Orders of the Day

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

Motion approved.

Presentation of Estimates

ESTIMATES OF SUMS REQUIRED
FOR THE SERVICE OF THE PROVINCE

Hon. C. James presented a message from Her Honour the Lieutenant-Governor: Estimates of Sums Required for the Service of the Province for the fiscal year ending March 31, 2018, and a supplement to the estimates for the fiscal year ending March 31, 2018, recommending the same to the Legislative Assembly.

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

Motion approved.

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

Budget Debate

Hon. C. James: I want to begin by acknowledging that we’re on the traditional territory of the Songhees and Esquimalt people and thank them for the ability to meet and work on their land.

I’m pleased to rise today to present Budget 2017 Update, putting us on a path to build a better B.C. for everyone.

It was clear in the results of the last election that the majority of British Columbians were frustrated about the direction the province was taking. They didn’t see their priorities reflected in the decisions being made.

Now, along with our colleagues in the Green caucus and across the floor with the official opposition, we have a real opportunity to do things differently. I look forward to working with all members of this Legislature on the plan we have to make life better for the people of this province.

We’re a new government with a clear vision. You heard in the throne speech that we’ll put the focus of government back where it belongs — on the people of this province. You heard that we’re going to work to change the way governments are elected and how political parties receive donations so that our institutions work better and reflect the will of all British Columbians.

You heard that our government is committed to working with Indigenous communities towards lasting reconciliation, embracing the United Nations declaration and the Truth and Reconciliation Commission.

You heard that our government will make life more affordable, deliver the services people count on and create a strong, sustainable economy that works for everyone.

This budget today is a road map to support those priorities. It’s a budget that puts people first. It takes important steps to help meet some of the most urgent needs and sets a new course where a strong economy works for the many, not just the few.

For the past 16 years, we’ve seen children and parents struggle to get supports, seniors who can’t find the care they need, families unable to afford housing, and businesses that can’t find enough staff because the people can’t afford to live in the community they work in.

[2:25 p.m.]

We’ve seen increasing fees, people paying more while getting less. B.C. has had one of the highest poverty rates in the country. These aren’t just examples or statistics. These are real families, individuals and businesses struggling to get by because of the choices made over the last 16 years.

As Minister of Finance, I’m going to work with my colleagues to carve a new path, where everyone benefits from our strong economy; where economic growth goes hand in hand with investing in our greatest resource, people; where reducing inequality, investing in the services people count on and supporting a thriving, competitive, innovative economy are inextricably linked; where addressing climate action is a tool for long-term sustainable growth and jobs in every corner of our province.

A budget should benefit the people of our province, not just a few at the top. That’s why we’re committed to making choices that benefit everyone. We’re committed to strengthening our economy. We want our province to be a place of strong industries, thriving entrepreneurship, flourishing small businesses, a well-educated workforce, good jobs and sustainable economic growth. Most importantly, we’re going to do this by investing in British Columbians.

A government’s budget does not stand alone. A budget that invests in people also invests in a strong British Columbia — a province where people have the tools to thrive, provide for their families, develop skills, educate themselves and their children and give back to their community.

In this budget update, we present a strong, responsible fiscal plan that puts people first, while helping to ensure the long-run fiscal sustainability of our province.

Our balanced budget for 2017-18 includes total spending of $51.9 billion, total revenues of $52.4 billion, a forecast allowance of $300 million, a budget surplus of $246 million and record levels of capital spending while maintaining a debt-to-GDP ratio that’s affordable.

British Columbia’s economy is strong, and employment, retail sales, housing starts and exports have all exceeded expectations. The outlook in this budget for this year’s real GDP growth is 2.9 percent — prudent, compared to the outlook provided by the independent Economic Forecast Council. Private sector forecasters expect B.C. to rank near the top of provincial rankings in economic growth in 2017 and 2018. We’re competitive as a province, a destination for investors, and we’re committed to seeing that continue.

We will also make the targeted investments that British Columbians have been waiting so long for. It’s the people of B.C. who built this budget and the people of B.C. who are responsible for our economic success. It’s our entrepreneurs, our businesses, our workers, our teachers, our newcomers, our communities and our citizens who built this province. British Columbians should benefit from economic growth in tangible ways that make a difference in their lives, every day.

Now, that doesn’t mean we can make choices independent of the very serious challenges that we all face. Our government is very conscious of a number of issues that are impacting or have the potential to impact our province — fiscally, socially and environmentally.

Some of these come as a result of unexpected or unprecedented developments. For example, this summer, B.C. experienced the worst wildfire season ever in our history — consuming more than a million hectares of forest, forcing people in many communities out of their homes. We’re helping people with the recovery process, including $100 million in support being administered by the Red Cross for individuals and businesses who’ve been impacted by evacuation orders. This funding is in addition to contributions from the federal government.

Fighting the wildfires added more than $600 million in cost pressure to B.C.’s budget. That’s a critical expenditure, because in these tough times, British Columbians and their government stand with their communities and with their neighbours. While we help to manage the current crisis, we’ll prepare for future fire seasons so we can keep people safe and protect our communities.

[2:30 p.m.]

In this budget update, we’re funding capital investments of $15 million over three years to upgrade wildfire infrastructure, including buildings, trailers and air tanker bases. We’re also providing $140 million for projects focused on wildfire risk reduction, reforestation and wildfire habitat restoration.

The wildfire response this year involved more than 1,600 firefighters and support staff, as well as support from across the country and around the globe. That’s a very real reminder of the vital work that these men and women do on the front lines.

So as a small gesture of our acknowledgment and gratitude, we are moving forward with the implementation of the tax credit for volunteer firefighters and search and rescue volunteers. Thousands of volunteers across this province will soon be eligible for a $3,000 non-refundable tax credit. This tax credit was broadly supported in the Legislature last February and recognizes the hard work and dedication of B.C.’s volunteer firefighters and search and rescue volunteers who donate their time and often risk their lives to protect British Columbians.

Another unprecedented challenge we face as a province is the fentanyl emergency. Already this year, opioid-related overdoses have taken the lives of too many people. This public health emergency has impacted families and communities. It’s being tackled by health providers, first responders, not-for-profit agencies, front-line workers, law enforcement and a host of other professionals.

In this fiscal update, we’re going to help with this fight. We’re making a $290 million investment towards the Health Ministry and the establishment of the Ministry of Mental Health and Addictions. We’re adding another $32 million to help law enforcement and coroners respond to the emergency, for a total investment of $322 million over three years to begin to address this crisis. We’re committed to providing help quickly for people who need it. And this funding will go towards supporting prevention, early intervention, treatment and recovery, as well as supporting law enforcement in their work to keep drugs off the street.

While we face these unexpected challenges at home, others are the result of uncertainty in the global and domestic market. That’s most notable in our neighbour and largest international trading partner to the south, as we deal with the uncertainties around U.S. fiscal and trade policy, including the softwood lumber dispute and NAFTA. As well, there are ongoing economic challenges in Asia and Europe. Adding to these global challenges is the potential for further tightening of Canadian monetary policy and rising interest rates.

While the province manages events that are unexpected and largely out of our control, we also face pressures that are a result of government choices that meant services were strained, leaving many people behind. There are issues that have been neglected over many years and need to be addressed as soon as possible — issues like housing affordability, poverty, rising fees and all the other ways that individuals and families have struggled over the past year to make ends meet.

Funding for health, education, social programs and other government services haven’t kept up with demand, which has meant our front-line workers haven’t been able to provide the level of service that people need and expect.

Our Crown corporations, like ICBC and B.C. Hydro, are facing serious structural issues. Addressing these complex problems won’t happen overnight. But just because some of the issues we face are tough, just because they’re going to take time to resolve, doesn’t mean we shouldn’t take the first steps to begin to address them.

This budget update is a start, as we move towards a full budget in February. It’s a good start, as we begin to address these issues in a way that benefits all people in this province. Because this is your money. You worked hard for it. This is your budget. Our government’s first priority is making life more affordable for people, because a sustainable economy needs to invest in the people that helped build that economy. Too many people in our province are struggling to get by.

[2:35 p.m.]

Housing costs throughout B.C. have skyrocketed. People can’t afford a home in the community that they work in. Renters can’t find a place to live. Families can’t get into the housing market as they grow, and parents worry about their kids’ future. This hurts people and the economy. Businesses can’t attract and retain the talent they need to contribute to our growing industries. Families build up debt. They’re stuck living paycheque to paycheque.

Putting people first is our government’s priority, and we’re working on a comprehensive strategy to improve housing affordability, close speculation loopholes and reduce tax fraud and money laundering in B.C.’s real estate.

In this budget update, we’re also taking first critical steps with two housing initiatives. First, we’re going to invest $208 million over four years to support the construction of more than 1,700 new units of affordable rental housing in communities across this province. These units will help British Columbians who are finding that rent is taking up a disproportionate amount of their monthly income.

We also know that those without a home deserve and need our assistance, and we’re committed to working with all levels of government — federal, municipal, Indigenous — to address homelessness. To get started on this work, we’re providing funding in this budget for 2,000 modular supportive housing units for people who are homeless. That funding includes $291 million in capital spending over two years to construct the units and another $172 million over three years to operate them and provide 24-7 staffing and support. These housing units are a step towards helping people who are homeless.

We’re also providing immediate measures to ensure that renters are treated fairly in this province and that the rights and responsibilities of both renters and landlords are clearly understood. This budget update provides an additional $7 million to the residential tenancy branch to address existing backlogs and wait times for landlord-tenant disputes.

As we begin to address the issue of affordable housing, there are also other affordability challenges that we’re acting on, because after 16 years of waiting for relief, the people of this province can’t wait any longer.

We’re starting that relief by reducing Medical Service Plan premiums by 50 percent, starting on January 1, 2018. Starting in the new year, more than one million British Columbians won’t pay any MSP premiums. Individuals will save up to $450 per year and families up to $900 per year. This is just the start of our work as we move towards a complete elimination of this unfair cost over the next four years.

Those on income assistance and disability assistance also, quite literally, couldn’t afford to wait any longer for meaningful increases to their rates because they’ve already waited more than ten years. So starting with the cheque that arrives on September 20, people on income assistance and people on disability assistance will receive an additional $100 a month. That’s just a beginning to relieve some of the pressure, and that’s just the start of our work.

We’re also committed to fighting poverty. We’ve created a ministry and a parliamentary secretary tasked with finding solutions to reduce poverty in B.C. After years of being the only province without a poverty reduction plan, I’m proud to say that today’s budget update includes the initial funding needed to develop for British Columbia a comprehensive poverty reduction plan. This also includes designing a basic income pilot project that will test its effectiveness in reducing poverty and improving health and employment outcomes.

[2:40 p.m.]

Reducing inequality is also why we’re creating a fair wages commission as we move towards a $15-an-hour minimum wage for British Columbia. The fair wages commission will help this province’s lowest-paid workers receive a fair wage, while working with businesses on how to transition in a way that benefits both employees and businesses.

As well, to assist hard-working parents and guardians, to strengthen our economy and to assist businesses with retention and recruitment, we’re moving forward with plans to provide a quality, accessible and affordable child care plan for families. Our first step is moving forward with $20 million in child care investments that will increase our spending on early childhood development and child care to $330 million this year and support more than 4,000 child care spaces.

That’s simply the first portion of what’s to come. We’ll be working with parents and experts to develop and implement a long-term plan that will make quality, accessible, affordable child care a reality for families in our province.

Continuing our work to help British Columbians and their families, as promised, as of September this year, the government has eliminated tolls on the Port Mann and Golden Ears bridges. It’s a change that will save families who regularly have to cross the Fraser River an average of $1,500 per year. Commercial drivers who average one crossing a day will save $4,500 a year or more. These savings mean tens of thousands of drivers who cross the bridge every day will have more money in their pockets and more to invest in B.C. businesses.

While we’re finding ways to make life affordable for British Columbians and their families, we’re also going to start to rebuild and strengthen the core services that people count on. The previous government’s approach of starving services undermines long-term sustainable growth. Investing in programs and services benefits people as well as a strong economy, which people are then able to take part in.

That starts with education. A strong education system is fundamental to a strong economy; healthy, vibrant communities; and a bright future for this and future generations. I’m proud to tell you today that we are confirming funding of $681 million over three years to invest in children and our education system. These new resources will provide children with smaller classes and more supports that they need to succeed, including the hiring of approximately 3,500 teachers.

As well, we’re providing capital funding of $50 million to ensure space requirements for kids going back to school are addressed. This investment goes directly to fund the future of our province by finally starting to provide our school system with the resources it needs to help our children succeed.

Health care is another area where we’re going to begin to make the kinds of changes that people have been waiting for. We’re going to start, in this fiscal update, with a $603 million increase over three years to the base budget for the Ministry of Health, with $265 million of that going to address the fentanyl emergency and the remainder addressing other pressures in the health care system.

Incremental to these amounts is $25 million to establish the new Ministry of Mental Health and Addictions, which will provide the key strategic leadership in developing a seamless, coordinated mental health and addictions system in our province.

Also, $32 million is added for law enforcement to disrupt the drug supply chain, provide more naloxone training and help police personnel deal with fentanyl exposure, as well as the pressures being faced by the B.C. Coroners Service as part of this public health emergency.

We’re also going to provide consistent funding to the therapeutics initiative — $2 million a year to ensure the effectiveness of new drugs, better serve our citizens and reduce costs to our health care system.

To help benefit our seniors, the Ministry of Health will receive $189 million over three years through our B.C.-federal agreement to help improve access to home and community care.

[2:45 p.m.]

To help children from low-income families achieve good health outcomes, $15 million over three years is provided for the healthy kids program. This program already provides basic dental and optical care to children in low-income families, and with this new funding, these children will now have access to hearing assistance benefits and improved access to dental services.

This is critical. The health and welfare of our children are important if we want all of B.C.’s children to have a level playing field to succeed in life. That’s why this budget update reconfirms the $312 million over three years to the Ministry of Children and Family Development for critical services and supports, including additional front-line staff and youth mental health workers.

We need to start the rebuilding process necessary to strengthen our child protection and support systems and begin responding to the recommendations from Grand Chief Ed John, reducing the number of Indigenous children in care. This government will work in partnership with families, Indigenous communities and other levels of government to ensure that we meet our responsibility to protect and support our most vulnerable children.

While investing in the services that people count on, building a sustainable economy for everyone also means investing in our roads, our schools, our transit, our housing and our hospitals. Our budget includes $14.6 billion in capital spending over three years. These investments add critical infrastructure to our communities and create jobs in every corner of our province.

To benefit from these jobs, it’s vital that we tap into the talent and success of every British Columbian. We’re going to help people thrive by removing the roadblocks towards success. I’m proud that this budget update restores free English-language-learning and adult basic education courses with an immediate $19 million commitment.

When the previous government imposed fees for these programs, enrolment dropped over 30 percent on the post-secondary side alone. That’s a real loss for our province, because if people can go to school, it benefits all of us. As of September 1, all adults are enrolling in approved post-secondary and K-to-12 adult basic education and English-language-learning courses without having to pay tuition. When we give individuals opportunity so that they can advance in their workplace and better support their families, it’s an economic advantage for all of British Columbia.

In that same way, it also makes good economic sense to increase the amount you can earn while on social assistance, as we’re doing in this budget update. Increasing earnings exemptions by $200 a month allows people to work more, build experience, better support their families and find a way towards sustainable employment.

While we’re helping people find their way to the workforce, we’re also helping to keep businesses and industries thriving so that the jobs are out there for individuals. We’re going to start with the innovation commissioner and the emerging economy task force, exciting measures set forth by our colleagues in the Green caucus.

With the commissioner, we’re going to look at how we can best support the success of our technology sector. The innovation commissioner will be both advocate and ambassador for B.C.’s tech sector. The emerging economy task force will be charged with developing made-in-B.C. solutions and will look at how government can encourage innovation and sustainable industries to drive economic growth in B.C. in the 21st century.

As we work to build our sustainable economy, we’re also doing valuable work to make our tax system fairer, where everyone contributes and everyone benefits from the services we all rely on. We’re following through on our commitment to raise the corporate income tax rate by one percentage point to an overall 12 percent, comparable to Manitoba, Saskatchewan and Alberta. And we’re getting rid of the tax break that the previous government gave the top 2 percent of income earners. We believe, again, everyone should contribute because everyone benefits from the services and supports in British Columbia.

[2:50 p.m.]

Supporting a sustainable economy also means recognizing our responsibility to address global climate change. Additional climate action measures will come over the next number of months as we work with our colleagues in the Green caucus and in the official opposition, but we start in this budget update by following through on our commitment to increase the carbon tax by $5 per tonne, starting April 1, 2018.

We’re also ending the requirement for the carbon tax to be revenue-neutral, and we’re going to use carbon tax revenue to support families and to fund green initiatives to address our climate change commitments. Our plan is an important step to get B.C. back on track to meet our targets to cut carbon while investing additional revenue in programs and services that help reduce emissions.

This budget update also takes steps to make businesses more competitive. Starting this fall, we’re moving forward to phase out the provincial sales tax on electricity — a move that businesses across B.C. have long asked for as a way to increase their competitiveness as they invest in new technologies and create more jobs. These savings will support businesses in every corner of the province from forestry to construction, mining to agriculture. Not only is this a competitive move to help B.C.’s businesses; it’s also going to encourage a transition to low-carbon energy sources like electricity, helping to lower B.C.’s carbon footprint.

We’re also supporting much-needed economic growth in small and rural communities in this budget update with the restoration of the tax benefit for credit unions. Credit unions are a key part of communities, helping them thrive, while retaining profits in the hands of their members and allowing these dollars to be reinvested in local economies. That’s why we’re not only restoring this benefit; we are making this benefit permanent for credit unions.

We know that small businesses are a critical part of B.C.’s economy, providing jobs and adding to sustainable, long-term economic growth throughout this province. To further help our small businesses thrive, we’re lowering the small business corporate income tax rate from 2.5 percent to 2 percent.

This budget update takes key steps. We know there are many more pressures in the system that we need to address. In February, we’ll table our government’s full budget, where we’ll continue to address these pressures and build a better B.C. for everyone.

We believe that government should work for people, and a budget should reflect that. This province belongs to all British Columbians, and when it comes to B.C.’s finances, this is the public’s money. You worked hard for it. This is your government, and this is your budget. We want the choices that we make as a government to reflect your voices, your needs and your priorities.

How do we do that? We start by listening. We’re listening to individuals and families who have told us for years that they need more to help make ends meet. We’re listening to people who have struggled to access the services that they need. We’re listening to Indigenous communities and, together, charting a path towards reconciliation. We’re listening to business owners, to communities, to post-secondary institutions, who have said they need more help to ensure our economy is strong, with people who have access to the training and education they need.

We’re going to listen in the upcoming budget consultations, and we’ll keep listening as we move forward. Today, we’re just starting. We’re laying the foundation for a better B.C. In February, we’ll build it even further.

To British Columbians, I want to say this: this is your province; we are your government. Today, I’m pleased to table a budget update that takes a first step towards your budget priorities.

[2:55 p.m.]

S. Bond: Mr. Speaker, I am very pleased to be able to make a few brief remarks today, on behalf of the official opposition, in response to the budget update tabled by the government.

I’d like to begin by congratulating the Minister of Finance and Deputy Premier on her appointment. This is an absolutely critical role, and I know that her experience will be an asset to her as she assumes responsibility for managing the finances of our province. I also have no doubt that the Finance Minister has quickly realized that this is a complex, pressure-filled job that will require a great deal of hard work and discipline to balance the desire to spend with the need to be able to pay for that spending.

Before and during the recent election campaign, outlined in the throne speech on Friday and today captured in the budget, the minister and her colleagues have laid out an aggressive spending plan. The list of planned expenditures is long and, undoubtedly, will continue to grow. In the days and the weeks ahead, the cabinet, the caucus, certainly your vocal coalition party members in the Green Party, British Columbians and, yes, even the opposition will come with more and more funding requests. The list will grow, and the demand will be relentless.

I think that most members of this Legislature would agree that British Columbians sent us a message that they wanted to see additional investment in some priority areas. It is important to consider those, but I don’t for a moment believe that British Columbians endorsed endless spending nor providing a blank cheque to government.

While this budget update contains an ambitious spending plan, what concerns us the most is what is not reflected in the throne speech or this budget update. What is missing is a plan to sustain and grow the economy and create the jobs that British Columbians need and deserve. The budget certainly contains a very aggressive spending plan, but it’s missing one-half of the balance sheet. What’s missing is a plan to generate revenue, attract investment, expand and increase our export markets to Asia and beyond.

In fact, this is a budget that is relying on tax increases amounting to almost $1 billion over three years. This includes the removal of the revenue neutrality requirement from the carbon tax. It also includes business shouldering a heavier tax increase over three years — which, the government claims, will bring us into line with the same tax levels as Manitoba, Saskatchewan and Alberta. Essentially, that means that British Columbia loses a competitive advantage that makes our province more attractive to investors. Most troubling of all: no jobs plan to speak of, other than a passing reference in the throne speech.

There are few measures to support small business — the economic engine that drives the economy — other than the reduction of the small business tax rate of 2.5 percent to 2 percent, which was announced in the previous budget last February.

With the spending commitments that have been made today, it’s important to consider the current state of the economy and the financial state of this province. In June, the former Finance Minister and member for Abbotsford West proactively released an updated budget status that showed strong economic and job growth that would result in a $2.7 billion budget surplus.

[3:00 p.m.]

I certainly don’t recall a positive reaction from the now government members about that news. In fact, they expressed doubt and skepticism. The Leader of the Opposition at that time called it merely “distraction and dangling of issues before the media.” But on August 22, just about three weeks ago, the Auditor General released the audited public accounts and confirmed the accuracy of the budget information, 100 percent.

The Auditor General also noted the strength of our provincial economy. Today this Finance Minister is likely the envy of many jurisdictions in the country. She and her government have inherited the best-performing economy in the country. Indeed, the current Finance Minister confirmed that fact when the public accounts were released on August 22. This government has also inherited five consecutive balanced budgets, a triple-A credit rating — the only province other than Saskatchewan to enjoy this rank — and, more importantly, a solid plan to keep taxes low, attract investment, grow the economy and create jobs.

The audited public accounts also confirmed that the government placed a great priority on education spending, on health care and education. In fact, in budget 27, announced last February, we saw that spending on health care increased by 2.5 percent, education spending by 2.1 percent. We should also note that interest costs decreased by $199 million, or 7.1 percent, over the previous year. That’s because, as a government, we didn’t run deficits over the past five years, and we’ve been paying down the provincial debt at the same time.

Upon the release of the audited public accounts report on August 22, the Minister of Finance had this to say: “The public accounts for 2016-17 show that B.C.’s economy is strong. We’re growing faster than it was forecast, and we certainly have revenues that were higher than projected.” The result is a surplus of $2.7 billion.

The public accounts process is designed to look back, to confirm the province’s fiscal management processes, to ensure that there is an accurate portrayal of the balance sheet. The $2.7 billion surplus that was confirmed has been applied to reduce the debt, as is required. But I should remind the Minister of Finance that there is no guarantee there will be a large surplus next year, particularly in the face of economic uncertainty. Yet this budget makes assumptions that rely on a similar economic performance.

Revenues from corporate tax sources depend on a provincial economy performing in a healthy and supportive investment environment. I’m not sure the private sector heard that in today’s budget update. What we did hear was a plan where increased revenue is based on increased taxes. This includes an increase to the carbon tax, a move that will impact both businesses and consumers. It will no longer be revenue-neutral.

Uncertainty will reduce investment, job growth and, ultimately, tax revenues. So with today’s budget update, I can assure you that the official opposition intends to hold the government to account based on the results that have been confirmed by the Auditor General. The benchmark has been set.

British Columbians have worked too hard to restore our province to its rightful place as the leading economy in this country, only to see that progress jeopardized by a spending plan that is not supported by an economic growth or job creation plan. To date, there is little evidence to suggest that the government has a plan to generate revenue and to grow the economy. In fact, it’s just the opposite.

While promising a balanced budget, there can be no assumptions about a second multi-billion-dollar surplus. With rising interest rates and a potentially softening economy, that is a very unlikely outcome. Add to that the things you can’t predict, the issues that emerge or deliberate policy decisions that will have significant fiscal implications that may be unknown today.

[3:05 p.m.]

There are a few things we know for certain. By cancelling major investments in our province, this government is jeopardizing thousands of jobs, both union and non-union. For example, the cancellation of the George Massey Tunnel replacement project is going to cost 9,000 jobs, and this budget makes it clear that it is a cancellation, not a consultation. By doing so, the government continues to sow the seeds of economic uncertainty, even in its first few weeks in office.

Here’s another example. At Site C, there are 2,600 workers wondering if the government intends to hand them all pink slips and wipe out the potential of 10,000 jobs that will be created during construction.

British Columbia has also been devastated by the worst wildfire season on record. On August 16, the B.C. Wildfire Service declared that B.C. had lost more forest land than a previous record set in 1958, and that was a month ago. Today many of those fires continue to burn, and people continue to be on alert or evacuation order.

Mr. Speaker, I know that everyone in this House wants to take a moment to express our profound gratitude to the hundreds of wildfire personnel, literally from every corner of our province and around the world, who have fought and continue to keep our province and our people safe. I also want to recognize my colleagues in those ridings that have been hardest hit. They have been on the ground every day working to support their constituents and find them the resources they need to survive.

The costs associated with the fires are mounting, and there is more to come. The direct and indirect costs will be significant, creating a financial impact and risk. By saying no to Site C, the NDP and the Green Party are essentially saying no to 10,000 jobs that will be created during construction and 33,000 total jobs through all stages of construction.

Site C is also expected to make a large contribution to the provincial economy. Over the life of the construction, it will contribute $3.2 billion to the provincial GDP, including approximately $130 million in the Peace River regional district alone. Cancelling Site C would also forgo $40 million in tax revenues to local government.

This message of uncertainty is not being sent just to British Columbians but to investors around the world. Add to those examples the transfer of construction costs to taxpayer-supported debt with the removal of tolls on the Port Mann Bridge. That certainly got the attention of Moody’s Investors Service. In fact, they issued an immediate statement and, according to their analysts, said: “The government’s plan…is credit negative, as it will increase taxpayer-supported debt and remove a dedicated line of revenue for debt repayment.”

The analyst goes on to say that: “We assume this action will be taken in addition to other actions to be announced in the upcoming September budget update. Any ratings impact would therefore need to take into account other possible measures that would be announced at that time.”

In other words, when you take into account the loss of income from bridge tolls, credit rating agencies are going to be looking at how the government plans to make up that revenue, either through increased taxes or decreased spending. This budget makes it clear that it’s increased taxes, certainly not decreased spending.

People today may not pay a great deal of attention to a triple-A credit rating — when you have one. They certainly will if we receive a downgrade. The loss of our triple-A credit rating would mean that more dollars would be spent on debt servicing instead of being invested in schools and hospitals or even replacing the Massey Tunnel.

Perhaps, and most interestingly, the most vocal concerns we heard about the transfer to taxpayer-supported debt came from the leader of the Green Party, coalition partner, who said this is “profoundly troubling from a policy perspective,” and that “$4.7 billion will now be moved from self-supporting debt to taxpayer-supported debt.” Apparently the leader of the Green Party and Moody’s are on the same page.

The list goes on: cancelling the Massey Tunnel replacement and, with it, thousands of jobs; taking on legal action to stop the Trans Mountain pipeline. It will also cost this province thousands of highly skilled, good-paying jobs.

One of the notable lines from the throne speech was that the government wants an economy that works for everyone. But that simply can’t happen if British Columbians are not working.

Today we see that the NDP have delivered a plan to spend. What was missing from the Finance Minister’s speech was a plan to grow the economy and create jobs.

[3:10 p.m.]

We had a record surplus in this province because we believed in growing the economy, and that’s what we stand for on this side of the House. We believe that the government should be responsible with taxpayers’ money. After all, it’s not our money. It belongs to taxpayers. That’s why British Columbians worked so hard to help us balance five consecutive budgets and why we were on track to pay off our operating debt in just four years. That is why, since 2004, this province has had seven credit rating upgrades, and we have one today, for now.

We believe that people work hard for their money, and, like the members opposite, that the government has a responsibility to leave more of it in their pockets. That’s why B.C. has the lowest taxes for middle-class earners in the country. That’s why this budget, with its addition of almost $1 billion in taxes, makes us ask some very serious questions about the budget that’s been tabled today.

Finally, we believe in the value of creating jobs that people can depend on. For the last four years, we have worked every day to support, encourage and stimulate job creation in our province. We invested in training, helping people improve their skills and working with employers. We saw almost 200,000 jobs created since the introduction of the B.C. jobs plan. That’s what creates a thriving economy.

The Finance Minister and her colleagues have inherited the strongest economy in Canada, a province that is open to trade and investment, a leading job creator in this country. But today, the budget that the Finance Minister delivered bakes in a massive increase in government spending — $3 billion next year alone — but at the same time, it assumes the economic performance of last year that resulted in a $2.7 billion surplus will be repeated.

That, Mr. Speaker, is a dangerous assumption in an uncertain world. NAFTA, softwood lumber, the impact of fires in central B.C., the cancellation of the George Massey Tunnel, the cancellation of Site C — all of these create areas of uncertainty, plus this budget update relies on a substantial increase in forecasted growth from 2.1 percent to 2.9 percent.

Our job is to remind the government that you can’t spend without a plan that lays out how you are going to pay for it, and that is exactly what British Columbians deserve to know.

I would like to conclude my remarks today. We’ll certainly have more to say in the days ahead.

S. Bond moved adjournment of debate.

Motion approved.

Introduction and
First Reading of Bills

BILL 2 — BUDGET MEASURES
IMPLEMENTATION ACT, 2017

Hon. C. James presented a message from Her Honour the Lieutenant-Governor: a bill intituled Budget Measures Implementation Act, 2017.

Hon. C. James: I move first reading of Bill 2, Budget Measures Implementation Act, 2017.

Motion approved.

Hon. C. James: Bill 2 consists of two parts. Part 1 includes a number of provisions that will enable government’s Budget 2017 Update, and part 2 of the bill amends eight statutes in order to implement the many tax measures in Budget 2017 Update.

In part 1, the North Island–Coast Development Initiative Trust Act is amended to increase the total amount that may be paid by the government to the North Island–Coast Development Initiative Trust by $10 million.

The Transportation Investment Act is amended to authorize the transfer of ownership of the Transportation Investment Corporation from government to the B.C. Transportation Financing Authority.

[3:15 p.m.]

Part 1 of this bill also includes two transitional provisions. The first clarifies that certain references to the estimates and other documents for the ’17-18 fiscal year are those tabled today. The second provides appropriation for the Transportation Investment Corporation share transfer, if required, and for the continuation of existing agreements.

In part 2 of the bill, the Carbon Tax Act is amended to increase the carbon tax rates annually by $5 per tonne of carbon dioxide–equivalent emissions, commencing April 1, 2018. Part 2 of the Carbon Tax Act is repealed, removing the requirement to prepare an annual carbon tax report and plan.

The Income Tax Act is amended to increase the income tax rate on income over $150,000 to 16.8 percent from 14.7 percent. The amendments to the Income Tax Act also reduce the small business corporate income tax rate to 2 percent from 2.5 percent and increase the general corporate income tax rate to 12 percent from 11 percent. The dividend tax credit rates are adjusted accordingly.

The amendments to the Income Tax Act also introduce a volunteer firefighter and search and rescue volunteer tax credit. The amendments provide a back-to-school tax credit for the 2016 year only. The children’s fitness equipment and arts tax credits are eliminated for 2018 and subsequent years. The amendments to the Income Tax Act also restore the tax benefit for credit unions.

The Income Tax Act is also amended to extend or clarify several tax credits. The scientific research and experimental development tax credit is extended for five years. Book publishing tax credit is extended for one year. The training tax credits are extended for one year. The mining flow-through share tax credit is extended for one year. The mining exploration tax credit is expanded to include costs incurred for environmental studies and community consultations. And clarifications are made regarding eligibility for the interactive digital media tax.

The Income Tax Act is also amended to provide administrators with access to B.C.’s assessment information and to facilitate information-sharing for the purpose of administering the homeowner grant. The homeowner grant is amended to facilitate information-sharing for the purpose of administering the Income Tax Act.

The International Business Activity Act is amended to eliminate the program, effective September 12.

The Property Transfer Act is amended to increase the first-time-homebuyers threshold to $500,000.

The Provincial Sales Tax Act is amended to phase out the tax on electricity. The tax will be reduced to 3.5 percent, effective on a date to be set in regulation. Electricity will be fully exempt on April 1, 2019.

The Motor Fuel Tax Act is amended to exempt natural gas from the motor fuel tax on locomotive fuel.

And, finally, the Tobacco Tax Act is amended, effective on a date to be set by regulation, to increase the tax rate on cigarettes to $49.40 from the $47.80 per carton of 200 cigarettes and to increase the tax rate on loose tobacco to 24.7 cents from 23.9 cents per gram.

Hon. Speaker, thank you for your patience. I move that Bill 2 be placed on the orders of the day for second reading at the next sitting of the House after today.

Bill 2, Budget Measures Implementation Act, 2017, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.

Tabling Documents

Hon. C. James: I have the pleasure to rise to table government’s overall strategic plan and the Budget and Fiscal Plan 2017-18–2019-20, which together fulfil the requirements of sections 7 and 12 of the Budget Transparency and Accountability Act. The budget and fiscal plan also contains the carbon tax plan required under section 3 of the Carbon Tax Act and other documents required under section 4 of that same act.

I also table, on behalf of the ministers responsible, their service plans, as required under section 13 of the Budget Transparency and Accountability Act. The service plan documents are presented in two binders. The first binder contains service plans for the Office of the Premier and 20 ministries. The second binder contains service plans for the 26 service delivery agencies and Crown corporations. The second binder also provides a listing of organizations that are exempted from the Budget Transparency and Accountability Act service plan requirements under section 13 and identifies three organizations newly exempt, along with the explanations for their addition to the list.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

Mr. Speaker: This House stands adjourned until 10 a.m. tomorrow.

The House adjourned at 3:19 p.m.