British Columbia Committee Hansard (Blues) — Wednesday, March 6, 2019 p.m. — Number 216 (HTML) (41st Parliament, 4th Session)
20190306pm-CommitteeA-Blues
British Columbia — Debates (Hansard)
Fourth Session, 41st Parliament
(2019) OFFICIAL REPORT
OF DEBATES
(HANSARD)
Wednesday, March 6, 2019
Afternoon Sitting
Issue No. 216
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business
Introductions by Members
Introduction and First Reading of Bills
Bill 14 — Heritage Conservation Amendment Act, 2019
Hon. D. Donaldson
Bill M203 — Equal Pay Reporting Act
S. Cadieux
Bill M204 —
Interpretation (Uniform Pacific Time Zone) Act, 2019
L. Larson
Bill M205 — Name Amendment Act, 2019
M. Polak
Statements (Standing Order 25B)
Equal Voice and women in politics
M. Dean
Women’s participation and leadership
E. Ross
Lymphedema
N. Simons
Vancouver International Auto Show
E. Foster
B.C. Tech Summit
R. Glumac
Steveston Karate Club tournament
J. Yap
Oral Questions
Speculation and vacancy tax
S. Bond
Hon. C. James
T. Redies
Panel report and government policies on natural gas fracking
S. Furstenau
Hon. M. Mungall
Community benefits agreement and workers
S. Cadieux
Hon. C. Trevena
T. Wat
Forest industry tenures
C. Oakes
Hon. D. Donaldson
Government handling of issues
M. Polak
Hon. J. Horgan
Petitions
S. Furstenau
Tabling Documents
Office of the Registrar of Lobbyists for B.C., Investigation Report
19-01 , lobbyist: Utilia Amaral, January 24, 2019
Office of the Registrar of Lobbyists for B.C., Investigation Report
19-02 , lobbyist: Iuliana Calin, January 24, 2019
Motions Without Notice
Membership changes to Finance Committee
Hon. M. Farnworth
Orders of the Day
Second Reading of Bills
Bill 6 — Supply Act, 2018–2019 (Supplementary Estimates)
Hon. C. James
Committee of the Whole House
Bill 6 — Supply Act, 2018–2019 (Supplementary Estimates)
Hon. C. James
Report and Third Reading of Bills
Bill 6 — Supply Act, 2018–2019 (Supplementary Estimates)
Second Reading of Bills
Bill 12 — Supply Act (No. 1), 2019
Hon. C. James
T. Redies
Hon. C. James
Bill 5 — Budget Measures Implementation Act, 2019
Hon. C. James
S. Bond
Hon. G. Heyman
T. Redies
A. Weaver
N. Simons
D. Routley
Hon. C. James
Bill 9 — Attorney General Statutes Amendment Act, 2019
Hon. D. Eby
M. Lee
B. D’Eith
D. Routley
Hon. D. Eby
Committee of the Whole House
Bill 2 — Protection of Public Participation Act (continued)
Hon. D. Eby
M. Lee
Proceedings in the Douglas Fir Room
Committee of Supply
Estimates: Ministry of Children and Family Development (continued)
Hon. K. Conroy
D. Clovechok
I. Paton
L. Throness
Hon. K. Chen
WEDNESDAY, MARCH 6, 2019
The House met at 1:34 p.m.
[Mr. Speaker in the chair.]
Routine Business
Prayers.
[1:35 p.m.]
Introductions by Members
M. Polak: Joining us today in the gallery are Mayor Jack Froese from the
township of Langley and Coun. Brent Asmundson from Coquitlam. Would the
House please make them very welcome.
J. Thornthwaite: I have some very special guests today. First of all, Nirmala Raniga —
she’s the founder of the Chopra Addiction and Wellness Center. She got a
2008 nomination for the YWCA Women of Distinction Awards; she was nominated
for the 2008 Celebration of Business Excellence Awards; and she is a
certified master educator of primordial sound meditation, the seven
spiritual laws of yoga and perfect health Ayurvedic lifestyle.
She’s got five out-patient clinics, one in the Lower Mainland. I
visited one in Squamish. And she co-founded all of these clinics with Deepak
Chopra. She has her colleagues here with her today, and I wish that the
House would make them welcome: Nirmala herself, Shalina Kajani, Dr. Mario
Baff, Helen Chen, Inderpal Sahans, Subhaq Sami and Michelle Ibaraki, all
from Chopra Wellness. Could the House please make them welcome.
R. Kahlon: I have a good friend visiting today from Delta, Mark Gordienko. He’s
the former president of the ILWU, and he’s come all the way over to watch
the proceedings today. I hope the House can please make Mark
welcome.
T. Redies: I think my colleague is going to make an introduction as well, but I
just wanted to acknowledge my constituent. Scott Ellis with Guide Outfitters
Association is here in the House with some of his colleagues.
Lovely to see you, Scott.
I hope the House will make all the people from the Guide Outfitters
very welcome today.
D. Davies: Just to follow on my colleague’s tails, I just want to introduce a
couple of members that are here with the Guide Outfitters of B.C. We have
Doug McMann, Michael Schneider and Scott Ellis, as just mentioned; and all
the way down from the thriving metropolis of Baldonnel, Sean Olmstead.
Please make them feel welcome.
M. Dean: Today it’s my great pleasure to welcome members of Equal Voice B.C.:
Thoren Hudyma, Hannah Waldaez, Karen Aitken, Astraland Phillips and Nicole
Johnson. Would the House please make them very welcome.
S. Malcolmson: As we recognize International Women’s Day, I encourage members of the
House to make welcome my friend and Nanaimo businesswomen Ashwa Siri, who
was a founder of what we called Women in Politics in Nanaimo, now formed as
an Equal Voice
chapter for central Vancouver Island.
Also in the gallery, friends that I met initially in Ottawa’s
parliament from the Canadian Jewish Political Affairs Committee, Rachael
Segal and Jaime Reich — women that I met along with our colleague Robyn
Fishbein in Ottawa. Very glad to have you here, also, representing the need
to have more women in politics.
Hon. M. Mungall: As you can see, Zavier insisted on joining me to make this
introduction, because the people I’m introducing are very important to him.
They are his godparents. Jeff and Lisel Forst are in the gallery today
joining us all the way from Nelson. Can the House please make them very
welcome.
[1:40 p.m.]
M. Lee: I’d like to rise to introduce my young friend, Jonathan Ling, who’s
here from Vancouver visiting for the day. We all have many young supporters
who support us in our efforts, and Jonathan was a great volunteer for me in
my 2017 local election campaign. He’s a Langara student who’s finished his
couple of years and off to SFU university through the great transfer program
that Langara College has. Will the House please join me in welcoming
Jonathan.
Hon. D. Donaldson: Today I’d like to introduce ministry staff, joining us in the gallery,
who worked hard on amended legislation that I’ll be introducing this
afternoon: Jillian Rousselle, director of the archaeology branch; Leanne
Davies, manager of the archaeology branch; Richard Linzey, director of the
heritage branch. They’re joined by staff from the archaeology branch. I
think there are more than 20 of them here today. I won’t name all of them,
but will the House please make them welcome.
P. Milobar: Today in the precinct we have students from the ASCEND school based
out of Kamloops. I would ask the House to make them feel welcome.
S. Furstenau: I’d like to introduce Mary Gallagher, who’s here in the precinct today
with a group of her students from ASCEND Online school. I look forward to
meeting with them later this afternoon. Would the House please make them
welcome.
D. Barnett: I, too, would like to ask the House to welcome Doug McMann, a
guide-outfitter from the Cariboo-Chilcotin, and welcome him here
today.
Introduction and
First Reading of Bills
BILL 14 — HERITAGE CONSERVATION
AMENDMENT ACT,
Hon. D. Donaldson presented a message from Her Honour the
Lieutenant-Governor: a bill intituled Heritage Conservation Amendment Act,
Hon. D. Donaldson: I move that the bill be introduced and read a first time
now.
Today I introduce changes to the Heritage Conservation Act to
enhance the protection of areas with heritage and archaeological values
in the province. The Heritage Conservation Act, whose purpose is to
encourage and facilitate the protection and conservation of heritage
property, has not been substantially amended in over 20
years.
The heritage of our province is vitally important because it
connects us all to the rich cultural history of B.C., and especially to
that of B.C.’s Indigenous peoples. These changes act, in part, on our
commitment to implement the United Nations declaration on the rights of
Indigenous peoples.
Changes will allow government to take more decisive action to
preserve heritage and archaeological sites and objects. For example,
people will be legally required to report discoveries of specified sites
of objects with potential heritage value. As well, a person may be
required to obtain and pay for a heritage inspection or investigation as
a precondition of alteration of a site, and compliance and enforcement
tools will be improved.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. D. Donaldson: I move that the bill be placed on the orders of the day for second
reading at the next sitting of the House after today.
Bill 14, Heritage Conservation Amendment Act, 2019, 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.
BILL M203 — EQUAL PAY
REPORTING
ACT
S. Cadieux presented a bill intituled Equal Pay Reporting
Act.
S. Cadieux: I move that the bill intituled Equal Pay Reporting Act, of which
noticed has been given in my name on the order paper, be introduced and
read a first time now.
As I look around this chamber at the 33 other women who have taken
up the reins of elected public service and the three women who sit here
at the Clerk’s table, I’m enormously grateful to be living in this time.
I am grateful to have been raised by parents who never, ever placed
limits on my potential, my worth or my opportunity. The B.C. Legislature
is fortunate to have strong, determined male and female leaders in all
caucuses. My wish is that we would work together, because there are
still, in 2019, inequalities that need to be addressed.
[1:45 p.m.]
Women make up 60 percent of the workforce. However, we are still
affected by the reality of the gender gap. The gender pay gap is still
31 percent in Canada — 31 cents on every dollar that could be used for
better accommodation, more savings, a route out of poverty or
investments in education. It’s 31 percent of your wage every day that
just vanished because of your gender. This money isn’t taken up by taxes
or other deductions, just by the invisible hand of inequality. It only
gets worse for low-income, racialized and Indigenous women. It’s the
reality, still, of our modern world.
What do we do to make important and lasting change in B.C. and set
the tone for other provinces to follow? First, we admit the gap exists.
We admit that we have work to do, and we act on solutions. We here have
the power to prescribe transformational measures to compel employers to
do what’s right and what is best for British Columbians.
This bill intends to bring pay inequality into the light by
requiring any employer in B.C. with 50 or more employees to publicly
post an annual breakdown of gender wages in their business. The
information will include wage and bonus pay for male and female
employees and will be available on a company website or by other easily
accessible means. The aim of the bill is to drive change, facilitate
conversation and allow both employers and the public to see where there
is still work to be done.
It’s time to move past passively acknowledging that there’s a
problem. Yes, there’ll be lots of conversations that it will spark, lots
of theories and lots of excuses, but really, the only question I ask of
this House is: would you be okay with it if I were to pay your daughter
less than your son?
Mr. Speaker: The question is first reading of the bill.
Motion approved.
S. Cadieux: I move the bill be placed on the orders of the day for second
reading at the next sitting after today.
Bill M203, Equal Pay Reporting Act, 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.
BILL M204 —
INTERPRETATION
(UNIFORM PACIFIC TIME
ZONE) ACT, 2019
L. Larson presented a bill intituled
Interpretation (Uniform Pacific
Time Zone) Act, 2019.
L. Larson: I move that the bill intituled the
Interpretation (Uniform Pacific
Time Zone) Act, of which notice has been given in my name on the order
paper, be introduced and read a first time now.
In 2017 and in 2018, the city of Grand Forks put a resolution on
the floor of the UBCM asking for support to end time-shifting and to
keep daylight savings time as our permanent time in British Columbia.
On-line surveys show that nearly 85 percent of British Columbians were
in support of ending time-shifting, and there continues to be growing
public support in B.C. to stop this 101-year-old practice.
Also in other parts of the world, there is a rising debate on this
issue. The European Parliament is currently reviewing the practice of
time-shifting. More notably for British Columbia, Washington state and
California are currently debating bills to maintain Pacific Daylight
Time as the new Pacific Standard Time. It would be prudent that we
maintain our good economic relationship with these west coast states and
follow suit.
If this act should come into effect, it will allow the
Lieutenant-Governor, by order-in-council, to establish a uniform time
zone, as outlined in the
Interpretation Act.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
L. Larson: I move that the bill be placed on the orders of the day for second
reading at the next sitting of the House after today.
Bill M204,
Interpretation (Uniform Pacific Time Zone) Act, 2019,
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.
BILL M205 — NAME
AMENDMENT ACT,
M. Polak presented a bill intituled Name Amendment Act,
M. Polak: I move that the bill intituled Name Amendment Act, 2019, of which
notice has been given in my name on the order paper, be introduced and
read a first time now.
Many people in British Columbia choose to adopt a hyphenated or
combined surname when they marry. Unfortunately, the act as it is
currently worded does not afford those individuals the ability to do so
without a formal name change.
[1:50 p.m.]
While this does affect men, the impact is disproportionately felt
by women, who must either struggle through difficulties with their
identity documents or face the expense of a formal name change. This
amendment will mean that those who choose a hyphenated or combined
surname will be treated in the same manner as those who adopt the
surname of their spouse.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
M. Polak: I move that the bill be placed on orders of the day for second
reading at the next sitting after today.
Bill M205, Name Amendment Act, 2019, 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.
Statements
(Standing Order 25B)
EQUAL VOICE AND WOMEN IN POLITICS
M. Dean: Today it’s my honour to recognize and thank Equal Voice for all
their work and for being here today to help us all celebrate
International Women’s Day and women in leadership.
Working with women, men and gender-diverse people across political
parties and from all parts of the country, Equal Voice is a
multipartisan organization that has been advocating for the equal
representation of women in Canada’s governments since 2001. The work of
Equal Voice includes celebrating women in politics as well as outreach
to inspire women to engage in politics, and encouraging women to run for
office at all levels.
The work that Equal Voice is doing to support more women being
elected to all levels of government is so important, because having
women represented at the centre of decision-making is how we move the
dial on gender equality. We can all agree that our governments should
represent our communities, and I’m very proud that women make up half of
our government’s cabinet for the first time in B.C.’s
history.
Seeing more women in leadership positions not only ensures that
our lived experiences are represented; it also shows young women and
girls what they are capable of and what they can achieve. Events like
today’s Equal Voice gathering at the Legislature help to raise awareness
about the impact of women’s underrepresentation, and it impels us to
keep improving the representation of women in governments, on boards and
in leadership positions. Our actions today will lay the foundation for
the future our children will inherit.
WOMEN’S PARTICIPATION
AND
LEADERSHIP
E. Ross: March 8 marks International Women’s Day, and as a father of two
girls, I gave my daughters the lessons my father gave to me: be strong,
stand up for yourself, and don’t let anybody put you down.
As a coach of a girls’ 17-and-under basketball team and later as a
coach of a 17-and-over women’s team, I tried to deliver the same
message, because I wanted to break the idea of women being treated as
wallflowers and show them that they could succeed at anything they want
to. It’s the same message I give to Aboriginals in all walks of life no
matter what their gender identity. That’s the theme of this year’s
International Women’s Day: “Balance for better.”
However, 14 years ago, I was made painfully aware of the issues
women face in leadership roles. I was at a conference in Montreal where
academics were presenting reports on issues from all over the world. One
woman who was advocating for female empowerment asked me about the role
of Haisla women in our Haisla council structure. I proudly pointed out
how over a third of our council was female, and the amount of women in
our staff was overrepresented. She then asked me if I noticed that these
women had influence at our table or if they were often overlooked or
overpowered by more outspoken men.
It was the first time I’d been asked this question, and in
self-reflection, I had to admit that in many cases this was true. I then
started to look at how leaders are treated based on their gender, from
Christy Clark to my own chief councillors, including the current chief
councillor, and saw the unfairness, even in terms of pay
equity.
There are no real differences between a male or female leader in
terms of their abilities or skill sets. The difference is how we view
and treat women. Sometimes even women treat female leaders differently,
as it’s a habit that society has ingrained into far too many of us.
Women have made tremendous strides in terms of their roles in society.
Now we have to ensure that everyone catches up and recognizes the
equality and respect of female strength and leadership.
LYMPHEDEMA
N. Simons: Today, March 6, is World Lymphedema Day. If you’re wondering what
lymphedema is, that’s why there is a lymphedema day, and I’m pleased to
tell you about it.
[1:55 p.m.]
It was new to me until a constituent and the president of the B.C.
Lymphedema Association, Christine Chandler, approached my office to tell
me about it. It’s a condition that can be hereditary, but it’s most
commonly caused by the removal of or damage to one’s lymph nodes — as
part of cancer treatment, for example.
It results from a blockage in the lymphatic system, a part of the
immune system. The blockage prevents lymph fluids from draining, and the
fluid buildup leads to swelling. The swelling caused by lymphedema
ranges from mild, hardly noticeable changes in the size of your arm or
leg to extreme changes that make the limb hard to use.
It’s estimated that around one million Canadians are living with
lymphedema or lymphatic diseases. While there is no cure for lymphedema,
it can be managed to varying degrees of success with early diagnosis and
diligent care.
The condition has a serious impact on its sufferers. People who
have lymphedema have to adjust their life significantly. They have to
ensure they’re doing all the things they need to do to reduce the
swelling, and they often have to use specialized compression clothing.
They have to be very careful about their skin care. There is no cure.
Surgery is in its infancy.
The purpose of raising awareness is to accomplish a few things.
First, to be aware that there are individuals in our communities who are
suffering silently in pain and discomfort, and we should be aware of
that. Too many who suffer feel alone. Also, too many go without the care
they need.
The other benefit of raising awareness is to inform policy-makers
and to ensure there are adequate resources allocated to diagnosis,
treatment and care options and, of course, research.
As advocates like Christine say, it all starts with
awareness.
VANCOUVER INTERNATIONAL AUTO SHOW
E. Foster: The annual international auto show is the best-attended consumer
show in western Canada. It’s a gathering place where car and truck
lovers are dazzled by the latest vehicles, classics, modified supercars
and speciality one-off creations.
It’s all happening between March 19 and 24 at the Vancouver
Convention Centre. More than 400 vehicles will be on display from the
world’s leading auto manufacturers, who will feature their latest
products, including those not yet in the dealer showrooms.
An increasingly important component of the show is the expanded
Electric Vehicle Discovery Centre that will provide an opportunity for
visitors to test-drive and learn more about clean energy vehicles. In
total, the test-driving
section of 36 hybrid and electric vehicles is
the largest ever, and many of the top-selling brands will be
available.
Of course, the auto show is about much more than what’s new or
what’s next on the electric vehicle front. The event will include a
number of features that will be sure to turn heads: the 1965 Notchback
Mustang, otherwise known as the Hoonicorn Mustang — there’s like ten of
those in the whole world right now; the Canadian-made and designed
Felino supercar; the new McLaren Senna; the first new Toyota Supra; and
one of eight VW Bugs used in the Transformers movie
Bumblebee .
This is just the tip of the iceberg. This year’s offerings will
include a who’s who of the luxury and exotic classes and an ode to the
past, with some of the finest original and restored vintage automobiles
you won’t see anywhere, under one roof, in the world.
There will truly be something for everyone, and I hope the members
of the House will take some time out of their
schedule to enjoy the 99th
annual Vancouver auto show.
B.C. TECH SUMMIT
R. Glumac: Technology is all around us, and it’s a major driver of B.C.’s
economy. Next week the province is proud to once again host the B.C.
Tech Summit, western Canada’s largest annual innovation
convention.
It will be held from March 11 to 13 at the Vancouver Convention
Centre. The B.C. Tech Summit showcases B.C.’s vibrant tech industry. It
connects entrepreneurs, start-ups and tech leaders with accelerators,
investors, senior executives, government and media. All attendees will
have a great opportunity to explore the latest innovations driving
B.C.’s economy and the global economy.
This year’s summit has an impressive lineup, including world-class
speakers from global and local companies and organizations. This
includes presentations from the CEOs of all five of Canada’s digital
innovation superclusters, including B.C.’s digital innovation
superclusters; also, Dr. Alan Winter, B.C.’s innovation commissioner,
will be there to discuss precision health technology; and other leading
B.C. innovators.
[2:00 p.m.]
In total, there will be over 120 speakers exploring a range of
topics from clean tech to quantum computing.
The B.C. Tech Summit is a platform to network, educate and
inspire. As B.C.’s Parliamentary Secretary for Technology, I’m very
excited that our government is hosting this conference. We know that
there is a very bright future for the tech sector here in
B.C.
Come out next week, and you, too, can see what the future
holds.
STEVESTON KARATE CLUB TOURNAMENT
J. Yap: On February 23, the Steveston Karate Club hosted the 46th
international invitational tournament at the Steveston indoor tennis
court. It attracted over 440 athletes from Canada, the United States and
Japan, and more than 1,500 attendees. I personally had the pleasure of
handing out the John Yap MLA Cup to last year’s Junior Pan American
championship gold medallist, Stephanie Hillyer.
The history of the Steveston Karate Club dates back to 1973, when
Mayor Shozo Ujita of Wakayama, Richmond’s sister city in Japan, visited
Canada and the first and only martial arts building outside of Japan,
opened by the Steveston Community Society. Himself a grand master, Mayor
Ujita was surprised that there was no karate training offered, so he
sent one of his own students, Sensei Takeshi Uchiage, to begin
a club in Steveston.
Since its founding, this club has grown from teaching karate
lessons in a backyard to hosting a tournament which attracts skilled
athletes from all over the world. Each year this tournament serves as a
chance for the karate athletes to not only learn from each other and
show off their skills but also to make new friends and reconnect with
old ones. It also provides business opportunities for Steveston, as the
athletes explore the village, eat at our restaurants and check out the
historic sites and museums in our community.
I ask that this House please join me in congratulating the
Steveston Karate Club for another great tournament.
Oral Questions
SPECULATION AND VACANCY TAX
S. Bond: The phony speculation tax is targeting the family cabins of B.C.’s
seniors, many of whom are on fixed incomes. Frankly, it’s a broken
promise by this Premier. In fact, here is what the Premier said: “If you
pay tax in B.C., you are not speculating from outside B.C. A summer home
would not fall in with the out-of-province speculation tax.”
Well, imagine the surprise of 1.6 million British Columbians when
they received an NDP tax notice saying they had to prove they were not
speculators. The Premier promised British Columbians that they would not
be captured, when, in fact, two-thirds of the people paying the tax are
British Columbia residents. The Premier broke his promise.
To the Premier, what happened?
Hon. C. James: I think it’s pretty clear from the other side that they’re
continuing their view that there is no problem in the housing market.
It’s the kind of problem that they had for 16 years. They left our
province with unaffordable housing, a zero vacancy rate, and families
and seniors struggling to be able to live and work in the same
community. That’s because of the neglect on the other side when it came
to housing.
We saw that in full force with the Leader of the Opposition
talking about renting being a wacky time of life. Once again, you’d
think he would have learned something about the struggles that people
are facing.
We’re listening to British Columbians, we’re acting on our
30-point plan, and we are addressing the housing crisis.
Mr. Speaker: Prince George–Valemount on a supplemental.
[2:05 p.m.]
S. Bond: Well, what British Columbians have learned is that this is a
Premier that routinely makes promises and then breaks them. Here is what
this Premier said.
Interjections.
S. Bond: The members that are laughing might want to hear what their
Premier said to promise British Columbians. He said, on March 22 in
2018: “There was no intention at any time that I was aware of, and I
think the Finance Minister would agree with me, to penalize people who
have the good fortune of having a cottage.” So according to the Premier,
there was never any intention of penalizing British Columbians who had,
in his words, a cottage.
Well, the Premier broke that promise, and now his member for Port
Moody–Coquitlam is doubling down on targeting the cabins of seniors he
is supposed to represent. Mayors are stepping up to raise the legitimate
concerns of their residents, and what are they being met with? Threats
from the NDP. The Premier needs to show some leadership, to stand up. He
made a promise; he broke it.
Will he stand up today and at least apologize for this
unacceptable bullying?
Hon. C. James: The member knows full well — we’ve canvassed this often — that 99
percent of British Columbians do not pay the speculation tax.
British Columbians who own second homes, who are fortunate enough
to be able to own second homes — because many British Columbians, as we
know, don’t have a home at all, never mind a second or a third or a
fourth home — receive a $400,000 credit that goes towards not having to
pay on the first $400,000, because we’ve ensured that the exemptions are
there for families.
Again, I think it is so typical of what we see on the other side —
of ignoring this housing crisis. In fact, even the government’s previous
Finance Minister knew that there was a problem. This was Kevin Falcon,
who said — and people might remember him on the other side: “I realized
that after the B.C. Liberals’ second-to-last budget right away they
didn’t know they were in trouble. They had no significant investment in
the things that people were concerned about, like housing. They had a
‘don’t worry; be happy’ attitude. They totally missed it 100
percent.”
It’s one of those rare times I would say I agree with Kevin Falcon
on this issue.
Interjections.
Mr. Speaker: Members.
The member for Prince George–Valemount on a second
supplemental.
S. Bond: Well, the Finance Minister’s continued words about 99 percent are
cold comfort to the two-thirds…. Two-thirds of the people who will pay
this tax are British Columbians, despite the promise of the Premier
that’s sitting right to her left.
No matter how you look at it, this is an NDP cabin tax. The
Premier broke his word, and B.C. seniors are now paying the price.
Instead of owning up to that promise, the NDP…. What did they do? They
started using strong-arm tactics against locally elected mayors who
disagree with them. Mayor Young and Mayor Belenkie have been
crystal-clear. The NDP threatened them — not my words, their
words.
To the Premier, is he prepared to stand up today and admit that
he’s calling these mayors liars?
Hon. C. James: You know, the previous government left us with some of the most
unaffordable housing in the country, right here in British Columbia.
That impacts families, that impacts seniors, that impacts young people
wanting to get into the workforce, and it impacts our economy, because
if businesses aren’t able to recruit and retain employees, we won’t see
the kind of economic growth that we see.
That is true across Metro Vancouver, including Belcarra. Between
2016 and 2017 alone, we saw property values increase by over 40 percent
in Belcarra. That impacts the families living in Belcarra. That impacts
the workers living in Belcarra That impacts people, when houses are left
vacant, because the community is hollowed out. Belcarra, along with
other British Columbians, wants to make sure that neighbourhoods and
homes are there for living in, and that’s what we’re working
at.
[2:10 p.m.]
T. Redies: The Premier claimed a year ago that British Columbians wouldn’t
have to pay the phony speculation tax, but he broke that promise. He
then claimed the family cabins of British Columbians wouldn’t be taxed.
Again, he broke that promise. Mayors are speaking out because the
Premier’s tax is hurting seniors who aren’t speculators and who can’t
afford to pay the tax.
To the Premier, why have the Premier and this government resorted
to bullying local officials who are elected to speak up for their
communities?
Hon. C. James: I know the members will find every opportunity to completely
ignore the housing crisis and talk about anything except the challenges
British Columbians are facing. These are critical issues for the people
of this province. That’s why you see poll after poll that, in fact, the
speculation and vacancy tax is supported by British Columbians. They
expect their government to address affordable housing, and that’s
exactly what we’re going to do.
Mr. Speaker: The member for Surrey–White Rock on a supplemental.
T. Redies: This government seems to be very uncaring with respect to the
people who own these cabins. Gordon Wrightman has had a family cabin in
Crescent Beach for 70 years.
Interjections.
Mr. Speaker: Members. Members, the questioner should not have to shout over
non-stop noise.
T. Redies: Gordon Wrightman says: “It’s not insulated. It doesn’t have
breakers for electricity. It’s not rentable, but they’re not exempting
it. It’s a money grab.”
The Premier has been caught out breaking his word with this cabins
tax. How does the NDP respond to criticism? By threatening multiple
mayors.
Is the Premier resorting to bullying mayors because he’s so
embarrassed over these broken promises?
Hon. C. James: I discussed these topics with the mayor of Belcarra last Friday.
We’ve continued having conversations with the mayors. I will look
forward to meeting with all the mayors again as we get closer to the
summer and we have the information that has come forward. We are going
to continue to listen to the people of British Columbia, including the
mayors, including the communities. They will have a chance to put their
information forward.
But we are not going to stray from our focus on affordable housing
in this province. It is critical that we address affordable housing for
the families and the people who live in British Columbia and for the
strong economy that we want to continue into the future.
PANEL REPORT AND GOVERNMENT
POLICIES ON NATURAL GAS
FRACKING
S. Furstenau: Yesterday an
article in the Vancouver Sun stated that
B.C. doesn’t know what it needs to know about the environmental, seismic
and other risks of fracking. This revelation comes from a draft copy of
a 200-page technical report that was leaked to the Times
Colonist last week.
The independent panel shed light on some very troubling facts. It
detailed a lack of compliance by the industry around earthen dams,
regulations ignored and permits given retroactively. It highlighted the
lack of public trust in this industry. Basic information about surface
and groundwater, in both the quality and the quantity in the region, is
“sorely lacking.” We have no idea how much groundwater is being used and
how much private landowners are selling to the industry.
The conclusion of this panel was almost as troubling as its other
findings. It was created to assess risk, but it could not do so because
there is too little data to assess. The panel even emphasized this point
by saying: “They could not assess risks with any confidence.”
My question is to the Minister of Energy, Mines and Petroleum
Resources. Eighty-five percent of B.C.’s natural gas production now
comes from unconventional sources. Given the complete lack of data and
the troubling information raised in this report, should we not adopt the
precautionary principle and halt a further expansion of fracking in our
province?
[2:15 p.m.]
Hon. M. Mungall: Thank you very much to the member for the question. It gives me an
opportunity, first, to publicly thank our panellists — Diana Allen, Erik
Eberhardt and Amanda Bustin. They did a tremendous amount of work, with
the help of Nalaine Morin, who provided advice to the panel on
traditional Indigenous knowledge in the region.
They together organized 50 sessions and met with over 60 experts —
researchers, industry, First Nations, the regulator and
environmental organizations — on this issue. It is an important issue
not just for people in the north, who live with this practice every day,
but it’s important for all British Columbians. Of course, 58 percent of
British Columbians heat their homes with natural gas derived from
the north and, mostly, from this practice.
British Columbians are quite concerned, and that’s exactly why we
put together this scientific panel to start putting some analysis to
this practice. It’s very important in terms of the report and what
they’ve delivered, and it’s very technical. I think that with 97
recommendations and over 200 pages, we owe it to British Columbians to
make sure that we do our due diligence in analyzing that report so that
we can deliver good public policy for all of B.C.
Mr. Speaker: House Leader, Third Party, on a supplemental.
S. Furstenau: More of what we don’t know, I guess.
The expert panel did spend a year researching and consulting
experts on the impacts of hydraulic fracturing in our province.
Throughout the report, one thing was clear. The data is insufficient. We
simply don’t know enough to be making informed decisions.
But it did emphasize a few things that we do know. For example,
the number of reported seismic events has more than doubled every year
since 2016. This increase in seismic activity, triggered by fracking
operations, is happening in an area with two large hydroelectric dams,
plus the construction of Site C. As the report notes, these types of
ground motions could be “sufficient to misalign spillway gates.” So we
have an almost complete lack of information on the risks and
environmental damages that fracking is causing in our province, and we
are putting major hydroelectric infrastructure at risk by allowing it to
continue.
My question is for the Minister of Energy, Mines and Petroleum
Resources. The expert panel has made it clear that earthquakes from
fracking are a risk to hydroelectric projects. Site C is in an area
surrounded by fracking. How do we know that this $11 billion project is
not at risk?
Hon. M. Mungall: As I said to the member, this is a very technical report with a
substantive number of recommendations, all very technical in nature. We
owe it to all British Columbians, especially to the people who live in
the north, who live with this practice every day in their backyard, to
make sure that we’re delivering good public policy.
We have to let science prevail in this situation. That is exactly
why we’re taking this report very seriously, as we follow on previous
activities that we’ve taken to address some of the neglect from the
previous government, such as…. We created a new process to make sure
that oil and gas dams have the right permits, we have strengthened
compliance for those dams, and we brought in new legislation last spring
to address the orphan wells.
This panel is going to be able to allow us to further move forward
to protect our air, land and water for the benefit of all British
Columbians.
Mr. Speaker: Members, I’m a little bit concerned here.
We had an exceptional speech from the member for Skeena and
another exceptional two-minute statement from the member for
Esquimalt-Metchosin respecting how we treat women. All of the speakers
have been women, and I would say that the response to their speeches has
not been respectful.
Next question.
COMMUNITY BENEFITS AGREEMENT
AND
WORKERS
S. Cadieux: The Premier has given NDP friends and insiders monopoly control
over contracts on public projects worth billions of dollars. Industry
estimates that this will increase the cost of public projects to
taxpayers by an additional 20 to 30 percent.
[2:20 p.m.]
Workers are being bullied into joining one of the NDP’s 19
approved unions with no regard — no regard — for individual choice or
individual rights.
Why is the Premier bullying workers into joining unions they don’t
want to join?
Hon. C. Trevena: I’m very happy to talk about our government’s plan for community
benefits agreements, which is putting people at the heart of our…. When
we are doing construction, it’s putting B.C. at the heart of our
construction, ensuring that we are dealing with the skills
shortage.
The opposition, when they were in government, did ignore the
skills shortage. We are addressing this. We’re addressing this through
community benefits agreements, ensuring that apprenticeships will be
provided to Indigenous people, to women, to other underrepresented
groups, to those who will benefit. They’ll learn a skilled trade, and we
will get — the end result — better infrastructure, whether it’s bridges,
highways or transit in the Lower Mainland. We’re committed to community
benefits agreements, and we’re proud of them.
Mr. Speaker: The member for Surrey South on a supplemental.
S. Cadieux: It must be women’s day, because usually we ask the Minister of
Transportation a question, and the Premier gets up. Today I asked the
Premier a question, and he lets the Minister of
Transportation….
On March 19, 2016, the Premier insulted workers from
non-NDP-approved unions. He said: “You don’t build public projects by
going with the turkeys at CLAC. That’s not how I roll. That’s not how we
roll.” The bullying in that statement is wrong. It discriminates against
85 percent of B.C.’s construction workers, and it’s bad news for B.C.
taxpayers.
To the Premier: can you explain how this is anything but a
violation of 85 percent of workers’ rights?
Hon. C. Trevena: As I say, community benefits agreements are investing in the
people of British Columbia when we invest in our projects. It will
increase the participation of women, of Indigenous people. More
apprenticeships, more women — I mean, the member wanted to see more
women — who are going to have equal pay on these projects, which are
union projects.
Interjections.
Mr. Speaker: Minister.
Hon. C. Trevena: We’ve been very clear that any company can bid on these projects,
and any worker can work on the projects. And it is….
Interjections.
Hon. C. Trevena: They will be union worksites. I don’t know what upsets the
opposition about that. They will be union worksites where there will be
equal pay for equal work. That includes women who are going to get
good….
Interjections.
T. Wat: The Premier’s scheme picks favourites by handing work to a small
group of NDP-friendly unions. This is a cynical backroom deal that
discriminates against the 85 percent of workers who have chosen not to
join an NDP-approved union.
To the Premier, why is the Premier forcing all workers into
joining NDP-approved unions?
Hon. C. Trevena: I just want to remind the member that these are the same unions
that we used in the Allied Hydro projects for the dams. In
projects….
Interjections.
[2:25 p.m.]
Hon. C. Trevena: Well, the B.C. Liberals have the audacity to even talk about
construction projects with their record in the 16 years they were
government. When the Leader of the Opposition….
Interjections.
Hon. C. Trevena: They may want to listen to this. Their Leader of the Opposition….
They are opposition now. When he was a public servant, we saw the
Vancouver Convention Centre go $335 million over budget.
I have to say that I think that community benefit agreements are
going to provide a strong workforce with equal pay for equal work for
women, for Indigenous people and train apprentices in a way that has
been sorely lacking in this province for the last 16 years.
Mr. Speaker: The member for Richmond North Centre on a supplemental.
T. Wat: So many local companies can provide plenty of community benefits
without the NDP scheme to funnel work to their friends. Obviously, the
goal here is: do we want NDP friends and insiders?
To the Premier once again, and I hope the Premier will have the
guts to stand up and answer the question. Why would all workers be
required to join only NDP-selected unions in order to work on government
projects?
Hon. C. Trevena: I’ve got to say that we’ve had this discussion many times in this
House. This side of the House believes in investing in the people of
British Columbia. This side of the House recognizes that there is going
to be a massive skills shortage. We’ve got a lot of infrastructure being
built in this province. We’ve got skills shortages of about 60,000
people. We need to address this, and we need to be addressing this
through the people who live and work in British Columbia.
Community benefits agreements will ensure that local people get
the work, that women and Indigenous people will get training. Yes, yes,
I know it upsets the opposition that any company can apply for these
jobs and that any worker can work on them. And like whether you’re
working in Safeway or in the liquor store, it’s a union worksite, and
yes, you’ll be a member of a union when you’re working on one of these
projects.
FOREST INDUSTRY TENURES
C. Oakes: Communities are under attack over softwood, and this Premier has
neglected hard-working men and women in the forest sector. Now he is
creating uncertainty over tenures by announcing that the same
restrictions imposed on fish farms will be applied to forestry. We know
how that turned out, with intimidation letters resulting in
eviction.
Will the Premier commit today that forest permit holders will not
lose their tenures?
Hon. D. Donaldson: Well, the member started off the question with a premise around
the softwood lumber agreement. I’d like to just discuss that for a
moment.
We’ve devoted significant time, energy and resources to fighting
the unfounded and unfair application of tariffs by the U.S. The
importance of the forest sector for jobs in all areas of the province,
rural areas included, is not lost on this government. However, we need a
little trip down memory lane here.
The old government oversaw the loss of 30,000 forestry jobs. Under
the old government, 100 mills closed, leaving behind rural communities
that depended on good forestry jobs. Under the old government, which
knew that the softwood lumber agreement was expiring, they did nothing —
nothing — for the workers in a year and a half that they had to make
moves on the softwood lumber agreement. Not one trip to Washington in
those 18 months.
The Premier took a trip to Washington to fight for our forestry
workers and our rural communities.
[2:30 p.m.]
GOVERNMENT HANDLING OF ISSUES
M. Polak: For all the protestations on the other side, it actually would
have been easy for the Premier or the Forests Minister to stand up and
say: “Yeah. Actually, I’m committing to make sure these people aren’t
going to lose their licences or their tenures.” But of course, they
can’t do that. They can’t make that commitment.
We’ve seen broken promise after broken promise. We’ve seen a
speculation tax that doesn’t tax speculators. We’ve seen community
benefits agreements — don’t benefit communities. They benefit certain
specific NDP unions. And we’ve seen an employer health tax that has
nothing to do with health.
Then as I listen to the answers yesterday and today, I’m also
forced to conclude that the Premier honestly believes that taxing the
family cabins of seniors in Belcarra is somehow going to increase the
amount of affordable housing in British Columbia. The answers that we’re
receiving to all of these questions are patently ridiculous. They are in
no way connected to the truth.
The real question then becomes: with the mess of the speculation
tax, the mess of the EHT doubling down on employers and double-dipping
and the mess that has become the forest industry file on softwood, when
is the Premier going to stand up and be accountable and clean up the
mess that he has made?
Interjections.
Mr. Speaker: Members.
Hon. J. Horgan: I never know what to make of the opposition. Two days ago it was,
“Why are you answering all of the questions?” and today it’s: “Why
aren’t you standing up and answering the questions?”
I’m delighted to respond to the Opposition House Leader and her
assertion that the strongest economy in the country is what we are proud
to be doing on this side of the House. Hon, Speaker, 61,000 new jobs
over the past 12 months, and that’s just the beginning, because we’re
going to continue to do more with community benefits agreements to put
people back in the centre of our economy — not like the other
guys.
I heard the member talk about the employers health tax. I guess
they want to bring back medical services premiums for people as
well.
I appreciate that the Leader of the Opposition thinks that renting
is just a phase you get through. I appreciate that the Leader of the
Opposition says that we should put more interest on loans for students.
Now I understand that the Leader of the Opposition and his team want to
bring back medical services premiums for the hard-suffering people of
British Columbia.
I know that many in this House would want to hear my answers, but
clearly, the person who asked the question does not. I’ll suffice by
saying to this: the fastest-growing economy in the country, people who
are behind their government because people are the centre of this
government.
[End of question period.]
Petitions
S. Furstenau: I rise to submit a petition today. It has 16,000 names on it calling
to ban fracking in British Columbia.
M. Elmore: I seek leave to make an introduction.
Leave granted.
Introductions by Members
M. Elmore: I am very pleased to welcome students from Sir Charles Tupper
Secondary who are here today, grade 11 classes with social studies that are
led by their department head, Auton Lum; and teachers as well — Bonnie
Burnell; also Taylor Micacchi; a student teacher from UBC, Shanna Albrecht;
resource teacher Alana Rentz; and Shauna Mathieson, their resource support
teacher.
[2:35 p.m.]
I’m very proud that the Sir Charles Tupper Tigers are ranked No. 1 in
the senior boys in the provincial championships. We wish them all best.
Also, the Sir Charles Tupper Tigers, the girls’ ice hockey team, in their
first year, have just won the Vancouver city finals. They’re the Vancouver
city champions, their first year.
Please make them welcome.
Tabling Documents
Mr. Speaker: I have the honour to present Investigation Report 19-01 and
Investigation Report 19-02 from the Office of the Registrar of
Lobbyists of British Columbia.
Motions Without Notice
MEMBERSHIP CHANGES TO
FINANCE
COMMITTEE
Hon. M. Farnworth: By leave, I move:
[That Rich Coleman , MLA and Doug Clovechok , MLA be
appointed as Members of the Select Standing Committee on Finance and
Government Services, replacing Tracy Redies , MLA and Peter
Milobar , MLA.]
Leave granted.
Motion approved.
Orders of the Day
Hon. M. Farnworth: In this chamber, I call second reading, Bill 6, Supply Act (Supplementary
Estimates).
In
Section A, the Douglas Fir Room, I call continued estimates debate on
the Ministry of Children and Family Development. Upon their completion, we’ll
call the estimates for the Ministry of Advanced Education, Skills and
Training.
[2:40 p.m.]
[J. Isaacs in the chair.]
Second Reading of Bills
BILL 6 — SUPPLY ACT, 2018–2019
(SUPPLEMENTARY
ESTIMATES)
Hon. C. James: Pursuant to the usual practice of this House, we will proceed with
the remaining readings that are left of Bill 6.
With that, I move that Bill 6 be read a second time
now.
Motion approved.
Hon. C. James: I move that Bill 6 be referred to a Committee of the Whole House
for consideration forthwith.
Bill 6, Supply Act, 2018–2019 (Supplementary Estimates), read a
second time and ordered to proceed to a Committee of the Whole House for
consideration forthwith.
Committee of the Whole House
BILL 6 — SUPPLY ACT, 2018–2019
(SUPPLEMENTARY
ESTIMATES)
The House in Committee of the Whole (Section B); J. Isaacs in
the chair.
The committee met at 2:44 p.m.
section 1.
Hon. C. James: I think we can move through the sections. This is a pretty routine
bill. I think the other side, as well….
[2:45 p.m.]
If the Chair wishes to move through the sections, I think we’re
ready for that.
Sections 1 and 2 approved.
Preamble approved.
Title approved.
Schedule approved.
Hon. C. James: I move that the committee rise and report Bill 6 complete without
amendment.
Motion approved.
The committee rose at 2:46 p.m.
The House resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
BILL 6 — SUPPLY ACT, 2018–2019
(SUPPLEMENTARY
ESTIMATES)
Bill 6, Supply Act, 2018–2019 (Supplementary Estimates), reported
complete without amendment, read a third time and passed.
Second Reading of Bills
BILL 12 — SUPPLY ACT (N o . 1),
Hon. C. James: I move that Bill 12, Supply Act (No. 1), 2019, be read a second
time now.
Existing voted appropriations will expire on March 31, 2019. Bill
12 provides interim supply for ministry operations and other
appropriations for approximately the first three months of the 2019-20
fiscal year while the House completes debate of appropriations presented
in the 2019-2020 estimates. Interim supply for ministry operations and
other appropriations is required to ensure continuity and continuation
of government services until the final supply bill comes into
force.
Bill 12 also provides one-third of combined voted amounts in
schedules C and D of the 2019-2020 estimates for disbursements related
to capital expenditures, loans, investments and other financing
requirements. The one-third authorization provided for in relation to
these disbursements is higher than that authorized in relation to
ministry operations as disbursements that are in schedules C and D are
not evenly distributed throughout the year. Therefore, the higher level
of interim supply is required to accommodate the payments that will be
made under these schedules.
[2:50 p.m.]
Bill 12 also authorizes the full amount of the disbursements
referred to in
schedule E of the 2019-2020 estimates.
Schedule E of the
2019-2020 estimates outlines the revenue collected on behalf of and
transferred to specific programs or entities. There’s no impact on the
operating results, borrowing or debt resulting from the collection and
transfer of this revenue.
These interim supply appropriations are based on the
accountabilities and allocations outlined in the 2019-2020 estimates.
The final supply bill for the 2019-2020 fiscal year will incorporate
these amounts to ensure that it reflects the sum of all voted
appropriations to be given to the government in that fiscal
year.
[J. Isaacs in the chair.]
T. Redies: I’m pleased to make a few comments on behalf of the opposition
with respect to Bill 12. As this is second reading in a supply bill
directed at keeping government functioning, I’ll be making only a few
comments, and I will be the only speaker on our side.
As the minister just outlined, Bill 12 allows us to continue to
fund government while we go through the estimates process. Estimates, we
know, are a very important aspect of government, as they allow members
to query ministers about their budgets and policy actions. So Bill 12
essentially allows us to make sure hard-working public servants continue
to get paid as we go through the estimates process.
This estimates period is likely to be long and detailed. We on
this side of the House remain very concerned with respect to the
direction of this government, its voracious appetite for spending and
its lack of significant measures to improve the competitiveness of the
province and, importantly, the businesses within it.
Further, 2019 is the year when this government’s myriad new tax
measures, mostly aimed at businesses, come into effect. The dreaded
employers health tax, which will generate almost $2 billion a year
annually from businesses, is coming into effect this year. Businesses
are, as we know, getting doubly clobbered in 2019 because they’re still
required to pay MSP premiums on top of the EHT. We’re very concerned
about the impact of this tax and other taxes on investment, job creation
and wages in the province and the subsequent ripple effect through the
entire economy.
We’re also concerned that the government continues to put the
pedal to the metal on spending at a time when economic storm clouds are
on the horizon. In fact, this government has astoundingly blown through
$2 billion in extra spending in this last year alone when compared to
its original budget for fiscal 2018-19 that it tabled in February 2018.
So $2 billion. Think about that. This government blew through two
billion extra dollars of taxpayers’ money in one year alone.
It’s very concerning that the government is continuing to spend at
such a pace when it’s clear that the global economy is slowing and the
Canadian economy appears stalled, based on the fourth quarter of 2018
results, whether it’s housing starts, consumer spending or exports. The
Bank of Canada noted this morning that it’s holding its key interest
rates steady and that the downturn in the fourth quarter was “sharper
and more broadly based.”
While the B.C. economy has been robust thanks to a lot of
initiatives started under the previous B.C. Liberal government, we’re
seeing slowing of business investment, worsening business confidence,
plummeting house sales and housing starts and, in the last quarter of
2018, a net outflow of British Columbians to other provinces. It would
seem that the economic party that this government has been dining on is
approaching midnight.
We’re going to have a lot to query the government on in estimates
in the coming weeks. As such, while we’ll have some questions in the
committee stage on this bill, we’ll be supporting it to allow the
government to continue to function in the meantime.
With that, I will end my comments. Again, thank you for the
opportunity to make those remarks.
Hon. C. James: Seeing no further speakers, to close off debate on second
reading.
As the member has said, estimates will provide the opportunity for
individual ministers to be able to talk about their budgets and talk
about the direction being taken by government. I think it’s important to
recognize how critical that is for the accountability of democracy and
the accountability to the public. I certainly look forward to the
debate, and I look forward to agreeing to disagree with the member
across the way and their portraying of the budget and the direction
being taken by this government.
[2:55 p.m.]
The member talks about dollars being spent. I think that really
shows the difference between the other side and ourselves. When we
invest in people, those are resources that are being spent to, in fact,
keep the economy growing. B.C. is expected once again to lead the
country when it comes to economic growth, with prudency built into the
budget to recognize that if there are shifts, that will be critical —
over $2 billion of prudency built in.
The member mentioned housing starts. I think it’s important to
note that in fact, housing starts were lower than we have predicted in
our next two budgets in the previous government’s last two budgets. So
they, in fact, had presumed less housing starts than we have in our
budget. If the member likes to say that’s doom and gloom, it was the
previous government that, in fact, was looking at lower housing starts
than we were.
I look forward to that debate.
With that, I move second reading of Bill 12, Supply Act (No. 1),
Motion approved.
Hon. C. James: I move that Bill 12 be referred to a Committee of the Whole House
for consideration at the next sitting of the House after
today.
Bill 12, Supply Act (No. 1), 2019, read a second time and referred to
a Committee of the Whole House for consideration at the next sitting of the
House after today.
Hon. C. James: I will call second reading of Bill 5, Budget Measures
Implementation Act.
BILL 5 — BUDGET MEASURES
IMPLEMENTATION ACT,
Hon. C. James: It’s Finance early afternoon, I think.
I’m pleased to start second reading on the Budget Measures
Implementation Act, Bill 5. This bill works to implement the critical
aspects of Budget 2019. It will amend 12 statutes.
The most significant amendment creates the new B.C. child
opportunity benefit so that all children have the opportunity to meet
their full potential. This new benefit is going to provide hundreds of
millions of dollars each and every year to families with children. When
it’s in place October 1, 2020…. Just to take a moment to mention that
the reason that this doesn’t take effect until 2020 is the work that has
to happen with the CRA. With the Canadian revenue taxation and our
taxation, it takes a year to be able look at implementation of the
changes to the tax act.
The tax act is amended in this bill to replace the early childhood
tax benefit with the new B.C. child opportunity benefit. The previous
benefit, the early childhood tax benefit, was only available to children
up to the age of six,
whereas the difference is the new benefit will be
available for children up to age 18. That’s going to mean that many more
working families, middle-class families and families living in poverty
are going to receive significantly more support.
Just as an example, families with one child are going to receive
up to $1,600. With two children, they will receive up to $2,600. Again,
this is per year. Those with three children will receive up to $3,400.
Again, anyone who has raised a child knows the significant impact that
that’s going to have in a positive way to be able to support children in
having the opportunities that every child deserves to have.
Once the benefit is in place, a family with one child could
receive as much as $28,800 from the time their child is born until they
turn 18. With two children, they may receive up to $48,000, and with
three children, for example, they could receive $64,400 from the child’s
birth till the child is 18. This will put an additional $400 million
into the pockets of B.C. families so that every child has the
opportunity to reach their full potential. Transformational is the word
I would use.
This bill also amends the Income Tax Act to make the mining
flow-through share tax credit and the mining exploration tax credit
permanent, recommendations that were put forward by the Mining Jobs Task
Force. For years, governments have extended the mining flow-through
share tax credit for one year at a time, which created uncertainty for
the mining industry and for its investors. We certainly recognize, as a
government, the critical importance of B.C.’s mining industry to the
provincial economy, so making these tax credits permanent eliminates
this kind of uncertainty.
The bill also amends the Income Tax Act to extend the farmers food
donation tax credit for one more year, as, again, we look at the
strength of each of those credits. That will take it to the end of 2020.
This extension reaffirms our government’s commitment to support B.C.
agriculture, while looking at this credit to see if it really does what
it’s meant to do, which is provide food to food banks that comes from
farmers, and if this is the strongest way to look at it or whether there
are other opportunities as well.
[3:00 p.m.]
The training tax credits for apprenticeship and employers are also
extended for one year. These credits help support on-the-job training
for tradespeople, while allowing the government time, again, to review
these credits.
We’re also extending the shipbuilding and the ship repair industry
tax credit for three years. This tax credit supports employers in this
important industry, who also provide apprentices with on-the-job
training.
The bill also makes some minor changes to the Income Tax Act to
better align B.C.’s personal income taxes with federal taxes. As I
mentioned earlier, we do a coordination, and when taxes change at the
federal level, you will often see pieces come forward in the budget
implementation bill to coordinate the taxes. This time around, that
includes expanding B.C.’s pension tax credit to allow certain veterans
benefits to qualify towards the credit — a plus, again, for the
coordination.
Bill 5 also enhances the small business venture capital tax credit
through amendments to the Income Tax Act and to the Small Business
Venture Capital Act. This tax credit will provide an incentive for
investors to put their money and expertise to work in new businesses by
providing investors with a tax credit worth up to 30 percent of their
investment. However, the funding assigned for certain segments of this
program was not being used fully, so the program hadn’t been updated in
a decade.
We worked with the business community, as government, to review
the program and look at where we could make improvements, in partnership
with business. As a result, with these changes, individual investors
will now be able to receive tax credits of up to $120,000 per year.
Previously, the limit was $60,000. That hadn’t been adjusted for
inflation. Obviously, there have been changes when it comes to
investment dollars.
Similarly, small businesses will be permitted to raise up to $10
million through the tax credit program, up from $5 million — again,
recognizing that there hadn’t been changes in these programs.
The small business venture capital tax credit is also expanded to
allow for investments to be housed within a tax-free savings account.
We, for a long period of time, had the investments being able to be
housed in an RRSP, but it wasn’t amended because there wasn’t a tax-free
savings account at the time. This makes the change to include tax-free
savings accounts after they were introduced in 2009.
In addition, the tax credit is being expanded to include
convertible equity investments, in addition to share purchases.
Convertible equity is often used to invest in businesses at the very
early stage where they aren’t clear yet on what the company’s valuation
is. Businesses are generally expected to remain in the program for five
years. That’s the general expectation of the tax program.
We also recognize that there are circumstances that require
businesses to exit the tax credit program early. So this change that
comes forward in this bill will provide that businesses that leave the
tax credit program after two years will be eligible for a reduction in
the amount they’re required to reimburse the government, instead of
having to wait three years for this reduction — again, recognizing
success, in fact, in businesses.
Finally, technical amendments are also included in this bill.
There are updates in a reference to a regional district. There are
updates to clarify requirements to file tax credit certificates with an
income tax return.
Then Bill 5 also amends the Provincial Sales Tax Act to streamline
tax collection, reporting and remittance requirements for businesses
that make sales or conduct leasing through an agent. I know we’ll get
into this when we get into committee stage, but when an agent is used to
make a sale or a lease or when a billing agent is used to collect
payments, the principal and the agent will be able to jointly designate
a single party to be responsible for the tax collection, for the
reporting and for the remittance obligation. This partnership isn’t
recognized. These changes will recognize that.
It also confirms that an auctioneer who acts as an agent in making
auction sales on behalf of the principal is responsible for these same
obligations, unless the parties jointly elect to assign them to another
principal. We’ve heard from businesses that they want these types of
legal arrangements to have certainty around the PST obligations — who’s
responsible for ensuring the PST obligations. So these measures are
going to provide that certainty and give the parties involved in very
complex business arrangements a way to simplify how the PST works for
them.
The bill also amends the Motor Fuel Tax Act and the South Coast
British Columbia Transportation Authority Act. The changes will enable
TransLink, in partnership with the Mayors Council, to levy an additional
motor fuel tax on clear gasoline and clear diesel of up to 1.5 cents per
litre. This responds, as members will know, to the request for these
powers from TransLink and the Mayors Council on their regional
transportation plan.
[3:05 p.m.]
It allows the region to raise the revenue it needs to finance its
share of funding for phase 2 of TransLink’s ten-year vision of the
transportation network improvements. All of this additional revenue
raised will go directly to TransLink. Funds raised by an increase in
TransLink dedicated fuel tax will provide support to improve transit in
Metro Vancouver, in the mayors plan, such as the Broadway SkyTrain
extension, the Surrey-Newton-Guilford LRT and the new SkyTrain
cars.
Many of these changes have been talked about in previous
announcements and are now included in this bill.
We also have a number of technical changes to a number of
different acts. They ensure that our tax statutes are up to date and
operate as intended.
For example, the Carbon Tax Act in this legislation is amended to
authorize a penalty if an unauthorized person sells natural
gas.
The Income Tax Act, along with the Property Transfer Tax Act and
the Taxation (Rural Area) Act, are amended to clarify and update
information-sharing provisions — again, an important technical piece in
the bill, for clarity.
The Financial Administration Act is amended to permit a remission
of a forfeiture, a fine or a penalty that has already been paid. Again,
this is consistent with how remissions may be provided for taxes,
royalties, fees and other sums to create that consistency.
The Speculation and Vacancy Tax Act is amended to make three
technical changes. First, there’s a minor typographical error in the
act, which is corrected. Second, we’re ensuring that the exemption for
properties that are uninhabitable because of a natural disaster or other
hazardous condition operates as intended. Again, a clarification to
ensure it operates as intended. And third, to clarify the due date for
taxes for certain types of reassessments.
The Motor Fuel Tax Act is also amended to clarify refunds of
security related to relabelled fuel, allowances for tax collectors and
appeal rates.
Finally, the Provincial Sales Tax Act is amended to provide
several clarifications, including the tax treatment of vehicles brought
into B.C. that are going to be immediately licensed as
multi-jurisdictional vehicles; refunds for motor vehicles that are
returned to their manufacturers; suspensions and cancellations of
collector registrations; conditions for small seller eligibility; the
obligation to pay tax when an exemption is not documented; the timing of
tax payments, for promotional distributors; and procedures regarding
unspent municipal and regional district tax revenues held by dissolving
societies.
S. Bond: Obviously, I’d like to recognize how important it is to be able to
make a few comments about Bill 5 in the Legislature.
As the minister herself has pointed out, this is an incredibly
technical bill. She has outlined a long list of acts and changes and
amendments. I think it’s important for British Columbians to recognize
that this is really the technical bill that breathes life into the
budget that the government has tabled.
As the minister pointed out, and read through the long list of
amendments, there are multiple acts, including the Income Tax Act, the
Motor Fuel Tax Act, the Community Charter. There are bills that are
being amended. But this is really the practical application that is
necessary to make the adjustments that are required to implement the
2019 budget.
Now, as you can imagine, this is a very necessary piece of
legislation, and we will make a few comments at this stage and second
reading. But the minister knows and is well advised to the fact that we
don’t support many of the initiatives that are included in the
budget.
We are going to ask questions about the technical implementation
pieces, but frankly, as the minister herself pointed out, we are going
to agree to disagree. That is a very accurate statement. And not with
every item in the budget. There are some that we’ve stood up — my
colleagues have stood in this place — and actually given the government
credit for. It’s important. Budgets do have items that have merit from
everyone’s perspective. But we are very concerned about the
sustainability, the nature of this budget — what’s in it and what isn’t
in it.
[3:10 p.m.]
We’re going to talk about some of the technical pieces, but make
no mistake about it, my co-critic and I have made a number of references
to our concerns throughout the discussion about the budget more
generally. We are, obviously, going to ask questions when we get to
committee stage. But I think it’s fair to say that we have both
indicated, as have my colleagues on this side of the House, that we’re
extremely concerned about the sustainability of this minister’s budget,
particularly in the context of growing economic uncertainty.
In fact, since we last had a chance and an opportunity to discuss
the budget, we’ve actually had further indications of a troubled
economy, exactly the issue that we have been raising relentlessly with
this minister.
Today the governor of the Bank of Canada issued the following
statement: “Recent data suggests that the slowdown in the global economy
has been more pronounced and widespread than the bank had forecast in
its January monetary policy report. While the sources of moderation
appear to be multiple, trade tensions and uncertainty are weighing
heavily on confidence and economic activity.”
The report goes on to say: “The bank had forecast weak exports and
investment in the energy sector and a decline in household spending in
oil-producing provinces. However, the slowdown in the fourth quarter was
sharper and more broadly based.” The bank had forecast weak exports and
investments in the energy sector. However, the fourth quarter was much
sharper and more broadly based.
The latest fourth quarter results from Statistics Canada indicate
that the country’s economy quite literally ground to a halt, with a
growth rate of just 0.1 percent. This represents the worst quarterly
performance in 2½ years. The slowdown is already affecting the retail
sector.
Only five days ago, clothing retailer The Gap announced it will be
closing 230 retail outlets in North America. At the present time, we’re
not yet clear how many outlets will be closed in Canada. This retailer
joins Payless Shoes. It was announced on February 19, just one week
after the provincial budget was delivered, that it will be closing all
of its 248 outlets in Canada. On February 22, Hudson’s Bay is shuttering
all 37 Home Outfitters outlets in Canada.
It’s not just Canadian economic growth that has underperformed.
B.C. retail sales were also revised down in 2018. This appears to be
having an effect on PST earnings, bringing in $110 million less in
revenue.
On a provincial level, residential housing sales have also
plummeted 24 percent in 2018. In greater Vancouver, it’s even worse. The
latest data for housing sales show they are down 42.5 percent in greater
Vancouver, which is below the ten-year average and the lowest level
since 2008. We are, therefore, compelled to question whether there will
be another miss on these projections going forward.
This begs a fundamental question: what is the consequential risk,
and how will weakening economic indicators pose challenges to this
budget? Storm clouds, as I said in my budget remarks, are gathering on
the economic horizon. Yet what do we see? This bill is about to
implement a budget where this minister and government continue to
spend.
The minister characterizes that as investing in people. There is a
significant issue with that statement. Economic trends are
deteriorating. What we do not see in this budget is any attempt to
actually grow the economy in British Columbia. This is about increasing
debt, making sure that we are spending everything we can spend and, in
fact, expensive promises.
The Finance Minister referred to one of the expensive promises,
which is contained, and the implementation is outlined, in this Budget
Measures Act. But perhaps, thankfully, it isn’t being implemented until
2020. The minister suggests it’s because we had to do the work with the
CRA. If this was such an important promise by this government, why on
earth didn’t the work start earlier?
[3:15 p.m.]
Now British Columbians are being given the shiny bauble that says
we’re going to have a brand-new billions-of-dollars program. We are not
even sure British Columbia will be in a position to pay for it, yet we
have it all outlined in the Budget Measures Implementation
Act.
The economy is deteriorating. All of the experts around the world
are suggesting it’s time to be prudent and to be cautious. And what do
we see in British Columbia? Well, we continue to see pedal to the metal.
Let’s just keep spending. Let’s grow the debt, and let’s make expensive
promises.
According to Statistics Canada, the economy has been doing
relatively well. In fact, the minister today — both in question period
and here in her opening remarks — commented on the strong economy that
British Columbia has.
Well, I would like to clarify the record. The strong economy that
British Columbia has today was not created in the last 18 months by this
government. It took years and years of a relentless focus on growing the
economy, creating new jobs in British Columbia. And when this transition
took place, when our government moved to the opposition benches, this
government inherited the number one performing economy in the country —
the number one performing economy.
So to stand in this House and suggest that somehow this government
is responsible for that is simply not accurate. Anyone who takes even
five minutes to think about that knows that you can’t take an economy
that, the last time this government was in power, was the worst in the
country and move it to the first in the country in 18 months. That
simply is not possible.
We are very concerned about today’s announcement by the Bank of
Canada. In fact, the Bank of Canada confirms the concerns we have been
expressing. We noted that B.C. has performed well in the past, but we
are not an island.
Let’s look at competitiveness. Let’s look at south of the border.
Federal tax cuts are now coming into effect and making British Columbia
less competitive. What is the number one thing that business leaders in
British Columbia are talking about today? The loss of competitiveness.
It’s essential that we remain competitive.
It’s not just from our neighbours to the south. We’ve already
heard that if there is a change of government in Alberta when the
provincial election is held next May, we can expect the corporate tax
rate to be cut as much as 4 percent lower than British Columbia’s. So
what does that mean? We’re an island all right. We’re an island
surrounded by other jurisdictions who recognize the importance of being
competitive. This budget does absolutely nothing. In fact, it actually
undermines the competitiveness of British Columbia. Yet what do we see?
Spending, more debt and expensive promises.
It should also be noted that our competitors — a pretty critical
word when we’re talking about the economy — to the south, to the east
and to the north are not subject to the minister’s newly implemented
employer health tax. So not only are we not considering the economic
circumstances that are happening both in Canada and around the world;
we’re also layering on additional taxes to the very people that create
jobs and grow the economy — small businesses in this province. This puts
British Columbia at a competitive disadvantage.
The minister knows this, and I’m certain that people on that side
of the House know this. In the event of an economic downturn, our
province could experience an outflow of talent and capital. And where
will they go? To more competitive jurisdictions. We’ve also pointed out
that Budget 2019 lacks any new incentives to attract investment, and
there’s no jobs plan either.
As the member for Surrey–White Rock and I have both observed, the
increase of program spending by more than 26 percent…. So here we have a
minister who wants to stand up and take credit for the number one
economy in Canada, which, by the way, she inherited 18 months ago. What
she should probably stand up and take credit for is an increase in
program spending by 26 percent in just 18 months.
From our perspective, that puts British Columbia in jeopardy. The
prospect of a structural deficit is quite real if economic growth
indicators fail to match the rapid escalation of program spending. If
you don’t have the growth, and you keep spending and spending and
spending, ultimately, British Columbians will face exactly what they
faced the last time this government was in power. And that was a
structural deficit that took us literally years to claw our way back out
of. We are headed in exactly the same direction.
[3:20 p.m.]
The minister will have also noted our comments with regard to the
rollout of the EHT and the spec tax. In our view, and the best way that
we can think of to describe it, it is tax policy on the fly. And what
has it caused? Uncertainty.
One of the most troubling aspects of the speculation tax…. I note
that the minister noted that there are several adjustments to the
speculation tax regarding homes that are uninhabitable because of
natural disasters. Well, this whole tax is a natural
disaster.
We should be clear. This minister announced it, and from day one,
we have been trying to fix it, to tweak it. Communities were in; they’re
out. Belcarra is in; it wants to be out. My goodness. And when you look
at who’s now out, you wonder how they were actually taken out of the
tax. It is tax policy on the fly, and it’s been a disaster.
There’s another more troubling aspect. The members on the other
side of the House may want to diminish this, but people are concerned
about the privacy of their personal information. British Columbians want
to make sure that there is integrity in their personal information and
to make sure that they are protected against identity theft.
People have a right to know what information the government is
gathering and, more importantly, how it’s going to be used and who is
going to have access to it. Our offices, including this building’s
office, have been flooded with calls and emails from people — seniors in
particular — who are saying: “I don’t want to give my social insurance
number.”
I would defy any member on the opposite benches to stand up and
say they haven’t heard from some of their constituents. In fact, we know
they have, because after they get no answers in those constituency
offices, guess where they call. They call our offices. Do you know what
they ask for? They ask for help. They ask for help because they get on
the help line….
I just got a new case today where a couple came back to us and
said: “We called the help line, and here’s what they told us, ‘We can’t
help you.’” That doesn’t exactly define the purpose of having a help
line.
This minister and this government know full well that the
speculation tax is a mess and that there are people in this province
deeply concerned about providing their social insurance number. The
people on the help line continue to insist: “You have to give us your
social insurance number.” Well, I can tell you, there’s going to be a
whole lot of the 1.6 million British Columbians who are going to be in
for a rude awakening when the tax bill arrives because they wanted to
protect their personal information.
By the way, for the record, and on behalf of the official
opposition, they are not speculators. They should never have been
captured. The Premier promised that. The Minister of Finance even stood
up and said: “No, I can’t imagine cottages or cabins being captured.”
And what’s happened? Exactly that.
Madam Speaker, you can understand why the opposition has concerns
about looking at a bill that implements policies that we don’t agree
with. I heartily endorse the Minister of Finance’s comments that we’re
going to agree to disagree. We are going to agree to disagree. We don’t
believe that a 26 percent spending rate in 18 months is sustainable. We
absolutely want to urge this minister to go back and take a look at her
budget. It has completely ignored the world that is surrounding British
Columbia.
When we think about our lack of competitiveness…. The global
economy is deteriorating, and what are we doing in British Columbia? If
this minister wants to talk about taking care of people, then it’s time
for her to go back to the drawing board, get rid of the ill-planned
speculation tax that actually taxes the wrong people and have a good
look in the mirror.
The world around us is changing, and what are we doing? We are
just moving straight ahead. Batten down the hatches, British
Columbia.
British Columbians deserve better than to be required to prove
they are not speculators. They should not have to provide personal
information with a lack of clarity and not have any assurance on whether
or not it will be safe.
Let’s look at some of the specific measures in Bill 5. The bill
includes the formula and technical changes that would be needed to
create the B.C. child opportunity benefit.
During committee, my colleague and I…. She is incredibly skilled,
and I know she’s already analyzing the formulas and all of the details.
I have every confidence that there will be some very tough questions
about this benefit in particular. But during committee, we want a better
understanding of the benefits thresholds. Who exactly is going to
receive the benefit, and how will families access the
program?
[3:25 p.m.]
Once again, as I said earlier, we see an expensive promise with a
very long timeline for implementation. We’re still waiting to see
$10-a-day daycare in British Columbia. We know the price tag attached to
that. And where did the renters’ grant go? That’s completely
missing.
There are huge, expensive promises, and they’re not captured in
the 26 percent increase in spending over 18 months. There are lots of
unanswered questions about what is undoubtedly the signature piece of
the 2019 budget. Does that sound familiar — the signature piece? I seem
to remember all of the government MLAs out on the campaign trail
promising $10-a-day daycare. “It’s going to happen. We’re going to make
it happen.”
Well, today in British Columbia there is no $10-a-day daycare
program. In fact, you’re a winner of a lottery if you get to one of the
pilot daycares. Expensive promise — no delivery.
As we have said numerous times, the devil is in the details. We
see extensions of some tax credits, some for one year and some for
three. We will want to know why the differentiation and on what basis
are there different extension periods and how are they determined.
Again, there are multiple sections.
This is important to British Columbians. And the irony of this? I
remember it clearly that when those members were on this side of the
House, every single time that we’d talk about regulation-making power or
we’d talk about collecting information, we would hear about it. Oh,
would we hear about it. There would be ongoing criticism about the
collection of personal data. How is it going to be captured? Who’s going
to use it?
What do we see in every single piece of legislation, including
this one, that comes before the House? Guess what. They’re collecting
more information. They’re sharing it from one agency to the next. That’s
exactly what this implementation bill talks about. Guess what. We’re
collecting more use and disclosure of personal information. It’s
interesting. Apparently, that was then, and this is now. I’ll tell you:
they would stand in this House and rail, especially about
regulation-making power, because then everything was going to be decided
behind closed doors.
I don’t think I’ve seen a bill yet that’s come through since this
government has been in power that doesn’t have regulation-making power.
In fact, half the time British Columbians have no idea what kinds of
consultations are going on. In fact, look at mountain caribou. Nobody in
the world knows what’s going on there. Apparently a few do, but we
certainly don’t.
We’re going to seek clarity in every single case about why
information is needed and what protections are being put in place.
Virtually every bill contains regulation-making authority and data
collection.
Bill 5 also allows for additional gasoline taxes under the South
Coast British Columbia Transportation Authority Act. This tax increase
of up to 1.5 cents will be in addition to the carbon tax increases.
Well, guess what. Just the other day Dan McTeague of gasbuddy.com said
this: “You’re looking at about a 3.5 percent increase in costs, bringing
taxes to 53 cents a litre which, of course, will make Vancouver” — wait
for it — “the highest-taxed jurisdiction of any major city not just
across Canada, across North America.”
[R. Chouhan in the chair.]
Well, congratulations to the Finance Minister. She won an award.
In fact, we’re ramping it right up to the ceiling. We now, the people of
Vancouver, with this Budget Measures Implementation Act and the carbon
tax that’s going to be added on an ongoing basis, have now ramped
Vancouver costs to the highest tax jurisdiction of any major city across
North America when it comes to gas.
Well, I can tell the minister opposite that, in fact, this has
been, according to her, all about affordability and all about putting
money back in people’s pockets. Well, the fact of the matter is that
apparently, from the minister’s perspective, having the highest gasoline
prices in North America, looking at ongoing costs for employers and
small businesses, layering on taxes, including the speculation tax — I
think we’re going to have a pretty good argument that demonstrates that
while we may be putting money in one pocket, they’re taking it out of
the other pocket at a faster rate than most British Columbians can
actually imagine.
There are many other sections that will require additional
information, and we will endeavour to get answers throughout the
committee stage of this.
[3:30 p.m.]
From our perspective, as I said, Bill 5 implements a budget that
is full of risk, and that’s our most heartfelt concern. There are
enormous risks for British Columbia on the horizon.
Interjections.
S. Bond: The members opposite can guffaw and make comment about that, but
perhaps they want to listen to the Bank of Canada, which today just
issued a very dire warning about the future of the economy. In fact,
we’re talking about references to 2008.
I would suggest it’s about time that the minister and her team
paid a bit of attention to the storm clouds that are gathering. There
are razor-thin surpluses in this budget, growing debt and continued tax
increases and, again, a complete lack of a jobs plan or economic growth
strategy. The government has even given up defending that. They
basically just said: “We’re investing in people. That’s how we grow the
economy.”
Actually, the way you grow the economy is making sure that British
Columbia has a thriving economy, that it is competitive with other
jurisdictions. We’ve already pointed out that geographically, we are
becoming an island, an island that is not competitive. And it’s going to
continue to get worse, as we look at what other jurisdictions are doing
in terms of looking at tax reductions, focusing on growing the economy,
supporting a private sector economy.
We’re going to continue, every opportunity we get, to urge this
minister to reconsider her approach in view of all of the economic
warning signs. It’s time that this government took a second…. It’s time
that the government actually paid attention to what’s going on around
us. It is simply not enough to continue to spend, to continue to grow
debt in the province, without a single reference to a job strategy. No
economic growth strategy.
And what are we seeing? Dropping consumer confidence. British
Columbia’s economy is strong because of the confidence that consumers
have had in British Columbia. We’re seeing that weaken. Needless to say,
we do not support Budget ’19, and the Budget Implementation Act simply
gives life to a budget that we have fundamental concerns about. We are
concerned about the risks. We’re concerned about the growing economic
storm clouds that we see, with warnings that we’re hearing day after
day.
It’s evidenced by businesses being closed, people choosing to
leave British Columbia. British Columbians deserve better than that. It
is time for this government to rethink their efforts. We’ve seen 19 tax
increases since the government took office. There have about no new tax
cuts announced since the ones made by the previous government. The list
goes on.
With those initial comments…. I know that my colleague and my
co-critic will want to make additional comments, but I end my remarks on
this note. There are concerns being expressed around the world about the
continued deterioration of the economy. British Columbians deserve a
government that actually is aware of those issues, that recognizes the
importance of prudent and sound fiscal management. It is not about
expensive promises promised in 2020, promises that have disappeared from
this government’s radar screen and, most importantly, from their
budget.
It’s a time for prudence, for caution and for protecting the
interests of British Columbians. In our view, this budget and, thus, the
implementation of it are simply not sustainable. As the minister in her
own words said, we will agree to disagree and certainly will not be
supporting either these measures or the budget in its
entirety.
Hon. G. Heyman: It gives me great pleasure to stand and speak to Bill 5, the
Budget Measures Implementation Act, although, frankly, judging by most
of the comments from the member for Prince George–Valemount, it’s not
actually critical that I speak to the bill itself.
However, what I will say is this bill gives life to a number of
important measures that are contained in the budget, measures that speak
to what British Columbians asked for from their government. The member
opposite said that this government needs to pay attention to what’s
going on around us. I would say that’s exactly what this government is
doing.
[3:35 p.m.]
I would say there are probably 40 MLAs on the other side of the
House that wish the previous Finance Minister had paid even a jot of
attention to what was going on around them with housing affordability
and any number of other measures that British Columbians were crying for
day in, day out, which are now getting addressed by a government that
puts them in the centre of the budget, in the centre of our policies,
and not their corporate friends, to the sole exclusion of everyone
else.
The member opposite said this budget doesn’t have necessary
prudence. I would beg to disagree. This budget has ample amounts of
prudence, and that has been affirmed by commentators across the
political and business and civic spectrum. We are more than aware, and
the Finance Minister is more than aware, of the challenges facing the
global economy. That’s why there are so many measures in this budget to
address competitiveness, to address small business, to address venture
capital, to give the stability to the mining industry that they have
sought for many, many years.
Let’s talk about the claim that we don’t care about
competitiveness. If we didn’t care about competitiveness, we would not
have worked with the Business Council of British Columbia on how we can
diversify B.C.’s economy, how we can work together to market B.C.’s
innovation while addressing the challenge of reducing carbon, to give
stability and certainty to resource communities, to our existing
industrial sectors and to the workers who depend on them.
The members opposite have claimed at times that there is no
difference between our climate plan, CleanBC, our climate and economic
plan, and what they had started. But there is a difference in every
single metric you want to look at, not the least of which is an express
commitment that we have talked about, that we will introduce, that will
address the competitiveness issues for emissions-intensive,
trade-exposed industries in full consultation and partnership with them.
That was never found under the previous government.
They simply ignored both the climate challenge and the
competitiveness issues that go with addressing the climate challenge for
many, many large industrial operators in British Columbia, who recognize
that their survival depends on reducing emissions and cooperating with a
government that will make it possible for them to do so without putting
them at risk of competition from other jurisdictions and will help them
invest in the measures and technology that can make them
world-leading.
Apparently, members opposite think that everything good came from
them and everything bad can be attributed to us who are now in
government. That’s an interesting perspective, but to me, I think it
simply speaks to the fact that they have yet to accept that British
Columbians disagreed with their view that they had a natural right to
govern in perpetuity in British Columbia, that whatever they did would
result in their re-election.
I know that there are many members opposite who look at any one of
the investments in programs for communities, programs for families,
programs for people that are contained in this budget and wish the
previous Finance Minister had invested in even one of them. Because in
their heart of hearts, they believe that if they had made some of those
investments that people were crying for, instead of telling everyone,
year after year after year, that paying off debt came before investing
in their future and their children’s future, they might still be in
government.
I don’t believe that’s the case. But certainly, when the member
opposite says that they have people, British Columbians, calling them
for help every day in their constituency offices…. I can tell them who’s
calling us for help — or calling us, more correctly, to thank us for
help. It’s the parents and families who finally have affordable,
accessible child care and see it expanding week after week, month after
month and year after year. It is enabling them to have a life and to go
out and achieve the participation in the workforce that, for many of
them, was previously denied.
[3:40 p.m.]
The renters who were seeing double-digit, sometimes in the
mid-30s, rent increases made possible by loopholes are now calling us to
thank us for closing those loopholes, for taking the challenges of
renters of all ages — students, middle class, seniors, people who can’t
afford homes — taking their concerns seriously and taking measures to
increase the stock of rental housing and increase the affordability of
renting.
Students. Students are not allowed to borrow however much they
want under the student loan programs but are drowning under tens of
thousands of dollars of debt with interest accruing. Many students who I
know left school because they could not face the mounting debt that they
knew lay ahead of them and instead chose to try to make their way in the
economy without the degrees that would help them make a decent living
and help our economy grow and thrive. Those students are thanking us for
the measures contained in this budget to eliminate the interest on
student loans.
This budget and this Budget Measures Implementation Act are
delivering to British Columbians who work hard day in and day out, in
communities throughout British Columbia — people who own small
businesses; people who have steady jobs; people who are starting out in
their careers; people who are dreaming of taking their skills, whether
it be in technology or as craftspeople or as tradespeople, and starting
their own small businesses. They see assistance in this budget — not
just in the tax measures that encourage investment in small business,
investment in innovation but also the many measures that help them on a
day-to-day basis with their families, whether it’s child care, whether
it’s investment in education, whether it’s support for renters or any of
the number of other supports that British Columbians have been crying
for, for 16 long years. We’ve listened, we’re answering their concerns,
and we’re taking measures to help them.
Members opposite talk about how there is nothing in this budget
about jobs. If that’s the case, why did they have nothing to say when
they oversaw the elimination of 30,000 jobs in the forestry sector and
then have the temerity to accuse us of not taking the softwood lumber
threat and industry seriously?
We’re working to rebuild rural communities in B.C., to rebuild our
natural resource industries by adding value and providing secure jobs to
British Columbians. We’re working to make the mining industry, the
fossil fuel industry and the forest industry less carbon intensive, more
productive, more stable, therefore providing more jobs for British
Columbians. That’s what this government is about. If we weren’t about
jobs, we wouldn’t have gone to the lowest unemployment rate in Canada
under this government’s watch — not that government’s watch, but this
government’s watch.
There are any number of measures in the bills that we’ll be
debating before this House and in the budget and in CleanBC that will
provide impetus to our technology sector that will use technologies to
make our resource sector more productive; that will create jobs for
British Columbians, not just in the Lower Mainland, but in communities
all around British Columbia. The members opposite can scoff if they
want, but they are going to have a very long time on that side of the
House to do their scoffing, because British Columbians know that we’re
providing a better, more affordable and more comfortable life for
them.
Let me simply close by saying that when the member for Prince
George–Valemount stated that we care not a whit for the tax cost or
burden on Vancouverites…. It takes some gall to say that when under the
previous government’s watch, house prices in British Columbia generally,
but in Vancouver and Victoria specifically, drove almost everyone, every
young person, out of a position of ever, ever imagining being able to
own a home. Rents skyrocketing. That’s what made Vancouver
unaffordable.
As for the gas tax, it’s a permissive measure. It’s a permissive
measure for municipalities, and Metro Vancouver in particular, who have
asked for tools in order to fund transit expansion. Funding for transit
expansion was consistently denied by the previous government.
[3:45 p.m.]
Every measure that Metro Vancouver sought to put forward to fill
the funding gap for expanding public transit in Metro Vancouver was
turned down by the previous government or put to a phony, ill-advised
referendum that nobody wanted, that was guaranteed to fail and that
resulted in massive congestion and costs to the people in Vancouver,
both in terms of lost time and the costs of being stuck in congested
traffic instead of having an efficient and effective transportation
system.
If the members opposite want life to be better for British
Columbians, if they want life to be more affordable for people in
Vancouver, if they want jobs for British Columbians, if they want
innovation, if they want prudent budgets, then they can stay on that
side, support this bill and let us do our job.
Interjections.
Deputy Speaker: Members. Members.
Member for Chilliwack, if you want to make a comment, you have to
do it from your own seat, please.
The member for Surrey–White Rock has the floor.
T. Redies: I’m pleased to stand here to make some brief remarks with respect
to Bill 5, the Budget Measures Implementation Act, 2019. This bill, as
we know, contains a number of tax measures, including the main feature
of the 2019 budget, the government’s new child opportunity benefit,
although it is not coming into effect until late 2020. It also contains
a number of other tax measures, some consequential, some extending
programs that were put in place under the former B.C. Liberal
government, such as the farmers food donation tax credit and the
shipbuilding and ship repair industry tax credit.
I know a number of members on the other side think that I’m overly
critical of this government and I that don’t always acknowledge some of
the good things that the government has actually put in place. So let me
say that I appreciate that the government is seeking to provide some
additional relief to families with children, with incomes mostly under
$100,000, with this new child opportunity benefit.
It’s very clear, especially in the Lower Mainland, that young
families are struggling to keep pace with costs — costs that seem to
keep rising year over year. Based on some of the language in the budget
measures bill and in the budget document, though, it’s not clear to me
that this benefit is going to do as much for these families as the
government purports, however. It also seems to be eliminating existing
benefits for some families who currently receive them. We’ll be
exploring that in the committee stage of this bill and in
estimates.
When I looked at this child opportunity benefit, I wondered about
other people — couples with no children who are making less than
$80,000, for example, who are also finding it hard to get ahead,
especially in the Lower Mainland. Seniors who are renting. Young people
who are living paycheque to paycheque. Young couples trying to save up
for a down payment for an apartment or a townhouse. It appears that
there’s little relief in this budget or in this budget measures bill for
them.
I’d also say that it was kind of curious to me that the child
opportunity benefit will not be implemented until late 2020, although
the Finance Minister has indicated that’s because the CRA can’t get it
in place in time. But for me, for a government that indicates that it
wants to address affordability challenges for British Columbians…. Why
are they not asking the feds to speed up the implementation? These will
be some of the questions we’ll be pursuing in the committee stage and,
perhaps, estimates.
Now, on the business side…. The members opposite are going to be
very surprised, because I’m going to speak positively about another
measure in this budget measures bill. I was pleased to see the mining
flow-through share tax credit as well as the mining exploration tax
credit both made permanent in this budget. As we all know, mining is a
very important industry to this province, and it’s integral, in my mind,
that B.C. be able to develop its resources on a sustainable basis. Our
go-forward standard of living depends on it.
B.C. has the fastest-aging society in Canada — indeed, one of the
fastest in North America. I worry that we cannot get our resources to
market fast enough, whether it’s mine commodities, natural gas or even
Alberta oil and bitumen, which do and could generate substantially
increased tax revenues and transfers for the country and province
respectively.
[3:50 p.m.]
Given our aging population and the spectre of an increasingly
fewer number of working people supporting a ballooning retiree group, we
face a potentially significant drop in our standard of living if we
can’t get our resources to market, albeit we must ensure we do it in a
responsible and sustainable manner. So it’s good to see the government
making the flow-through tax credits for mining permanent in this
province to encourage ongoing investment.
The mining of commodities, of course, is a very challenging,
high-risk business. And in recent years, it has become increasingly
difficult to get permits and mines off the ground in our province. The
government’s new mining oversight body, one of the touted initiatives
that are, so-called, helping the mining industry, is not likely to make
that any easier. But I am digressing from being positive.
Let me talk about another program that I was pleased to see in the
budget measures act. While it was started under the previous government,
it’s good to see that the small business venture capital tax credit was
enhanced with this budget measures act, although I have a few questions
on the program that we’ll canvass at a later stage. The increase of the
annual tax credit from $60,000 to $120,000 and the raising of the
maximum amount that eligible business corporations can raise through the
program from $5 million to $10 million are welcome changes, and it will
support increased investment in start-ups in our province. So I thank
the government for making these two changes.
Now after that list of positives, let me talk to the issues that I
have with this budget measures bill and, indeed, with the overall
approach to the budget in 2019. Notwithstanding the two programs that I
just spoke to, the budget measures bill and Budget 2019 do little for
the overall business climate in this province. In fact, beyond these two
initiatives, there is glaringly little in this budget and the budget
measures act for economic development, job creation and growth in the
private sector. It’s the private sector that grows the economy
sustainably, not the public sector.
The government is spending at a rate that is not sustainable,
especially in a downturn. And capital spending is growing at a compound
annual growth rate of almost 14 percent per year. That’s not
sustainable, particularly if the economy does go into a downturn. Again
I say that there is very little in this budget to stimulate the private
sector. It’s the private sector that grows sustainable jobs, not the
public sector. When the government spends, taxpayers have to pay it.
When the government spends on capital spending, taxpayers have to pay
it. So it’s very, very important that government creates a healthy
climate for the private sector to invest and to grow jobs.
There certainly isn’t anything for business in this budget
measures bill in terms of reducing the growing tax burden on businesses
or sufficient initiatives for growing jobs and investment across our
province in the private sector. I guess we should be thankful there were
no new taxes in this budget. But most B.C. businesses are about to get
punished, in 2019, with the advent of the myriad of business taxes
introduced last year. From the employers tax to the double-dipping with
MSP premiums to the increased corporate tax to yet another increase in
the carbon tax as of April 1, B.C. businesses have been hard hit by this
NDP government.
Over the last two years, B.C.’s marginal effective corporate tax
rate has plunged to the 14th worst of 14 jurisdictions in North America.
And that was before the leader of the UCP, the United Conservative Party
in Alberta, announced yesterday that if he becomes Premier of our
neighboring province to the east, he will cut corporate taxes by
one-third — from 12 percent to 8 percent. Moreover, many of the new
taxes aren’t even accounted for in the marginal effective corporate tax
rate that I referred to.
The onerous employers health tax alone will generate $2 billion
annually in tax revenues off the backs of businesses. And this tax will
be on top of the MSP premiums that businesses must continue to pay in
2019 because the government chose to double-dip in order to support its
massive spending increases. In fact, I did a rough calculation that the
EHT, corporate tax and 50 percent of the carbon tax will add about $8
billion in taxes to the business sector over the life of this
plan.
The other side seems to think that businesses can take all of
this. In fact, actually, we’re hearing stories of businesses who are
seeing their profits decimated by this EHT and other taxes. In one case,
we’ve been advised of a small business in the Fraser Valley where their
net profits are being brought to near zero as they now have to pay
$200,000 in EHT.
If the businesses are feeling the pinch, there is a reason. That’s
because this government has declared an all-out war on the business
sector, who are getting hit with the lion’s share of the tax increases
implemented by this NDP minority government.
[3:55 p.m.]
We’re already starting to see the impacts of this. I said last
year around this time that all of these taxes have the potential to send
the economy into a downward trajectory by dampening competitiveness,
increasing costs and choking off the private sector investment. And what
are we seeing? A 6.4 percent decline in housing starts, with another
almost 30 percent predicted to climb through the balance of the plan
period. Housing sales down year over year in January by 40 percent and
down year over year in February by 32 percent.
Business confidence is tanking. According to the Canadian
Federation of Independent Business, the B.C. small business confidence
index now sits at 55.4 points, placing it below the Canadian average of
59 by 3.6 points. Compared to last year, according to the CFIB,
entrepreneurial confidence in B.C. has dropped 14.1 points. That does
not bode well for investment.
In fact, Muriel Protzer, the policy analyst for the CFIB for B.C.
and Alberta, described the situation as follows: “This year is already
proving to be a challenge for local businesses in B.C. The 2019
provincial budget shows no new meaningful measures to support local
businesses. Entrepreneurs still face a mountain of cost increases as a
result of last year’s budget that are just coming into play, such as the
employer health tax, carbon tax increases and minimum wage
hikes.”
Further, as raised by my co–Finance critic from Prince
George–Valemount, this budget also introduces another 1.5-cent-per-litre
tax on gasoline. At the same time, the government is introducing yet
another increase in the carbon tax, of $5 per tonne, in April. This
government is on track to raise the carbon tax by 67 percent by 2021,
and they’ve removed the revenue neutrality.
On top of that, British Columbians in the Lower Mainland are now
expected to pay another 1.5 cents a litre more for their gasoline. So
much for making life more affordable. Far from it. This government’s
actions have resulted in British Columbia now paying the highest gas
prices of any jurisdiction in North America. And gas taxes are only
going one way: up.
Governments have to make choices and must walk a careful balance
between providing social services and taxing individuals and businesses
to such an extent that they either leave the province or, in the case of
businesses, stop investing — or, worse, lay off people. I think we are
precariously close to that now.
This government has shown no signs of letting up on expenditures.
In fact, it is pedal to the metal on spending. Astoundingly, to me, this
government spent an extra $2 billion in fiscal 2018-19 than it forecast
it would spend. In just one year alone, two billion extra dollars of the
taxpayers’ money was spent.
This is all coming at a time when the economic growth party
appears to be grinding to a halt in Canada, and, as my colleague from
Prince George–Valemount raised, there are a lot of storm clouds on the
horizon. The five largest economies in the world are all expected to
experience economic slowdowns in 2019, mostly due to self-inflicted
wounds but some dealing with economic headwinds, like Japan, due to its
changing demographics.
The Canadian economy in the last quarter only grew by 0.1 percent.
The governor of the Bank of Canada, Stephen Poloz had this to say:
“Consumer spending and the housing market were soft,” speaking with
respect to the last quarter, “despite strong growth in employment and
labour income. Both exports and business investments also fell short of
expectations. And after growing at a pace of 1.8 percent in 2018, it now
appears that the economy will be weaker in the first half of 2019 than
the bank projected in January.”
The bank is changing its projections after one month. This is
happening a lot faster, I think, than people are expecting or people on
the other side are anticipating. And while B.C.’s economic growth has
remained relatively strong, it’s still declining. Make no mistake. It
cannot weather these economic storm clouds untouched.
All of this to say it’s not a given that the strong B.C. economy
will go on forever. From our perspective on this side of the House, it
seems to us that this government is continuing to spend like there is no
tomorrow. As such, while there are positives in this budget measures
bill, I remain very concerned with the overall direction of this
government, its free-spending ways and its inordinate disregard for the
competitiveness of the province and the businesses within it. There will
be a reckoning. No economic cycle, positive or negative, goes on
forever.
[4:00 p.m.]
I worry that this government will have structured spending in such
a way, between the union benefit agreements and public sector contracts,
that it will be difficult to avoid significant budget deficits in an
economic downturn. When that reckoning comes, I just hope it’s not
British Columbians that pay dearly for it in the form of much higher tax
increases or substantial cuts to needed programs.
A. Weaver: It gives me great pleasure to rise and speak on second reading on
Bill 5, Budget Measures Implementation Act, 2019.
As we know, this bill implements a number of the tax changes that
were outlined in the budget. I won’t go into rather gory detail on this.
Of course, I did speak quite a long time to the original budget, and
we’re seeing a few of the items there reflected in the implementation
act here.
There are, obviously, a number of initiatives — major new
initiatives like the new B.C. child opportunity benefit, as well as
things like expanding existing programs like the small business venture
capital tax credit. I’ll come to some others shortly. There’s a number
of other minor changes that we’ve been told clarify administrative
aspects of existing taxes. By and large, I and my colleagues are
supportive of the overall direction of this budget, as we articulated in
our budget speech.
The first one I want to address, though, is
section 1 of Bill 5,
2019. This is a proposed change to the Carbon Tax Act. Now, it’s been
suggested to us that the legislative change here just clarifies that the
existing penalty already exists for selling natural gas without a
certificate, and the legislation wasn’t clear enough previously. I must
admit a flag was raised by this section, and I look forward to a
briefing on this section, in approximately 45 minutes, to ask a few
questions directly about what was intended here.
Other sections in the bill are not particularly controversial,
from our perspective.
I want to address the flow-through mining tax credit. This is a
key