Orders of the Day

[1:35 p.m.]

Hon. C. James: I move that this House, at its next sitting, resolve itself for this session into a committee to consider 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, 2019, and a supplement to the estimates for the fiscal year ending March 31, 2019, 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.

Budget Debate

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.]

I want to begin by welcoming everyone here in the gallery today. We’ve been joined in the capital by parents with young children, renters, homeowners, advocates and business owners, First Nations and Métis leaders, mayors and councillors, former and current MLAs, and many more people who are watching from home or work. Thank you, all of you, for joining us for Budget 2018, a budget that works for you.

Seven months ago we were sworn in as a new government. It was clear in the election, as it is now, that British Columbians want a better B.C. We live in a province that is rich in people, resources, natural beauty and opportunities. Yet these opportunities have become further and further out of reach for so many. Families are working hard and can’t get ahead. Young people starting out can’t afford housing. Seniors can’t get the services they rely on.

It’s time for a different approach. It’s time everyone in our province is part of our prosperity. We took the first steps in the Budget 2017 Update to carve that path to shared prosperity in this province, and now Budget ’18 continues down that path to a strong, sustainable British Columbia that puts people first.

Our first full budget is based on choices that work for the people of this province because your government should be working each and every day to make life affordable, to improve the services you count on and to build a strong, sustainable economy that supports jobs in every corner of the province.

Your government is also looking ahead because this budget is not only about what will happen this year or over a three-year fiscal plan. The choices we make today will chart a path to what we want our province to look like in ten, 20 and even 50 years.

A budget is about more than revenue and expenses. It’s about people. It’s about the entrepreneur building up their tech start-up. It’s about the senior volunteering time to help their community, the single parent who wants to return to work, the construction worker building our province, the college student deciding what career path to pursue, and the young family putting down roots. It’s about the kind of community we want to live in. It’s about the kind of future that we all want. It’s about a progressive province we can be proud of. It’s about a better B.C. for each and every person in this province.

Budget 2018 recognizes that an economy that works for everyone starts with a budget that works for everyone. After all, it’s British Columbians who drive our economy. That’s why people are at the centre of the choices that we’re making in Budget 2018. Those choices started when we were sworn in as a new government.

In September’s Budget 2017 Update, we took several important steps to meet some of the province’s most urgent needs. We’ve helped make life more affordable by increasing the minimum wage and setting the path to $15 an hour, increasing income and disability assistance rates, investing in 1,700 new affordable rental units, taking action to address poverty by developing the first steps towards B.C.’s first poverty reduction strategy and eliminating tolls on the Port Mann and Golden Ears crossings.

[1:40 p.m.]

We improved services by investing in education to give children the support they need to thrive, by providing 2,000 modular supportive housing units for people who are homeless, by taking immediate steps to fight the overdose crisis by creating a ministry for mental health and addictions and funding new treatment and support programs that save lives.

We removed tuition for former youth in care, and we ended fees for English language learning and adult basic education in both the K-to-12 and post-secondary sectors, to give people opportunities to grow and succeed.

Now Budget 2018 looks ahead. It builds on our progress. It makes choices based on the people’s priorities, and it delivers on our commitments to you as British Columbians.

I want to acknowledge that we’re on the traditional territory of the Songhees and Esquimalt Nations. I’m honoured to be part of a government that is committed to learning from and working with Indigenous peoples as we build a path towards reconciliation.

That means a commitment to fully adopting and implementing the UN declaration on the rights of Indigenous peoples and the calls to action of the Truth and Reconciliation Commission. The Premier has given every minister the responsibility for adopting and implementing the declaration and the calls to action. Addressing reconciliation is our shared responsibility, and you’ll see support for Indigenous peoples throughout this budget.

Budget 2018 invests in housing, child care and skills training, with more than $200 million dedicated to Indigenous priorities over the fiscal plan in that range of areas. That includes funding to expand culturally based Indigenous child care. It includes 1,750 new units of supportive housing for Indigenous people, which will be developed in partnership with Indigenous housing societies and First Nations. It invests in Indigenous skills-training development funding for training and solidifying partnerships between industry and the provincial, federal and First Nations governments.

Aboriginal friendship centres are also receiving additional funding in this budget. Friendship centres do incredible outreach work and serve all Indigenous peoples, whether they are status, non-status, Métis or Inuit. They provide health, social and dedicated youth programs, while fostering a deep sense of community for those they serve. By investing in Aboriginal friendship centres, we are investing in the kinds of relationships that our government wants to cultivate with First Nations.

Now, we know there’s a strong link between linguistic and cultural identity and social, mental and physical well-being. Revitalization of First Nations languages is a critical part of that link. Language is fundamental to who we are, where we come from, how we relate to others and what lives on long after we’re gone. The teaching of language also strengthens the cultural and social health of a community. It encourages children to grow into a future that flows from their rich heritage. It connects the next generation with those of the past.

Both the Truth and Reconciliation Commission’s calls to action and the UN declaration on the rights of Indigenous peoples emphasize the need to preserve and revitalize Indigenous languages. British Columbia is home to 60 percent of First Nations languages in Canada, with more than 30 unique languages and 61 dialects. But our First Nations languages are in a state of crisis. Eight languages are severely endangered; 22 are nearly extinct. That’s why I’m proud today that we’re committing $50 million in this fiscal year to support the preservation and revitalization of Indigenous languages in our province. This funding will flow immediately, because there is no time to lose.

I’d now like to talk about the choices we’re making in Budget 2018 that help make life more affordable for people in our province. These choices start with building a quality child care system that is affordable and accessible. I’ve heard from parents here in Victoria and across the province that they’re anxious about child care. Often this anxiety starts before the baby is even born.

Parents want quality child care that is safe and that gives them peace of mind while they’re at work. For those parents lucky enough to find a spot, they struggle to afford high child care fees, and businesses also feel the effect of unaffordable child care. They’ve told us that economic growth is hampered. When a parent can’t find child care, it means they often lose a worker.

[1:45 p.m.]

Parents delayed from entering or returning to the workforce impact our economy’s productivity. The B.C. Business Council, the B.C. Federation of Labour, chambers of commerce, Vancouver Board of Trade and municipalities across B.C. have urged the province to improve access to affordable child care. This would expand the pool of workers available to employers and also create jobs and provide a lift to B.C.’s economy. We need to heed the ever-expanding body of research showing us that public spending on child care is a wise social and economic investment.

That’s why I’m so proud that Budget 2018 marks the beginning of a made-in-B.C. universal child care program. It will take time to deliver, and that’s why we’re starting right away. Budget 2018 offers the largest investment in child care in B.C.’s history, with a $1 billion child care investment over three years — to lower the cost for parents, increase the number of child care spaces and make sure those spaces meet quality child care standards.

Our child care plan starts with two key investments to reduce child care costs for tens of thousands of families across this province. Starting April 1, the child care fee reduction program will provide funding directly to licensed child care providers. It will provide up to $350 a month for a child care space. These fee reductions will benefit an estimated 50,000 families per year by 2021.

We’re also introducing a new affordable child care benefit, starting in September 2018. It will provide up to $1,250 per month per child. It will lower costs for 86,000 families per year by 2021. The highest level of benefits will apply to infant and toddler care, because that’s often the least affordable and the most difficult to find. Families who are earning less than $45,000 will pay little or nothing for their child care.

Now, families have also told us that even if they could afford child care, there aren’t enough spaces in their community. For a child care plan to work, there must be more spaces. That’s why we’re creating 22,000 new licensed child care spaces across this province.

We’re also increasing grant funding to encourage the building and maintenance of spaces where they’re needed the most in B.C. We’ll work with other ministries, municipalities, school districts and not-for-profit operators to accelerate the creation of new spaces. That work will also include looking for opportunities to include child care facilities in new schools and affordable housing.

We’ll offer incentives for licensed service providers to offer child care outside of standard business hours. This is going to help parents who work shifts or weekends or are going to school in the evening. Because family-based care is a choice made by many parents, we’re also supporting unlicensed family care providers to become licensed.

Experts, like the Coalition of Child Care Advocates of B.C. and the Early Childhood Educators of B.C., have been clear. The quality of our child care system depends on early childhood educators. We agree. Our plan to build more child care spaces will mean a higher demand for these professionals, and we need to do more to support this important field.

We’ll work with our partners to develop a comprehensive workforce development strategy. It’ll look at innovative approaches to training, education and fair compensation. We’re getting started in this budget by growing the early childhood educator programs in our colleges and universities and investing $16 million in federal funding for bursaries and grants that will support certification and professional development opportunities. Taken together, it will boost the supply of early childhood educators to meet growing demand and rising quality standards.

Our made-in-B.C. plan sets us on the path for universal child care. It represents real, transformational change in our society. Our plan will be affordable for families and the province. It will be accessible for parents so that they can get back to work. It will give parents, grandparents and caregivers peace of mind by meeting rigorous quality and safety standards.

[1:50 p.m.]

Now, we know that our vision for universal child care requires a shift that’s going to take time. It will take an openness to learn, a commitment to work together and a strong sense of community. I think it’s no coincidence that these values are at the core of quality child care. I’m incredibly proud to be part of a government that is taking this bold step toward universal child care in British Columbia.

I want to talk about another challenge our government is tackling in this budget: housing. Housing affordability affects us all. The problem has been ignored for too long, and the consequences are being felt throughout B.C., with housing costs skyrocketing. The result is that renters have seen vacancy rates drop while prices rise dramatically.

Students going to college and university have had a hard time accessing affordable housing. Young professionals are faced with moving out of their communities or the province. First-time homebuyers have been sidelined as housing prices soar out of their reach. Seniors struggling to meet rising housing costs on fixed incomes are at risk of homelessness. Parents have told me that they worry their children won’t have a safe, secure place to live, let alone be able to afford a house.

People have clearly been hurt by the housing crisis, and B.C. businesses and our economy are feeling the effects as well. Three out of five Vancouver Board of Trade members cite housing unaffordability as a barrier to recruit and keep employees. Nurses, construction workers, teachers, engineers and city workers are building careers, growing families and contributing to our province. They should be able to put down roots.

People want their government to take action, but a piecemeal, reactive approach won’t work. The problem is too complex. The need is too great. That’s why we’re setting out a comprehensive housing plan that commits to long-term solutions in Budget 2018.

It starts with taking action to stabilize the market and curb demand. B.C.’s real estate market should not be used as a stock market. It should be used to provide safe and secure homes for families, for renters, for students and for seniors. That’s why we’re going to crack down on speculators who distort our market.

We will introduce a new annual speculation tax, starting in B.C.’s urban areas. It’s going to tax foreign and domestic speculators. This tax will apply to property owners who don’t pay income tax here, including those who leave their units vacant. This will penalize people who’ve been parking their capital in our housing market simply to speculate, driving up prices and removing rental stock.

To curb demand, we’re also increasing the additional property transfer tax rate, which is known as the foreign buyers tax, to 20 percent. We think that foreign buyers should contribute more for the quality of life that they enjoy when they are in our province.

Currently this tax only applies to Metro Vancouver, so we’re extending it to Fraser Valley, Nanaimo, the capital and Central Okanagan regional districts. Increasing the tax may deter those who are speculating in B.C.’s housing market, and it will definitely penalize those who do. Extending it to other communities ensures that we simply don’t push the speculation into neighbouring markets.

Our goal is fairness for the people that live, work and pay taxes here, and we’re taking steps to ensure that in Budget 2018. Countering tax fraud starts with better information-sharing, so we’re changing tax laws to help us ensure the accuracy of the information people provide on the property transfer tax and income tax forms. This will help us detect tax fraud and ensure that taxes are being paid.

Another way to curb demand is to close real estate loopholes that allow some people to skirt our tax laws. We’ve all heard stories of a condo unit being sold multiple times before the unit is even lived in. We wonder if those people have paid their fair share of taxes. This is unfair to people who are trying to buy into the condo market.

We’re changing legislation to require developers to collect and report comprehensive information about these presales assignments. This will allow us to strengthen our audit and enforcement system in partnership with the federal government.

Another loophole that’s being used is hidden ownership. Numbered companies, offshore and domestic trusts and stand-in owners hide the true source of capital that’s flowing into our real estate market. A lack of transparency in our land registry means true ownership is not clear. We’re going to change that.

[1:55 p.m.]

First, we’re going to require additional information on beneficial ownership on the property transfer tax form. Second, we’re going to establish a registry of beneficial ownership in B.C. that will be publicly available and shared with law enforcement and tax auditors. And third, we’re going to introduce requirements for corporations to hold accurate and up-to-date information on beneficial owners. These changes will return a sense of fairness to the real estate market for the people of B.C., because the tax system should work for all British Columbians, not just those at the top.

We know that soaring house prices have benefited many people. We think it’s fair to ask those who have benefited from those high prices to give a bit more back. That’s why we’re increasing taxes on B.C.’s most expensive properties, on the value over $3 million. Our intent is to bring stability to housing prices with these changes and have revenues to invest in building affordable housing. We recognize that these are bold actions, but that’s what B.C.’s housing crisis demands.

I’ve talked about demand. That’s one half of the affordability equation. Supply is the other half. There’s a drastic shortage of affordable housing in this province. Families are squeezed. Students are struggling. Seniors are falling through the cracks. We came into government with a vision to fix this, and we’re taking action.

We’re going to build the homes that people need. These homes will be a mix of housing for students, people with disabilities, seniors, families and will range from supported social housing to market rental housing. We’re also going to make significant investments to preserve and protect our existing social housing for the people already living in them.

Our commitments will total more than $7 billion over the next ten years. This will be the single largest investment in housing in the history of our province. It will build almost 34,000 units across our province, including mixed-income social housing, new beds for students at colleges and universities and units dedicated for people who are homeless.

We know housing affordability can hit renters the hardest, and many of our most vulnerable citizens are at risk. That’s why our budget boosts two rental assistance programs: our rental assistance program, known as RAP, and the shelter aid for elderly renters, known as SAFER.

We’re going to increase the benefits of RAP so that low-income families will see their average payment increase by $800 per year, and we’re going to expand the eligibility of the program to help 3,200 new households with their rent. Seniors who receive SAFER will see their average payments increase by more than $930 a year. That means we can help over 35,000 households make their rent more affordable. These are important investments, and they’re the right steps in the right direction for B.C.’s rental supply.

Now, it’s clear that the province can’t fix the housing crisis alone. We’re charting a path to build 114,000 affordable housing units, but this can only be done by building partnerships. It will require a focused effort on our part that will be spearheaded by a new housing hub office at B.C. Housing.

This office will bring everyone together to facilitate the building of affordable homes. It will develop partnerships to find, use or redevelop available land in communities that are hardest hit by the housing crisis. This new housing hub underlines the importance of partnerships and the coordinated effort it will take to address housing affordability.

We’re also empowering our partners to make changes in their communities. On-line accommodation providers will pay their fair share of taxes with upcoming legislative changes to the PST and the municipal and regional district tax, also known as the hotel room tax.

We know that affordable housing is a real challenge in communities, particularly those that rely on the tourism sector. That’s why we’re going a step further today to change the rules around the hotel tax. We’re giving local governments the flexibility to use their hotel room tax revenue to build housing in their communities to support the workers in the tourism industry. This will give people that work in tourism in their communities a place to live. We’re also giving the power to strata corporations to levy higher fines for short-term rentals if they choose to do so.

Each community faces its own unique housing challenges. Each community will now have more power and resources to address these challenges locally.

[2:00 p.m.]

The scale and complexity of the housing affordability challenges mean change isn’t going to happen overnight. We’ll need to join with mayors, businesses and community leaders to speed up approvals and to find ways to build more housing faster, and we’ll need to develop funding partnerships across the board, with First Nations, with federal governments.

We’re taking action to give British Columbians greater choice in finding housing where they work and where they go to school because we want diverse, inclusive neighbourhoods. We want communities with safe, affordable housing. We want housing that works for people.

Now, I have spoken about the changes to make the tax system more fair to help housing affordability. People in British Columbia want a tax system that is fair. They want everyone to pay their fair share of taxes, and they don’t want hidden fees and costs. I have a clear mandate from the Premier to bring more fairness into our tax system.

Since being sworn in as Finance Minister, we have, as part of our Budget 2017 Update, cut medical service premiums by 50 percent, reversed the tax break given to the top 2 percent of income earners, phased out the PST on electricity by 50 percent to help businesses and lowered the tax rate on small businesses.

But there’s more to do. B.C. is an outlier in Canada and the only province that levies unfair, regressive MSP premiums that penalize families and businesses. Whether a person earns $60,000 or earns $200,000 a year, they pay the same amount. MSP fees have more than doubled over the last 16 years. MSP premiums also impact businesses. They’re complex. They’re expensive to administer.

As part of this fiscal plan, I’m proud to announce that we are eliminating all MSP premiums effective January 1, 2020. That means families will save up to $1,800 a year, and individuals will save up to $900 a year. This will be a huge savings for people, and it will help make our tax system more fair and more progressive.

Now, it goes without saying that eliminating the MSP also eliminates a large portion of government revenue. We’re making sure we can continue to deliver the services that people count on and maintain fiscal responsibility. That’s why we will replace the MSP revenue with an employer health tax similar to other provinces.

Small businesses with payrolls less than $500,000 will not pay any payroll tax. Businesses with payrolls between $500,000 and $1.5 million will pay a lower rate. And businesses with payrolls over $1.5 million will pay the full rate. The revenues raised will be invested in people and the services they count on, health care being front and centre.

The continued success of our province includes strong, sustainable economic growth, and the key to sustaining that growth is people. Budget 2018 focuses on two most important economic issues: child care and housing. It makes a number of investments in sectors that help create jobs and support our strong, diverse economy, like transportation and agriculture. It also includes enhanced services that seniors, young people and Indigenous communities all count on, like health care, education, the arts and justice.

Health care receives the largest portion of our budget year after year — and rightly so. Without your health, not much else matters. Investing in our hospitals is investing in the people we care about. Hospitals are where we welcome babies into this world and where our loved ones undergo complicated surgeries or receive palliative care.

We’re building, upgrading, expanding and redeveloping hospitals across B.C., from New Westminster to Terrace. We’re investing $3.1 billion in capital spending in the health sector over the next three years to ensure that health care professionals have modern facilities to provide the services that British Columbians need.

B.C.’s health care system is the envy of places across the world. To sustain and further improve our health care system, we’re increasing the Ministry of Health’s operating budget with more than $1.5 billion in new funding over the next three years.

[2:05 p.m.]

This increase includes $105 million to expand PharmaCare coverage for 240,000 families in our province. Drug prices have risen, and many British Columbians can’t afford to take their medications as prescribed. People are actually making choices between paying for prescription drugs and putting food on the table. We know we can do better, and that’s why the changes to PharmaCare eliminate deductibles and family maximums for low-income families. This will help people get the prescription medications that they need but are struggling to afford.

We also recognize that too many British Columbians do not have a family doctor. That’s why $150 million over the next three years will connect them to team-based primary care with other medical professionals, including nurses, mental health practitioners and midwives.

Investing in our children means investing in our future. Our children deserve the best education from dedicated teachers and teaching assistants throughout this province. They’re the professionals who help shape the minds of tomorrow. They get kids excited about science, athletics, literacy. They teach them how to be good global citizens. That’s why we are hiring more teachers in this budget, to bring our total to over 3,700 new hires across this province since September. This will go a long way to providing needed support for students and will address the increased need for qualified teachers in our schools.

Because both teachers and young children need safe, accessible classrooms to live in, we’re dedicating $2 billion over the fiscal plan to maintain, replace, renovate or expand schools across B.C., from Surrey to Prince George. This funding is going to bring more schools up to seismic codes, improve playgrounds and create more learning spaces for our young minds to explore.

To support vibrant communities for our young people to thrive in, we are adding $15 million over three years to help the B.C. Arts Council to support artists and cultural organizations in communities across B.C. This is in addition to the $24 million that’s already allocated in the council’s annual budget. An additional $3 million will be invested in Creative B.C., an organization that helps grow and develop B.C.’s creative economy through film, digital media, music and publishing.

The people who need our support the most have been overlooked in this province for far too long. The transportation needs of many of our most vulnerable citizens have been ignored, dismissed or, worse, clawed back. I’m proud to say that we reversed that poor decision to claw back bus passes for people receiving disability assistance, and $214 million over three years is an investment our government is not only willing but we are proud to make. It means more than 100,000 people with disabilities can travel more freely in their communities and connect with the services that they depend on.

Seniors are another group who’ve seen services cut back. We’re investing $548 million over three years to hire qualified support staff and improve the quality of residential seniors care. Seniors are living longer, fuller lives than ever before. They contribute to our province, and they deserve to live their lives with dignity and respect. These investments will give seniors better care and help them stay in their home longer.

Our most vulnerable youth have been ignored for far too long as well. Grand Chief Ed John’s report on Indigenous child welfare highlighted that Indigenous children and youth are 15 times more likely to be taken into government care than non-Indigenous children. As a government, we’re doing everything we can to implement that report and support Indigenous communities to keep Indigenous children at home with their families. But those who are or have been in care also deserve our help. After all, government is their guardian. We have a responsibility to help a child grow and embark on their life as an adult.

[2:10 p.m.]

Youth who are aging out of foster care have higher rates of drug dependency, homelessness, school dropout rates and income assistance reliance. It’s not the fault of the youth. It’s the fault of a failed system.

Last September we announced a significant expansion to the tuition waiver program, for young people who are formally in care to attend post-secondary schooling or training. Last year, 189 students went to college, university or training facilities through this program. Since last September’s investment and expansion of the program, 229 young adults received tuition waivers in just four months.

Now, in Budget 2018, we’re building on this work. We’re adding $30 million over the fiscal plan to enhance the agreements with young adults program. These changes will increase monthly financial supports for more than 800 former youth in care. We’ve seen what these young people can do when they have the support and guidance as other young adults when they leave home. This funding will ensure more young people do not feel alone and have help with rent, groceries and career advice to help them on their path to adulthood.

People deserve to live in safe communities, and everyone has the right to live without fear or violence. For too long, support for women who are survivors of violence has been lacking. These women, and often their children, need help to escape the vicious cycle of abuse. In the fall, we invested $5 million to help expand vital services such as counselling, outreach and crisis support. In this budget, we are again standing with survivors of violence with a commitment to ongoing funding of $18 million over three years to increase supports for them.

Our housing plan also earmarks $141 million to start building 1,500 housing units for women and children fleeing abusive relationships. This will increase services available to victims, including counselling, a safe place to live and relocation support.

Now, safety goes hand in hand with access to affordable quality legal services. Over the years, cuts to legal aid and reductions in family law services have left people without legal representation and torn families apart. That’s why we’re expanding legal aid, including Indigenous and family law services, with a $26 million investment over the fiscal plan. We’re also investing $10 million over three years to fund a new family dispute resolution service and increase digital access to justice services, to better reach families and people all across the province.

Continued economic growth in this province is dependent on the diversity of investments we make to sectors that British Columbians rely on, like our transportation and agriculture sectors.

The people who rely on our coastal ferry system are also at a disadvantage. B.C. Ferries is part of our highway system. It should work for the people who use it. Ferry costs have skyrocketed, putting islanders at a disadvantage that is both costly and unfair. Transportation and businesses are feeling the pinch too. Budget 2018 helps B.C. Ferries and other important transportation links work for British Columbians. We are freezing fares on all three major B.C. ferry routes, rolling back fares on non-major routes by 15 percent and fully restoring the Monday to Thursday, passenger discount rate for seniors.

Government knows that the Pattullo Bridge is an important link between Surrey and greater Vancouver, but it must be replaced. We prioritized that in this budget. We’ve announced funding over three years to fund the initial stages of that project and to get going with the replacement, because replacing the bridge will improve safety for commuters, get people home to their families faster and facilitate the transportation of goods.

To help bolster our international exports, we’re investing in programs to help get our goods to global markets. We have so much to offer the rest of Canada and the world in terms of our high-quality fruit, vegetable, seafood, wine, craft beer, agrifood. With Budget 2018, we’re investing $29 million over three years in B.C.’s agriculture, food and seafood sectors through Grow B.C., Buy B.C. and Feed B.C. programs.

[2:15 p.m.]

Support for farmers, better local marketing efforts and groundwater protections that come from this investment will support our vital agricultural land reserve and improve B.C.’s brand recognition for the food we sell in Canada and internationally.

We live in a province that is geographically blessed. We’re incredibly lucky to have our mountains, our rivers, our oceans and our lakes. Keeping our B.C. parks as destinations for locals as well as tourists requires resources and trained staff. That’s why we’re adding $5 million, over three years, to B.C. Parks budget to ensure that 1,900 new campsites will meet the standards that British Columbians and nature lovers from around the world expect.

We’re also allocating $9 million to hire 20 conservation officers and enhance programs that reduce human-wildlife conflict through education, innovation and cooperation. And $14 million, over three years, will help develop and implement a revitalized B.C. wildlife management initiative to better protect wildlife through conservation, biodiversity and habitat protection.

In partnership with B.C.’s Green Party caucus, your government has recommitted B.C. to a cleaner, greener future by reducing greenhouse gas emissions, increasing B.C.’s carbon tax rate, growing our clean economy by investing in green initiatives and supporting B.C.’s transition to a low-carbon economy. Starting April 1, 2018, we will increase the carbon tax rate by $5 per tonne, reaching $50 per tonne in April 2021.

To help families that need it, we are increasing the climate action tax credit by an additional $40 million. Additional relief will also be provided in future years as the carbon tax increases.

We know that B.C.’s industries are vital to our provincial economy. We want them to prosper, to be competitive, to help us reach our emission targets. To achieve this, B.C. is creating a new clean growth incentive program that will reward industry for changing the way they do business to better align with the world’s cleanest performers.

Over the coming months, the Minister of Environment and Climate Change Strategy will consult with businesses, First Nations and experts and the public on the details of this program. By being open to innovation and bringing industry on board, we will build a stronger economy by being a leader on climate action.

We must act now. The effects of climate change are already at our doorstep. Wildfires are unpredictable, but we know they’re going to worsen with climate change. We need to do more in communities to support our province’s response to wildfires. That’s why Budget 2018 invests an additional $72 million, over three years, to help communities better prepare for and respond to wildfires and to provide further wildfire recovery support.

Through record levels of investment, we’re responding to the most urgent need throughout B.C. for the benefit of all British Columbians. These investments will result in real changes at the community level and support strong, sustainable growth that British Columbians can benefit from for generations to come.

Our government is focused on building a strong economy in every corner of our province, where people are rewarded for hard work with good wages, job security, a safe place to build their career. You’ve heard that a lack of affordable, quality child care for parents is hampering businesses’ ability to retain a reliable workforce. A lack of affordable housing is a real barrier to business growth. That’s why we’re taking action on both fronts: to help businesses create more jobs and improve their ability to recruit and retain workers.

Budget ’18 also invests $26 billion, over three years, in capital spending on schools, hospitals, roads, bridges and other infrastructure — the highest level in B.C.’s history. This investment will create well-paying, long-term work for British Columbians in a variety of sectors across our province. These large numbers mean a lot to people, who are going to see that investment returned to them by way of improved roads, new hospitals and expanded schools, as well as the 50,000 direct and indirect jobs created in every corner of B.C. during the construction of $9 billion worth of major taxpayer-supported capital projects going on in communities.

[2:20 p.m.]

B.C.’s economy continues to generate full-time employment, with 4,100 new full-time jobs created just last month. We continue to have the lowest unemployment rate in Canada.

We’re building on these successes by supporting job creators throughout the province. We’ve already seen companies add jobs in the high-tech, transportation and resource sectors in Vancouver, Prince Rupert, Prince George and across our province. The recent appointment of Alan Winter as B.C.’s innovation commissioner will help us create new opportunities for B.C. tech companies. These companies signal a strong international endorsement of B.C.’s economy and talent pool, and along with B.C.’s small businesses, they can help to create jobs that families can depend on.

In fact, small businesses across B.C. accounted for about 45 percent of job creation in our province recently. We know we need to support the success of small businesses. That’s why we immediately cut the small business tax rate from 2.5 percent to 2 percent and why we’re establishing the small business task force, to help us better understand their needs so we can create the best policies for them to thrive.

On January 1 of this year, B.C. businesses saw savings with a 50 percent cut to PST on non-residential electricity, and we’re completely eliminating the PST on non-residential electricity on April 1, 2019. This translates into savings of more than $150 million annually for B.C.’s businesses. This will help them create jobs and a more sustainable economy for our province. It’ll help businesses expand into new markets and reinvest in the technology of tomorrow.

Budget 2018 is balanced. We’ve had to face some tough choices to build a balanced budget. We inherited financial burdens that should have been acted on earlier. The years of poor choices and neglect at ICBC mean they’re forecasting an over $1.3 billion loss this fiscal year. These losses have put real pressure on our fiscal plan, now and for future years.

Last year we also faced an unprecedented wildfire season. We were proud to support the communities and businesses that were facing the wildfire threat. The end result was significant, with wildfire costs now reaching more than $870 million in ’17-18. With these pressures, it’s more important than ever to focus on those we are here to serve: the people of this province.

What’s different about this budget, and indeed this government, is that we understand the concept of balance. Previous budgets have emphasized fiscal balance, but they didn’t balance this fiscal prudence with British Columbians’ priorities. We are economic leaders in Canada, but we can’t consider ourselves leaders if we’re not sharing the prosperity of our province with the British Columbians who helped build it. This budget is balanced in its approach, and it’s balanced fiscally.

B.C. continues to outperform economic expectations. We’re the only province rated triple-A by each of the international credit-rating agencies, and in January, 2.4 million people had jobs, a near-record level for British Columbia. We continue to have the lowest unemployment rate across Canada, and private sector forecasters expect B.C. once again to rank near the top of provincial rankings in economic growth in 2018 and 2019.

This is good news for British Columbians and our future. These positive economic indicators translate into good jobs and growth opportunities in communities. They go hand in hand with key investments in people and services that will help drive future economic growth.

We’re committed to building on this growth as we deliver on our commitments to British Columbians. However, we must be aware of the risks when it comes to our bottom line.

We continue to be careful managers of the public’s tax dollars. That’s why this budget keeps a comfortable forecast allowance of $350 million and why we’ve set aside $550 million in contingencies for the next fiscal year. This leaves us with a total projected surplus of $219 million, as well as surpluses in the following two years.

[2:25 p.m.]

Our debt remains affordable. Our debt-to-GDP ratio is expected to remain below 16 percent over the fiscal plan period, and our debt-to-revenue ratio has improved since September’s Budget 2017 Update and is forecast to stay below 90 percent. These numbers mean that we can look ahead and feel confident in the stable, steady economic growth of our province.

Make no mistake. B.C. is a wealthy province, rich in resources, rich in community and talent, rich in the diversity of our people. But we’ve become divided by choices that did not put people first. Ultimately, we all want the same thing: to live in a safe, vibrant community; to take pride in the work we do; to help our friends, families, neighbours; and to be provided with opportunities to succeed.

Budget 2018 lifts people up. It makes a historic investment to take care of our children. It takes bold steps to tackle the housing crisis. It invests in record levels of infrastructure to support jobs and spur economic growth in every corner of our province.

A budget needs to positively impact your life. The investments we make today have been carefully considered with one thing in mind: what actions can we take today to build a better future for all British Columbians? That starts with putting people at the centre of the choices we make every day. We have charted a more affordable, balanced and hopeful vision for B.C. with Budget 2018.

To the people of British Columbia, I want to say this. Budget 2018 is a budget that works for you because this is your province, we are your government, and we are working for you.

S. Bond: It’s my privilege to deliver some brief remarks and initial response to Budget 2018 on behalf of the official opposition and my co–Finance critic.

I’d like to begin by congratulating the Finance Minister on her first full budget being tabled today. It is a significant undertaking. It takes a great deal of effort and a lot of support by British Columbia’s incredible public service. We’ve had some experience with that process, and I certainly thank them for all of their efforts.

If there is one document that clearly helps to define a government, it is the provincial budget. It provides an outline of government priorities. It details the government’s spending plans. Essentially, the provincial budget is an accountability document. It is a report card that voters can look at and see if a government is, in fact, delivering on its campaign promises. For that reason, it’s equally important to account for what has been left out of a budget.

Voter expectations are very high in British Columbia. People expect this government to deliver on what it said it would do during the election campaign. In our initial analysis of the budget, we see a very significant spending plan. Much of this is what all of us heard British Columbians talk about during the last election.

[2:30 p.m.]

Yet we see spending that far outweighs revenue generation in this province. In fact, spending growth is projected to be almost double the anticipated revenue growth. In addition, this budget projects that the government is expecting revenues from B.C.’s resource economy, the backbone of our economy, to decline across a number of sectors. So Budget 2018 outlines significant spending even while projecting revenue from our major economic sectors is declining.

While there are certainly investments in child care and housing — important initiatives, which British Columbians certainly talked about during the last election — there is little evidence of any attention being paid to the revenue side of the equation. Simply put, there is no plan to grow the economy, to pay for the long lists of promises made. In fact, the biggest revenue generator in this budget is tax increases on job creators in this province.

Since taking office, the NDP, as a government, has or will have introduced an additional $8 billion in annual taxation measures. This means the very people responsible for creating jobs and growing the economy in British Columbia are being hit with billions of dollars in tax increases — tax increases that are going to affect their ability to invest in well-paying, family-supporting jobs in this province. That includes a new payroll tax and an increased carbon tax that is no longer revenue-neutral.

This is a government that thinks government is responsible for growing the economy. This government promised to follow through on the B.C. Liberal plan to eliminate MSP premiums, and this budget does reflect that commitment. Government is eliminating MSP premiums, while at the same time, they are adding this to the tax burden of businesses in British Columbia.

It’s also interesting to note that this new payroll tax kicks in a year before the MSP premiums are phased out, generating a tax windfall for the government — a government that is giving with one hand and taking with the other.

This budget also features a carbon tax that is no longer revenue-neutral, no longer requires government to report out on how that revenue will be used. Once again, a revenue source for government’s spending plan that comes as a tax burden for British Columbians.

We commend the government for recognizing the needs of families for more child care, an issue that we also recognized in our platform last year. However, we have significant concerns about implementation.

First, it is now clear that the $10-a-day promise was never more than a branding exercise. We are also concerned about a stereotypical big-government solution, which we believe will suffer from the same issues as all big-government solutions — escalating costs, bureaucratization, overregulation, unionization and wait-lists. In particular, without an increase in wages, the government has not provided a way to ease the critical shortage of early childhood educators, without whom, new spaces will be difficult to deliver.

Finally, lower-income families who prefer informal arrangements or parents who want to care for their children at home receive short shrift from this government — meaning less parental choice, not more.

On housing, we recognize that government has a substantive housing plan. But let’s remember what they promised British Columbians. There is no evidence in this budget — in fact, evidence to the contrary — that this government will ever reach the 114,000 new affordable housing units that they promised British Columbians.

The promise to review the homeowner’s grant in tandem with the rental subsidy is ominous, suggesting that one might be substituted for another. A reduction in the homeowner’s grant would effectively increase property taxes for every homeowner in the province by several hundred dollars per year, and I would remind the government that many homeowners are also low-income earners.

[2:35 p.m.]

On the other hand, the government is also backing away from its promise of a $400 rental rebate, even with its massive tax increases. It is nowhere to be found in this budget, despite what the government promised British Columbians.

This plan has absolutely no relief for commuters in the Lower Mainland, with the exception of the Pattullo Bridge, notwithstanding taking $8 billion in taxation revenue. This plan will not deliver the widening of Highway 1 in the Fraser Valley, Surrey LRT, the George Massey Tunnel or the Broadway line.

On the whole, this budget is balanced on the backs of job creators in this province. All this, and additionally we are concerned about external forces that can impact the sustainability of this budget. Those include NAFTA, softwood, interest rate increases and more. Businesses may choose to leave the province because of an overly burdensome tax regime and an unfriendly business climate.

The official opposition is deeply concerned about a budget whose spending plan exceeds revenue generation. This budget reflects a massive spending plan. Spending is growing at twice the rate of government revenue growth, and the fiscal plan is wholly dependent upon a growing economy. However, the plan has no measures to grow the economy. In fact, the exact opposite is the case. The measures in this budget substantially inhibit private sector growth and job creation.

If all of this sounds vaguely familiar, it’s because we’ve heard this story before: tax, spend and tax some more. Welcome back to the NDP of the 1990s. And remember, the sequel is always worse.

With those brief comments, I will reserve my right to continue my remarks at the next sitting of the House. Mr. Speaker, I now move that we adjourn debate.

S. Bond moved adjournment of debate.

Motion approved.

Introduction and
First Reading of Bills

BILL 2 — BUDGET MEASURES
IMPLEMENTATION ACT, 2018

Hon. C. James presented a message from Her Honour the Lieutenant-Governor: a bill intituled Budget Measures Implementation Act, 2018.

Hon. C. James: I move first reading of Bill 2, Budget Measures Implementation Act, 2018.

The bill amends 21 statutes in order to implement many of the tax measures in Budget 2018.

The Income Tax Act is amended to replace the infirm dependant credit and the caregiver credit with a new B.C. caregiver credit for 2018 and subsequent tax years and to expand the Film Incentive B.C. tax credit to scriptwriting. The act is also amended to eliminate the education tax credit for 2019 and subsequent years. The Income Tax Act is also amended to extend several tax credits — the mining flow-through share tax credit for one year, the farmers food donation tax credit for one year, the interactive digital media tax credit for five years and the book publishing tax credit for three years.

The Provincial Sales Tax Act is amended to enable on-line accommodation platforms to register to be collectors to collect the provincial sales tax and the municipal and regional district taxes. The changes will be effective on a date to be specified in regulation. The act is also amended, effective April 1, 2018, to increase the luxury surtax rate on passenger vehicles with a purchase price of more than $125,000 and above.

The Property Transfer Tax Act is amended to increase the rate on residential properties to 5 percent from 3 percent for the assessed value above $3 million, effective February 21, 2018. The act is also amended to exempt transfers, in certain circumstances, in the case of a bankruptcy.

The School Act is amended to include a new school tax on residential properties assessed above $3 million and to include a new revitalization exemption for purpose-built rental housing which receives the municipal revitalization exemption. These measures are effective for the 2019 tax year.

[2:40 p.m.]

The Tobacco Tax Act is amended, effective April 1, 2018, to increase the tax rate on cigarettes to 27.5 cents from 24.7 cents per cigarette and to increase the tax rate on loose tobacco to 37.5 cents from 24.7 cents per gram.

The Motor Fuel Tax Act is amended, April 1, 2018, to increase the fuel tax rates on gasoline and diesel in the capital regional district to 5.5 cents per litre from 3.5 cents. The Carbon Tax Act and Motor Fuel Tax Act are amended to clarify that fuel sales between refiner-collectors are exempt from security.

There are a number of statutes amended to improve tax administration through increased audit, enforcement and information-sharing provisions; provide for audit recovery fees in the case of out-of-province tax audits and necessary consequential amendments to various statutes.

Finally, the Hydro and Power Authority Act is amended to clarify that B.C. Hydro school tax liability is limited to land it owns in fee simple and on improvements.

Mr. Speaker: You’ve heard the question for first reading.

Motion approved.

Hon. C. James: I move that the bill be placed on the orders of the day for the next sitting of the House after today.

Bill 2, Budget Measures Implementation Act, 2018, 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 in the Budget and Fiscal Plan 2018-19–2020-21, which together fulfil the requirements of sections 7 and 12 of the Budget Transparency and Accountability Act.

I also table, on behalf of the ministers responsible, the 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 the service plans for 27 delivery agencies and Crown corporations. The second binder includes a listing of organizations that are exempted from the service plan requirements of section 13 of the Budget Transparency and Accountability Act.

Hon. M. Farnworth moved adjournment of the House.

Motion approved.

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

The House adjourned at 2:43 p.m.