given to the top 2 percent of income earners, phased out the PST

on electricity by 50 percent to help businesses and lowered the tax rate on

small businesses.

But there’s more to do. B.C. is an outlier in Canada and the only

province that levies unfair, regressive MSP premiums that penalize families

and businesses. Whether a person earns $60,000 or earns $200,000 a year,

they pay the same amount. MSP fees have more than doubled over the last 16

years. MSP premiums also impact businesses. They’re complex. They’re

expensive to administer.

As part of this fiscal plan, I’m proud to announce that we are

eliminating all MSP premiums effective January 1, 2020. That means families

will save up to $1,800 a year, and individuals will save up to $900 a year.

This will be a huge savings for people, and it will help make our tax system

more fair and more progressive.

Now, it goes without saying that eliminating the MSP also eliminates a

large portion of government revenue. We’re making sure we can continue to

deliver the services that people count on and maintain fiscal

responsibility. That’s why we will replace the MSP revenue with an employer

health tax similar to other provinces.

Small businesses with payrolls less than $500,000 will not pay any

payroll tax. Businesses with payrolls between $500,000 and $1.5 million will

pay a lower rate. And businesses with payrolls over $1.5 million will pay

the full rate. The revenues raised will be invested in people and the

services they count on, health care being front and centre.

The continued success of our province includes strong, sustainable

economic growth, and the key to sustaining that growth is people. Budget

2018 focuses on two most important economic issues: child care and housing.

It makes a number of investments in sectors that help create jobs and

support our strong, diverse economy, like transportation and agriculture. It

also includes enhanced services that seniors, young people and Indigenous

communities all count on, like health care, education, the arts and

justice.

Health care receives the largest portion of our budget year after year

— and rightly so. Without your health, not much else matters. Investing in

our hospitals is investing in the people we care about. Hospitals are where

we welcome babies into this world and where our loved ones undergo

complicated surgeries or receive palliative care.

We’re building, upgrading, expanding and redeveloping hospitals across

B.C., from New Westminster to Terrace. We’re investing $3.1 billion in

capital spending in the health sector over the next three years to ensure

that health care professionals have modern facilities to provide the

services that British Columbians need.

B.C.’s health care system is the envy of places across the world. To

sustain and further improve our health care system, we’re increasing the

Ministry of Health’s operating budget with more than $1.5 billion in new

funding over the next three years.

[2:05 p.m.]

This increase includes $105 million to expand PharmaCare coverage for

240,000 families in our province. Drug prices have risen, and many British

Columbians can’t afford to take their medications as prescribed. People are

actually making choices between paying for prescription drugs and putting

food on the table. We know we can do better, and that’s why the changes to

PharmaCare eliminate deductibles and family maximums for low-income

families. This will help people get the prescription medications that they

need but are struggling to afford.

We also recognize that too many British Columbians do not have a

family doctor. That’s why $150 million over the next three years will

connect them to team-based primary care with other medical professionals,

including nurses, mental health practitioners and midwives.

Investing in our children means investing in our future. Our children

deserve the best education from dedicated teachers and teaching assistants

throughout this province. They’re the professionals who help shape the minds

of tomorrow. They get kids excited about science, athletics, literacy. They

teach them how to be good global citizens. That’s why we are hiring more

teachers in this budget, to bring our total to over 3,700 new hires across

this province since September. This will go a long way to providing needed

support for students and will address the increased need for qualified

teachers in our schools.

Because both teachers and young children need safe, accessible

classrooms to live in, we’re dedicating $2 billion over the fiscal plan to

maintain, replace, renovate or expand schools across B.C., from Surrey to

Prince George. This funding is going to bring more schools up to seismic

codes, improve playgrounds and create more learning spaces for our young

minds to explore.

To support vibrant communities for our young people to thrive in, we

are adding $15 million over three years to help the B.C. Arts Council to

support artists and cultural organizations in communities across B.C. This

is in addition to the $24 million that’s already allocated in the council’s

annual budget. An additional $3 million will be invested in Creative B.C.,

an organization that helps grow and develop B.C.’s creative economy through

film, digital media, music and publishing.

The people who need our support the most have been overlooked in this

province for far too long. The transportation needs of many of our most

vulnerable citizens have been ignored, dismissed or, worse, clawed back. I’m

proud to say that we reversed that poor decision to claw back bus passes for

people receiving disability assistance, and $214 million over three years is

an investment our government is not only willing but we are proud to make.

It means more than 100,000 people with disabilities can travel more freely

in their communities and connect with the services that they depend

on.

Seniors are another group who’ve seen services cut back. We’re

investing $548 million over three years to hire qualified support staff and

improve the quality of residential seniors care. Seniors are living longer,

fuller lives than ever before. They contribute to our province, and they

deserve to live their lives with dignity and respect. These investments will

give seniors better care and help them stay in their home longer.

Our most vulnerable youth have been ignored for far too long as well.

Grand Chief Ed John’s report on Indigenous child welfare highlighted that

Indigenous children and youth are 15 times more likely to be taken into

government care than non-Indigenous children. As a government, we’re doing

everything we can to implement that report and support Indigenous

communities to keep Indigenous children at home with their families. But

those who are or have been in care also deserve our help. After all,

government is their guardian. We have a responsibility to help a child grow

and embark on their life as an adult.

[2:10 p.m.]

Youth who are aging out of foster care have higher rates of drug

dependency, homelessness, school dropout rates and income assistance

reliance. It’s not the fault of the youth. It’s the fault of a failed

system.

Last September we announced a significant expansion to the tuition

waiver program, for young people who are formally in care to attend

post-secondary schooling or training. Last year, 189 students went to

college, university or training facilities through this program. Since last

September’s investment and expansion of the program, 229 young adults

received tuition waivers in just four months.

Now, in Budget 2018, we’re building on this work. We’re adding $30

million over the fiscal plan to enhance the agreements with young adults

program. These changes will increase monthly financial supports for more

than 800 former youth in care. We’ve seen what these young people can do

when they have the support and guidance as other young adults when they

leave home. This funding will ensure more young people do not feel alone and

have help with rent, groceries and career advice to help them on their path

to adulthood.

People deserve to live in safe communities, and everyone has the right

to live without fear or violence. For too long, support for women who are

survivors of violence has been lacking. These women, and often their

children, need help to escape the vicious cycle of abuse. In the fall, we

invested $5 million to help expand vital services such as counselling,

outreach and crisis support. In this budget, we are again standing with

survivors of violence with a commitment to ongoing funding of $18 million

over three years to increase supports for them.

Our housing plan also earmarks $141 million to start building 1,500

housing units for women and children fleeing abusive relationships. This

will increase services available to victims, including counselling, a safe

place to live and relocation support.

Now, safety goes hand in hand with access to affordable quality legal

services. Over the years, cuts to legal aid and reductions in family law

services have left people without legal representation and torn families

apart. That’s why we’re expanding legal aid, including Indigenous and family

law services, with a $26 million investment over the fiscal plan. We’re also

investing $10 million over three years to fund a new family dispute

resolution service and increase digital access to justice services, to

better reach families and people all across the province.

Continued economic growth in this province is dependent on the

diversity of investments we make to sectors that British Columbians rely on,

like our transportation and agriculture sectors.

The people who rely on our coastal ferry system are also at a

disadvantage. B.C. Ferries is part of our highway system. It should work for

the people who use it. Ferry costs have skyrocketed, putting islanders at a

disadvantage that is both costly and unfair. Transportation and businesses

are feeling the pinch too. Budget 2018 helps B.C. Ferries and other

important transportation links work for British Columbians. We are freezing

fares on all three major B.C. ferry routes, rolling back fares on non-major

routes by 15 percent and fully restoring the Monday to Thursday, passenger

discount rate for seniors.

Government knows that the Pattullo Bridge is an important link between

Surrey and greater Vancouver, but it must be replaced. We prioritized that

in this budget. We’ve announced funding over three years to fund the initial

stages of that project and to get going with the replacement, because

replacing the bridge will improve safety for commuters, get people home to

their families faster and facilitate the transportation of goods.

To help bolster our international exports, we’re investing in programs

to help get our goods to global markets. We have so much to offer the rest

of Canada and the world in terms of our high-quality fruit, vegetable,

seafood, wine, craft beer, agrifood. With Budget 2018, we’re investing $29

million over three years in B.C.’s agriculture, food and seafood sectors

through Grow B.C., Buy B.C. and Feed B.C. programs.

[2:15 p.m.]

Support for farmers, better local marketing efforts and groundwater

protections that come from this investment will support our vital

agricultural land reserve and improve B.C.’s brand recognition for the food

we sell in Canada and internationally.

We live in a province that is geographically blessed. We’re incredibly

lucky to have our mountains, our rivers, our oceans and our lakes. Keeping

our B.C. parks as destinations for locals as well as tourists requires

resources and trained staff. That’s why we’re adding $5 million, over three

years, to B.C. Parks budget to ensure that 1,900 new campsites will meet the

standards that British Columbians and nature lovers from around the world

expect.

We’re also allocating $9 million to hire 20 conservation officers and

enhance programs that reduce human-wildlife conflict through education,

innovation and cooperation. And $14 million, over three years, will help

develop and implement a revitalized B.C. wildlife management initiative to

better protect wildlife through conservation, biodiversity and habitat

protection.

In partnership with B.C.’s Green Party caucus, your government has

recommitted B.C. to a cleaner, greener future by reducing greenhouse gas

emissions, increasing B.C.’s carbon tax rate, growing our clean economy by

investing in green initiatives and supporting B.C.’s transition to a

low-carbon economy. Starting April 1, 2018, we will increase the carbon tax

rate by $5 per tonne, reaching $50 per tonne in April 2021.

To help families that need it, we are increasing the climate action

tax credit by an additional $40 million. Additional relief will also be

provided in future years as the carbon tax increases.

We know that B.C.’s industries are vital to our provincial economy. We

want them to prosper, to be competitive, to help us reach our emission

targets. To achieve this, B.C. is creating a new clean growth incentive

program that will reward industry for changing the way they do business to

better align with the world’s cleanest performers.

Over the coming months, the Minister of Environment and Climate Change

Strategy will consult with businesses, First Nations and experts and the

public on the details of this program. By being open to innovation and

bringing industry on board, we will build a stronger economy by being a

leader on climate action.

We must act now. The effects of climate change are already at our

doorstep. Wildfires are unpredictable, but we know they’re going to worsen

with climate change. We need to do more in communities to support our

province’s response to wildfires. That’s why Budget 2018 invests an

additional $72 million, over three years, to help communities better prepare

for and respond to wildfires and to provide further wildfire recovery

support.

Through record levels of investment, we’re responding to the most

urgent need throughout B.C. for the benefit of all British Columbians. These

investments will result in real changes at the community level and support

strong, sustainable growth that British Columbians can benefit from for

generations to come.

Our government is focused on building a strong economy in every corner

of our province, where people are rewarded for hard work with good wages,

job security, a safe place to build their career. You’ve heard that a lack

of affordable, quality child care for parents is hampering businesses’

ability to retain a reliable workforce. A lack of affordable housing is a

real barrier to business growth. That’s why we’re taking action on both

fronts: to help businesses create more jobs and improve their ability to

recruit and retain workers.

Budget ’18 also invests $26 billion, over three years, in capital

spending on schools, hospitals, roads, bridges and other infrastructure —

the highest level in B.C.’s history. This investment will create

well-paying, long-term work for British Columbians in a variety of sectors

across our province. These large numbers mean a lot to people, who are going

to see that investment returned to them by way of improved roads, new

hospitals and expanded schools, as well as the 50,000 direct and indirect

jobs created in every corner of B.C. during the construction of $9 billion

worth of major taxpayer-supported capital projects going on in

communities.

[2:20 p.m.]

B.C.’s economy continues to generate full-time employment, with 4,100

new full-time jobs created just last month. We continue to have the lowest

unemployment rate in Canada.

We’re building on these successes by supporting job creators

throughout the province. We’ve already seen companies add jobs in the

high-tech, transportation and resource sectors in Vancouver, Prince Rupert,

Prince George and across our province. The recent appointment of Alan Winter

as B.C.’s innovation commissioner will help us create new opportunities for

B.C. tech companies. These companies signal a strong international

endorsement of B.C.’s economy and talent pool, and along with B.C.’s small

businesses, they can help to create jobs that families can depend

on.

In fact, small businesses across B.C. accounted for about 45 percent

of job creation in our province recently. We know we need to support the

success of small businesses. That’s why we immediately cut the small

business tax rate from 2.5 percent to 2 percent and why we’re establishing

the small business task force, to help us better understand their needs so

we can create the best policies for them to thrive.

On January 1 of this year, B.C. businesses saw savings with a 50

percent cut to PST on non-residential electricity, and we’re completely

eliminating the PST on non-residential electricity on April 1, 2019. This

translates into savings of more than $150 million annually for B.C.’s

businesses. This will help them create jobs and a more sustainable economy

for our province. It’ll help businesses expand into new markets and reinvest

in the technology of tomorrow.

Budget 2018 is balanced. We’ve had to face some tough choices to build

a balanced budget. We inherited financial burdens that should have been

acted on earlier. The years of poor choices and neglect at ICBC mean they’re

forecasting an over $1.3 billion loss this fiscal year. These losses have

put real pressure on our fiscal plan, now and for future years.

Last year we also faced an unprecedented wildfire season. We were

proud to support the communities and businesses that were facing the

wildfire threat. The end result was significant, with wildfire costs now

reaching more than $870 million in ’17-18. With these pressures, it’s more

important than ever to focus on those we are here to serve: the people of

this province.

What’s different about this budget, and indeed this government, is

that we understand the concept of balance. Previous budgets have emphasized

fiscal balance, but they didn’t balance this fiscal prudence with British

Columbians’ priorities. We are economic leaders in Canada, but we can’t

consider ourselves leaders if we’re not sharing the prosperity of our

province with the British Columbians who helped build it. This budget is

balanced in its approach, and it’s balanced fiscally.

B.C. continues to outperform economic expectations. We’re the only

province rated triple-A by each of the international credit-rating agencies,

and in January, 2.4 million people had jobs, a near-record level for British

Columbia. We continue to have the lowest unemployment rate across Canada,

and private sector forecasters expect B.C. once again to rank near the top

of provincial rankings in economic growth in 2018 and 2019.

This is good news for British Columbians and our future. These

positive economic indicators translate into good jobs and growth

opportunities in communities. They go hand in hand with key investments in

people and services that will help drive future economic growth.

We’re committed to building on this growth as we deliver on our

commitments to British Columbians. However, we must be aware of the risks

when it comes to our bottom line.

We continue to be careful managers of the public’s tax dollars. That’s

why this budget keeps a comfortable forecast allowance of $350 million and

why we’ve set aside $550 million in contingencies for the next fiscal year.

This leaves us with a total projected surplus of $219 million, as well as

surpluses in the following two years.

[2:25 p.m.]

Our debt remains affordable. Our debt-to-GDP ratio is expected to

remain below 16 percent over the fiscal plan period, and our debt-to-revenue

ratio has improved since September’s Budget 2017 Update and is forecast to

stay below 90 percent. These numbers mean that we can look ahead and feel

confident in the stable, steady economic growth of our province.

Make no mistake. B.C. is a wealthy province, rich in resources, rich

in community and talent, rich in the diversity of our people. But we’ve

become divided by choices that did not put people first. Ultimately, we all

want the same thing: to live in a safe, vibrant community; to take pride in

the work we do; to help our friends, families, neighbours; and to be

provided with opportunities to succeed.

Budget 2018 lifts people up. It makes a historic investment to take

care of our children. It takes bold steps to tackle the housing crisis. It

invests in record levels of infrastructure to support jobs and spur economic

growth in every corner of our province.

A budget needs to positively impact your life. The investments we make

today have been carefully considered with one thing in mind: what actions

can we take today to build a better future for all British Columbians? That

starts with putting people at the centre of the choices we make every day.

We have charted a more affordable, balanced and hopeful vision for B.C. with

Budget 2018.

To the people of British Columbia, I want to say this. Budget 2018 is

a budget that works for you because this is your province, we are your

government, and we are working for you.

S. Bond: It’s my privilege to deliver some brief remarks and initial response

to Budget 2018 on behalf of the official opposition and my co–Finance

critic.

I’d like to begin by congratulating the Finance Minister on her first

full budget being tabled today. It is a significant undertaking. It takes a

great deal of effort and a lot of support by British Columbia’s incredible

public service. We’ve had some experience with that process, and I certainly

thank them for all of their efforts.

If there is one document that clearly helps to define a government, it

is the provincial budget. It provides an outline of government priorities.

It details the government’s spending plans. Essentially, the provincial

budget is an accountability document. It is a report card that voters can

look at and see if a government is, in fact, delivering on its campaign

promises. For that reason, it’s equally important to account for what has

been left out of a budget.

Voter expectations are very high in British Columbia. People expect

this government to deliver on what it said it would do during the election

campaign. In our initial analysis of the budget, we see a very significant

spending plan. Much of this is what all of us heard British Columbians talk

about during the last election.

[2:30 p.m.]

Yet we see spending that far outweighs revenue generation in this

province. In fact, spending growth is projected to be almost double the

anticipated revenue growth. In addition, this budget projects that the

government is expecting revenues from B.C.’s resource economy, the backbone

of our economy, to decline across a number of sectors. So Budget 2018

outlines significant spending even while projecting revenue from our major

economic sectors is declining.

While there are certainly investments in child care and housing —

important initiatives, which British Columbians certainly talked about

during the last election — there is little evidence of any attention being

paid to the revenue side of the equation. Simply put, there is no plan to

grow the economy, to pay for the long lists of promises made. In fact, the

biggest revenue generator in this budget is tax increases on job creators in

this province.

Since taking office, the NDP, as a government, has or will have

introduced an additional $8 billion in annual taxation measures. This means

the very people responsible for creating jobs and growing the economy in

British Columbia are being hit with billions of dollars in tax increases —

tax increases that are going to affect their ability to invest in

well-paying, family-supporting jobs in this province. That includes a new

payroll tax and an increased carbon tax that is no longer

revenue-neutral.

This is a government that thinks government is responsible for growing

the economy. This government promised to follow through on the B.C. Liberal

plan to eliminate MSP premiums, and this budget does reflect that

commitment. Government is eliminating MSP premiums, while at the same time,

they are adding this to the tax burden of businesses in British

Columbia.

It’s also interesting to note that this new payroll tax kicks in a

year before the MSP premiums are phased out, generating a tax windfall for

the government — a government that is giving with one hand and taking with

the other.

This budget also features a carbon tax that is no longer

revenue-neutral, no longer requires government to report out on how that

revenue will be used. Once again, a revenue source for government’s spending

plan that comes as a tax burden for British Columbians.

We commend the government for recognizing the needs of families for

more child care, an issue that we also recognized in our platform last year.

However, we have significant concerns about implementation.

First, it is now clear that the $10-a-day promise was never more than

a branding exercise. We are also concerned about a stereotypical

big-government solution, which we believe will suffer from the same issues

as all big-government solutions — escalating costs, bureaucratization,

overregulation, unionization and wait-lists. In particular, without an

increase in wages, the government has not provided a way to ease the

critical shortage of early childhood educators, without whom, new spaces

will be difficult to deliver.

Finally, lower-income families who prefer informal arrangements or

parents who want to care for their children at home receive short shrift

from this government — meaning less parental choice, not more.

On housing, we recognize that government has a substantive housing

plan. But let’s remember what they promised British Columbians. There is no

evidence in this budget — in fact, evidence to the contrary — that this

government will ever reach the 114,000 new affordable housing units that

they promised British Columbians.

The promise to review the homeowner’s grant in tandem with the rental

subsidy is ominous, suggesting that one might be substituted for another. A

reduction in the homeowner’s grant would effectively increase property taxes

for every homeowner in the province by several hundred dollars per year, and

I would remind the government that many homeowners are also low-income

earners.

[2:35 p.m.]

On the other hand, the government is also backing away from its

promise of a $400 rental rebate, even with its massive tax increases. It is

nowhere to be found in this budget, despite what the government promised

British Columbians.

This plan has absolutely no relief for commuters in the Lower

Mainland, with the exception of the Pattullo Bridge, notwithstanding taking

$8 billion in taxation revenue. This plan will not deliver the widening of

Highway 1 in the Fraser Valley, Surrey LRT, the George Massey Tunnel or the

Broadway line.

On the whole, this budget is balanced on the backs of job creators in

this province. All this, and additionally we are concerned about external

forces that can impact the sustainability of this budget. Those include

NAFTA, softwood, interest rate increases and more. Businesses may choose to

leave the province because of an overly burdensome tax regime and an

unfriendly business climate.

The official opposition is deeply concerned about a budget whose

spending plan exceeds revenue generation. This budget reflects a massive

spending plan. Spending is growing at twice the rate of government revenue

growth, and the fiscal plan is wholly dependent upon a growing economy.

However, the plan has no measures to grow the economy. In fact, the exact

opposite is the case. The measures in this budget substantially inhibit

private sector growth and job creation.

If all of this sounds vaguely familiar, it’s because we’ve heard this

story before: tax, spend and tax some more. Welcome back to the NDP of the

1990s. And remember, the sequel is always worse.

With those brief comments, I will reserve my right to continue my

remarks at the next sitting of the House. Mr. Speaker, I now move that we

adjourn debate.

S. Bond moved adjournment of debate.

Motion approved.

Introduction and

First Reading of Bills

BILL 2 — BUDGET MEASURES

IMPLEMENTATION ACT,

Hon. C. James presented a message from Her Honour the

Lieutenant-Governor: a bill intituled Budget Measures Implementation Act,

Hon. C. James: I move first reading of Bill 2, Budget Measures Implementation

Act, 2018.

The bill amends 21 statutes in order to implement many of the tax

measures in Budget 2018.

The Income Tax Act is amended to replace the infirm dependant

credit and the caregiver credit with a new B.C. caregiver credit for

2018 and subsequent tax years and to expand the Film Incentive B.C. tax

credit to scriptwriting. The act is also amended to eliminate the

education tax credit for 2019 and subsequent years. The Income Tax Act

is also amended to extend several tax credits — the mining flow-through

share tax credit for one year, the farmers food donation tax credit for

one year, the interactive digital media tax credit for five years and

the book publishing tax credit for three years.

The Provincial Sales Tax Act is amended to enable on-line

accommodation platforms to register to be collectors to collect the

provincial sales tax and the municipal and regional district taxes. The

changes will be effective on a date to be specified in regulation. The

act is also amended, effective April 1, 2018, to increase the luxury

surtax rate on passenger vehicles with a purchase price of more than

$125,000 and above.

The Property Transfer Tax Act is amended to increase the rate on

residential properties to 5 percent from 3 percent for the assessed

value above $3 million, effective February 21, 2018. The act is also

amended to exempt transfers, in certain circumstances, in the case of a

bankruptcy.

The School Act is amended to include a new school tax on

residential properties assessed above $3 million and to include a new

revitalization exemption for purpose-built rental housing which receives

the municipal revitalization exemption. These measures are effective for

the 2019 tax year.

[2:40 p.m.]

The Tobacco Tax Act is amended, effective April 1, 2018, to

increase the tax rate on cigarettes to 27.5 cents from 24.7 cents per

cigarette and to increase the tax rate on loose tobacco to 37.5 cents

from 24.7 cents per gram.

The Motor Fuel Tax Act is amended, April 1, 2018, to increase the

fuel tax rates on gasoline and diesel in the capital regional district

to 5.5 cents per litre from 3.5 cents. The Carbon Tax Act and Motor Fuel

Tax Act are amended to clarify that fuel sales between

refiner-collectors are exempt from security.

There are a number of statutes amended to improve tax

administration through increased audit, enforcement and

information-sharing provisions; provide for audit recovery fees in the

case of out-of-province tax audits and necessary consequential

amendments to various statutes.

Finally, the Hydro and Power Authority Act is amended to clarify

that B.C. Hydro school tax liability is limited to land it owns in fee

simple and on improvements.

Mr. Speaker: You’ve heard the question for first reading.

Motion approved.

Hon. C. James: I move that the bill be placed on the orders of the day for the

next sitting of the House after today.

Bill 2, Budget Measures Implementation Act, 2018, 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.

Tabling Documents

Hon. C. James: I have the pleasure to rise to table government’s overall strategic

plan in the Budget and Fiscal Plan 2018-19–2020-21 , which together

fulfil the requirements of sections 7 and 12 of the Budget Transparency and

Accountability Act.

I also table, on behalf of the ministers responsible, the service

plans as required under

section 13 of the Budget Transparency and

Accountability Act.

The service plan documents are presented in two binders. The first

binder contains service plans for the Office of the Premier and 20

ministries. The second binder contains the service plans for 27 delivery

agencies and Crown corporations. The second binder includes a listing of

organizations that are exempted from the service plan requirements of

section 13 of the Budget Transparency and Accountability Act.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 1:30 p.m. tomorrow.

The House adjourned at 2:43 p.m.

The Official Report of Debates ( Hansard ) and webcasts of

proceedings

are available on the Internet. Chamber debates are broadcast on

television.

Copyright © 2018: British Columbia

Hansard Services, Victoria, British Columbia, Canada