Third Session, 41st Parliament (2018)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Monday, February 26, 2018
Morning Sitting
Issue No. 86
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Orders of the Day | |
MONDAY, FEBRUARY 26, 2018
The House met at 10:04 a.m.
[Mr. Speaker in the chair.]
Routine Business
Prayers.
Hon. M. Farnworth: I have a couple of motions that I know the official opposition and the Third Party are familiar with. I’ll dispense with reading the whole motions, but I will give them to the table.
Motions Without Notice
POWERS AND ROLE OF
FINANCE
COMMITTEE
Hon. M. Farnworth: By leave, I move:
[That the Select Standing Committee on Finance and Government Services be empowered:
1. To examine, inquire into and make recommendations with respect to the budget consultation paper prepared by the Minister of Finance in accordance with section 2 of the Budget Transparency and Accountability Act, S.B.C. 2000, c. 23, and, in particular, to:
a) Conduct public consultations across British Columbia on proposals and recommendations regarding the provincial budget and fiscal policy for the coming fiscal year by any means the committee considers appropriate;
b) Prepare a report no later than November 15, 2018, on the results of those consultations; and
2. (a) To consider and make recommendations on the annual reports, rolling three-year service plans and budgets of the following statutory officers:
(i) Auditor General
(ii) Chief Electoral Officer
(iii) Conflict of Interest Commissioner
(iv) Information and Privacy Commissioner
(v) Merit Commissioner
(vi) Ombudsperson
(vii) Police Complaint Commissioner
(viii) Representative for Children and Youth; and
(b) To examine, inquire into and make recommendations with respect to other matters brought to the committee’s attention by any of the Officers listed in 2 (a) above.
3. To be the committee referred to in sections 19, 20, 21 and 23 of the Auditor General Act, S.B.C. 2003, c. 2, and that the performance report in section 22 of the Auditor General Act, S.B.C. 2003, c. 2, be referred to the committee.
In addition to the powers previously conferred upon the Select Standing Committee on Finance and Government Services, the committee shall be empowered:
(a) to appoint of their number one or more subcommittees and to refer to such subcommittees any of the matters referred to the committee and to delegate to the subcommittee all or any of its powers except the power to report directly to the House;
(b) to sit during a period in which the House is adjourned, during the recess after prorogation until the next following Session and during any sitting of the House;
(c) to adjourn from place to place as may be convenient; and
(d) to retain personnel as required to assist the committee;
and shall report to the House as soon as possible, or following any adjournment, or at the next following Session, as the case may be; to deposit the original of its reports with the Clerk of the Legislative Assembly during a period of adjournment and upon resumption of the sittings of the House, the Chair shall present all reports to the Legislative Assembly.]
Leave granted.
Motion approved.
POWERS AND ROLE OF
PUBLIC ACCOUNTS
COMMITTEE
Hon. M. Farnworth: By leave, I move:
[1. That all reports of the Auditor General of British Columbia transmitted to the Speaker of the Legislative Assembly be deemed referred to the Select Standing Committee on Public Accounts, with the exception of the report referred to in section 22 of the Auditor General Act, S.B.C. 2003, c. 2, which is referred to the Select Standing Committee on Finance and Government Services; and,
2. That the Select Standing Committee on Public Accounts be the committee referred to in sections 6, 7, 10, 13 and 14 of the Auditor General Act, S.B.C. 2003, c. 2.
In addition to the powers previously conferred upon the Select Standing Committee on Public Accounts, the committee be empowered:
a) to appoint of their number one or more subcommittees and to refer to such subcommittees any of the matters referred to the committee and to delegate to the subcommittee all or any of its powers except the power to report directly to the House;
b) to sit during a period in which the House is adjourned, during the recess after prorogation until the next following Session and during any sitting of the House;
c) to adjourn from place to place as may be convenient; and
d) to retain personnel as required to assist the committee;
and shall report to the House as soon as possible, or following any adjournment, or at the next following Session, as the case may be; to deposit the original of its reports with the Clerk of the Legislative Assembly during a period of adjournment and upon resumption of the sittings of the House, the Chair shall present all reports to the Legislative Assembly.]
Leave granted.
Motion approved.
Orders of the Day
Private Members’ Statements
CHAMBERS OF COMMERCE
C. Oakes: It truly is my delight and honour today to talk. I rise today in the House to recognize the B.C. chambers of commerce and to recognize the extraordinary commitments that chambers of commerce provide to communities across the province.
Those who sit in this House are those who understand the importance of chambers in each of the communities, but it’s the people and the businesses that really power the economy of our province.
It is in recognition and admiration of the driving force that I rise today. I have stood in the House multiple times to defend and talk about our dynamic small-business and medium-sized-business communities, but I would like to take a moment to celebrate the people that assemble them.
If anyone is following at home, I recommend that you follow #pplwhopowerbc, which has a great conversation going about the importance of small businesses that is being led by the chamber of commerce.
[L. Reid in the chair.]
The B.C. Chamber of Commerce consists of more than 125 chambers of commerce and boards of trade and over 36,000 businesses. The most spectacular thing about the B.C. Chamber of Commerce sector is that the businesses they represent are as diverse as the citizens that they serve. Every size, sector and region of the province is represented within the chamber, which shines through in how innovative and experienced they have proven to be.
Throughout history, local chambers have even functioned as municipal governments — such as the one I’m from in Quesnel that started in 1910 — and, if they were called by their community, stepped up to provide whatever the needs of the community would be.
One time when I was with the chamber of commerce, I even organized a rodeo on behalf of the chamber of commerce — so a very diverse group indeed. Throughout my tenure as the Minister of Small Business and Red Tape Reduction, I worked directly and constantly with the small and local business sector.
British Columbia has the greatest number of small businesses per capita in Canada. In fact, 95 percent of businesses in our province are small. We determine small businesses in the province to be 50 and under employees. That’s an important piece of the referencing that we use when we do the analysis. I was able to see the many ways in which a city can cluster itself around business proudly, and the many ways in which a good business can be part of a community.
I profoundly believe that the power of a business extends infinitely beyond its commerce and can become a part of history or a promise of the future. Healthy businesses are able to support those around them, and they rely on the people in this House as well as the chamber to support them in flourishing.
It is partly because of my time working within the organization that I can stand here today and so gratefully thank them for the work that they do, and truly understand the commitment that they have made. I know firsthand how its people and all of their spectacular needs and ideas command the direction of our great province. So I’m delighted to reflect on my time working directly with the chambers of commerce, having seen firsthand how truly they respond to the communities and businesses they serve.
There is a great article currently that is in the B.C. Business Magazine, in partnership with the B.C. Chamber of Commerce, which talks about two economies and one province. Often, we talk about rural and urban divide and what those differences are. It was a great example of how businesses in rural communities are supporting businesses in urban. It is one great province, and we need to ensure that we move forward, that we support that idea that we all stand as one province.
I know I’ll have an opportunity to respond a little, but I would like to use a few seconds to talk about some of my mentors. I spent 14 years as a chamber executive within the chamber of commerce, and this was a week where I saw two very close friends decide to make changes.
Claudia Blair, 32 years with the Williams Lake chamber of commerce, and Patty Morgan, ten years with the Quesnel chamber of commerce, are making changes. I wish them so much luck and success. They’ve been true friends, true mentors, and I’m incredibly proud to call them friends.
N. Simons: I really appreciate the comments from the member for Cariboo North. She speaks very eloquently about her relationship with the chamber and the importance of the chamber in all our communities.
I happen to represent a constituency that has five chambers of commerce — the Gibsons and District Chamber of Commerce, the Sechelt chamber of commerce, the Pender Harbour and District Chamber of Commerce, the Texada Island Chamber of Commerce and the Powell River Chamber of Commerce. I count among many of their members, friends, and I respect and value the work that they do, not just on behalf of the businesses that they represent but on behalf of the families that own these businesses.
We recognize that the chambers are a part of our community just as much as the members of those chambers are part of our community. When we think about the importance of the chamber, we think about their advocacy work for each other, for their place in the community and, as well, for the province.
The chamber often makes recommendations as a body to provincial organizations, provincial governments, on recommending policy direction, emphasizing certain issues and policy directions. I think that it’s important for us to heed some of those recommendations.
I think, for a long time, the members of the chambers of commerce in my constituency have been talking about important issues, and they often centre around taxation. They centre around regulation. But they also address issues that I think will make many in the chambers pleased with the decisions that we’ve made around child care, around education, around transportation.
I think that we often forget…. Or we don’t often forget. We don’t always think about the fact that these small businesses are made up of moms and dads and grandparents and kids — people who rely on the services that governments provide and, in fact, assist governments in ensuring that policies reflect their needs.
I’m pleased that I have an opportunity to thank and recognize the chambers and all the people who do so much good work for the businesses in their communities and, in fact, for the province. I’m always pleased to have an opportunity to address the chamber of commerce.
The chamber of commerce on Texada Island is not a big chamber, but I think almost every business shows up for their dinner meetings, and there’s often a lot of good discussion around important issues.
One issue that is raised at every chamber of commerce meeting that I’ve attended is ferries. Our transportation infrastructure is essential, and it’s important that their voice be heard by government when policies are being made around our transportation infrastructure systems.
I believe that the member for Cariboo North is speaking genuinely about an important organization in our province, one that provides us a lot of good and important service. I’d like to echo her comments about their importance, and I hope we continue to have a very good working relationship with our chambers of commerce. Thank you very much.
C. Oakes: Thank you to the member opposite for your words of support.
I think we often forget about the directors and the volunteers that step up for the many organizations and committees that chambers of commerce have to formulate, whether it’s policy or whether it’s work that’s being done on behalf of their community. They contribute, as the member opposite said, these mom-and-pop businesses who’ve been in our communities, many for multiple generations. They step up. They volunteer to make sure that whatever needs to happen in the community, they’re responsible and able to take that.
In my time working with the chambers of commerce movement for 14 years…. Some items that the member opposite did recognize: the great need for infrastructure…. We talked a little bit earlier about two economies and one province, how critically important it is to consider infrastructure as part of that whole conversation.
It’s great to have resources. It’s great to have ability up in northern parts of the province to be able to supply — the value supply chain down in urban communities — but it’s important that road infrastructure is in place. Things like the Cariboo connector — critically important. Side-road programs. All critically important to making sure infrastructure happens.
Connectivity. Connectivity is something that we worked on federally as well as with the province for multiple years. It’s one thing to change our dynamic of going with technology, so critically important for growing businesses across the province. Yet when you look at a lot of the rural communities, we still do not have that level of connectivity.
I think it’s a real opportunity. Chambers of commerce have worked on that for a number of years. I really hope they’ll continue and be successful with that, because that really does drive competitiveness in our communities.
We’ll talk a little later about the creative economy, but I think back to chambers of commerce and all of their engagement that they’ve had in communities, how critically important that they’ve risen and championed different projects in their community that are so important.
Finally — I know my time is running out — how can we forget about the importance of advocating to make sure that small businesses can remain competitive? Chambers of commerce are always on the forefront of that, looking at taxation, looking at how we can make sure things are truly competitive across the province.
Now it’s not just across Canada that we have to look at. When we look at the United States and the competitiveness that they’re putting forward, it’s truly important for us to capture that lens on how we need to make sure we’re supporting our small businesses here in British Columbia so that they can remain that 95 percent of our businesses — strong, vibrant and committing to supporting our communities.
Again, I want to acknowledge the chambers of commerce and the work that they do on the ground every day, and the chamber executives, managers. I mentioned Claudia and Patty. Thank you to all executives for the work you do, and their boards.
THE IMPORTANCE OF THE
CREATIVE INDUSTRIES IN
B.C.
B. D’Eith: Today I’m going to be talking about the importance of the creative industries in British Columbia. I’ve actually worked in the creative industries for 28 years, and I never get tired of hearing about the successes of the dynamic and growing industries that make up the creative industries. I speak with pride — I really do — about how important the creative industries are in our province and how they contribute product all over the world.
It’s kind of fun for everyone to be able to see our local sites and sets when they see international blockbuster shows. I just wanted to think about some of the shows and the creative industry that’s happened here.
We think of shows like The 100, Arrow, Bates Motel, Battle Star Galactica. We all remember the X Files, how important that was. Once Upon a Time — a lot of our kids watch that — Smallville and, recently, The Good Doctor. They’re all great television shows, and there are so many more. Films like Dawn of the Planet of the Apes, The Hurt Locker and, of course, Deadpool are big films that were filmed here and other locations.
In animation, we have Atomic Cartoons: Beat Bugs, Max and Ruby. Bardel animation has offices in Vancouver and Kelowna, which is great. They worked on Teenage Mutant Ninja Turtles, Puss in Boots, Angry Birds Blues. Digital companies. Hothead Games’ On the Rain-Slick Precipice of Darkness, Boom Soccer and the Big Win NHL. Of course, Relic Entertainment has Homeworld, Warhammer, Company of Heroes. And the wonderful Electronic Arts and the campus they have in Burnaby, with FIFA soccer, NHL, UFC, Plants vs. Zombies and Need for Speed.
Now, I came through the music industry. That’s where I was. I’m extremely proud of our B.C. music industry. We have some of the top companies in the world, like Bruce Allen Talent and S.L. Feldman and Associates, Nettwerk Music, 604 Records, to name a few; and huge international artists like Bryan Adams and Michael Bublé, who’s actually going to be hosting the Juno Awards in Vancouver, which is a wonderful thing that’s going to be happening soon, bringing a huge economic benefit to the region. Diana Krall, Sarah McLachlan, Nickelback, to name just a few. Some up-and-coming artists like Dan Mangan, for example, or Mother or Dear Rouge, who I really hope will be international success stories.
We also have amazing jewels like the Vancouver Symphony Orchestra or the festivals, like the TD Vancouver International Jazz Festival. These are all world-class productions.
We have a thriving book and magazine publishing industry, with Douglas and McIntyre, Greystone Books, Hancock House, Harbour Publishing, Orca Book publishing. We have magazines like Vancouver Magazine, K and Pacific Rim. These are all just to name a few examples.
When we see all these examples, we’re actually looking at four broad areas of output: the motion picture industry, the music and sound recording industry, international and digital media, and book and magazine publishing. These sectors actually support more than 90,000-plus workers, plus thousands of more part-time and contractors, in all four sectors. A lot of these jobs are green jobs, and the majority are high-paying.
Now, if we look at all of this together, we’re looking at about $5.23 billion in economic contribution per year from the creative industries. That’s $2.3 billion from the interactive and digital media. That’s actually key to the B.C. tech cluster. We’ve actually experienced some of the highest revenue growth in Canada in this sector. And $2.6 billion in the motion picture industry, $400 million in the sound recording industry and $28 million in the book and magazine publishing sector.
Breaking this down into some of the sectors, the motion picture industry in British Columbia is actually the third-largest motion picture hub in North America. We have one provincial and eight regional film offices covering British Columbia, and we have 35 municipal film offices across the Lower Mainland. Actually, 62 percent of Canada’s foreign location service is done in British Columbia. It supports 100 plus domestic film and television productions.
We actually have, for the visual effects, the world’s largest visual effects cluster, with 80-plus visual effects and animation studios across British Columbia. They’ve actually seen a 10 percent lift in salaries for new grads in 2017. That’s 60,870 jobs. We expect another 10,500 jobs before 2025, and 7,000 of these will be because of expansion. We’re really, really excited about that. That’s $2.6 billion.
Music and sound recording — it’s the third-largest centre in Canada. We have about 1,200 artists and 6,400 musicians, singers and conductors; 285 music companies; over 200 music festivals; 165 music studios. That’s about 6,400 jobs, generating $400 million.
As far as the interactive and digital media side, we have an amazing story. We have 1,150 creative tech companies that generate $2.3 billion in annual sales. We have 5,900 FTEs. It’s amazing. That’s 16,500 jobs generating $2.3 billion.
With book and magazine publishing, there are 200 businesses, and we actually do 23 percent of the magazines in Canada. That’s 6,700 jobs. The book publishing sector supports jobs for publishers and writers, printers, illustrators, designers, editors and retailers. So we’re very excited about the $28 million contribution that they make.
To conclude, the creative industries are an important part of B.C.’s diverse economy. These industries create green, high-paying jobs and also ensure that B.C. is participating in the exploding global creative economy. That’s 90,000 workers plus, generating over $5 billion per annum in economic contribution. That seems pretty important to me.
J. Thornthwaite: I rise today to respond to the members opposite. Thank you very much for your support for the creative industries.
The creative industries are a key part of our economy, particularly in my own riding and the entire North Shore. The film industry employs 8,000 direct jobs on the North Shore alone, and those are direct jobs. That doesn’t include the construction, the hotels, the restaurants, the parking — all of these indirect jobs. So a lot of people on the North Shore rely on the film industry, in particular, for their employment.
British Columbia is one of the ten most filmed locations in the world, and the University of British Columbia, in particular, is the ninth most filmed location in the world. British Columbia is now the leading province for employment in Canadian film and television production. Our province generated $504 million in television production last year, which is a 41 percent increase since 2007.
B.C.’s film industry production has seen a 40 percent increase in job growth, year after year, to over 60,000 jobs. Canadian television production from producers based in British Columbia increased by 26 percent, to $504 million. British Columbia now produces 36 percent of the total film and television in all of Canada, surpassing Ontario for the very first time this year.
Also, this year the volume of theatrical feature films made by producers based in British Columbia increased by 92.7 percent, to $79 million. Probably the highlight of these was Star Trek Beyond. According to the motion picture production association of Canada, more than 3,900 British Columbians helped bring Star Trek Beyond from the green screen to the big screen. That’s almost 4,000 jobs on one production alone. Over the course of 78 days of filming in British Columbia, the production contributed $69 million to the province’s economy, including over $40 million to hire a local cast, crew and extras.
I recently attended the Digital Media Academy’s sixth annual expo on Saturday, February 17, at Argyle Secondary, in my riding. It was their largest expo to date, with new exhibitors this year, including Industrial Light and Magic, Sony Imageworks, EA Sports, Work B.C., Find Your Fit and Virtro Entertainment — virtual, augmented and mixed reality.
The digital media youth expo is hosted by the North Vancouver school district’s Digital Media Academy under the direction of Murray Bulger, a very talented teacher at Argyle Secondary. The youth expo is a place to learn about the many educational and employment opportunities available in the digital media industry. It’s where students, parents, families, teachers and the community can meet with representatives from many Lower Mainland post-secondary schools, local and global organizations, artists, studios involved in all aspects of digital media.
Attending were representatives in virtual reality, visual effects, animation, film, sound, photography, web design, game design, along with a host of other realms — all in North Vancouver.
As you can see, the film industry is key to our provincial economy. It is a vital part of many different industries, and it employs tens of thousands of British Columbians and contributes billions to our economy. I hope that this government continues to support and nurture the industry as much as ours did, for it is truly one of the most advanced and cutting-edge film industries of any in the world.
B. D’Eith: I want to thank the member for North Vancouver–Seymour. We dealt, on many occasions, in the creative sector, and I appreciate all the work that she’s done in this area. I agree that it’s important that we continue to support and nurture the creative industries.
I’d just like to shout out to some of the amazing organizations that actually help support the creative industries, like MPPIA and CMPA in the film industry, Music B.C., DigiBC, the Association of Book Publishers of British Columbia and the Magazine Association of British Columbia. All of these now are actually supported under one roof, which is Creative B.C. That is a pan-sectoral support service now, which is wonderful.
Under Creative B.C., there are the regional film commissioners, the industry sponsorships and initiatives, project development, the interactive fund, Passport to Markets, and trade and investment. They also have the B.C. music fund, which launched in 2016. It provides $15 million over two years to the music industry, supporting eight programs.
Of course, there are the tax credits that are very helpful in sustaining many of the creative industries. These tax credits actually support the very strong labour base that we have in the creative industries, particularly in film, television and digital. We have the production services tax credit and the Film Incentive B.C. tax credit. These are very important.
I’m very pleased, actually, to build on the work that’s been done. Script writers are now actually going to be included, as of Budget 2018. It’s really great in terms of building the local talent, in terms of our own local, homegrown creators, which is really important.
There’s also the interactive digital media tax credit, and that’s also been extended for five years in this latest budget. Also, we saw the book publishers tax credit. That was also extended for three years under this budget.
The other really important part for support is training. Without training, it’s very difficult to support the creative industries. There’s the North Island College pilot project that was done to make sure we can train outside of the Lower Mainland. There’s Capilano University, Emily Carr, the Vancouver Film School and the Centre for Digital Media.
Supporting the $5.23 billion creative industries through training, tax credits and programs is critical for the coming years. I’m pleased to see the $15 million increase to the Arts Council and $3 million in Budget 2018 for Creative B.C.
The creative industries contribute to the B.C. economy. It’s undeniable what these industries contribute, and we need to ensure that these industries help us to remain diverse in our economy and to contribute to the global creative economy.
COMPETITIVENESS
G. Kyllo: It is truly my pleasure to rise and speak today about something that British Columbians should be very concerned about: our domestic and international competitiveness.
It’s no secret that tax structures greatly influence the competitiveness of a jurisdiction and are an important determinate of economic growth. Competitive tax rates can serve to foster economic growth in a varying number of ways, including helping to attract international business investment and incentivizing existing businesses to invest in product development and new equipment to improve productivity. Additionally, competitive tax rates make B.C. businesses more competitive in an increasingly global economy, better enabling them to compete successfully in international markets.
Like many of the members here today, I represent a vibrant community, whose success was built largely by daring entrepreneurs who found the lakes of the Shuswap to be an idyllic backdrop for their business ventures.
It has been said time and time again, by members from both sides of the House, that businesses are the backbone of our economy, but right now local businesses are caught between the proverbial rock and a hard place. Government measures to erode the competitiveness of B.C. businesses put at risk the economic growth of our province. Increased taxes lead to reduced business earnings and potentially significant losses, leaving employers with extremely difficult choices to be made: either reduce staffing levels through layoffs or raise prices.
Reducing staffing levels would prove to be devastating to smaller communities, particularly where employment opportunities are not as plentiful as larger centres. The latter would increase the cost to consumers. And for businesses that are competing internationally, increased prices would only further reduce their competitiveness resulting in lost sales.
The cocktail of increased corporate and personal tax rates, rising carbon taxes and the escalation of minimum wage rates mixed with the job-killing payroll tax will be hard for businesses of all sizes to swallow.
The government’s own MSP Task Force cautioned against the payroll tax. “A payroll tax would reduce the competitiveness of B.C. businesses at a time when they’re facing several competitive challenges, including expected increases to the minimum wage, CPP increases and recent tax reforms in the U.S. which improve the competitive position of many U.S. businesses.”
I’m an entrepreneur at heart, privileged to be able to serve in this House and represent the hard-working men and women of Shuswap. I know full well the challenges, risks and stresses of running small businesses. The current assault on B.C. businesses is of great concern.
This side of the aisle boasts significant firsthand business experience. We’re business owners, farmers, entrepreneurs and business managers. We can sympathize with business owners who are desperately trying to figure out how to move forward.
I understand what it’s like to invest your life savings and to mortgage your home on an idea and a dream to create a business and to create family-supporting jobs in British Columbia. This, I believe, provides me with a very different perspective from members on the other side of the House.
Taxes are, in part, designed to provide relief to those who need it most. But what if those very people lose their jobs because businesses cannot absorb these new tax costs or economic shifts are too large or too sudden?
The unintended negative consequences of reducing the competitiveness of B.C. businesses may well prove to be more harmful than helpful. These consequences extend far past asking the top tax bracket to pay more. Businesses need to be confident in our province’s business and investment climate. They need to know the rules won’t change with every election. We should be building relationships with businesses across our province and the country, not scaring them away.
Now, prior to the release of this year’s budget, B.C. was ranked as having the sixth-highest marginal effective tax rate for business when compared to 34 OECD jurisdictions and our ten Canadian provinces. We only expect our competitiveness to continue to suffer as these increased taxes of Budget 2018 come into play.
In a recent op-ed by the Business Council of B.C., Jock Finlayson and Ken Peacock expressed concerns.
“The new employer health tax, the EHT, comes as an unwelcome surprise to the business community. Set at 1.95 percent of payroll for all but the very smallest firms, the tax will generate almost $2 billion a year by 2019-2020. The EHT spells higher labour costs for B.C. employers, even those who currently pay MSP premiums on behalf of their workers. Moreover, in 2019 many employers will find themselves paying both the new payroll tax and MSP premiums as the government effectively double-dips for almost a year.”
They go on further to caution:
“The most glaring missing piece in Budget 2018 is the failure to acknowledge or tackle B.C.’s lagging investment performance. British Columbia is losing ground to the United States on competitiveness, capital formation and business attraction, owing in part to higher taxes, increased regulation, and rising carbon and energy prices on our side of the border at a time when the U.S. is moving in the opposite direction. Nothing in Budget 2018 suggests the government is keen to confront that problem.”
Economists know full well that if we intend to spur investment, we should lower taxes on the earnings of capital and if we intend to increase employment, we should lower taxes on workers and the businesses that hire them. We need to give our businesses a competitive edge, not take measures to hamper growth.
Increased taxation makes us uncompetitive. It is crucial that in representing our constituents, we listen to the concerns of business owners, rather than dismissing their opposing opinions as a lack of understanding of the intricacies of taxes. As business owners, our constituents know more about the impacts of increased taxation and business growth than this House has been giving them credit for.
Business owners in my riding have been reaching out to me expressing their concerns about dealing with, in part, the payroll tax. It is important that they know their concerns are both valid and heard. Competitive tax policy has enabled B.C. to rise to the fastest-growing economy in Canada.
Deputy Speaker: Member. Member, these statements are less political.
G. Kyllo: However, with so much hanging in the balance, we cannot afford to risk this position. Therefore, we must be diligent and thoughtful when undertaking any tax or policy change that hampers the ability of B.C. businesses to remain competitive.
D. Routley: I did think we were in members’ debate and not budget debate. That being said, I will continue with my planned presentation, which is, to begin with, a definition of the notion of competitiveness.
Competitiveness, I think, refers simply to the desire to be more successful than others. But applied to an economy, business or society, it’s the cumulative effect, the outcome, of the kinds of investments we make, as played out in our economic well-being.
When we look at competitiveness simply as a reduction of costs — even one cost in particular, that of business taxation — we miss the point entirely. Competitiveness in our economy, a modern economy, is built on a great many factors. That is why what we’re seeing now are investments in child care and in housing. Once an economy reaches a point where housing costs are out of reach for the workers that are required in our workforce, that is a drag on competitiveness. We have to look at competitiveness and examine all of the factors that affect it.
When we look at the labour force, we know that in Quebec, when they started their child care program, soon afterwards, they had the highest participation of women in the skilled trades.
In our society, one of the main challenges to competitiveness is the replacement of labour. There’s a labour shortage and a skills shortage. If we simply focus on reducing costs to businesses through taxation, we will miss the point that one of their greatest challenges is a supply of well-trained, prepared, healthy workers.
Our economy depends on us investing in people to get the most out of them in order to be competitive: education; infrastructure like the Pattullo Bridge, in the budget; spending on public buildings. All of these create thousands of jobs but also create an infrastructure that supports a competitive economy.
When we look at the elimination of costs like the MSP premium, when we look at the reduction of fares in B.C. Ferries…. Those are direct investments in competitiveness. If you look at what’s happening in the coastal communities and the Island communities, we have a tourism industry that is deeply impacted by costs such as ferry fares. So when we examine and try to increase our competitiveness, if we focus solely on one simple equation, we will miss the boat and our efforts will be wasted.
In order to truly support a modern economy and competitiveness, we have to do things like cut small business income tax, which has been done, but also move towards investing in supporting industry — like the Buy B.C. program, as an example. When we, as a government, look at the role that government plays in the economy as a purchaser of goods and services…. On Vancouver Island, the Vancouver Island Health Authority, Island Health, is the number one purchaser of goods and services.
If we are careful and strategic about the way we use our own involvement in the economy both as a patron, as government, but also as the body responsible for providing the infrastructure — the bedrock foundation for a successful economy — it means workers can afford to live, can afford a place to live and can afford to have their children taken care of so that they can contribute to the economy.
If we ignore those problems, if we allow housing costs to soar beyond the reach of the people who need to live in our communities to make our communities successful, we will lose. There’s a phrase in the Gulf Islands that the most endangered species in the Gulf Islands is the working family. That’s the reality.
So, yes, we must remain tax-competitive. But we must remain cost-competitive, revenue-competitive. We must be competitive in the services that we provide to people, we must be competitive in the quality of workers that are produced, and we must be competitive in a broad range in order to be truly successful and answer the simple definition of competitiveness — the desire to be more successful than others.
G. Kyllo: In hearing and listening to the comments of the member opposite in referring to Quebec, a have-not province, now I kind of understand the direction that this government may be wanting to take us in.
When it comes to understanding competitiveness and making B.C. businesses actually successful and having the opportunity to compete in international markets, there’s another euphemism, a phrase, that I’ve heard. Trying to explain that to the members opposite is like trying to explain thunder to goats.
I am just so glad that the member opposite wants to talk about the human element of business. We should be celebrating the creative and the innovative, enterprising British Columbians who are brave enough to invest in the business world.
I’d like to just take a minute to introduce to the House three businesses that are in my riding that are all expressing extreme concerns with respect to the new tax hikes that are before them.
Waterway Houseboat Vacations in Sicamous is celebrating their 50th anniversary and anticipating a tax hike of $23,000.
North Enderby Timber is a key player in our softwood lumber industry. They’re committed to sustainable forest management and high-quality products. They’re facing increases north of $100,000.
And Valid Manufacturing in Salmon Arm employs over 100 staff who create cost-effective solutions for industrial, commercial and recreational vehicles. They will see premiums rise by close to $150,000.
With the median household income in B.C. hovering around $70,000, that relates to two new positions that could have been….
Deputy Speaker: Member.
G. Kyllo: Yes, Madame Speaker.
Deputy Speaker: This portion of the morning is related to non-partisan comment.
G. Kyllo: Thank you, Madame Speaker.
Now, local businesses big and small do not operate in a void. Waterway Houseboats, for example, allows couples to host weddings on the water. These weddings include festivities such as dancing and dining. These and other businesses, like musicians and caterers and florists, are involved in their events. Should Waterway be forced to raise their prices, perhaps fewer couples will choose to hold their events in the Shuswap, a decision that would harm other businesses in our community. At Waterway Houseboats, over 50 percent of their clientele comes from Alberta — another cautionary tale for the members opposite.
The last thing that we want to do is to chase businesses away. After all, these are not faceless corporations; they are family businesses built up carefully with great love and care over generations. They draw in tourists, support community construction, and develop and manufacture innovative technology. They are so much more than a tax bracket. And yes, not every business in the province will face new taxation. But those that do will shoulder an immensely disproportionate burden.
THE ECONOMIC BENEFITS OF
AFFORDABLE CHILD
CARE
M. Dean: No matter what side of the aisle we are on in this chamber, we can all agree there is a lack of available, affordable child care spaces in B.C. Finding good-quality, accessible child care is a major issue for most British Columbian families. Most families can’t afford to live on one income, and many parents, especially women, want to remain in the workforce and advance their careers. Indeed, they need to in order to plan for their senior years and grandparenthood.
Yet in B.C., child care fees are the second-highest family expense after housing and are increasing at rates that outpace inflation. For infants and toddlers, these fees are now the second-highest in the country. For families who can afford the fees, spaces are hard to come by, especially for children under age three, with the regulated-space availability for less than 20 percent of all children.
Parents wait months on wait-lists, and too many have to make the difficult choice of not working or sending their child to an unlicensed care provider. Other families add a commute for child care on top of their stressful commute for work.
Jen, who lives in my constituency, was telling me the other day, with increasing stress, that she has to drive ten kilometres away from home for child care before she joins the Colwood crawl. It’s no wonder, then, that too many families make the decision for one parent to stay home — this is disproportionately women — keeping potentially 17,000 parents out of the workforce and forcing many families onto social assistance.
Without quality, affordable and accessible child care, too many parents in B.C. do not have the freedom to choose whether to stay at home or go back to work. For families who cannot find or afford child care, it’s most often the women who are essentially forced to stay home or to work reduced hours, putting their careers on hold and ultimately affecting their status and income in their retirement.
Liz is a young woman living in Esquimalt. She’s just landed her perfect job, and she’s pregnant. She’s really anxious now about child care. She has put her name on numerous lists and lives with anxiety every day, not knowing whether she’s going to get a spot or whether she’ll have to give up her job. She’s one of thousands being kept out of the workforce, forcing many families onto social assistance.
It isn’t just families suffering. Whether it’s absenteeism, greater turnover, reduced productivity or increased use of extended health benefits, ultimately employers are paying the price too. As Anita Huberman, CEO of the Surrey Board of Trade, said: “The work-life conflict experienced by parents raising young children today is costly for employers. The result is higher absenteeism rates for this group of employees, greater turnover and increased use of extended health benefits — all of which employers pay for.”
We can see the results of ignoring this economic reality: increased inequality, increased child poverty, increased reliance on social assistance, increased attention from other services and authorities.
Clearly, child care is an economic imperative. The costs to our economy and society from a lack of affordable universal child care are clear, and so are the benefits. Child care has become as critical to the health and growth of our economy as K-to-12 and post-secondary education and skills training. Some studies estimate that universal child care will create 69,100 net new full-time-equivalent jobs in B.C., comprising a number of factors.
With access to affordable, quality child care, up to 17,000 B.C. parents, mostly mothers, will be able to enter or return to B.C.’s labour force. With available child care, parents will be able to move from part-time or casual to full-time jobs. From reduced staff turnover, absences and increased productivity alone, conservative estimates suggest that universal child care would lead to a growth of approximately 14,000 full-time-equivalent jobs.
The employment multiplier for this sector — the number of jobs created per $1 million of increased output in a given sector — is, at 36.9, by far the highest across all industries, suggesting that early childhood education doesn’t only provide significant benefits to children, families and the economy but that it provides a better return on investment than many other sectors.
The importance of quality early learning is made very clear by a recent Conference Board of Canada report that shows there is close to $6 in economic benefits for every $1 spent on expanding early childhood education enrolment of children under five years of age. According to Statistics Canada, the GDP multiplier for child care outside the home is among the highest of all industries.
The economic benefits from lower child care fees, and increased income as parents return to work, helps more than just families. Estimates are that there would be net gain of almost $260 million in family disposable income, which leads to more spending, with the end result being an over-$172-million increase in GDP and 1,700 more jobs. It’s estimated that the benefits to businesses from reduced staff turnover, absences and increased productivity will result in a GDP increase of around $1.2 billion.
Universal child care is one of the best investments government can make.
L. Throness: Well, it’s a pleasure to speak to the economic benefits of child care. I know that the current academic rage, the scholarly fashion, is to assert that there are great economic benefits associated with child care. But I’m an opposition member, so I want to question that. The main Canadian study of Quebec’s daycare claims that increased labour market participation of women pays for its $7-a-day plan. But here’s what the Fraser Institute says: “These claims should be treated skeptically. The resulting tax revenues from increased maternal labour force participation likely do not offset the full cost of Quebec’s program.”
To replace family care with government care is probably not cheaper, and it’s easy to see why. The parent who re-enters the workforce makes a salary. We must deduct from that the training costs and salary of the early childhood educator; the cost to the economy of that child care worker unable to do other things that might earn more. Deduct also the cost of government subsidies, of regulation, of running a daycare; and the many miscellaneous costs to parents, like picking up and dropping off children.
There could be some economic gain if those entering the workforce were high-income earners, but by definition, those who benefit from this subsidy are low-income earners taxed at the low end of the progressive scale. Their taxes might not even cover their own subsidy, let alone the entire child care program.
Why else would the government want universal public daycare? I can see a couple of reasons. We know that 700,000 baby boomers will retire in the next five years or so, and our province is already experiencing a shortage of workers. To alleviate that shortage, the government needs to push more people into the workforce. I think that’s a big driver for more child care.
The government also wants more women in the workplace for the purpose of gender equity. Of course, we all want fairness in the workplace. But for some reason, the government doesn’t see a parent taking care of his or her own child at home as productive labour, even though a different person caring for that same child in a daycare is applauded for doing productive work. This is an obvious contradiction.
I find it strange that the government, usually so touched with tender pity for hurting people…
Interjections.
Deputy Speaker: Members.
L. Throness: …ignores the cries of an infant leaving its parent, who has to go to work, and the sadness of a parent who would rather stay home with their new baby for a while. But parents are not offered that option.
Suddenly, for the government, it’s all about the money. This, to me, is the second reason for universal public child care. Parents have to go to work to generate the taxes to help pay for big government programs like child care.
In contrast, I think the benefits of child care are not primarily economic. They are social. It’s about self-fulfilment. It’s about having kids and a career at the same time. It’s more about lifestyle than about growing the economy.
The government could grant real equity to lower-income parents by giving them a real, equal choice: helping parents to enter the workplace and sending their child to good public care, or helping them to work and arrange private care with a family member or someone else they trust, or assisting them to keep their child at home, particularly for the first three years when parental attachment is most important.
It shouldn’t be all about the money. It should be about parental choice and what’s best, in the parents’ eyes, in their own circumstance for their own kids.
If the government really wants to grow the economy, then instead of shoehorning people in the workforce, it will provide incentives to employers to replace labour with capital. That is, to replace human workers with software and machines that automate boring, repetitive tasks. That don’t get tired or ill or make mistakes. That don’t ask for wages and that happily work 24 hours a day. But unions wouldn’t like that, would they?
This, perhaps more than anything else, would give us more real economic growth. History shows that human knowledge applied to technology and machines, more than human labour, has provided the incredible standard of living, unmatched in all of human history, that we enjoy today.
To conclude, I think there’s room for healthy skepticism about the vaunted economic benefits of child care. Child care provides more of a social than an economic benefit. I would encourage the government to provide real options to parents so that they can do what they want with their lives and still be sure that their children are well raised in whatever setting they choose. This would be a real social benefit of great value, which, in their haste to justify and push through the creation of universal public child care, the government has apparently forgotten.
M. Dean: Thank you to the member for Chilliwack-Kent for his perspective.
Universal child care offers choice to British Columbians and equality of access, which also means access to the advantages that universal child care brings. Not only are there clear immediate benefits to universal child care, the benefits of universal child care will also increase over time. Children who experience high-quality, affordable child care grow up healthier, better educated, less likely to be involved in the criminal justice system or go on social assistance — all of which lead to higher earnings, higher tax revenues for governments and reduced government spending.
The literature overwhelmingly finds that high-quality education in the early years leads to improved cognitive and language development and better numeracy skills, all of which are essential for success in today’s society.
Long-term, high-quality universal child care can help to address the core economic and social challenges facing our province. It can help reduce poverty, address skills shortages and improve productivity and innovation. Studies show that for every dollar invested, the benefit ratio for disadvantaged children is in the double digits.
While the long-term benefits are greatest for children from disadvantaged backgrounds, earlier learning like that received in high-quality child care centres has been proven to improve the abilities of all children.
Early childhood educators can also help to identify learning or developmental delays at an early age and provide parents and children with appropriate support. Early detection means that the child can receive specialized help sooner, preventing issues from intensifying, which is more challenging and costly. Overall, there is compelling evidence that children who receive early childhood education have better economic, social and health outcomes.
Deputy Speaker: Hon. Members, unanimous consent of the House is required to proceed with Motion 2 without disturbing the priorities of the motion preceding it on the order paper.
Leave granted.
Private Members’ Motions
MOTION 2 — SUPPORT FOR
AGRICULTURE
INDUSTRY
I. Paton: On behalf of my constituency in Delta South and on behalf of the great people involved in agriculture activities across this province, I am proud to stand in this House to present the following motion:
[Be it resolved that this House supports providing assistance to B.C.’s agriculture industry.]
I speak this morning on behalf of my constituents, my riding of Delta South. Having grown up in Delta South, I grew up on the farm. I was born in 1956 on our family farm, and I’m proud to say that I’m still living on my family farm in my grandfather’s house, the same house that I’ve been in for many, many years. My upbringing was on our dairy farm in Delta. My family is…. I’m a third-generation farmer on the same farm in Delta.
[R. Chouhan in the chair.]
I certainly know what it’s like to be involved in the agriculture industry, having been a dairy farmer for many years. I know what it’s like to get up every morning at 4:30, work through the day, milk again at five o’clock at night. So I’ve been very aware of the challenges of farming, the challenges of agriculture, the challenges of signing your own paycheques — what I’ve done every year since I came out of UBC in 1979. I’ve been in charge of my own two businesses — my farm auction business and my dairy farm in Delta.
My father, Ian Paton Sr., was the chairman of the Agricultural Land Commission, so our family is rather close to the job of protecting and saving farmland in the province of B.C. I’m very proud of what he did over the years as a commissioner and then, eventually, in the late ’80s, being the chairman of the Agricultural Land Commission.
Nothing brings people closer together than a good meal. Take a moment and try to think of a celebration or gathering in your life that didn’t involve food. It’s probably impossible. Equally impossible is getting the food on your plate without a farmer, a rancher, a fisherman or a wine producer. I could go on and on. The B.C. agricultural industry is made up of hard-working men and women whose goods end up on the table across British Columbia and around the world.
B.C.’s agrifood and seafood sectors are booming today, thanks in part to the management of the previous B.C. Liberal government. The best support that government can provide to businesses, including those in the agriculture sector, is to create an economic climate that encourages success.
There are actually 31,000 hectares more land in the ALR today than there were in 1974. The budget for the land commission has been increased, back in 2012, by 50 percent, and it now sits at roughly $4.5 million. We are certainly supporting our Agricultural Land Commission and the land reserve.
There are a number of challenges looming on the horizon. I’ve been getting an earful from farmers about this government’s plans to hike the carbon tax and the minimum wage. It’s going to hit them financially, and that could mean some tough decisions ahead. Reducing staff or raising prices for consumers could be on the table. The minimum wage, in particular, came as a surprise to many.
Danielle Synotte, communications director for the B.C. Ag Council, said: “The government received a report from the minimum-wage review commission and just adopted every recommendation, without any consultation for how it would be implemented.” Imagine that — not talking to the people who will be directly affected before making a decision on minimum-wage hikes.
That’s also the concern I have about the Agriculture Ministry’s advisory committee studying the agricultural land reserve and Agricultural Land Commission. It underrepresents farmers and excludes key agricultural sectors and regions.
Presentations are being done by invitation only, so only handpicked associations will have the chance to meet face to face with the committee. This means anyone not invited will be limited to providing on-line feedback only. How can the committee do a thorough, balanced review, given these limitations? I’m very skeptical.
What’s more, the minister appears to have already made up her mind on the changes she wants to make regarding the elimination of zone 2 from the ALR. She has publicly stated that she sees a change coming, and in the same breath, she promises to consult in a meaningful way.
I stand here this morning very proud of our agriculture industry in B.C. I think everyone’s doing rather well. We’ve had some good crops this past summer in the vegetable business, the cranberry business, blueberries. Dairy farming is doing very well. We can also support, in a big way, predator control in our northern communities with wolves, bears and cougars.
J. Rice: I’m proud to rise today and talk about the importance of the agriculture sector to British Columbians. I want to thank the member opposite for his remarks. He is, no doubt, a strong advocate for the agriculture industry. I see that displayed in his time here in the House.
Saying that, I think our current minister, our new Minister of Agriculture, is also a phenomenal advocate. I couldn’t feel any better, knowing that she is in the role that she is, because no one has advocated for agriculture like she has in the last four years. I feel quite good, knowing she is in the place that she is in.
I attended a fisheries conference on Friday with the Minister of Agriculture, and I heard from fishermen who said things to me like, “We haven’t seen a Minister of Agriculture from the province here in years, in decades, and we have multiple MLAs that are participating in the commercial fishing sector,” which is an important part of the agriculture sector.
I’d like to spend some time talking about this during my allocated time, because I think it’s often overlooked. We gravitate towards land-based agriculture when we think about this portfolio, and as a coastal resident and a coastal MLA, I think it’s important that we talk about the importance of the fisheries to our province.
I will just touch on some of the broad commitments that we made in this budget just recently around agriculture generally. The budget is over $93 million. That’s an increase of $8 million to help B.C. agriculture and seafood businesses grow. The support for agriculture is going to increase in the next three years to over $97 million by 2021, which is an increased investment of $29 million over the next three years.
This budget investment is helping B.C. farming families, seafood and food processors across our province and will support growing the market for B.C. products around the world and here at home. The funding will help them succeed, generating good, well-paying jobs, economic activity and revenue in communities along our coast and in our province.
This year’s budget will support each of the items in the Minister of Agriculture’s mandate letter, including the enhanced Buy B.C. program; Grow B.C., with incentives for new farmers; Feed B.C., serving more B.C. foods in government institutions; steps in developing a food innovation centre; and a revitalized ALR. I think those are phenomenal commitments and demonstrate this government’s commitment to supporting agriculture communities and the agriculture sector.
I also want to just touch on a little bit about the wildfire season. The wildfires and flooding this year devastated many areas of our province, displacing tens of thousands of people. We saw the producers, the land, their cattle on the front line of an unprecedented disaster. We announced, in partnership with the federal government, a $20 million agriculture recovery program, to help address the needs of farmers and ranchers impacted by this summer’s devastating wildfires.
We also have appointed George Abbott and Chief Maureen Chapman to lead an external review, an after-action review of the wildfire season, and I suspect that there will be new recommendations on how we can better support our agriculture communities when it comes to wildfires.
Touching back on the fisheries part of the Ministry of Agriculture, I just wanted to talk about something that’s really important to coastal B.C. I represent this huge area of the north coast — Prince Rupert all the way down to the central coast, through the Bella Coola Valley, which has great agriculture, down to Bella Bella, on to Oweekeno, or Wuikinuxv, and including Haida Gwaii.
Commercial fishing or fishing and shellfish aquaculture and aquaculture are a huge part of the economy for my constituents. But we’re lagging behind, compared to our Alaskan neighbours to the north and to the maritime provinces to the east, when it comes to actually generating or capturing the actual landed value or the financial benefits of having a robust fishing industry.
I’ve been looking at reports recently. One in particular has really struck a chord with me. I wish we could have props here, because I would hold up this graph. But I can’t. It basically says: “We’re catching less fish in the maritime provinces, but we’re getting more value. We’re catching less fish in Alaska, but we’re getting more value. In B.C., we’re catching less and making less.”
D. Barnett: I would like to offer my appreciation to the member for Delta South for giving us the opportunity to talk about supporting agriculture in British Columbia. We are fortunate to live in a province that offers so many opportunities to grow food in virtually every part of the province.
My riding of Cariboo-Chilcotin is no exception. We produce a variety of crops, but we are predominantly known for our cattle industry. While beef cattle are raised throughout our province, many of the 4,000-plus cattle ranches that operate in B.C. are located in the Cariboo region. B.C. ranches occupy over five million acres of private land. They also have tenure on 21.5 million acres of Crown rangeland. In fact, two-thirds of the agricultural land reserve is owned by ranchers.
Overall, the beef industry is important to the province’s economy and supports many family and community businesses. The total economic contribution of the industry is estimated at $600 million annually, and an estimated 8,700 persons are employed in the B.C. beef sector.
In the Cariboo, there are cattle ranch operations, large and small. We are talking about family operations that are passed down from one generation to another. People who work in the industry love the industry. We have highly active and vibrant 4-H clubs in the Cariboo district.
We are also innovators in the cattle industry. Under the previous B.C. Liberal government, at TRU university in Williams Lake, we launched the program where students gain the expertise to build and sustain ranching enterprises within B.C.’s ranching industry and apply that knowledge to agriculture businesses in any region. By the end of the program, students gain an understanding of ecosystem management in the last intact temperate grassland in the world. This program is highly supported by our local ranching industry and by Her Honour the Lieutenant-Governor.
As you probably are well aware, Mr. Speaker, 2017 was not a particularly good year for the cattle industry in the Cariboo. This summer’s wildfires, the worst in the history of the province, had a devastating effect.
People lost their homes and buildings, ranchers lost miles and miles of fences, and pastures used to sustain cattle through the summer and fall were all burned up, with the tragic loss of prime grazing land. Although we can expect the land to start to rebound next season, many ranchers have been struggling and will continue to. Many lost their hay crops and had to rely on the kindness of their neighbours to make it through this season.
If there is one sector in B.C.’s agricultural industry that requires the most support, I would say ranchers are the most in need of assistance right now. That is why I’m disappointed that in the budget last week, it did not specify any program or funding that would help the ranching industry through this difficult period. As a matter of fact, there was little about rural B.C. development.
For an industry that has contributed so much to the development of this province, I would hope that this government recognize the need and act accordingly. For young people interested in pursuing a career in the cattle industry, the government needs to signal some kind of support to ensure a sustainable and prosperous future for our ranchers.
R. Kahlon: I want to thank my colleague from down south for bringing forward this motion: “…that this House supports providing assistance to B.C.’s agriculture industry.”
I think that the one comment I’d just like to make regarding my colleague’s comments earlier is that the industry also involves workers. Workers are part of the industry. So I think that when we talk about raising wages for the workers, that’s good for the industry as well. When the workers are making money, it is good for the industry as well.
We’ve seen an increase in workers coming from Mexico and Jamaica, so part of supporting the industry also needs to be supporting those workers that come. I’ve seen some initiatives, for example in Kelowna, where now they’re talking about building housing in a community-based project. I think we need to do more of those things.
The agriculture industry isn’t just about the people who own the land. It’s also about people who work the land. I just want to highlight that.
I think the budget has some key things that support the agriculture industry. The ministry’s budget for ’18-19 is over $93 million. That’s $8 million more than last year to help B.C. agriculture and seafood businesses grow. In fact, next three years, it’s over $97 million. By 2021, the increased investment would be about $29 million over the next three years. That is quite a significant investment.
Back to the motion: “…providing assistance to B.C.’s agriculture industry.” Yes. You bet our side of the House supports that, and our budget reflects that. The dollars are there.
This year the Ministry of Agriculture budgeted the highest since it became separate from the FLNRO budget in 2011. The budget investment in farming-families, seafood, food producers and processors across the province will support the market of B.C. products around the world. I know the previous government did some good work on trying to get agriculture products overseas. We’re going to continue that and, in fact, try to expand that.
There are a few things in particular in the Minister of Agriculture’s mandate letter. We’ve got Buy B.C., Grow B.C. and Feed B.C. I know the Minister of Agriculture is very proud of talking about those initiatives.
A couple of things on that that I wanted to highlight. One is our hospitals and health authorities buying more local food. I know that Interior Health, I believe, buys about 25 percent from local producers, which is a start, but I think we need to expand that. How do we make that happen?
Perhaps we need to look at the menus that our hospitals are using. If we can change the menus in each of the local health authorities to adapt to what’s in season and what’s growing, I think that we can create a better incentive for local producers to provide the goods that we need. I think that instead of asking the producers to just produce what we need, we can adjust our menus. Because getting people healthy is about good, quality food. We know we produce good local food, so I see a natural partnership in that.
Part of Grow B.C. is incentives for new farmers. There are a lot of young people that want to enter farming. They want to get into farming. My family are all farmers for generations and generations. I’m probably the first generation that’s gone away from farming, but that happens. But there are lot of new families, young families that want to get into farming, so we need more programs to provide supports for young farmers to get access to land. That part is in there, so I’m pretty happy about that.
I know that there’s a piece about the Food Innovation Centre in the mandate letter of the Agriculture Minister. I think that’s critical.
In my travels, when I’ve talked to people who are involved in the sector, they would like to see a centre where they can experiment with tastes and flavours. I think that step will be critical for us to produce. The time is coming close.
I know that we’ve started a process to revitalize the ALR. I’ll have to talk about it another time.
E. Ross: Many thanks to the member for Delta South for putting forth this motion on agriculture and the importance of supporting the entire industry.
We owe a lot to our farmers. They provide our province with high-quality and nutritious food. The agriculture sector also makes a significant contribution to our provincial economy through exports. I’m glad to hear both sides of the House talking about one of the most important exports, and that’s seafood exports coming from the west coast of British Columbia.
The most successful export product of all in that regard is farmed salmon. Total seafood exports from B.C. amounted to $1.3 billion in 2016, and farmed salmon accounted for $524 million of that. As a matter of fact, three-quarters of farmed fish produced in Canada comes from B.C. In terms of B.C.’s aquaculture industry, farmed salmon accounts for 90 percent of production compared to just 9 percent of shellfish and other farm species.
Fish farms contribute $1.1 billion to the provincial economy on an annual basis, and thousands of stable jobs are created in remote communities that have traditionally higher unemployment. These jobs are distributed up and down B.C.’s coast. Aside from providing consistent employment opportunities, fish farms pay about 30 percent higher than B.C.’s median employment income.
There are about 6,700 people currently working directly in the salmon-farming industry. In the last three years alone, salmon farms created over 1,600 jobs. B.C. salmon farms also generate economic activity in other parts of the economy, because the industry depends on suppliers and lots of other service providers, including processing companies, salmon feed companies and many other specialized industry service companies.
Because the industry is located along B.C.’s coastlines, salmon farmers rely on the support and partnership of the First Nations in whose traditional territory they operate. Currently B.C. salmon farmers are partnering with coastal First Nations on 20 economic and social partnerships. This has opened up many desperately needed employment opportunities for First Nations up and down the coast.
This motion calls for support for all agricultural sectors, including aquaculture. In a period of uncertainty with respect to NAFTA and our largest trading partner south of the border, products from B.C. farms are finding their way into markets in Asia and beyond.
That’s why it’s crucial that the fish farm industry receive support from all British Columbians, including the provincial government. The fish farm industry has received mixed signals. On one hand, it seems to point to B.C.’s aquaculture industry as a threat. In the same breath, as a dispute with Alberta and the federal government continues, there are claims that there are spokespeople working in the interest of saving jobs on the coast in regard to fish farms.
I once served as a chief councillor of Haisla, and like many other First Nations, we were equally concerned with the health of wild salmon stocks. Even though there are no fish farms in the Douglas Channel in Haisla territory, we see inconsistent runs different years. The Skeena River sockeye has been declining too, again, with no fish farms in sight.
We have to ask ourselves a simple question: what is really affecting wild salmon? There are certain factors raised by scientists in the Cohen Commission and other credible reports that point to the real culprits. These include ocean warming, habitat damage and overfishing, including bycatch.
Everyone in this House wants to ensure that our wild salmon not only survive but thrive for the enjoyment of generations to come. But for this to happen, we need to focus on the real threats identified by science. In the meantime, let’s provide our support for an industry that contributes to the overall health of our provincial economy and takes the pressure off our wild stocks.
B. Ma: I’m pleased to be able to rise in support of today’s motion regarding supporting B.C.’s agriculture industry. I’d like to thank the member for Delta South for bringing up this fantastic motion and giving me the opportunity to discuss and, indeed, celebrate this important industry.
I’d like to take a little bit of a different tone than what maybe some members previous have been discussing. I think that usually when people think about agriculture, the image of massive farms, huge vineyards and orchards or giant feedlots often comes to mind. That’s probably because — at least for me as city folk and maybe some of my other city folk MLAs here — the vast majority of the produce, dairy and meat that we purchase does in fact come from these larger farms. Sometimes we forget that B.C.’s agricultural industry is actually so much more diverse than that.
I’d like to take this opportunity to talk a little bit about the smallholding farm that my partner’s mother, Christine Proulx, and her partner, Rob Hyslop, keep on 40 acres of land up in Barriere — beautiful North Thompson. The member from North Thompson is right here in the House today. For those of you who don’t know Barriere, B.C., it’s a sweet, rural town with about the same total population as my high school had. It exists about an hour north of Kamloops along the No. 5 road on the traditional territories of the Secwepemc First Nations.
They call their farm Chinook Farm, and on it they keep laying hens, heritage breed pigs, sheep and cattle. They’re extremely proud of the fact that their produce is ethically raised. The animals are tame and happy with lots of room to roam, grazing on 60 acres of land that Christine and Rob lease nearby. The animals live as they are naturally inclined. I’ve seen those animals. They are indeed very, very happy.
Also on their North Thompson farm are three dogs, four horses and two cats who live and play with the sheep. Their farm cats are about the same age as my two city cats, but they’re twice the size and about ten times as tough. Their cats actually sleep, by the way, with the sheep during the winter, outside, and they actually ride the sheep out to pasture. It is the most adorable thing. I know — skeptical looks coming from the other side. There are actually photos of their cats perched on top of these sheep riding out to pasture. They really need to put a video of this on the Internet.
It’s a registered farm since 2016. Farms their size are often called hobby farms. While they do love the farming life, it’s definitely not a hobby to them. They produce food for sale and work at it like any other business. They sell eggs, meat and honey through farm-gate sales. While they aren’t quite large enough to survive on their farm income alone, they also could not do without it, and of course, they absolutely love it. They love the physical demands of a smallholding farm and love being able to provide their community a healthy, ethical option for food.
I have to say, by the way, that working on a farm is clearly very good exercise. Christine is a very tough, strong, hard-working woman. When I first moved into my condo, Christine actually came down from Barriere to help my partner and me move in. We had a lot of used, solid furniture to move. At that time, I was 30 years old and she was 61 years old, and at one point she actually said to me: “Oh, Bowinn, leave those for me. Those are too heavy. I’ll take care of it. I don’t want you to injure yourself.” So really quite, quite fit. But I digress.
I guess my point here is that for those of us who are unfamiliar with the agriculture industry in B.C. — myself included; I don’t have a lot of experience in it — we sometimes forget that B.C. is absolutely peppered with these small and medium-sized farms that form part of the fabric of our agricultural industry. Grow B.C., Buy B.C., Feed B.C. — those programs aren’t just about the big guys. It’s also about encouraging people to buy local, feed local, grow local. This helps all of our local farmers and ranchers, from our most profitable businesses all the way down to those just getting going.
I’m very happy that our government is supporting the agricultural industry. I look forward to opportunities to continue to grow B.C., buy B.C. and feed B.C., and I look forward also to hearing the remaining statements from members.
P. Milobar: It’s purely coincidental that I’m standing up after the previous speaker to speak about Kamloops–North Thompson and the great agricultural production that we do have there. I think she’s removed half of my speech, though, so I’ll have to recalibrate a little.
In Kamloops–North Thompson, we are very proud of our agricultural heritage. Kamloops has long been an agricultural hub for the various ranchers and other crops that do get grown in and around Kamloops. As far away as Williams Lake and down to the Merritt area even, people use Kamloops as a bit of a service hub, especially back before highways had been expanded.
In Kamloops’s case, some of our history, unfortunately, doesn’t still exist within agriculture. Two notable examples would be the hop farms that used to exist. Both Rainier as well as Molson Canadian had large hop farms in Kamloops. As well, we were world-renowned for our beefsteak tomatoes and our canning facilities that we had in Kamloops for canning tomatoes. We’re going back into the ’50s and the ’60s when I’m talking about this.
Unfortunately, those production sites we no longer see happening. This predates ALR. It wasn’t because of land speculation in Kamloops in the 1950s or 1960s that we saw these industries no longer be able to survive. It was because the economics of those canning facilities or those hop farms compared to production in other areas started to become, to a point where…. Even back then, they became not financially viable to continue to operate.
In the case of the hop farm, we were able to receive a large donation from Molson. In fact, that is where our B.C. Wildlife Park in Kamloops has been located ever since — as a donated piece of land from the former hop farm area.
I bring that up, though, because we do see…. Although we hear great conversations around wanting to continue to support B.C. agriculture and taking that seriously, we also see a lot of increased costs coming towards agriculture over the next little while — increases in carbon taxes, increases in wages. All of this means that agriculture gets more expensive to produce within the province.
Why that is a concern is…. Although I love going to a farmers market, and we have great organic growers in Kamloops…. A former colleague of mine on Kamloops city council has an organic farm. It’s wonderful to get that produce, but a lot of those times, those types of produce are a little more expensive than what you might see in some of the bigger chain store produce departments.
That’s a concern to me. I can totally understand that — and I have no problem at all — when people are trying to provide for their family in an affordable way, they have to access food sources as affordably as possible. Adding cost pressures that will create some upward pressure on purchasing local foods does not actually expand that. I have a concern around that.
There may be some programming in place to try to get some of the food bought and brought into hospitals. Those measures, I think, everyone can support and appreciate. However, if it’s not bought at a market value that the farmer needs to operate, either one of two things is going to have to happen. Either the health authorities need to be willing to pay a premium and see an increase in their budgets to be able to do that, or there’s going to have to be a government subsidy given back to the farmers to make sure that they’re made whole with their pricing, because they cannot just unilaterally cut their price down.
I have one daughter who went to university down in California — swimming — and I was fortunate enough to go down there all four years that she was there and drive the I-5 regularly. The I-5, literally — I mean, Highway 5 — goes through Kamloops and goes all the way up into Jasper and Edmonton and back down to Winnipeg. Technically, there’s always that move to call it the I-5 all the way through and around, but the I-5 goes all the way from Mexico right up in through British Columbia and all the way along.
The I-5, in British Columbia’s case, is a very significant corridor for agricultural competition in our province — unlike any other province out there. We have to make sure that our farmers are staying competitive, because the very real reality is that the consumers will speak with their wallets when it comes to agriculture and agricultural products.
I want to make sure that we, as an overall governmental thought process, are looking at the big picture and not just coming out with a quick couponing program and think that is going to solve all the agricultural woes in the province.
We need to have an understanding that if we keep increasing cost pressures around labour, fuel and other combustibles that farming and agriculture need, they will not be able to compete on that I-5 corridor. We will see a further flooding of, actually, produce coming from down south of us — totally counterproductive to what, I think, is trying to be the intent of increasing agriculture.
J. Brar: I’m really pleased to respond to the motion introduced by the member for Delta South, and I thank the member for the introduction of the motion.
I may talk about the poor record of the previous government on the agriculture industry later on, if time permits. I know the time is very limited. But I just want to say to people that I’m also a son of a farmer, and I have lots of friends in the farming industry in Oliver, Osoyoos, Penticton, Abbotsford, Surrey, and so on.
First, I would like to highlight the historic level of support our government has extended, in just seven short months, to the agriculture industry. Our government is fully committed to supporting and strengthening our agriculture industry. Our government is working each and every day to build a strong, sustainable economy that supports jobs in the agricultural industry, particularly in the rural area.
This government wants a better B.C. for each and every person working in the agriculture industry in our province. Agriculture is the key contributor to economic development, diversification and provincewide job creation. Our agriculture is a $14 billion industry, and that provides approximately 63,000 jobs in the province. Primary agriculture is represented by over 17,500 farms, using 2.5 million hectares of provincial land. Less than 3 percent of that land is under the ALR.
The food processing sector is the second-largest manufacturing industry in B.C. Our key commitment, during the last election campaign, for the agriculture industry includes: we will bring back the Buy B.C. program to make it better to support our agricultural sector; we will revitalize the land reserve and the Agricultural Land Commission for the 21st century; and we will help young farmers across the land and work with primary producers on initiatives like ensuring bee populations stay healthy and supporting fruit and nut growers.
Our government is building more opportunities for the province’s agricultural industry with a three-pronged approach: through Grow B.C., Feed B.C. and Buy B.C. Buy B.C. will offer a recognizable brand on local products and help B.C. food to expand their sales in the province. Feed B.C. will help increase the use of B.C. food in hospitals and other government facilities. Grow B.C. will focus on policies and programs that support farmers and help B.C. producers expand local food production as well as supporting young British Columbians who want to farm.
Together, the programs will encourage new growers, increased production and higher consumption of B.C. food products today and for future generations. This program is an important part of our commitment to create good jobs across the province. We want to get British Columbians excited about the products that are being grown and produced in our province and celebrate the success of B.C.’s agricultural industry.
It’s about time to get the buy-B.C. conversation going and give consumers a simple way to support local products grown, harvested and made by their fellow British Columbians here right in our province.
When our B.C. food producers succeed, we all succeed. A healthy and thriving agricultural industry is critical in creating jobs and growing our economy, specifically in rural British Columbia.
I would like to conclude…. I know the member said at the beginning, made one comment, that we did not do full consultation when we talked about the minimum wage. I just want to point out that we had a Fair Wages Commission, which went through the province, to every community of the province, to consult the people of British Columbia. People were also asked to make presentations on line. So it’s false to say that we did not consult the people about minimum wage.
D. Davies: I’d like to, first of all, start by thanking my colleague from Delta South for bringing forward this motion on supporting our agricultural industry in this province. I’m going to be focusing a lot of my comments today on the agricultural industry in my region of Peace River.
Before I start, it is worth noting that in British Columbia, we owe a great deal, of course — and I think all of us in this House can agree on that — to our agricultural industry. It contributes to food security across our province simply because we all benefit from highly productive farms that feed our province. Beyond that, the B.C. agriculture industry is continuing to see record-breaking numbers across the entire sector.
For the fourth straight year in a row, B.C.’s agrifood and seafood sectors are some of the most diverse in Canada, producing over 200 agricultural commodities and 100 seafood species. All combined, agriculture accounts for $13 billion in sales every year in British Columbia, $3.5 billion of which are exports. We’re also talking about almost 63,000 jobs that employ British Columbians here in this province in the agricultural industry, and many of these good people are located in my own region of Peace River North.
While many think of the energy sector when they think about Peace River North, it is a fact that our Peace River region has over 30 percent of the farmland in British Columbia. We have close to 2.5 million acres in production.
The Peace region is, indeed, the largest agricultural region in British Columbia. Our region is home to 1,800 farms that produce over $100 million annually. While residents in the south might assume that most production is done in the Fraser Valley or the Interior or Vancouver Island, in fact, 90 percent of the grain grown in B.C. is grown in my region and 95 percent of all canola is also grown in the Peace.
However, this does come with some great challenges. Currently we cannot move our grain to market. There are over 20,000 tonnes of grain right now stuck in grain elevators in my region alone, and I know that the issue isn’t much better in Peace River South.
This issue is due to not being able to get rail cars from CN. In fact, the North Pine Farmers Institute was promised 16 rail cars a week, and they have only had just one, one rail car, since January 1. Unfortunately, it does sound like the rail cars are being prioritized to move oil. Maybe we should look at a different way to move oil — let’s say, pipelines or something.
Anyway, this government must work with CN, must work with our federal government partners and must work with the B.C. Grain Producers to get this grain moving to market. As I said, 1,400 tonnes a week is not moving to market, and the elevator operators are paid to move product through these grain elevators. That means no money is being paid to the elevator operators, threatening jobs. As well, the farmers are not getting paid with much-needed cash flow as they move into this very busy season — as well as providing food for their own families.
You might be surprised to learn, though, that the Peace region is also a prime area for producing exceptional quality grass seeds. As one of Canada’s most northern farming regions, we benefit from long daylight hours during the summer. This allows for the production of crops that require a high number of degree days. We produce traditional prairie crops, such as wheat, oat, barley and canola.
The Peace region is also a big livestock producer. We’re home to traditional livestock, such as cattle, sheep, goats and horses, but we’re also home to some of the largest bison herds in British Columbia. As well, we produce llama, alpaca and wild boar.
Perhaps one of the sweetest things — pun intended — is our honey production. Our long summer days and plentiful forage in the region are ideal for beekeepers. We in the Peace produce as much as three times more honey than anywhere else in the province per hive. In fact, the Peace region accounts for 30 percent of all the honey crop, and of course, perhaps sweeter than anything — again, pun intended — Peace honey is well renowned for its exceptional flavour.
I know that the hon. member from Prince George–Peace River is also well known for his honey production. I hope that he does feel the sting of completion this year — full of puns today, folks — when the Peace region honey is complete in their product.
In conclusion, the next time that we think and talk about agriculture in British Columbia, make sure that we don’t overlook the incredible opportunities, the incredible agricultural community in Peace River.
R. Singh: I’m really honoured to speak on this motion, as we are extremely lucky to have such a productive agricultural sector in this province with a diverse area of produce grown and sold and exported across B.C. I’m really glad that our government understands that.
Budget 2018 invests heavily in farms and farming families by providing the agriculture industry with over $93 million earmarked for agricultural and seafood business growth in the 2018-2019 fiscal year. This is the highest it has been since 2011, representing an additional $29 million in funding over the next two years.
The government is also taking a three-pronged approach to support and revitalize our agricultural sector through Grow B.C., Feed B.C. and Buy B.C. As has been mentioned by previous members, Grow B.C. will be providing start-up loans and other supports for young farmers interested in entering the field, helping to support fruit and nut growers and expand local food producers and processors. This is an essential part of promoting food security in our province.
Feed B.C. will focus on increasing the amount of B.C.-grown and -processed foods in government-run institutions, such as hospitals and schools, which will help to stimulate the agricultural economy and put more money into the hands of local farms and farming families.
Buy B.C. will re-establish a strong and easily recognizable Buy B.C. brand, which will help consumers throughout the province to make informed decisions about the food they buy and where it comes from. We will also support an industry-led marketing campaign to emphasize the importance of buying local B.C.-produced end products.
Our government has also committed to revitalizing the agricultural land reserve and Agricultural Land Commission, to bring them into the 21st century. This is in opposition to the way the previous government removed protection from 90 percent of the ALR in 2014 without properly consulting farmers, a move that was fairly opposed by the B.C. Agriculture Council.
[Mr. Speaker in the chair.]
It is also important to mention the impact of the wildfires that swept through the province in 2017, displacing thousands of people and levelling hundreds of acres of productive land. In September, our government, in concert with the government of Canada, announced a $20 million AgriRecovery program to help affected B.C. farmers get back on their feet. In December, our government additionally announced the AgriStability enhancement program, to help producers who were hit especially hard during the wildfires.
In closing, I just want to say that this government realizes the importance of the B.C. agricultural industry. We are investing in B.C. farmers and farming families in order to build a stable and more sustainable British Columbia.
D. Ashton: It gives me great pleasure to support this motion regarding B.C. agriculture. It even gives me greater pleasure to stand here today in this wonderful House representing my riding from Penticton to Peachland, a riding rich in farms, vineyards and wineries, a shining example of B.C.’s agricultural industry.
Unfortunately, as of late, the agriculture business in my riding, and the wine industry specifically, has been struggling. Why is that? Because of the government’s decision to treat a $2.8 billion industry as a political pawn in a spat with the Alberta government. Instead of standing up for the hard-working growers, bottlers and distributors of wine in this province, they government chose to let them suffer for a blatant miscalculation on the part of their party and the Minister of Environment.
Thankfully, the hon. Premier blinked. He knew the rest of the country was watching, and he backed down. The Premier of Alberta then lifted the boycott on B.C. wines. I would like to commend the Premier on backing down and finally, after three weeks, owning up to the administration’s mistakes in referring this matter to the courts. He knows he has no leg to stand on, but leaving it to the courts was enough to lift the bottle-fermented blockade.
Tongue-in-cheek, perhaps they’ll name a bottle of wine after our Premier, Premier’s Pinot Noir, because we all know how red his cheeks can get in QP. Although with that famous, self-admitted Irish temper, a Temprano, an Italian wine, might be more apt. Also, it’s a full-bodied wine, for sure — heavy on the tannins, tart. However, you will get a bouquet of humble pie on the nose. Decant it long enough, and you may get a subtle hint of regret.
What really matters most is that this boycott has been lifted. Finally, some stability in the industry. Finally, the crates stuck in the wine war limbo are on their way to Alberta again. Finally, B.C. wineries have the unanimous support of this House.
But it’s not all roses, or should I say rosé. The wine industry has taken a serious hit this month. Visitors to the B.C. wineries were cancelled. Vineyard tours were scrapped. Tens of millions of dollars of wine sat on pallets in storerooms waiting to be shipped. Weeks of Albertans purchasing our wines never happened. Weeks of revenue vanished. Who would have ever known that it would take place in a province as wonderful as B.C.?
Wineries have been hurt since day one. How did the government let this drag on for so long? The B.C. wine industry contributes $2.8 billion to the economy, supports over 300 wineries and employs over 12,000 people across this province. If the government can’t be counted on to defend a nearly $3 billion industry, what can it be counted on to defend? If the government can’t be counted on to defend 12,000 workers, what can they be counted on to defend? I wish I had an answer.
When my colleague, the member for Kelowna–Lake Country, stood up in this House to defend the B.C. wineries, do you know what the Minister of Jobs had to say?
I say this, sir, with the utmost of respect. It is not out of disrespect for you or your ministry but out of frustration for the appearance of lack of support.
He accused the member from Kelowna of siding with Alberta. That’s right. Standing up for wineries, like Stella, in my colleague’s riding, a major supplier to a downtown Edmonton hotel that had hundreds of bottles stuck in the wine war limbo…. That is apparently siding up with Alberta. Or how about the godfather of the B.C. wine industry, whose new winery has a major contract with the Calgary Flames? How did the government help him?
When I stood up in this House to defend wineries like Dirty Laundry Vineyard in Summerland, which has 45 percent of its visitors come from Alberta, was I standing up and defending Albertans? Absolutely not. I was here defending the people of the area that I represent and the 12,000-plus employees that work in the wine industry.
I’m standing up for small business. To get hit by a new government’s double taxation…. I will be accused of standing with who? If I rise in the House in support of the small mom-and-pop stores, with 15 employees, that run in my riding and have to choose laying off workers or raising prices, who am I accused of standing with?
Today I stand in this House, and I make it abundantly clear. I support this agriculture industry. I was so glad to see it supported here unanimously. I just want to say that I’m an incredible supporter of B.C. vineyards. I support B.C. growers, B.C. harvesters, the viticulture and technicians, the B.C. bottlers, the barrel makers, the cellar hands, the tour guides, the sommeliers, the truckers that move the wine and, especially, all of the wine owners that own the wineries.
This is an incredible opportunity for all of us to rise to the importance of agriculture in B.C., and the first hint of it that I saw was a unanimous decision in this House, of support.
With that, noting the hour, I will quit my whining, and I will ask to adjourn the motions for debate.
D. Ashton moved adjournment of debate.
Motion approved.
Hon. S. Robinson moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 this afternoon.
The House adjourned at 11:53 a.m.
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