2011 Legislative Session: Third 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, February 15, 2011

Afternoon Sitting

Volume 20, Number 4

[ Page 6295 ]

TUESDAY, FEBRUARY 15, 2011

The House met at 1:34 p.m.

[Mr. Speaker in the chair.]

Routine Business

Statements
(Standing Order 25B)

PATHWAYS PROGRAM AND
COMMUNITY LIVING SERVICES

S. Fraser: I met with a wonderful group in Port Alberni recently, and I made some wonderful friends too. Pathways is a recreational and social drop-in centre developed and hosted by the Port Alberni Association for Community Living. It has grown steadily and impacts the social aspects of its members' lives in a very, very positive way. Pathways members can choose to just hang out with friends or get involved in jam sessions, games, theme parties, movies, crafts and arts or whatever else members dream up.

When I visited Pathways, I had a great time, and I also learned a lot. I learned a lot about their networking with other self-advocacy groups. Through that and through research, those concerned individuals within the developmentally disabled community are seeking to gain more control — more control out of their lives.

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The self-advocacy caucus and its supporters keep members abreast of issues impacting their lives by bringing in speakers on a variety of subjects like emergency preparedness, affordable housing, democratic voting processes. They have even learned about assertive communication skills and problem-solving, barriers in the community, and they helped educate me.

Pathways and the self-advocacy peer support programs are funded predominantly through a grant from B.C. Gaming, for which they are very, truly grateful. Keep those grants coming and raising.

I learned advocacy and persistence from the group. They taught me well. We are all a better community because of groups like Pathways who are taking control of their lives and having a good time while doing it.

The program can be best described by a parent of two Pathways members: "Pathways has filled a void in the social lives of its members, and all who attend benefit from the empowering and accepting feelings generated from the program." Thank you, Pathways, for empowering and accepting me.

ROLE OF NON-PROFIT SECTOR

L. Reid: I rise today to pay tribute to the Richmond Committee on Disability and two individuals who continue to lead the way: Frances Clark and Ella Huang.

I want to talk about seeing the non-profit sector as an employer. This sector contributes an enormous amount to public life in British Columbia. The sector has a substantial economic presence, contributing 6.9 percent of the province's GDP and employing 7 percent of the provincial workforce. The non-profit sector employs more than 147,000 British Columbians, 23 percent of whom work in hospitals, colleges and universities.

The non-profit sector reports about $3 billion a year in revenue from provincial government sources, accounting for one-third of the sector's total revenues. The sector contributes an additional $6 billion into the provincial economy. Not included in this equation is the monetary value of over 114 million hours in volunteer time mobilized by the sector, the equivalent of 69,000 full-time employees.

In addition to its economic contribution, the non-profit sector plays an essential role in creating engaged and vibrant communities. Most of the 22,000 non-profit societies in British Columbia serve local and/or regional needs, operating at a grass-roots level where they're able to galvanize communities through philanthropy and volunteerism. Some 82 percent have average revenues of less than $250,000 annually, yet they account for 65 percent of the province's volunteers.

From drug counselling to giving employment advice, from providing housing to child care, the non-profit sector delivers a range of public services to meet British Columbia's health and social service needs. Their ability to reach out is one of their strengths, putting needs of individuals at the heart of the discussion and the heart of the delivery with a citizen-centred focus.

The sector has a unique ability to mobilize voluntary contributions of time and money and to provide leadership at the community level, leveraging trust and credibility to deliver programs that are tailored to the people and communities that need them.

A viable non-profit sector is critical to the province's ability to deliver support programs and meet the significant social challenges affecting our communities today.

DELTA FARMLAND AND WILDLIFE TRUST

V. Huntington: Today I'd like to recognize the Delta Farmland and Wildlife Trust, a dedicated group of Delta farmers and conservationists who do an amazing job of conserving agricultural and wildlife resources in Delta South.

The trust was founded in 1993 to promote sustainable land stewardship and a way of preserving the farmland and wildlife habitat so critical to the survival of the Pacific migratory bird flyway. Delta's rich soils and favourable climate make it one of Canada's most
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productive farming areas. The farmland, in turn, supports the millions of birds that travel through the Fraser River delta during fall and spring migration.

Delta is one of the five most important river estuaries on earth. However, development, diking and drainage have caused the loss of 70 percent of the original wetland habitat. Urban encroachment and industrial development are chewing up the remaining farmland. Significant areas of Delta South are being lost, and unless something is done to halt the loss of agricultural land, the capacity of the delta to grow food or support wildlife will disappear.

The Delta Farmland and Wildlife Trust brings environmental and agricultural interests together as partners in stewardship and offers research, education and financial incentive programs that support land stewardship activities.

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Each year the trust provides farmers with $325,000 through its stewardship programs, funding used for 500 acres of grassland set-asides, hedgerows and grass margins, and 3,000 acres of winter cover crop, all critical to the survival of wildlife.

Will the members join me in applauding the Delta Farmland and Wildlife Trust for its efforts to protect this ecologically valuable piece of British Columbia.

SCOUT-GUIDE WEEK

H. Bloy: It is my pleasure to rise and speak about scouting and guiding. Next week Scouts Canada and Girl Guides of Canada come together in the spirit of friendship to honour their shared heritage, with Scout-Guide Week.

In 1907 Robert Baden-Powell conducted a grand experiment. He discovered that the military manual he wrote, Aids to Scouting, was being widely used by teachers and youth organizations. Intrigued, he wanted to witness firsthand how lessons he had learned in his military career — including honour, friendship, teamwork and dedication — could help mould leaders of tomorrow and literally make the world a better place.

He hosted a camp on Brownsea Island for 22 local boys. This grand experiment exceeded beyond Baden-Powell's wildest dreams. In Canada over 78,000 boys and girls and 24,000 volunteer leaders continue to carry on this tradition of scouting.

Every year we recognize the life and importance of Lord and Lady Baden-Powell and the legacy they left behind. And what a legacy it was, colleagues. More than 500 million boys and girls all over the world have participated in scouting and guiding.

Scout-Guide Week is also a chance to recognize the endless potential of our Canadian youth and the steps they will take with scouting and guiding that will transform them into our nation's future leaders. In Canada over 50 percent of all elected officials and business leaders have participated in scouting and guiding. I know many of my colleagues have participated, and their children, especially my colleague from Parksville-Nanaimo. His son has been in for a number of years.

I ask all members of this House to join me in wishing Scouts Canada and Girl Guides of Canada a great week.

VICTORIA HONORARY CITIZENS AWARDS

R. Fleming: Last month I was privileged to attend the city of Victoria Honorary Citizens Awards ceremony. Victoria city council recognized 14 exceptional citizens as honorary citizens for their service to and enrichment of this community, and I'd like to share recognition with the House today of these 14 extraordinary individuals who are the city's 2010 honourees.

For arts and culture volunteer, the tireless Deedrie Dawn Ballard was awarded. For community volunteer, Ronald Butlin, who has made Victoria Day and Christmas Day parades an incredible annual spectacle in our community.

For business and philanthropy, Mr. Gordy Dodd — who probably needs no introduction for anyone who watches television — who gives so much to the hungry in our community during the holidays.

For youth and community volunteer, the impressive Jeneece Alexandra Edroff. For senior and community volunteers, a wonderful couple who advocate for seniors, Max and Clara Halber.

For architecture and heritage, a significant architect of our city, a signature architect, Mr. Alan James Hodgson. For extraordinary leadership, the hon. Ted Hughes and Helen Hughes. For arts and culture in First Nations, Chief Tony Hunt. For arts and culture, poet Wendy Morton.

For multiculturalism, Richard Nakamura, for his service in securing redress for interned Japanese Canadians and strengthening our nation's friendship with Japan. For social issues, Dr. Bernadette Pauly, and for environment and education, the outspoken and committed Dr. Calvin Sandborn of the UVic Environmental Law Centre.

These 14 honourees have gone above and beyond the call of a community member and citizen, and they're all truly extraordinary and valued, eminent people in our community. I ask the House to join me in congratulating them on their recognition.

BREAKFAST CLUBS OF CANADA

G. Hogg: An Angus Reid survey recently found that 78 percent of Canadians believe that a healthy breakfast improves a child's ability to learn, and research certainly supports that finding. Poor nutrition leads to poor
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learning — not at all surprising to anyone in this House. Breakfast Clubs of Canada, founded by Daniel Germain, is responding to these findings.

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It is a national organization that this school year will provide over 28½ million breakfasts to over 174,000 children in almost 1,500 schools across our great country, and 742,000 of those breakfasts will have been served in British Columbia to 4,500 children in 45 programs.

Breakfast Clubs of Canada do, with the support of individual and corporate sponsors, provide a great service. They are all committed to the vision of feeding our children's future. It is their dream that all children will have an equal chance to start their school day with a nutritious breakfast in an environment that provides self-esteem.

Breakfast Clubs of Canada is currently working with British Columbians to establish a chapter in our province. I congratulate Grand Chief Ed John, Pierre Gratton, Richard Prokopanko, Catherine Van Alstine, Lori Nikkel, Renee Wasylyk and Martine Quevillon for their leadership in the development of a stronger B.C. presence and for their focus on high-need, rural and aboriginal communities.

I ask this House to recognize and thank these people at Breakfast Clubs of Canada for their support in helping to provide a healthy start to each school day for each student.

Oral Questions

INVESTIGATION OF
MEDICAL SCAN INTERPRETATIONS

D. Black: Recent failures related to three radiologists have shaken the confidence of British Columbians, failures that happened on the watch of two successive Health ministers. The former Health Minister knew about concerns in 2008. The government has known about the investigation for four months.

My question is to the Premier. Why didn't the B.C. Liberals take action? Why did they keep the public in the dark?

Hon. C. Hansen: I share the member's concerns on this particular issue. We want to make sure that British Columbians have the confidence that every doctor that is practising in British Columbia has the training, the experience and the credentials necessary for the services that they are providing. So it was concerning when I was advised of this last week.

We took action immediately. I launched an investigation by Dr. Doug Cochrane to, first of all, make sure that a review is done in terms of all of the radiologists in British Columbia, to be able to give British Columbians the assurance that radiologists practising in this province do have the appropriate credentialing and training and experience and also to get to the bottom of the reasons behind the timelines that we have seen. I expect Dr. Cochrane to report publicly on his findings.

Mr. Speaker: The Leader of the Opposition has a supplemental.

D. Black: The people of B.C. are deeply concerned. They're asking — and they're asking with a lot of validity — if this is just the tip of the iceberg. Two health authorities knew about this in October.

Again to the Premier: if the health authorities who report to the minister knew about the failures in October, how could the government not have known?

Hon. C. Hansen: As I indicated earlier, the ministry was informed of these issues less than ten days ago. I took immediate action to thoroughly investigate what the health authorities were aware of.

I think what's most important is that the health authorities have identified patients whose analysis of their CT scans may not have been adequate to fully determine the medical course that would have to be followed. Those patients are being followed up on a priority basis, and we are ensuring, through the work of Dr. Cochrane, that we get to the bottom of this as quickly as possible.

Mr. Speaker: The Leader of the Opposition has a further supplemental.

D. Black: Four months ago — four months ago — the health authorities knew, and the minister is saying he's only known for ten days. That raises a lot of questions. British Columbians are deeply worried, but the results of this review are months away.

So again to the Premier: what specific steps have this government taken to ensure that patient safety won't be compromised by the delay?

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Hon. C. Hansen: I've answered that, but I will answer it again. As soon as the ministry was informed of these cases, they took immediate action to determine exactly what the health authorities knew.

We appointed Dr. Doug Cochrane, who is known for his expertise in patient safety matters, and as a first priority, he will make a determination to reassure the public within 30 days that all of the radiologists that are practising in British Columbia today in fact have the training, experience and credentials to perform the kind of analysis that they are undertaking on behalf of patients in British Columbia.

He will further do an investigation around the timelines of what health authorities knew, when they knew it and what actions they took on a priority basis to make
[ Page 6298 ]
sure that these issues were dealt with as quickly as possible. He will report out within six months on that, but Dr. Cochrane will certainly be working to ensure patient safety and quick action to make sure that those patients that need further medical tests and attention are dealt with on a priority basis.

S. Hammell: The public is shocked — shocked and appalled — by these revelations. They want to know how such neglect could have gone on in B.C. without the current Minister of Health knowing about it. Three radiologists, three separate breaches involving thousands of patients in Powell River, the Fraser Valley and Comox. A former Minister of Health and candidate for leader knew and did nothing.

It was the B.C. Liberals who restructured the health authorities and handpicked the board members. My question is to the Minister of Health. What action has the minister taken to ensure that the health authorities and the handpicked board members are now informing him of issues critical to the public health?

Hon. C. Hansen: First of all, any communication that came into the office of the Minister of Health or into the ministry was followed up on appropriately. I will repeat for a third time, because I think the member may not have heard my earlier two occasions when I answered that question.

Once we were aware of these issues, we appointed Dr. Doug Cochrane to do a thorough review of all of the issues around this, first of all to ensure that the issues around patient safety and appropriate medical treatment are dealt with on a priority basis but also to get to the bottom of the timelines around this information coming out and the timelines around which it was communicated to the ministry.

Mr. Speaker: The member has a supplemental.

S. Hammell: I'm asking the Minister of Health to tell us how he is now being informed. Obviously, he wasn't informed, and we are asking him how he is now being informed. Four months passed without the minister knowing about this breach in care. Four months passed before an inquiry was initiated.

Again to the minister: does the minister agree that this four-month delay in starting the inquiry, caused by the health authorities not informing him of the crisis, was justified and served the public interest?

Hon. C. Hansen: I think the member is jumping to conclusions without facts. That is exactly what Dr. Cochrane will be looking at. He will uncover all of the information and the fact base around this, and he will share it with the member at the same time that it is shared with the general public.

The member is right to be concerned. I, too, am concerned. We want answers which are not there today, and that is exactly why Dr. Cochrane will be looking at these issues. But I caution the member not to start jumping to conclusions about what should have been done in the past, before we have all of that information.

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N. Simons: The conclusion that the people in Powell River have come to is that this government dropped the ball. So 2,300 scans were done since 2002, and this government just found out ten days ago that the doctor wasn't qualified. Well, who dropped the ball, and what are they going to do to fix it, beyond some cursory little report?

Hon. C. Hansen: There was a thorough review done by Vancouver Coastal Health. There were radiologists that came in and reviewed all of the scans that had been done during the time period in question. It was determined that of the thousands of scans that had been done, about 150 of them had been improperly interpreted.

That was a tremendous amount of work that was done by other radiologists to do new interpretations of those thousands of scans, to produce those reports and then to analyze those reports against those that were prepared by the radiologist in Powell River.

Of the 150, it is estimated that about 30 patients may need follow-up medical attention based on the discrepancy in the interpretation. That is being done, and those patients are being cared for on a priority basis for the medical needs that they may have that flow from the accurate interpretation of the scans.

Mr. Speaker: The member has a supplemental.

N. Simons: Since October patients in Powell River were referred to St. Joseph's in Comox, and we find out just this week that they were subject to the same problems in Comox. Now, this has definitely shaken the community. There are a lot of people affected. The minister might say that it's just 4 percent or so, but this is a lot of families that are impacted by misdiagnosis, and shaking the public's confidence in the health care system has a significant effect.

I think that this minister needs to recognize the impact of this, do more than just look at the cursory problems surrounding this and go into the systemic problem. The systemic issue is that since 2002 you've had unqualified doctors performing medical diagnoses for which they're not qualified. That's fundamental to the health care system, and this government has failed to manage it properly.

What does the minister have to say to the people of Powell River, of Comox and of Abbotsford to explain how they're going to prevent this kind of thing from happening in the future?
[ Page 6299 ]

Hon. C. Hansen: What the member is suggesting is exactly what is happening. That is exactly what Dr. Cochrane is doing. He is actually looking not only at what happened but at how we can ensure that it never happens again.

My heart goes out to those families and the individuals who are going through this added anxiety. You know, anybody who has to have a CT scan done in the first place is obviously going through an emotional time in their lives — not only them but their families as well — and now to have this added anxiety added on top of that must be very troubling for those families. My heart goes out to them, and I have apologized to them for what we are putting them through again.

The action that we have taken is to make sure that we not only find out what happened and how it happened but to make sure that it never happens again.

GOVERNMENT ACTION
ON POVERTY REDUCTION

M. Karagianis: This January the Representative for Children and Youth released a report into the deaths of 21 infants. After examining the tragic loss of those children, the representative's number one recommendation was the development of a child poverty plan that identifies strategies to address all aspects of child poverty in this province.

So my question is to the Minister of Children and Families. Will this government develop a child poverty plan, as requested by the Representative for Children and Youth?

Hon. M. Polak: I am very pleased to let this House know that as a result of targeted investments that have resulted in job creation, lower taxes and lower costs to families, the child poverty rate in British Columbia is now at its lowest rate since 1980. We have seen in British Columbia….

Interjections.

Mr. Speaker: Members.

Continue, Minister.

[1400]

Hon. M. Polak: In British Columbia we have seen the fastest rate of decline in child poverty of any province in Canada, and there is only one reason why British Columbia's poverty rate is last in Canada. That's because of how high it grew during the time of the NDP.

Interjections.

Mr. Speaker: Members.

The member has a supplemental.

M. Karagianis: Well, it is very sad that this government repeatedly and consistently refuses to accept the issues of poverty in this province that face children. The independent Representative for Children and Youth has made it very clear that we need a poverty reduction plan to protect vulnerable children. In her report she says that these children, these 21 children and their families, are living in deep intergenerational poverty with devastating effects on their lives.

The services are not there for them. It's essential that there be a plan. Seven other provinces in this country have got a plan, and yet this government refuses to take action. So once again, to the minister: when will this government get to work on a poverty reduction plan with timelines and with clear targets and put this plan into legislation? When?

Hon. M. Polak: There is no question that the best plan to elevate a family out of poverty is to make sure that they have a way of earning a living. We had a target of creating jobs. We've created jobs. We had a target of lowering costs for families. We've done that. We had a plan for lowering taxes. We've done that.

All that a child could expect during the 1990s was that they had a one-in-ten chance of living in a family that was on welfare. That was a shameful record, and I'm so proud that that is not being repeated under this government.

S. Fraser: The minister's platitudes and vague assurances are small comfort, and they're not good enough. The reality is that seven provinces and territories in this country already have a poverty reduction plan in place. We're the worst in the country, and we have nothing. That's shocking. The reality, regarding what the minister was saying, is that for many children in this province, it's been a lost decade for them and their families. That's been the legacy of this government.

The representative has asked the government to make a progress report on the progress on child poverty reduction by June 1 of this year. It's a very clear recommendation. Will the Minister of Children and Families commit to meeting that deadline?

Hon. M. Polak: We have the lowest child poverty rate in British Columbia since 1980, according to Statistics Canada. As a result of the investments we've made, we've had the fastest decline in child poverty of any province in Canada — 46 percent since 2003. That is in stark contrast to the time in British Columbia when child poverty reached its peak, and that was in 1996, at 18.1 percent.

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Mr. Speaker: The member has a supplemental.
[ Page 6300 ]

S. Fraser: This is why we have an independent child's advocate in this province. It's to try to get around this spin from this government.

One in five children is growing up in poverty in this province, and that's a shame under this government. Seven years in a row we've had the highest child poverty rate in the country.

In her report Mary Ellen Turpel-Lafond presents the case of two toddlers and an infant living in a home infested with mould. The minister should be familiar with this. It's in the report. A social worker urged B.C. Housing to give the family priority on a waiting list for housing because the children were frequently sick with the mould. A year later the family was still wait-listed for housing. They moved into a motel, and shortly after, as the minister knows, the infant died.

Again to the minister. These are real people, real children. Will this government commit today to delivering a child poverty plan which includes measures to address housing for families in poverty, as recommended by the children's representative?

Hon. M. Polak: The death of an infant is always, always tragic and terrible, not only for families but for communities. When it's a sleep-related infant death, that tragedy is compounded by the very difficult circumstances that leave us with many unanswered questions.

My deputy and I have met with the representative. We've discussed the report. We are meeting together with her office in terms of addressing the recommendations. Many of those are already underway as a result of a previous coroner's report.

What is most troubling to me is that while my ministry, the Representative for Children and Youth, stakeholder groups and aboriginal leaders all have a shared goal of ensuring that British Columbia's children and families are strong, safe and supported, the opposition continues to fly in the face of Ted Hughes and continues to politicize child protection in British Columbia.

REFERENDUM ON HARMONIZED SALES TAX

S. Simpson: The one consensus in our province on the harmonized sales tax is the need to end the uncertainty and resolve this matter by expediting the vote on the tax. This view is shared by both opponents and proponents of the HST, including the front-running Liberal leadership candidates.

We on this side are prepared to fast-track legislation over the next two days to change that vote to June 24. Will the Premier stand with British Columbians today, regardless of their view on the tax, and order that change?

Hon. C. Hansen: There is legislation that was passed by this House, the Recall and Initiative Act that was passed in the early 1990s, which sets out the process that has to be followed by government should there be a positive result from an initiative petition drive in the province. This government is living up to its obligations under that legislation.

Mr. Speaker: Member has a supplemental.

S. Simpson: We know the Premier arbitrarily changed the rules on that act himself, so it clearly can be changed. We're prepared to change it in the proper way. The opposition leader will introduce legislation to make that change tomorrow, and we are prepared to pass that bill in one day.

All the front-running Liberal leadership candidates have said they want to change the vote to June 24. So the question to the Premier is this. Does he have confidence in the word of the people who want his job, and if he does, will he make one more important decision in his last few days in office and make that change to the legislation now?

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Hon. C. Hansen: I have confidence in the people of British Columbia. I have confidence.…

Interjections.

Mr. Speaker: Minister, just take your seat.

Continue, Minister.

Hon. C. Hansen: I have confidence, Mr. Speaker, that on the day that the referendum is held, every British Columbian who is eligible to vote will have the opportunity to vote either to keep the harmonized sales tax in place or to go back to the old PST and GST system that we knew before.

This is a government that has said we will respect the decision that is made that day. If 50 percent plus one of those who come out to vote, vote to go back to the old PST system, we will in fact make that happen.

We have legislation in place, we have a process in place, and we will live up to our obligations as a government to follow the letter of that law.

Mr. Speaker: The member has a supplemental.

R. Fleming: I'm having a difficult time understanding the reluctance of this government to do the right thing that British Columbians want, which is to move up the referendum date from September to June. Apparently, every candidate to be the next leader of the B.C. Liberal Party supports that position — that the date of the referendum be moved up to June.

So the question for this government and this Finance Minister is: why should small business, why should new homebuyers, why should unemployed people in the construction sector, restaurants facing closure and laying off workers…? Why should they wait for the
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outcome of the B.C. Liberal leadership race, when the government could commit today to schedule the HST referendum in June and do what the people of British Columbia have asked and want from them?

Hon. C. Hansen: Every week that goes by since last July 1, when the harmonized sales tax was brought into effect, we see small businesses around British Columbia that are benefiting from the harmonized sales tax being in place.

We see restaurant owners around British Columbia that are pushing forward with the renovations to their restaurant. Why? Because they can actually do it less expensively under an HST, to the benefit of their customers. That's creating jobs.

If you start looking at the mining sector in British Columbia today, the forest sector in British Columbia today, there are jobs being created in those sectors because the harmonized sales tax is in place today.

You've got companies, big and small, who are creating jobs and making investment decisions in British Columbia because as of July 1 last year, when the HST came into effect, this is a better place in Canada and in the world to do business than it was before.

Mr. Speaker: Member for Victoria–Swan Lake has a supplemental.

R. Fleming: The question again is…. Regardless of who inherits this tired government, regardless of who inherits it, all of the candidates who seek that position have said it is a good idea to move up the date for the referendum to June to give the economy certainty when it so dearly needs it, to stop the bleeding of jobs across British Columbia related to the ham-handed introduction of this tax.

Interjections.

Mr. Speaker: Members.

R. Fleming: The question for the minister today….

Interjections.

Mr. Speaker: Just hold it.

Members.

Continue, Member.

R. Fleming: Will the Minister of Finance not hide behind some excuse that Elections B.C. may be forced to offer because they haven't been given the capacity to hold the referendum in a timely manner? Will he give them the funds, the means, send the signal in the legislative session before Thursday, and pass an amendment to the law to move up the date of the referendum to give certainty to British Columbians?

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Hon. C. Hansen: I can tell you what is certain in British Columbia today, and that's that jobs are being created because of the harmonized sales tax. I challenge the member….

Interjections.

Mr. Speaker: Members.

Just take your seat.

Interjections.

Mr. Speaker: Members.

Continue, Minister.

Hon. C. Hansen: Actually, what we've seen over the last 12 months is a net increase in jobs in British Columbia of over 15,000. Even if you look at the restaurant sector, as an example.... If you look at the latest numbers that just came out from Stats Canada, they show that receipts for the restaurant sector in British Columbia went up by 4.4 percent last year in the months after….

Interjections.

Mr. Speaker: Members.

Hon. C. Hansen: Mr. Speaker, do you remember the dire forecast that we heard from the accommodation and food services sector prior to the introduction of the harmonized sales tax? Well, let's actually start looking at the facts. In January of this year we saw a net increase of 7,000 jobs in the accommodation and food services sector. The month prior we saw an increase of 2,500 jobs. In November, in that one sector alone, we saw an increase of 5,600 jobs.

[End of question period.]

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 Lieutenant-Governor: Estimates of Sums Required for the Service of the Province for the fiscal year ending March 31, 2012, and a supplement to the estimates for
[ Page 6302 ]
the fiscal year ending March 31, 2012, 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.

Mr. Speaker: Continue, Minister.

Budget Debate

Hon. C. Hansen: Today I present Budget 2011. As we promised, given the times that we are in, this can best be described as a status quo budget. It provides the government with spending authority to manage the province's affairs for the coming year. However, it does not set out new directions. That will be in the purview of the next Premier, who will set the course for the next decade of growth and opportunity for this great province.

Compared to the previous four budgets that I have had the honour of delivering in this House, I cannot describe this budget as exciting, but it comes at an extraordinary, exciting time in B.C.'s history. In 11 days we will know who the next Premier of British Columbia will be, and soon we will also have a new Leader of the Official Opposition.

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Later this year the people of B.C. will have their say in a referendum on whether we should keep the harmonized sales tax or go back to the old PST-GST system.

With all of these critical developments yet to come, a status quo budget is the prudent way to go. And today I can confirm that thanks to the work and achievement of the past ten years, we have built a strong foundation for the decade ahead.

British Columbia has weathered the impacts of the recent recession better than almost any other jurisdiction. Look at what's happening south of the border, where more than seven million jobs have disappeared since 2007 and housing values are expected to remain depressed for years to come. Look at what's happening in places like Ireland and Greece, where government finances are in absolute turmoil. They're being forced to slash programs and cut public sector wages and benefits.

Meanwhile, here at home things are looking positive. We've come through the worst economic downturn of our generation without significant permanent damage to the province's economy. Even during the worst of the recession we fared better than most other places, including other Canadian provinces.

In 2009 our economy shrank by 1.8 percent, but that was compared to a 2.5 percent decline for Canada as a whole. Growth picked up in 2010, at 3.1 percent, and we're seeing positive indicators across a wide range of sectors. Exports, housing starts, retail sales and tourism numbers are all on the rise.

Mining is back in a big way, with mineral exploration spending now more than ten times higher than it was at the end of the 1990s. Thanks in part to our accelerated infrastructure program, construction activity surged in the past two years. Employment numbers, while still showing month-to-month ups and downs, have almost returned to pre-recession levels.

That doesn't mean we don't face challenges. We still have work to do to strengthen our economy. But we are on track as per the five-year plan we introduced in September of 2009 to get back to balanced budgets by 2013.

We expect the B.C. economy to grow by 2 percent in 2011, by 2.6 percent the following year and by 2.7 percent in 2013. These estimates are below the average of private sector forecasts, consistent with our always conservative approach to budgeting and forecasting.

In the next three years as the economy continues to gain strength and commodity prices recover, we expect revenues to grow by an annual rate of 3.4 percent with annual spending growth limited to 2 percent, which will require continued fiscal discipline.

With revenues rising faster than spending, the deficit will be eliminated. It is now forecast at $1.265 billion for the fiscal year just ending. That's over 25 percent lower than the $1.715 billion we forecast in last year's budget.

The deficit will fall to $925 million in the coming year and fall again to $440 million in 2012. For 2013 we are projecting a surplus of $175 million. Our estimates include both contingencies to help manage unexpected pressures and a yearly forecast allowance to protect against unforeseen events.

These levels of prudence are collectively valued at more than $2.5 billion. That includes contingencies of $600 million in the year ahead and $450 million in each of the two following years. It also includes a forecast allowance of $350 million for each of the next three years.

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Taxpayer-supported debt will increase, but in the context of the economic growth, it will remain affordable. The debt-to-GDP ratio, the key measure of debt affordability, is forecast to remain below 18 percent.

It is vitally important that the province's debt remain affordable. Before the recession we had managed to reduce debt-to-GDP ratio to 13.4 percent from a high of over 21 percent, and that helped ensure that we had room to manoeuvre. Because we've managed prudently, because in the good times we used extra revenues to pay
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down the debt, we were well positioned when times got tougher.

In 2008 when the impacts of the global economic collapse became clear, we were able to accelerate our infrastructure program to create and sustain thousands of jobs across British Columbia at a time when jobs were desperately needed. Since then, we have committed $5.5 billion to about 900 accelerated infrastructure projects, creating and protecting approximately 35,000 construction jobs. These were definitely not make-work projects. They included building social housing, hospitals, transportation, schools and community facilities — the infrastructure that underpins our quality of life.

They also built on the work we've done through the last decade to open up our province, attract new investment and support public services. Since 2001 capital spending on infrastructure totals more than $45 billion, and that includes approximately $7 billion for health care facilities, equipment and information management systems; another $7 billion for post-secondary education facilities; almost $4 billion for schools in the K-to-12 system; nearly $8 billion for transportation infrastructure, including a major expansion of public transit; over $14 billion by commercial Crown corporations for electrical generation, transmission and distribution projects and the Port Mann bridge/Highway 1 project.

Through the Pacific Gateway alliance, we are also working with partners in the private and public sectors to undertake a $22 billion expansion of port, rail, roads and airport facilities, helping to build B.C.'s reputation as the preferred gateway for Asia-Pacific trade.

We also continue working towards a stronger, more vibrant forest industry, recognizing its central role in supporting so many families and communities. More than a hundred actions recommended by the Working Round Table on Forestry are now underway or completed, helping the sector take advantage of the improving global economy.

We expect revenue from the forest industry to increase by more than $100 million in the year ahead. Although that is still below historical levels, it appears that the industry is on its way to a healthy economic recovery.

The government can't take all the credit for our strengthening economy. We don't create jobs; businesses do. It's the employers, the workers and the innovators out there in all our communities to whom the credit must go.

At the same time, the government has worked hard to create an environment where businesses can not only thrive but play to win in an increasingly competitive global marketplace. That's why we've done so much to streamline and simplify regulatory requirements. Just last month the province was recognized as leading the country in this regard after reducing red tape by 42 percent since 2001.

We also continue to ensure that we have a competitive tax environment for individuals and families as well as for businesses. Since 2001 most British Columbians have had their provincial personal income taxes reduced by 37 percent or more, and an additional 325,000 people no longer pay any B.C. income tax. As a result, we now have the nation's lowest provincial personal income taxes for individuals earning up to $119,000 a year.

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We have also seen, in the last ten years, significant growth in our standard of living after years of decline in the 1990s. That's not the only reversal we've seen, nor is it the only one that we can take pride in.

Towards the end of the 1990s tens of thousands of British Columbians left this province in search of work. Now many of those same people have come home because in the last ten years we've seen B.C. regain its rightful role as a place where they can find jobs and build a future for their families.

They came back, and thousands more moved here because we made B.C. a place where young entrepreneurs, investors and business owners were once again welcome, because they are the job creators. Once again, we saw a province where young people could live their dreams, start a small business and see it succeed.

With this budget, we are reaffirming our commitment to support small business. Today I can confirm that, as promised, we will lower our small business tax rate to zero percent by April 1 of 2012.

We also have, along with Alberta, the nation's lowest general corporate income tax rate. That is yet another reason that companies continue to come to B.C. Keeping taxes low is an essential part of our plan to encourage job creation, attract new investment and keep our economy moving forward.

With this budget, we are also moving forward with our efforts to improve public services. We're maintaining the record-high level of investment in health care and education that we set out in our last budget.

We are also allocating an additional $605 million to health care in 2013, for a total increase of almost $2 billion compared to 2010. Of that, $1.4 billion more will go to the health authorities and other service delivery partners for front-line services. An additional $438 million will go to the Medical Services Plan for physician and laboratory services, and $144 million will be added to the PharmaCare budget. These investments maintain existing programs and directions, including our ongoing efforts to increase innovation and efficiency.

On the topic of efficiency, our health care system is delivering very good results. B.C.'s per-capita costs are among the lowest in the country. There are critics who will say that that's a bad thing, but you cannot measure the success of a health care system based on how many taxpayers' dollars are spent. Success must be measured on the basis of outcomes and the health of the citizens being served. On that score, B.C.'s health care system is one of the most successful anywhere.
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Even as we keep our per-capita spending under control, we have among the best health outcomes in the country. For example, compared to other provinces, B.C. has the highest life expectancy, the lowest death rate from heart disease and the lowest death rates from cancer. That is significant, since heart disease and cancer are the two leading causes of death among Canadians.

Of course, there is always room for improvement, but our leadership in outcomes is something to celebrate and something that other provinces are trying to copy.

With this budget, we are also continuing the work towards delivering better outcomes for children and youth in our K-to-12 education system. In the coming year per-pupil funding will increase to $8,357 per pupil, the highest in B.C. history and 33 percent higher than a decade ago.

As in the health care system, we are not just spending more. We're supporting new approaches to encourage and improve student achievement. Starting in September, full-day kindergarten will be available for every five-year-old starting school.

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We now have more than 300 StrongStart centres in schools around the province, giving parents and preschoolers free, convenient access to high-quality early learning programs. More and more communities are also seeing benefits from neighbourhood learning centres, school-based community hubs that offer programs and services for learners of all ages.

Since the year 2000 the province has increased funding to B.C. public schools by more than $1.4 billion and, with this budget, operating funding for school districts continues at record-high levels.

The Ministry of Social Development will receive an additional $65 million over three years to provide for income assistance to individuals and families in need, and funding for most other ministries will continue at levels seen in last year's plan. That is consistent with our goal of keeping spending growth in check. I would be remiss if I did not acknowledge the role of public sector workers in this area. Their acceptance of the government's net zero bargaining mandate continues to play an essential part in our prudent fiscal management.

Prudent management helps ensure that we have flexibility, and this budget is all about creating the maximum amount of flexibility for the new Premier and executive council. We have an excellent track record and a great foundation to build on. However, we do face considerable uncertainty related to the harmonized sales tax.

The government is committed to accepting the will of the majority when the referendum is held. This means we may be called upon to cancel the HST and reinstate the old regime of PST plus GST. That would have major implications, not the least of which is paying back the $1.6 billion B.C. is receiving from Ottawa as part of our HST agreement. There is also a host of logistical issues for businesses both large and small, and those are just a couple of the broad top-of-mind issues.

The fact is that no province has ever backed out of the HST after implementation. Being the first would put us into uncharted waters. No one is naive enough to think that repealing the HST will make taxes go away. Of course, no one likes paying taxes, but that's how we fund public services.

To ensure that British Columbians have the facts they need to make an informed decision, we recently appointed an expert panel to review the referendum options and report to the public independently about their likely impacts on consumers, on the budget and on our economy.

It's also worth noting that entirely apart from the HST issue, tax rates in this province have declined significantly over the past decade. Since 2001, individuals and families have benefited each year from cuts to personal income tax rates, and businesses have benefited from corporate tax reductions totalling approximately 40 percent. Those reductions translate into real improvements in our quality of life because, as government has often said, the best way to support people is to leave more money in their paycheques and let them decide the best ways to use it.

We have great confidence in British Columbians. They are the people who have built our province, who have chosen to call this place their home, who have chosen to build their lives and plan their futures here. These are the people we serve as a government, and it is through their hard work and their contributions that we have turned this province around.

Ten years ago, after a disheartening decade of decline, British Columbia appeared to be in serious trouble. Businesses were closing, investors were leaving, and young people were choosing to build their futures somewhere else. Unemployment was rising, disposable income was falling behind, and in 1999 B.C. became a have-not province again for the first time in almost 40 years.

By 2001, when this government took office, B.C. was facing a structural deficit of $4 billion, a legacy of ten years of mostly deficit budgets. We were determined to turn things around and leave our children a different kind of legacy. We set out a clear plan, and we got to work immediately to make things better for our province and our people.

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We cut personal income tax rates for all British Columbians by 25 percent, the largest single tax cut ever, and that was on our first day in office.

We cut the corporate income tax rate by a full 3 percentage points, and we eliminated the corporate capital tax for general corporations. That was only the beginning, and each year since then we've built on our plan and maintained the fundamental principles that guide it — prudent management, competitive taxes, and protection for health care and other vital services.
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When you look back at all that we've achieved together as a province over the last ten years, it really is remarkable. It's clear the government's plan has worked. We've gone from an uncompetitive regulatory and tax environment to one of the most competitive anywhere.

We put an end to the chronic overspending that plagued the 1990s and threatened B.C.'s economic future. We paid down the province's operating debt by more than $9 billion even while investing record amounts in health care and education. The outcomes are clear. In this past decade real disposable income has grown by 2.1 percent after declining by 0.8 percent in the 1990s.

Private sector investment in B.C. has grown by an annual average of 4.4 percent, compared to just 1 percent in the 1990s. Growth in B.C.'s GDP has in most years outperformed the Canadian average after trailing the nation in the latter half of the 1990s. We've built new partnerships for trade and investment that promise to deliver even greater benefits in the years ahead.

We are also beginning to realize the full potential of our Olympic legacy. One year ago this week billions of people around the world were sharing in the energy and joy and excitement of our Winter Games. The games succeeded far beyond most expectations, and we hope to see similar results in the years ahead as all the new relationships forged through the games are translated into social and economic opportunities.

After all, that's what our province is all about. Our people, our geography, our stunning natural attributes, our world-class cities and our untamed spaces all combine to offer a sense of boundless opportunity. That's what has drawn people here for centuries.

Now that the worst of the recession is behind us, that same spirit of potential will help us move forward together with confidence. We have come so far. We have achieved so much in the past ten years. Now we have an opportunity to make the decade ahead the most exciting, rewarding and prosperous ever in our history.

Interjections.

Mr. Speaker: Members.

B. Ralston: Mr. Speaker, judging from the applause on the other side, a do-nothing budget is exactly what the B.C. Liberals wanted here today. The government had warned us that the budget would be empty, and while no one expected the government to lay out a sweeping agenda, British Columbians were holding out hope that the government would do something more than simply go through the motions. They were hoping the government would begin to restore the public's faith in our legislative institutions by taking action on the challenges facing British Columbians.

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But today's budget shows that the government just doesn't get it. There might not be any better example of that than the fact that this budget cut funding for Crown prosecutors by $6 million. So while the government found $6 million to pay the legal fees of two former political aides and shut down the B.C. Rail trial, they've cut the very budget for going after violent criminals in order to keep our streets safe. On top of that, they've cut court services by $9 million.

British Columbia today has the highest unemployment rate west of the Atlantic provinces. Today British Columbians were looking for investment to ensure we're helping prepare people for jobs in the economy. Instead, today's budget shifts the burden of paying for post-secondary education increasingly onto students and their families. At the very time we need to be investing in education to help address the skills-job mismatch, there is no new investment for training or colleges.

B.C. has the worst child poverty record in the country, a shameful record that the Representative for Children and Youth has repeatedly said needs immediate bipartisan action, including leadership from the Premier's office. None was forthcoming. This budget is no different.

Today British Columbians were looking for a commitment from the government to bring in a child poverty reduction strategy like many other provinces have already done. Instead, there is no commitment to address poverty. In fact, today's budget projects that 3,000 more people will be on income assistance over the next two years — a stunning indictment of this government's failures.

B.C. households are facing the worst financial vulnerability in the country, according to a new report from the TD Bank, a report that didn't come as much of a surprise to families struggling to make the mortgage payments on their houses. But while British Columbians were looking for action today to address the high burden that families were carrying, even while front-line public services are cut, today's budget shifts more of the burden onto B.C. citizens. British Columbians are already paying over 70 percent more in medical service monthly premiums than they did in 2002 and will face a 6 percent increase again this year.

There are troubling signs on the horizon. Our major trading partner, the U.S., is facing some serious economic challenges. The American federal government is set to enter a deflationary budget cycle, and American states and cities are being forced into further fiscal restraint.

Climate change is having a dramatic impact on some of our key industries, including forestry and agriculture. This budget actually cuts funding for the Agricultural Land Commission despite the fact that the Auditor General has warned that the ALC no longer has the tools it needs to protect the agricultural land reserve. And
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the budget cuts funding for forest stewardship and tree planting by $21 million. Youth unemployment is reaching troubling highs, and our young people are burdened with ever-crippling levels of debt, but this budget cuts student aid by $34 million.

What British Columbians were looking for today was a sign that this government gets it. But we didn't see any genuine acknowledgment of the economic, social and environmental challenges facing British Columbians. Instead, we saw yet another misleading budget from a government that has lost the trust of British Columbians.

This isn't the first time we've seen a phony budget from this government, but at least this time British Columbians' eyes are wide open, and they're not buying what the government is selling.

As we've seen time and time again, the public has no reason to trust the government. Just two years ago, on the eve of the provincial election, the government made sweeping promises. They said they'd keep the deficit to $495 million maximum for 2009-10. They said they'd protect health care and education. We all know what they said in the 2009 budget about the HST.

It would be farcical if it weren't so serious, because the truth of the matter is that while the government takes its time to dig itself out of a tangled web of mistruths, the public has had enough. The tragic thing is that because the government has been scrambling, they've left things adrift. As a result, we're emerging from the economic downturn well behind the pack.

This is a pivotal moment. This is a pivotal point in our history, but even though the government has had a decade, they haven't delivered. This government's narrow agenda…

Interjections.

Mr. Speaker: Members.

B. Ralston: …over the last ten years has made life increasingly tough for middle-class British Columbians, and many people, especially the poorest and most vulnerable in our communities, have simply been left behind.

British Columbia has so much to offer — a vibrant and diverse population, richly abundant natural resources, innovative entrepreneurial communities, a proud history of rising to the challenge — but this government has let British Columbia down. Rather than laying the foundation for a new tomorrow, they've been scrambling to cover up their own mistakes.

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It's now become clear to people of all political stripes that the government is tired. They're out of gas. They've lost touch.

After years of policy that led to an increasingly divided province, with rising costs and stagnant wages, the government didn't have any economic plan beyond the Olympics. Since the 2009 election the government's economic strategy — the single most important thing that could be done for the economy, according to the Premier — has had one plank and one plank only: the HST. I hardly need to remind members on that side of the House how that turned out.

Today's budget has made it clear that it's time for a change. It's time for a government you can trust, a government that listens to British Columbians, that puts the public first, that presents a fresh vision. And even if we're back here in a few months debating a new budget from the same government, that's not going to cut it, because while the government might bring in a different cabinet or ex-cabinet minister into the Premier's chair, the leopard cannot change its spots.

I'll have more to say about the 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, 2011

Hon. C. Hansen presented a message from His Honour the Lieutenant-Governor: a bill intituled Budget Measures Implementation Act, 2011.

Hon. C. Hansen: I move first reading of Bill 2, Budget Measures Implementation Act, 2011.

Motion approved.

Hon. C. Hansen: Bill 2 is divided into two parts. Part 1 contains the non-tax measures in the budget, and part 2 contains the tax measures.

Part 1 of Bill 2 amends the Balanced Budget and Ministerial Accountability Act to ensure ministerial accountabilities reflect reallocations by Treasury Board within a vote that authorizes spending by more than one minister.

Part 2 of the bill amends the International Business Activity Act to expand the program to include schedule 3 banks, as was announced on May 11, 2010. It clarifies various property tax exemptions under the School Act, the University Act and the Health Authorities Act.

It continues the intended exclusion from carbon tax for carbon-neutral biomethane by providing a credit under the Carbon Tax Act for blends of biomethane and natural gas sold under qualifying contracts. It amends the Carbon Tax Act and Motor Fuel Tax Act to stream-
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line compliance obligations for fuel suppliers who import fuel into British Columbia by ship and amends the Home Owner Grant Act and the Taxation (Rural Area) Act to address administrative issues.

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, 2011, 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 Budget and Fiscal Plan 2011/12-2013/14, which fulfils the requirement of section 7 of the Budget Transparency and Accountability Act.

Mr. Speaker: Continue, Minister.

Hon. C. Hansen: I also table, on behalf of the ministers responsible, the government's overall strategic plan and service plans required under the Budget Transparency and Accountability Act.

These documents are presented in two binders, which I have provided to the Clerk. The first binder contains service plans for the Office of the Premier and 20 ministries. The second binder contains service plans for 27 Crown corporations and agencies.

The second binder includes a list of organizations that are exempt from the service plan requirements under section 13 of the Budget Transparency and Accountability Act. It also identifies organizations that are receiving or losing exempt status together with the reasons for these changes and four organizations that have been added to the government recording entity by regulation, with an explanation for these additions.

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Introduction and
First Reading of Bills

bill 3 — supply act (no. 1), 2011

Hon. C. Hansen presented a message from His Honour the Lieutenant-Governor: a bill intituled Supply Act (No. 1), 2011.

Hon. C. Hansen: I move that Bill 3 be introduced and read a first time now.

Motion approved.

Hon. C. Hansen: Bill 3 will provide interim supply for government operating expenses for the first four months of the 2011-12 fiscal year. Bill 3 provides interim supply for financing requirements, including 50 percent of the year's voted capital expenditures and loans, investments and other requirements. It provides supply for 100 percent of this year's requirements for revenues collected for and transferred to other entities.

I move that Bill 3 be placed on the orders of the day for second reading at the next sitting of the House after today.

Bill 3, Supply Act (No. 1), 2011, 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.

Hon. R. Coleman moved adjournment of the House.

Motion approved.

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

The House adjourned at 2:57 p.m.

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