2014 Legislative Session: Third Session, 40th 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)


Monday, November 24, 2014

Morning Sitting

Volume 18, Number 4

ISSN 0709-1281 (Print)
ISSN 1499-2175 (Online)


CONTENTS

Orders of the Day

Private Members’ Statements

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The benefits of hosting athletic events and tournaments

Michelle Stilwell

S. Robinson

Finding a better way to support people with mental illness

S. Hammell

D. Bing

Public sector bargaining success

S. Hamilton

S. Simpson

Continuing to build our technology sector

G. Heyman

G. Kyllo

Private Members’ Motions

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Motion 12 — LNG industry and business opportunities

M. Bernier

B. Ralston

J. Yap

M. Elmore

M. Morris

R. Austin

J. Thornthwaite

C. James

G. Kyllo

K. Conroy

J. Martin



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MONDAY, NOVEMBER 24, 2014

The House met at 10:04 a.m.

[Madame Speaker in the chair.]

Routine Business

Prayers.

Orders of the Day

Private Members’ Statements

THE BENEFITS OF HOSTING
ATHLETIC EVENTS AND TOURNAMENTS

Michelle Stilwell: Good morning, hon. Speaker.

[D. Horne in the chair.]

I know this isn’t question period, and as a government MLA, I really don’t ever have that opportunity to take advantage of that 30-minute window to ask a question. But this morning I would like to ask everyone a question: how many people have participated in or attended a sporting event or tournament in this last year?

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Well, if you’re like me, I expect the answer is yes. I’d also expect that we’ve attended many sporting events over this period, not just a single event, and I don’t expect this to be surprising. British Columbia truly is a four-season destination for sports, be it indoors, outdoors, on the beaches, on our mountains, in the air or under the water.

It’s really hard to beat B.C. when it comes to the variety of sports and tournaments that we can host. This is absolutely a good thing, because sport tourism is currently the fastest-growing segment of both the Canadian and British Columbian tourism industries. It’s worth about $3.6 billion in Canada’s economy. As leaders, it’s important for us to encourage its growth, not only for the economic impacts but for the legacies, the use of infrastructure and the community engagement that it provides.

There’s no doubt that when we hosted the 2010 Olympic and Paralympic Winter Games there was a feel-good factor among citizens around our province and across our country. Not only did it lead to an unprecedented spirit of patriotism by millions of Canadians, they were the most successful Winter Games ever held, and cemented Vancouver and Whistler’s reputations as world-class hosts.

The games were beneficial to B.C.’s bottom line, attracting over 250,000 international visitors and contributing more than $2.5 billion to the economy, according to PricewaterhouseCoopers. While the Olympics and Paralympics took place over a two-month period in 2010, their positive energy and legacy are still being felt today.

To help the communities create their own legacies, Hosting B.C. was launched. Hosting B.C. is now managed by ViaSport, and it provides grants to help local B.C. organizers host sporting events that can range from international competitions to regional tournaments.

Hosting B.C. is one of those programs where the grants can really make a difference to local and grassroots organizers. Since the program was launched ten years ago, nearly 600 events in 78 communities throughout B.C. have received $4.6 million in grants, giving opportunities to communities to showcase themselves.

This fiscal year 36 events have received grants from this worthwhile program, including the Haywood NorAm in Rossland; Lake Cowichan’s Windfest 2014 Canadian National Kiteboard Racing Championships; Nelson’s Glacier Gymnastic Club’s Kootenay Zone Championships; the B.C. Wheelchair Sports Association Vancouver international wheelchair rugby tournament, one of my favourites; and Volleyball B.C.’s western Canadian beach championships, which were held, actually, this summer in my hometown of Parksville.

All these events create economic benefits for the host communities, leading to job creation and taxes that help communities and the provincial government pay for services. Hotel rooms are booked, restaurant meals are ordered, ferry reservations are made and souvenirs are purchased.

Often the first thought of many when thinking of sport and economic spinoffs is of professional sports, but while they create significant economic benefits and are enjoyed by many, only a select few actually get to participate. That’s why this is not the case when we think of provincial and national tournaments that are held every year in our communities throughout B.C.

This summer, for instance, Nanaimo, the Cowichan Valley and Parksville hosted the 2014 B.C. Summer Games. About 3,000 people took part, and many were accompanied by coaches, family and friends. In addition to the athletic victories, there was also a triumph for Vancouver Island businesses, generating about $4 million in direct and indirect economic activity. It’s not just the B.C. Summer Games. Mission’s economy benefited from hosting this year’s B.C. Winter Games.

While both the B.C. Summer and Winter Games see people travelling across our province to compete and be spectators, British Columbia hosts more than its share of national events as well.

This year the 2014 Special Olympics Canada Summer Games were held in Vancouver. Recently there were the elite figure skaters in Kelowna, who were at the annual 2014 Skate Canada International, a tournament that projected to add $4 million to the Okanagan economy.

For those curling fans out there, this year’s Brier, the pinnacle of men’s curling in this country, and some might
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say even in the world, took place in Kamloops, a city that knows the economic benefits of hosting sporting events.

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Thanks to the teams and the curling fans, both local and those who travel to Kamloops, this year’s brier generated at least $5 million in economic activity, not to mention free exposure to the millions of those viewers who watched on TSN.

Looking to the near future, there are dozens of sporting events and tournaments that will take place in British Columbia in the upcoming winter months. For instance, the winter Whistler Cup returns for its 23rd year, the largest North American alpine ski race for youth athletes aged 11 to 14. It’s expected that competitors from 23 countries along with their families and coaches will travel to Whistler.

There’s also the 2015 Canada Winter Games being held in Prince George February 13 to March 1. B.C.’s northern capital will be hosting the largest multisport event to ever be held in Prince George and northern British Columbia. The economic benefit could be over $90 million.

I am so proud to live in a province and represent constituents who know how to successfully host sporting events, small or large, local or international. They value both their positive economic impact and the sense of pride that it brings to communities. I hope this is the case for the other members in this chamber and everyone here today.

S. Robinson: I am pleased to rise in the House to respond to the member for Parksville-Qualicum’s statement on the benefits of hosting athletic events and tournaments.

As a hockey and cheerleading mom, I know full well what the commitment is to participate in these events, losing entire weekends to the hockey rink with hundreds of girls playing hockey, smelling as bad as the boys; screaming cheerleaders for hours on end that can leave a parent with partial hearing loss and a pounding headache; the quick bites of food from the cafeteria; the other parents becoming lifelong friends, given the time you spend together; and the ups and downs of winning or losing games.

I also know, as a previous city councillor, the value of hosting athletic tournaments and events — people coming from around the region, around the province and perhaps from around the world to witness the thrill of victory and the agony of defeat.

Being a host to these events permits communities to showcase their talent, show off their community assets and build their brands so that these sports tourists may choose to come back and partake in some other community offering — perhaps a special park, a wilderness area or a community asset like an art gallery or shopping area. Sports tourism brings out entire families that stay in our hotels, eat in our restaurants and shop in our communities.

I’m incredibly proud of my community, because Coquitlam is going to be hosting a major tournament this summer. The Coquitlam Little League will be hosting the Senior Little League Canadian Championship next summer as part of the organization’s 60th anniversary. It will be the fifth time in the 60-year history that Coquitlam will play host to Canadian Little League baseball.

While the benefits are clear, it’s important to remember that it’s mostly local governments that build the infrastructure that makes these tournaments and events possible. It’s local governments that build the skating rinks, the curling rinks, the ball diamonds, the soccer pitches, the lacrosse boxes, the swimming pools, the diving tanks and the running tracks. It is local governments that invest in building these community assets that provide our athletes with the venues they need to develop their talents.

In my own community of Coquitlam we recognize and value these tournaments and the assets required to host them. Just this week there was an announcement to start a consultation process and to refine a plan for a 30-metre stage at Coquitlam Centre Park that I know the hon. Speaker knows quite well, an extensive sports complex that includes a stadium and numerous high-performance soccer pitches.

Coquitlam will be playing host to the 55+ B.C. Games, once known as the B.C. Seniors Games, in 2016 as part of my community’s 125th anniversary.

Coquitlam recognizes the value of hosting athletic events and tournaments. Building and maintaining these venues, however, is not cheap. Once we have these venues, we need to maintain them. They need to be cleaned, repaired and monitored. Assets like these need to be replaced over time, and all of this costs money.

We need to remember that the funds to build, maintain, repair and replace these assets come from property taxes. When we have a government that suggests to local leaders at their annual convention that they are not good stewards of the public purse and then turns around to promote the value of hosting these events in our communities, I have to say I’m a little bit perplexed.

I’m perplexed when we hear on the one hand that the members opposite rant on at local governments that they need to rein in spending, and then the member opposite carries on about how wonderful it is to host these events and tournaments. I have to wonder: which is it — rein in spending and stop building these venues that communities are asking for, or keep building our communities and enriching the lives of our residents?

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Hosting events and tournaments are valuable activities for communities. They bring out the best in our athletes and in our communities. They bring out community volunteers and community pride.

These venues are a worthwhile community investment. They provide excellent economic benefit to our local businesses. But let’s not fool ourselves into believing
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that these events and tournaments don’t come without taxpayer investment. We need to remember that it takes thoughtful planning and commitment from local governments representing local taxpayers, and I think it’s a commitment that everyone in this House ought to respect.

Michelle Stilwell: I’d like to acknowledge and thank the member opposite from Coquitlam-Maillardville for her reply. I’m grateful that she, too, is a hockey fan. Not quite a hockey mom myself, more of a tae kwon do mom, but I value the points that you make on the investment that hosting these games takes for our communities. But it is the investment in the infrastructure and the investment in future generations as we inspire our youth to take part in sport which will, in turn, increase their healthy, active living.

As a sporting fan myself, I hope that this weekend I will see most of the people in this room as we host Vancouver’s fall classic between the Calgary Stampeders and the Hamilton Tiger-Cats in the 102nd Grey Cup game in Vancouver. It certainly is a shame that the B.C. Lions are not going to be competing, but I know that I, along with millions of other Canadians, will be watching the game and celebrating this enduring Canadian tradition.

I know that there are thousands of fans who will be travelling across Canada to Vancouver, not just for Grey Cup itself but for the festivities that will be taking place throughout the week. As I’ve had the privilege to be on the Grey Cup organizing committee on behalf of the province, I’d like to ensure that most members know of some of the events that will be taking place during this week.

I know there’s the family zone in the Jack Poole Plaza and the street festival that will be at Canada Place Way. Of course, there’s the Red Truck Tailgate Concert Series at the convention centre, with live music performers from Hey Ocean! to Sass Jordan to Trooper to 54-40 and Tim Hicks, if you’re a country fan. There’s also the annual CFL Awards and the Grey Cup Parade, where many families can come out to join and celebrate with everyone. There’s really something for everyone.

This is the second time in four years that the Grey Cup has been played in Vancouver, partly because of the transformation that B.C. Place took after the 2010 Olympic and Paralympic Games, making it Canada’s premier stadium for sports and other events. Last year over 54,000 people watched the Vancouver Canucks play the Ottawa Senators in B.C. Place at the NHL Heritage Classic. Without B.C. Place, the Vancouver Whitecaps would not be major league soccer’s most stable franchise, selling out most of its matches.

Speaking of soccer, next year as well B.C. Place will be hosting the final for the pinnacle of women’s team sports. It’s the FIFA Women’s World Cup, along with group and knockout match stages for the athletes.

There’s no doubt that there are opportunities in the economic benefits to hosting events. There’s no doubt that it’s important for us to support them, because we know that they bring us together as communities and as Canadians. They can help inspire people, particularly youngsters, to take up a sport and for some form of physical activity, thereby improving their health. I hope we will all continue to encourage hosting events.

FINDING A BETTER WAY TO SUPPORT
PEOPLE WITH MENTAL ILLNESS

S. Hammell: I’m delighted to participate this morning in the discussion around a variety of topics that we want to discuss in the House today. My topic is finding a better way to support people with mental illness. To understand that, sometimes a good way of doing that is to take a look back. I just want to bring the House up to date or share with them the history around the mental health issue, particularly the asylum institution system that used to be part of our system here in British Columbia.

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In 1841 in the United States a woman called Dorothea Dix, a 39-year-old teacher, walked into a Massachusetts jail and volunteered to teach English. Now, you can imagine at that time this was a rather astonishing feat, but that action, and witnessing the dangerous and unhealthy conditions in which mentally ill people lived, changed her life and the lives of others.

I have mentioned this in the House before. Dorothea Dix asked authorities why mentally ill people were housed alongside hardened criminals in unheated, unfinished and foul-smelling cells. She was told at that time that the insane don’t feel the cold. That was 1841, and it began her crusade to change the treatment of mental illness.

She was the daughter of a Methodist-Baptist preacher. She took the matter to courts and after several court cases won her case, forcing the institutions to provide better living conditions for the mentally ill. She took on several other jails and waged and won the same battle. Her work formed the basis of the creation of the mental asylums that we saw through the 1900s and early 2000s.

Her work created a new awareness around mental illness. From that, we have proceeded…. Over a 40-year period — from that period on — she forced the creation of over 32 facilities. That began the institutional in-patient care model, where patients with mental illness issues lived in hospitals and were treated by professional staff. That was thought to be the most effective way to care for those of us who have mental illness.

The institutionalization of mental patients was supported by the families and the communities, but unfortunately, underfunding of the system, poor staffing, led to reports of horrific abuses — people, again, with mental illness living in poor conditions and where human rights violations were found. All of us have heard of the
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examples of lobotomizing the people with mental illness, of people being buried and mistreated on the grounds of mental institutions.

That form of care of the mentally ill came under serious question. Along with the advance in drugs, the institutional in-patient care model was questioned. By the mid-’50s a push for deinstitutionalization and out-patient treatments came on in many, many countries. In fact, it became an international movement where there was a push to reform the asylum system and give patients with mental illness a higher quality of life by treating them in their communities rather than in large, undifferentiated and isolated mental health hospitals.

We in B.C. followed suit, and it was sort of in the ’50s that this deinstitutionalize movement started. It was supported by the fact that there was now a series of drugs that could assist people with mental illness outside. But deinstitutionalization has become a very polarized issue. The goal of deinstitutionalization has, we think, been long embraced by most people, but the actual execution of that deinstitutionalization is what has made it highly questionable.

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The consequences of deinstitutionalization have, to a large extent, ended up with people in our communities in two or three very clear places. One place that the mentally ill now are found is on the streets. We know that many of those people who are homeless have mental health issues. So to have deinstitutionalized and then have a consequence of people in the streets is not one that we would consider a successful execution of a goal.

The other place where mentally ill people have also been found, and one that I think would be upsetting to all of us…. People are now not only on the streets but in the penal system. In 1841 there was a move to take those who were mentally ill outside, away from the penal institution where they were housed beside hardened criminals, and to put them into mental institutions.

L. Popham: I seek leave to make an introduction.

Leave granted.

Introductions by Members

L. Popham: I have 28 fabulous students visiting today from McKenzie Elementary with their teacher Mrs. Sarah Winkler. McKenzie Elementary School had its start as a one-room school in 1912, and today it hosts kindergarten through grade 5, with 210 students registered. Please welcome McKenzie Elementary to the Legislature.

Debate Continued

D. Bing: On behalf of my constituents of Maple Ridge–Pitt Meadows, I am pleased to respond to the hon. member for Surrey–Green Timbers on the following statement: “Finding a Better Way to Support People with Mental Illness.” I think we have all witnessed the devastation that poor mental health can have on an individual.

When we see people who are obviously struggling with their mental health, we know that addictions, substance abuse and, in certain cases, homelessness are all related components that contribute to an individual’s state of mind. These individuals are often the most difficult to help, to house and to provide treatment for, especially if they’re unwilling to accept assistance. They are prevented from taking joy from being alive and leading a healthy, productive and enjoyable life.

I can assure you that the government of British Columbia remains committed to building a comprehensive system of mental health support services across this province. Mental illness is not a localized issue. It affects people in every community across B.C. It can strike an individual regardless of income, level of education or cultural background. Mental illness does not discriminate. It can strike an individual of any age and cause devastating results.

That is why in November 2013 the Ministry of Health created a mental health action plan to reduce barriers and service gaps in the system and support evidence-based solutions for patients with severe addictions and mental illness. Projects completed under this plan to date include establishing a first-in-B.C. assertive outreach plan, the acute behavioural stabilization unit at St. Paul’s Hospital, and expanding assertive community treatment teams.

Examples of mental health and substance-use projects receiving funding as part of the strategy include…. At Fraser Health the psychosis treatment optimization program is being expanded to oversee care for mental health clients with a treatment-resistant psychosis.

At Island Health assertive community treatment services to support people with severe mental illness and substance-use problems are being expanded in central and northern Vancouver Island as well. Intensive care units in the west and north Island will support family physicians caring for individuals whose mental health and substance-use treatment have stabilized.

At Vancouver Coastal Health we’ve seen expansion there of assertive community treatment services, which reaches out to people with severe mental health and substance-use issues in the Downtown Eastside. We also see expansion of the acute home-based treatment service which provides an alternative to in-patient care.

At Interior Health we see development of integrated primary care with intensive case management services in nine communities. This will serve individuals with severe substance-use disorders, with or without mental health issues, and who are not well connected to community and primary care services.

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The government of British Columbia is showing national leadership on the issue of mental health. During
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federal, provincial and territorial meetings in October the Minister of Health made it a priority to add mental health and substance use to the agenda for the next provincial and territorial meeting that B.C. will be chairing in Vancouver.

Each province has strengths that they bring to the table, and we can all learn from each other. Together, we can reduce the stigma, break down barriers and learn from one another to provide help for those who suffer from mental illness.

S. Hammell: I appreciate the comments from the member opposite. I think that we can acknowledge that we have a very broken system in British Columbia around mental health. A significant number of people who have mental illness are dealt with by police not only in Vancouver; they’re in Delta, Coquitlam, Surrey and in Prince George. Most of the police forces in this province are suggesting that anywhere between 20 and 45 percent of their resources are focused on those people with mental illnesses.

They also report recurring or chronic offenders, often with mental health and substance abuse, repeating and repeating themselves through the justice system, often going through the court system as many as 100 or 200 times. Many of those people, as we know, end up in the penal system. The amount of money spent to keep a person who is mentally ill in the penal system is just shocking. In British Columbia, to keep a person in the penal system, in jail, is $74,000 a year and more than that in the federal system.

We have a broken system. It is critical that we get a handle on this. People are reporting more and more difficulty with mental illness. The mental health plan hopes to have more and more people report positive mental health, and in fact, it’s decreasing. It is going in the wrong direction. There is clearly an issue around mental health.

I think that if we put mental health in the context of general health and we look at the issue of the social determinants of health and we understand that mental health is also an illness, just as many of the other illnesses are, we see that we have to deal with the overarching issues of health. When we have a society that has the major health issues that we have — we build societies around unhealthy choices — we have to look at how we can change that in terms of our system.

PUBLIC SECTOR BARGAINING SUCCESS

S. Hamilton: I’m honoured today to stand up and speak about the importance of our province’s public sector. We, of course, cannot speak about the public sector without making mention of the success that we’ve had during this term with public sector bargaining.

We’ve worked cooperatively with public sector employees to meet the dual and aligned goals of being fiscally responsible while valuing the contributions of our citizens. Together, we have worked to form a stronger B.C. and are very proud of the great partnerships that we’ve developed.

Today we’re maintaining fiscal discipline and controlling spending. As a result, B.C. is one of only two provinces in Canada to balance its budget in 2013-2014. We’re committed to focusing on fiscal discipline and balancing our budget while we preserve our triple-A credit rating. This means that government could spend less on financing debt and more on paying for the services that British Columbians value.

In order to maintain this longstanding and forward position, we’ve developed the new 2014 economic stability mandate that applies to all public sector employees whose collective agreements expire on or after December 31, 2013.

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Agreements reached under this mandate provide for modest fixed-wage increases over the term of the agreements, plus the possibility of an economic growth-sharing dividend. If the province’s actual GDP growth exceeds forecasts over the terms of these agreements, the agreements provide for the sharing of some benefits of that growth with the public sector employees who work on behalf of British Columbians and help make that growth possible.

Under this proposal, employees would receive a conditional, incremental wage increase equal to half of any percentage point gain in real GDP growth above the Economic Forecast Council’s forecast published in the budget. In the case of a worker earning $50,000 a year, that’s an additional $250 per year if the economy outperforms the expectations of the forecast council by a single percent.

The British Columbia public sector employs approximately 391,000 people. About 316,000 are unionized employees working in the public service at Crown corporations and agencies and in the K-to-12, post-secondary, health and community social service sectors.

The government and public sector employers spend about $25.6 billion — equivalent to 57 percent of the province’s budget — on compensation. About $21 billion, or 85 percent of these costs, is determined through collective bargaining.

Currently there are approximately 200,000 public sector employees covered by tentative and ratified agreements negotiated under the economic stability mandate. This represents about two-thirds of all unionized employees in B.C.

Based on the total compensation base estimate as of July 18, 2014, quarterly, total compensation for the health sector stands at approximately 50 percent of the province’s total compensation base, or $12.76 billion, followed by the K-to-12 education sector at 18 percent, or $4.69 billion. The third largest cohort in the public service is $2.46 billion, or 10 percent, with the rest allocated to universities, Crown corporations, colleges, institutes and community social services.
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To date, some 28,500 support staff workers in 53 school districts have fully ratified agreements in place. This represents 83 percent of the total support staff workers in B.C.’s school districts. The term of the new agreement for the districts provides for a modest 5.5 percent increase over five years, with the potential for additional increases if the B.C. economy exceeds the annual forecast set by the Economic Forecast Council during the last four years of the agreement.

Support staff who have signed these agreements have been reimbursed for all scheduled hours that they would have worked and been paid for during the BCTF strike. Our economic stability mandate provides public sector employees the ability to negotiate longer-term agreements with a fixed fiscal envelope, and it offers employees an opportunity to participate in the province’s economic growth through the economic stability dividend.

All British Columbians deserve our thanks and appreciation for their patience through these past difficult months. Both sides needed time to reach a negotiated six-year agreement — the longest term ever reached with teachers. This is a historic agreement that will mean years of labour peace.

Now we have the opportunity to work with the teachers and build a relationship and long-term labour stability. This negotiated agreement is an important stepping stone towards a better relationship. Teachers will get a 7.25 percent wage increase over the next six-year term.

We’re committed to an additional $125 million over the next five years to the learning improvement fund. This additional investment to the learning improvement fund will bring the total up to $500 million to address class composition issues but in a way that targets those supports where they can do the most good for students. Of the $500 million, the agreement with the BCTF sets $400 million for a new education fund to be used exclusively to hire more teachers — teachers with specific skills — or to increase their assignments.

The learning improvement fund also commits $100 million to hire more educational assistants or increase their hours over the course of the next five years. The agreement gives educators in our schools the opportunity to consider the unique needs of every classroom as they make decisions on how to address workload issues and the learning needs of students.

When British Columbians look at the details of the settlement, I am confident they will see that significant and historic progress was made. This is a real opportunity to put conflict and uncertainty behind us. We want to focus on students, because together we can make our education system even better.

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In closing, this long-term agreement is just one example of fiscal certainty within today’s economic reality, helping us manage costs across the public sector while continuing to achieve better outcomes for British Columbians. It’s important that we control spending while at the same time acknowledging the vital contributions made to our province by its public sector employees.

S. Simpson: I would agree with the member that public sector workers and the public sector unions in this province have been very responsible over many, many years in terms of how they’ve dealt with collective bargaining and how they’ve, on many occasions and most occasions, taken less than the cost of living and, as a result, have actually seen some regression in their own buying power.

The thing, though, that I hear from public sector workers and those unions more than anything is their concern about public services and their concern about the delivery of services and whether those services are adequately resourced for them to be able to do the job they do. These are the people who know that best. They do that work every day.

The list is long. In health care we know the concerns that have been raised around wait times — whether it’s wait times for surgery. We’ve debated and discussed in this House recently issues around colonoscopy testing and how that works.

I know, as a cancer survivor, that I will be tested some time in the spring, and it will be six or seven months since I saw the surgeon to prepare that test, and I know that my six- or seven-month wait is typical; it’s not the exception. That’s a concern.

We know that we’ve been hearing, over the last number of days, about concerns at the Cancer Agency about support and resources there. This is an agency that we’re all very proud of in this province as a cutting-edge, leading agency in the fight against cancer, and they are raising concerns about resources there.

In K to 12 — the member spoke about that. We know the reality there is that we’re about $1,000 a student behind the national average, and that’s what has created the problems around class size and composition, and resolving those problems will continue to be a challenge because of resource issues.

In the area of Environment and what are commonly known as the dirt ministries, we know of the cuts that happened in the early 2000s, the reductions in biologists and science technical officers and conservation officers in others of the dirt ministries. There are serious questions as to: to what extent has that reduction in oversight and enforcement led to things like Mount Polley and things like Babine and Lakeland? Those are real questions that need to be answered. What is the correlation between those reductions in services there?

The Representative for Children and Youth has been telling us for years that there are not enough resources to deal with the needs of vulnerable children in this province, and too many times the results of that have been tragic.
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In justice we know that lawyers, judges are all telling us that family and poverty law are not being supported in the way that’s necessary. It’s not being supported in a way that ensures those families — mostly poor, mostly single moms — who have to take advantage of that have the opportunity. In employment standards we know that this self-managed model has simply failed.

There’s a difference between spending and investment. There’s an argument that you don’t want to overspend, but there’s always a time to invest. The problem we have here is that the government currently seems to have blinkers on when it comes to investment questions on social and environmental files. That needs to be corrected. When that happens, then we can all be proud of the public service moving forward.

What I am proud of is the fact that the public sector unions are providing some of the strongest voices in telling British Columbians about these shortcomings in an array of ministries and in an array of areas, and I’m glad that their voices are speaking out. I hope the member and his colleagues may pay attention to that.

S. Hamilton: I thank the member opposite for his comments. You know, many things we agree on here. We agree that first of all, our public service is probably a group of the most creative and dedicated employees anywhere in the public service across Canada or in many other jurisdictions around the world, as far as I’m concerned.

I was once, in a previous life, a member of the British Columbia public service, and I know firsthand what sort of difficulties there were in constant upheaval when it came to labour negotiations in this province. We went through, I’d say, about a decade and a half of complete and utter uncertainty.

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It was not easy for the public service in this province. It was a very, very difficult time, and with uncertainty come all kinds of nasty things that rear their ugly heads when it comes to labour peace, when it comes to security on the job. People were moving around. People were leaving this province in droves because they couldn’t really wrap their heads around the fact that the opportunity to stay here and to flourish here was necessarily in front of them.

The member talked quite considerably about all of the issues around health, the B.C. Cancer Agency. I, too, have personal experience with the B.C. Cancer Agency. I could not have been treated any better than what I was. The wait times were very short. Obviously, the treatments were very efficient. They all worked great, thank goodness, and thank goodness for the member opposite as well. I think that it proves that we have a health system in this province where if you’re sick and you need those services, they are there for you.

K to 12. We could probably go on all day talking about the average of $1,000 less per student. Of course, I’d like someday, when we go forward, the opportunity to take apples and compare them to apples. We can always make numbers sing. We know that for a fact.

I want to go back to some of the promises that were made by the members opposite during the last election campaign with regard to health and education and environment. The Premier spoke in this House just a couple days ago, last week, about the $2 billion that would have blown the budget. We are committed to balancing our budget. It’s one of the most important things that this government has decided it’s going to do.

We’ve made a commitment, and there are hard decisions, some tough decisions, that do have to be made as we go forward. At the same time, we have kept our eye on the ball when it comes to delivering services to the public in this province. Again, going back to the creative and dedicated staff that we have working in the public service, I couldn’t ask for any better than those people that work on the front lines and deliver services.

We also build things. We talk about how this government has put together a transportation network that’s second to none that’s going to help grow our economy as we go forward. South Fraser Perimeter Road is one shining example of how we’re going to help deliver services amongst the rest of this province. Going forward, I’m looking forward to more good things.

CONTINUING TO BUILD
OUR TECHNOLOGY SECTOR

G. Heyman: We are nearing the end of this session, a session that’s had a single-minded focus on developing a liquid natural gas industry. That is the focus of the government, and that is an important potential contributor to B.C.’s economy.

It gives me great pleasure today, however, to stand to talk about B.C.’s technology sector. It is an amazing sector. Every time I meet with people active in this sector, I’m impressed with the measures they are taking and the creativity and the entrepreneurial spirit they’re bringing to building the economy of the future, as well as working very hard on finding solutions to the problems of today — whether it’s dealing with greenhouse gas emissions or finding ways to add value to our resources with exciting new technologies.

Based on the recent KPMG report card, we know that the tech sector employs a lot of people. It now employs over 84,000 people. That’s more workers across the province than all of the resource industries combined. And they’re good jobs. The wages are 66 percent higher than the B.C. industrial average, contributing over $6 billion in wages.

This sector and these industries are not just limited to the big cities, to Vancouver and Victoria. Tech start-ups dot the landscape from Victoria to Prince Rupert and from Vancouver to Cranbrook.
[ Page 5506 ]

The industry is responsible for 7.6 percent of the B.C. economy and contributes $15½ billion to the provincial GDP. It’s the third-largest contributor.

However, despite significant gains in terms of GDP per capita, B.C. continues to trail the performance of other provinces and the United States. As the KPMG report card stated, we have an A in the sector in comparison to other B.C. industry sectors but only a C-plus in comparison with other provinces and a poor C-minus on industry input indicators.

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Tech employment per capita, as well as per-capita GDP, is still lower than other provinces with significant technology sectors. As Bill Tam of the B.C. Technology Industry Association recently said in a submission to the Finance Committee, as he pointed out that B.C. is less than one-quarter of 1 percent of the global tech industry:

“I think we have a massive economic opportunity. Our forecast shows that we can grow to $50 billion in industry revenue, account for 16 percent of provincial GDP and be at 142,000 jobs by 2020. We have the start-up companies in the pipeline to realize this growth. However,” Mr. Tam says, “I think we need to take some purposeful, deliberate action to really realize the full potential.”

After the 2012 report BCTIA consulted extensively with tech sector leaders, with post-secondary institutions, with business leaders and government to develop a four-point plan for growing B.C.’s tech industry. It identified actions and activities that the industry association believe are necessary to significantly change the shape and spur the growth of B.C.’s technology industry. These include revitalizing access to venture capital, expanding market access, concentrating on a home team advantage, as they call it, and developing a buy B.C. program.

This has been done in the United States, where the U.S. government and state governments are very active in promoting and purchasing and promoting the purchase of local businesses of locally produced tech.

Developing, attracting and retaining talent is extremely important, as is accelerating the growth of companies and building larger anchor companies that can attract investment and create the kind of ecosystem in the tech sector that will feed and encourage start-ups and provide them with the work they need to grow.

Mr. Tam has pointed out that subsequent financing post-start-up has diminished significantly. The first stage of venture capital has diminished significantly. The BCTIA recommended to the Finance Committee that B.C. consider partnering with the federal government to invest $100 million in a regional fund of funds. To be clear, this would not pick winners or invest in particular businesses. It would, however, be an investment in a venture capital fund that invests in firms. The $100 million investment, in turn, would be expected to leverage 3-to-1 with private sector dollars.

We’re also not developing the needed skills and knowledge. We rank near the bottom on a per-capita basis for the number of tech-related graduate degrees in B.C. Recently, in 2013 the Applied Science Technologists and Technicians of B.C. issued a report called A Strategic Direction for Technology Education and Skills in British Columbia. They note that almost 150,000 British Columbians are employed in these occupations in B.C., one third of these being technologists and technicians. Twenty-five thousand new jobs are expected by 2020, although there are growing concerns about technology education keeping up with this growth.

In 2007 the ASTTBC found that there was no cohesive and coordinated plan in place to respond to the need for more tech workers, and they have recently said that progress since 2007 has been sporadic, piecemeal and mostly within silos.

It’s important that we pay attention to the voices of the industry. It’s important that we pay attention to the steps that are needed to spur the growth and reach the potential of the tech sector, a sector that is such a significant part of our economy, with high wages and many jobs. If we rest on our laurels, the BCTIA says that we will fall short of the growth that they project for 2020.

We need R-and-D investment. We need to ensure that we are creating intellectual property, applying for and getting patents. We need to encourage students to take the stem courses and go to school. There are a number of very important things that we can do — we should do — in order to maximize the potential of this industry, and I look forward to helping and working with the industry and encouraging this growth.

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G. Kyllo: It is my pleasure to rise in response to the statement from the hon. member for Vancouver-Fairview on building B.C.’s tech sector. The tech industry is thriving, representing a remarkable opportunity for investment in job creation, providing 84,000 jobs for British Columbians, and it is the third-largest contributor to the provincial GDP, creating revenues of $23.2 billion annually.

Those employed in the tech sector are flourishing in B.C., with incomes in the sector being 65 percent higher than the average provincial wage. It is vital to B.C.’s economic growth that the government support innovation and development within the high-tech sector, and that is what government is doing.

Since 2001, over $2 billion has been committed to fund research and innovation. We’re investing in education, such as the digital media and film centre at Capilano University and the new design facilities at Emily Carr.

This government is ensuring that the next generation of British Columbians has the skills needed to succeed in our high-tech sector. We support many initiatives to enhance the sector, including the B.C. Innovation Council, established in 2004 as a Crown agency focused on supporting new start-ups and entrepreneurs. The BCIC does great work, encouraging the development and applica-
[ Page 5507 ]
tion of advanced or innovative technologies to meet the needs of industry in B.C.

The venture acceleration program is another initiative that comprises a network of 12 regional partners who facilitate the ongoing development of regional innovation networks to deliver the B.C. venture acceleration program provincewide.

To date the network has engaged 202 companies across the province, assisting them to add 523 new full-time jobs and attract $39.6 million in new investment to British Columbia.

Companies like Cloudhead Games and V7 Entertainment have used the accelerator program to help launch their businesses.

B.C.’s video game industry is a success story and home to one of the oldest video game clusters in North America, with more than 1,300 companies employing 22,000 people. This province is home to over 86 game development studios, employing an additional 5,000 full-time people in B.C.

In fact, the world’s foremost computer graphics conference, SIGGRAPH, has taken place in Vancouver twice in the last four years, the only city outside of the United States to host this event.

Just last week I had the pleasure to attend a tour of four local Victoria video game developers, along with the Minister of Technology and Citizens’ Services. Companies included TinyMob, GameHouse, Codename and Metalhead software. These are just four of a total of 19 gaming companies operating in Victoria providing 240 family-supporting jobs.

From large companies, like Electronic Arts in Burnaby that employ 1,700 people, to the small start-ups I visited in Victoria, the video game industry is thriving here in B.C.

I should note that I encountered a group of local video gamers and small business owners who, for the last eight years, have put on a charity event called Desert Bus. This charity has raised almost $2.5 million for children in hospitals and shelters.

Founded in 2007, it raised $22,000 in their first year. This year I’m happy to report they raised $635,000 for an organization called Child’s Play that provides toys for children in hospitals.

The B.C. tech’s report card reaffirms how critical the tech sector is to B.C.’s economy. Since the last report card the B.C. tech industry has outperformed other industry sectors in the province, particularly in terms of revenues and GDP growth.

Looking ahead, the B.C. jobs plan is focusing on ensuring the continued success of the tech sector in British Columbia. Specifically, we will update our strategic plan to further improve the climate for innovation, entrepreneurship and technology. We will expand the availability of job-ready graduates from B.C.’s educational institutions, streamline the provincial procurement systems to make it easier for local technology companies to compete for contracts, and work with other levels of government to improve the availability of capital for early stage technology ventures.

In addition we’ll be reviewing the digital audio and video effects film tax credits and recommend options for reform.

By encouraging a thriving tech sector, we can continue to grow B.C.’s economy and create new and exciting opportunities for British Columbians.

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G. Heyman: I thank the member opposite for his comments. I appreciate, as do people in the sector, the varying initiatives that have been taken by government to support the sector. But if we rest on our laurels, we will miss the great opportunities that have been outlined by the industry association.

The member opposite referred to the line item for the B.C. Innovation Council. There is, in fact, a line item in the budget and a council, but it is a small line item, and it sends a message by its lack of a larger size.

There are great opportunities, and people in the sector are taking steps to meet them. Let me just talk for a moment about some of the leadership and putting their money where their mouth is that has been demonstrated by the ASTTBC. They believe that it’s important to increase the participation of women in the sector — only at about 10 percent — as well as aboriginal students.

ASTTBC formed the First Nations Careers Council in May 2008 to assist aboriginal technologists and technicians in promoting tech careers and the application of technology in aboriginal communities. The B.C. Women in Technology was begun in 2009, a core group of ASTTBC members to support and promote women in the field.

Procurement is important. We don’t take the steps that the United States takes to support local procurement from local companies. Too often B.C. is the market of last resort for B.C. tech companies.

We could, for instance, spur local tech procurement with a central connection office, connecting tech companies with companies looking for technology within B.C. Newfoundland has mandated a local research and development fund for big companies where they invest 0.1 percent of their profits into research and development, but they make their own decisions about how to do that.

As BCTIA says, we have the start-up companies in the pipeline to realize this growth. However, without government action as suggested here, their development will undoubtedly be impeded by the lack of access to first-stage venture capital.

[R. Chouhan in the chair.]

To make this point even more strongly, without an increase in venture capital and some measures by this government to promote and support that, BCTIA projects
[ Page 5508 ]
that we will stay at 8 percent of GDP instead of rising to 16 percent by 2020, and we will have 30 percent less revenue as well as losing the opportunity for 31,000 more well-paying jobs.

I urge this government to work closely with the sector, realize the gains projected by the BCTIA and build B.C.’s economy in a modern and diversified fashion.

Deputy Speaker: Members, we have a motion. It reads: “Be it resolved that this House continue to support efforts to connect B.C. businesses with the opportunities presented by the LNG industry.”

We need House consent. Do we have the consent of the House?

Leave granted.

Private Members’ Motions

MOTION 12 — LNG INDUSTRY
AND BUSINESS OPPORTUNITIES

M. Bernier:

[Be it resolved that this House continue to support efforts to connect B.C. businesses with the opportunities presented by the LNG industry.]

It’s a real pleasure to stand up here in the House today and actually speak to this motion.

When we talk about LNG and we talk about this industry, this is actually an industry where I would say: this is connecting British Columbia. This is connecting the businesses of British Columbia and the people of British Columbia.

There are so many opportunities that we are seeing now because of the LNG industry. We look at the billions of dollars that are presently being spent already and the potential that we have for growth in this industry in British Columbia. When you look at the upstream…. You look in my riding, for instance, in the South Peace, and you think that over just the last four or five years we’ve had over $6 billion invested in that area. You look at the downstream — my colleague, the opposition from Skeena — and couple of billion dollars in the last few years spent in that area.

LNG is real. LNG is happening. The natural gas industry is a big part of British Columbia. A lot of that’s to do because of the resource that we have. You look at almost 3,000 trillion cubic feet of gas we have. I was reading a report here not too long ago. To put that in perspective, that’s enough gas to fuel every house in Canada for the next 8,000 years. This is a lot of gas. There’s a reason why we’re looking at the opportunities to be able to export this and to work with our partners from around the globe.

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I look at the hard work that the Premier and the Minister of Natural Gas have been doing to make sure that they work with the proponents and with the companies here in British Columbia to recognize those opportunities we have and to set the stage for that growth. We want to make sure that all the businesses in British Columbia have an opportunity to partake in this industry.

When you think about the fact that with LNG there could be the possibility of 100,000 new jobs here in British Columbia, this is a huge industry. This is something that’s why this government is putting so much attention and so much focus on this.

Putting it a little closer to home, in Peace River South I’ve seen firsthand over the last few years what that investment means for business. When I was the former mayor there, I saw over $50 million a year, in the small community of Dawson Creek, in investment and growth in new businesses and start-ups of companies, which means jobs. I look at the local Dawson Creek Chamber of Commerce and the hard work they’re doing.

In fact, Chetwynd and Tumbler Ridge, communities that in the past actually didn’t have chambers of commerce, are actually building those. They have members, and they’re growing in the area. Small business is taking such a big role and a big part of what’s happening because of this industry.

I think it’s important, though, to highlight that when you think of 100,000 jobs, you think of LNG and you think of the growth, this isn’t something that northern British Columbia can do by themselves. We need all of B.C. I look at the opportunities for North Vancouver and some of their companies around environmental or engineering firms, the Fraser Valley, the Interior. These opportunities are connecting British Columbia because there are opportunities for everybody. What’s really important is matching those opportunities with the businesses so people can understand what’s actually at stake here.

That’s why I’m really proud of the government and what we’ve put forward with our LNG–Buy B.C. program to really get companies connected, to understand what those opportunities are and what the proponents are projecting to have here in British Columbia. What that website is doing…. It’s about building relationships. It’s making sure that people understand what’s at stake, what the opportunities are and that companies in British Columbia are connected so they can see what’s happening.

We have to remember that when you’re looking at companies, that translates to jobs. That translates, in the LNG industry, to good-paying, family-supporting jobs. That’s why we put so much focus on LNG. That’s why we’re putting so much focus on making sure British Columbia businesses are first in line — to make sure that they have the opportunities to be part of this business.

I’ve been travelling around the province for the last year meeting with chambers of commerce and local governments with this LNG–Buy B.C. program that we’ve put in. I can tell you the businesses in B.C. are excited. They see the rainbow. They see the pot of gold at
[ Page 5509 ]
the end because of this LNG industry. It’s important that we continue connecting that and that we continue supporting it. I’m really proud of the efforts that our government has been putting in place to make sure that British Columbian businesses and the people of B.C. can take advantage of this growth.

I’m looking forward to the rest of the discussion around this. I believe everybody in this House will speak quite positively about this motion on the fact that B.C. needs to continue promoting jobs and companies here in British Columbia around the LNG industry.

B. Ralston: It’s a pleasure to follow the member for Peace River South. As a former mayor of his community, he really well understands the power of local purchasing generally.

Now, it is a challenge when big projects are proposed and are built in the province in the sense that access to some of the purchasing by those projects and their leaders is not always the case. I’ve met in the past with some engineering firms and road construction firms who have felt that in some of the P3 projects small and medium-sized firms didn’t get an opportunity to have part of the work. There is a tendency of global companies to offshore finance, engineering, equipment purchase, even fabrication, as opposed to doing it locally.

Yet it’s clear that the power of local purchasing is well known. Local businesses spend more of the dollars that they earn in their own communities.

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One expert, Mr. Shuman, who’s the author of a book entitled Local Dollars, Local Sense: How to Shift Your Money from Wall Street to Main Street and Achieve Real Prosperity, estimates that local businesses spend two to four times of what an equivalent non-local business does with its revenue.

Local businesses, again, as the member knows from his own community, are less likely to pull up stakes and move off to Mexico or Mauritania. In addition, local businesses and local control nurture local culture. One only has to think of, as opposed to brand-name or franchise businesses — which have their own place in commerce as well — unique local restaurants, shops, festivals — all derived from local control and local business.

Generally, communities with strong and vibrant local business are healthier, not only economically but socially and on all the indices of social development. That challenge is an important one. It isn’t always the case that simply because big projects are initiated, the benefits will flow proportionately to smaller businesses both within the region and within the province.

Now, the member for Stikine will speak about this in more detail, but I certainly want to strike the note or the theme that he will pursue in his remarks on this motion — that Rio Tinto Alcan very recently initiated and completed a $6 billion upgrade, basically a complete rebuild of their plant. They helped local businesses that perhaps hadn’t been thinking of supplying to the project, gave them ways of partnering with other firms and generally, as a conscious strategy of procurement, helped local business.

The website that the member refers to is really only, essentially, an electronic list. It’s only a very first and preliminary step. The bigger challenge is how to arrange, direct, guide and assist businesses in offering their services to some of these bigger companies. Sometimes their first inclination would not be to source locally. That is a challenge.

There are certainly employment opportunities. I know that the Leader of the Official Opposition has set out that as we embrace the opportunities that the LNG industry may provide, one of the opportunities is to create direct jobs for British Columbians — in our view, it should be built 100 percent by British Columbians — but the spinoff businesses have an equal opportunity, if they’re given access to procurement, to create local jobs which will enhance the prosperity of British Columbia.

It is a policy challenge. It is a direction that, I think, the government — certainly, if they follow the Rio Tinto Alcan model — may well achieve if projects go ahead. We, certainly, on this side of the House are optimistic about those prospects, and I want to thank the member for Peace River South for initiating this today.

J. Yap: I wanted to start out with some thanks — first, thanks to my colleague the member for Peace River South for bringing this important motion forward for discussion here in the House. I also appreciate the comments of the member for Surrey-Whalley, which sounded to me quite positive. He ended on a note of optimism.

This is really an issue that should transcend partisanship. All of us want this generational opportunity called LNG in British Columbia to benefit all British Columbians. It’s important that we ensure that this is exactly what transpires over the next number of months and years as we build this exciting new industry for our province and, indeed, for our nation.

This motion has to do with supporting “efforts to connect B.C. businesses with the opportunities presented by the LNG industry.”

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We have heard, and it’s worth repeating, that this is a tremendous opportunity, a generational opportunity for our province — 3,000 trillion cubic feet of natural gas that is available for us to export to markets around the world through a liquefied natural gas industry and 100,000 new jobs that will come with this industry over the next number of years, adding approximately up to $1 trillion to our economy. Exciting opportunities for all British Columbians.

The Buy B.C. initiative, I think, is very important to get this right, to connect businesses to this great oppor-
[ Page 5510 ]
tunity. I do appreciate, as the member for Peace River South has said, that his task as a parliamentary secretary is to do just that — to travel around communities around the province to generate interest, awareness and excitement in this great opportunity for all businesses, not just big businesses that will be directly involved in developing the LNG industry but small business and medium-sized businesses in the many sectors that will touch the liquefied natural gas industry, that will need to supply into the liquefied natural gas industry, all around the province.

We are looking forward to welcoming the member for Peace River South to Richmond. He is scheduled to come and meet with some business leaders through the chamber of commerce. I know he has been doing this diligently around the province, and I appreciate his great efforts and the continued initiatives that are coming out.

On a practical level, the government has the lngbuybc.ca website that has been set up. The member for Surrey-Whalley is correct. This is a first step. This is one important step along the way to connect businesses, small and medium-sized businesses, to the opportunities that are presented by LNG in our province.

We do encourage all businesses that maybe are thinking about the opportunity to sell into, to trade products — whether it’s services, whether it’s products — to the LNG industry, that they would check this out, go on the website, register and look for the next opportunity to meet with the member for Peace River South and learn about the tremendous opportunity to add and enhance their business.

I’m grateful for the opportunity to participate in today’s discussion. I unequivocally and enthusiastically support this motion.

M. Elmore: I’m very pleased to rise and speak on the motion introduced: “Be it resolved that this House continue to support efforts to connect B.C. businesses with the opportunities presented by the LNG industry.”

Certainly, the opposition NDP are supportive of the industry and recognize the LNG industry as a key component of our economy and a key sector.

It has been outlined that there is great opportunity and potential to develop the LNG industry. The NDP is in support of that and has said that it must be managed in a balanced way, ensuring that the development meets four basic principles: that British Columbians receive a fair return for the resource, because the underlying principle is that it belongs to all British Columbians; to ensure that our air, land and water are protected and that the development is as clean as possible; to ensure that the government respects and makes partners of First Nations and recognizes their right to a share of benefits that flow from the resource; and also that we see that the development of the LNG industry must guarantee jobs and training opportunities for British Columbians in return for a fair share, with respect to what that means in terms of ensuring that we have a fair-share return to British Columbians and also with respect to connecting B.C. businesses with the opportunities presented.

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We have seen that there is an announcement for the on-line tool, the LNG-Buy B.C. program, and I was looking at that. It’s a positive step, and I thought: where have I heard that before — Buy B.C.? Well, it seems that that was also a very popular procurement program to support B.C. businesses — Buy B.C. Really, we heard my colleague from Surrey-Whalley talk about the benefits of local procurement, local purchasing, creating local jobs and also the multiplier effect in our local economies. Buy B.C. was a very popular program that this government cut, so I’m happy that they are returning to that and showing their support for supporting B.C. businesses in the LNG–Buy B.C. program.

It is a positive step in terms of ensuring that B.C. businesses indicate their expertise and their interest to participate and to be contracted in the many opportunities around developing industry. But I think we are seeing…. That’s a first step, but we need to see a substantive step taken to ensure that B.C.-based companies have the opportunity and that it’s mandatory that we deliver and we realize the benefits from developing the industry and ensure that the benefits don’t go offshore.

We heard the member for Surrey-Whalley talk about the multinational companies that come in. Just by the scale, they often bring in offshore engineering and consulting firms. B.C. is known. That’s our international reputation — of having that expertise here in British Columbia for engineering, consulting and many aspects.

The next step that we need to see, and that I am, I guess, looking forward to, is seeing the Liberal government deliver on ensuring that that’s a mandatory requirement for proponents coming in, that we can see those benefits delivered to British Columbians.

As well, another expectation in terms of: how do we realize and ensure that benefits do flow to our local communities and into our local economy and benefit British Columbians? We need to see that the resources — that there is a share that goes toward these communities, particularly around…. There have been discussions with respect to the Northwest B.C. Resource Benefits Alliance.

This is an area where I will also be watching and monitoring. Consultations have been initiated in terms of…. But we need to see action, and we need to see results delivered to benefit British Columbians for the development of the industry.

M. Morris: It’s my pleasure to rise in support of the motion from the member for Peace River South. LNG is going to be transformational for British Columbia — and for Canada, by the way. But mostly, in addition to
[ Page 5511 ]
all the benefits that we are going to see accrue to British Columbians and Canadians, we are also going to see significant benefits accrue to our First Nations partners and citizens of British Columbia.

Now, 60 percent of the population of British Columbia live in the northern three-quarters of the province. Most of those communities are going to be intricately involved in LNG with the pipelines passing through some of their traditional territories. We don’t know yet what the downstream benefits are going to be with respect to LNG development and other petrochemical developments that we see occurring because of the fact that we have LNG in such plentiful supplies here in British Columbia.

We have several First Nations groups that have signed on to economic benefit agreements in British Columbia — so far, I believe, 15 — along the pipeline route for Kitimat LNG. We’ve got several others that are negotiating economic benefit agreements with the province as we speak, right from the northeast corner of British Columbia all the way to the Pacific coast in the northwest.

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Many of these communities see the opportunities that will be presented to them in the future. A lot of our First Nations communities are recognizing the benefits of economic certainty in the future.

A couple of examples. In my area we have Duz Cho. It’s a company owned by the McLeod Lake Indian Band that is one of the largest logging companies in British Columbia. They’ve branched off into construction. They work at Mount Milligan with a lot of heavy equipment that they have in Mount Milligan for the mining corporation there. They see opportunities that present themselves, and they take an entrepreneurial approach to it to make sure that they reap the benefits from some of the economic opportunities there.

McLeod Lake was able to pave all the roads in their community in the past couple years. They’ve been providing dividend cheques for members of their band so that they can get some of the luxuries in life, I guess, that they don’t normally have access to.

With LNG, we’re already seeing some of the spinoff benefits, from a business perspective, in northern B.C. in particular and in other parts of the province here.

I had occasion on Friday to stop in and watch a group of aboriginal persons from McLeod Lake — from the Tsay Keh Dene Band north of Prince George, from the Cheslatta band, which is west of Prince George — participating in an emergency medical responders course in Prince George. These individuals are going to go back to their bands and provide emergency medical response to companies that are working on pipelines, companies that are working on construction, in various aspects throughout northern British Columbia. They’re also going to be able to supply emergency medical response to calls within their own remote communities.

I see that as a benefit of what we are doing in laying out the groundwork in the planning for our skills training.

The member for Surrey-Whalley was talking about overseas opportunities for large consortiums to bid on some of the opportunities that we have in British Columbia. But we can’t forget about companies in British Columbia that are big enough to look at those opportunities.

We have a company in Prince George that actually started in the small community of Vanderhoof. Bid Construction now owns companies right across Canada and down into the United States that provide metal fabricating and engineering work for sawmills and other large industrial plants, which have the capacity to bid on a lot of the projects that are going to be coming up and taking place within the LNG industry itself.

They’re supplying a lot of local employment. They’re providing apprenticeship programs for welders and fabricators and other people in the trade to get more involved in that. There are other examples in Prince George and throughout the northern half of the province of companies that have the capacity and capability to do that.

Rio Tinto Alcan was also mentioned by the member opposite. Rio Tinto Alcan did a lot of work prior to commencing their upgrade project in Kitimat. They visited Prince George. They got a list of the suppliers and services that are offered in Prince George and through every community throughout northwest B.C., and it’s led to great dividends for that. So the businesses are going to prosper.

R. Austin: It’s a great pleasure for me to rise and speak in favour of this motion brought forward by the member for Peace River South. As he alluded to, he lives on the upstream of the LNG world, and I’m at the other end of the pipe, in Kitimat. We’ve had many great conversations, he and I, over the last few years. It’s nice that we can have a debate in the House about something that’s very important and that will bring lots of benefits, hopefully, to the northwest, to northern B.C. and to all of British Columbia.

I’d like to spend a few moments just going into detail on what some other members here have discussed with regards to the experience of Rio Tinto Alcan in building their new smelter, because it’s very interesting.

They have a metric which shows the total amount of capital expenditure in the last three or four years on their new smelter. The total, of course, right now stands at around $4.8 billion, which is a very significant amount of money. It shows that a large portion was spent locally. When I say locally, I mean Terrace, Kitimat, Prince Rupert.

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They then show a metric of how much was spent in northern B.C. — and the member for Prince George–Mackenzie describes how they went to Prince George and other areas of northern B.C. to try and keep as many
[ Page 5512 ]
dollars in the north. Then they show what was spent in British Columbia as a whole, and then they show what was spend outside of the country.

We have to realize that it goes way beyond simply having a website that connected companies. This was a conscious decision by the management of RTA to try and make sure that their capital expenditure on this new smelter benefited British Columbians first and foremost and those who lived locally first and foremost. This poses huge challenges when you have small companies seeing what is available but then trying to figure out how they have the capacity to bid on these things.

One of the things that Rio Tinto Alcan did was recognize first and foremost that small companies didn’t necessarily have the skills or the capacity, the financial wherewithal to be able to bid on some of their large contracts. What they did was put some of those small companies in touch with bigger companies — hopefully in B.C., but sometimes from outside the area, from Alberta and other places — that had the expertise. What they did was actually help these small companies to create partnerships with a larger company so that they could bid together and build capacity locally in the region.

I think that’s a very innovative thing and something that I would hope that any LNG companies that come to a final investment decision will look at and go and find out from RTA what was accomplished, or find out from the government. I’m sure that there have been discussions that have taken place in terms of what the experience was in managing a large-scale development like the smelter. Certainly, this has really helped small local companies to benefit.

I also want to spend a moment, though, to recognize that it’s not just about connecting companies. One of the reasons why the RTA smelter went over budget was because even though they had made these connections and had lots of people bidding on it, there was a skill shortage, a serious labour shortage, in British Columbia and in the northwest in particular. I think it’s incumbent not just upon the companies but also upon government to recognize long ahead of time that you have to make those investments in the skills.

I’m going to speak for a moment with regards to a First Nations band. They had a benefit impact agreement on one of the large projects in northwest B.C., the northwest transmission line. They were able to get, as part of this benefit agreement, the right to take care of clearing the land for 92 kilometres of the northwest transmission line.

What they found is that they won this benefit in their benefit impact agreement, but they didn’t have enough skilled people amongst their own nation to go and do this work. Why? Because they hadn’t had the skills being built up in the years ahead. In the end that benefit agreement contract actually went to an Alberta company, which defeats the whole purpose of having local benefit impact agreements to try and help First Nations in the northwest.

I would like to say this, as well, and I’ve said it before in the House. We look at unemployment rates amongst aboriginal communities, and we fail to recognize that if people are not looking for work, they are considered to be employed. That’s not the case. There are hundreds of young people in northwest communities, particularly First Nations communities, who don’t fall under the unemployment figures who are actually unemployed, unskilled and require the skills necessary to go out there and compete for these kinds of jobs.

Let’s hope that if we get to a final investment decision on an LNG plant — and certainly, I for one, and I think everyone in this House, hope we do — those are the people who benefit.

J. Thornthwaite: The development of the LNG industry in B.C. is all about diversifying the market opportunities for the world-class supplies of natural gas. Where in the past we exported natural gas by pipeline to the United States, now, through the cryogenic process, we can reduce the temperature to negative 160 degrees and are able to safely export our gas to markets in Asia.

As this opportunity develops in British Columbia, the government is committed to making sure that B.C. companies benefit, which is why the Premier announced the LNG–Buy B.C. program. On November 18, the LNG–Buy B.C. tool was launched live on line. The LNG–Buy B.C. program goes far beyond connecting companies located in the natural gas supply corridor from Fort St. John to Prince Rupert, Port Edward and Kitimat. This program will connect businesses from all over the province as the opportunities arise with the development of the LNG industry.

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What is even more exciting is that the diversity of demand for contracted services goes well beyond the drilling, pipe-laying and construction phase. The B.C. Business Council contracted a study a few months ago that said that more than 50 percent of the resource industry jobs are located in the Lower Mainland, encompassing professional careers such as engineers, accountants and lawyers.

Last week, when the on-line registry was launched, the two companies featured were a promotion and sign company from Terrace and a camp accommodation company from Kelowna. In my own community of North Vancouver, Xantos Marine is currently working with the Nanaimo Port Authority to prove that their marine electronic highway system will become to B.C.’s shipping safety what air traffic control is to Vancouver’s YVR.

We all want a world-class marine safety program in place. In fact, Xantos Marine won the 2013 small business excellence award for innovation from the North Van Chamber of Commerce. As we learned in a video that was produced by Capilano University film students at the time, Xantos provides marine security for navies, coast guards, ports and marine police.
[ Page 5513 ]

They develop software that integrates different sensors such as radar, automated identification systems, cameras, satellites and underwater sonar with their system’s display in order to enhance the functionality of all the sensors. All this is to achieve marine domain awareness.

In addition, Xantos had their own supply chain of British Columbia companies who indirectly benefit from LNG development. These companies come from all over the province. This supply chain includes Russell Technologies, again in North Vancouver, which builds integrated PC-based radar systems; Ascendent Technology from Cranbrook, which manufactures thermal imaging equipment; and AXYS Technologies from Sidney, a company providing environmental data acquisition systems and sea state monitoring.

So you see, the development of LNG in B.C. is providing positive opportunities for hundreds if not thousands of businesses across the province that encompass numerous different jobs in accommodation and food services; arts, entertainment and recreation; clean energy and environmental technology; education services; finance and insurance; health care; social assistance; and real estate, rental and leasing, to name just a few.

I wholeheartedly support the motion brought forward by my colleague from Peace River South in support of the LNG industry.

C. James: This motion that is in front of us, I would expect, would be supported by all members in this House: to “continue to support efforts to connect B.C. businesses with the opportunities presented by the LNG industry.”

In fact, I would hope that all members in the House would support that for all industries in British Columbia. As we continue to see economic growth in our province, we want the opportunity for B.C. businesses and B.C. workers to have the chance to be able to contribute, to have the chance to be able to participate and to capture those opportunities.

I think there’s a very interesting and important point here. That is that if we are going to support efforts for B.C. businesses, efforts mean investments, and efforts mean planning. It doesn’t simply happen. I appreciate the member for Peace River South and others who have spoken about the LNG–Buy B.C. — I think an important registry and an important move. But simply putting a registry in place and asking businesses to register does not solve the many issues that B.C. businesses are facing.

It’s interesting timing as well. Many of us in the House travelled on the Finance Committee, doing consultations around the province. We heard from many businesses and chambers of commerce, as the member for Peace River South talked about, who spoke to the issue of not simply LNG growth but, in fact, any major investment growth that may occur in the province.

They talked about some of the things that were critical for them to be able to participate in that growth if it occurs. I just want to read a couple of quotes, because I think it’s important to hear those voices from those communities. They speak strongly to the motion that is here in front of us.

From Fort St. John, we heard: “We need the province’s assistance. We are struggling today with insufficient provincial infrastructure, which we require to recruit, attract and retain skilled workers.”

“We have seen a drop in the number of medical professionals in our communities.”

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Public safety is also a concern. “We need the province to step in and support us with our roads and our transportation infrastructure.”

That’s just one community. We heard that from many communities — Prince Rupert, Terrace; in fact, we heard it from Delta as well — about the importance of doing that planning.

If we’re looking at something like LNG, where there are opportunities for economic growth and opportunities for those communities, it doesn’t simply happen by itself. The businesses that I talked to, the communities that I talked to and the First Nations that I talked to all want to be engaged. They all want the opportunity to take part, but again, they’re not able to fully participate unless there are some pieces in place.

One of those clear pieces is a commitment to funding for post-secondary education — our colleges and universities. We heard from other members on the importance of jobs that will be coming forward. If those jobs are coming forward, one of the priorities for us — on this side of the House, certainly — is making sure that B.C. workers have the opportunity for those jobs.

That won’t happen when government isn’t investing in post-secondary education — when, in fact, the budget is going to be cut over the next couple of years in the area of post-secondary education. So it’s critical, again, to make this motion happen that we all agree with.

Let’s support efforts to connect B.C. businesses, but let’s do that by making sure that we’re putting in place those investments. Let’s make sure we invest in skills training. Let’s make sure that those supports are in place for First Nations communities where there’s a high unemployment rate. Those communities want to take part, but they need the basic skills to be able to do that.

They need the opportunity for college and university. Yet again, we heard presentations from everyone — from College of the Rockies to Northern Lights — that they’re seeing some real challenges in their colleges when it comes to being able to provide. They’re very successful; they’re very good at what they do. But in order to really take advantage — again, to come back to the motion — of those opportunities, they have to have the investments to be able do it.
[ Page 5514 ]

While I certainly stand in support, as I am sure everyone in this House does, I would encourage the government to take that next step, which is to look at the infrastructure that’s necessary. It’s pretty tough to look at an LNG industry when you are Prince Rupert and have your airport on an island or have wooden bridges in town still.

Those are the kinds of things that the government needs to be planning if you’re looking at this kind of increase in investment. Those are the kinds of resources that have to be put in place beforehand.

Let’s train our people up now so that we’re not saying, “The jobs are here, but there is no one to take the jobs,” when we know there are people who are unemployed, when we know there are people who want the opportunity to be able to go to college and university.

G. Kyllo: It’s my pleasure to take my place in the debate this morning and support the motion by the hon. member for Peace River South. My colleague has criss-crossed the province for the better part of a year hosting LNG–Buy B.C. seminars and meeting with business owners, explaining how they can benefit from the incredible opportunities in the LNG sector.

While these projects will largely be constructed and operated on the coast, our government wants B.C.-based companies from all regions of the province to be part of the process in building this new and exciting sector. We are helping to make it happen.

On November 18 our government launched the LNG–Buy B.C. tool, which is now live and open for registrations. Suppliers from across the province are welcome to register and take the first step of connecting with LNG projects so that they, too, benefit from these opportunities.

The tool is helping B.C. companies link with LNG proponents and better position themselves as preferred bidders and, eventually, suppliers in LNG projects. Over 300 companies have already registered, including 25 aboriginal-owned businesses and over 50 companies from the Thompson-Okanagan region, which includes the Shuswap.

Businesses range from construction, oil and gas consulting, technical service providers and modular home manufacturers, to also food and beverage suppliers, printing services, metal and machinery manufacturers and website designers.

LNG proponents are looking for the support and expertise that B.C. businesses have to offer. The on-line tool will show them the broad range of skills and capabilities that B.C. businesses have to offer.

We are championing LNG’s development and believe that British Columbians will benefit for generations to come, which is why we have the LNG strategies as part of the B.C. jobs plan.

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Natural gas is already one of the key sectors of our province’s economy, contributing over $6.4 billion to our economy in 2013. LNG will add value to our natural gas sector, creating thousands of new jobs and economic opportunities for the next generation of British Columbians. LNG will also provide a significant opportunity for small businesses.

Early this fall we included a cross-sector strategic focus in the jobs plan, highlighting small business, First Nations and aboriginal peoples and manufacturing, reaffirming our commitment to support these areas of significant importance.

We also need to make sure that all businesses have the right people with the right skills in the right places at the right time so that they can start working on the LNG projects as they move forward. In the B.C. skills-for-jobs blueprint we are training British Columbians to have the skills needed to fill the top LNG-related jobs and other in-demand occupations. This will ensure youth and B.C. workers are first in line for the jobs of the future.

Re-engineering our system doesn’t mean spending more. It means targeting more of the substantial resources already available to meet labour market needs so that growing sectors in B.C. have access to skilled workers so that they can expand and prosper.

As MLA for Shuswap, I’ve met with many business owners, discussing current and future economic opportunities in B.C., including those presented from the development of the liquefied natural gas industry. This is an exciting time for our province. On the topic of LNG, it is crucial for businesses to have access to workers with the right education and skills to allow them the opportunity to capitalize on the development and growth of the LNG industry in B.C.

If you listen to the business community in any town or city, they’ll tell you the need to seize the opportunity and use these benefits to help grow our economy, create new jobs and invest in the future of our province. We’ve made significant investments with the Fort St. John Hospital. I’m from Fort St. John originally. I’ve got a lot of heart and a lot of family still up in that area. I’m still fairly connected with the northeast.

There’ve been also significant investments made in transportation and highway infrastructure, which is going to help support the creation of the LNG industry and all of the upstream work that’s going to be happening in the northeast.

We want to make sure that businesses of all kinds benefit from the LNG industry. The LNG-Buy B.C. tool will play a key role in making sure that businesses large and small and communities in every region of the province stand to benefit from the LNG development. Thank you for the opportunity to speak in support of this opportunity.
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K. Conroy: I thank the member for Peace River South for moving this resolution. As you’ve been hearing from my colleagues, we support the development of B.C.’s LNG industry as long as it’s done right. Doing it right means a number of issues need to be addressed to ensure that LNG is to the benefit of all British Columbians.

We need to ensure that LNG will mean jobs and training opportunities for B.C. workers. Are there enough workers in B.C. to make sure this happens? Obviously not. We know that the B.C. Liberals have failed at ensuring proper trades training of our young people. Hopefully, there will be much more done to address the much-needed trades training.

In the meantime, it would mean hiring folks from outside of B.C. Let’s hope we look at Canadians first and then immigrants, immigrants who can have the opportunity to work in B.C., potentially even becoming citizens.

The Premier promised 100,000 LNG jobs, but now she is trying to arrange for the industry to bring more temporary foreign workers to the province. These are lower-wage workers on short-term contracts who won’t be given the chance to make a life here in B.C. through immigration, like so many of our families have. My father came as an immigrant with a trade and was able to become a Canadian, raise his family here. We have all raised our families here, and now we have fourth-generation little Canadians being raised here. Hopefully, they will benefit from the LNG industry.

One has to ask why the government promised industry lower-paid temporary workers and now try to claim that the temporary foreign worker program is, in fact, an immigration program when they know full well it isn’t. Temporary workers brought to this province to work in LNG would not have a chance to build a life here. They will surrender their passport to their employer when they arrive and get a return ticket home when their boss decides that the work is done — the exact opposite of what happened to my father and thousands of hard-working immigrants just like him.

Again, we ask: why support an LNG industry where B.C. workers, including new Canadians, are first in line for jobs? Because it’s right.

We also need to ensure that the industry does, in fact, benefit the local economy. An example of this is the expansion of the three dams in my constituency. In all three projects, the Columbia Power Corp ensured, in partnership with the companies they were working with, using local goods and services.

The boon to the local economy has been significant. When you think of all the concrete being poured at the Waneta expansion — 85,000 cubic metres to date — and the local business, Selkirk Paving, that has benefited and also other smaller amounts, like Castlegar Ready Mix, for smaller projects, it’s a significant contribution to our area’s economy.

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Is this part of the agreement with the companies the government is dealing with? I certainly hope so, because to have real investment, there needs to be a commitment from the government that’s passed on to these businesses.

Part of our dam projects was also a local-hire agreement, which ensured local folks would get the jobs at the local projects. It allowed for workers to actually stay home, not live in a camp and have the situations that camps cause in communities — a much healthier lifestyle for employees, their families and the communities.

We also agree that an LNG industry must be developed while protecting our air, land and water by controlling all greenhouse gas emissions, from wellhead to waterline. We need to ensure an environmentally sustainable industry that will provide good family-supporting jobs for years to come. It means honouring our climate change commitments to reducing greenhouse gas emissions.

The cleanest industry in the world was promised, but instead, the legislation introduced by the B.C. Liberals fails to address upstream emissions from natural gas production. It also gives liquefaction facilities loopholes, meaning that they do not have to reduce the greenhouse gas emissions now or in the future.

One has to ask: what kinds of steps will the B.C. Liberals take to prevent methane leaks? Methane, the most dangerous greenhouse gas of all and a component of drilling for LNG, is at least 20 times more harmful than carbon. Let’s hope there is something in the regulations somewhere that ensures that methane will be dealt with and not be ignored, with considerable consequences.

Opportunities with LNG also means ensuring that British Columbians get a fair return for their resource. It is our resource, a resource that should benefit the people of the province today and in the generations to come. Is it wrong to think that the energy from our gas should be used to lower energy costs in B.C. for our citizens, for our forest industries, for our mining industry and for a business, whether it’s a restaurant in Castlegar or a manufacturing business in Kamloops?

Why shouldn’t we benefit first and then ship what’s left to other countries needing our resources? Well, the chances of that happening are probably zero to none, but we still need to ask the question, still need to get it on record that we should all be benefiting — as a province and not just the areas where the gas is based or where the work will be done or companies which feel their investment gives them full entitlement to our resources.

The entire province benefited from the Columbia River treaty, where we gave away our resources as part of that deal over 50 years ago. We need to ensure the entire province benefits this time too. With construction still years away, there is time to ensure all this happens — to ensure that, in fact, not only will businesses benefit from the LNG expansion but that the province and the citizens will too.
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J. Martin: On behalf of my constituents in Chilliwack, I would like to thank the member for Peace River South on two counts. First, I would like to thank him for bringing the following motion to the floor of the Legislature: “Be it resolved that this House continue to support efforts to connect B.C. businesses with the opportunities presented by the LNG industry.”

Secondly, I would like to thank the member for placing his full support behind this motion by attending and speaking and conducting seminars throughout this province to educate the business community how best to benefit from LNG. As a matter of fact, the member for Peace River South from was recently in my riding, and we held an LNG–Buy B.C. information session for businesses and interested parties in Chilliwack and the surrounding area.

It was attended by industry representatives already involved in the manufacture of materials for the LNG sector, as well as others who are looking to position themselves and find the best fit for their company and services.

Among the attendees, for instance, was ENN Canada. ENN invested in Chilliwack and built a natural gas refuelling station along Highway 1, one of the busiest trucking corridors in British Columbia. Last spring this company demonstrated that the trucking industry is ready to embrace natural gas as a safe, cleaner and cost-competitive alternative to diesel by filling up its 1,000th truck in less than two months after it opened shop.

Another participant in that seminar was IMW Industries in Chilliwack. IMW is the largest sole manufacturer of gas compressors in the world, and they are pursuing further business opportunities in British Columbia in the LNG sector.

All of this illustrates that communities throughout B.C. are poised to benefit from LNG. With all of this positive support for the LNG industry, it behooves me why the opposition refuses to sign on to the high-paying jobs and the many spinoff opportunities to be generated by LNG.

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For example, when the LNG–Buy B.C. program launched its on-line tool recently to directly connect local businesses with LNG companies, the member for Saanich South posted the following on her Facebook account from November 18: “Today the B.C. Liberals launched their LNG–Buy B.C. program. It is some sort of lame attempt to create more pipedreams, I’m sure.”

What does this say to the business community in and outside of this country? What does this say to the investment community? It demonstrates that a member of this Legislature is prepared to sacrifice high-paying jobs and business opportunities throughout B.C. What does this say to the people who really do want to work in LNG?

Interjections.

Deputy Speaker: Members. Members.

Please carry on.

J. Martin: I am certain they will not appreciate the opposition trying to deliberately undermine their career aspirations. If there is a pipedream here, it will be the opposition’s attempt to appeal to voters in 2017 with such behaviour.

[Madame Speaker in the chair.]

What of the Leader of the Opposition? His latest attempt to derail LNG prospects in the north took place in Prince Rupert last week. He donned a hardhat, had a photo op and, an hour after leaving town, went on the record saying: “This community has no future.” What does this say to leadership? Sadly, we have an opposition intent on inflicting as much damage on future business prospects with little regard for the people currently working in the industry or those planning a career and a future in LNG.

In conclusion, if I may impart one piece of advice: before posting on line, before speaking to the media, please think twice, because it can have a devastating and crushing effect on job creation throughout this province. Meanwhile, this government will continue to promote and will continue to support this lucrative emerging sector.

J. Martin moved adjournment of debate.

Motion approved.

Hon. T. Lake moved adjournment of the House.

Motion approved.

Madame Speaker: This House, at its rising, stands adjourned until 1:30 this afternoon.

The House adjourned at 11:57 a.m.


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