Hansard -- Thursday, February 19, 2004 p.m. -- Vol. 20, No. 11 (HTML)

The following electronic version is for informational purposes only.
The printed version remains the official version.

Official Report of

DEBATES OF THE LEGISLATIVE ASSEMBLY


CONTENTS

	Routine Proceedings
		Page

Introductions by Members		8669

Statements (Standing Order 25B)		8669
	North Shore Rescue Team
	R. Sultan
	Multiculturalism in Surrey
	B. Locke
	B.C. Council for Families
	V. Anderson

Oral Questions		8670
	Taxation levels
	J. Kwan
	Hon. R. Thorpe
	J. MacPhail
	Review of surgical services by interior health authority
	B. Suffredine
	Hon. C. Hansen
	Tendering process for roadwork contracts
	B. Lekstrom
	Hon. K. Falcon
	Safety improvements to Highway 10
	T. Bhullar
	Hon. K. Falcon
	Funding for women's centres and services
	R. Sultan
	Hon. I. Chong

Budget Debate (continued)		8673
	Hon. R. Thorpe
	M. Hunter
	B. Locke
	P. Wong
	Hon. M. Coell
	D. Jarvis
	R. Lee
	Hon. R. Harris
	R. Nijjar
	G. Hogg

J. MacPhail: I'm not sure that this will be welcome, but the member for Surrey-Whalley told me she is about to turn a different age tomorrow. She's also about to become a motorcyclist as she does that. Nothing about middle-age crises, please. I think we should all wish her a happy birthday.

J. Bray: Today I had the pleasure of hosting a guest at lunch who had purchased lunch with their MLA to support a fundraising campaign in a local school. We had a very interesting lunch, and he was so intrigued that he wanted to stick around and watch question period. I'd ask the House to please welcome Mr. Paul Holden.

R. Sultan: Present in the House this afternoon is an eminent North Shore entrepreneur and a great believer in the free enterprise system. Would the House please welcome Peter Kains.

Hon. I. Chong: Today I would like to welcome a number of students — in fact, 40 grade 11 students. They are accompanied by three adults: Ms. Anne-Marie Thibaud, Mr. Claude Gross and Mr. Jean-Luc Teyssier. This school group comes from Avignon in the south of France, and they're on an exchange with Mount Douglas high school, which is my former high school. I know they have had a tour, and they're interested in seeing how this Legislature works — in particular, question period. I would ask the House to please make them all very welcome.

L. Mayencourt: I'd like to make welcome the following guest, Leon Leontaridis, who is an accomplished tenor studying at the University of Victoria. Leon is the husband of my legislative assistant, Alison Leontaridis, and she's in the gallery as well. Also joining them is Jamie and Megan Huckabay. Jamie is a political science student at the University of Lethbridge, and he's also the secretary of the Lethbridge Liberal Party riding association and in town visiting his sister Megan. Megan is a music education student at the University of Victoria, specializing in choral music and science education.

Also joining us in the House are some good friends of mine from the Brewers Association of Canada: Mr. Daniel Fontaine, Greg D'Avignon and Marco Dekovic.

We also have an extra-special person in the gallery, Mr. Stephen Rogers, who was the MLA for Vancouver South some years ago and a former Speaker of this House. Would the House please make them all feel very welcome.

M. Hunter: I see up in the gallery a constituent and good friend of mine, Jacinthe Eastick. I don't know if her husband, Peter, is with her. Yes, he is. I want to introduce him too, because Peter is a man who runs the annual Remembrance Day ceremonies on Gabriola. I hope the House will welcome both of them here today.

R. Sultan: I wish to speak this afternoon about heroes. I refer to the North Shore Rescue Team, 40 volunteers who regularly put their lives on the line to rescue people from the backyard wilderness stretching from Indian Arm to Bowen Island.

In no other major North American city are citizens 20 minutes away from where they can immediately get into trouble in the wilderness. Virtually within our city limits, people have been killed in snow avalanches, have been plucked off mountainsides by helicopter or have simply gotten lost and died.

From small beginnings 38 years ago based on one mountaineer helping another, the team today is fully equipped for an all-weather response 24 hours a day, winter or summer. Equipment is purchased through contributions to them from organizations such as the North Shore Credit Union and Safeway. About twice a week the team is called out to look for snowshoers who have not returned from the back country, to rappel down steep cliffs to rescue stranded rock climbers, to follow snowboarders' tracks into the icy gullies of Cypress, Grouse and Seymour or to carry out smashed mountain bikers who have greater cojones than common sense.

For risking their necks, these 40 people are paid absolutely nothing. Search manager George Zilahi told me that members believe serving on this elite team is their way of putting something back into the community. What a refreshing ideal — to put one's own life on the line year after year to rescue others without compensation.

As we try to rebuild the tradition of volunteer contribution in this society, the example of the North Shore Rescue Team should inspire us all.

B. Locke: I rise today to speak to multiculturalism. Without a doubt, B.C.'s diversity is a critical asset contributing to our economy, our prosperity and our identity as a province and a country. But more importantly, both the Minister of State for Multicultural Services and myself are encouraged by some local initiatives in our home city of Surrey — initiatives that celebrate the over 90 different languages spoken in our schools. From curriculum development to administration to the classroom, Surrey school district takes advantage of the

tremendous opportunity to expose children to the world right in our own community. Schools encourage students to share traditions and foods. As a mom, I have baked shortbread for my children to share with other children's pakora, sushi and spanakopita.

Surrey teachers, administrators, PACs and parents should all be congratulated for creating a healthy dialogue and cultural exchange. Encouraging open expression and emphasizing flexible minds are vital to developing healthy analytical skills in our children and youth.

Thank you should also go to Surrey Memorial Hospital. Our hospital now boasts one of the largest birthing centres with private rooms for all the new moms and their families. This is appreciated by the new South Asian families whose tradition it is to share in the occasion. As well, a small temple has been opened in conjunction with the hospital's existing chapel.

In addition, Surrey parks department has also contributed by adding multicultural signage so everyone can enjoy our parks.

Our province is becoming more diverse every day. Thank you to the Premier who appointed the new Minister of State for Immigration and Multicultural Services, reflecting our provincial government's commitment to embracing our cultural diversity. My Surrey colleagues and I welcome everyone to visit our vibrant, inclusive, multicultural city of Surrey.

V. Anderson: In the throne speech last week, it was stated: "Later in the year the Premier will host a series of round tables aimed at engaging B.C.'s families in a discussion about their hopes and aspirations for the future." This is a very significant promise, for it fulfils an ongoing partnership of the B.C. Legislature which has continued from 1975 to the present.

In 1975 and 1976 two conferences were held in cooperation with the government of the day about family life in B.C., bringing together representatives of communities from across British Columbia. The result was an all-party resolution in the Legislature, a unique process, to form the B.C. Council for Families as a partnership with the B.C. Legislature, the B.C. community and the faith communities of B.C. It was my pleasure to share in that important process.

The council was originally formed by an order-in-council of the Legislature and became a non-profit organization in 1977 to fulfil the mandate for the support of families. For 27 years the council has fulfilled its vision in developing, coordinating and supporting programs across B.C., for which it has gained national and international recognition and praise. The council has developed and tested courses for premarriage preparation; Nobody's Perfect program, a parenting program for high-risk parents of children from zero to six; a Parent-Child Mother Goose Program on early childhood, social and literacy development; Ready or Not! for parents of 12-year-olds and under; suicide education and awareness in the school system; and training programs for trainers in family life. The council is excited about the Premier's focus on families and looks forward to sharing with him in this process.

J. Kwan: Can the Minister of Provincial Revenue tell this House how much more a two-income family of four making $30,000 a year will pay in provincial taxes in the next fiscal year compared to last year?

Hon. R. Thorpe: Thank you very much for that question. Let me say that under the previous government, a family of four making $30,000 was paying a tax of $3,739. Under our government, including health premiums, they are paying $3,540 — a savings of $189. Let me also say that under the NDP's alternative budget, they want to increase taxes on those families by 27 percent. That is unacceptable to our government.

Mr. Speaker: The member for Vancouver–Mount Pleasant has a supplementary question.

J. Kwan: Well, the fact is that a two-income family of four making $30,000 a year will pay $435 more in provincial taxes in 2004 and '05 than they did last year. Those numbers come directly from the budget documents — the government's own budget documents.

Can the Minister of Provincial Revenue tell this House how much more a senior couple with an income of $30,000 will pay in provincial taxes as a result of this budget?

Hon. R. Thorpe: Our government committed, under the leadership of our Premier when we were running for election, to make sure we had the lowest personal tax rates for those making $60,000 or less. Our government is achieving that goal. In fact, families throughout British Columbia will continue to pay less taxes under our government than they did in the NDP government of 2001. In fact, they want to increase taxes on seniors, on everyone working in British Columbia, between 27 percent and 71 percent. That is unacceptable. Our government won't go backward. We're going forward to bring out the very best in all British Columbians.

Mr. Speaker: Member for Vancouver–Mount Pleasant has a further supplementary.

J. Kwan: The fact is that this government is collecting $1.9 billion more in regressive taxes. The fact is that a senior couple with an income of $30,000 will pay $128 more in provincial taxes than they did last year. Again,

Can the minister tell this House what the situation is for a two-income family making $60,000 a year?

Hon. R. Thorpe: Let me talk about a family of four that, including health premiums in the year 2001, paid $6,895 in tax. In this budget, this 2004 budget, they will pay $6,349 — a savings of $546. In fact, when Carole James and the NDP get finished with this family, they'll have an additional tax bill of $1,700 a year. That is not acceptable to British Columbians.

J. MacPhail: My gosh, I wish we could call an election so we could discuss these matters. I bet you British Columbians will be looking to this government's record on what they promised and what they've delivered.

Let's just sum up. A family with two kids with both parents holding down two minimum-wage jobs will pay over $400 more in provincial taxes, while a family with a joint income of $60,000 will pay $128 more than last year. Now, the Minister of Finance has said the reason…

J. MacPhail: …provincial taxes are going up for low- and middle-income British Columbians — he said today — is because property values are increasing. Did he forget that it was last year that he increased property taxes?

Let me get this straight. Bob and Mary Smith, from their minimum-wage jobs, go home to close a real estate deal on a $300,000 house in the lower mainland. That's the Finance minister's explanation of why that family is paying more in taxes this year. This government has its priorities all wrong.

Can the Minister of Provincial Revenue justify soaking poor and middle-income British Columbians to pay for the tax giveaway to the wealthiest British Columbians and big corporations?

Hon. R. Thorpe: You know, British Columbia is moving forward. British Columbia is now number one in job creation, number one in new housing growth, number one in small business confidence, number one in destination for immigration investors. In fact, people that those two members drove out of British Columbia are moving back to British Columbia. We want our best and brightest back here in British Columbia.

The facts of the matter are simple. We promised to balance the budget. We're doing that. We said we'd invest in health care, and by 2006-07, $3 billion more will be invested in health care, $313 million invested in K-to-12 and $105 million invested in advanced education. It's time those two members over there got on the wagon of success here in British Columbia.

J. MacPhail: Well, let's see what moving forward under a Liberal agenda means for these families. One family, a $30,000 income family, will be paying $435 more this year than last. Maybe that's not much to this minister.

Now, the Finance minister had another explanation of why this family was paying more. He said: "Well, they're buying more, and so they're paying more in sales tax." Did he forget that he raised the sales tax himself? Is the memory of this government one hour long, one week long, one year long or zero?

Perhaps for everybody in this caucus, $435 is nothing. But for a family of four living on $30,000 a year, it's a big bite out of their budget. Can the minister explain why his government, from last year to this year, is gouging more out of low- and middle-income families in this province to cover his big tax cut? We haven't even got to tuition hikes, ICBC, hydro, health care, Pharmacare premiums. Just on straight taxes they're gouging the heck out of $30,000 families.

Hon. R. Thorpe: It's very hard for those members over there to accept that British Columbia is moving forward, increasing jobs — that people are moving off the welfare rolls, having jobs themselves and able to look after their families.

Let's look at the facts here. A taxable income family of $10,000 under Carole James's plan will increase $110; $20,000 — increase $387; $30,000 — increase $664. And the list goes on and on. It's about tax, tax, spend, spend — the NDP — and British Columbians have had enough of that.

B. Suffredine: Last year the interior health authority sanctioned an independent review of surgical services in our region. Now, few services are more highly valued in small communities than surgery. The recommendations that result from the surgical review include a number of choices. Changes to surgical services in those small communities could actually affect their ability to attract new people to our communities, so how the recommendations translate is vitally important.

Can the minister tell residents in my riding what those recommendations are likely to mean to them?

Hon. C. Hansen: This is actually a great news story for residents of the interior health authority. As is happening throughout the province, we have approached

this with the philosophy that every hospital cannot be an island unto itself. If we're really going to meet the needs of patients throughout this province, we have to look at the whole health care system as a network of services.

The IHA has gone out for a surgical review to look at how that network works to meet the needs of residents of that region. They're asking themselves where what kind of procedures can be done most effectively and in the most timely fashion. The IHA has gone out to meet with communities to talk to them about why this is actually going to improve access to care so that people can get faster access and better access. I think that's good news for everybody.

B. Lekstrom: My question is to the Minister of Transportation. Improving roads and road maintenance is of vital importance to the people of Peace River South, as it is to everybody in British Columbia. In the past, though, tendering processes for construction contracts have often been released far too late in the season so that construction companies can plan ahead. Can the minister please tell myself and this House what plans are in place to ensure the tendering process for roadwork contracts is released sooner and in a more timely fashion?

Hon. K. Falcon: Actually, the Ministry of Transportation currently undertakes a year-round tendering process, but I appreciate the comment from the member. As I was up in the north a couple of weeks back, that was a very common theme that I heard from many of the contractors. The ministry's objective now is to tender one-third of our capital rehabilitation and heartlands programs by March 31 of this year so that they're ready for this summer's construction season. This represents 70 contracts representing almost $150 million worth of work in the heartlands, and I think that will be very well received.

I might also add that that's particularly important news after a decade of neglect where we saw the previous government invest virtually nothing up in the heartlands of British Columbia. Today, as part of our three-year program of investing $1.3 billion, $838 million of that $1.3 billion will be invested in the heartlands of British Columbia.

T. Bhullar: My question is to the Minister of Transportation about Highway 10 in Surrey and the area that I used to at one time live — a very dangerous stretch of the highway. Numerous people would be killed on that highway. In fact, I'd come upon accident scenes where individuals were killed. It's a very, very dangerous highway. Are there any plans whatsoever to expand this highway, given the danger that it presents?

Hon. K. Falcon: Yes, you're right about that road. This is a road that the community — and, frankly, all of Surrey — has been crying out to have widened and the safety improved now for decades really. That program has been announced. We will be widening it to four lanes from 122nd in Delta to 176th Street in Surrey, which will then have a four-lane corridor going all the way through from Langley to Delta. That is something that the work is beginning on just as soon as we can complete the environmental studies, which the federal government requires us to go through, and the engineering studies, which are nearing completion. The good news is that the moment we can get shovels in the ground and tractors on the road, we will have that underway.

R. Sultan: My question is to the Minister of State for Women's and Seniors' Services. A few weeks ago I attended a very lively forum hosted by the North Shore women's coalition. There was a discussion of a variety of issues, including the provincial government's decision to no longer fund women's centres. Can the minister explain what the government is doing to ensure that front-line service to women experiencing violence is not compromised?

Hon. I. Chong: Firstly, as the Minister of State for Women's and Seniors' Services, I'm very happy to hear that my colleague the member for West Vancouver–Capilano is participating in dialogue around women's issues in his community.

I am very proud to serve with a Premier who is committed to providing direct services to women at risk. On the North Shore we provide over $1 million in annual funding for transition houses, for safe houses, for second-stage housing, for counselling for women who have experienced abuse, under our Stopping the Violence programs. Across the province we provide over $33 million annually for our Stopping the Violence programs for women who have experienced abuse and for children who have witnessed abuse, and we will continue to provide those direct services.

Most women's centres have told us that they will remain open. Some, like the North Shore women's centre, have formed partnerships with local governments. Some have formed partnerships with other community organizations, and they will continue to provide those services.

Hon. I. Chong: This government will continue to provide funding that focuses provincial dollars on maintaining direct essential services for women escaping violence.

Hon. R. Thorpe: It's a pleasure to continue my debate here on the budget speech. I want to start this afternoon talking about bringing out the best, bringing out the best in our student achievement in K-to-12. You know, under the leadership of our Premier, we have placed a very, very high priority on education. In this budget we announced a major new initiative to address literacy.

The Premier himself is establishing a Premier's advisory board on literacy. This is a Premier who cares about our children, cares about our students and is actually taking and showing leadership. With respect to funding on K-to-12, over the next three years our government will be putting an additional $313 million into K-to-12 education. This is good for our students today. This is an investment in our future, and it's going to bring out the best in British Columbia.

When we look at bringing out the best in advanced education, our government has committed to creating 25,000 new spaces by the year 2010. In fact, we will create 12,000 new spaces in the next two years. We have and are developing and will be announcing a new comprehensive strategy to increase access to advanced education institutes in British Columbia, because we know this, too, is key to our future and key to bringing out the very best in British Columbia. Funding has been increased to institutions so that they can provide for the students and the courses that are required there. By the year 2006-07 we will have increased funding to higher education institutes by $105 million, providing opportunity to all regions of British Columbia.

I want to bring out an issue and talk about how we're bringing out the best in health care in British Columbia. You know, the members over there for Vancouver-Hastings and Vancouver–Mount Pleasant continually mislead British Columbians in talking about cuts to health care funding. In fact, nothing could be further from the truth. Our government, to date, has increased funding to health care by $2 billion, and by the year 2006-07 we will have increased funding to health care by $3 billion, to $11.3 billion — an increase since we took over from the NDP of 36 percent here in British Columbia.

Bringing out the best in British Columbia means that our government, under the leadership of our Premier, is aggressively pursuing having the national centre for disease control located here in British Columbia. We have the brightest, we have the best, we have the expertise, and we believe it's in Canada's interest to ensure that the national centre for disease control for Canada is located here in British Columbia. That will continue to bring out the very, very best in British Columbia.

When I look at my riding of Okanagan-Westside, I think it's important, with respect to health care, to take a moment and talk about the Summerland Health Centre. As you know, our health care system was not sustainable as we know it, and we've had to make some changes. They've been made in a thoughtful manner, and we have been working very, very closely with the community.

This centre houses a variety of services under one roof for the community. Services include public health, home support, home care, long-term care assessment, community rehabilitation, speech therapy, community social work, lab services, imaging services, day surgeries, extended care and diabetic education. The centre has seen significant decreases in wait-lists for X-rays and day surgery while increasing the number of people who are coming to Summerland for their treatments. In fact, X-ray technicians are now seeing 800 patients per month. Lab staff are seeing over 900 patients per month.

The reforms in health care are working, and they're working for the people in the riding of Okanagan-Westside. With respect to assisted living, the interior health authority has recently made a call for expressions of interest to develop a new facility for seniors and adults with disabilities.

This is good news for Okanagan-Westside; this is good news for British Columbia. But you know, the real test is what the constituents think. Let me just quote a couple of articles from papers.

A resident from Penticton came up to the Summerland care centre, and he was so pleased. He said he was 100 percent pleased with the surgery and treatment, and he expressed this in a very yummy way. He brought homemade baked apple muffins for the office staff, nurses and doctors. That's one British Columbian showing how he appreciates the changes in things that are going on.

Irene Kennedy from Penticton recently came to Summerland health centre for eye surgery. She had glowing comments about the service: "They were right on time. Everyone was just wonderful, and I was delighted when they gave my friend and I a cup of coffee while she waited to drive me home." She went on to thank all of the nurses and the folks that are working in the Summerland health centre.

When we see people working together for the benefit of British Columbians, we know that things are working for us. With respect to working and people providing services in Okanagan-Westside, I'd just like to compliment the parent advisory councils in the West Side, Westbank, Peachland and Summerland for the tremendous work they are doing with the schools and our children. They know that we will continue to work with them so that they can provide and show guidance to our students and help them along, whether it be with computers or other supplies they need to enhance their education.

You know, Mr. Speaker, all of the hard work that members in this House…. People throughout all parts

of British Columbia could be at risk because the true NDP colours have been shown once again. Carole James and the NDP, through their economic brain trust, the Canadian Centre for Policy Alternatives, have told British Columbians — and I suppose they do deserve a pat on the back for coming clean and telling British Columbians their views…. What they want to do is roll back the clock. They want to take us back to where we were. They want to take British Columbia backwards, and we all remember the decade of the nineties, the disaster under the NDP. They've told us they want to, as a minimum, increase personal taxes by 27 percent. For nurses and teachers, we see increases ranging from 40 percent to 50 percent in their taxes. For doctors, we see 66 percent to 75 percent increases in their taxes.

What is all this going to do? It is going to do what the NDP did to British Columbia before. It is going to drive our best and brightest out of British Columbia when so many of them have now come home. That is wrong.

The economic backbone and the heart of our province is small business, and what does the NDP…? What do those two members over there want to do to small business? They want to increase their taxes by 71 percent. They want to destroy small business in British Columbia.

They're also talking about forming a public bank. Many British Columbians will remember their experiment under the Premier of the day, Premier Glen Clark, when they introduced Four Corners bank. Now they want to take that concept, and they want to supersize it. They want to bring in a public bank, and they want to use people's pension funds. They want to take royalties away from our forest industry, they want take royalties away from our gas and oil industry, and they want to skim from Crowns to put into this new public fund, NDP bank. We know what happened to the Four Corners bank. We know it has to be closed down. We know that it has lost over $6 million of taxpayers' money. This has the possibility of losing hundreds and hundreds of millions of dollars of taxpayers' hard-earned money, especially their pensions.

They also now are saying in this budget that they want to return to subsidies. The NDP want to return to subsidies. They want to have the jobs and timber accord, and they want to have Power for Jobs. Do we not remember? I know I remember, being the minister responsible for the Skeena Cellulose file, that the NDP took $425 million of taxpayers' money and wasted it on subsidies to that industry. That is absolutely not acceptable.

Then the most alarming of all — and that's why it's so hard to take those two members over there seriously — is that now they are talking about not balancing a budget until the year 2010. Not only are they going to put British Columbia in jeopardy today, but they are also going to put the children of British Columbia in jeopardy tomorrow. They're going to put people like my grandson in trouble, because they just want to tax, spend, tax, spend.

The NDP have shown us their socialist model does not work in British Columbia. We need a model here in British Columbia that rewards those who want to work hard. It rewards those who want to take a chance. Mr. Speaker, they have to be stopped. It's a very clear choice. It will be a very clear choice, and it's very interesting that members of the NDP are now calling for an election.

The ballot choice will be very clear. Do you want disaster, taxes, subsidies, public banks owned and run by the NDP, or do you want a free enterprise system where those who want to work hard get to make choices because they're going to have more money in their pockets? Do you want a government that's committed to fiscal prudence and conservatism? Those are the choices. Our budget is about moving forward in British Columbia and building and bringing out our very best. I am proud of the choices our government has made.

We said we were committed to balancing the budget, and that's what we've done. We said we would do it over three years. That's what we've done. We said we would protect British Columbians by making sure it was a legislated requirement. We've done that. We said that if we could, we would add money to health care. By the time this budget concludes, it will be $3 billion that has been invested — an increase of 36 percent over the NDP. There's $313 million in K-to-12 education and $105 million in advanced education.

Our government stopped subsidies to business. We now have a competitive business climate. We're seeing companies move here from the United States and from around the world, and that is creating jobs. We said we would cut red tape by one-third, and we're doing that. We said we'd introduce fair and balanced labour laws, and we've done that. Our budget shows an understanding of the needs of British Columbia, for all parts of British Columbia. It reflects fiscal realities — something that the two members over there have never understood and, quite frankly, never will understand.

It's about building for the future. It's about having leadership and a Premier here who has a vision for the future on how we can bring out the very, very best in British Columbia. It's about welcoming the world to British Columbia not just to visit but to relocate here, to invest and to raise their families. It's about building a world-class, prosperous community in all parts of British Columbia.

This budget reflects leadership, vision and commitment to our principles. We said we would do it. We did it. Has it been easy? There have been challenging times, and there will continue to be challenging times. But we have a team that has tremendous leadership, a team that works together, and British Columbia has turned the corner.

We are on the road to prosperity. We are building a future. We are bringing out the best in all regions of British Columbia, in all sectors of British Columbia. In the Spirit of 2010 our government will continue to lead; to create opportunity; to provide education; to provide

health care; to provide for those truly in need; and to create and make sure we have a business climate here that allows individuals and small businesses to make decisions, to take chances, to succeed and to lead in the world.

Yes, this budget is about bringing out the very, very best in British Columbia. It's about leading to the future. It's a budget that I will proudly vote yes for.

M. Hunter: I am delighted to be able to rise this afternoon to speak in support of the budget, which the Minister of Finance introduced just 48 hours ago in this chamber. For me it was a special day on Tuesday.

One of the reasons I sought public office…. I can tell you that many people have asked me since: "Why would you do this? Why would you tear yourself away from your family? Why would you put yourself in the public eye at your ripe old age?" My answer, for the most part, was that I believed that under the former government, the respect the taxpayers' dollars is due was missing. It was absent, and I felt that I could do something about this. One of the major reasons that I ran and I stand in this place today is because I believe that public finances are a public trust that is one of the most important values we have in a democracy.

The Minister of Finance rose in this House to announce what he had promised and what we had promised the people of British Columbia almost three years ago, and that came to pass. We have followed the law. We are doing what we said we would do. For me this is absolutely the crucible of what this government is about. I, therefore, am extremely pleased and thankful that we have been able to get where we have come.

There are a lot of people who are being told we've gone through the last two and a half years of tough times and difficult adjustments in British Columbia because we cut income taxes, because we cut business taxes. I think that is the most misleading argument I've heard in a long time, but it continues to have currency. It needs to be restated over and over again that in June of 2001, when this government took office…. This isn't the government speaking. This is a group of independent financial analysts who looked at the books, who took the public accounts of British Columbia. They didn't get paid for their work. They worked for a month or six weeks, and they identified what I think in our heart of hearts we all knew — that there was a structural deficit in the public accounts of this province. What we didn't know and what really came as a surprise was the depth of the deficit.

I can't help but acknowledge, because the auditor general has said so, that there was a surplus in the finances of this province around the turn of the decade. We also have to recognize how that occurred. It occurred because we were at the fortunate end of some very high energy prices, particularly electricity in California and natural gas in North America, that created revenue streams for British Columbia that were unsustainable. Even the former Finance minister of the last sorry government, Mr. Ramsey, acknowledged that the revenue streams could not carry on the way they were. So a $4 billion structural deficit was the legacy of the decade of despair and demolition that we have now begun to turn around.

A $4 billion deficit is a lot of money, and it has taken an awful lot of hard work on behalf of every one of us in this government, on the government side, to work with our communities, with people, to make sure we can actually turn that around and start to produce the kind of economic strength in this province which we should have, which we did have and which will enable us never to have to look at those kinds of numbers again.

The New Democratic Party sugar-coats this. They say this wasn't a structural deficit. Their math is always suspect. Even earlier today we heard math, and I don't know where it comes from. They want us to forget the decade of decline. They ask if people are better off today than they were three years ago. I think the answer to that is pretty clear, and I'll talk about it a little later. What I see in my community is a whole bunch of signs that show that not only are people better off, but they actually know they are, and they're moving forward in their economic lives in a way that is very, very encouraging.

Last year when I spoke to the budget, anticipating the good news that we've heard this week, I accused the opposition members of being mistresses of myth. I still think they are. I still don't think they get it. As the last speaker indicated, the Carole James budget that was published a week ago shows that the new leader of the NDP still doesn't get it. They have learned nothing. They're like the Bourbons. They still don't understand how public finances must work and how strength in the economy is the fundamental basis for all that we value as a society and that we expect government to provide to us.

To me, the NDP budget — the Carole James budget — apart from all the scary things that are in there…. You know, it's like a Halloween movie that doesn't have a happy ending. That budget just confirms the New Democratic Party thinks that individuals, investors, families and businesses large and small in British Columbia are simply cash cows — cash cows for their great schemes, including public investment banks.

I know there is cynicism across Canada about our banking system, but at least we don't have bank failures in this country in the commercial banking system. At least, we haven't had one for a long time. We have structures and management systems that protect our money. Would you invest in a public investment bank set up by the New Democratic Party in British Columbia? I suspect you wouldn't. I know I wouldn't, because I would like to retire with a few assets. If there's one sure way of frittering away your assets, it's to put them in a socialist bank.

The NDP dried up the cash cow that was British Columbia once before. They did it through the 1990s. The evidence is clear. We all can remember what happened. I, like the Minister of Provincial Revenue, am happy that the people of British Columbia face a pretty

clear choice. The choice is stark and it's obvious. The choice is between a government that sees an economic plan, that has put forward an economic plan, that has delivered an economic plan, a budget and a fiscal framework that is sustainable…. It's going to lead British Columbia forward and lead us to progress and capture what we can be as a province of Canada and as a society.

The choice, the alternative as set out in the Carole James budget and building on the kind of approach that they showed us in spades through the 1990s, is simply to go back to the future — going back to an age where your taxes were high, where the government decided what you should do with your money and where the government decided how you should live your lives.

To me, this is a very, very clear choice that is being presented to the people of British Columbia. The choice is about growth. It's about personal responsibility and taking personal responsibility for what you do. It's about a responsible government. Every member of this caucus knows what responsibility means and is prepared to accept it and live it day in and day out.

It also involves respect for the taxpayers' money, the taxpayers' dollars. They're the elements of what this government represents and what this administration stands for and is building upon. We can reward hard work, or the alternative is to penalize initiative. It's pervasive state intervention. It's crippling taxes, and I mean crippling taxes. Can you foresee, can you look at your bank account — imagine your bank account? Imagine the bank account of the working family making perhaps $40,000, $50,000 or $60,000 a year in this province. Imagine the tax load that Carole James and the NDP are planning to impose on those working families in British Columbia. You think that's not crippling? Well, it's even worse when you look at what they would be planning to do with small and large businesses.

Here we are, Mr. Speaker — the growth leader in Canada in jobs. You know, we've reversed what was happening. In 2001 we were last. We're first. Why is that? It's because we have a plan. We do what we say we are going to do. We are going to balance the budget in 2004-05. That is creating confidence.

The number of small businesses in this province is increasing rapidly, and it's small businesses, as we all know, that create the majority of the jobs in our society. With the crippling taxes that the Carole James NDP budget would introduce into the corporate sector, I suspect — I know; I'm very confident — that small businesses would not invest in British Columbia. They would be driven, along with their potential employees, along with people who would purchase their goods and services…. The Trans-Canada Highway between here and Calgary…. The Minister of Transportation would have to budget a huge amount of money because there are going to be ruts in that road so deep that you won't even be able to get there, if the NDP budget were to become the law of this land.

All of that — the promise of ruin of our province versus an agenda which sees growth, which sees people being able to make choices about their future — is bringing our young people back to British Columbia from Alberta and Ontario and elsewhere. The choice is clear. I think the budget presented the other day is simply a confirmation of the choices put side by side with the alternative from Carole James and the NDP.

I want to talk a little bit about the impact of the '04-05 budget and the fiscal plan in my part of the province. You know, we all talk about the '04-05 budget. One of the things that's important about our financial planning in this government is that we're not just going year to year, lurching around, deciding what we should do year by year, but we actually set out a plan. We started setting out three-year plans in 2001.

The fact that we have a fiscal plan, that people can see the direction we're going, to me is a hugely important feature of our fiscal planning. It's not talked about much, but you know, anybody in the province can pick up this book and can say: "Oh, what does the government have planned in the area I'm interested in three years down the road?" We can start to have — and we have started to have, in my view — a pretty healthy debate about how budgets will unfold, how programs will unfold.

It is much more healthy, much more open and much more helpful to decision-making and policy than the system that was in place before. It's one more reform that this government has introduced to make us as politicians, as servants of the public, accountable to those people who elect us.

To go back to my local area and what I think are the impacts of this budget and the direction that we are proceeding in this province, what is it doing? Well, as you know, my riding is Nanaimo. It's not just part of the city of Nanaimo and some of its neighbourhood areas on Vancouver Island. It also includes a few of the Gulf Islands, the biggest being Gabriola Island. I have to say that in my riding, there is a confidence. The city of Nanaimo is confident in its own future. The people who live on Gabriola Island are confident in their own future. They are debating right now whether or not they want to become a second island municipality, modelled on the way Bowen Island went. I don't know whether that decision will be pro or con, but the fact that people are there, thinking about their future, expressing confidence, buying real estate, I think is a measure of development that I find very encouraging.

I talk about real estate. Like the rest of the province there's a huge amount of confidence in real estate in the Nanaimo region. We had a 24 percent increase in housing starts in 2003. We have reports of people moving into the area from right across Canada and parts of the United States. I happened to see a welcome wagon piece in the Gabriola Sounder, which is one of the weekly newspapers on the island. It mentioned names of people who had come to live on Gabriola Island, who had bought property there over the summer — the hottest real estate summer in Gabriola's history. These people…. I think only two of them actually relo-

cated from Canada. The rest were from other parts of the world. If that isn't confidence in what we are doing in British Columbia — bringing new people, new blood, new ideas — I don't know what is.

There's confidence in Nanaimo in the investment community. Just as one example of that, I want to cite an initiative that I've spoken about in the House before. Some three years ago, when we got elected, there were some investors who looked at the opportunity of bringing in some competition to B.C. Ferries for passengers. We now have, as of late last fall, a ferry operation, a high-speed catamaran, that takes passengers from downtown Nanaimo to the SeaBus terminal in Vancouver in 80 minutes.

It is making a difference. The service has had some reliability problems, some startup teething problems, but like the service that preceded it ten years ago, it is having an impact. People are starting to look at Nanaimo as a place where you can actually live, where you can get to the lower mainland when you need it. You can get right into downtown Vancouver to do your shopping. It's investments like this and confidence people have in regions like mine that are going to move this province forward, bring more people here, and more goods and services. I think it's an excellent indication of the kind of investment we're seeing outside of the very obvious and very welcome real estate boom.

Other members have talked about our education system. I want to say that in Nanaimo, I am very confident — and I know other people are confident — about education. I know that in the K-to-12 system, we have had enormous problems coming to grips with budgets. We all know about this in this House, how difficult decisions can be. My school district in Nanaimo has had a lot of debates, and they have taken some tough decisions. I know that the school district — and, I think, the parent advisory council — is confident about the future. They're confident about the reforms we've brought into education so that the parents and volunteers can actually go and have a say in how the school district manages the education system in K-to-12.

I think it's worthy of note, for all those who have talked about the budget cuts, that the increase this government has provided to every student in the K-to-12 system since we took office is over $500 per student, at a time when enrolment in the K-to-12 system is in decline. I think that is something we should be recognizing. Of course there are problems. There are always going to be problems in resource allocation, but this is not something we should be shying away from. We are increasing resources in education. We should be proud of it.

In the post-secondary system, of course, we have Malaspina University College, which I think is one of the primary post-secondary institutions in the province. It is not the biggest, by any means, but it certainly is an institution which has achieved enormous progress in the last ten years or so. At the moment Malaspina University College is raising money in the community to expand its library. Construction has started and is going on. In the last couple of years Malaspina University College has built a trades training building. They built a new teaching building, where the nursing program is taking place. There is a new international building. That's important because Malaspina University College attracts literally hundreds of foreign students to British Columbia and to Nanaimo every year. In fact, Malaspina University College has the highest percentage of private funding of any post-secondary institution in the province. That is pretty important to me, and it is another sign of how confident people are in our community. Malaspina is growing; it's expanding. It's a very important part of our future. I look forward to working with them to keep going in the way they've been going.

We've got confidence in sports, in arts and in culture. You know, life isn't just about money. It's not just about rushing from one place to another. Life is about being well rounded. We had a debate in this chamber just a few days ago about the value of team sports. Well, you know, in Nanaimo we are very fortunate. We've got an excellent B.C. Hockey League team. We've got schools that are famous around the province for what they do on the sports field. We have an arts community which is extremely active. We have a new gallery in Nanaimo which is doing extremely well. We have a cultural community, including Vancouver Island Symphony, which is making Nanaimo a place that is attracting people because those kinds of cultural and sports facilities exist.

We have new owners of our BCHL hockey team, which is, again, a sign of confidence in our community — a confidence that is grounded in the work this government and this Minister of Finance have done to establish B.C. as a place where the economy can grow — and we have a solid foundation for that.

Even in recent years where tourism has been problematic…. In Nanaimo last year the numbers were up. It is an interesting phenomenon. We have the fortune in Nanaimo of being close enough to the Pacific Northwest, to the United States, and the so-called rubber-tire traffic in Nanaimo is up. People who were planning to stay for one night, I'm told by hoteliers in town, were actually staying for two and three nights because we have an awful lot to offer, and we have an awful lot of potential to develop in that area.

The business community is expressing confidence in this government and in our community. The Greater Nanaimo Chamber of Commerce was voted by its peers the Chamber of the Year in 2002-03. We have an airport which is in a position where it needs some…. It's got a management plan; it's got a development plan that is going to help make sure that we have in our region an airport that can service our needs.

The member for Nanaimo-Parksville this morning talked about the Nanaimo convention centre, and it is long-awaited. It has had a couple of hiccups, but it is going to happen. We have the property. We have the people. We have the location. We have all the market-

ing advantages to make Nanaimo into a very successful conference centre for conferences up to a thousand or 1,200 people.

We have a harbour authority in Nanaimo, which is a federal-provincial body which manages the Nanaimo harbour, that has expressed huge confidence in the future of our area, responding to what this government is doing and how it is creating economic growth and prosperity.

I have talked about this a number of times in this House before, and it's very relevant to this budget. We have a community which is determined to deal with social issues — social issues that predated this government and that will probably post-date it, but social issues which I think without question have come to the fore because of some of the tough decisions this government has had to make to deal with that structural $4 billion deficit.

I have a huge amount of pride for the volunteer and not-for-profit community in Nanaimo. I can't say enough about what they do, and I can't say enough about how they have responded to the challenges that have been placed in their way. Those organizations — and there are many of them and many hundreds and thousands of people who spend their time trying to help people who are less fortunate — are now working with the city of Nanaimo. I give credit to the city on that, because there is confidence in our community. There is confidence enough to face up to the issues that are there in our community and to try and work together to do something about it.

People in the not-for-profit and volunteer community are pleased that we are working to try and get rid of the underpinnings of the culture of entitlement which, frankly, has been something that's been there throughout my adult life — you know: "If you can't make it, well, don't worry. The government will do it for you." Clearly, that kind of an approach is not one that we in this government want to carry on. We think, and I certainly believe, that people who need help must get help. We must focus on those who need the help the most, but I think the days when the culture of entitlement was part of our society…. I'm pleased to see we are moving away from that, and we're moving away from it with the assistance of people who are offering their time to help people in partnership with us.

I'm confident because we've seen a significant reduction in unemployment in my region. Nanaimo has had some tough times with unemployment over the years. In the last few months we have moved down from an unemployment rate of over 12 percent to an unemployment rate of under 9 percent. That starts to make a huge difference. Frankly, unemployment numbers can come and go. They go up and they go down and to some extent depend on how many people are working in the forest industry this month versus next.

You know, there's another good sign. We have a forestry industry in coastal British Columbia that is starting to show signs of coming awake from a slumber which I think has been going on for 25 or 30 years. It's 25 or 30 years that we have seen the evidence of an industry in serious trouble — low rates of return on equity, an aging workforce, an aging capital structure. We're starting to see some important investments in the coastal forest industry, and my community is very much a part of the coastal forest industry. Despite the fact that most of the industry exists in parts of the region which are not obvious from everybody's front door, they exist at Duke Point and in the south end of Nanaimo. There are extremely important forestry industry facilities in my town. There's a major pulp mill. There are four major wood processing facilities, many smaller ones, a whole bunch of forestry contractors, a major forest equipment manufacturer, consultants and so on — all part of a business that has been seeing tough times.

The reforms that this government has brought into forestry are going to have and are having an important impact. We're investing more money in the 2004-05 budget in forestry to help drive this industry and help that industry move this province forward as it can and as it once did.

We have a lot of confidence in our community in health care as well. I say this in spite of the fact that just a few short weeks ago, we went through a very difficult and troubling dispute with our emergency room doctors in Nanaimo. I'm pleased that situation has been fixed. I think that in the end, credit goes to all parties involved in that dispute, who were able to come to the table for the good of society and for patients.

Now that the situation is fixed, we can again start to look forward to what is going on in the central Island region, particularly at Nanaimo Regional General Hospital, where there is a $29 million investment going on today in a new surgical suite. By the way, that surgical suite was promised 18 years ago. There is now a shovel in the ground, and there are builders actually working to put that into reality. That means there are going to be modern surgical suites in Nanaimo Regional General Hospital. That means we are going to be able to attract new specialists.

I've always asked the question: how come we have a problem attracting doctors and specialists to Nanaimo? It's a place that people are, frankly, flocking to. I include neighbouring areas. Everywhere from Maple Bay to Qualicum is part of the region in which I live and which is serviced by this hospital. How come we can't get more doctors here?

The fact was that for 18 years new surgical suites had been promised, but people won't come to where there are old facilities. That's changing. That is going to be reflected in new services in Nanaimo — a hospital facility that will be a referral facility. The chronic underfunding that plagued the central Vancouver Island area forever in health care services has been, thanks to the efforts of the Minister of Health Services, if not completely eliminated…. We've gone a long, long way to eliminating it and making sure that in the Nanaimo area we have the kind of funding for health care that is reflective of the population and the age mix that we have.

I think, as well, that the aboriginal community in my part of the world is expressing confidence. I'm obviously anxious about the decision that the Snuneymuxw first nation are going to make with respect to the agreement-in-principle that was initialled some 15 months ago. I don't know what their decision will be, and I don't intend to coax them one way or another, but I do think that irrespective of that, there is a lot of work going on in my first nation, the Snuneymuxw first nation, that gives me encouragement that we are going to be able to move forward.

They are actively working on shellfish development programs with assistance from Malaspina University College, which, by the way — I didn't mention this — has an excellent and new Centre for Shellfish Research. That's one of the specialties that we have in our area. The Snuneymuxw are interested in and have tried to become involved in some property development ideas in Nanaimo. That will eventually happen. The leadership of the aboriginal community is strong, and it's determined. I enjoy working with them to make sure that the benefits of what we are doing in this government are indeed made available and become available to people of all racial backgrounds in our society.

Nanaimo is a growing industrial and service centre. As I said before, that growth and development is going to be greatly assisted by what's going on in the coastal forest industry. Of course, it is largely a result of all the confidence that we have in the various sectors of the community, which I've tried to describe.

As well, we are, in our community, very well located to be a community that benefits from oil and gas development in British Columbia — whether it's offshore or on land. We have in Nanaimo a service industry, a manufacturing sector, lawyers, accountants — all the people that, with a business, you need to deal with. I'm sure that they, like me, will be very pleased to hear that the recent report from the federal government gives us, essentially, hope that we can move forward with the oil and gas initiative in a relatively short period of time.

Our community is changing. I've talked about how many people are moving to Nanaimo and Gabriola. That rapid population growth brings benefits and challenges. New residents tend to be older, frankly. They have more disposable income, and real estate prices are going up, but it does mean that some of the pressures on our health care system in our region are going to increase.

When we're looking at this budget, we have to look at how this budget and the fiscal plan set the framework for us to be able to deal with these issues. That, to me, is perhaps one of the more important features of how our fiscal plan is working. We don't have to lurch from crisis to crisis. We can actually plan out how we're going to try and deal with the demographic challenge we know is coming at us in health care — just as one example of how fiscal planning works.

A balanced budget, which this is, means that we individually and collectively as a society can make choices and address issues like health care and education. A balanced budget and the fiscal plan that accompanies it mean fiscal prudence. It means fiscal discipline. You know, government finance is no different from a household. When a mom has a kid and a kid says, "Mom, I need a new pair of running shoes," mom sometimes has to say to that child, "You know, I can't afford to buy them this week," or "I can't afford to buy them this month, but we've got a plan. We'll carry on, and we will get you those shoes eventually."

British Columbia is moving to that point in its future where the results of what we've done are going to have huge benefits, and I look forward to working with British Columbians to make sure that happens.

B. Locke: It is my privilege to rise in response to the 2004-05 budget on behalf of my riding and the constituents in Surrey–Green Timbers. I want to congratulate the Premier and the Minister of Finance for a job well done — a job that required vision and long-term planning, a job that often meant making the difficult decisions, and a job that took incredible perseverance because there was always an easy way out.

But you know, British Columbians didn't want the easy way out. As the Chair of the Finance and Government Services Committee, I travelled the province from Dawson Creek to Prince Rupert, from Cranbrook to Surrey and many points in between. We talked with rural and urban folks, talked to industry and business, and the message was loud and clear from British Columbians everywhere to stay the course. Yes, it isn't easy, and sometimes we don't like it. But we owe it to our province, our children and ourselves to get B.C. back on track, to put our province in a position where we can make choices — positive choices for the future of this province for all British Columbians.

There is no doubt that belt-tightening is difficult. Given the additional pressures of the past few years like 9/11, fires, floods, pine beetle, SARS, the meltdown of the dot-coms and the U.S. protectionism affecting our number one industry of forestry, some said it couldn't be done. Some said: "Let's take that easy way out." The Premier and the minister resisted and did exactly what they and this government said we were going to do — balance the budget. Getting our fiscal house in order and bringing B.C. back as the number one province in the country was why I ran for political office in the first place. Deficits and debts are a legacy that will haunt our youth if we don't take charge of it. I want the future for my children and for all B.C. children to be a bright one.

Rising from the squandered nineties is a strong, positive British Columbia with an economy ready to regain our status as the envy of the country. As a mom, I want to thank the Premier and the Minister of Finance for their leadership. As of now, the future looks much brighter.

The Premier didn't stop there. This year also saw the most exciting outcome our province has ever seen with the 2010 Olympic and Paralympic Games. While others shared the dream, there is no doubt in my mind

it was the vision and drive of the Premier that pushed our bid over the top. Talk to kids and adults in sport. They share the dream every time they step onto the ice, every time they strap on their skis or boards and every time they do just about any sport.

I'm a ringette and hockey mom. I talk to kids every day, and they are excited not just about being an athlete but about being a spectator or about being a volunteer — simply about being part of the energy and enthusiasm that the games will bring to our province in the run-up and during the games.

The Olympics will also be about prosperity that will follow for our province well after the games. Imagine three billion people all over the world watching their TVs and seeing this amazing province, this jewel we all call home.

With all those eyes on our province, there is no doubt that showcasing B.C. before the world will generate new revenue for many industries well beyond 2010. Hospitality, real estate, manufacturing, construction, restaurants, resorts and recreation are all excited about the future. Thank you for giving all of us — most importantly, the children and the athletes — a dream come true right here at home. Add to the excitement winning the bid to host the 2006 World Junior Hockey tournament. Again, thanks to the Premier for going above and beyond, for pulling out all the stops and getting these games not only for Vancouver but also for Kamloops and Kelowna. I know Surrey will also see players at our arenas practising, and we have great hopes that maybe one of our young hockey stars will be part of the team representing Canada.

In 2006 we'll also see the world Little League tournament held right in my home community of Surrey. Thousands of talented kids will hit the diamonds hoping to bring home the gold to their country — all of this adding to the vibrancy and economy of our community. The B.C. Winter Games this weekend in Port Alberni may just be where one of those athletes starts their incredible journey. Certainly, there will be many dreams by young athletes about 2006 and 2010.

I want to talk about some other aspects of this budget too. This budget and the ones before it are all part of a long-term plan — a plan that will see B.C. prosper and send signals around the globe that this province is open for business. Be it the 25 percent tax decrease when we got into office or the removal of the corporate capital tax, the purpose and direction are ones that say we want your business. We have lots to offer. Bring your business and your jobs to B.C.

That signal is resonating. The old, strong British Columbia is back. Gone is the decade of despair. Gone are government interference, burdensome taxation and ridiculous overregulation that discouraged businesses and sent them elsewhere.

We see that business energy increasing every day. Business optimism is up, and new businesses are looking at B.C. quite differently. In my riding alone we see an increase in economic optimism, with new businesses like J.P. Morgan Chase opening up, bringing over 800 jobs to city centre. A high-powered company like J.P. Morgan moving into town will boost Surrey's reputation in the investment world.

Surrey's housing is booming, with housing starts up more than 13 percent over the previous year. Today our city stands at over 390,000 people, and we have lots of room to grow and develop. It is anticipated that within the next ten years Surrey's population will overtake Vancouver's and that we will be the largest city in the province. That population is young. It's families, it's multicultural, and it's very ambitious. This budget addresses many of those aspects of life in Surrey.

Thanks to the Premier, we now have a Minister of State for Immigration and Multicultural Services. Integrating and welcoming new British Columbians is positive for our city and good for business too.

Last November, I was privileged to be a part of the India trade mission. The synergies between B.C. and India, especially the Punjab, are extensive and the opportunities for business tremendous. We are already building steel houses in Surrey to meet the housing needs in India, and with over 1.2 billion people in India looking for housing, this business is sure to grow.

There are so many other opportunities for environmental, agricultural and educational businesses to be further nurtured and developed. This new ministry will explore and encourage those relationships for both countries. I know this is the passion of the new minister, and we will see this opportunity flourish not only in our relationship with India but for all countries and new immigrants looking to settle in B.C.

While some may not consider social infrastructure as part of economic development, there are strong ties between a sensible, responsive social infrastructure and business growth in a community. Good social infrastructure is responsive to the needs of all citizens in a community and is part of the encouragement of business to locate in an area of the city. The challenge for government is to respond to that need in a sensitive manner that respects the demographic and growth in the community.

Certainly in my own community of Surrey that is a significant challenge. Our city has grown exponentially, and with that growth comes many needs for services to enhance the quality of life in our community. Those issues include housing, hospitals, detox and recovery beds, and services for families, children and youth as well as K-to-12 and post-secondary. Services that lend a hand to people so they can be a positive contributor to the province are critical — services that help those who genuinely need help.

While there are partnerships between levels of government, there are also significant opportunities for the private sector's involvement in the social safety net on a P3 basis. The Abbotsford hospital is a good example of that, but there are other opportunities in the areas of affordable housing for families and seniors, and per-

haps even detox. Those projects provide a win-win-win to the province, to the business and, most importantly, to the people, families and seniors living in their new homes.

Non-profits are already taking this initiative. This year I was privileged to join in the celebration of the opening of Salamat house in Surrey, a development for families that was made possible by the Ismaili community, to the delight of 28 new families. Not only did this project provide good housing, but it provided jobs and a brighter future for over 100 people, mostly children, who are now living in this lovely little townhouse development.

I want to personally thank the Premier for recognizing that growth in Surrey needs attention. Thank you for recent transportation improvements and for other critical infrastructure that is contributing to the positive development of our city.

I must acknowledge that it is particularly surprising to me that the previous government chose to ignore and let down the people of Surrey by not addressing the human caring and safety needs in our community — needs that affect the lives of every single citizen in Surrey, be they troubled or healthy; needs that have always been growing in our city to the point that we now have the highest number of homeless people recorded in the entire province.

The previous government obfuscated their responsibility to my community. Thank you to the Premier for caring and for recognizing that Surrey has to respond to those needs in a local manner. This budget speaks to people with multiple barriers to employment to ensure they get the support they need by increasing the ministry's budgets by $80 million — good news for those who may just need a little extra help overcoming challenges.

Surrey is a very young community. In fact, our school district is the largest in the province by over 3,000 children, so you can imagine that education is important to our community. This budget addresses the K-to-12 system in a very significant way by boosting the overall funding by $313 million over three years. Add to that the fact that our district is growing and the out-of-the-box thinking of our very progressive school board…. The impact on our schools in the coming years will be positive and significant.

Our commitment to post-secondary will also be a boon to our community. Our youth are looking for post-secondary opportunities, and this budget addresses that issue with additional funding that will provide access — in fact, 12,000 new spaces by 2007, an ambitious achievement, but one that was so necessary because the previous government chose to play politics with post-secondary students.

This government's actions and commitment are needed by students and businesses alike, and Surrey students will be the beneficiaries.

In closing, I am so proud to be a part of a government that takes its role as the keeper of the public purse so seriously. This budget is a turning point for British Columbia. The opportunity for everyone looks brighter as of now.

P. Wong: It is an honour to rise in this House to respond to the Speech from the Throne and the Minister of Finance's budget speech.

First, I would like to congratulate my hon. colleagues the Minister of Finance and the Premier for delivering this province's first balanced budget in the last 15 years. Like all of my colleagues in this House and British Columbians across this great province, I was delighted that the government delivered on its election promise and fiscal commitment to all British Columbians, including future generations, with a balanced budget.

As a chartered accountant, I'm pleased that the government has adopted the practice of GAAP, or generally accepted accounting principles. By utilizing GAAP, the government produces budgets and support legislation that are truly accountable and transparent. Users of this information and the public at large will find this information more understandable, cost-effective, reliable and timely.

Becoming GAAP-compliant, as outlined in the Budget Transparency and Accountability Act passed in 2001, is another example of how this government has consistently acted upon its commitment to all citizens and residents of our great province. Also, as an accountant and member of the Select Standing Committee on Public Accounts, I would like to take this opportunity to commend the work of Mr. Wayne Strelioff, the auditor general; Arn van Iersel, the comptroller general; and their staff, who have worked hard to implement these best practices in financial reporting.

We have a balanced budget. Our province's financial strength is sustainable. According to the report titled Indicators of Government Financial Condition published by the Canadian Institute of Chartered Accountants, the measurement of sustainability is demonstrated by the ability of a government to maintain existing programs and meet existing creditor requirements without increasing the debt burden on the economy. In other words, can the government continue to raise revenue in order to spend the way it does now? I believe it can.

The Finance minister's revenue projects are conservative compared to those published by the private sector. Additionally, the Finance minister has shown forethought and advanced planning by including contingency funds that will help mitigate against any unforeseen natural or economic disasters similar to the many that this province endured in 2003.

One indicator of sustainability for government is the comparison between net liabilities and the size of the provincial economy. That is the gross domestic product or GDP. I'm pleased to see that B.C. has a stable net-liability-to-GDP ratio that's around 20 percent. This is a key figure that indicates the province is able to maintain existing programs and reflects the health of the provincial economy. This is only possible through creating efficiencies in government spending, introducing economic measures that stimulate our economy and reducing some of the money-sucking holes within

government, such as unnecessary regulations. This government has already eliminated over 90,000 such red-tape measures.

A balanced budget has always been part of our vision for prudent public policy. Today the Finance minister has tabled a balanced budget with a $100 million surplus. This is clear evidence that our plan is working.

The independent Economic Forecast Council is forecasting B.C.'s economic growth to rise by 2.8 percent in 2004 and 3.1 percent thereafter. Our commitment to stay the course and ensure competitive tax rates, reduce the regulatory burden and balance the budget will ensure a thriving and diversified B.C. economy.

The Finance minister said there would be no more cuts in all ministries in the government. This is good news. In fact, as a result of being on track and on budget, the government is able to direct new money back into priority programs and services for British Columbians.

One of the top priorities in my riding is the urgent and immediate need of a hot-lunch program for the poor school kids in Vancouver-Kensington. I have personal experience in a poor family. I have learned that most hungry school kids do not learn well in school. Many parents in Vancouver-Kensington have told me they need food for their children. They would appreciate it tremendously if the Finance minister could give top priority to reinstating the inner-city school hot-lunch program. To help high school students, I will continue to garner more financial assistance and scholarships for the needy students of Sir Charles Tupper Secondary and John Oliver Secondary.

Comparing the government's budget with that suggested by the Canadian Centre for Policy Alternatives, I'm further reassured that the B.C. Liberal government is on the right track. I was dismayed at reading the CCPA budget, which depicts a high degree of backward movement in this progressing world, by which I mean the new Internet era.

The so-called Solutions Budget suggested setting up a public investment bank to stimulate private sector investment. The NDP government already tried this with the highly unsuccessful example of the Four Corners bank. That has lost over $6 million of taxpayers' money. To repeat the same error is an absolute waste of the taxpayers' hard-earned dollars.

The government is presently on the right track to attract more private sector investment. The recent $1 billion investment in B.C. Rail by Canadian National Railway is a good example.

I was surprised to find that the Solutions Budget proposes to increase the gas tax by 5 cents per litre. That is a 150 percent increase over the 2-cent fuel tax announced by the government several months ago.

Worse still, the NDP 's Solutions Budget penalizes hard-working people with low income. If one earns just more than $20,000 a year, the income tax rate would increase by 26.4 percent. One who earns more than $30,000 a year will see a tax rate hike of 25 percent. For the top marginal tax bracket, a tax rate increase of 74.6 percent is proposed. This is alarmingly high.

While reading this document, I had to ask myself if this is the NDP way to drive prospective investors and other high-income earners, such as medical specialists and talents, to the United States. It is an ill-advised and irresponsible approach that would penalize all British Columbians, quite different from the current Liberal government budget. The proposed Solutions Budget would balance in the year of 2009-10 — six years away. During that time British Columbians could expect to add close to $20 billion more in debt for our grandchildren to pay. I do not believe the NDP budget would support any British Columbian, let alone those who are disadvantaged or marginalized — those who the NDP purport to represent.

With respect to providing real and lasting opportunities to poor people, I recall a lesson from one of my teachers that has always stayed in my mind: "To all of you students, I am not giving you any fish, but I am teaching you how to fish. This will benefit you for the rest of your life." I was pleased to hear that the current Liberal budget has put aside $300 million employment program money to retrain those in need of new and enhanced skills and people who want to improve their life and their future without constantly relying on welfare. By learning to fish, these workers will significantly improve their lives. While acting with compassion and ensuring that all citizens are treated with dignity, it is our responsibility to provide a hand up, not a handout.

Both budget and throne speeches rightly discussed British Columbia's economic development. We are all aware that the year 2003 presented some difficult challenges and tried the determination of all British Columbians. Like the rest of the world, we felt the impact of 9/11 and its global economic consequences. Closer to home, industries and communities have been ravaged by health concerns such as mad cow disease and SARS. Natural disasters such as floods, drought and forest fires have wreaked havoc on communities.

I do not need to dwell on those events, but I think the response of British Columbians and the government in the face of those crises deserves mention. Communities in the heartlands where I witnessed firsthand the forest fire devastation have begun to rebuild. Their confidence is up, and the commitment to and the passion for this province are revitalized. During the critical period of the forest fire over 9,000 volunteer firefighters risked life and limb to save homes, communities and precious natural resources. Hundreds of volunteers journeyed to the devastated areas to help out — cooking, clothing and consoling families.

I was honoured to co-chair in a fundraising campaign, the We Love B.C. team. The Chinese community in the lower mainland raised more than $310,000 for the North Thompson Relief Fund through a series of events such as dinners, T-shirt sales and including personal donations.

What truly amazed and touched me was the compassion that British Columbians demonstrated and the strength and resilience of the fire victims themselves. Travelling to Kamloops and meeting with residents affected by the tragedy, I was struck by how much hope and optimism they demonstrated. This can-do attitude reminds one of the original pioneering spirit shared by the first British Columbians and the pride, drive and energy seen in today's citizens.

One of the things that I would like to see happen today and into the future is having this spirit and compassion applied continually within our society, our communities and our neighbourhoods. It is wonderful when people step up in the face of tragedy, but each and every day children, families and individuals are disadvantaged, disabled and marginalized. Many live in environments adverse to economic growth, personal development or long-term health. I believe we have the ability to work together as a people to help each other and to provide love and warmth where it may be lacking.

In order for the government to provide more service to those less well-off in our society, we need to generate revenue from a larger base of taxpayers. People moving to B.C., people returning to work and people earning more money will all help to do this. We must remember that all British Columbians — through personal income tax, property tax and sales tax — generate government revenue. That is why we need a prudent government to responsibly manage our public purse, to ensure that the services essential to our compassionate and civil society are maintained and that our hard-earned tax dollars are invested wisely and well.

Asia. Having seen the potential of economic development opportunities in Asia, the Premier has twice travelled to the region to promote trade. B.C. is Canada's gateway to Asia and will benefit the most from investment in this relationship.

Not even a decade ago China proudly emerged as the manufacturing hub of the world. It has now become the largest global buyer of copper, coal, pulp and other resources that our province can supply. A large number of families in China once below the poverty line have now achieved middle-income status.

It is not surprising that close to 600,000 self-supporting or government-funded Chinese students have gone abroad to learn English. Many of those students study in Vancouver. I quote Mr. Darcy Rezac, managing director of the Vancouver Board of Trade: "The recent wave of Chinese immigration to Vancouver has resulted in good and recent connections being made between here and China. That should mean growing prosperity for the city." However, we still need to see more signs of that investment.

We have a vibrant Chinese community in the lower mainland and throughout the province. This community contributes greatly to the multicultural fabric of British Columbia and Canada but also has a significant impact on the local economy. Networks of people, business and services provided by the Chinese are a huge component of the long-term economic sustainability in British Columbia. We must work harder to encourage more direct Chinese investment in B.C. All British Columbians will reap the benefits. I have high hopes for the recently appointed Minister of Small Business and Economic Development to pursue this connection and bring not just prosperity but culture and technology to B.C. China has contributed greatly to human civilization for thousands of years, from gunpowder to acupuncture and even a SARS vaccine. China's impact on global society is seen around the world. Why not encourage this innovation right here in our own back yard?

I would like to talk about the riding of Vancouver-Kensington. Like my hon. colleagues in this House, I see the efforts of British Columbians to make investments in our community and the province at large. I see small and medium-sized businesses contribute greatly to the economy and create new jobs. I see citizens developing and implementing events, networks and other initiatives aimed at strengthening our society.

Take, for example, the Better Community Partnership Outreach Network, or the BCPON, created by me together with Johnny Fong and Bill Lim. This innovative organization brokers relationships between individuals and organizational donors and recipients. Already the BCPON has facilitated the donations to groups in Vancouver-Kensington, including the South Vancouver community policing centre, Sir Charles Tupper Secondary School, the Riley Park group and many more.

The South Vancouver community policing centre itself has become an instrumental part of our community. Const. Mark Jarvie, Dr. Tony Gill and Andrien Balaz have attended many community meetings and have made themselves available to answer questions and concerns of Vancouver-Kensington residents. Tom Avendano and Eleanor Guerrero-Campbell of the Multicultural Helping House Society work day in and day out to provide a host of services for new immigrants to smoothly integrate within society.

The Victoria Drive Business Association, under the direction of Fancy Tam, Sam Chan, Steve Yeun, Taryna Ho and Elena Agala, are working with small and medium-sized businesses in the riding to stimulate business along Victoria Drive corridor and encourage people to shop and consume close to home and invest in their own community. Steve Gardner of Little Mountain Place, Paul Calderhead of Kensington Community Centre, Joel Bronstein and Igrid Steenhuisen of Little Mountain Neighbourhood House and their staff are providing much-needed care and accommodation to children, parents, families and seniors.

Peter Wohlwend, Theresa and Harvey McAuley, Dennis St. Aubin and Marcia Choi of Dickens Community Group are great community volunteers in helping revitalize the neighbourhood and fight crime in the community. These British Columbians are but a few examples of all those who are making real and lasting

contributions to our province and who are strengthening both the economy and the civil society.

In conclusion, I would again like to congratulate the Finance minister and the Premier for presenting a balanced budget. It is also balanced between economic development and the social well-being of our province. British Columbians are people of great resolve tempered with compassion. We are a people of great ambition and work ethic but firmly committed to civil society. We have the ability to restore our province to the utopia it is. The government has given us the tools and created the climate to do just that. Exciting events are just around the corner. Opportunities are endless, and potential will be achieved. The sky's the limit for British Columbia. I'm grateful and honoured to be along for the ride. Excitement and positive change are in the air, and I'm sure British Columbians across this great province of ours feel it and will capitalize on it.

D. Jarvis: During question period I had some school children in here, and I was unable to introduce them at that point. They are about a dozen children from Windsor House alternate school in North Vancouver. They are here under the auspices of Ms. Fran Brown. Would the House please make them welcome. They're somewhere now in the premises looking at the beautiful building.

Hon. M. Coell: As always, it is a privilege to address the House. Today it is a special honour for me to respond to the budget, a budget that delivers one of our legislative commitments.

Firstly, congratulations to the Premier for his strong leadership and to the Finance minister for presenting a balanced budget, a budget that meets our government's commitment to sound fiscal management. It is an important step towards prosperity, a future with sustainable government programs supporting healthy communities, a province where people want to live, a province where people want to work and a province where investment is attracted and retained.

I would like to acknowledge the hard work by many, many people that went towards achieving this budget. As we know, commitment and discipline are the key to achieving goals. We believe sound fiscal management is a key to a better British Columbia, where the shadows of a decade of decadence are fading. This budget is a catalyst towards a sustainable, prosperous future for all British Columbians, their communities and the province as a whole.

Our province was built on a vision of achievement, and we are working to reclaim that vision for all of us. Now we can say the words "prosperity," "spirit" and "British Columbia" in the same sentence. I'm proud to support the presented budget, and I thank everyone for their hard work and efforts.

I am proud to be the Minister of Community, Aboriginal and Women's Services. The ministry was formed when we took office less than 36 months ago. A ministry has come together from a broad spectrum of areas to offer the broadest range of programs and services of any provincial ministry. With the core review we found ways to more efficiently and effectively deliver programs to be accountable to the taxpayers of British Columbia. We were able to draw on the power of different programs and of staff and expertise coming together.

From the beginning, the importance of partnerships and relationship-building was recognized by my ministry. The core review might have meant rethinking a corporate culture while meeting physical challenges. We met those challenges and continue to follow the ministry's vision of safe and healthy British Columbia — communities where individuals can take responsibility for their futures; where people are self-reliant; where women, seniors, aboriginal people, new British Columbians and new Canadians can realize their fullest potential; where we celebrate cultural diversity; where public safety systems and physical infrastructure ensure a high quality of life for all citizens.

Our work and our successes in this ministry are based on relationships. We work with many partners, stakeholders, communities and other levels of government from across our diverse program areas. Our ministry could be defined by the word "community." We are a ministry where economic realities and social concerns intersect and overlap. We are continuously working towards making practical and positive differences in the day-to-day lives of British Columbians and their communities.

I would like to briefly discuss some of our achievements to show just how wide-ranging our ministry is and how we work with partners and stakeholders. For example, through the Canada–British Columbia Infrastructure Works program nearly $416 million to date has led to 200 projects in communities throughout British Columbia. The majority of these projects — most outside major metro areas — will ensure safe drinking water and wastewater management.

We made and are maintaining a commitment to housing the most vulnerable with the largest amount ever spent on housing in British Columbia history — $153 million. Since June 2001 we have committed funding for over 3,400 units of subsidized housing for our most vulnerable citizens. With effective partnerships between governments, agencies and local government we can offer the maximum value for every taxpayer dollar. For example, with a partnership between B.C. Housing, the health authorities and non-profit and private sectors, we will see 3,500 independent living

The Ministry of Community, Aboriginal and Women's Services is a partner in the Vancouver agreement with the city of Vancouver, the federal government and ourselves to promote and support the economic revitalization and development of Vancouver's downtown east side. By working to improve the material quality of life for area residents, we can help restore the community as a viable and secure one for its residents. The province provided $10 million to support this economic and social revitalization.

As I said earlier, our ministry is where the social and physical initiatives overlap. This is seen within the ministry's aboriginal services. By helping to materially improve the quality of life for aboriginal people and their communities, we have a number of programs that cross economic and social lines. For example, the aboriginal employment partnership initiative brings together the provincial government, the aboriginal community and the employers to identify employment and economic opportunities. To date we have signed agreements with employer partners in the private and public sectors — partners such as London Drugs, the Royal Bank, Royal Roads University and the Vancouver Island health authority.

Also, working in the private sector has meant the expansion of Bladerunners programs. With the commitment of 20 developers, the number of youth participating in a job-training program will increase by 30 percent this year. At-risk youth — many aboriginal — receive on-the-job construction training while gaining important life skills, self-esteem and valuable work experience.

We launched the Aboriginal Youth FIRST and aboriginal excellence programs. These programs devote attention and resources to address challenges faced by aboriginal youth. If young people could become confident and healthy, they could become adults who make valuable contributions to their families and to their communities everywhere in British Columbia.

The Aboriginal Youth FIRST program has both rural and urban components, helping youth develop leadership and life skills. Many participants have already moved to employment in sports recreation and adventure tourism. The aboriginal excellence program is aimed at increasing the number of youth who participate in sport at the elite level and encouraging aboriginal youth in general to be more physically active. With leadership and life skills training, youth can benefit from improved health, greater esteem, improved employment prospects and making communities — their communities — stronger and vibrant.

While looking to the future, it is important to uphold the past. The legacy and tradition of language are a strong part of communities. We are continuing our commitment to FirstVoices, an innovative Internet-based program to preserve aboriginal languages. FirstVoices.ca is a partnership of public and private sectors, supported by the First Citizens Fund. Even while certain fiscal realities are being faced, we continue our commitment to the First Citizens Fund, doubling the fund to $72 million. Interest on this fund supports aboriginal business programs to increase their participation in the provincial economy.

British Columbia's history is one of pioneer spirit and settlement. Immigrants in the past and today contribute to the social and economic fabric of our province, with new and demanding skill sets, entrepreneurial activities and increased cultural diversity. Just as sound fiscal management is the key to a healthy economy, multiculturalism and immigration are integral to shaping our present and our future.

Recently B.C. negotiated a one-year extension to the agreement with Canada on cooperation on immigration. Negotiations are ongoing for a new five-year agreement. The provincial nominee program was expanded to include a regional business category to support the heartlands development. As well, the foreign students component was expanded to include business-related studies. To assist employers in meeting their requirements, nominations for highly skilled workers are up 30 percent, with a target of 250 for 2003-04.

We completed a pilot project under the international qualifications program. Recognizing the difficulties some immigrants face regarding professional recognition, credentials for foreign-trained engineers were completed in a partnership with the Association of Professional Engineers and Geoscientists of B.C., as were the projects related to other occupations in nursing, dental technicians and dietitians. This year also sees $20 million for immigrant settlement and English language programming, delivered through 90 different agencies located throughout British Columbia.

One of the key relationships we have in the ministry is with local governments in British Columbia. In fact, as a former municipal councillor, mayor and CRD chair, I see similar characteristics of local governments and the Ministry of Community, Aboriginal and Women's Services. I understand the importance of working relationships between levels of government. This year we will continue to protect government unconditional grants, a commitment made by the Premier at the annual UBCM conference in 2001.

As mentioned, the Canada-B.C. infrastructure program has meant that 204 water, wastewater management and community projects are underway or will start shortly. We have worked with local governments around B.C., providing advice and support for the Community Charter, which took effect January 1. This is a new era of mutual respect and recognition of respective interests and of intergovernmental dialogue. There are also changes in the area of heritage, with local communities and groups stepping up to the plate.

While we honour the past, we also celebrate the future. July 2, 2003, was a great day for British Columbia and Canada. In 2010 British Columbia will host one of the world's premiere events. We have an opportunity to showcase British Columbia to the world and to

Mr. Speaker, 2010 is also a multi-year economic development opportunity, with benefits for communities and businesses from around the province. The games will create sports legacies for our young people, enhance tourism, increase building and infrastructure activity, and enhance economic development in general throughout our province.

Looking to the future, we've extended operating funding eligibility to 25,000 more child care spaces, replacing inconsistent, piecemeal programs with equitable and fair ones — what child care providers and families were requesting. For the first time ever, child care services across government are consolidated in one ministry, reducing administration, directing more funds to children and getting the best value for the taxpayer's dollar.

While providing support for the most vulnerable families — allowing those with low to moderate incomes to keep their jobs, to get training so they can provide the best support for their families — we have also protected $33 million of funding for transition housing and counselling for women and children through the Stopping the Violence and Children Who Witness Abuse programs. With over 17,000 women and their children using these services last year, it is important to remember that this funding goes directly towards women and children most in need.

I hope that from my description I have given everyone an understanding of what this ministry does and how it's affected by the budget — a ministry where different areas were brought together to share a synergy, building on the strengths and diversity of partnerships both within the ministry and with other provincial ministries and agencies.

As we are a ministry where social factors and economic realities intersect, we have grown to be the community ministry. We have the ability to make practical and positive differences in the day-to-day lives of all British Columbians. While working towards our government's goal — a strong, vibrant economy; a supportive social fabric; healthy and sustainable communities — we are working to rebuild a province where a solid economic and physical foundation will last for generations upon generations. With creativity, energy, innovation and this budget, we will accomplish those goals.

D. Jarvis: Mr. Speaker, thank you for the opportunity to get up and speak to the budget. Once again, I think this is probably my thirteenth budget, although I've only been elected for 12 years. One time, years ago, the NDP had two budgets in one year. They still didn't get it straight, but nevertheless that was way back when.

I guess this is the first budget that I've been able to get up and say that the budget is balanced under the new GAAP method. Although the previous government did have a couple of budgets that they said were balanced, they were always a little bit askew in certain directions and using money that perhaps…. In one case the money they got out of California didn't all show up, and it's still owed. About $300 million is still owed to the B.C. government.

This is truly a balanced budget. It is a budget, as I said, that will stand on its own. It's not playing around with the books. It's under the true accounting principles put out by the province and the accountants' associations. I guess we are going to see better things arise from this balanced budget. That doesn't mean that now we have a balanced budget, we have an open chequebook, unfortunately, and that rampant spending will start again. Spending is going to get better, but it's going to take a little while before we can gain a position where we can look after everything that we have on our wish lists.

We have three and a half years now of restructuring aimed at trying to get to this balanced-budget position, and doing so certainly wasn't an easy task. Over 12,000 government jobs were removed, and the respective ministries cut their operating costs by some 25 percent. You know, no government nor minister nor MLA likes to see this hardship occur, but it was necessary, as we had to show some fiscal prudence in this province and get control of our expenses, our expenditures.

This province's economy was one of the worst in Canada for the last few years, due to previous deficits and rampant spending of money we didn't have over the previous ten years. As a result of frugal spending and management, we are seeing now the valid signs of a recovery. That's towards a full economic recovery.

This budget does emphasize that the major spending over this next year will be to health and education. Spending will be towards improving education and the health services versus salaries, where it has been largely spent in the past years.

In education, for example, I know that a college in my riding, Capilano College, will be more than pleased to see the funding to all the post-secondary institutions in this province, along with the government's pledge to add an additional 25,000 student spaces in the colleges and universities over the next six years. This will also relieve the pressures in my own riding's — and the rest of the province's — high schools. It won't just always be the top percentile that will be able to enter university. That threshold has been lowered somewhat so that more kids that should go to university are able to go to university. It's going to be an advantage to this whole province to have a better-educated society.

This will be a defining moment in B.C. as a result of this balanced budget. Much is being made of the budget, not just because we made a promise to do so back in the year 2001. It signifies that we are now back in business, and the economy is going to be once again, as I said, a healthy economy. We can start now to meet the needs of all British Columbians, be they social or fiscal needs. The result and purpose of a balanced budget is that we will see a surplus. It's not a large sur-

plus this year — in fact, a very small surplus — but it's a start. You have to start somewhere. As someone here mentioned the other day, before you can make two dollars, you have to earn one dollar.

The balanced-budget law, or what they call the Balanced Budget and Ministerial Accountability Act, was put forward in this Legislature in 2001 when we first became government. This bill, in essence, states that the government must not have a deficit after 2004-05 — those estimate years. That was actually only three days ago. On February 17, 2004, it was mandatory that B.C.'s budget be balanced, and it was. This is what we now have, and it will remain balanced for the years to come, as long as we are prudent.

As it has been related before, over the past two years B.C. has created more jobs than any other province across Canada. Over 154,000 jobs were created. This steady performance has resulted from a steady, modest growth of approximately 2 percent to 3 percent. At this time it is 2.8 percent that this budget has predicted we will increase our economy to. It's a conservative figure in relationship to the figures quoted nationally, and even Ontario ran about 3.7 percent.

The Minister of Finance is being conservative — small-c, that is — and we are not going to push ourselves to the point where we have situations that occur such as we have had in these past years. The government's restructuring program realizes there's a lot of uncertainty out there. When you consider the problems we've had in these years — the softwood lumber, which still isn't solved yet; the land use claims that still have not been settled, although they are now becoming better and better, and we can see something come down the road which we didn't have before; and the aboriginal concerns, of course, just to name a few….

The restructuring is concentrating on getting the economy moving over this next year or the next couple of years. The economy has to grow, or this province will not grow.

Mining is improving in this province and will improve even more. We have great optimism here in B.C. that the world economies will start to turn around. All you have to do is look at the financial page, and you'll see that the metal prices of copper are now up about $1.18 a pound — that's in American dollars — and about $400 an ounce for gold, plus or minus. Nickel is about $6 a pound now. It wasn't too long ago when those figures were quite a bit lower.

Exploration is actually exploding for the first time since the mid-nineties. Claim-staking has risen at least 20 percent, and drilling programs are climbing as they see the companies taking advantage of the rising metal prices. This government's philosophy is going to help as we continue to change the regulatory burdens and the taxes and to encourage investment in this province. We're going to see a better 2004, a better 2005, and in the future — '06 and on up to the Olympics year of 2010 — we're going to see major growth in this province as long as we all remain prudent, fiscally responsible and positive.

Mining is a major revenue producer, as I said, in this province, and B.C. is once again going to see some great growth in that resource community. One of our goals is to see all the resource communities in this province thriving once again. There has been, unfortunately, bad news for a lot of them over a lot of years. The government is streamlining regulations in investments. They're lowering the tax burdens and trying to spur on economic development, and it's starting to move.

We see up in the northwest of this province, just below Atlin, the Tulsequah Chief mine has basically been approved. It will start going into production, and 200 or 300 men will be going to work there. The Red Chris, a little lower in the northwest — I think it's just off the Iskut River — is going to come into production. The building program and the mining program that they're going to have and the jobbers that will supply them with material and everything will mean, overall, about 700-plus-or-minus jobs to this province.

Myra Falls, right up here — the only mine that we have in a park in this province — has just now been sold on a share agreement. This doesn't mean a bad thing. It means the new buyers are positive that things are going to happen in British Columbia. There's Breakwater Resources. They bought it from Boliden, and we expect to see that continue producing great things in this province.

I'm not quite sure if the figures are correct today, but it wasn't too long ago that the Myra Falls mine was producing more revenue for this province than the entire cruise industry in British Columbia. Mining is good, and mining is getting better in this province. It was mentioned earlier today that mining makes a very small imprint on this province. Only 1/10 of 1 percent of this province is being mined at the moment, so the environmentalists who feel that mining is bad should really take another look at it to see that the people who not only work in it but own these mines and operate them are responsible individuals. Especially, the workers who live and work and camp in that area, or use their spare time to stay in the area do not get up in the morning and go out and try to trash this province.

I know that up in the Williams Lake area, just north and east, there's the Gibraltar mine, and just south of the Williams Lake is the Mount Polley mine — two great mines that are now going to reopen. They've rediscovered great ore bodies — new, rich veins of copper — and they're going to be starting. There are another thousand men that are going to be working in the Cariboo area of our province, and that's good.

The member from West Vancouver and I took an air flight up to the Kemess mine in the interior of British Columbia, way north of Prince George, and we looked at a new venture going on there. Subject to DFO…. I wish there was no such thing as a DFO, because they certainly aren't really considerate of what is going on in British Columbia or helping us get out of the problems we've had. If they can approve that mine up there, we'll see another 300 men going, and those

two mines will be going for an average of about another 12 years in this province — another thousand men.

It's so far north…. I don't know if people realize how expansive this province is. This is a big province. I like to tell people that when the member from West Vancouver and I flew up there, if we had actually got in our car and were able to drive all the way up to that point, which is about three-quarters of the way up British Columbia, it's so far that we could have actually driven to somewhere in Saskatchewan, probably Regina…. We could have driven there quicker, or we could have driven down to San Francisco quicker.

That shows you the expanse of this province, what hasn't been explored and the potential of growth in this province that we haven't gone after. If we want to continue getting out of the doldrums we're in with regard to the enormous debt that we have and that we are leaving for our children and our grandchildren to pay off, we have to get resources, and we have to bring revenue to the province. That is what supports our health care and our education. Money just doesn't grow on trees, and you just can't tax your citizens continually, so you have to have development and revenue brought in through investment and developing.

As I was reading in the paper the other day, a few years ago Vancouver, along with Montreal, was appointed as the international finance centre for the west coast of Canada. That itself will be of advantage to everyone in this province, and it will help developing businesses. In 1988 there were over 50 banks, trust companies and investment dealers that opened up offices in Vancouver, and now they are starting to see the fruits of their endeavours.

The government, as I said, is streamlining all the regulations to encourage investment, to lower their tax burden and to spur development. One of those things is the energy field. Energy right now has eclipsed forestry as our largest revenue generator, and the potential has really no end in sight, with the prospect of offshore drilling for gas and oil and the great potential of the Bowser basin and the Nechako basin. We see the Queen Charlotte basin and the Winona and Tofino and Georgia basins. All of them have tremendous resources suspected to be below the surface there.

It's not as though we're going to have great big drilling rigs out there that are going to destroy the environment. That's completely wrong. In some cases, where it's shallow we can even put a drill and drill straight out from the shore and go down. Science is on our side, and science is improving all the operations of all the resource industries so that they do not impact our environment. This is a thing we can expect. The prospect of both mining and forestry rejuvenating is going to be an additional bonanza for this province.

We will also have growth in our tourism, due to our natural beauty. Every business is on the threshold of a real recovery — even the film industry, which is very predominant in my own riding in North Vancouver and all along the North Shore, which holds a link to tourism. For every film that is filmed up here, it's a little more advertising for beautiful British Columbia. Both are being affected by the dollar exchange and some of the rules and regulations and taxation we have.

On the North Shore we have, as I say, a thriving film industry, and that has become a global industry. In my riding of North Vancouver–Seymour and in North Vancouver–Lonsdale and West Vancouver–Capilano, we have an estimated 4,500 people who are making their living in this industry. Taxable income is in excess of $92 million in my riding. These numbers do not even take into consideration the numbers from the service companies that supply them and the private sector business that relies on the film industry.

The film industry is truly a boon to our constituents and to the provincial government as well. This industry is a very competitive business, and there is a danger of losing considerable advantage due to taxation. They are now coming to the provincial government and asking them to give some consideration to their problem. I know for sure that I and, I believe, my associate from West Vancouver will be talking to the ministers and seeing how we can help them out and keep that as a thriving business on the North Shore.

One thing I think should be made clear to a lot of people listening in right now is who actually contributes to the B.C. economy. At one time it was forestry; it was No. 1. Right at the moment the No. 2 contributor to our economy is manufacturing. Construction is No. 3. Finance — that includes insurance and the real estate industry — is now No. 4, moving up. Mining is No. 5, and it's moving up. Tourism is in the No. 7 spot. We have to bear in mind that our resources, ostensibly, are the ones that bring in the revenue that fuels this province.

I'll sum up by basically saying that this is a very good budget. It has shown fiscal prudence by this government, and we are now in control of our expenditures. We have over two million people working in this province, the first time that's ever occurred. Jobs are growing. We do need growth to show investment and to continue with the investment we are…. We are a pro-business government; there's no question about that. We have to get that business sector growing again. We are seeing that happen, and that's the evidence we are being told about. It's the evidence we need to have a thriving British Columbia, to bring people back and to bring investment and business to British Columbia.

I see my time is running out, so I will close by saying that I am prepared to support this budget. There are points I'm going to work on and see if we can get a better deal for my constituents — always my constituents. As I said, this building was built 106 years ago, and there have been millions of people through this province. I am fortunate to represent the citizens and constituents of North Vancouver–Seymour. There has only been, I believe, 861 MLAs ever elected to this Legislature here. It's a privilege to have been part of that. I'll continue to work on behalf of my constituents, and

we expect to see bigger and better things for this province. Thank you for the opportunity to speak.

R. Lee: To balance the budget is not an easy task. It is made even harder when the previous government leaves us a structural deficit of $3.8 billion and an economy in recession. Nevertheless, this government has managed to implement prudent fiscal policies while revitalizing the economy and supporting the essential needs of the communities.

I'm very pleased here today to see a budget that is balanced. Our government has been taking many steps to revitalize the economy. I would like to concentrate on one particular sector, the high-tech sector, to see how it relates to the budget.

Before I was elected two and a half years ago, I worked in a high-tech facility called TRIUMF, a Tri-University Meson Facility that is located on the campus of the University of British Columbia. I worked there for many years, over 20 years. I was attracted to TRIUMF because…. Actually, it was due to a field trip. When I was in physics 12 at Britannia Secondary, the physics teacher took us to UBC, so we toured the facility before construction. I was really amazed by the facility there, the big buildings, the people and the scientists, so I was inspired. I see some students in the gallery today. Probably in the future, after this field trip, you will be inspired to work here and to be elected to represent the people in your riding.

I worked at TRIUMF for many years. This is a very high-tech environment. It's an accelerator. So you take some hydrogen ions, you accelerate them into very high energy, and they smash into a target. That produces quite a few elementary particles. You can collect those particles. They're used for physics experiments. You can use that even for cancer treatments. In fact, in TRIUMF we have the proton therapy facility, so eye tumours can be destroyed in the eye. The patient can be treated accordingly with proton beams produced by TRIUMF, the accelerators.

In TRIUMF we also developed some kind of isotopes. In fact, there are two new facilities in TRIUMF right now, called ISAC I and ISAC II. The Isac facility is an isotope separator and accelerator. It will accelerate heavy ions into even higher energy and use that for physics experiments and other things.

In TRIUMF we also have a lot of high-speed connections. At home we only use Internet, but in the high-tech communication highway for the high-energy physics community, the communication bandwidth is actually much higher. I saw a test of that high-speed Internet about two years ago, and it can transmit data in a very high volume between Europe and B.C. in a very high-speed way, so they can get the data analyzed and feedback.

One facility in B.C. comes to my mind now — MDA. I just heard about two weeks ago that they are going to build some small-scale satellite but with a high capacity, so they can actually transmit a lot of data to the home, to the facilities. In fact, in a few seconds they can transmit a whole movie; a two-hour movie can be transmitted in a few seconds.

Those are the kinds of developments that are very important for B.C. and for the world. I believe that MDA Ltd., the company I mentioned, actually is a spinoff from TRIUMF. TRIUMF at that time constructed a cyclotron. They needed a lot of people and companies to work on those machines and do the construction, so MDA at that time helped TRIUMF construct the cyclotron too.

I don't want to go too far away before I comment on the budget. This government actually creates quite a good environment for high-tech. This government has made a commitment to the technology industry and to bridging the digital gap in all our communities. It recognizes the importance of B.C.'s technology sector.

This government established the Premier's Technology Council to advise the government on issues related to the advancement and application of technology in British Columbia. This council has made a number of recommendations to establish B.C. as one of the top ten high-tech centres in the world.

The technology sector in B.C. brings in over $1 billion in revenue each year, while employing more than 15,000 employees in more than 1,100 firms and growing at the rate of 15 percent annually. Across B.C. 120 wireless technology companies are thriving, expecting to double their employment by the end of 2004 — this year. That means B.C. has the highest concentration of wireless companies across Canada. Over 500 new media companies have been created. Those companies employ more than 12,000 highly skilled workers.

Another high-tech sector that definitely needs to be mentioned is B.C.'s fuel cell industry, which currently employees 1,200 people. However, in 2011 the world demand for fuel cell technology and products is expected to reach $46 billion. Burnaby is home to the fuel cell world leader, Ballard Power, as well as other emerging companies.

Burnaby is also home to leading tech companies like Electronic Arts, the number one company in interactive entertainment software, and Crystal Decisions, which develops client software to the world markets. We also have the IBM innovation centre, Creo, and we also have the call centre for eBay recently established in Burnaby.

The implications of these industries are enormous. The high-tech sector brings to British Columbians high-tech and high-skilled jobs, foreign and domestic investment, increased revenues to the province and world recognition as a leader in innovation.

This government has recognized this and is helping to foster this amazing environment. The Premier's Technology Council has made recommendations, and this government has acted. In fact, it has already acted on 90 percent of the recommendations to strengthen B.C.'s position as a global technology leader.

To encourage investment and to attract skilled workers, personal and business tax cuts have been made, and $5 million have been dedicated as tax credits for small business development and for interactive digital media products. In order to help small business have access to venture capital, changes to the Small Business Venture Capital Act have been made.

I'm pleased to see that in this balanced Budget 2004, the scientific research and experimental development tax credit is extended for a further five years. This credit has been so successful that it has generated an increase of $700 million a year in research and development. It provides an income tax incentive of 10 percent of qualifying expenditures and fuels growth in emerging sectors such as biotech, fuel cells and software development. I am excited that this province is on the way to becoming one of the top ten high-tech centres in the world because we continue to support more research and development.

This government has been taking a number of steps to achieve this goal. It has launched the Leading Edge B.C. partnership, which is designed to help market our province's technology and expertise. The aim is to market B.C. across Canada and the world. An $8.3 million campaign has been initiated to have an integrated approach by focusing on ambassador programs, public relations, formal networking, hosting of international technology events and advertising. A $45 million leading-edge endowment fund has been created to establish 20 leading chairs in medical, social, environmental and technological research and a further $75 million for six B.C. regional innovation chairs at colleges.

In this budget I'm pleased to see the continuation of commitment in investing $95 million to double the number of graduates in computer science, electrical and computer engineering; 1,750 new spaces for these programs will be added in the next three years. This government has also committed itself to ensuring that every part of British Columbia is connected to the broadband Internet. Schools, businesses, households, children, adults and seniors will all benefit by having access to broadband Internet. It will create learning abilities, allow access to new technology and information, allow file sharing and working from home, and connect businesses with their suppliers, customers and shareholders.

An interesting example of digital benefits is the road and bridge construction e-bidding which was announced recently. This allows companies to bid on road and bridge construction opportunities by submitting their information on line. This streamlines the old paper process by eliminating waste, saving money and time, and reducing inefficiencies and costs. British Columbia right now ranks No. 2 in Internet connectivity. The Internet was used by 65.7 percent of B.C. households last year.

Since 2001 our government has invested more than $900 million to expand research, access, training and innovation across this province. These initiatives have been successful in attracting more world-class researchers and educators to this province. I'm looking forward to seeing a healthy and vibrant high-tech sector in the coming years.

As I was mentioning before, this government has always kept in mind the essential issues that are important to our communities and our people. Our prosperity in the high-tech sector and economy depends very much on one important factor — namely, an educated population. This government and all British Columbians recognize that education is the key. It's the key to a healthy mind, the path to getting a good job and the way to a happy life. It's the most important driving force for the economy.

In order to establish a solid foundation for our children to be successful, we must help our youngest British Columbians excel. I am pleased that our government is going to invest $70 million over the next three years to increase families' access to early learning programs in partnership with the federal government. I'm looking forward to seeing more programs like Success by 6.

This government also recognizes the importance of the educational environment. It plays a big role in the motivation of students. That's why we have already funded a $560 million project by opening 13 new schools, expanding 116 and replacing or renovating 40 schools since 2001. But we are not stopping there. There's another $624 million committed over the next three years. Another seven new schools — at least seven new schools — will be built, eight expanded and 30 replaced or renovated. Over 60 schools will receive maintenance, and 29 will have seismic upgrades.

We have made it easier for children to attend the school of their choice by amending the School Act. We have committed to new graduation requirements by focusing on improving last year's 79 percent graduation rate and 43 percent graduation rate amongst aboriginals. A number of reforms were done to assure satisfaction and achievement in our schools.

Some of the changes were so that parents have the right to volunteer in their children's school; eliminating the provincial sales tax on school supplies purchased through the parent advisory councils; creating student planning councils to provide parents more roles in school decisions; implementing a teacher supervision program to improve teacher performance; and creating a task force on student achievement, which lays out a five-point action plan to recognize excellence in teaching, literacy and school improvements.

The list goes on. A program that's very worth mentioning is the Achieve B.C. initiative. This is an excellent example of the combination of the digital resources with our education. Achieve B.C. is an integrated education initiative that provides access to tips, tools and information for parents, students, families, workers and new entrepreneurs to help them achieve their goals. By logging on to www.achievebc.ca, any British Columbian will have access to information ranging from early childhood development, kindergarten-to-grade-12 learning standards, study tips and parental

involvement in schools, to lifelong learning, career planning and job training. This program is the first of its kind, and we believe British Columbians were able to benefit greatly from it. Last year an exhibition of Achieve B.C. in Brentwood Mall town centre in Burnaby North captured the attention of many students and parents.

In this balanced budget, funding for K-to-12 education has been increased by $313 million over the next three years, despite lower enrolment. This represents a jump of $170 million over the last three-year plan. It clearly shows education is a priority. It's a priority of this government and its strong commitment to increase funding of education whenever more resources are available. What it means is that spending per student in 2004 and 2005 will increase $219 million from 2003 and 2004 and a further $107 million in…. Actually, this is per student. The per-student increase is $219 in this coming fiscal year, and the next fiscal year it will be $107. In the year ahead, per-student funding will rise to $6,748, an increase of $532 per student since the 2000-01 fiscal year. This kind of increase will help school boards continue to support choices, flexibility and innovation, and it will also help more students complete high school and improve literacy skills.

I am glad to see this government continue the program on seismic upgrades on school buildings. Last year the parents, students and community users of Gilmore Community School in North Burnaby felt relieved to have the seismic upgrades of the school completed. This increase of funding from $8 million to $23 million for minor upgrades by 2006 and 2007 will certainly improve the safety of many school structures. I'm also pleased to see that a further $50 million a year is available if major structural upgrades are necessary.

As you can see, this government delivers on its promises. I've outlined just a few examples of the things we do for our communities and our people. This government is fiscally responsible, transparent and committed to its people, and it follows through with its plans with the most prudent and effective policy. I'm here to congratulate the Finance minister and the Premier for setting the course, and in the years to come I'm looking forward to a balanced budget.

Hon. R. Harris: It gives me a great deal of pleasure to be able to race up to these chambers to speak in support of, to speak in favour of and to congratulate the Minister of Finance for presenting a balanced budget. It's a phrase that isn't said here very often.

I'm sure the member for North Vancouver–Seymour will appreciate the open-pit mining filing system I put on my desk here in true support of the resource industries of the communities I represent.

I do want to talk a bit, maybe before I get going…. When the member for Burnaby North was speaking, we had quite a large crowd of students in the gallery. I would say they were probably somewhere around 11 or 12 years old. I was thinking, as I was trying to put this collection of paper together on how I wanted to approach this balanced budget, why it actually is so important. It is about providing choice. I was looking at that group of kids, and I was thinking that today in British Columbia there are five people working for every one retired. By 2030 that's going to be three to one. People like myself will all be getting older, we'll be living longer, and we'll be demanding more out of society.

When you look back at the nineties and realize that from 1990 through to the current year, the provincial debt in this province has moved from about $17 billion up to where it is today, just above $40 billion…. We've added a little bit to that.

You think of those kids up there, and you realize what we're asking them to do. By 2030, and hopefully a lot of us here will still be alive and kicking but demanding more out of the system, living longer, in an environment where today most people would say they think we need to have more funding into education and health…. When there's a 5-to-1 ratio working today, and we're challenged to make it work, imagine the burden we're putting on them. Not only are they going to have to find the resources to pay for the services that we're going to demand, they're also going to have to find the resources to pay for the debt and the bills that we acquired during our lifetime. That doesn't sound very fair to me. It doesn't sound very fair because at that age they don't even get a vote in it today. They just get saddled with it.

By 2030 they're going to be about 36, 32 — right in that prime age of wage-earning — so it really is important that we, as a collection of people in this province, who…. Quite candidly, I do get it when people say to me: "I pay my taxes. I should have this; I should have that." The reality is that over the last decade and more, we've been consuming more in services than we've been paying in taxes. It's as simple as that. Yeah, it could be out of one ministry, out of another, out of wherever. But the bottom line is that we've been taking more out of the system than we've been giving back, and all we've been doing is saddling that group that were in the gallery with the challenge of how to fix it.

We can take the leadership role in this. We can take the responsibility that I think we have been entrusted with here and that as a society we have and start to fix it ourselves before we actually get to that point. I think having a balanced budget, in going forward — the same thing — is really important. It's really important for them. It is about what we're going to do to and for the next generation.

I want to talk a bit about integrity, because I think that's what this government, over the last two and a half years, has really brought to the table. You know, this government, under the leadership of this Premier, has done a number of things that for the average person probably don't seem that important. How the institutions that govern us work actually means a lot. Now, we've brought structural change to these chambers. We've introduced fixed election dates. You know, that actually is pretty important. We're in a close battle in

the polls today, but you know what? You don't shirk away from it. Let the public know when it's happening. It is about being open and transparent, and fixed election dates are one of those things that I think is fundamental. It stops governments from shifting and dodging issues. You face a consistency in how you approach things, and on a consistent date you go to the electorate and ask them for their support.

We've put in fixed calendars on how this assembly operates. That actually allows members time to be in their constituencies and represent their communities when they are here. Some of us come from a long way away. That's important because at the end of the day, you lose sight of that if you don't get back, and you don't get a chance to continue to talk with the people you represent so you can actually help develop the thoughts and views that you bring down here.

We've brought in free votes. I find it curious that on the federal scene today, they're talking about some of these things as if they're brand-new. Free votes are so common in this House, to be honest, that when they happen most of the local media don't even record it anymore. It's not a big event. It's not a big event, because it works.

Probably the single biggest thing we've done is the Citizens' Assembly on Electoral Reform. I'll tell you, the complaint — not the complaint; the comment I get…. I don't think it's a complaint. I don't think anybody complains about politics. The comment I get a lot is that people aren't happy or don't know if this is the right way to elect their officials. But never before has a government that's the government of the day decided that we're actually going to go out there and ask the public. We're not going to ask politicians. We're going to ask the public: "How do you think you should elect your officials? Take a look at how we do it."

Well, maybe at the end of the day it will be like Winston Churchill, when he said that democracy isn't the best form of government, but it beats anything else. Maybe they'll find that the system we use works and is in fact the appropriate way. The fact is that we've actually gone out to the public. We're letting them meet. They're talking about it. I couldn't even tell you what they're talking about today. They're going to come back with a recommendation. Those are pretty significant changes.

The last thing I think we did, which is really what we're talking about here today, is how we've decided to handle the books of this province. Governments consistently in the past have used Crown corporations and other vehicles to move money from one pocket to the other. We've had more than one accused fudge-it budget in this province. We have brought in a budget transparency act. We've moved the book system in this province to generally accepted accounting principles. We've incorporated all of the Crown corporations and the institutions — through health care, education and colleges — under one window so that when people actually look at these, that's actually where their money goes.

I remember the Minister of Labour speaking this morning and talking about the fact that the government doesn't have money. That's absolutely true. You know, all we do is move it from one pocket to the other, take it out of one person's hand and stick it into another. That's based on what the public thinks we should be doing with it. We're actually now treating the bookkeeping of this province in a way that it always should have been treated so that people know what the government is doing with money. We're also the first ones in Canada to do it, but I bet we're not the last.

As with the other structural changes we've made, I think you're going to see the trends that we set in this province, which in many ways don't resonate…. They don't seem as important to people because they don't sort of impact their day-to-day lives, but they are fundamentally correct. They're fundamental to the system. I think you'll see what we're doing in this province become the model around the entire country.

Why is it important to balance the budget? It didn't happen just by accident. It didn't just materialize. It took a lot of work. It's important because it gives us credibility as a government. We said we were going to balance the budget in the third year. We said we would run deficits for a couple of years, and we did. We did it because people told us some of the services they needed were important to them.

We also said we'd make the tough decisions and we'd move to a point in time when the budget of this province was balanced. This is it. It's important because it does give us choices as we go out. Each year, as one of the members said earlier, you build more and more surpluses, and now all of a sudden you have money to apply to the things that are important to you — whether it is health care, education, social services or noxious weeds. You know, it's whatever we decide as a society.

It does start to allow us to pay down the debt, so we start to take on and be accountable for our own consumption and not pass it on to somebody else. The other choice is that by creating credibility and creating a province which is fiscally responsible, it sends word to the investment community around the world. We shouldn't kid ourselves. The world has changed in the last decade. The artificial borders to money no longer exist. It can flow anywhere, but it is the key to creating jobs. The key to growth in any society is the ability to attract investment.

With a credible financial framework, this province becomes an area of choice. We're actually starting to see that. We're seeing our standing within Canada rise in terms of attracting investment. We're seeing people, for the first time since the mid-1990s, move back. I think just about everyone talked about the tremendous job growth we've seen in this province. We've led the country two years in a row. We're doing all the things that finally allow us to start to grow the pie.

I want to talk a bit, before I go on, about why it's important to remember where we've come from, be-

cause this is about looking forward, not looking back. Every day we sit in this House with the two members opposite, and we get to listen to them, like a bungee cord, trying to pull us back in time, back to where they were.

You know, they stood up again today and railed on again about…. Well, I'm not really sure what they rail on about, but I think they're trying to talk, in some cohesive form, about economics and how we make this province grow. They actually just don't get it. The decade of the nineties, the decade of decline…. There are so many phrases that have been coined to describe this.

It is not by accident that there are only two of them left in this building. There are only two of them here because every single community in this province knew very well what was happening. We not only could see it; we could feel it. It was happening to our neighbour; it was happening to ourselves. We were seeing our incomes drop; we were seeing people leave the communities; we were seeing the jobs disappear. It was a visible thing that was out there every day. It was because they had no idea and no clue and certainly didn't understand the relationship between attracting investment, a growing economy, and the ability to afford and support valuable social programs and health and education. They just continually went out on a massive spending binge that had absolutely no controls to it.

Look at the part of the world I come from, up in Skeena and Terrace. One of the members was talking about mining earlier. I think everybody actually talks about mining, because it's a great visual of what happened to us. We used to have 30 mines operating in this province back in 1990. A quarter of a billion dollars in investment was flowing into this province every year. That kind of investment means that as one mine finally runs out, there's another one starting to move into the system. We had 14,000 people employed in the mining sector. Those are jobs that pay $70,000 to $100,000-plus a year. These are great jobs.

By the time they finished with Windy Craggy, by the time they did their regulatory moves, by the time they went through their land use planning processes…. They quite frankly never got the connection. By the time they were done, we were down to less than a dozen mines. I think we're up to 12 mines today. Fewer than 8,000 people working in the industry. The investment in exploration, the key to giving you a consistent industry, went all the way down to $19 million a year, and $19 million a year doesn't buy you anything in the mining business. You can probably spend that in 35 minutes in a pulp mill. It's not a lot of money.

You know what they did in the forest industry. I read an article today in the Vancouver Sun about Gord Hamilton's views around some job losses he believes will occur as a result of our revitalization. Nothing could be further from the truth. Revitalization is about job creation. It's about attracting investment; it's about making the industry globally competitive again. That's actually what we're doing. Timber is not disappearing; it's actually staying right there. It's going to be used because we have the most highly trained workforce, when it comes to the forest industry, in the world. As we move these tenures into new community-based operators — whether it's community licences, the timber sales program, salvage operators, woodlots, first nations — those community-based businesses are going to need community-based people to work in them.

In this industry the whole reason we're dealing with revitalization is because the previous government didn't get it. We had over 33,000 people working on the coast in the province in the forest industry back in 1990 — over 30,000. We're talking about 12,000 today. That is bleak. It was bleak in 1999. That's actually why we're doing this today. It's time to reverse those trends. They brought in their Forest Practices Code. By their own admission, they added a billion dollars in costs to the industry, with no benefit. Before you knew it, the industry became completely non-competitive. Investment dried up, mills didn't become modernized, workforces shrank, and what used to be a full-time job became a seasonal job, a part-time job. To be quite frank, at the end of it, two-thirds of them disappeared.

They actually didn't care. You know what? They still don't. They still don't, because they don't get it. Look at some of the land-planning processes and see the new leader of the NDP saying that if she gets in, the working forest legislation is gone. In the riding I live in, Kallum, we went through a land-planning process, and 22 percent of the land in my riding is now in parks or protected areas. I actually don't mind that. Twenty-two percent of the land is set aside exclusively for the use of a single industry — tourism. I don't think it's unreasonable to ask that a portion of the rest of the land base be put aside for other users and in a manner that is not exclusive to anyone, so the land can also be used for tourism, but it's also there for mining and forestry. It's there for everybody. That's not unreasonable.

She obviously thinks it is. You know, if she gets rid of that, those are jobs in….. Actually, it just continues what they started in 1990, railed away through till 1999, and if she gets a chance again, they're going to continue the flow again. They're going to go after every single job in every single rural community, and they're not going to be happy till not a single, solitary soul is working. That is the end result of this.

You know, I look back at what they say. Actually, for a while there, for the first year or so, I tried to listen quite thoughtfully. It became apparent to me that this had nothing to do with people and everything to do with politics. That's the shame of it, because these communities — the rural communities, the heartland communities…. The people that live there choose that lifestyle. I chose that lifestyle. I grew up in Vancouver, but I moved to the Queen Charlottes in 1972 and decided then I just loved that. Later on I moved to Terrace. It is a quality of life that is different. There is a character about small towns that's different from growing up in Point Grey.

Those communities are important to us, but for us to survive, we need to be able to know that the opportunity for employment for ourselves, for our kids, is

there — that it's there today, tomorrow, and it's there for our kids in the future. I think the part they didn't get the most is that as they went through this process of really devastating rural communities, they never thought: "Well, what do we do behind them to give them something else?" There was never any thought to the alternatives.

When rural communities today express their frustration, it's because every one of these decisions seemed to be made in an ad hoc manner, with no planning, no thought and certainly nobody listening to us about what you could do to help us transition. If you're going to move us from one economy to another, what's that economy even going to look like? How are we going to get there? There was none of that. They made more and more decisions, I think, to soothe their southern conscience at the expense of northern communities.

Well, that's coming to an end. It has come to an end, and that's the good thing. That's why part of this balanced budget…. What it does for us as a province in establishing credibility, and how it works for us, is actually put us in a position today where we can start to bring investment back into this province in all of those industries — mining, forestry, gas and oil, and even some new industries.

It's the leadership of this government that comes into play in how we spend the money that we have some choices with. That starts to paint a picture for rural communities that now lets them become even more than they are. I'm going to talk about that in a minute, but I want to talk about gas and oil and where I think mining is going, because today — in the last few years — we've finally started to see mining turn around.

We got down to $19 million in exploration. Last year I think we hit about $50 million or $55 million in exploration. I think this year we're going to get even better. We have a gap to fill. We have to get those numbers back up, quite frankly, to at least $250 million a year. You tap in inflation, and it's probably a little bit more. If we can get those numbers back there — and the trends are going in all the right directions — we'll start to see the growth of an industry that creates high-paying jobs, generates great revenue for the province, and provides the support and the anchor that rural communities need to sustain themselves.

As we start to move into the forest revitalization, we start to put timber out, as I said earlier, into more community-based businesses. We're going to create the fibre supply that will allow for the construction of new facilities. It will allow for the creation of new markets. It becomes another core business that's going to sustain and support rural communities.

The member for Peace River North has done just a marvellous job in the oil and gas sector. He's done a great job of building on an industry that has just grown by leaps and bounds in the northeast. He's looked at the rest of the province and said: "How do we actually start to move that investment around the whole province?" He's brought in a number of strategies around undeveloped basins that are going to start to finally bring resources, investment and jobs into basins like the Nechako and the Bowser. He's starting to put in place a very thoughtful process that finally will take us down, over a course of time, where we'll finally see the development of offshore gas and oil.

We're going to see the benefits of gas, oil and coalbed methane around this entire province, on Vancouver Island. Again, these are great industries that help sustain, support and just add to the profile of rural communities. The resource industries — whether they are gas and oil, mining or logging — are not the panacea for all of our success in rural communities, but they will always be the core. Prudent fiscal management, from a provincial perspective, allows that to develop.

We're also, as a government, doing other things. We're doing things to help to change that economic landscape — the economic platform of how rural communities look — so that we can actually go beyond the resource industries and start to build the value-added side, whether it's in those industries or entirely new opportunities.

The benefits of the CN–B.C. Rail partnership are going to be absolutely instrumental in opening up regions of the north. The money that we as a government have spent on transportation infrastructure across the north has opened up entirely new opportunities.

The highway system today from Prince Rupert right through to Fort Nelson, down to the Cariboo — by the end of next year it's going to be, literally, entirely brand-new pavement. You can't drive for 20 minutes without hitting blacktop or coming across a new bridge or a corner that's been straightened. All of that starts to set a template in the north where the transportation system becomes incredibly more efficient. It makes businesses competitive and gives them access to a new port in Prince Rupert, a container port that puts us closer to Asia than the ports on the west coast of Canada, and a new gateway to the continental U.S. through Prince George, which puts us closer to that market. That's going to create entirely new opportunities that every community in northern British Columbia can tap into.

You don't have to be in the forestry or the mining business anymore. You can be in something entirely different, if you choose. There's an opportunity to go into businesses that exist in the lower mainland, and you can actually make a competitive business reasoning for why they may want to relocate, if it works for them.

The new opportunities around tourism, I think, are probably the highlight of all of this. You look at a cruise ship dock in Prince Rupert that's under construction today. Starting in May, over the course of the summer over 60,000 tourists — people who have never been to Prince Rupert before — are going to get off the boat. They're going to get on rail excursion tours down the Skeena Valley into Terrace. Every statistic tells us that when people travel by boat, when they've got access to a region by another means, two to three years

later they come back. They'll come back by motor home, they'll come back by rail, or they'll come back by car, because they want to enjoy what it was they only got a brief glimpse of when they were on their cruise. That's pretty important. It's a whole new opportunity that the north can start to tie into.

We're going to have passenger rail service. Then you start to look at Prince George as a central hub. We're going to have an international airport in Prince George. Today one of the biggest industries in the north, actually, is German tourists in motor homes. Well, today they rent them out of Vancouver. You fly that clientele right into Prince George. Guess what. Business moves up there with them, and it just starts to feed itself.

This budget is excellent for a lot of reasons, because it really starts to create that climate where all of these people who want to invest can start to look at this province entirely differently. They can look at the north entirely differently. It creates the opportunity, it creates the climate, and it shows us as a province to be fiscally disciplined. That resonates in the money markets, and we shouldn't lose sight of that.

I want to talk a bit about the budget from another perspective, because I think there are a few things in it that I really like. I want to talk about post-secondary education, because in the north that is an incredibly valuable jewel in our crown. We're going to invest $105 million in post-secondary education. We're going to add a little over 11,000 seats in the next three years and 25,000 new seats into our college and university system by 2010. The college system in the north is a tremendous anchor to economic development and in fact is a tool for economic development. When you start to look at gas and oil development both in the Bowser and in the Nechako, or you look at it offshore, with a brand-new facility being built in Prince Rupert, there's a tremendous opportunity here to start to create magnet programs around that industry.

As we get closer to seeing it come to fruition, we have local people trained and ready to go. We've already seen new programs in Terrace. We have an LPN program. We have a new culinary arts program that actually has a first nations specialty section. That's the first of its kind in British Columbia. We have new programs in the northeast in aircraft maintenance and engineering, along with programming in the gas and oil sector. We have new facilities in Prince Rupert, new facilities in the Cariboo. We have the medical program out of UNBC. Each one of these facilities around the north becomes a tremendous anchor.

In the college system, what's really critical about it is that when you're looking at the cost of education for kids — and I lived with students down here for the first two years — they'll tell you that the biggest cost they had was the cost of living here in Victoria. It wasn't the cost of tuition. It was the cost of actually having to leave home and come down here. As we offer more programming closer to home in those communities and we allow kids to stay home longer, that's how we help make education affordable for everyone.

There's absolutely no doubt that at no time should need be a barrier to an education. We have to make sure we do have a good student loan program, and we're making sure of that in this budget. We have to make sure the opportunity is there for kids. But the barrier today, in many cases, has been access and programming. This budget starts to paint a picture of the future that's going to let this system grow. It's going to provide access for kids, and it's going to become, in many ways, an economic generator of the communities that these colleges are in.

I want to talk a bit about first nations, because first nations are a key component…. No, that's the wrong word. They are a critical part of the economic fabric of the entire province, actually. In terms of where I live, up in the north…. These are communities that are absolutely fervent supporters of purchasing local, buying local and supporting local communities, and the more we do to enhance their opportunities, the more we do to make them part of the mainstream economy, the better it is not just for them but also for us and for every community across the north.

I'm going to wrap this up by just saying that I want to congratulate the Minister of Finance for showing tremendous leadership in putting this budget together and for bringing us to a point in time that all of us can be proud of. I want to especially congratulate the Premier for showing the leadership we need as a province to make the tough decisions, to take us forward and to do what is really the right thing for this province.

R. Nijjar: It is my pleasure to respond to the budget speech. I'm going to start off by comparing our budget to the budget of the Canadian Centre for Policy Alternatives and Carole James, which came out just last week. Both budgets came out the same week, so let's do a comparison.

The Carole James–CCPA budget proposes that we not only go back to the tax regime of the 1990s but that we actually increase taxes about 2 percent beyond that. The 25 percent tax decrease that you received under the B.C. Liberal administration…. You would receive under NDP administration that 25 percent increase again and on top of that another 2 percent. What's astonishing here is that they purport to represent the low-income British Columbians, the more disadvantaged British Columbians. Well, let's look at their history.

Under their proposal for a budget, taxes would be up 40 percent for the lowest-income British Columbians — at the minimum. Yet one can say that is all just theory. That is only what you are saying as a government MLA. Well, fine. Forget what I'm saying. Let's suppose that I'm being too political. Let the facts speak for themselves. They had not one year, not two years, not five years and not six. They had ten years to do

They believe government can do things best. That's fine. They formed government for ten years. They believe business is bad, profit is bad and profit is earned on the backs of innocent workers. Fine. You want to defend the workers. What happened to workers across British Columbia? Workers in my riding and across British Columbia had a take-home pay decrease of $1,700. That is their version of defending the workers of British Columbia.

Workers under this government in British Columbia in the Vancouver area have had a greater percentage increase in wages than in any city across Canada. You look at the $1,700 decrease over the 1990s, and you say, well, maybe that's comparable to other jurisdictions across North America. There isn't a single jurisdiction in North America that throughout the 1990s had a decrease in take-home pay — not a single jurisdiction. Canada was in a boom. The United States was in a boom. We are the only jurisdiction that went down. Not only did we go down, but we went down by $1,700. If that isn't a telling statistic, if that does not tell you something about the former administration, then I don't know what does.

I know that in my community of Vancouver-Kingsway, that's what resonates the most. That's what hits the families, the working families and the middle-class families, in my riding the most. That's the reality. That's the information they use. I would like to know how a Carole James budget would deal with that. The answer has come out very clear. They believe they should go to the same tax regime that created that $1,700 decrease, yet they want to increase the taxes on top of that.

Another matter in this budget, they say, is that the B.C. Liberal government is all for big business, and they are for the regular folks. Well, that's funny, because we got rid of business subsidies, and they had business subsidies for ten years — business subsidies through those big, bad corporations. Now what do they propose? They propose bringing business subsidies back. Who do the business subsidies hurt? Well, for one, it hurts the other small business British Columbian that is trying to compete with the business that happens to get the subsidy, and — oh, what a coincidence — the businesses that got the subsidies were the ones that were NDP supporters.

If you read the Carole James–Centre for Policy Alternatives budget for 2004, you'll see that they say very clearly that they will take the tax regime that we have introduced, which is attracting businesses to B.C. at a rate of about 9 percent this coming year — a faster rate than any province in Canada…. We are attracting businesses. What they want to do is go back to the tax regime that pushed those businesses away in the first place.

They say: "But we're going to give business subsidies, so we actually make up for that high tax regime." Well, who are they going to give business subsidies to? It says very clearly. You're free to read it. It's on the Internet. It's on their website. It says that the business subsidies will go to those businesses that are willing to follow the government's economic and social plans. What they're saying is: "You, as a business, come to British Columbia. We would love for you to come. But by the way, if you are not going to do the social engineering that we want to do but don't have the guts to do because we know we're not going to get public support but we're going to force you to do it, you will get the business subsidy. You will get a tax break. If you aren't willing to do our dirty work, if you aren't willing to do social engineering, then you are going to pay a price." That means the highest tax rate, the highest tax regime, in North America.

British Columbians have a choice. As complicated as all these issues are…. We hear that all the time. A lot of people say it's a very complicated issue — what's really happening in health care and education, what's really happening in social services, what's really happening with our economy. Let's try to simplify things.

Fifteen months from now you, the citizens of British Columbia, will be able to choose which budget makes more sense. Does the budget that says, "We are going to increase your taxes to the highest level of any jurisdiction in North America," make sense — like they did in the 1990s? Or does one that says: "We're going to be competitive so we attract businesses at a rate higher than any province in Canada"? Do you want a government that took an interest payment debt of $1.2 billion a year and more than doubled it to $2.6 billion a year? Do you want a government that says, as the NDP did, that we need to tax you more because we have more expenses, and we have more expenses because we're trying give you more? In actual fact, they were paying $2.6 billion in interest payments.

One of the reasons a Minister of Finance can fund programs that are important to British Columbians today without going into further debt…. One of the reasons why he was able to fund the forest fires is because our interest payment every year has been coming down under this administration. Your hard-earned tax dollars are coming back to you through programs and not going to international banks.

Someday we will have zero debt in British Columbia. We will have it if British Columbians support a government that understands how budgets work. If we go back to an NDP socialist government, you are guaranteed that your children and your grandchildren will pay, for generation and generation and generation after that. I already know that I will pay for probably the rest of my life for what has happened in the 1990s. I know my nephew and niece will be paying, when they finish school and go to work, for what happened, when they had no fault and no control over the 1990s.

You have a choice of supporting a government that decreases your take-home pay by $1,700 when the country is in a boom or supporting a government where your take-home pay has increased at a faster rate in Vancouver than in any city in Canada. You have the choice of supporting a government like the NDP,

which chased away some of the best jobs British Columbia can provide — in the mining industry, where average wages are around $18 — because they said: "Touching our trees and touching our soil, touching our valleys and touching our mountains and touching our ground is bad. It's dirty. Profit is bad." Or you can vote for a government and support a budget that says we are going to attract businesses. Because we are sound fiscal managers, we are going to attract businesses and attract mining companies, which are then going to allow small towns across British Columbia to flourish and allow families to start paying their mortgages because they're earning not only dollars but some of the best dollars British Columbia can offer.

To the people of Vancouver-Kingsway and East Vancouver I say this: you can support a government that says they believe in all your ideals. They believe in it so much that they're going to bring universal child care. They believe in it so much that they're going to announce it over and over. Yet they aren't even going to fund universal child care in their budgets. There's no money for it. They were never intending to bring it forward. They announced it; it was not in the budget. It was fine with them, because they knew that the election was coming up in several months and that there'd be a new administration. They knew that. They were just trying to buy some seats.

What happens? The new administration comes in — we come in — and the reality is that there never was a universal child care program. It was never funded. We have to deal with the reality of funding an actual program, forming a program that actually works. They got exactly what they wanted. It was never about finding space for children. It was about being able to say several months later, after the election: "That new B.C. Liberal government is a bad government, because we brought in universal child care and they took it away."

Over and over and over again you will see examples toward the dying months of that administration. They made announcements, they created programs, and those were never allocated in the budget. It was complete politics. We were left to be reasonable managers — those that actually care about the budgets and the future of British Columbians — and to have to change and bring those back to the proper levels. I'll give you an example: public sector contracts for those in child services, etc. They received massive increases, 33 percent wage increases. There was no funding for it and no way to be able to pay for it, but it didn't matter, because it made great politics. Everybody in that sector said: "NDP, you are great because this is what you're doing." In actual fact, they didn't say that, because they knew the system was falling apart. That's why that government's budget was refused and they were thrown out of office.

However, when a government that actually wants to create sustainable programs takes over like we did, then what are we left with? We're left with decreasing those wages that were never really there in the first place. We may still have increased them, but they may have been less than what the NDP had offered or put on the table. That was great for them, because now they can say, "Hey, wages are decreased," when in actual fact, if you look at the money that's available, it never was.

This is a choice British Columbians have. You can either support a government that doubled the debt of British Columbia in ten years from $17 billion to $34 billion, or you can support a government that has created the first sustainable, structurally sound, balanced budget in a generation. There are going to be those that say: "Well, a balanced budget is a balanced budget," or "A little bit over or a little bit under; it doesn't really matter. What matters is what's happening in my communities." I'll tell you that I agree with you that what matters is what's happening in the communities. I ran because I care about what's happening in the communities. We don't run because we care about money. I don't think anybody cares about the dollar bill itself. It's what that dollar bill buys you.

When you are paying $2.6 billion in interest payments, you are not getting any services. When you are increasing your debt and your children's debt from $17 billion to $34 billion, you're not getting any services. What you have to do is what we did for the sake of British Columbia's future, which is balance a budget so that the interest payment comes down and start forming programs that are structurally sound and financially sustainable, so we know and you know, as family members and as parents, that your child can continue to go to that day care program a year from now, two years from now, three years from now, four years from now — that ten years from now that program can still be there.

Under the weight of massive debt, under the NDP government those very programs they pretended to be supporters of started falling apart — under the weight of its own debt. Unfortunately, the reality of budgets — and this is what I appreciate about this one so much — is that if you are going to really care about the programs that we're all collectively trying to make better and save, then you have to spend what you earn, just like every single family does in their homes.

Another telling fact of this administration compared to the other administration…. Let's see — job creation. We know jobs are what create healthy communities, because not only do you yourself as an individual have to have a job to be able to pay for everything for your family, but you're also paying taxes that collectively then pay for our education, health care, transportation, social services.

The NDP promised — what was it? Maybe one of my colleagues can help me — I think 21,000 jobs in the forest renewal fund. Through what was happening in the forest industry, 21,000 jobs were going to be created. Zero jobs were created, but they had several announcements about it. We never made any announcements about creating jobs, and we have created 159,000 jobs — more than any province in Canada in the past two years.

These are the choices. There are things we need to work on. There's no doubt about it. I go in my community. I speak with organizations. I speak with individuals. I speak with community leaders. I know there are issues to work on. We do work on it. I work on it with them. I am very, very hands on, because I care about my community. I try to get for them and give them as much as we possibly can as elected officials. But it's balanced with the reality that while we're trying to give as much as possible, we can only spend as much as we have, because in the future we'll have destroyed our ability to give as much as possible.

The nature of the other administration is that they don't believe it matters what is going to happen in the years to come. So long as you can give at that time, then you'll get the political bonuses, and you can move on.

Well, we are collectively paying the price for 20 or 30 years of overspending. A lot of my colleagues and I hear from constituents who say: "I have paid taxes all my life, so you can't put a decrease here. You can't put a decrease there." All we can say is that collectively, we may have paid taxes all our lives, but we have for the last 30 years — which is many people's whole working life — spent more than we had, and we did it to spite the future of our children.

We're not going to do that anymore. We're going to create sound, principled programs with measurable outcomes. I'm glad the member for Surrey–White Rock is here, because when he was the Minister of Children and Family Development he brought about what were changes revered around the world — not just by organizations here that wanted these changes and not just by our bureaucrats who were saying: "I want to continue to work, even though I was about to retire, but now I want to continue working because I've been wanting to see these changes for 20 years."

There are administrations throughout North America that are watching what's happening in British Columbia. There are administrations throughout North America that didn't have the guts to do what's happening here — whether it's in children and family development, with children or people with disabilities, or whether it's in health care.

The positive changes in health care and the structural changes — our changes — are probably less talked about in British Columbia than anywhere else in North America. We have jurisdictions like Wisconsin watching what we're doing. We have Ontario and we have Alberta watching what we're doing. We should be proud that we are leaders not only in Canada, but we're leaders in North America. We have organizations in Europe and Asia watching what we're doing with electoral reform.

We are the first government in Canada to bring about generally accepted accounting principles into accounting, in legislation, where they encompass all parts of government, all parts of taxpayer-funded programs such as universities, colleges, etc. That's something to be really proud of. It gives more accountability to people.

Accountability. The NDP talks about: "Is this government accountable?" Accountability isn't about little scrums that happen outside. Accountability is how you structure your financing and how you report it so people can see clearly what is happening.

Let's talk about balanced budgets, then. I know it has been said there have been five balanced budgets in the last 25 years, and the NDP will say…. The auditor general will say there were two balanced budgets under the NDP. Well, technically, they may have been balanced. The auditor general may have been responsible to report that they were balanced. But do you know why they were balanced? Under the system that the NDP had, they could transfer things to Crown corporations all they wanted. If there was a debt, you could transfer it to a Crown corporation. Of course your books are going to be balanced. Anybody could have balanced that. They took a million-dollar pension fund and transferred that — a one-time transfer. What a coincidence. It helped them balance their books. It didn't matter that the next year, when they weren't going to be in office, then the million dollars was going to go back.

The point of a balanced budget is not to make the numbers match up. The point of a balanced budget is to create structural balance.

So looking at the clock…. [Applause.] I don't think the public who are watching would agree with that clapping. I think they want to keep hearing me speak.

I am going to begin my closing little statement so I can have my colleague speak as we close this day. I do want to say that the choice is…. You know, we can debate all we want. The public will choose. The public will choose between two types of budgets: the type of budget that is structurally sound and allows British Columbia to build or a budget that believes that numbers don't matter, money doesn't matter — just keep spending and future generations somehow will pay. Those are the two types of budgets. You choose.

G. Hogg: I'm inspired, listening to the previous speakers and hearing the context and the relationship and the delivery. One of the interesting, exciting, unique things, I think, about being a human is that we each experience things differently. The same event, the same information, the same words evoke different types of experiences in people. That's called the Rashomon effect. It was an effect that was developed by the Japanese. They used to bring people into a theatre, and they'd have them watch a number of very specific events. Then they'd ask them to report on those events: "Tell us what those were about." They found there was a wide divergence in the same people watching the same event and how they experienced it. They saw dramatically different things, which, of course, originally cast a lot of aspersions upon what our legal system might be as you bring witnesses forward, because the same witnesses watching an automobile accident will experience it dramatically differently.

Some people think circuitously; some people think…. But the big phenomenon was the Rashomon

effect. People could see and experience things differently. Clearly, that's very unique when we start to look at the budget and the very wide divergence in the approaches that people take to the budget — the Rashomon effect. They see and experience things differently. As we start to look at the way you accumulate and bring groupings of people together, again, it seems to talk about and reflect on things differently.

I'll tell you a little anecdote that helped me to understand some of that. I was out for a drive about ten or 12 years ago with my wife, Laverne. At the time I was the mayor of White Rock. We were driving, and we were in North Surrey. We stopped in North Surrey to be filled up with gas. A gentleman came out and cleaned our windshield and filled the car with gas, and it happened to be somebody that Laverne had dated way back in high school. We filled the car up and drove away. She was silent for a while, and I turned to her and said: "I know, Laverne. I know what you must be thinking — that maybe if things had turned out differently, you would be living here in North Surrey." She said: "No, that's not at all what I was thinking. I was thinking what a great mayor that guy would have made."

We experience things differently, and I think that's pretty unique in terms of those perceptions. Another one of my favourites is the story of the three children who are arguing about whose father was the fastest. We experience things differently, just as we experience this budget differently. Three young children are arguing over whose dad is the fastest. The first boy said: "My dad is by far the fastest. You know what my dad can do? My dad can take a baseball, he can stand on the mound, throw that to home plate, and he can run in and catch it." The second boy said: "That is fast; that's quick. But you know, I think my dad may be even faster. My dad can have his pyjamas on, he can be sitting on the edge of the bed, and he can get up and turn off the light and be back in bed before the room gets dark." "Oh, that's pretty quick," said the third guy, "but I think my dad's even faster. My dad gets off work at 5 o'clock, and he can be home by 4:30 every day."

We see things differently. We understand the world in different ways, and we still all want to look at and manage ways of bringing out the best, the theme of the throne speech and the theme of the budget — bringing out the very best. We have to perceive those from a different set of assumptions as we do that. Our government has seen that as a way to look out, to manage, to bring out the best in ways that the past decade did not show that occurring. We didn't, by any objective measurements, look at or find that we were bringing out the best.

When we came into government, we saw a structural deficit of $3.8 billion. We knew things were getting worse. As we look at the highlights of this budget, telling us that we're now number one in job growth…. Over the past two years B.C. created 159,000 jobs, enjoying the fastest growth rate in the country. More than two million people are working in British Columbia, and take-home pay is growing.

We're number one in housing growth. B.C. saw a 21 percent jump in housing starts in 2003, the largest increase in Canada. It's one of only two provinces where starts are forecast to keep growing in 2004. We're number one in small business confidence. New businesses are being created at the highest rate in nearly a decade — 9 percent in 2003. We're the number one destination for new investor immigrants. As well, for the first time in six years, more people are moving to B.C. from other parts of Canada to build their futures — more than are moving away. It speaks volumes about bringing out the best, about allowing the best, about ensuring the best.

There's been lots of criticism about the government not looking at, not managing, not supporting those who are on lower incomes, those who have not seen the types of incomes some others may have. When you look at the numbers, they don't support that. The numbers are really clear that with respect to this budget, we're responding to, we're looking at…. In many ways this is a budget which supports some of those who are not high-income earners.

Just a couple of quick reviews. Total provincial tax for a two-income family of four earning under $90,000 — we have the second-lowest tax rate in Canada. Only Alberta has a lower tax rate. For a two-income family of four earning up to $60,000, we have the second-lowest tax rate. Only Alberta has a lower tax rate. For a two-income family of four earning up to $30,000, it's the third-lowest provincial income tax rate. For an unattached individual earning up to $25,000, again, it's the second-lowest income tax rate regime in Canada. This budget responds to and looks at and manages those issues that are important to some of the most vulnerable people in our province — and is able to look at it.

The goal of our budget…. While it's been much touted about, "It's job growth, and it's economy growth, and it's a balanced budget," those were not the goals of this budget. Those were not the things we wanted to do. Those are things that are a means to get to what we really want to do. What we want to do is be able to respond to the needs of vulnerable people in this province, to all people in this province, so that they have the ability to realize their goals and their dreams and their aspirations. These are a means to achieving that — a balanced budget, job growth. Those are the things that allow us to have the resources to get some options, to be able to build for and look at and manage those things that people really want to look at and see in terms of their futures. We want to be able to realize and give the opportunity for people to have hope that they can do, they can realize and they can achieve the things they want to achieve.

So often over the past decade there's been a sense of depression, not just economically but emotionally, in terms of the psyche of the province. As we talk about bringing out the best, we're talking about changing that psyche, changing it in a way that will give a positive sense of where we can go and what we can do and what we might be. The Olympics is an important part

of that vision that allows us to grasp onto, to look at, to move towards something that is great, something that is greater than self and pushes us in terms of looking at our potential.

This budget allows our K-to-12 education…. It puts $313 million more into it over the next three years. It talks about, I think, $6,748 per student — the highest per-capita per-student funding we've had in education in the history of this province. We know education is probably the very best preventative health care system. We know people who graduate are less likely to have disease. They're more likely to stay away from hospital systems. They're more likely to have a more fulfilling life. Therefore, it's a wonderful preventative system and a model that allows us to work at that.

Combined with that is post-secondary education, creating 25,000 more seats for post-secondary education by the year 2010. That, again, adds to this whole theme of bringing out the best of the psyche, of moving forward, of feeling better about who we are and what we're doing.

The health care system, which is so important to the people of this province…. We have put $3 billion more into that since coming into government in 2001. It was about $11.3 billion. We've added $3 billion to that, and we're going to add another billion by the '06-07 budget. We're growing and looking at and managing and responding to those preventative issues but also to the remedial issues that we have to look at and manage at the other end of it.

My colleagues have made reference to the first nations and the issues with the first nations. It's about their health care. It's about their potential. We've looked at and are developing a method that is leading Canada in terms of being able to do that, a method that is looking at engaging them in a respectful, positive way that allows them to say: "I can achieve my goals. I'm not a victim or responsive to somebody else; I'm actually looking at and engaged in and a part of the best interests of my growth and what I might be able to do."

I believe the only real discrimination that exists in society is that of social isolation. We have historically looked at ways to socially isolate people — to keep them out of the mainstream without being fully included. This budget allows us to move from that. It allows us to get at full inclusion and move away from some of those systemic and structural types of discrimination that have existed, particularly as they existed in past budgets. It's allowing us to do that. We've done that in ways that facilitate an openness and a transparency, by using the generally accepted accounting principles, to show and to look at it in a way that presents us in a whole new context — a way that again shows us leading Canada.

Not only are we bringing out the best in British Columbians through our budget, but we're also doing that in terms of setting examples — structural examples — of legislative change for across Canada and across the world. I'm very pleased and proud to be a part of a process that allows us to look at the opportunities that exist for everyone — for people in this House, for people across the province and for people around the world as they come to look at us.

It's going to be our turn to shine. It's our time to shine with respect to the Olympics, and we've reflected that in a budget and in a throne speech. [Applause.] I take the applause to mean they want me to go on for hours more, but my colleague is pointing to the clock.

Hansard Services publishes transcripts both in print and on the Internet. Chamber debates are broadcast on television and webcast on the Internet.