2009 Legislative Session: First Session, 39th Parliament
HANSARD

The following electronic version is for informational purposes only.

The printed version remains the official version.

official report of

Debates of the Legislative Assembly

(hansard)

Tuesday, September 1, 2009

Afternoon Sitting

Volume 1, Number 9

[ Page 189 ]

TUESDAY, SEPTEMBER 1, 2009

The House met at 1:37 p.m.

[Mr. Speaker in the chair.]

Routine Business

Introductions by Members

Mr. Speaker: Hon. Members, considering the number of guests that are here today, on behalf of all members on both sides of the House, I want to welcome everybody here to the precinct. I'm sure that you're going to enjoy the day and enjoy the stay in Victoria. Welcome to the Legislative Assembly of British Columbia.

Statements
(Standing Order 25B)

AGRICULTURE INDUSTRY IN B.C.

L. Popham: This summer I was fortunate to travel through Kamloops and the Cariboo region on a six-day agricultural tour with the member for Cariboo North. Since most of my experience with agriculture has been on Vancouver Island, I was taken aback by the huge scale of agricultural operations in the Interior.

In town after town we consulted with ranchers, farmers and people interested in expanding local food production. We visited working ranches and organic farms, took a tour of an abattoir and attended a livestock sale.

It became clear during this tour that a single vision was being articulated. Just like on Vancouver Island, there is a vision shared by the First Nations Agricultural Association, the Fruit Growers Association, the B.C. Livestock Producers Co-op, the meat processors, local agricultural steering committees, farmers' market associations, individual ranchers and an increasing number of consumers who are interested in supporting local food production.

It is a vision about self-sufficiency and sustainability of B.C. agriculture. It is a message about our untapped capacity. It's hard to believe that in a time of accelerating climate change, a time of economic turmoil, we are not focusing on our own back yard for solutions. A self-sufficient British Columbia is not such a crazy idea. It's an idea whose time has come.

I'm not talking about cutting ourselves off and shutting our doors or about being independent from the rest of this planet. I'm talking about a wasted opportunity if we don't start to develop B.C.'s agricultural community to its fullest potential. That's the message I'm bringing back to this House from the farmers and consumers of B.C. who want to be part of the solution.

WOODLOTS IN BOUNDARY AREA

J. Slater: I'd like to talk a little bit about the woodlot licence program in the Boundary area. One of the greatest strengths of the woodlot licence program is that licensees have the flexibility in how they manage their forest resources and are able to customize their practices to suit the local environment and economy.

Small value-added operations are increasingly a valuable way to build local economies and work well in combination with community forests and larger commercial operations in the building of a strong, sustainable forest sector in B.C.

[1340]

The Boundary forests are managed in multiple uses — including recreation, livestock grazing, mineral and mining, many historical and heritage features, hunting, berry picking, guide outfitting, rockhounding, biking, water licences and fishing, as well as other uses and activities with the timber harvesting and small-scale forestry operators who live and work in the Boundary area — making our region well suited for a forest management strategy that includes an increase in independent woodlots.

Support for the expansion of small-scale forestry will ensure more local control over our resource management and also more local jobs and money will be retained and spent in the local communities and more wood offered on the open market. This open access to a more competitive log market will benefit the small bush mills that at least for the present are the only mills operating in the Boundary TSA. Value-added is their future.

I congratulate Grand Forks, Greenwood, Midway, the regional district of Kootenay-Boundary and George Delisle of the Boundary Woodlot Association for supporting the expansion of woodlots to keep their communities doing well through these tough times.

CONTRIBUTIONS OF KOOTENAY CITIZENS

M. Mungall: In the recent months after the May 12 election we have heard considerable lamentation of the poor voter turnout this time around. Few like to see a decrease of voter participation in elections, as it signals a failure in our democracy. It signals political leaders' inability to meaningfully engage with citizens, to inspire and to offer hope. It also signals a system that hasn't made itself sufficiently accessible to the broad public, not just at election time but on a day-to-day basis between elections. This being the case, we worry. We worry that our democracy is falling ill.

Well, today I want to recognize the active citizens of West and East Kootenay by actively engaging with the B.C. government's environmental assessment process for Axor corporation's proposed private power project on Glacier and Howser creeks. They have displayed that
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our democracy is not as ill as we may have thought on May 13.

They overcame some tall orders laid out by government processes and demonstrated their passion and value for engaging in those processes that impact them. Indeed, if it wasn't for public participation, which is always positive, if all we were left with was apathy, we would not have democracy at all. So for this reason, I want to recognize and honour the everyday Kootenay citizens who have shown me that democracy is alive and well in our mountains.

Fetal alcohol SPECTRUM DISORDER

J. McIntyre: I rise today to speak in recognition of fetal alcohol spectrum disorder prevention and support month. September 9 is international FASD awareness day.

FASD is often referred to as an invisible disability. In a room full of people, walking down the street or even in casual conversation, it would be nearly impossible to recognize those living with this disorder. Yet the harsh reality is that people with FASD often have difficulty finishing school, holding down a job or building strong, healthy and enduring relationships. Support may be needed to integrate with society and navigate the overwhelming challenges of daily life. This is the human face of FASD.

It's not isolated to any specific demographic. It touches all social classes and ethnic groups and exists in communities both large and small throughout Canada. It is, in fact, the most common form of preventable brain injury to infants in the western world — preventable because we know there is no safe time and no safe amount of alcohol to consume while pregnant or when trying to conceive.

The results are lifelong and irreversible. Health Canada estimates that for every thousand B.C. births, nine infants will be affected in some way by FASD. In my own riding of West Vancouver–Sea to Sky, those in need have been served well by the creation of FASD key worker positions in organizations such as Hollyburn Family Services, Sea to Sky Community Services and Ayas Men Men Child and Family Services, which provide support, information and advocacy for vulnerable families at risk or those afflicted and affected.

It's in everyone's interests that governments and community organizations continue to work together to support women to have healthy pregnancies and to improve the lives of those living with FASD.

[1345]

I'd like to leave the House with the thought that while preventing FASD is often considered the sole responsibility of women, the reality is that each of us — men, women, community members, educators, health professionals and public servants — has a role to play in prevention, awareness, and the support and understanding for all those who live with this disability.

Small COMMUNITY schools

D. Routley: I'd like to address the House about the value of small neighbourhood schools and their value to our communities. It has long been my conviction that some of the best experiences can be had in a small school, a small rural traditional school even. So many of our communities identify their schools as being the heart of the community, so important to their identity, so important to the character of what they hold dear for their communities.

When we examine the value of schools, we have to recognize that they have a multitude of values, a multitude of resources that they pay back to our communities. They become community and neighbourhood parks in the evenings. Many of our neighbourhoods rely on them for recreational opportunities. They are meeting places for local organizations, community associations. They are invaluable sites when it comes to keeping the community aware of itself. They're recreational sites. They're rented at night by local athletic organizations and other social functions. They also serve a very important role when it comes to fighting climate change.

As we examine whether we should close a small school or keep it open, we have to remember that we've also experienced cuts to transportation services to students so when we close a small school, in effect, we're forcing parents to drive their children to schools often very far away. So these are values that aren't often considered and can become obscured by a simple equation of funding.

For first nation students, small schools are extremely important because the teachers know every student. The students know each other. There's an identity. There's a character, and there's an association that builds in a small school. They're important to local economy.

In the Cowichan Valley when we considered closure of small schools, we had several business people join our panel. They talked about how much easier it is to attract people to our valley when they talk about how we have so many nice, small schools in our neighbourhoods. This is a value that many people consider when they choose a community as they move to B.C. But most of all, they're important to quality of life, and I think it's important that we remember that as members of this House.

MABEL LAKE 100-MILE DINNER

E. Foster: Thank you for the opportunity to rise today and speak about a green initiative that is not unknown to this House. This past weekend, my wife Janice and I were fortunate enough to participate in a 100-mile dinner, and I would like to extend a special thank-you
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to Terry Dueling, Heidi Lang and the members of the Mabel Lake Community Club for this great event.

The dinner featured roast beef, roast pork, roast lamb, pasta, vegetables and fruit — all supplied by local farmers. The Dolman family of Creighton Valley Produce supplied the vegetables. The beef came from the Hesketh family of Silver Hills Ranch, Helmut and Heidi Lang donated the fabulous roast lamb, and Pete Hugher supplied the pork. In fact, given the location of the local farms, this could have been a 20-kilometre dinner.

I'm sure we've all heard that the Minister of State for Mining is a celebrity of sorts. Both he and his wife took part in the Food Network's 100 Mile Challenge. While I may not be brave enough to follow in the hon. member's footsteps, it was truly an initiative that emphasizes the benefits of eating locally and supporting local farmers, ranchers and the vegetable producers.

Not only does the 100-mile diet promote local farms, it raises awareness for the environmental sustainability in producing the food we eat. Eating locally produced food has a lower carbon footprint than food produced elsewhere. I would like to thank the members of the Mabel Lake Community Club for a wonderful evening and look forward to the next 100-mile dinner.

Oral Questions

APPEAL OF SUPREME COURT DECISION
ON ELECTION advertising LEGISLATION

C. James: My question is to the Attorney General. Will he confirm that he has directed counsel to proceed with the appeal of the B.C. Supreme Court's decision on Bill 42, otherwise known as the gag law?

[1350]

Hon. M. de Jong: We are still deliberating on that matter. I'll be happy to inform the House when a decision has been made.

FUNDING FOR SCHOOL SPORTS PROGRAMS

J. Brar: Before the election, this government promised to maintain funding for schools. Yesterday it was revealed that the government was breaking its promise to fund the annual grant for B.C. school sports. Clearly, this government betrayed tens of thousands of high school kids who were looking forward to participating in these sports competitions.

My question is to the Minister of Healthy Living and Sport. Why should B.C. kids have to pay the price for the deception and incompetence of the B.C. Liberal government?

Hon. I. Chong: Clearly, we are facing unprecedented economic times, and we are required to make difficult choices. But let me be clear. We continue to invest millions of dollars in youth and sport in this province and provide nearly $40 million annually to support sport in this province through our ministry.

Mr. Speaker: Member has a supplemental.

J. Brar: The reality is that it's a tough time for this government to tell the truth. That's the reality.

The fact is that these kids were led to believe before the election that they would be participating in these sports competitions. Now, after the election, the story is different. They have been told: "No funds for you any- more." The only one thing consistent about this government is that it says one thing before the election and the exact opposite after the election.

Will the Minister of Healthy Living and Sport tell this House why B.C. Liberals misled the kids of British Columbia?

Hon. I. Chong: Our government has provided record investments in sport to make B.C. a leader in physical activity, in sport event hosting and international podium performances. It was our government that doubled the physical fitness and amateur sport fund to $44 million to support athletes in this province. It was our government that brought the 2010 Olympic and Paralympic Games to British Columbia to create legacies for youth in this province.

N. Simons: Cuts to school sports programs are yet another example of this government's misplaced priorities. Sport is part of education. It promotes physical and social health and brings benefits to our communities in so many ways. Rural and low-income British Columbians will be the hardest hit by this surprising and shortsighted cut.

We all remember with pride the success of young Hazelton wrestler Carol Huynh when she returned from the Olympics with Canada's first gold. Programs like the one that nurtured her are on the chopping block.

Will the minister acknowledge that this specific cut to education is going to have a serious impact on high school sports and on all students in British Columbia, especially on low-income and aboriginal students?

Hon. I. Chong: Our government has invested record levels of dollars in education each and every year. We made it very clear in February 2009 that our government would work…

Interjections.

Mr. Speaker: Members.

Continue, Minister.
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Hon. I. Chong: …to ensure that we protect vital services like health care, like education, which is one of the reasons why we have looked to find $1.9 billion in savings — to make sure that those vital services, health care and education, are protected.

[1355]

Mr. Speaker: The member has a supplemental.

N. Simons: Well, I don't know how many of the golden-nugget promises that were given to us a few years ago have been broken by the successive cuts this government seems to be offering day after day. The threat to this program is going to have massive impact on British Columbian students.

I think it's a stark contrast to see the funding for the Olympics — $100,000 for a sports organization that supports young people in this province. To me, I think the hypocrisy is pretty obvious. Except for maybe five or six members of the government side who believe the minister here, I think it's a clear, obvious fact that cuts to education are impacting on students here in this province. So how does the minister explain that?

Hon. I. Chong: Well, the hypocrisy is coming from that member when they, in fact, have not supported…. Each and every year when we've increased the budget for education….

Interjections.

Mr. Speaker: Members.

Continue, Minister.

Hon. I. Chong: Each and every year since 2001, we have increased the funding for education in this province, and that opposition has voted against it each and every time.

FUNDING FOR ARTS, CULTURE
AND COMMUNITY ORGANIZATIONS

S. Herbert: Yesterday the Premier said on CKNW, in response to questions from a charity regarding this government's retroactive gaming funding cuts.… I'll quote the Premier: "You know, government lives up to its commitments, but they've got to be real commitments."

These letters this government sent out guaranteed funding this year and the next. Are these commitment letters real commitments, or are they fake commitments and yet another example of this government's deception?

Hon. R. Coleman: I'm sympathetic to the concerns of those groups that have received those letters, and I will be looking at that matter, also — in the context, of course, of the original agreement — with regards to the Financial Administration Act and other aspects of gaming applications.

But I want to tell the House that this was not something…. None of this to do with gaming grants has been easy, and I had to make some pretty tough decisions as I made recommendations to government.

Interjections.

Mr. Speaker: Members.

Continue, Minister.

Hon. R. Coleman: Faced with whether a child in an inner-city school should get some nutrition or meals when they arrive at school, whether they should have an after-school program for a latchkey kid, whether you make a decision….

Interjections.

Mr. Speaker: Members.

Continue, Minister.

Hon. R. Coleman: So when you look at that and you say: "What's important for that child…?"

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: What decision do you make, Mr. Speaker? I believe you make the decision, first and foremost, that.... If you have to reapply some funds across the grant program in order to take care of the nutrition of children and their outcomes at school, you make that decision first.

Mr. Speaker: Member has a supplemental.

S. Herbert: Well, based on the response I've just heard, what we've actually got happening here is they've taken a program that used to be funded by taxpayers, and they've put it into gaming so that it can be funded out of gaming. Children's nutrition being funded out of gambling — that's quite a priority for government to make.

But I've got to say that the priority for government should be also telling the truth. These letters are commitment letters. So based on this response….

Mr. Speaker: Member, just be careful of how you put things, please.

S. Herbert: Thank you, hon. Speaker.

Based on this response that I've heard from this minister and from other members, these letters of com-
[ Page 193 ]
mitment from this government are worth nothing. So people in British Columbia should know this government's word is worth nothing.

[1400]

Over 500 B.C. charities thrown into debt, mass layoffs, closures because of retroactive funding cuts and torn-up contracts. Tell us why anyone should believe this B.C. Liberal government anymore.

Hon. R. Coleman: I already told the member I'll be looking into the letters. But Mr. Speaker, which child? The child in Mount Pleasant? The child in Vancouver-Kingsway? Vancouver East? The child in Surrey that's in an inner-city school? Which child do you not want to feed? Which child?

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: Are you going to make the decision on which child shouldn't have the right outcomes in their education? Which child?

At the same time, members from across the House know that we've set some priorities around this. So we took a second priority: not just children, but food banks, Meals on Wheels, outreach programs for people that need it — all still in the grant program.

In addition to that, we had another challenge. We were facing a situation where we might not have search and rescue in the back country of British Columbia, because we needed insurance. So the grant program stepped up and took care of that…

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: …and protected the funding for search and rescue so those volunteers can continue on the North Shore or in Golden or in the East Kootenays to be there for people who get lost when they need it.

L. Krog: When asked by Carousel Theatre what they were doing cutting multi-year grants, the Premier's response was: "Was it a contract?" The Premier went on to say: "You know, government lives up to its commitments, but they've got to be real commitments."

You know, hon. Speaker, these organizations can't turn around and raise taxes to cover their loss of revenue. They don't have anything to cut. These are organizations that deliver crucial services and provide culture and arts to the communities across this province. So I want to say to the Minister of Tourism and Culture: does he agree that the Premier's commitments to the arts and culture community aren't real commitments?

Hon. R. Coleman: We've already given out $19 million to the arts and culture community this year through the grant program. We did that in the light of having to set some pretty significant priorities.

I said to the members opposite…. I can remember a single mom coming to my office here not too long ago and talking about the rent assistance program that had actually changed the lives of her son and her and the future outcomes of her kids. These guys actually didn't support that program. They don't want to have people get subsidies in rents.

At the same time, you have to look at the envelope of money and say: "What's best?" Where is the humanity in the decision in a grant program? The decision we made and the recommendation I made to government was that we would protect services to children first, services to those most in need second; that we would actually fund some meals and some shelters in B.C. for people who are suffering from mental health issues and addictions in the province of British Columbia; that we would step forward…

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: …and make that a priority, and I don't make any apologies for actually having a priority of feeding children to have better outcomes in school.

Mr. Speaker: Member has a supplemental.

L. Krog: Well, I'm sure the Minister of Tourism and Culture is delighted by the minister of defence's particular comments in this House rather than get up and speak to the issue himself.

But the question really gets back to this line, and I want to remind the members opposite: "You know, government lives up to its commitments, but they've got to be real commitments." So I guess what we've heard here today is that when the Premier makes a commitment, it's not a real commitment.

Quite simply, will the Minister of Tourism and Culture stand up today and tell us: does he agree that the Premier's commitments aren't real commitments? Can he just tell this House in a real simple, short answer? Give us the truth here, right here in this House today.

[1405]

Hon. R. Coleman: I've already advised the member I'll be looking into the letters. But I would like to know…. I'd like to see the member go down to an inner-city school in the city of Nanaimo and look a grade 2, 3, 4, maybe a kindergarten child in the eye and say: "Jeez, I know you came to school today on an empty stomach. I know your outcomes…."
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Interjections.

Mr. Speaker: Members.

Minister, just take your seat.

Any more comments?

Continue, Minister.

Hon. R. Coleman: And tell that child: "Jeez, you may not graduate high school because we didn't have the temerity to stand up and set a priority…."

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: You know, the louder the heckling on this, the closer I know I'm getting to the bone of the actual conscience of the NDP with regards to children in the province of British Columbia.

We made the decision on behalf of kids. We made the decision on the behalf of people that are less fortunate in B.C. We made the decision on the basis of public safety, and those were the right priorities to set for the kids.

M. Mungall: My question is to the Minister of Tourism, Culture and the Arts. Nelson's Touchstones Museum and the Capitol Theatre both rely on tourism to stay afloat. Already hurt by the HST deception, this government notified the two organizations yesterday that they can no longer count on B.C. Gaming funds.

I have a letter here, from this ministry, that notifies the Capitol Theatre of three-year guaranteed funding. I have another letter right here, dated June 24, just two months ago, that the Capitol Theatre "were queued for payment."

Well, yesterday they received this letter stating that they were no longer getting the promised funding. Both city of Nelson facilities now have budget shortfalls and are struggling to stay open.

Will the minister help these imperative arts and culture facilities so that Nelson's tourism sector isn't negatively impacted by both the HST and the cuts to B.C. Gaming, or will he continue to shift the buck and force the city of Nelson to backstop this government's broken promises?

Mr. Speaker: Minister.

Hon. R. Coleman: Thanks, Mr. Speaker.

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: We have sent out $19 million in grants for arts and culture from the gaming branch this year so far.

As I said, I'm looking into the letters, but I still go back to the same thing. I know it's difficult for you folks to hear, but the fact of the matter is that we're actually in a pretty difficult financial time. You're going to find out just how difficult it is in a few minutes.

Interjections.

Hon. R. Coleman: I get that the member for Nelson-Creston's priorities are not the children in her community. It's sad to hear, because quite frankly, as we went through this tough decision-making process and had to make the decision for the outcomes for kids to come through school and have the learning outcomes they needed and to actually fund programs for them after school and also to protect the people that would be in the back country of British Columbia by having a priority around public safety for people who search and rescue….

The reality is that making the decisions on gaming for those most disadvantaged and the children in this province is the right decision to make.

Mr. Speaker: Member has a supplemental.

[1410]

M. Mungall: So now that we know that the commitments from this government — and these commitments feel awfully real to me, but I don't have the Premier's dictionary so I'll have to find out what his definition of real is — aren't worth the paper that they're written on, what can the Premier say to the city of Nelson and Nelson community organizations that government commitments are anything short of meaningless?

Hon. R. Coleman: I can understand the member's anger, since she doesn't want to actually believe that she just got cut out and the fact of putting other things in front of what's important for children in the province of British Columbia.

Interjections.

Mr. Speaker: Continue, Minister.

Hon. R. Coleman: A child's program that funds meals for kids in the community is important, as well as within the schools — but also programs for disabled, disadvantaged. You know, when you try and deal with tough economic times, your first priority should be for your most disadvantaged citizens, and that's the step we made. I will stand on that decision to protect nutrition for children, to protect the services for kids and disadvantaged households, and to protect things for people who need it in communities first before we go on to other issues.
[ Page 195 ]

B. Simpson: Will the Minister of Tourism please tell this House what Island Mountain Arts in Wells contributes to the local and provincial economy?

Interjections.

Mr. Speaker: Members.

Hon. R. Coleman: Mr. Speaker, through to the member opposite, ask yourself what the Wheel Inn for people with mental health and addiction issues, which was bought by this government and renovated in the community of Quesnel, with additional services backed up by grants…. How important is that to the community of Quesnel for the people, the real people that today need our help, whether it be children in schools or people with mental health and addictions?

I think it's important that as we deal with these issues, we try and come to a conclusion and find long-term solutions. The most important thing is that we put families and children and those disadvantaged first.

Mr. Speaker: Member has a supplemental.

B. Simpson: That's the art of obfuscation at its worst.

During the election when we raised the issue of child poverty, when we raised the issue of homelessness, we heard time and time again from Liberal candidates that the best way to address poverty is through a job.

Interjections.

Mr. Speaker: Members.

Member, just take your seat for a second.

Members.

Continue.

B. Simpson: Yet now what we find is the government diverting gaming funds to support social services while they cut thousands of jobs throughout this province in critical sectors in our communities.

For three decades Island Mountain Arts has created jobs and economic benefit in our communities. For this government to cut its funding now, at a time when we're devastated by the mountain pine beetle, the downturn in the economy, in agriculture and forestry…. The highest unemployment rates in the province, and you cut those jobs? That is shameful.

So I ask the Minister of Tourism — this is the minister's file: will he stand up in the House today and commit to restore the funding to Island Mountain Arts so it can continue to create jobs and economic benefit in the Cariboo?

Hon. R. Coleman: Through to the member opposite, you just described the reason we had to make these tough decisions. You're facing high unemployment in communities in British Columbia. Would you rather we find a little extra money so the food bank can survive in that community and feed families and children in need?

Interjections.

Mr. Speaker: Members.

[1415]

Hon. R. Coleman: I get the fact that you don't want to do that. That's fine. I believe that the most important thing we can do with gaming grants that are available to us today is to take care of the human and social services side first, the public safety side second, and then after that we'll take care of the other needs of people.

But the most important thing is that a child will not be left behind because somebody decided not to feed them when they arrived at school, that somebody will actually make sure the support services are there to be enhanced so people can have meals and better outcomes on mental health and addictions. I think it's very important that we, as a society that cares about people, make this decision.

J. Kwan: Yesterday the Minister of Tourism said that children in at-risk groups would be exempted from the hatchet job to community grant cuts. More deception. "Miscellaneous Productions serves and collaborates with culturally diverse, multibarriered youth to create interdisciplinary art…. All youth participants in this current program, Power… have histories of victimization."

In an open letter to the Premier, Elaine Carol, artistic director, writes: "If the young performer participants are not in my program, they may be on your street breaking into your car or your house, dealing or doing drugs in your neighbourhood."

Is this the kind of stimulus that B.C. needs? Or will he admit that he is wrong in breaking these contractual agreements?

Hon. R. Coleman: There's no place in British Columbia where there's been a more significant investment in the social side of any area of a city or community than in that member's particular riding in the city of Vancouver.

You know, Mr. Speaker, as you come through some of these, we may find some programs in need. That's why I said I'd be looking at the letters. I'll look, but the fact of the matter is that we can make decisions on behalf of people that are less fortunate. I would think the member for Vancouver–Mount Pleasant would know that better than anybody in this House, considering the situation she faces on a day-to-day basis in her riding.

We have been making significant investments in order to make sure children are taken care of. We will continue
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to do so because that's the most important criteria we should apply to any discretionary grants in government.

Mr. Speaker: The member has a supplemental.

J. Kwan: It is laughable coming from a government where we have the worst child poverty rate right under their noses for the last six years. Nine months into the fiscal year this government yanks the rug from under them and retroactively cuts the budget by $20,000. Result: layoffs, reduced hours and, yes, cuts in programming. Miscellaneous Productions may even have to close its doors after ten years of serving our community.

It costs $110,000 a year to keep a youth in jail. This program offers multibarriered youth an alternative that they're passionate about, and it is a fraction of that cost. Supporting the arts and culture community is also supporting social goals, and it is economically viable.

Is the minister so shortsighted and out of touch that he fails to see the connection? Or will he do the right thing and reinstate the funding today?

Hon. R. Coleman: So 23 single-room-occupancy hotels bought in the Downtown Eastside, 45 buildings bought across the province of British Columbia, converted for supportive housing for people with mental health issues and addictions…. I get that the member does not want to step up to the plate and accept the fact that the priorities should be around children, but British Columbia….

Interjections.

Mr. Speaker: Members.

[1420]

Hon. R. Coleman: Mr. Speaker, British Columbia actually has one of the most generous programs for people living in poverty in this country. Our supports include subsidized housing, the rent assistance program, premium assistance for people that are on low incomes and the best tax regime of anywhere in Canada for people making under $30,000.

Mr. Speaker, I will continue to make decisions on behalf of the children to have the best outcomes in British Columbia versus any other decision I'll make in this House.

[End of question period.]

Petitions

N. Simons: I'd like to present a petition from the community of the lower Sunshine Coast with respect to highways reconfiguration — it's signed by over 1,600 residents — and, while I'm standing, I have another petition from approximately 700 people who are hoping to have some sort of intersection light at a famous corner in Roberts Creek. I would like to present these to the House.

Orders of the Day

Hon. C. Hansen: I move that this House, at its next sitting, resolve itself for this session into a committee to consider the supply to be granted to Her Majesty.

Motion approved.

Presentation of Estimates

ESTIMATES OF SUMS REQUIRED
FOR THE SERVICE OF THE PROVINCE

Hon. C. Hansen presented a message from His Honour the Administrator: Estimates of Sums Required for the Service of the Province for the fiscal year ending March 31, 2010, and a supplement to the estimates for the fiscal year ending March 31, 2010, recommending the same to the Legislative Assembly.

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

Motion approved.

Hon. C. Hansen: I move, seconded by the hon. Premier of British Columbia, that the Speaker do now leave the chair for the House to go into Committee of Supply.

Budget Debate

Hon. C. Hansen: Mr. Speaker, today I present the September budget update, the next step forward in positioning our province for the economic recovery to come.

The past 12 months have been extremely challenging for families, for communities, for business, for industry, and we are not out of the woods yet. But let's not forget: even in the wake of the greatest economic crisis of our generation, our province and our people have tremendous strengths. As we begin to see the signs of economic recovery, the time is right to renew and reinvigorate the spirit of confidence and pride that has always been part of our identity as British Columbians.

With this budget we are continuing to steer this province in the right direction. We are moving towards a new decade of growth and prosperity, recognizing just how dramatically and quickly the world has changed. One year ago, who would have thought that General Motors
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would end up being owned by governments? Who would have imagined the U.S. government taking over major banks or, for that matter, the province of Alberta, debt-free for more than a decade, facing a deficit now of $6.9 billion?

Here in British Columbia we have seen a precipitous decline in government revenues, coupled with the impacts of what could be the worst forest fire season on record, and we, too, have been forced into deficit after years of balanced budgets — all of which creates a complex challenge for the government.

We absolutely must maintain the important public services, and we must continue working to strengthen our economy. At the same time, we have a duty to manage British Columbians' tax dollars prudently and not leave a massive debt for future generations. This is a difficult balance to strike. It demands that we make compromises. It also demands that we be very clear about our priorities, and those have not changed since February.

With this budget we are setting out further steps to protect the critical public services British Columbians rely on to promote new investment, jobs and growth in our economy and to move forward with long-term initiatives that make us more competitive and build on our Olympic legacy so that when the global economy rebounds, we are positioned to catch the leading edge of that new wave of growth and prosperity.

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There is a broad consensus that the worst of the economic downturn may soon be behind us. Several world economies are already growing again. The global economy overall is expected to emerge from recession in 2010.

However, as the length and depth of the downturn has become apparent, economic growth forecasts have also been downgraded. The Ministry of Finance now expects the B.C. economy to shrink by 2.9 percent in 2009 and then grow by 1.9 percent the following year. That is a considerable decline since February, consistent with the downward trend in private sector forecasts for growth in British Columbia, Canada and the United States.

Virtually everybody has lowered their forecast, underlining just how volatile this current situation is.

The months since the last budget have been extremely challenging. We have seen our projected revenues from corporate income tax and personal income tax erode by over a billion dollars for this fiscal year alone. We have seen our projected revenues from natural resources erode by about the same amount. In total, we are facing a loss of $2 billion in expected revenues in the current fiscal year, and that is only on the revenue side.

On the spending side we are facing sharply higher costs for fighting forest fires in a season that has so far seen about a thousand more fires than normal. We now expect the cost to be in excess of $400 million this fiscal year. We are also facing higher costs as a result of the current recession for supporting British Columbians in need, as well as higher costs related to the H1N1 flu virus. These essential services must be funded, and they will be.

By 2011 total spending is projected to increase by $3.5 billion compared to 2008, and we have built in forecast allowances, cushions to protect against unexpected events, of $250 million in each of the three years.

The bottom line is a much larger deficit than was forecast in February: $2.8 billion for the current year, $1.7 billion for the following year and $945 million for the third year of our economic and fiscal plan, falling to $140 million in the fourth year. We now expect to return to a balanced budget in 2013, at which point we will have committed to dedicating every dollar of surplus cash for as long as it takes to eliminate the province's direct operating debt, the debt we incur as a result of running deficits.

In the meantime, we are continuing to implement our stimulus package, which includes investing nearly $14 billion with the federal government and local governments, building schools, health care facilities and other infrastructure needed in communities, creating jobs, supporting families and generating economic activity.

As we continue down that road, accelerating capital spending, B.C.'s overall debt will increase. Taxpayer-supported debt-to-GDP ratio, the critical measure of debt affordability, will rise to more than 18 percent by 2012, after which we anticipate a resumption of its downward trend.

To place this in context, the forecast high in 2012 is nearly 5 percentage points above where we were in 2008. That is, however, still 3 points lower than it was when we tabled our first full budget in February of 2002. It will begin to decline as our economy picks up steam, and when we return to balanced budgets, we will regain the capacity to make significant debt paydowns.

When we return to balanced budgets, we will also have renewed opportunities to look at public sector compensation. In the current economic climate we do not have the funding to increase wages. Our top priority must be protecting vital services for British Columbians.

This government has always been committed to prudent financial management. Our record: five balanced budgets in a row, the largest surpluses ever recorded, the largest annual debt repayment and the highest possible credit rating. These successes speak for themselves.

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When the economy was stronger, we were actually criticized for being too prudent. There were some who accused us of setting aside too much revenue to pay down debt and said that we were wrong to turn down requests to commit even more dollars to ongoing program spending. Now, in the midst of this global economic crisis, British Columbians have that record of prudent management to thank for the fact that while we
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do see challenges, we are still maintaining and in some cases strengthening the most important public services.

Yes, there will be spending reductions in non-essential areas, and yes, we recognize that those decisions will affect people's daily lives. Cutting funding is never easy, but even when times are good, we can never afford to do everything we want. Frankly, when you're facing a choice between funding a conference or funding medically necessary care, the right choice is obvious.

Simply put, there are public services that people cannot do without, and no matter how difficult our fiscal situation, those critical services must be protected. When a forest fire threatens a community, we fight it. When someone needs care in an emergency, it's there. When people fall on hard times, we provide support for them, and these are absolutes. They are not negotiable, even or especially in a time of crisis.

The people of this province must have the confidence that the services they need will continue to be there, and with this budget update, we are moving to ensure that the most crucial services are indeed protected.

Funding for the Ministry of Health Services will increase to $15.7 billion by 2011, an increase of 18 percent over three years. To help keep health care funding sustainable, the Medical Services Plan premium rates will increase. Effective January 1 they will rise by about 6 percent, a maximum of $3 a month for a single person or $6 a month for a family, consistent with the increase in health care spending.

Going forward, premium rates will increase in proportion to the rising cost of health care services, helping to relieve some pressure on the budget and supporting new innovations in care.

MSP premiums currently account for about 10 percent of health care costs, but rates have not increased since 2002, even as provincial health spending has risen by 45 percent. So this increase is reasonable, and as always, we have built in protections for lower-income British Columbians. In fact, with the improvements that we are making to the MSP premium assistance program, those in the greatest financial need will actually come out ahead.

For example, a senior couple with an income of $35,000 a year will see their annual premium costs fall by more than $200. A family of four earning $30,000 will see their annual costs reduced by more than $250. In total, 180,000 British Columbians will see their premium costs reduced or eliminated.

In the Ministry of Education, per-pupil funding will be maintained at more than $8,200. In addition, we are committing $151 million to provide the option of full-day kindergarten for 50 percent of the children starting school next fall. That option will be extended to every five-year-old in British Columbia by September of 2011, as outlined in last week's throne speech. This is a critical investment in our future to help ensure that more of our children start school ready to learn and carry that advantage with them throughout their lives.

With this budget we are also providing $420 million in additional funding over three years to the Ministry of Housing and Social Development to help ensure that as these tough times continue, those in need will be able to access B.C. employment and assistance programs.

A total of $409 million is budgeted to pay for the cost of fighting forest fires, recognizing that 2009 has been an extraordinary year.

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We are committing $80 million in the Health budget to provide vaccines and other supports to minimize the impact of the H1N1 virus in B.C. in the months ahead, and that is in addition to the $20 million dedicated to influenza in a typical flu season.

Compared to the budget introduced in February, this new plan provides $1.7 billion in additional funding over three years, targeted to the highest-priority programs and services. It's part of our commitment to supporting British Columbians through this difficult economic period.

Just about everyone was caught off guard by the speed, scope and depth of the economic downturn. In the February budget, all indications were that B.C. would have a short-term deficit and that we would be back to balanced budgets after two years. As we now know, we hadn't yet begun to see the worst of the impacts of the revenue at that time. Even with the reductions in discretionary spending, we faced a massive challenge to preserve vital health, education and social services.

About three months ago we were given an opportunity that, frankly, we could not pass up. We were given a chance to adopt a made-in-B.C. tax strategy, one that would translate into more jobs and a stronger economy, and to receive $1.6 billion from the federal government that we could put directly into maintaining services such as health care during these difficult times.

Without those revenues, we would have been facing either deeper cuts to health and education or a deficit and debt so large that it might take us decades to get back into the black. Instead, we are moving to implement a harmonized sales tax that will make our businesses much more competitive while encouraging investment, lowering production costs, and streamlining administration to save businesses and taxpayers money.

The HST approach is widely regarded as the most efficient form of taxation. Since the first tax of its kind was introduced in the 1950s, it has been adopted by more than 130 countries. According to the Organization for Economic Cooperation and Development, no other tax innovation has spread so widely or so rapidly, and that is because it works.

The 12 percent HST will eliminate an estimated $2 billion a year in costs that B.C. businesses, under the current tax regime, must build into the price of the goods
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and services they produce. It represents a benefit each and every year of $80 million for the oil, gas and mining sectors; $140 million for the forest sector; $140 million for manufacturing; $210 million for transportation; and $880 million for the construction industry.

I want to be clear. We talk about benefits to businesses and industries, but individuals, families and communities also benefit because the HST will provide a significant boost to employers — the people who create jobs and stimulate investment and generate the revenues we need for public services. The move to HST will mean more better-paid, long-term, stable jobs for British Columbians, and that is good news for families and communities.

It is businesses and industry that keep our province growing, and if they can't compete with other jurisdictions, all of us in British Columbia stand to lose. The past 12 months are evidence of just how quickly negative global events can undermine the province's capacity to serve its citizens. As the HST takes effect and gives employers a competitive advantage, the positive impact on citizens will be equally widespread.

We recognize that sectors such as tourism and food services, which have been largely exempt from PST, will face challenges in this new landscape. I have met with representatives from the restaurant sector and from the other industry groups, and the government is open to working with them to mitigate the impacts. I have also heard the concerns of consumers, but as a member of the business community recently observed, to be a consumer, you first have to have a job, and jobs are created and supported by our businesses.

The fact is that every one of us stands to benefit from moving to the HST. It means more jobs, more growth and, over time, higher revenues from resource royalties and business taxes to support services we all depend on, like health care and education.

In the short term, consumers will face higher prices on some goods and services, but experiences in other jurisdictions have shown that the savings to business and industry from moving to a value-added tax do benefit consumers. We have every reason to expect that that will happen here in British Columbia.

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We are also sensitive to the short-term impact on families, individuals and certain economic sectors. That is why we have introduced point-of-sale rebates for motor fuels, books, children's-sized clothing and footwear, children's car seats and car booster seats, diapers and feminine hygiene products.

Items that are currently free of GST, including basic groceries, prescription drugs, most health and dental services and many educational services, will also be free of HST.

To offset the impact in the housing sector, we are providing a partial rebate of up to $20,000 on new housing. We are also providing HST rebates for municipalities, charities and eligible not-for-profit organizations.

To offset the impact for more than one million lower-income British Columbians, we are providing a quarterly HST tax credit. All of these measures will mitigate the cost to consumers.

Together, those measures are worth more than $1.3 billion a year, and today we are announcing more relief.

First, we will provide a provincially administered point-of-sale rebate for residential energy, similar to the existing PST exemption. That means the HST will not increase consumers' cost for oil, electricity, natural gas or propane used to heat or power their homes. As a matter of fact, British Columbians should see their costs go down slightly, because along with the PST, we are eliminating the innovative clean energy levy, which is currently added to people's monthly energy bills.

Second, in order to ensure that almost everyone has a few more dollars in their pockets, we are making yet another change to personal income taxes. Effective January 1, 2010, the basic personal amount — the amount that you can earn without incurring any provincial income tax — will increase by 17 percent to $11,000. That is an increase of $1,627. That will save a single person up to $72 a year, while a family of two will save $147. This will eliminate personal income tax for an additional 75,000 British Columbians.

Third, as the Premier has announced, we are introducing more relief for small business. Effective January 1, the small business tax threshold — the amount that businesses can earn and only be taxed at the current 2.5 percent small business tax rate — will rise from $400,000 to $500,000. That will make British Columbia's threshold the highest in the country. It will save small businesses a total of about $20 million a year.

On top of that, today we are restating our commitment to eliminate the small business income tax entirely. We will lower the rate to zero percent in April 1, 2012, as part of our broader plan to ensure that B.C. is ahead of the curve in creating a stronger, more competitive economy.

In total, this budget provides over $400 million a year in income relief for individuals, families and small businesses when the commitment to eliminate the small business tax is fully implemented. That is in addition to the series of reductions on personal, business and corporate taxes since 2001. Compared to eight years ago, a family of four earning $70,000 a year is now paying $2,000 a year less in a taxes.

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Once the changes in this budget are implemented, individuals in British Columbia will enjoy the lowest provincial personal income taxes in the country on earnings up to $118,000. In fact, the tax cuts that we have made since 2001 have resulted in an additional 325,000 people no longer paying B.C. personal income
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tax, including those earning incomes of up to $18,800 a year. Even with the HST, B.C. will still have the second-lowest overall tax burden in Canada. All indications are that B.C. will be growing again by the time the HST takes effect in 2010.

Fourth, I am accepting a recommendation made to me in a meeting with representatives of the tourism sector. In addition to the funds that we are currently committed to for marketing British Columbia as a world-class destination, we are adding $39 million for this fiscal year to ensure that we maximize the marketing opportunities that come with our hosting of the Vancouver 2010.

Leading economists are virtually unanimous that moving to the HST is not only the right thing to do but is the best thing that we can do to strengthen our economy. It will give our major employers a competitive advantage, and it is just one of the key initiatives currently moving forward together that will position our province to emerge from the downturn stronger than ever.

These include our investment, along with the federal government and local governments, of nearly $14 billion to speed up work on health care facilities, social housing, roads, schools, post-secondary institutions and other needed infrastructure to create new jobs, new assets in every part of British Columbia.

Since February we have announced some 480 projects, worth $3.4 billion, in communities throughout British Columbia. These include almost 2,000 units of supportive housing for seniors, people with disabilities and those at risk of homelessness, including an innovative housing development for first nations youth and elders in Nanaimo; hospital emergency upgrades in the Kootenays and on Vancouver Island; expansions and safety upgrades at schools around the province; drinking water improvement projects in Kitimat and in Houston; more than $500 million for improvements on post-secondary campuses; and more than $100 million worth of bike paths, walkways and other community upgrades that support healthy lifestyles and a higher quality of life.

The projects currently approved or underway are expected to generate more than 1,100 jobs in the Cariboo region, almost 700 jobs in the Kootenays, 2,900 jobs on Vancouver Island, 4,200 jobs in the Thompson-Okanagan, 2,600 jobs in the north, and more than 10,000 jobs in the Vancouver coast and mountain region. In total, the projects approved to date are expected to create 21,600 direct jobs, and this infrastructure program is still in its first phase.

Over three years we expect to see a total of 88,000 jobs — jobs that will pay bills and put food on the table. Going forward, these jobs and the spinoff benefits they create will help British Columbia out of recession and provide a sense of stability and confidence we can build on for the future.

Another key advantage we're continuing to build on is our status as the gateway to the Asia-Pacific. We're leveraging our geographic position to draw more business and investment from Asia and to strengthen our trading relationships and build new markets for our exports. These efforts are already paying off. Exports to China and South Korea have doubled since the turn of the millennium. Exports to China alone were worth more than $2 billion in 2008. Although our economy is still closely tied to the fortunes of the United States, our growing links to Asia will serve us well in the months and years ahead.

Most Asian economies are already shaking off the effects of the recession and returning to more robust growth at a time when the economies of western nations are forecast to continue shrinking. As demand ramps up again in Asian nations, we should see even more, even better growth in B.C. exports, the primary drivers of our province's economic growth and prosperity.

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The third key advantage we have in this province is British Columbia's leadership on climate change and our growing expertise in the field of green technology. This sector now includes more than 250 companies, providing jobs for more than 3,500 people, and it has incredible potential for growth. That's why the province will continue to invest in research and development in areas such as solar, geothermal, tidal, wind and bioenergy.

Since 2008 our innovative clean energy, or ICE, fund has approved investments of over $47 million in projects across B.C. to help develop clean, renewable energy technologies. With this budget, we are taking steps to keep that momentum going.

Currently the ICE fund is supported by a levy on people's monthly energy bills. With the introduction of the HST, that levy will disappear, but we will continue to support the ICE fund. We will review its budget each year to ensure that it is funded in accordance with its mandate.

As part of our economic stimulus package, we are also making new investments to support related education and research. This includes $21.8 million for new technology projects at the University of Northern B.C. to convert wood waste into clean energy and to improve energy efficiency.

There's $27.6 million for a campus expansion at Okanagan College — which, as you know, includes construction of a centre for green building technologies — and $7.8 million for the energy house project at Northern Lights College in Dawson Creek. Energy house, which has significant support from private business, will specialize in LEED platinum education and research, with a focus on alternative energy.

With these investments, we are working to ensure that B.C.'s green technology sector can continue to grow and thrive and deliver new solutions for people and businesses right around the world.

With this budget, we are also moving forward with another critical, long-term initiative: reconciliation with
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first nations. The Maa-nulth treaty, formally approved by the federal government in June, is the first modern-day treaty concluded on Vancouver Island. It holds great promise for the social and economic future of the Maa-nulth people. This budget commits $31 million to support the treaty's implementation.

As noted in last week's throne speech, we will continue to pursue new treaties, as well as agreements on benefit-sharing, recognizing that land claims settlements bring a sense of certainty that attracts new investment and encourages new economic growth.

Of course, we have another great opportunity on the horizon as well. In less than six months' time, B.C. will host the world at the Vancouver 2010 Olympic and Paralympic Winter Games. With 7,000 athletes and coaches, a quarter of a million visitors and three billion television viewers, we have a once-in-a-lifetime chance to showcase our strengths, our talents and our advantages.

Look at what happened with Expo 86. During the lead-up, we witnessed the same kind of protests and doom-and-gloom prediction that we've seen in recent months from Olympic detractors. But today it's crystal-clear that Expo was a critical turning point in B.C.'s history, supporting us in taking our place on the world stage and serving as a catalyst for growth and prosperity. Hosting the Olympics will provide an even greater boost, just as the world economy is emerging from recession.

There will always be pessimists among us, and there is no question that this budget update includes some very difficult choices. Faced with the loss of nearly $2 billion in expected revenues this fiscal year alone, we simply cannot continue to fund everything we have in the past.

The last 12 months have been extremely tough, and the road ahead will have some bumps. But British Columbia has been through its share of difficult times in the past. No matter how great the challenge we face, we know that together we can emerge from it stronger and more resilient than ever. With this budget, we are making sure we support people through difficult economic times by protecting the services they need and rely on.

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We have tightened spending dramatically in non-essential areas and accepted the need to run temporary deficits in order to ensure that British Columbians still have the health care, education and social services that are such a critical part of the quality of life in B.C.

Through our accelerated capital spending, we're keeping thousands of people employed, building and improving the province's infrastructure. With our changes to the tax system, we are continuing to foster a climate in which our businesses and industries will have a real competitive advantage over their counterparts in other jurisdictions. We are building on our past record of sound fiscal management, income relief for families and businesses, and steps to ensure that we keep our debt affordable. We are well positioned to take full advantage of the economic recovery to come.

Will it be easy? No, it won't. Will we come out of it stronger than ever? Yes, we will. We are living in a time of change — some would say unprecedented change — when things that once seemed certain have been shaken to their very foundations. We, along with the rest of the world, are in a time of great transition, but with enormous change comes enormous opportunity, and it is up to us to envision and create the future we want to build for ourselves and for the generations yet to come.

We have many strengths as a province, but none is greater than the spirit of our people. It is that spirit — the spirit of determination and ingenuity, of courage and confidence in the face of adversity — that is the spirit that has always set this province apart. And it is that spirit that will guide British Columbia into the future of renewed prosperity.

B. Ralston: One word — confidence. That's what the Finance Minister said it came down to last February. As the minister caps off a summer of deception with a budget that undermines the legitimacy of his government, the public's confidence in the government has been completely undermined.

Before the election, the government promised that the budget deficit for this year would not exceed $495 million. They said they would protect vital public services like health care and education. Despite clear warnings from leading economists that their pre-election numbers didn't hold water, the government refused to admit they were going to break the Premier's promises until after the election, and they attempted to label anyone who questioned the believability of their promises a fearmonger.

Now, after months of constantly shifting stories from the Premier and his Finance Minister, with today's budget we are learning the truth about just how misleading the B.C. Liberal election platform was. With this budget, the government is breaking its most fundamental commitments to British Columbians.

The Finance Minister claims he was brutally deceived by the economic downturn despite the fact that leading economists were warning him for months that his assumptions last February didn't hold up. No one accepts that excuse. Now, because of the government that hid the truth about the size of its deficit, British Columbians are being forced to pay the price with higher taxes and deep cuts to public services.

We need only to look at the measures outlined in this budget to see that it is an admission both of the government's deceit and of its economic incompetence. Before the election, the government promised to protect vital public services. Today we learn their true intentions.

The government promised to protect health services, but today's budget doesn't have one extra penny for
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health authorities. There's nothing for health, other than recycled spin, and over the coming months thousands of surgeries will be cancelled.

The government promised to protect education, but now the minister is clawing back grants to maintain our schools. When increased costs are taken into account, this budget cuts funding for education.

This isn't about the opposition or the government, about one party or another, about left versus right. It is about the legitimacy of government. It's about the public's faith in the institutions that govern us all, and that faith has been shaken and shattered.

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Yesterday I put forward a positive step to help return openness to government budgeting, modelled on the Prime Minister's accountability package, but the Finance Minister dismissed the model of an independent budget officer out of hand. I was disappointed, but I can't say I was surprised, Mr. Speaker, because for all their nice and lofty promises, the government has shown time and again that they can't be trusted and they don't want to be held accountable.

Just look at the government's history when it comes to budget deceptions. In 2008 they put forward a so-called green budget that is now just a distant memory. The government has eliminated tax incentives for sustainable products like energy-efficient appliances. With today's budget, they're reducing the eyes on the ground to protect the environment.

In 2007 the government had their housing budget, but since then, thousands more people are living on our streets, and they're cutting funding for housing in this budget.

In 2006 the government had a children's budget. They haven't done anything to address British Columbia's shameful record as having the worst child poverty in the country.

In 2005 the government had a seniors budget, but they have forced seniors from their homes. With this budget, seniors programs will be slashed over the coming year, and more long-term care beds will be closed.

But all the government's previous broken promises pale in comparison to this, concrete proof of the government's pre-election budget deceptions. The legacy of eight years of the government's mismanagement is a province deeply divided between rich and poor, rural and urban, young and old — a province where the potential economic benefits of economic growth were squandered, leaving British Columbians ill-prepared to cope with the inevitable downturn that has come.

Today's budget does nothing to change direction, but we can do so much better. Despite years of neglect at the hands of this government, British Columbia has so much to offer — unparalleled resource wealth, ethnic diversity, a highly skilled workforce, some of the most creative entrepreneurs in the world.

But this budget doesn't set out the way forward. It tries to lay out yesterday's solution to tomorrow's problems. This government says that they're facing the greatest economic crisis of our generation, but all they have to offer is a new regressive tax and hikes to MSP premiums.

It makes families, consumers and small businesses pay for the government's deceptions with deep cuts to public services. It sacrifices the long-term investment we'll need to emerge from the downturn stronger to cover up for the government's mistakes. It is a budget as flawed and dishonest as the government that wrote it.

Mr. Speaker, I will have much more to say about this budget tomorrow. In the meantime, I move adjournment of the debate.

B. Ralston moved adjournment of debate.

Motion approved.

Introduction and
First Reading of Bills

BILL 2 — BUDGET MEASURES
IMPLEMENTATION ACT (No. 2), 2009

Hon. C. Hansen presented a message from His Honour the Administrator: a bill intituled Budget Measures Implementation Act (No. 2), 2009.

Hon. C. Hansen: I move first reading of Bill 2, the Budget Measures Implementation Act (No. 2), 2009.

Motion approved.

Hon. C. Hansen: Bill 2 is divided into two parts. Part 1 contains the non-tax measures in the September budget update, and part 2 contains the tax measures. In part 1, Bill 2 extends the period during which deficit budgets can be presented to the Legislature from two years to four years.

The Continuing Care Act and the Hospital Insurance Act are amended to enable the Minister of Health Services to set appropriate rate structures for residential care services.

Bill 2 amends various acts to ensure the promotion of tourism is maintained and seamlessly transferred to the Minister of Tourism, Culture and the Arts. Part 1 also includes a number of housekeeping measures.

Supplementary estimates will now be automatically included in individual ministerial spending accountabilities. March 2, 2010, is designated as the date for presenting the 2010-2011 estimates to ensure that budget day will not coincide with the 2010 Olympic and Paralympic Games.

The September estimates are designated as the new main spending estimates for 2009-2010 for planning
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and reporting purposes. Private members that are appointed to Treasury Board will now have full status as voting members.

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Part 2 of Bill 2 implements the tax measures announced in the September budget update. The Income Tax Act is amended to implement the following changes: effective January 1, 2010, the basic personal tax credit will increase to $11,000, and similar increases are made to the spouse and equivalent-to-spouse credits; the small business corporate income tax threshold is increased to $500,000 from $400,000; and the mining flow-through share tax credit is extended to the end of 2010.

Effective July 1, 2009, the basic training tax credit for employers is doubled, and on January 1, 2010, the renewable fuel standard comes into force. From that date, the total volume of gasoline and diesel-class fuels sold in the province must contain an average of 5 percent renewable fuels. In response to the new standard, the Carbon Tax Act is amended to impose the tax on renewable fuels. However, this is offset by a 5 percent reduction in the carbon tax rates for gasoline and diesel fuel to reflect the renewable fuel content.

Various other amendments are made to clarify the tax treatment of natural gas and to make other technical amendments. The Motor Fuel Tax Act is amended to reflect the introduction of the renewable fuel standard on January 1, 2010. On that date, ethanol and biodiesel will be taxed at the same rate as the fuels with which they are blended or as gasoline or diesel fuel, if sold unblended.

Bill 2 also amends the Social Services Tax Act to clarify tax treatment of leased property that becomes real property, and the Assessment Act is amended to maintain the 2009 valuation date for pipelines and other continuous structures for the 2010 taxation year.

I move that Bill 2 be placed on the orders of the day for second reading at the next sitting of the House after today.

Bill 2, Budget Measures Implementation Act (No. 2), 2009, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.

Tabling Documents

Hon. C. Hansen: I have the pleasure to rise and table the September Budget Update 2009-10 to 2011-12, which fulfils the requirements of section 7 of the Budget Transparency and Accountability Act.

I table, on behalf of the ministers responsible, the government's overall strategic plan and service plan requirements under the Budget Transparency and Accountability Act.

I have two packages that I will pass forward to the Clerk. The first package contains the service plans for the Office of the Premier and 20 ministries. The second plan contains the service plans for 28 Crown agencies.

The second package also includes a list of organizations that are exempt from the service plan requirements under section 13 of the Budget Transparency and Accountability Act. In addition, to meet the requirements of that act, the second package identifies organizations that are receiving or losing exempt status together with the reasons for these changes.

Finally, this section identifies an organization that has been added to the government reporting entity by regulation, with an explanation for that addition.

Hon. M. de Jong moved adjournment of the House.

Motion approved.

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

The House adjourned at 3:09 p.m.

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