Third Session, 41st Parliament (2018)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Monday, April 23, 2018
Afternoon Sitting
Issue No. 122
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
MONDAY, APRIL 23, 2018
The House met at 1:35 p.m.
[Mr. Speaker in the chair.]
Routine Business
Introductions by Members
Hon. K. Conroy: I’m really pleased today to welcome some very special guests to the Legislature — 55 administrative professionals who work for the Ministry of Children and Family Development. They come from across the province, from as far north as Fort Nelson, west as Prince Rupert and east as Cranbrook, as well as throughout the Island and the Lower Mainland.
Administrative staff at the Ministry of Children and Family are known for their professionalism, care and devotion to the children, youth and families who walk through their office doors. They’re often the first point of contact — a warm and friendly face that greets them by name. One youth said to me that he always knew he was going to be okay when he heard that voice on the end of the phone when he was calling.
Then there are also those that are working here in the ministry’s office, in the provincial office in Victoria, that are particularly known for their organizational skills, ensuring that executives and other staff are fully supported in their professional needs.
I’m not going to introduce them all, because there are 55 of them. But please join me in welcoming all of our colleagues from the Ministry of Children and Family to the gallery.
M. Stilwell: Sometimes random encounters in life can turn into great connections. It was in 2009, when I was in L.A. for a race, when I went to pick up my car rental that had not yet been returned. I had to wait for it. In walked a man — who returned the car late, I will say. We struck up a conversation, and we found many things in common.
Many people will know my friend Danny Woodburn best from the iconic show Seinfeld, where he played Kramer’s buddy Mickey Abbott. But not only is Danny an actor and a comedian; he’s an activist for the disability rights movement.
He sits on the Screen Actors Guild performers with disabilities committee and sees the great importance of portraying positive images of people with disabilities on screen. Involved in the American Association of People with Disabilities, Actors for Autism and the Little People’s Research Fund, he has been recognized for the change of attitudes and societal perceptions of not only people with dwarfism but all people with disabilities — all this from a guy who originally just wanted to be a veterinarian.
Danny is in town filming a movie, so it was a great opportunity for us to get together to talk about disability policy and possible links for us to continue to break down barriers and create a more inclusive society for all. He’s here today with his wife, Amy, who is also a writer and a comedian. She shared her french fries with me this afternoon, so she’s my new best friend.
I would like the House to please make them both feel very welcome.
D. Routley: I’d like the House to help me welcome a gentleman from Illinois. He was born in Delavan, Wisconsin. He’s a dual Canadian and American citizen. Tom Trott has visited us here in B.C. because after a 30-year career in law — and currently an adjunct professor of law at the University of Illinois and the University of Chicago as well — he’s come to help us deal with the issues of mental health and addiction.
His idea is a jail diversion program that would occur before a person is booked or arrested. Most jail diversion programs happen after a charge so the person receives a record regardless of the outcome. Mr. Trott is very concerned about the well-being of people who are challenged in this way.
I’m very thankful that he would take the time to fly all the way here from Illinois just to meet with the Minister of Mental Health and Addictions — and on such a special day. With the farewell to the Lieutenant-Governor, he was treated to a special helping of B.C. politics, pomp and ceremony.
Tom Trott, thank you very much for coming.
Tributes
DOUG EASTWOOD
J. Thornthwaite: I have sad news to pass on to the House. A very good friend to many here in the precinct, Doug Eastwood, died this weekend, tragically. He was a lifelong Liberal and known to many of us for his work with the Attorney General, the member currently for Prince George–Valemount. He was her special assistant.
Everybody that knew Doug had very, very fine thoughts about him. He always had a smile on his face, always wanted to live life well. He was an accomplished lawyer, a QC, and an accomplished volunteer with the LGBTQ community as well as the recovery community. He will be sorely missed by people in this House. I just wish everybody to wish all of the prayers and hope to his family at this difficult time.
Hon. D. Eby: I would just like to join my colleague and, on this side of the House, recognize the contributions of Mr. Eastwood and his tragic, sudden and unexpected death.
Certainly, our thoughts are with his family and friends. Everyone who had the opportunity to work with him in the Ministry of Attorney General had nothing but wonderful things to say about him. He will be very deeply missed in a professional and a personal sense.
Introductions by Members
M. Polak: On that sombre note, I rise to introduce to this House my…. I was going to say long-serving constituency assistant, but I suppose I will say long-suffering constituency assistant. Cathy Gibbs is joining us today. Cathy has been a constituency assistant since long before I was an MLA. She was a constituency assistant going back to Lynn Stephens’s time as the MLA for Langley.
Not only is she my constituency assistant, but over the years, we’ve become very, very dear friends. She is visiting with us today. Would the House please make her very welcome.
D. Ashton: There are four individuals that I would like to recognize today from Shaw Communications that are in the gallery. They do a really wonderful job of filming Voice of B.C., which is a show, as we all know, broadcast throughout British Columbia and readily taken up in many households. They also do an incredible job filming our constituency reports. If we do make a mistake, they can fix it in the mix. I would just like to welcome the four individuals from Shaw Communications here today.
Hon. K. Conroy: I also have two people from my constituency that I’d like to introduce today, Sean Allen and Daina Morrison. They are also friends of our son Ben. I wanted to congratulate them, because, as I believe, they are proof that Victoria is truly the city of love. While they were here this weekend, Sean got down on one knee. It was actually at Mystic Beach, in the Premier’s constituency. He got down on one knee and popped the question, and Daina said yes. So please join me in not only welcoming them to the Legislature but on congratulating them on their engagement.
N. Letnick: After hospitals and doctors, the third-biggest expense item in Canadian health care is drugs. Today we have three great people that have come to talk to members of this House about some of the issues surrounding PharmaCare: Louise Gillis, president of the Canadian Council of the Blind; Gail Attarra, chair of the national biologics and biosimilars working group and president of the Gastrointestinal Society; and Dr. Ganive Bhinder, executive director of the Better PharmaCare Coalition. Would the House please make them feel very welcome.
Hon. D. Eby: We have some special guests up in the gallery here today. Pat Danforth, who is the chair of the Disability Alliance B.C., Jane Dyson, a member of the Order of British Columbia and the executive director of the Disability Alliance B.C., and Giovanna Bonifice, who is the managing director of the Canadian Association of Occupational Therapists, are all here to join us today. Please help me make them feel very welcome.
Hon. L. Popham: I’ve got a few introductions today. First off, I would like to introduce one of my staff members from the Ministry of Agriculture and her two kids who are visiting. Georgina Hodson is here with her daughter Presley, who is 11 years old and attends Bayside Middle School in Brentwood Bay, and her son, who is nine years old, named Paul. He attends Deep Cove Elementary School in North Saanich. Georgina’s kids are here to learn about all the great work we’re doing in the Ministry of Agriculture. I want to let them know how grateful I am that they lend me their mom and she can be part of our team. Welcome them to the chamber, please.
I’d also like to talk about the guests that are here from Shaw. Now, I don’t know if anybody knows this, but our guests from Shaw have never, ever attended question period before in all their years of covering us. I just want to mention who they are: 14-year Shaw TV legislative bureau volunteer for the ever-popular Constituency Report, who lives in Saanich South, Linda Veroote and Voice of B.C. and Constituency Report volunteers Ben Kerr and Thalia Wilson. They are accompanied by Shaw TV producer Jason House and the Victoria bureau chief, Kristina Verruyt. Kristina has worked arm in arm with Vaughn Palmer on the Voice of B.C. for many years. We wish Kristina and her colleagues well in the future.
Lastly, I want to thank everyone who participated in B.C. Book Day today. This was the fifth B.C. Book Day that we’ve had in the Legislature. Thank you to the Speaker for allowing us to do it once more. It was a joint project by myself and the Deputy Speaker, the MLA for Richmond South Centre. It was a great success. I have seen everyone carrying their bags of books out of the hall.
Hon. J. Horgan: Just in the nick of time, joining us in the gallery are 38 Grade 11 students from Belmont high school, in my constituency of Langford–Juan de Fuca. They’re joined by Cathy Davis, their teacher. They’re here to watch our democracy in action. I have to confess, in the foyer before we began the proceedings this afternoon, I did play it up a little bit. I’m expecting the best game we can get from the opposition and the Third Party, and we’ll do our level best to respond in kind. Would the House please make the kids from Belmont very, very welcome.
Hon. K. Chen: Today we will also have a group of grade 5 students, staff and teachers from John Knox Christian School, from Burnaby-Lougheed, visiting the Legislature. They’ll probably join us during the middle of question period. I hope they will enjoy their visit, and I ask the House to please make them feel very welcome.
J. Tegart: I’d like to acknowledge family and friends of the Lieutenant-Governor, Judith Guichon. I’m honoured that she lives in my riding. They’re in the precinct today, and I hope everyone will wish them well and also wish Judith well.
A. Wilkinson: An episode in recent days has called attention to the fact that we must recognize the role of citizen engagement in our democracy. We all know that our democracies are built on maximum citizen engagement, which occurs at election time to select the people in this room and in Ottawa. It occurs through government consultations, which, of course, are ongoing whenever an issue arises. It occurs through the media and the contact that the people in the gallery make with our citizens and that they make with the media.
In the modern world, social media is a very effective vehicle for people to be involved in democracy. Protest is a long-standing and essential component of this and sometimes takes the form of civil disobedience. This is a long-standing provision, and components of it are protected by section 2 of the Charter of Rights and Freedoms of Canada.
There is a democratic space for these protests. We, of course, recognize the front lawn of this building and of the House of Commons in Ottawa as protected spaces for that democratic expression. Marches through our streets are often enabled and protected by the police, because that’s their role in a democratic society.
Of course, protests inside this chamber are discouraged to the point of being prohibited, because this chamber provides a safe space for discourse between the elected representatives.
Are there limits on protest? Yes, there are. The destruction of property is not permissible, criminal code offences are not permissible and, certainly, violation of court orders is not permissible. When the news came out that the Premier’s home had been subject to a protest, this crossed a line.
We all recognize that there’s a need for that kind of activity in the right kind of space, but any kind of attempt at intimidation or harassment of an elected official — and especially not of someone who leads government — is simply inappropriate, impermissible, and I think it’s up to all of us to condemn that kind of activity. The Premier and his family are entitled to the quiet enjoyment of their home, where he must contemplate his next step and prepare for question period. [Applause.]
Introduction and
First Reading of Bills
BILL 20 — INSURANCE (VEHICLE)
AMENDMENT ACT,
2018
Hon. D. Eby presented a message from Her Honour the Lieutenant-Governor: a bill intituled Insurance (Vehicle) Amendment Act, 2018.
Hon. D. Eby: I move the bill be introduced and read a first time now.
I’m pleased to introduce the Insurance (Vehicle) Amendment Act, 2018. This bill will make a number of changes to the act to help keep vehicle insurance rates affordable for B.C. drivers, to enable motor vehicle insurance rates to be more fair and to bring ICBC to a more financially sustainable position and end its state of financial crisis.
The bill also provides for a framework to support enhanced care for people injured in vehicle accidents so that they get the help they need to recover from their injuries. In keeping with our February 6, 2018, announcement on ICBC vehicle insurance product changes, this bill will introduce provisions limiting the amount a claimant can recover as damages for pain and suffering from a minor injury and provide a legal definition for a minor injury.
The bill will allow for an expanded list of health care providers that ICBC must pay as accident benefits and allow government to set the amounts that can be recovered for those services. To ensure that the amounts recoverable are fair, the minister responsible will be required to initiate a review of the amounts payable for the provision of health care as accident benefits every five years and to table the results with the Legislative Assembly.
The bill will also provide that certain medical and wage-loss benefits received by a claimant must be deducted from a damage award in a vehicle claim and that a person who pays or provides that medical or wage benefit cannot recover from the at-fault driver or their insurer.
As well, the bill will allow for an increased limit for medical and rehabilitation costs, to be retroactive to January 1, 2018, and provide the appropriate regulation-making authorities for future product and rate premium design changes, including the announced enhancements to accident benefits.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. D. Eby: I move the bill be placed on the orders of day for second reading at the next sitting of the House after today.
Bill 20, Insurance (Vehicle) Amendment Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
BILL 22 — CIVIL RESOLUTION
TRIBUNAL AMENDMENT ACT,
2018
Hon. D. Eby presented a message from Her Honour the Lieutenant-Governor: a bill intituled Civil Resolution Tribunal Amendment Act, 2018.
Hon. D. Eby: I move that the bill be introduced and read a first time now.
I’m pleased to introduce the Civil Resolution Tribunal Amendment Act, 2018. This bill grants the civil resolution tribunal jurisdiction over claims arising out of the use and operation of a motor vehicle. The jurisdiction will be limited to a prescribed monetary amount, which will be up to $50,000. The bill also grants the tribunal exclusive jurisdiction over whether an accident claim involves a minor injury and over accident benefit entitlements.
The bill makes further amendments to the Civil Resolution Tribunal Act in order to improve on the processes in place since the tribunal began resolving strata property disputes in June of 2016. In addition, the proposed legislation expands the jurisdiction of the tribunal to include disputes related to societies as well as housing and community service cooperative associations. The proposed legislation is based on the existing legislative framework for strata property and small claim disputes.
Currently cooperative associations and non-profit societies have to resolve their disputes in the B.C. Supreme Court, which can be very costly. These organizations, which typically operate with limited budgets, will gain better access to justice by accessing the dispute resolution and adjudication services of the civil resolution tribunal.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. D. Eby: I move the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill 22, Civil Resolution Tribunal Amendment Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
BILL 21 — CLASS PROCEEDINGS
AMENDMENT ACT,
2018
Hon. D. Eby presented a message from Her Honour the Lieutenant-Governor: a bill intituled Class Proceedings Amendment Act, 2018.
Hon. D. Eby: I move that the bill be introduced and read a first time now.
I’m pleased to introduce the Class Proceedings Amendment Act, 2018. This bill amends the Class Proceedings Act to expressly provide for multi-jurisdictional class proceedings — that is, class proceedings that involve both residents and non-residents of British Columbia. The provisions are based on the Uniform Law Conference of Canada’s Uniform Class Proceedings Amendment Act of 2006.
The bill includes amendments that will provide consistency and clarity relating to the process for the certification of multi-jurisdictional class proceedings. Provisions of the bill will require that representative plaintiffs in similar class proceedings commenced elsewhere in Canada be given notice of an application for certification and an opportunity to make submissions at the certification hearing.
The bill also sets out objectives and relevant factors to be considered by the court in determining whether to certify a multi-jurisdictional class proceeding as well as authority for orders of the court relating to these proceedings.
To provide a more effective way for as many potential claimants to be included as class members, the bill will change the class proceedings framework as it relates to persons who do not reside in the province. Rather than non-residents having to take steps to opt in to a class proceeding in British Columbia, they will be included as a class member unless they choose to opt out.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. D. Eby: I move the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill 21, Class Proceedings Amendment Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
BILL 24 — MISCELLANEOUS STATUTES
AMENDMENT ACT
(No. 2), 2018
Hon. D. Eby presented a message from Her Honour the Lieutenant-Governor: a bill intituled Miscellaneous Statutes Amendment Act (No. 2), 2018.
Hon. D. Eby: I move that the bill be introduced read a first time now.
I’m pleased to introduce Bill 24, the Miscellaneous Statutes Amendment Act (No. 2), 2018. This bill amends the following statutes: the College and Institute Act, the Infants Act, the Liquor Control and Licensing Act, the Property Law Act, the Public Guardian and Trustee Act, the Procurement Services Act, the Business Corporations Act, the Societies Act, the Riparian Areas Protection Act, the Capital Region Water Supply and Sooke Hills Protection Act, the Islands Trust Act, the Library Act, the Local Government Act, the Cultus Lake Park Act and the Vancouver Charter. This bill also makes consequential amendments to a number of other statutes.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
Hon. D. Eby: I move the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill 24, Miscellaneous Statutes Amendment Act (No. 2), 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
BILL M213 — LOCAL ELECTION
CAMPAIGN FINANCING
AMENDMENT
ACT, 2018
T. Stone presented a bill intituled Local Election Campaign Financing Amendment Act, 2018.
T. Stone: I move that a bill intituled Local Election Campaign Financing Amendment Act, 2018, of which notice has been given in my name on the order paper, be introduced and now read for the first time.
The purpose of this bill is very simple: to close a loophole. Last year we supported legislation to take big money out of politics. The spirit was clear — cap political contributions to the amount of $1,200 and only allow contributions from individual British Columbians — but inconsistent wording has opened a back door at the municipal level.
The Local Election Campaign Financing Act refers to “campaign contribution,” which was already defined in the act as “funds exclusively for campaign use.” This confusion has caused Elections B.C. to recently determine that contributions from unions and corporations will continue to be allowed and that there are no contribution limits on money raised for operations at the municipal level, basically, for anything that’s not a direct campaign expense.
This bill would remove this confusion and bring the Local Election Campaign Financing Act in line with the provincial campaign finance legislation.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
T. Stone: I move that the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill M213, Local Election Campaign Financing Amendment Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
Statements
(Standing Order 25B)
ADMINISTRATIVE PROFESSIONALS
M. Elmore: As the Minister for Children and Family Development mentioned in her introductions, 55 administrative professionals from the Ministry of Children and Family Development are with us in the gallery today. They’ve joined us because this week, in workplaces across Canada and around the world, we celebrate administrative professionals week, with Wednesday, April 25, designated as Administrative Professionals Day.
This is a wonderful opportunity to show our appreciation and respect for administrative professionals and to highlight the significant contributions they make each and every day to the public service, non-profit agencies and businesses throughout the province. We value our administrative professionals for their organizational skills, attention to detail, dependability, professionalism, creativity and so much more.
As MLAs and ministers, we know very well how essential admin professionals are to our day-to-day work. They handle tasks from scheduling to communication to correspondence to organizing our offices. Without them, our lives would be extremely difficult.
While we have designated this week for showing appreciation for the administrative professionals in our lives, I know that you will all join with me in acknowledging that these essential people deserve recognition and praise throughout the entire year.
SIKH COMMUNITY IN SQUAMISH AREA
J. Sturdy: As part of Sikh Heritage Month, I would like to acknowledge the contributions the Sikh community continues to make to Squamish and the entire constituency of West Vancouver–Sea to Sky — and has for over a century. You only have to attend the annual Squamish Sikh Festival celebrations held each year in June to see how vibrant and significant the Sikh community is in the region. The annual celebration honours the martyrdom of the Sikh leader Guru Arjan Dev ji. It includes teachings and a street parade from the temple to Squamish downtown’s main street and culminates in a glorious sharing of food with the whole community.
Sikhs first arrived in Squamish in the 1890s. The mills were hiring, and the young men could easily find work in Squamish and at the mill on Green Lake, in Whistler. In the late 1950s, the rail line and the first version of the Sea to Sky Highway finally connected Britannia and Squamish with West Vancouver and the Lower Mainland by land, rather than only by water. Increasingly, Sikh families began to settle in Squamish, attracted by jobs in forestry, mining and the railway. The community settled around the waterfront area in what is now downtown Squamish.
The Sikh community diversified and continued to play an important role in the development and growth of Squamish. Even as automation reduced job opportunities in mills, Sikhs ventured into commercial and retail businesses, including a pharmacy, a hotel, a hardware store, transportation companies, construction and other retail. Many families, even today, also send many workers daily into Whistler, working especially in the hospitality industry. They bring a strong work ethic and dedication to community in their approach as business owners and their involvement in the local community and local government.
The Sikh society was incorporated in 1980, and the temple was opened in downtown Squamish in 1983. It remains the hub of the Sikh community today.
I’d like to thank the Sikh community of Squamish for their contributions to the strength and the diversity of the Sea to Sky.
MISSION MUNICIPAL FOREST
AND ZAJAC
RANCH
B. D’Eith: For 60 years, the district of Mission forestry department has managed the Mission tree farm licence 26, also known as the Mission municipal forest. Now, this forest area is approximately 10,000 hectares, about 12 percent owned by municipality and 88 percent provincial Crown land. All of the profits from the forestry go back into the municipalities to support programs and amenities.
The municipal forest is located in the northern part of Mission, generally surrounding the Steelhead area, and north of Stave Falls, along the western shore of the Stave reservoir.
Yesterday, on Earth Day, Dave Heyes, the manager of forestry business, and Bob O’Neal, director of forestry, hosted a special event celebrating the 60th anniversary of the municipal forest. Councillor Carol Hamilton and I were honoured to plant the 4.5 millionth tree in the reforestation program, a program that will ensure that the forest will continue to provide for another 60 years and beyond.
The forest industry works in tandem with the public and the public use of the park and Stave Lake. The municipal forest trails provide hikers with incredible outdoor experiences.
Also, within the forest, is Zajac Ranch for Children. This is really a jewel within the forest. In the summer months, Zajac Ranch provides camps for children, youth and adults with chronic, life-threatening or debilitating conditions. I toured this incredible facility with Mel Zajac, the visionary of the camp, who is now in his 80s and as excited and active as ever, expanding and improving this amazing facility.
We’re very lucky to have such a wonderful asset in my riding, providing forestry revenues, jobs, tourism, hiking, camping, boating, all working together in balance.
ORGAN DONATION AND LOGAN BOULET
G. Kyllo: It’s my pleasure to rise today on the occasion of National Organ and Tissue Donation Awareness Week. Right now more than 600 British Columbians are in need of an organ donation. Registering as an organ donor can help to save the life of someone who is in desperate need of help. It’s estimated that a single donor can save up to eight lives.
While more than 90 percent of British Columbians support organ donation, sadly, only 20 percent of British Columbians are registered. One organization that is making an enormous impact on increasing organ donation in our province is the Kidney Foundation of Canada, B.C. and Yukon division. Their advocacy work and awareness campaigns for organ donation are truly commendable.
Now, the recent tragic bus crash of the Humboldt Broncos has brought increased attention to the life-saving value of organ donation. Humboldt Broncos defenceman Logan Boulet, at the young age of 21, was wise beyond his years and had taken the selfless initiative to register as an organ donor and, in his death, gave the gift of life, helping to save the lives of six others. Logan’s heroic action gives voice to his selfless and benevolent nature.
Anyone may register, regardless of their medical condition, and there is no age limit — young or old. In fact, the oldest organ donor in Canada was 93 years old. Decisions to register and donate organs to others is a powerful life-saving gift, and I encourage members of this House and all British Columbians to take action and register with B.C. Transplant at register.transplant.bc.ca.
Heroes aren’t born. Like Logan Boulet, heroes are registered.
PROTECTIONS FOR TENANTS
AND NORTH VANCOUVER
CASE
B. Ma: I rise today to talk about a number of tenants who have come to my office in recent months. I’d like to talk about Cheryl, who is a long-time resident of North Vancouver. She’s been living there for 17 years. Actually, she’s been living in North Vancouver for many decades, but her current home is a 600-square-foot unit in North Vancouver where she’s been residing for 17 years.
About two years ago, the rental building was sold to a new landlord. The new landlord went around to every tenant in the building and told them that they all had to sign new fixed-term leases. Now, she was on a month-to-month lease, and she knew her rights. She said: “No, I will stick to my month-to-month lease.” Some of her other neighbours did sign new fixed-term leases.
One year later the landlord went around, room to room, and demanded that those on a fixed-term lease accept a 20 percent increase on their rent, or else they would be vacated because they were using a fixed-term lease and vacate clause. Cheryl, however, was on month-to-month, and she declined to accept a 15 percent increase. Three months later she received an arbitration notice. The landlord had applied to increase her rent by 43 percent, using a provision at the time that was known as the geographic market rental increase provision.
She went to battle in arbitration, and with the help of our office and some advocates, she won. This was about two years of the landlord attempting to increase her rent. She has been successful in fighting back each time. Then, three months later, she received another notice. They are now attempting to evict her so that they can turn the unit into a caretaker unit.
I guess I tell this story because sometimes there are landlords out there who are trying very hard to get rid of low-income renters. I would like the opportunity to thank the House today. Every single one of these stories that we have told has actually been addressed somehow with the partnership and cooperation of everyone in this House. I want to thank them all very much.
VOLUNTEERISM BY LOIS BOYCE
L. Reid: I rise today to pay tribute to the late Lois Carson Boyce, who has been affectionately referred to as the Rolls Royce of volunteerism, not only in our community of Richmond but nationally as well.
Lois passed away on February 27 at the age of 99. She was one of Canada’s most decorated volunteers, dedicating her time, energy and talents towards a number of causes, most notably environmental, social and seniors issues.
She amassed an incredible volume of awards, certificates and photos with dignitaries thanking her for her tireless work. Among her many achievements was the prestigious Golden Jubilee Medal awarded to her by the Governor General of Canada. Locally, Lois earned the Richmond Chamber of Commerce Community Service Award in 1998 as well as the Richmond Volunteers Are Stars Award in 2006 and an Ethel Tibbits award in 2010 honouring her contributions as a Richmond pioneer and a long-serving member of the community.
Her most recent work in our community was around local seniors care initiatives, including Richmond City Centre Community Association and the Safe Communities alliance. Because of her, residents of Richmond Centre now have a community centre and much more.
Family, friends, dignitaries and many members of the community gathered this past Saturday to celebrate Lois’s life, her kindness and her spirit of giving. Lois Carson Boyce was a huge force in Richmond, and she will be missed.
Rest in peace, to our iconic Islander. Her legacy lives on in the many projects and lives she touched in her 99 years.
Oral Questions
IMPACT OF EMPLOYER HEALTH TAX
ON SCHOOL
DISTRICTS
A. Wilkinson: I’m sure the incoming government figured out very quickly that school boards are required to balance their budgets. This is an essential component of our government system. Of course, they’re required to present their budgets to government seven days from now, on April 30.
The question obviously arises. On February 28, the Premier stood and said that groups such as government agencies and non-profits would be kept whole from the employers health tax. This represents a major cost to school districts, with no alternative revenue source. The question is simple. To the Premier, when does he intend to keep his promise?
Hon. C. James: Thank you to the member, the Leader of the Opposition, for the question. I’m very proud of the fact that on this side of the House, unlike the other side of the House, we made a decision that we will eliminate medical services premiums in 2020 for all British Columbians.
We are also ensuring that we are fiscally responsible. We are bringing in resources for health care through an employers health tax. We are in discussions with groups and organizations. The implementation does not begin until January 1, 2019. Those discussions are going very well.
Mr. Speaker: The Leader of the Official Opposition on a supplemental.
A. Wilkinson: It appears that the Minister of Finance’s standard lines have not changed since February 28. So we have to ask: with seven days left before the Surrey school district has to present a balanced budget, how will they make up their $21 million deficit they’re incurring because of the employers health tax?
We have a Premier who held out that this is not going to be a problem. He reassured all the school districts that they’d be okay. And lo and behold, broken promise yet again.
The obvious question — and not to ride on the Finance Minister’s coat-tails — is: will he keep his word, tell the Surrey school district they need not run a deficit and provide for the students for which he campaigned in the election, rather than break his word yet again?
Hon. C. James: I will remind the member, as the Surrey school board knows and as all school boards and others who are paying medical services premiums know, they are saving 50 percent as of January 1 this year because we reduced medical services premiums by 50 percent. We also recognize that there will be some costs on January 1, 2019. We are in discussions. Those discussions are going well.
Mr. Speaker: The Leader of the Official Opposition on a second supplemental.
A. Wilkinson: Well, here we have more dodging and weaving from the Finance Minister. The Surrey school board reports it’s paying an extra, incremental $7 million next year because of the employers health tax. The Finance Minister says: “Oh, don’t worry about it. They’re going to have their MSP payments reduced.” Well, she seems to have forgotten already that next year is the double-up year, with both MSP premiums and the employers health tax, a double hit to school districts.
These school districts all around the province need answers in the next four business days, not rhetoric from the Finance Minister. Are they running deficits or not?
The question goes directly to the Premier. Will he instruct his Finance Minister to make school districts whole so they can get on with the business of teaching children, not fighting with the Finance Ministry over their budgets?
Hon. C. James: Well, to hear the other side stand up and talk about educating children is unbelievable in this House. That side, the old government, did everything they could to ensure that children didn’t have smaller classes, that students didn’t get the support they needed.
We have invested record investments in education because we believe in public education in this province. The other side may have trouble understanding what it’s like to work with others, but we are working with others. We are working with school boards. We are having those discussions. We will have a resolution. We will make school boards able to continue the kind of good work that they’re doing in educating students around this province.
SURREY SCHOOL DISTRICT PORTABLE USE
S. Cadieux: Well, how about another broken promise — portables? The Premier and his Education Minister both made a clear promise to eliminate portables in Surrey in four years. It’s their promise, not mine. The Premier promised: “We have to have a total removal of these portables over the course of the next four years. We need to start reducing them by half in the first two years.”
My question is to the Education Minister. Is he on track to reduce portables by half next year?
Hon. R. Fleming: I thank the member for her question. It comes just a few days after Surrey education leaders were right here in Victoria to meet on this very issue. Of course, this member will know the progress that our government has made in such a short period of time, just since Labour Day. In fact, 90 days ago she tweeted about it and said, “Glad to see the government moving forward on these much-needed projects,” including a new 655-space elementary school in her constituency.
I would direct her to read an article in her own newspaper. The headline is: “Surrey Trustee Praises…Portable Meeting with B.C. Minister of Education.” I would welcome the member, as she has given this government praise, where her government has failed before, on creating thousands of new spaces now in a short period of time in Surrey, to come to the next announcement, when our government has an opportunity to make one.
Mr. Speaker: The member for Surrey South on a supplemental.
S. Cadieux: I will celebrate the elimination of portables if this government does meet its promise. But to this date, they have not done so. The NDP promise was to eliminate portables and to be halfway done in two years. We’re one year in, and it’s a broken promise. Families in Surrey are getting the opposite of what was promised. In fact, they’re getting 11 additional portables this year.
Again to the minister, how many portables will he reduce next year?
Hon. R. Fleming: I hate to correct the member. We are not one year in, but we are a strong nine months in. We’re just getting started. We’ve announced hundreds of new spaces, thousands more to come.
I find it curious that the opposition members, who have failed to look after the students and families of Surrey for so many years and who’ve disappointed Surrey families year after year while the number of portables doubled under their watch, now show such impatience for our government, when we’ve already announced hundreds of millions of dollars of capital funding to deal with their backlog. We’re acquiring sites — because that government didn’t even buy the land to build the schools on — and we’re funding schools and new additions in Surrey.
That’s what our government is doing. That’s what the school board has praised our government for doing. That’s what the mayor of Surrey has said that she expresses satisfaction for — for finally being engaged by a government on this joint initiative. That’s what parent groups are saying in Surrey as well. I’ll listen to those stakeholders any day, before I take lessons from a group that systematically failed families in Surrey for years.
FISHING INDUSTRY AND
INDIVIDUAL TRANSFERABLE
QUOTAS
A. Olsen: We have the opportunity to build one of the most innovative and successful 21st-century economies of any jurisdiction in the world, yet some would have us chase Kinder Morgan to the bottom of the barrel. Aside from the risk it poses to our coastline, the Kinder Morgan pipeline does almost nothing to build sustainable, well-paying jobs in our province.
Frankly, our province would be better off addressing the challenges facing other industries, such as the fisheries industry. Once-vibrant coastal communities that hummed with activity are increasingly shuttered. The jobs have moved out of these communities. In many cases, they’ve moved right out of our country.
In 1985, the coastal fisheries employed 20,000 people in B.C. By 2015, that had fallen to 5,000. At the heart of this issue is the system of the individual transferable quota that many in this industry have said privatized our natural resource. The quotas are now more valuable than the fish.
My question is for the Minister of Agriculture. The maritime provinces have engaged the federal government in a process to transition away from the individual transferable quotas. When will B.C. be doing the same?
Hon. L. Popham: Thank you to the member for the question. I know the member understands that the Department of Fisheries and Oceans is responsible for maintaining and sustaining sustainable harvests on behalf of British Columbians, as well as Canada. We are glad to be hearing about the federal changes to the Fisheries Act. We’re also doing our job, making sure that B.C. is represented at the table. We’ve been working hard at that.
As well, we sponsored the Fisheries for Communities Gathering this year. We sponsored it for $40,000. This was a place where people from all of our communities throughout our coast could get together and talk about what they want when they think about B.C. fisheries. We also sponsored a B.C. Young Fishermen’s Gathering, which brought together 50 young fishers from across the province and talked about their future in the fisheries industry.
This is an investment in our future. It’s very, very important that we represent B.C.’s view at the federal table, and we’ve been doing that.
Mr. Speaker: Saanich North and the Islands on a supplemental.
A. Olsen: The vision of a 21st-century economy cannot just be urban-centric. We need to talk about the opportunities we’ve had in this province to create good, well-paying employment that harnesses our resources and the natural innovation of British Columbians. The future for the natural resource industry and countless communities right across our province lies in adding value, not just simply exporting raw product. We’re currently doing the opposite.
Last week at the wild salmon forum I hosted in Vancouver, I was told that a large Chinese company recently purchased over $50 million worth of these individual transferable quotas in British Columbia. The fish are harvested here, sent to Asia for processing and packaging and then shipped back to us. This must change. The minister said that we trust DFO to manage a sustainable fishery. The people that I met with have got serious questions about that. DFO is missing in action on the west coast. We need our provincial government to be a champion for this industry locally.
My question, again, is for the Minister of Agriculture. There is an absence of federal leadership. Will this government stand up for British Columbia by facilitating an independent review of our quota licensing system?
Hon. L. Popham: Again, thanks for the question. I know the member is passionate about this issue, and I can assure the member that so are we.
Our ministry has provided insight and specific west coast perspective to the discussion around the proposed changes to the Fisheries Act. We have to keep up the pressure from our side, and we are doing that.
The Ecotrust report that came out of the conference in January…. This report had action items specific for the federal Minister of Fisheries and Oceans. Some of these were specifically around how social, economic and cultural objectives are to be achieved in the Pacific region fisheries. We have to be at the table representing the communities that want strong fisheries. We’re doing that. I think that the member also knows that as we navigate and try and work with the federal government, it’s very important to recognize that they hold most of the cards. What our job is, is to represent B.C. at that table.
SURREY SCHOOL DISTRICT PORTABLE USE
M. Hunt: The Premier came to Surrey and made a promise. “We have to have a total removal of portables” in Surrey. “We need to start by reducing them by half in the first two years.” On October 19 last year, the minister said: “I believe that we can substantially complete that timeline.”
To the minister, he must have analyzed the numbers required to meet this promise. How many portables does he plan to eliminate next year? Will he give us a number?
Hon. R. Fleming: I think that if this side is going to ask questions about Surrey portables, they have to acknowledge their own absolute failure and the mess they’ve left this government with, to begin with.
They more than doubled the number of portables in that school district under their watch. They failed to acquire sites in a fast-growing community. They took all the tax dollars from hard-working moms and dads in Surrey and didn’t put back the community infrastructure by building schools in Surrey.
That’s what this side of the House is committed to doing. We’ve already announced 1,600 spaces. That member ought to know. He was there for some of the announcements. And there’s more to come. We’re working very closely with the school district. The chair of the board was just in the newspaper last week commending this side of the House for an entirely different approach from what they had for 16 years.
So I say to that member and other members opposite in Surrey — and there are fewer of them today, admittedly: come work with this side of the House. We’re building a plan in Surrey that’s actually building schools, actually building the community infrastructure that fast-growing Surrey needs. That’s what we want to do. That’s what we’re doing, and that’s what the school district has said makes us a valuable partner, where they were missing in action.
Mr. Speaker: The member for Surrey-Cloverdale on a supplemental.
M. Hunt: Well, it’s yet another NDP broken promise. The vice-chair of school district 36, Surrey, has confirmed that Surrey’s portable bill is set to double this year, including $1.2 million for 11 new portables. They’re adding portables in Surrey, not eliminating them.
Again, to the minister, will he cut the number of portables in half next year or not?
Hon. R. Fleming: Well, again, I’d like the other side to take some credit where credit is due. Sixty new portables in Surrey came because that side fought teachers for 15 years, and lo and behold, Surrey had to order another 60 portables to support smaller class sizes. They failed them again.
We’re trying to tow away the damage that they did as quickly as possible. I say to that member: have some patience. After all, for 16 years, he said nothing while portables doubled.
We’ve announced thousands of spaces — more announcements to come. The member is always welcome to attend them. The member should also look at what this side of the House is doing differently on the operating side — 59 million new dollars each year into the Surrey district, savings of $7.2 million this year, MSP savings in the millions of dollars this year. Those are the new resources going into the Surrey school district to help improve classroom learning resources for kids in his area.
IMPACT OF EMPLOYER HEALTH TAX
ON SCHOOL
DISTRICTS
S. Bond: Well, school districts must balance their budget by April 30. But for weeks, this Education Minister has refused to clarify if school boards will be exempt from the costs of the new NDP-imposed employer health tax as the Premier promised. No exemption from this minister means funding gaps and service cuts.
To the minister, school districts want and deserve an answer. Will they be exempt or not?
Hon. C. James: I would remind the member, again, since the other side seems to conveniently leave it out, that there is a 50 percent savings to all school districts and other employers this year — 50 percent as of January 1. Next year there will be, again, another 50 percent savings on MSP premiums, and in 2020, we will be eliminating MSP premiums. We are continuing to work with and to listen to not-for-profits, to school boards about what they need going forward. That’s why the implementation doesn’t start until January 1. We’re having those discussions, and we’ll continue to have those discussions.
Mr. Speaker: Member, before beginning, if I might remind you that it would be helpful and important for you to direct your question through the Chair.
S. Bond: Through the Chair, this is what the Surrey board of education vice-chair, Terry Allen, told the media about the new employer health tax. It reflects the concerns of school boards across the province. “We were hoping, and I think all districts were hoping, for some relief for that, but that’s not going to happen, I don’t think. Maybe it will. You never know. But there’s been no relief, to this point.”
School districts across the province, including Surrey, need to finalize their budgets in one week. They need an answer from this minister whether or not they will be forced to make service cuts because they were blindsided by the surprise employers health tax.
To the minister, a pretty simple question. Will he listen to the concerns of school boards across British Columbia, with budget deadlines looming, and exempt them from the employers health tax? Yes or no?
Hon. C. James: Well, I can let the other side know that we will not do what they did. We will not double MSP premiums and make school boards have to pay that. Whether we’re talking about MSP premiums, whether we’re talking about hydro rates, whether we’re talking about computer systems and tech, that side, the old government, forced school boards to have to cut programs and services and supports for kids to be able to pay for their mess that they put onto school boards.
We will continue to listen to school boards. It’s why we set the implementation date for January 1, 2019, so we could ensure a smooth implementation. Those discussions are going well and will continue.
B. Stewart: The Premier promised school districts would be kept whole, but school district 23 has reported a projected budget shortfall, citing the additional burden of the NDP’s new and higher employer health tax. “It’s $1.9 million for us that we weren’t planning on having to pay for,” says Eileen Sadlowski, district secretary-treasurer.
To the Minister of Education, will he be providing the new funding for the Central Okanagan school district, as the Premier promised, or will they be forced to cut staff?
Hon. C. James: Thank you to the member for the question. As I said earlier, we are continuing to listen and work with school boards, unlike the other side who didn’t work with school boards, who just downloaded costs without any discussion. We, in fact, have increased our investments to education. We are having discussions now. The Kelowna board, as with other boards, is saving 50 percent on their MSP premiums this year.
Mr. Speaker: Kelowna West on a supplemental.
B. Stewart: The Minister of Education decided to spend $40,000 recently to tour Europe at a time when he was forcing school districts into deficits to pay for the new NDP employer health tax. School district 23 has said they have to cut four staff.
Again to the minister, will school districts be kept whole? Or will they be forced to make cuts?
Hon. R. Fleming: To that member, I would congratulate him for getting back into the House. A lot of things have happened since he disappeared for a little while. One of which is that his government, which fought teachers to its dying breath, actually lost in the Supreme Court, and this year we have 3,700 new teachers teaching our kids in British Columbia, including in the district in his area. That’s good policy.
I’m also very happy to say that this government has been very active making long-overdue capital announcements to remove portables in Kelowna, in a fast-growing district. That’s what this government has been able to accomplish in a few short months, where his government failed.
In regards to funding, here’s the difference for the members to contemplate. This year, this full fiscal year, there’s $550 million more in operating funds going to school districts to be able to manage their affairs. We’ve returned savings where that government downloaded tens of millions of dollars of costs. We’ve said: “Keep your broadband service fees this year” — $20 million.
Overages on teacher pension plans in the tens of millions of dollars are being kept by school districts, with one provision: that they be invested into kids and classrooms and that they strengthen our education system after so many years of downloading and ripping funding out by the previous side. That’s what districts are doing.
T. Stone: One thing is clear. The minister had no problem finding the money for his recent trip to Europe. But school districts across this province are still waiting to find out if this minister is going to fulfil the Premier’s promises, and they need to know by the end of this month.
My question to the Minister of Education is this: why was there money in the budget, in his budget, for his European adventure, but there is no money in the budget to enable school districts to cover the costs of the NDP’s new health payroll tax?
Hon. R. Fleming: I guess the question the other side should ask themselves is: why was there no money…? Why was there no concern for thousands of kids in British Columbia and thousands of families who couldn’t get into French immersion education in British Columbia at a time when demand for it grew by 35 percent?
It’s because they failed them. They didn’t put the money into training French-language teachers. Our government is trying to meet the aspirations of B.C. families to have bilingual kids as a product of graduating from our school system. That’s what we’re working on, and we’re proud of it.
We’ve hired 3,700 teachers this year, the largest influx of new teaching talent into our school system in generations. We need to hire more. That side of the House, when they were in charge, failed to invest in teacher training opportunities. We’re doing that for B.C. students who are in B.C. universities. We are hiring out of province and the rest of Canada. Yes, we are hiring internationally to bring French-language teachers here to British Columbia to meet the aspirations that B.C. families and kids have to learn French in British Columbia.
Mr. Speaker: The member for Kamloops–South Thompson on a supplemental.
T. Stone: I say this as a father and as a member of this Legislature. I’m very proud to have been part of a former government that presided over an education system that resulted in our kids having amongst the best education outcomes in the entire world.
Interjections.
Mr. Speaker: Members. Members, please. We shall hear the question.
T. Stone: Mr. Speaker, on the same day that the minister flew to stop 1 of his European adventure, Paris, SD 23 reported a projected budget shortfall. The district specifically notes that the new NDP employer health tax is not being covered. Included in cuts in their plan is to eliminate four full-time positions.
Again to the minister, why is a trip to Europe a higher priority than the students of SD 23?
Hon. R. Fleming: I wish the member opposite would pay a little closer attention to some of the issues that arise, even in his own constituency. Such great news last week — that, for years, after 16 years of almost no investment in his own district, this government is investing potentially tens of millions of dollars into getting rid of portables in Kamloops. That’s the change; that’s the difference.
Here’s the situation. Districts are actually struggling to spend the money this government is providing them to hire the new teachers that they are able to hire, that they’re entitled to hire. That’s why we’re making additional efforts to recruit teachers, to train more teachers in B.C., to hire from out of province and to recruit internationally in B.C.
We see the teacher shortage that we have today. It’s caused, in large part, by the conduct of that side of the House for so long in the education system. These are challenges, but they’re also opportunities for B.C. to make our education system even stronger.
M. Stilwell: The Campbell River school board is worried about the new NDP employer health tax, and their MLA has been silent. While the minister was in Europe, trustee John Kerr had this to say: “The board will be required to cut services in the amount of an average close to $256,268 over each of the next three years…. The tax will be a de facto budget cut for school district 72 and every other board of education in the province.”
My question to the minister is: will he provide new money to keep school district 72 whole, or was there only enough money set aside for his European adventure?
Hon. R. Fleming: As I reminded the House earlier, what’s different about this year than a year and a half ago under the previous government is about $550 million in additional investments into kids and classrooms. What’s different about this year than, say, a couple of years ago is that we’re hiring 3,700 teachers when they fired thousands of teachers in British Columbia. That’s the difference.
What’s different in Campbell River and in other school districts is that instead of downloading costs, we’re returning savings in the tens of millions of dollars to school districts, and they are in a healthy fiscal position.
We’ve heard from secretary-treasurers. We’ve heard from board chairs around B.C. They’ve looked at the approach that that government had, which was to rip out hundreds of millions of dollars in resources in the school system, and they’ve looked at ours, which is an approach to invest and work closely with our education partners. They prefer ours, not surprisingly.
[End of question period.]
Orders of the Day
Hon. M. Farnworth: In this chamber, I call the debate on the estimates of the Ministry of Municipal Affairs and Housing. In Committee A, I call continued debate on the estimates of the Ministry of Children and Families.
Committee of Supply
ESTIMATES: MINISTRY OF
MUNICIPAL AFFAIRS AND
HOUSING
The House in Committee of Supply (Section B); L. Reid in the chair.
The committee met at 2:48 p.m.
On Vote 36: ministry operations, $196,910,000.
Hon. S. Robinson: I know that we’re getting started, and I look forward to hearing questions from the other side. I just want to say a few words, if I might.
I’m very fortunate to have with me a group of experienced senior staff who are key to the Ministry of Municipal Affairs and Housing work. I’m joined by the deputy minister, Jacqueline Dawes, and assistant deputy ministers. I’ve got Greg Steves with housing and Tara Faganello with local government. Later we’ll be joined by Kevin Volk with community and legislative services. I also have Tracy Campbell, our executive financial officer and ADM of management services.
We have a strong leadership and a great team at Municipal Affairs and Housing, and I want to thank them for making progress on the issues that matter to British Columbians. We’re doing things like improving access to safe, functional housing that people can afford to buy or rent. We’re improving policies and services for many landlords and renters in the province and working to support better transportation options for people in Metro Vancouver by supporting the Mayors Council’s ten-year vision.
We’re also working with British Columbia’s 189 local governments to help them to help their residents and the communities so that they can all thrive. I’d also like to recognize the leadership of our Crown agency. We’re joined here today by the B.C. Housing chief executive officer, Shayne Ramsay, one of the busiest people in the province these days.
We also are supportive of the B.C. Assessment Authority’s president and chief executive officer, Jason Grant, and Technical Safety B.C.’s president and chief executive officer, Catherine Roome.
I know that our time is valuable here. I want us to use it well, but I’d like to also give a few brief highlights of what we’re doing.
Improving housing affordability and housing availability is one of the most important mandates British Columbians have given our government. After listening to British Columbians and after consultation with experts in the housing sector, experts on both the supply and the demand side, we released Budget 2018. It includes significant new investments that are grounded in a new 30-point housing plan for British Columbians.
Our plan has started with taking action to stabilize the housing market, to curb demand and to provide better protection and better options for renters. While the Ministry of Finance takes action to curb demand, my ministry is focused on rental policies and on increasing the overall housing supply.
Our plan includes support for affordable rental homes for people with low and middle incomes, new rental homes for seniors so they can stay in their communities, more homes for Indigenous peoples, new housing for women and children fleeing violence, new spaces of student housing and new homes with 24-7 support for people who are homeless or at risk of homelessness.
We will also make a significant investment, more than $1 billion over ten years, to preserve and protect our existing social housing for people already living in those homes. Altogether, we will be investing more than $7 billion over the next decade. This will be the largest investment in housing in the history of British Columbia.
You’ve heard me, certainly, here in this chamber and elsewhere, talk about the importance of building strong partnerships. That’s why we launched a new housing hub at B.C. Housing — in order to bring everyone together to facilitate the building of homes that people can afford. The housing hub is already developing partnerships to find, use or redevelop available land in communities hardest hit by the housing crisis.
The new hub underlines the importance of partnerships and the coordinating of effort that it takes to address housing affordability and availability. The hub will be actively pursuing partners, whether they are non-profits, co-ops, local governments, landowners, First Nations, investors, faith communities. These people and these groups are looking to partner with us, with their government. The hub will be tasked with trying new things, bringing together innovative partnerships to build the homes British Columbians need — homes to rent and homes to own.
With rental vacancy so low in many parts of province, we need to make sure that renters have the secure housing they deserve. Budget 2018 includes new investments to expand eligibility and increase benefits for our rental assistance programs for low-income seniors and working families. This will help families and seniors stay in their homes and in their communities.
These enhancements will benefit 35,000 households, including 3,200 new eligible families and seniors. Effective September 2018, on average, seniors will receive an extra $930 per year, and the increase for families will be about $800 a year.
We’ve also taken steps this spring to further strengthen protection for renters and for manufactured home owners. These actions build on the steps we’ve already taken, including closing what is known as the fixed-term-lease loophole and eliminating the geographic rent clause.
While addressing the housing crisis is a major priority of this ministry, we have a number of other important roles. I’m pleased to continue to support approximately 5,000 not-for-profits in delivering programs through B.C., through our community gaming grant program, and to work with the federal government on much-needed infrastructure funding around the province.
As the Minister Responsible for TransLink, we are very much focused on investing in transit and transportation to make life better for residents, for businesses and for visitors. We support the mayors’ vision and our funding will be ready to support them as projects take flight and start liberating people from the current congestion.
Before we get into questions, there are a number of other people I’d like to thank in my office. I’d like to acknowledge my senior ministerial assistant, Craig Ashbourne; ministerial assistant, Daniela Gardea; executive assistant, Matt Djonlic; administrative coordinator, Christine White; and administrative assistant Lisa Grant. These are the people that keep life rolling, keep me busy and help us, together, deliver for British Columbians.
T. Stone: Thanks to the minister for that introduction. I would also like to acknowledge and thank the staff that, I know full well, are instrumental in helping the minister prepare and do all that really heavy lifting back in their respective offices to bring to life the government’s priorities, which is a lot about the investments that people really need in this province.
I just wanted to let the minister know that I will be leading the questioning on the municipal affairs side of the equation. I’ve got a few initial questions there. Then we’ll be turning it over to the member for Vancouver–False Creek, who is the official opposition Housing critic. He will lead our questioning on the housing side of the equation. I may jump in, as will other select members of the opposition, with respect to housing.
That will likely take us through the majority, if not all of, today. We’ll reserve TransLink and a few other bits and pieces for tomorrow as well.
Without further ado. First off, I’m wondering, with respect to ministry organization…. We talked in estimates last fall about some things that had been brought into the ministry and some things that were taken out and so forth. The first question would be: have there been any further changes to the ministry structure, the ministry organization, this year? If so, could the minister please detail that for us?
Related to that, I’m wondering if the minister could just provide a little bit of detail to this House with respect to the expenditures, insofar as operating expenditures being up about $15 million overall. By my read of it, that looks like the housing-related components of her ministry’s budget are up about $32 million. Ministry operations is down about $47 million. I’m just wondering if the minister could just provide some detail as to what accounts for the increases on the housing budget side of the equation and the decrease on the ministry operations side of budget and, again, if there have been any significant changes to the ministry structure and responsibilities.
Hon. S. Robinson: There have been no additional reorganizations, no additional structural changes.
I have a response around the budget changes. There have been changes to the ministry’s budget since the last update. In particular, they include the following: an increase of $31.89 million for the housing program’s operating budget and an increase of $54.474 million for the housing programs capital budget. These increases are offset by a decrease of $47.629 million to ministry operations.
The decrease is mainly due to timing of grants and federal recoveries under the clean water and wastewater fund and the New Building Canada fund. There’s been a $50 million decrease for the clean water and wastewater fund and a $6 million decrease for the New Building Canada fund. Provincial funding for these two programs was accelerated last fiscal.
There’s also an increase in federal recoveries for the CWWF, which is the clean water and waste water, of $25.172 million, and in the New Building Canada fund, of $4 million.
These reductions are offset by the following increases: $2.1 million for housing initiatives within the local government division, an increase of $209,000 for BCGEU wage increases per the collective agreement, an increase of $171,000 to reflect administration of the federal clean water and wastewater program. And there have been some miscellaneous administrative adjustments of $61,000. That includes benefit rate adjustments — that kind of stuff.
Just to wrap it all up. The ministry saw an overall budget increase of $38.731 million. So a decrease of $47.629 million for ministry operations, an increase of $31.89 million for housing operating dollars and an increase of $57.474 million for housing capital dollars.
T. Stone: Thank you for that, Minister.
Could the minister provide a little bit more detail as to what accounts for the issue related to the timing of grants? I can think of a number of scenarios, but I would appreciate if the minister could just kind of go through those categories again and indicate what exactly accounts for the timing being different than what was originally planned.
Hon. S. Robinson: I think it’s really important to get on the record that the commitments are the same. There’s been no change in the commitments. It’s really about cash flow, about when projects actually get the funding. I just want to note, for example, that when we had this terrible fire — the wildfires of this summer — it meant that projects got delayed. Or if there’s a particularly rough winter and they can’t actually start construction in the time frame that they thought they would be able to start, there’s oftentimes a delay on some of these major projects. So this is just really a cash flow situation.
T. Stone: Okay. Well, thank you for that, Minister. I’m wondering if we could shift gears. I just have a couple of questions with respect to the community capital fund.
This was a community capital infrastructure fund that was outlined in the minister’s mandate letter, I believe. I’m just wondering if the minister could indicate to this House if this fund actually has been created. If it has been, can the minister outline how many dollars have been dedicated to the fund? And who will be eligible for the fund once the application process is understood by those who can apply?
Hon. S. Robinson: I just wanted to clarify that the member was referring to the bullet in my mandate letter that directs me to partner with the local governments and First Nations to develop a community capital infrastructure fund, rather than the community capital fund, because it’s slightly different. I’m assuming it’s the first.
I want to assure the member and the House that work is well underway with that. There’s an opportunity to join with the federal government to make sure that there is a significant fund available for communities to access.
We all know how important it is for local governments, in terms of making their communities livable and rich, to have opportunities to create sports facilities, playgrounds, local community centres, arts centres and such. That work is being undertaken right now to put this together.
T. Stone: Can the minister just indicate some timelines here? When will the application process be up and running? When does she anticipate receiving applications? How will the applications be adjudicated? Who will be involved in that? I’m assuming it’s internal to her ministry, but potentially, there may be some third parties involved as well. I’d appreciate some detail around there.
Again, what would those ideal projects that the minister has in mind actually look like, that would represent really good value for the taxpayers’ money in the context of this new program?
Hon. S. Robinson: The work is being undertaken as we speak. What I can tell the member is that the application process will be a merit-based application process, so it will be adjudicated by professional public servants. We’re working on putting together what the ideal project is, and that work is just being undertaken and reviewed right now.
T. Stone: I’m wondering if the minister could advise the House if her ministry is contemplating any boundary changes for local governments or local jurisdictions around the province, for communities that want to extend their boundaries for any particular reason.
I know that when I was a part of the former government, it was an often requested subject of great debate inside the government. So I’m wondering if the minister could just advise me, and the House, if there are any active considerations being given to boundary changes for any municipal or regional district jurisdictions in the province.
Hon. S. Robinson: The member is correct. This boundary change request does come up. Of course, it comes from the community themselves. The way the process works is that it actually comes to staff first, who take a look and ask questions in talks with the staff. They take a look at community support and stakeholder support, and they explore what’s going on.
I can assure the member that none of these boundary changes are before me as minister. So I don’t have a comment on anything that’s before me.
T. Stone: Shifting gears, I’d like to ask a couple of questions about the employers health tax and the impact of that on municipalities. I certainly know that the details relating to the tax itself would not fall under the purview of the minister but rather of the Minister of Finance. But I do think it’s a very relevant line of questioning here in Municipal Affairs estimates, because I can say, with a great deal of conviction, that there is no issue I’m hearing more about, as the critic for Municipal Affairs, than municipalities and regional districts that are concerned about the impact of the employer health tax on their operations.
I’m wondering if the minister could advise this House if her ministry has done any analysis or any modelling with local government to determine what the potential fiscal impacts could be on local government of this new tax, moving forward.
Hon. S. Robinson: I know that the member fully appreciates that local governments are an autonomous level of government that make choices about how they’re going to be spending the revenue that they get. I was just checking with staff around if we have received any formal complaints, concerns, issues. They haven’t. I have heard from some who are concerned, and I have heard others who say that it’s a wash. It’s not affecting them. So the response that I’ve been hearing is quite varied.
T. Stone: Well, no quibble from me. Local government is an autonomous level of government, for the most part, but they are often on the receiving end of decisions that are made by the provincial government that can have positive or negative consequences, particularly when it comes to their budgets.
The employer health tax. I know, in the case of my community in Kamloops, the finance director in the city accounts and the mayor believe that they’re staring down the barrel of a $1 million hit to their bottom line, including the impact on policing costs.
I would like to ask the minister again if her ministry has done any analysis or any work with perhaps the UBCM or other local governments to understand what the budget impacts will be, recognizing that it would be very different depending on the size of the municipality. I get that. But has there been any work done to try and understand what the impacts will be on local government budgets as the result of a decision taken by the provincial government?
Hon. S. Robinson: I’d also like to remind the member that when they doubled MSP premiums, the local governments, I’m sure, had to make adjustments accordingly, because that’s what local governments do. There are always various changes that happen in the landscape, and they make choices about how they’re going to adjust.
I also want to point out that I think it’s really important that we all remember that this is a significant savings to families, and families live in all of our communities. So as communities and local governments make decisions about how to best serve their constituents, families now have $1,800 in their pockets that they didn’t have before.
T. Stone: Well, the proof will be in the pudding on that one. The city of Kamloops and other municipalities that I’m talking to are trying to determine what the fiscal impact will be of this new tax on their budgets, and they will all make different decisions as to how to cope with the change. But I tell you. A $1 million change or a $1 million impact to the city of Kamloops’ budget is a pretty significant property tax increase that the people of Kamloops, the homeowners in Kamloops, are going to face.
It’s also resulting in…. It’ll put pressure on the cost of goods. I think it’s…. It might be easy for the minister to kind of gloss over the impacts here. But I’m just trying to reflect what I’m hearing from the municipalities that are contacting me.
Let me ask this, then. Was there any consultation on the part of the minister and her ministry with local government, whether it’s through the UBCM or directly with local governments, as part of the government’s thought process and ultimate decision to proceed with an employer health tax?
Again, for a city the size of Kamloops, it’s going to hit their bottom line to the tune of $1 million more per year. Once the MSP is fully phased out and there’s just the employer health tax, which is not till 2020, it’s a $1 million hit to their bottom line.
Was there any consultation, and could the minister detail what that consultation looked like with respect to the UBCM and other specific local governments?
Hon. S. Robinson: I want to reflect back to what the member had said earlier when he first started these remarks and just remind him that it was the Minister of Finance that brought forward the budget. Really, I’m very proud of this budget in terms of what it does, how it affects families and the impact it has on putting more money in people’s pockets, because there’s certainly been an affordability concern for families.
As part of that, I recognize that local governments will need to make decisions going forward to address the needs of their constituents. They have the information going forward in order to do that.
T. Stone: I’m wondering if the minister could provide me with any thoughts that she has — I’ve read some of her public comments — with respect to the loopholes in the local election campaign financing, which have clearly arisen.
We know that every member of this House supported getting big money out of politics, corporate and union donations, and lowering the maximum contribution amount for individuals only to $1,200 per individual per year, both on the provincial election campaign side as well as the local election side of the equation.
Yet we now learn that Elections B.C. — in their interpretation of the amendments to the legislation, as amended from last fall — has determined that, in fact, the way the legislation is worded, there is a loophole that means elector organizations are able to continue to raise corporate and union donations and continue to accept any contribution amount as long as those dollars are used for operational purposes and not campaign purposes.
Certainly, in the opposition, we feel this violates the spirit of the amendments, the spirit of the legislation as amended from last fall, which was why I saw fit to offer a suggested fix in the form of a private member’s bill earlier today. I’m certain that the minister will give it very careful consideration.
I’m wondering if the minister could comment on what her plans are to close this loophole so that the spirit of these legislative changes is truly honoured. We’re running out of time. There are six months before the municipal elections, and elector organizations are out there. Everybody’s confused. The government, I think, needs to provide some direction on this.
Could the minister comment as to what her plan is with respect to closing this loophole?
The Chair: The member for Nanaimo–North Cowichan seeks leave to make an introduction.
Leave granted.
Introductions by Members
D. Routley: I’d like the House to help me welcome two people that I’ve just met. We’ve done a nice tour of the building. With us today from Richmond, B.C., is Albert Adamoski. He’s a printer. He loves skiing Whistler. That’s a surprise, eh? He’s accompanied by Michaela Sal from Taiwan. She’s a housekeeper in Whistler. She loves outdoor activities. They’ve come here to visit our House, their House. Can we please all make them welcome.
Debate Continued
Hon. S. Robinson: I appreciate the member’s commitment to getting rid of big money out of our politics. It’s certainly music to my ears to hear this change in perspective and this conversion that has happened. It’s very exciting. I think we should have a little party recognizing this commitment.
This interpretive challenge that we are seeing is one my staff are taking very, very seriously. We’re committed to addressing and fixing this interpretive challenge that we have right now, and that should be coming shortly.
T. Stone: I’m just wondering if the minister could explain why the legislation was introduced with such a glaring hole in it. We did canvass this particular topic at great length in committee stage of the bill. We did go back and forth. We were provided assurances that indeed big money, corporate and union donations, would be removed from the mix as a result of these changes and that the maximum contribution would be the $1,200 per individual.
I certainly voted for that. I support that, as do members of the opposition. It was unanimous in this House. So can the minister explain why she brought forward a piece of legislation that was so obviously flawed insofar as allowing this loophole to exist?
Furthermore, when will she introduce a fix of some sort that will provide local governments and all of those British Columbians out there that are contemplating running for office, all of those elector organizations out there that are looking for some clarity on this…? When can they expect some clarity from the minister on a fix to close this loophole?
Hon. S. Robinson: Again, I want to thank the member opposite for his willingness to put the effort into a private member’s bill. Now he has this sudden interest in banning big money, and I’m really grateful that he feels that way. I’m also thankful to the elector organizations who understand the intent and have gone on record for continuing with that intent.
[R. Chouhan in the chair.]
I’m sure the member knows full well that when you are working with a piece of legislation, how it rolls out, how it plays out on the ground, sometimes doesn’t actually hit the mark. I’ve gone on record and certainly been very committed to addressing that interpretation. It’s an interpretation that we didn’t anticipate. Now that others have brought it forward in terms of how they understand what’s acceptable, we are in the process of identifying a way to make sure that that is not the case.
T. Stone: I appreciate that, Minister. It certainly is our role, as the official opposition, to hold the government accountable for the decisions that it makes and to ensure that we’re asking the right questions and the tough questions with respect to those accountabilities.
This was an important piece of legislation that was supported by everyone in the House. Again, just a very simple question to the minister, because it sounds like she’s committed to a fix. I want to, again, highlight the urgency from a timing perspective, with municipal elections on the horizon and bearing down on all of us quickly. When does the minister plan on actually coming forward with a fix to this particular loophole?
Hon. S. Robinson: I appreciate the question, and I appreciate the time pressures. Trust me; I am fully aware. But I think it’s important to tell a bit more of this story.
I want to remind all members of the House that it was a number of years ago — I want to say 2014 — when there was a task force put together by the old government to look at campaign finance and, in particular, expense limits for local governments. At the time, there was zero interest by the members opposite to include campaign contribution limits and get big money out.
I know that I brought forward a motion to see if we could include that in this task force. It was denied, which was very disappointing, because we’ve known for a long time…. British Columbians have been asking for some time to get big money out of local elections. That would have been the time, I have to say, to actually do something to get big money out. It was certainly the opportunity to have the legislation working and understanding so that you’re not in this six-month crunch.
However, that wasn’t to be, which was really unfortunate. But it seems that the members opposite have seen the light and recognize the importance of banning big money and getting it out of our election process. I’m pleased to hear that there’s still that commitment. I thought maybe it was just around the piece of legislation, but hearing that they’re still committed to that is a good thing.
Again, we heard at the UBCM in September — you know, a new minister, just three months — a commitment from the UBCM. We did move quickly, I want to say, because there’s an election coming up this coming year, and we wanted to make sure that we could get big money out.
I want to assure the member opposite that staff are working diligently to identify a fix. That should be available for all parties because they do need to know exactly what the expectations are. I can tell them right now the expectation is that big money will not be influencing our politics in this upcoming election. The fix is in the works, and we’ll have it shortly.
T. Stone: While I do appreciate the minister’s walk down memory lane on campaign finance reform and the gospel according to the minister on this, the fact of the matter is that she is the minister, and she is responsible for this piece of legislation. She was responsible for overseeing its drafting. She was responsible for ushering it through this chamber.
It contains a very significant loophole that is now causing tremendous concern and tremendous strife within local government as local politicians prepare to put their names forward for the forthcoming municipal election. What was or was not the right thing to do in 2014 or 2015 or 2001 or 1991 is not relevant to the line of questioning here today.
On behalf of all of those mayoralty, councillor, regional district and school trustee candidates out there and all those electoral organizations, I will ask one more time: could the minister confirm that this loophole will be eliminated via some sort of a fix on her part in time for the municipal elections that will be taking place later this year, in 2018?
Hon. S. Robinson: I’m pretty sure I answered this question, but I want to assure the member opposite that this interpretive challenge that we’re facing right now will be fixed, absolutely, in time for the upcoming election.
T. Stone: I’d like to ask a few questions about gaming grants. First, I’m wondering if the minister can confirm what the level of funding will be for the forthcoming fiscal year with respect to community gaming grants and whether or not that funding level is the same as last year’s. If it’s not, is it going up or is it going down?
Hon. S. Robinson: The budget for community gaming grants remains unchanged at $140 million.
T. Stone: I wonder if the minister could provide some details on the allocation of the gaming grants. My understanding is that there continue to be six intake categories: arts and culture, sport, parent advisory councils, environment, public safety, human and social services — and capital. Are those still the grant categories — one? Two, will there be any movement of funds from one category to another?
The overall amount is unchanged. I understand that. But are there any allocation changes within that overall amount? If so, could the minister please provide those details?
Hon. S. Robinson: The community gaming grants will continue to award a diverse range of grants to a variety of non-profit organizations that represent six categories: arts and culture, sport, environment, public safety, human and social services, and parent advisory councils. The capital project sector also will be available.
We’re committed to the notional allocations that the member noted, but of course, I know that he appreciates that communities and trends change over time. What’s going on over time changes. At this point, we’re not anticipating any significant shift, but staff monitor very, very closely to see what the requests are, and we try to make sure that we’re a responsive grant opportunity for communities around the province.
T. Stone: If I’m hearing correctly, the minister is not anticipating any significant changes in allocations from one application group to another as part of the overall amount. I appreciate that.
I’m wondering if capital grant requests from volunteer fire departments would be an eligible request. There are a number of volunteer fire departments that the official opposition is aware of and that have some capital needs. It would seem to me that the new capital project grant component of the gaming revenues program might be a useful area to extract some funds to meet the needs of volunteer fire departments.
I’m wondering if the minister has received any of those kinds of requests and if she has any thoughts on whether or not those kinds of requests might be considered within the overall application process.
Hon. S. Robinson: I’d like to let the member know that volunteer fire services have made application, and some have been successful. It’s case by case. They have to meet, certainly, the criteria, but that’s certainly an eligible opportunity for them.
T. Stone: To the minister, I appreciate that.
One more on the gaming revenue piece. The chief of the Tk’emlúps Indian Band, Kúkwpi7 Fred Seymour, obviously was — along with many First Nations around the province — appreciative to hear of the government’s commitment to provide gaming revenues to First Nations.
Kúkwpi7 Seymour received a letter back from the Minister of Finance on November 3, 2017. In it, it says: “As part of government’s commitment to reconciliation at this time, government is committed to working with First Nations leaders and communities on the development of a framework for a share of provincial gaming revenues. I will be working closely with my colleague the Minister of Indigenous Relations and Reconciliation, who will be leading this work.”
My question, to the Minister of Municipal Affairs, is: could she advise the House as to whether or not a share of provincial gaming revenues applies to the existing pie that is provided to existing recipients in those six allocation categories that we just talked about? Or is it the government’s intention to provide net new gaming revenues above and beyond what’s currently available for the First Nations to apply for and receive?
Hon. S. Robinson: I want to let the member know that gaming revenue and how that’s distributed is tax policy. That comes out of the Ministry of Finance, and it’s outside of the scope of the administration of the program, which is what my ministry is responsible for.
First Nations groups are certainly, if they meet the criteria, eligible to apply, along with other non-profits, in order to access the funds. Like I said earlier, the gaming revenues, overall, are part of tax policy.
T. Stone: I understand that. But it is the minister’s responsibility to those existing allocation categories and the organizations that apply for and receive funding. The minister would be able to rattle off all kinds of organizations, I’m sure, in her constituency. I have lots in mine — there are others around the province — that really rely on the gaming revenue stream that they receive each and every year.
I’m wondering if the minister could allay the concerns that some are expressing, in some of those existing organizations — that their gaming revenue fund levels are not going to be compromised when First Nations are cut into the existing pie but that rather, the intention on the government’s part is to provide net new gaming revenues to First Nations that will not come at the expense of existing recipients of community gaming grants.
Hon. S. Robinson: Once again, I want to let the member know that my ministry is responsible for the administration of the $140 million gaming grant program. We have no anticipation of having to do anything more than what we’ve been doing or changing it in any way. Again, if the member is concerned, overall, about what happens with gaming revenues and how that is distributed across government, that work happens out of the Ministry of Finance.
T. Stone: Let me ask the minister the question this way. Does she believe that the existing organizations that receive gaming revenues — and are largely, in many cases, dependent on those revenues — should be kept whole, irrespective of any other priorities of government?
Insofar as providing provincial gaming revenues to First Nations, does the minister think that those existing organizations that have come to count on these revenues — in many cases, for many years — should continue to have the confidence that those gaming revenues are going to be there for them on a go-forward basis?
Hon. S. Robinson: I don’t anticipate any changes.
T. Stone: One final question on this. In the estimates of the Ministry of Indigenous Relations and Reconciliation, I asked the minister a similar line of questioning — again trying to reflect, on the one hand, the support that I certainly have, and the opposition certainly has, towards the concept of First Nations being provided provincial gaming revenues but also balancing that off with ensuring that existing recipients of gaming revenues are to remain whole.
The minister said: “I think the idea is that it’s a share of the provincial government portion. It’s not going to be coming out of the existing funds that go out to all the good organizations and local governments that currently are there. They’re not going to be linked.”
One final question. Does the minister agree with the comments of her colleague the Minister of Indigenous Relations and Reconciliation on this matter?
Hon. S. Robinson: Yes.
S. Sullivan: In the interest of trying to get as many questions in, given the shortness of time, what I’d do is just speak for a few minutes on the context of how I’m seeing this file. I certainly respect that the minister has a weighty responsibility on this incredibly important topic of the housing crisis. We do have a real affordability crisis.
I’m going to spend a little bit on this groundbreaking study that has just been produced by the CMHC group that basically had 30 PhD master’s economists spend a year and $1½ million to get to the bottom of the issue. What is behind the rising house prices, especially in Toronto and Vancouver?
They looked at Edmonton, Calgary, Montreal, Toronto and Vancouver. They concluded that the real challenge that we have is a supply curve that is incredibly inelastic. It’s the worst supply curve in the country, possibly on the continent. The actual number is around 0.25. It means that for every escalation in price, very few new housing units are actually created. So we have a supply curve that is broken.
Now, there are two options on how to deal with this. One is to fix the supply curve, and the other is to break the demand curve, just go after and damage the demand curve as much as possible. The problem with going after the demand curve is that there are a lot of unintended consequences, and, especially, there are real challenges. Sometimes going after the demand curve can actually cause even worse supply problems.
I do have a number of people that have come to me recently to ask me…. There’s a lot of uncertainty, and one of the big problems of going after the demand curve is it injects a lot of uncertainty. Uncertainty then affects supply. The people who actually make supply pull back.
Now, the 30-point plan that I read through…. Almost all of the points deal with demand. There are a number of points that deal with supply, but it’s all government supply. In fact, there is not a single point that I can find that deals with the broken supply curve, the actual market-driven housing. Some of the points that attack the demand curve are actually risking reducing the supply and making an even worse supply curve.
For example, there doesn’t seem to be a great sense of trying to determine the different types of speculators that are in the market. There are some speculators that cause price rises, and there are other speculators that actually create housing. You’ll find, I think, most of us live in speculator-created housing. It’s called spec housing. Most British Columbians live in speculator housing, housing that has been created by speculators.
It’s very important not to attack those speculators. There are other speculators who simply create turmoil in the market and actually cause rising prices.
Rather than fixing the supply curve, I think the first effort of the government was a kind of rationing. As I tried to understand it, it was basically home rationing. We haven’t seen rationing since World War II. This was even a type of rationing where it was one home per household — I know the government has pulled back since that time — to basically punish anybody who had more than one home. This has actually created a lot of uncertainty as well and a lot of unintended consequences.
The kinds of people that I am hearing from…. Because I’m in downtown Vancouver, this is the place where people have the most…. There are homes, small condos — they’re called pied-à-terres — that are common in all global cities. Vancouver is a global city. It’s a city where we have a lot of people from all over the world who come here, who love being here.
We have…. For example, a person I’m dealing with, a Silicon Valley entrepreneur, probably spends about three or four months here in total. He’s created a business here and hires a lot of Canadians. He comes here mainly to manage and to create a lot of employment in Vancouver. He’s now called a speculator, because he has a flat in Vancouver. He will only be three or four months here. He’s also liable to the vacant house tax. So he’s wondering about why he’s trying to create employment in Vancouver in this tech sector. We’ve got a number of people who, actually, are in that situation.
Another gentleman owns a very significant property. He’s paid over $20 million in property tax since he’s owned that home. His home is actually used as one of the highlights of the film industry. When they send out their prospectuses around the world, his home is one. Because he’s not in it that often, he allows it to be rented out for film companies. It’s a heritage house. He keeps it immaculately. The film industry is worried about losing that home.
A couple retired to Bowen Island, but they sit on a major foundation’s board in Vancouver. They do a lot of volunteer work. A lot of the people on Bowen Island keep a flat in the downtown, because they can’t make their ferries. They’re now considered speculators.
Some people want a getaway home. I now know that they’re moving their purchases to Birch Bay in Washington, just to go across the border. I think one of the unintended consequences is that we’re finding British Columbians now moving across the border for their second homes and taking their consumption dollars and taking their economic consumption to the U.S., where they’re not labelled as speculators and they’re not given punitive tax bills.
A lot of people are concerned about the future of Whistler. Whistler is exempt, for some reason, from the speculation tax, but they are concerned that it won’t be long before they eventually get covered. That’s creating a lot of uncertainty there. People are not willing to make the purchase of the homes there.
We’ve got rules that seem to be balkanizing the province. Our artificial boundaries, where one property is treated one way…. A person can own a large home in Whistler, but an elderly person with a bungalow in Vancouver is being treated entirely different.
A B.C. couple lives part of the year as snowbirds. Fifty thousand British Columbians live in other parts of the south, especially, volunteering for Médecins Sans Frontières. It pushes them into the category of the empty homes tax.
There are a lot of things that I am dealing with on people coming to visit me and to express their concern. I’ll just ask the minister a couple of questions. Does she feel that there are reasons that some people, for employment, would need to have two homes? Does she accept that that’s a legitimate status that someone would have?
Hon. S. Robinson: That’s an interesting question. I think people can do whatever they want. They can have as many homes as they want.
S. Sullivan: The question is to be liable for punitive taxes. Right now, there’s, you might say, an empty homes tax. Or you could say the speculation tax would be a kind of a vacancy tax. We do have people who, through their employment needs, require two homes. Do you accept that that’s unacceptable and should not be liable for punitive taxes?
Hon. S. Robinson: I think it’s really important to recognize that our government has taken quite a balanced approach to the housing affordability issues that have been growing over the last decade and were ignored until the point where it reaches a crisis.
Our government has taken a really broad-based and balanced approach, addressing some of the demand issues but also addressing supply and taking some significant steps so far — and there’s more to do — but also making sure that we have the kinds of securities in place for renters and landlords so that that relationship works better. We’ve taken some significant steps.
I want to remind the member that our government made the biggest investment in housing in B.C.’s history — $7 billion over the next decade. It’s a significant investment in the supply-side component. In this budget, we’re already moving ahead to directly support investments into 36,700 units over the next ten years. We’ve already started to make significant investments there.
I also want to point out this new branch of B.C. Housing. I’m very, very proud of this new branch, because they are being tasked with being innovative and creative and with bringing partnerships together. I certainly spoke about it in my opening comments. We announced it about a week and a half ago, where we’re able to demonstrate already how this housing hub is bringing together partners who have land or are ready to reuse the land or repurpose the land.
What they needed was a little bit of help in taking a look at how this development can work, in creating a land trust across four different communities and in developing 400 new affordable housing units that will meet the needs of British Columbians who are challenged with finding affordable housing.
We’re not going to be able to do this fast. Housing does take some time to build. But we have to start, because it hasn’t been done before. Our government is taking swift action both on what I’ll call the social housing front as well as on the market front.
We’ve got some other pieces that we’re looking to do legislatively that we’ve talked about already around housing needs assessments, rental-only zoning, so that we can stimulate the kind of supply that people need.
S. Sullivan: Perhaps I can help the minister. Right now MLAs are paid by the government to have two homes. Some MLAs own two homes, and they’re required to do that for their job. They live partly in Victoria, and they live in other parts of the province. So MLAs are conveniently exempted from this home rationing.
I know the Premier has said that cabinet will now be meeting more often in Victoria. This means that Vancouver MLAs, at least cabinet ministers, may be liable for the empty home tax if they spend any more than 180 days away from their home. If they’re on the road, if they’re in Victoria meeting, ministers will have to pay the empty home tax. Will they be compensated by the government for any empty home taxes that they’re liable for?
Hon. S. Robinson: Although this is a finance question, because it’s about the speculation tax and my ministry isn’t technically responsible for the application of that tax…. No one is exempted. I’m not clear that the member understands that — that it has nothing to do with MLAs. It has nothing to do with any of that.
S. Sullivan: So ministers would be liable to pay to that if they spend more than 180 days away from their homes?
Hon. S. Robinson: MLAs make choices about how they’re going to do accommodation here in the capital, while they’re working. Some may have purchased. Some rent. Some stay in hotels. That’s to suit individual needs. In this case, if they’re responsible for the speculation tax, then they’re responsible for the speculation tax.
S. Sullivan: So ministers and MLAs are speculators, then, according to this government. By living in Victoria and maybe not spending enough days sleeping in their own homes in Vancouver perhaps…. I know that Victoria has asked for the empty home tax. If that gets imposed on Victoria, that means those of us who do not live in Victoria for up to 180 days would then have to pay the empty home tax and would also be considered speculators, according to this government, even though the government is subsidizing them to be speculators. Do you think it’s right that the government subsidizes speculation?
Hon. S. Robinson: I think that part of what the member is getting at is trying to find a way to not acknowledge the kind of housing that people need. What we are talking about is people need housing. And the option to rent out housing is always available to people to make sure that people have the opportunity to have a home that they can afford, recognizing that it’s really important that those MLAs who make choices make whatever choices that suit their needs around their own housing.
S. Sullivan: I’m not sure that it’s a choice for us to come to the Legislature. We have to be at the Legislature, and we have to be there the days that the government requires us. That’s our job. I don’t think that MLAs are speculators either, because we have to do our job.
If Victoria will get an empty home tax, the MLAs would have to pay that. And I wonder if they will get extra compensation. I know in the private sector, they don’t.
I have a neighbour who lives in Yaletown, who lives right beside me. He owns an air-conditioning company. He lives in Abbotsford, and he also has a flat in Yaletown. When he does most of his work in the downtown area, he stays in his Yaletown flat. When he works in the suburbs, he stays there, at his regular home.
Is this person considered a speculator, and should he be liable for punitive taxes?
Hon. S. Robinson: I was listening very closely to the member’s comments, the hypothetical around what Victoria is doing, and I can’t comment on what may or may not happen. It’s just…. Victoria may make whatever choices they make. They get to do that as a local government, and then we’ll see what happens. But I can’t comment on something that hasn’t happened that I know nothing about, because Victoria hasn’t implemented any empty home tax.
S. Sullivan: Is it right for government politicians to not have to deal with the same issues that private sector people who create jobs have to deal with? Here we are. We must come to Victoria to work. I actually stay in a hotel. Many people don’t like to pack up their luggage every week and then move into their home every week. It’s much more difficult, so some people choose to actually purchase a home in Victoria. They’re committed to their work.
Many of the ministers currently may not be liable to the empty home tax in Vancouver, but if the Premier does decide to have more cabinet meetings and more work done in Victoria, they will be likely out of their home in Vancouver for more than 180 days. In that case, they will have to pay the vacant home tax in Vancouver.
Does the minister feel that ministers are speculators because they have to work in another city, in Victoria, where they do most of their work?
Hon. S. Robinson: Again, the member is moving into a hypothetical that I can’t really respond to. It’s hypothetical, and I don’t have a response for hypothetical. However, I do know that he’s asking a significant number of questions about tax policy, and that’s the purview of the Minister of Finance.
In my ministry, we’re putting a tremendous effort into making sure that we have the kinds of homes that people can afford, making sure that we are building the kind of supply that the member actually started his comments with. He commented on a supply issue. I think it’s really important to get on the record that at the Ministry of Municipal Affairs and Housing, we’re working together, between the municipal part and the housing part, to make sure that we have the kind of housing that meets people’s needs.
I know that the member was the mayor of Vancouver and would have come across this in his time on council. I certainly saw, in my time on council in Coquitlam, where we were getting a lot of proposals for towers, because the Evergreen Line was coming to Coquitlam, and the number of proposals that were coming through to build supply were all 600-square-foot apartments. Just 600 feet, all of them. We’re talking tower after tower after tower.
We were doing some significant density, because that’s what was required when you have quite a transportation node like that in the Tri-Cities that has been starved for a long time and waiting for efficient and affordable transportation. And what struck me at the time…. I remember asking, very specifically, a couple of the developers who were coming through again and again, three and four towers, and saying: “So 600 square feet? Why is that all that you’re building? Where are the two-bedrooms? Where are the three-bedrooms? Where are families going to live? Where are people going to downsize to?”
I don’t know if the member is familiar with Coquitlam, but it’s a traditional suburban community, as traditional as traditional could be, with lots of single-family housing, lots of cul-de-sacs, lots of 1950s, ’60s, ’70s houses. And now people want to downsize. I’m one of the youngest on my street, and I have no children at home anymore, so there’s no place to downsize as a result of this overabundance of 600-square-foot apartments. So as a result, people are, as my son says, staying overhoused.
I agree with the member that there is a supply issue, but the problem is that it’s the right kind of supply. When I would ask the development community, the developers that were working in my community, why just 600-square-foot condos, their response was: “Because that’s what the market demands.” They’re flying off the shelf. Their presales were gone in a day, in half a day. So for them, they were saying: “Well, that’s the demand. We’re responding to the demand.” But it wasn’t responding to the demand of the community — a different kind of demand.
I think it’s really important that we focus on what communities need, remember what British Columbians need. British Columbians are saying they need homes that work for their families. They need homes that are affordable. They need homes that are appropriate. That’s exactly what…. Everything that’s in the 30-point plan related to the supply side, which is critically important, is what we’re focused on right now.
S. Sullivan: Well, I don’t see anything that deals with the market supply curve — the atrocious 0.25 supply in elasticity that we have. I understand that there are some condos being built in Port Moody, absolutely, and I’m glad that that is happening. But we are not solving this.
All of the points that you have in here…. In fact, we’d call those condos, speculator condos. Those condos were built as spec housing. There are certain speculators that are actually building housing, and most of us actually live in those houses. I’m just concerned about some of the uncertainty that the minister is bringing in. Almost the entire 30 points are dealing with demand and trying to break the demand curve.
I want to ask…. I’ll just get into some other questions on some of the literature she’s put out recently. First of all, how many units of housing will the minister’s government build over the next three years?
Hon. S. Robinson: The member asked specifically how much government is going to build. Is that correct? We anticipate building between 2,500 and 3,500 a year over the next three years. That’s government-built.
I’m sure the member can appreciate that once you fund it, you still need to go through a development permitting process, and actually building and delivering will take anywhere from 18 months to three years, depending on the community. Those processes take some time.
I also think it’s important to recognize that we are working very closely with a range of other sectors to deliver on other housing. In fact, we just announced over 400 units of housing, partnering with a faith group. That is not government-subsidized. That’s working with a faith group to build housing for what we call “the missing middle.”
S. Sullivan: The 2,500 to 3,500 per year. You mentioned that there was going to be planning and working through the processes and then actually building them. Would I conclude that there won’t be any housing done within three years?
Hon. S. Robinson: As the member fully appreciates, it’s a constant flow. We’re expecting to be able to open 2,500 to 3,500 units every year. As the next year, you announce, and it just keeps going. You just keep working at it.
This is what happens when you haven’t had anything in the pipeline. You have to start moving. You start, and you move it through, and that’s our commitment: to get between 2,500 and 3,500 opened every year.
S. Sullivan: The housing that the current government is committing to…. Actually, for people to actually move into them, there won’t be any housing that has started now, funded now and actually is to be moved into in the next three years. Would I say zero?
Hon. S. Robinson: I’m very proud to say that we have people already moving into housing that we announced in September. They moved in, in January.
S. Sullivan: I would imagine that would be the modular housing, then. Okay. So temporary housing.
How many units over the next ten years?
Hon. S. Robinson: It’s 114,000 units.
S. Sullivan: That is both government and private sector.
Hon. S. Robinson: Yes.
S. Sullivan: For government housing, what is the cost per unit of this plan?
Hon. S. Robinson: I suspect that the member is well aware — maybe he’s not — that with every project, the costs vary.
[L. Reid in the chair.]
We’re a government that’s about partnership, and we’re always looking to partner. Every project is different — by location, by area of the province, the unit size, the kinds of things that people bring to the partnership, whether or not the fees and charges get waived from the local government.
It’s really important to recognize that we are looking for partnerships wherever we go, wherever we build, to make sure that we’re able to deliver the kind of housing that people need and that they can afford.
S. Sullivan: So there’s no average price that you could give as to what you use for your budgeting purposes?
Hon. S. Robinson: Well, certainly there’s no average community, because they’re all very special. They’re all very unique, and they all have opportunities.
What I can tell the member, which has been impressive, is that wherever we go to talk about a new piece that we are introducing in order to bring on more housing, people — whether they’re non-profit providers in the private sector, local governments, First Nations — all want to partner with us. They all want to bring something to the table. As a result, when they bring something to the table that we weren’t anticipating, of course then it makes it easier for us to deliver more units in certain communities. So we’re always looking for those kinds of partnerships.
S. Sullivan: Okay. You outline in your 30-point plan the increased funding to the residential tenancy branch for the purpose of reducing wait times and improving service to deal with disputes more quickly. I think this is actually a very valuable thing for people who are thinking about investing in rental housing. What they worry about is that more staff will actually tie up things longer and that disputes will actually be lengthened. I’m hoping that the actual focus and the results are what she has wanted to have.
Can you confirm if any of these initiatives have been acted on, how much the wait times have decreased and if there has been more efficient dispute resolution? Are there any practical numbers that would indicate that we’re actually achieving that?
Hon. S. Robinson: I just want to note that the member’s conclusion — somehow more arbitrators would take more time — I think, is illogical. The simple math is that when you have a lot of disputes, if you hire more people to hear those disputes, the numbers go down.
I want to assure the member that we have hired 11 new arbitrators. We have hired 15 new information officers. We have launched the on-line service portal, which is designed to expedite and reduce wait times. These things have all just started, and we are starting to see some of those numbers move. It’s a bit premature, given this has only been over the last couple of months. We’re waiting to see what the results are, and I’ll be happy to share them with the member opposite.
S. Sullivan: That’s very encouraging. I do hope that the minister will get these updates on actual time that is spent, and I hope that we will see more efficiency. I know that is valued by people who do provide rental housing.
Can the minister explain why the federal transfers to B.C. Housing will be declining over the upcoming years? How much will these declines affect B.C. Housing supports and programs? And will the province be making up that gap?
Hon. S. Robinson: What the member is commenting on is the natural end of a previous government program, which has come to an end. We’ve just signed on to the multilateral agreement with the federal government for a new program, and we’ve just started to look at what the bilateral agreement would look like.
I want to assure the member that our government’s $7 billion commitment is the provincial government’s commitment and that when we negotiate with the federal government on the bilateral, that will be in addition. There’ll be additional opportunity to address the housing crisis with the federal moneys that will get layered on.
S. Sullivan: A different question, a different direction. What is the budget for the Home Adaptations for Independence — they call it HAFI — this year? Has that increased or decreased from the previous years?
Hon. S. Robinson: The Home Adaptations for Independence program provides financial assistance up to $20,000 to help low-income seniors and people with disabilities with home adaptations so that they can continue to live in the comfort of their home. The program will receive approximately $5 million annually, and that has been sort of the standard program allocation that has been going on, to date.
S. Sullivan: Okay. Do you have numbers for how many units were supported in fiscal 2016-2017, and then how many units, say, from 2006-2007 over the last ten years?
Hon. S. Robinson: I don’t have the year-by-year breakdown. What I can tell the member is that as of March 31…. Since the program’s inception, which was 2012, there have been approximately — I love this — 1,956 homes. It’s a pretty specific number, so I don’t know how approximate that is. I’m pretty confident it’s pretty specific, give or take maybe one or two, but almost 2,000 homes have received help to adapt their home.
S. Sullivan: Very good. Congratulations. It’s very valuable and needed.
Can the minister explain B.C.’s role in the announced federal housing strategy? I believe it’s $40 billion over ten years, which I guess is $4 billion for B.C.
Hon. S. Robinson: The provincial government has been sitting at a table, with all of the provinces and territories, with the federal government to negotiate and develop the multilateral agreement that just got signed last week, last Monday.
Staff are working right now to take a look at the bilateral agreement to make sure that B.C. is certainly being considered and making sure that we are working together with the federal partners to deliver on homes that people need desperately here in our province.
S. Sullivan: That’s $40 billion. That’s a lot of money. Does the minister think that this federal plan will make a major difference for housing affordability in B.C.?
Hon. S. Robinson: Our government has made a $7 billion commitment over the next ten years to deliver on housing for British Columbians. I think it’s important to recognize that we’ll certainly work hard to make sure that British Columbia is recognized as a place that needs significant housing. I’m really proud of the fact that our government has made such a significant commitment, and any additional federal support, federal commitment, for funding for housing, will certainly allow us to deliver more housing for more British Columbians.
S. Sullivan: The question about advertising. I know the minister has spoken about the 114,000 new homes. The idea that the government itself is building 114,000 new homes…. It seems to be that with the ads that ran, the people of B.C. were led to believe that the government was building 114,000. The government ran an ad called “Housing affordability in B.C.,” which said 114,000 new homes. It didn’t specify government building 30,000 and such. I’m just wondering. Does the minister think the ad misrepresented what’s actually happening?
Hon. S. Robinson: I think what’s really important is that British Columbians want a government that is working for them and working to make sure that there is the kind of housing that they need. Our government is taking significant action to facilitate that.
Whether it’s changing legislation so that local governments have the tools they need to facilitate the development of the kinds of housing that people need. Or if it’s legislation that requires local governments to take a look at their housing stock and to help them in their decision-making so that they’re building the kind of housing that people need. Or if it’s something like the housing hub, where we are actively working and actively pursuing partnerships and pursuing opportunities for British Columbians to have the kind of housing they need. I think that that’s exactly what British Columbians want.
They want a government that is going to be working for them to make sure that the housing that they need for them and for their families is there for them when they need it in a way that’s affordable, in a way that’s secure and in a way that meets their needs.
S. Sullivan: Yes, but I’m not sure that the people of B.C. need the government to pay money to tell them about this. That’s the real question as to what’s the content of advertisement paid for by the public. I know that this has been a sensitive topic over the years of government advertising, and I know that the minister had promised to — or the minister’s government at least, her party — have these types of ads vetted and cleared by the Auditor General. I wondered if that had been done.
Also, I know that there were statements that these ads on the housing were good because they were educating the public about programs they can access. But the ads just spoke about the foreign buyer tax, which I don’t think people are trying to access, and planning on building 114,000 homes. So I just wondered if the ad was cleared by the Auditor General and if she felt that the content of those ads was actually informing the public of programs they can access.
Hon. S. Robinson: That ad was put together by government communications, and they answer to the Ministry of Finance. I would invite the member to direct that question there. That’s what that ministry does.
S. Sullivan: Okay. You didn’t approve that ad, though. No?
Hon. S. Robinson: I think it’s important to recognize that British Columbians have been seeking some relief around this housing affordability issue. Our government has taken significant steps, very significant steps, to deliver for British Columbians. We want to make sure that they’re aware that their government is working for them. I think that’s really important.
But in terms of the specifics about how it was reviewed, what the policies are, I think that’s a different ministry that the member needs to direction the questions on.
I think it’s really important to recognize that we’re taking significant steps to deliver housing for British Columbians. I think British Columbians want to know that.
S. Sullivan: About the temporary housing. How many modular projects have been announced, and how many have been opened? Then, what is the average cost to get them ready for occupancy?
Hon. S. Robinson: We made the announcement for modular housing back at UBCM. That was end of September of last year. I was quite surprised at how quickly we were oversubscribed in terms of the number of communities that wanted to partner with us.
To date, we have announced 1,466. We’re still working through, with other communities, the remainder of the 2,000 units. But we know that we’re oversubscribed, which is why we provided for additional funding for Budget 2018.
We have 150 that are open. What’s amazing is that we announced at the end of September, and five months later, people were moving in. From a housing perspective, it’s almost unheard of to be able to deliver housing — safe, warm and appropriate accommodations — that quickly. What we have learned is that once the site is ready, people, in 3½ months, have a place to call their own.
The cost. Again, the cost is variable. I’m sure the member can appreciate that some sites have a slightly larger amenity space, depending on exactly how big the community is. So it costs anywhere from $100,000 to $140,000 a unit, depending on layout and design.
S. Sullivan: Okay. The occupancy rate in the modular housing projects in the city of Vancouver. Do you know if…? I’d heard that they hadn’t all been filled. Do you know what the occupancy rates are now?
Hon. S. Robinson: All of them are going to be, certainly, 100 percent, and operationally, the preference is to move people in over time. It just takes a matter of weeks to get the full occupancy up, to make sure of the proper attention to detail, and making sure that the community works within the program is really important. So we expect 100 percent occupancy in all of our sites.
S. Sullivan: The modular housing, though, are considered temporary. They’re not permanent, would you say?
Hon. S. Robinson: Well, our rapid response to homelessness, like I said earlier, has been completely oversubscribed, because communities have been waiting a long time for an opportunity to provide housing for people who are — I would perhaps argue — some of the most vulnerable in our communities.
The modular is a form of construction, right? They’re built in a factory, and then they’re shipped. In some places, they’re absolutely temporary, where the land is available for five years or eight years. The idea is to provide some security for people to have a home until a more permanent option is available, a more permanent structure is available. In other communities, it’s a permanent structure for 40 to 50 years.
I actually toured the factory. I want to give a shout-out to all the members from Kamloops, for Horizon North. There are other providers, but I was quite impressed with the modular construction. I think they’re able to make 17 at a time, and it just takes a couple weeks. They build modularly, with all of the wiring in it and everything, all of the insulation in it, and it’s all panelled. It goes together sort of like LEGOs, and I was just completely wowed by their ability to do that.
The thing that I was most impressed about with this modular construction was that if there’s damage to a wall, you pop the wall, and you pop a new one back in, so you don’t have to worry about all of that other dusty stuff. It’s also easier to maintain for housing.
I was quite impressed. The modular component is really a style of construction.
S. Sullivan: It sounds like some are temporary and some are permanent. I know that they are included in the government commitment to housing. The ones that are temporary…. I’m wondering if that should actually be in the commitment, since they’re not long term.
Hon. S. Robinson: One of the beauties about this modular kind of construction is that you can move it to different neighbourhoods, to different communities. So it is actually part of government’s housing bank, if you will.
If we move it…. Let’s say it’s in Smithers, and then you need it…. Perhaps in Terrace they have a particular issue, and Smithers no longer needs their temporary…. If it’s temporary in Smithers; I’m using it as just a hypothetical example. Then you can move that housing to another community. It still is part of our resource as a province. I think it’s really important to remember that different communities….
The thing that I love about my ministry, the thing that I love about it the most — besides all the fabulous people who work with me around here — is that it’s local government with housing, together. I think they need to be married. It’s really important to think about that, because it keeps you in touch with what’s happening on the ground.
I’m responsible for 189 local governments, so I get to hear what’s going on in different communities. When I was at the UBCM and hearing about how different communities were struggling with different kinds of housing….
If my ministry knows exactly what’s happening in another community where they’ve been able to develop more supportive housing or other affordable rentals and people are starting to move out of this modular that we’re bringing on line for people who are homeless or at risk of homelessness, then we can move it into other communities that may have a particular challenge, right?
We’ve certainly heard stories where communities have a fire in a low-cost affordable housing development that displaces dozens and dozens of people. If there’s another community that no longer has need for their modular, we have this ability to deliver and bring some housing on line.
It’s an incredible investment for our government to make, so I actually do think that it is part of our housing commitment — absolutely.
S. Sullivan: Okay. I wanted to ask some questions about the rental task force. I believe the minister determined the makeup of the task force, which included a member of a party not in the government.
I’m just wondering if the minister had considered asking a member of the largest opposition party in the Legislature for their participation.
Hon. S. Robinson: The makeup for the rental task group was based on the platform commitments that we certainly saw with the Green Party. They had a line in their platform, which I don’t have in front of me, of course…. They were really very keenly interested in tightening up the rules so that landlords and renters could have better relationships and really focus on reducing wait times for the residential tenancy branch and making sure that disputes were resolved in a timely fashion. It was based on that, and we invited them to participate.
S. Sullivan: Okay. I wanted to know the timeline for the task force. Probably more importantly, is rent control or a rent freeze one of the mandates that they will be looking at?
Hon. S. Robinson: The task force will be going out to communities around the province and hosting opportunities, as well as having opportunity for people to feed in, electronically, what they identify as issues for both landlords and for tenants — to identify opportunities to make the relationship work better, to look at how to support — whether it’s the development of more purpose-built rental or what additional things the government can do to provide security for both of those parties.
Those are the kinds of things that they’re going to be looking at. Everything is on the table for them to explore. I’m not going to presuppose what comes out of their work. That’s their work. In terms of timeline, we expect to have recommendations in the fall.
S. Sullivan: The minister has not asked them to not consider a rent freeze. They could actually recommend a rent freeze or rent control. That could be something they might come forward with. The minister has not precluded that?
Hon. S. Robinson: I have asked them to go out and talk to as many people as they can and to come back with some recommendations, based on those conversations with all the various groups from all the various parties, and identify some strategies that would help provide security for renters and for landlords that they both need in order to make the relationship work better.
S. Sullivan: Okay. I believe the minister…. The last rent hike that she approved was at 4 percent. I know that if the task force is indeed looking at a rent freeze or rent control, that would be difficult. I guess they could then come forward and recommend rent control. Do you think that’s possible?
Hon. S. Robinson: I think the question is: could they? They’ve been asked to go out and hear from various groups about what some of the concerns are and what the possible solutions might be, to make recommendations. We’ll go forward from that.
S. Sullivan: I wanted to talk a bit about, or ask some questions about, the school tax. I know that the school tax actually doesn’t go to schools. So it is, perhaps, inappropriately named.
I just wonder when the minister learned of the planned school tax increase and how it would have originally affected purpose-built rental before the change announced on March 1.
Hon. S. Robinson: Our budget — again, I want to point out — is a balanced approach that has many different components, 30 different components, all designed to be interoperable and deliver on the housing that British Columbians need. We are addressing demand. We’re addressing supply and security for renters. Those are the three large chunks of what we’re doing.
From the purpose-built rental component that the member mentioned, there are some significant things that we’re able to do as government around giving local governments the tools that they’ve been asking for that would help them to deliver on purpose-built rentals and, certainly, making sure that they understand the housing stock that they have.
As I’d mentioned earlier, in my community, we really have two kinds of housing, for the most part. It’s either 600-square-foot condos or 3,000-square-foot and larger single-family homes.
Making sure that you have the range of housing and also making sure that you have the kinds of rental housing that you need and that local governments have the tools and the ability to make the kinds of land use decisions that they need to make…. We are working across government on all sides to make sure that we can deliver for British Columbians.
S. Sullivan: I’d missed one question from just a moment ago on the manufactured homes. We passed some legislation last week. There were some calculations based on the assessed value of manufactured homes.
Since that time I’ve heard that we should have probably said “appraised value.” The appraised value, in some people’s definition, is the actual value of the home. The assessed value is the home and the land — very, very significant difference. I don’t know how the minister is interpreting assessed value. Has the minister heard this suggestion, and will she look into the legislation to make sure it’s working?
Hon. S. Robinson: For manufactured homes, it is different. It’s just the assessed value, because they don’t own the land. So it’s just on the assessed value of their home.
S. Sullivan: Okay. The way the ministry is interpreting that, the assessed value of a manufactured home is just the home itself and not the land. Thank you very much for that.
Back to the school tax. Did the minister speak to the Finance Minister about this issue on behalf of the owners of rental buildings?
Hon. S. Robinson: Again, I have to say how proud I am of our government working together to bring to fruition a 30-point plan to address housing. All the component parts, we recognize, are interoperable.
I’m sure the member appreciates — I think everybody in this House appreciates — that the affordability crisis, particularly around housing, is complex. It requires coming at it in many different ways and that we work collaboratively to make sure that people can have the homes that they can afford. That has really been sorely missing. There hasn’t been a plan in place at all to address this. It has just been allowed to continue to grow, to get significantly worse over time and for there to be no attention to it. I appreciate that there’s finally some attention being put to it from the other side.
Our government has actually taken some concrete steps, in many different places, in order to deliver on our commitment to make housing more affordable for British Columbians.
S. Sullivan: I’m just going to ask maybe one more question, and then we have some other MLAs that would like to ask some questions.
I guess, trying to encompass a number of things that I’ve heard from investors and potential investors, is: with the school tax we have…. Well, with property tax right now, it is very progressive. The same type of house, the same house, in different areas or in different neighbourhoods would sometimes be many times the value from one house to another, from different communities. So it is very progressive.
What this does is it seems to put progressivity on top of progressivity. There are actually different rates based on how expensive your house is. A person owning a $2 million or $3 million home would be taxed very differently from one $6 million home.
There is this sense that there is uncertainty about how tax is going to be treated. There’s this long-standing tradition in North America that property tax is meant to service properties. It’s meant to provide municipal governments with the support they need. So there is a great element of uncertainty being introduced here.
I’m just wondering if the minister accepts that bringing uncertainty into this and making it very hard for people to plan financially can actually harm the supply of housing — make it less likely that investors will build housing.
Hon. S. Robinson: Again, taking a balanced approach has been really important to our government — making sure that we are addressing the demand side and the supply side and making sure that renters and landlords have security. We are tackling this significant challenge from all sides and making sure that people have the tools and the opportunities to deliver and that we can have the kind of housing that British Columbians need.
There are many specific things that we’re doing, out of my ministry, around housing needs assessments, making sure that local governments understand what their housing stock is, so that they can make really good, informed land use decisions. I know the member appreciates the role that local governments have in creating the kind of housing that their communities need.
We also are looking at rental-only zoning, which is something that local governments have asked for. Again, it’s another tool for them to use that will help address some of the gaps that currently exist, so that we can have the kind of table set that would provide opportunities to get the kind of housing that people need, in all kinds of communities around the province. So it’s not…. I know the member is from Vancouver, and it’s a significant problem in Vancouver, but it’s a significant problem in Coquitlam, in Kamloops, in Kelowna, in Merritt and in Tofino — right around this province.
There are significant challenges. In every community, it’s slightly different. They’re not all the same. Making sure that there are the kinds of tools they need so that they can identify the ways that they can address their housing affordability needs is really critical to our government. That’s what British Columbians want, and they want a government that works in partnership.
I believe there’s understanding that no one body is going to be able to solve the housing crisis alone, that we need to be working in partnership. That’s why we’ve been working very closely with local governments to make sure that they have the tools they need. That’s why we’re working very closely with the non-profit housing community to make sure that they have the supports they need. That’s why we’ve reached out to the faith communities.
I have to say that they have been incredibly responsive and are very eager and excited to work with our government to deliver on the kind of rental housing that will meet the needs of communities right across the province. There’s tremendous opportunity.
I have to say that everywhere I go, I have groups come up to me and say, “We want to work with you. We have land,” or: “We have this opportunity, but we’re not sure how to go ahead and move this forward.” So we have this housing hub that will help them bring together the kinds of partnerships, the kind of financing, the kind of development opportunity for the kind of housing that British Columbians need. We are taking as many steps as we can to move in that direction.
D. Barnett: Minister, in early April of 2017, there was a non-profit organization in my community of 100 Mile House that put in for a housing project in my community. In April of 2017, there was an announcement made that there was $1.5 million in capital funding toward the project. For some unknown reason, which I can’t disclose — because I really don’t know — the particular project did not move forward. Late September or October of 2017 is when everything seemed to come to a standstill.
Is the $1.5 million in capital funding still available for this non-profit society to move forward in 100 Mile House with affordable rental housing units?
Hon. S. Robinson: Can the member give us the name of the non-profit society so that we can take a look at what happened?
D. Barnett: I don’t have the authority to give you that name at this point in time. But if you so wish…. Well, I guess I can. It is the Canadian Mental Health Association in 100 Mile House.
Hon. S. Robinson: I’ll ask staff to look into that for the member and find out what’s happened with that commitment. Our government is very proud of the fact that we have been carrying through on previous commitments.
We’ve been identifying where there have been some challenges around affordability and making sure that they can move forward. But I commit to getting more information to the member so that we can find out where this project is at.
D. Barnett: Thank you, Minister. I would appreciate that. The person who owns the particular property has been left high and dry at this point, with no response back from the housing division of government that, actually, the project is not moving forward.
D. Ashton: First of all, I just want to thank the minister for her recent announcement in Penticton regarding the modular homes, not only for the individuals that are going to utilize those facilities but also for the company that’s building them and keeping those jobs in Penticton. So to the minister, thank you.
Minister, my question is regarding the cluster effect. We have a group of these homes in a specific area in Penticton, and it’s the security of the residents at the homes. Can the minister enlighten me if there are additional security measures planned — i.e., 24-hour gating or 24-hour supervision in these particular premises — not only for the security of the residents but also for those in the immediate area?
Hon. S. Robinson: Based on the earlier comments, I’m assuming you’re talking about the modular program. Is the modular housing what the member was referring to?
D. Ashton: No, it’s actually…. That forms part of it, but counting that modular unit, there would be three facilities within very close proximity. To be frank, there has been an issue there, a serious issue. I have heard from citizens asking about additional security measures.
Again, it’s not only for the individuals that are inhabiting these facilities. It’s also for some of the individuals in the immediate area.
Hon. S. Robinson: I want to thank the member for the clarity. It was helpful.
With the modular program, that, of course, is staffed 24-7. So they have some significant staff resources. I’m familiar…. I actually saw what he’s calling a cluster. What that’s going to do is relieve some of the pressure on the other programs as well, so that the staffing complement is eased up a little bit.
With the 24-7 staffing, then, he can assure people in his community that people are supported 24-7. There are additional resources.
D. Ashton: To the minister again, thank you for that information.
Just north of that, at the corner of Industrial and Main Street, the government has purchased another motel unit and is in the midst of a conversion at this point in time. A similar question is: will there be security on site for the residents also?
Hon. S. Robinson: The project that the member is referring to will have 24-7 services as well. Again, we want to make sure that everyone, of course, is secure but that people get the supports they need so that they can make other kinds of choices and have the kind of life that we all want for them.
D. Ashton: To the minister, I would thank her for that information. Also, the opportunity to be a bit proactive, especially with the new site at the corner of Industrial and Main, just off the corner of Industrial and Main — if staff in the area could be a bit proactive.
[R. Chouhan in the chair.]
There have been some concerns raised with some of the actions that have taken place on Skaha Lake Road. If the staff could be a bit proactive with the adjoining businesses, I think it would be good for everybody. That was probably more of a statement than a request.
Last but not least, if the minister is able, would she have any indication of when the property one block east of Winnipeg on Nanaimo, behind the Canada Revenue Agency and the city of Penticton fire hall No. 1…? There’s a site there that has had some trepidation in being started, but I had a picture sent to me today of excavators on the site doing some cleanup and all that. Could the minister let me know maybe at some point in time if there is going to be something coming forward, when ground works would start? It’s a site that’s been announced a while ago. Housing is…. We’re just waiting.
Hon. S. Robinson: Just listening to the member’s questions, it’s like, man, we’re doing a lot in Penticton.
I just checked on the status. It got final approval a couple of weeks ago, and so because of that, we want to get moving and make sure that we’re giving people the kind of housing that they need. We’ll certainly keep the member apprised as things grow. But he’ll get to see it, over time, getting built.
D. Ashton: I want to thank the minister. I was listening a little bit earlier about working together. There was a previous government that worked really hard, and I’m glad to see that’s carrying on with the current government because, as we all know, these sites are required to put roofs over people’s heads. I really do want to thank the minister and her staff for being very proactive on that.
J. Tegart: To the minister: I’m pleased to hear you say how much work is being done in Penticton. I’m looking forward to hearing that about Clinton. We have a seniors housing project that has been on the go for about four years. We worked through a property that was owned by the school district, a building with asbestos in it, the tearing down of the building and the property then being able to, we hoped, be built on. Then multitudes of different groups owning pieces of the property. We worked through that.
We have a very dedicated group working on seniors housing. They visit my office weekly. Recently one of their seniors had to move to Ashcroft because she just couldn’t wait.
I wonder if the minister could give me a timeline, some dates, any kind of tidbit. My group would just be thrilled to hear about what the next step is and if, in their lifetime, we’re going to see the building built.
Hon. S. Robinson: I want to thank the member for bringing this project to my attention. I do remember…. As soon as she mentioned Clinton, it was like: I met with Clinton at the UBCM. I remember this. I met with 62 communities, and they stood out. You can let them know that they stood out because they’re so earnest.
I just checked with staff, and this was a complicated land assembly. It had to do with school district land, which made it very complicated. Staff have invested a lot of time to help move this project forward. What I would encourage the member to do is to let them know that we’re on it. They’re well aware of the project. We’ve just announced significant funding. I’m hopeful it will be able to capitalize on that. Because we’ve invested so much time already, we’re committed to finding a way to see this through to the end.
J. Tegart: Thank you so much for that. I can guarantee you that I have a group in Clinton that will be phoning every week. I’ll put you on their phone list also. They absolutely are dedicated to keeping their seniors in their community and to looking for affordable housing. It’s affordable housing not only in the urban centres, but it’s so critically important to rural B.C. So thank you very much for that. They will be holding all of us accountable.
Hon. S. Robinson: I just want to respond to the member’s comments. I want to express appreciation to her community and to other small communities around the province.
I have been going out speaking to various groups, and I declare myself to be a suburban-urban MLA — and how valuable the UCBM was. Again, it’s another example about why I so value the fact that the Minister of Housing is also the minister for local governments, because hearing from those communities about their unique needs….
They are different from urban and suburban communities, absolutely. The UBCM was a place for me to hear that loud and clear. Seniors housing is one of the big things that came through for me around what’s happening in rural British Columbia and what the challenges are. So if you could let them know how much I appreciated and how valuable their telling me what was going on in their community was to me, for all of rural British Columbians, around helping me to understand what the housing challenges are there.
J. Rustad: In Nechako Lakes, we’ve got many housing projects that have been done over the years, but I’ve got one particular question.
In the community of Vanderhoof, we have a situation where there is a supportive housing unit in the community. There are, I think, perhaps as many as seven vacancies at the moment in this unit. I’ve heard varying numbers. It may not be that high, but I’ll just use that number.
Vanderhoof is a community, of course, that’s got a shortage of housing. There are all kinds of challenges within the community. What seems to be happening is that there are rules put in place as to who can qualify to go into the subsidized housing and who can’t. The particular requirements around the facility have left many of the people — that could, and probably should, be in a situation where they could benefit from subsidized housing — not eligible to actually be able to apply and to obtain one of these rental units.
The question to the minister: is there an opportunity to review or to look at the requirements for a community like Vanderhoof — understanding that in a rural community, it’s different from other areas in the province — to be able to have some flexibility so that the local managers would have the ability to build or consider cases, outside of what that normal requirement would be, to be able to meet some of those needs?
Hon. S. Robinson: I appreciate the member bringing that specific project to my attention. The vacancy is as a result of renovating the units. They’re moving people through in order to renovate, which is, I think, a good thing. We want to make sure that we’re investing in this kind of housing.
They are actually undergoing a review to make sure that it has some broader opportunities than previously. That’s the work that they’re currently undertaking, and I’m sure that we’ll be up at full capacity once they’ve done the renovations and identified a way to use this asset more fully.
J. Rustad: Thank you for that response. I look forward to seeing that and seeing those opportune jobs for the people there.
I’m wondering: would it be possible to ask the ministry to be able to provide an outline in terms of the requirements today and what some of that flexibility can look like? We have cases that come into MLA offices — like all of us do, around the province, as we represent our areas. So we don’t want to be, necessarily, sending people off and then them having to come back, being frustrated. I’d rather know where those rules could be so that when they come in, we know what we can help them with or if we have to try to find alternative or other opportunities.
Hon. S. Robinson: I just confirmed it with staff. They’d be happy to share the income levels, once those policy decisions are made, and to share that with the member’s constituency office.
M. Stilwell: Minister, I just wanted to touch base with you. I thank you for coming to the community of Parksville just a few weeks ago to announce the project on Corfield.
In my community, it is something…. The Homelessness Task Force, the city of Parksville, the RDN, the town of Qualicum, the SOS and all members have worked hard to make sure that we can get an affordable housing unit in place in our community to support those people who are vulnerable, who are at risk of homelessness. Of course, with these projects, sometimes there comes conflict and there are people who are opposing the project, which we are now seeing in our community.
I just wanted to come and ask a few questions to verify for the record and to sort of dissipate some of the myths that are out there and that are happening. One of the questions I have is in regard to the funding. The conversation that’s being had in the community now is that the funding was given to Parksville because Nanaimo and Chase River declined it. I’d just like, for the record, for you to acknowledge that that is, in fact, not true.
Hon. S. Robinson: I can assure the member that the decision to provide Parksville with this resource, with this asset, was made completely independently of what’s going on anywhere else on the Island. Communities came and asked to be considered for this opportunity, and Parksville was on the list. In fact, staff are saying that they’ve been looking for land for several months, and working with the community to identify it, well before anything happened in Nanaimo. They’re completely unrelated.
M. Stilwell: Thank you for clearing that up, Minister.
The minister has the experience and has the knowledge, with the staff, of other communities that have projects just like this one. I’m wondering if you can just speak a little bit about the record of the success of those projects, how it has helped individuals in communities around this province and the difference it makes in their lives.
Hon. S. Robinson: It’s interesting, because I do. I have been part of a community where there was vociferous concern about having homeless people in their communities. I’ve had one around the corner from my house, in fact, in Coquitlam. There was certainly some opposition. It was a very successful program and actually moved people into housing.
This was actually, I would say, a program that had way less supports than what we’re providing, in terms of 24-7. Knowing that people were getting off the streets, were getting out of our parks, getting them out of our stream beds…. Because they’re already there. They’re in our woods. They’re in our downtown cores, wherever you go in this province.
Making sure that there are some resources and some assets for the community, to make sure that people are safe and that they are getting the services they need, is really critical, not only for helping those people but also for making sure that we don’t have people in our parks, we don’t have people on our trails and we don’t have people living along our rivers and in the back alleys of our communities. It’s not where anybody wants people to be.
One of the things that’s different about our government’s work is that we’re putting in 24-7 supports. That has not been the case, historically. We recognize that people need the kinds of supports that wrap around, that make sure that they have access to people who can help them when they’re having a tough time, when they’re having a rough day, when they get bad news in their life. We want to keep them focused on making better choices for themselves.
We’re investing significantly to make sure that not only are people housed but that they have services they can rely on. We’re working closely with the health authorities throughout the province, making sure that people can get the health care they need. It’s because we know that people who are homeless get very sick, physically sick, and we want to keep them out of our hospitals. We want to make sure that they get the kind of care they need, so that they don’t take up hospital beds that people need. There’s a whole bunch of interoperability, if I can use that word here, that’s at play.
We also know that…. One of the things that I have witnessed in many communities is that it also has a way of galvanizing communities. I know that we tend to focus on, and the media tends to focus on, the voices of concern, but there are voices, also, of support. That’s the other thing that I think is important to recognize. It galvanizes people to come together and provide support for people who are less fortunate.
I’ve seen faith groups come together and create comfort kits or welcome kits. Students in high school…. I want to give a shout-out to Kristi Blakeway, who has done some amazing work with students, first in Coquitlam and now in Maple Ridge, where she has students going out into the Downtown Eastside and into other homeless camps, connecting in real ways with people who are homeless and helping them reconnect with their families, because they’ve been so disenfranchised.
The stories of people finding their siblings, finding their children, finding their parents, after years of no communication, have been incredibly heartwarming. Again, it teaches our young people about how you help people who need it. There’s tremendous opportunity for communities to grow as a result of having an opportunity to make a difference in people’s lives.
M. Stilwell: Thank you, Minister. I would agree with you on many of those fronts. The previous government did a lot of good work across this province, and it’s good to see that you are continuing that work and making sure that communities are being supported.
One of the other questions I have…. I don’t know if this is a question that you can actually answer or that your staff will have the answer to. Is there any data that references crime rates going up or going down when these affordable housing units are put in place and people have started moving into the community? We talked about how, obviously, they’re already in our community. They’re in our parks. They’re in our stairwells. They’re out in front of businesses.
I’m just curious if you could provide any of those statistics to offset some of the noise that we’re hearing in the community.
Hon. S. Robinson: I appreciate the member’s question, because I remember in my community that those were similar questions that I had to face.
We are continuing to gather data, because I think it’s important to be able to go back to the communities to let them know how things have played out. What I can assure the member is that for land values, it has no effect. It doesn’t change at all. In terms of the crime rate, what we’ve noticed over time is that it actually drops.
M. Stilwell: Thank you, Minister. That’s good news. I’m happy to hear that.
The final question is in regards to comparing it to other housing units around the province. The comments in our community are that there is no other affordable housing unit to compare ours to. I find that obscure, because there are hundreds and hundreds in our province, around communities.
I think the difference, of course, for our particular affordable housing unit is that we have now found a permanent home for our cold weather shelter, which will be a component of the modular building that will be put in place. It will run just like the cold weather shelters have in our community for several years. It will follow the same rules of cold weather shelters, where people check in, in the morning. They have a curfew, and there are rules around drinking and drugs and all those things.
I’m just wondering if there’s any kind of comfort or anything that you can add to that that will help the people in the community hear that this is a positive step for our community.
Hon. S. Robinson: Again, I appreciate the member’s concerns, because it’s really hard for communities.
I remember going to an information session. I wasn’t even a politician. I was just a regular person. There was a cold/wet weather map program coming to my neighbourhood, in the local church. I had people in my neighbourhood very, very concerned. Some of them were getting a little intense and putting in block letters hard-to-read notices at homes around the neighbourhood. It was really hard to read. Then there were others who were just saying: “I’m really scared.”
I remember going to the information meeting and being a little bit surprised at how frightened people were. I had a chance to ask a number of questions about what their fear was about, because it got me curious about what was going on. I wasn’t afraid, but I also am a family therapist. I’d work with people from all walks of life, and I’ve had different experience and different exposure.
That was the thing that really struck me when I talked to my neighbours in my neighbourhood. These were friends. These were people where our kids played together. And finding out that it was about “I don’t know them, I don’t understand them, and therefore I’m afraid of them.”
It took some doing, and it took a lot of effort. But the whole neighbourhood changed after groups got galvanized and invited to volunteer, invited to come in and meet these people and find out that George, who’s the binner, and Fred, who seems to always sleep on this one sidewalk, and those three other people whose tents you see off by the river, but you’re always afraid to go in, are people who…. Life went sideways for them. There was a tragedy, or they made bad decisions. They just want a warm place to live and the privacy of a bathroom. They really want to be able to make a cup of tea for themselves at night if they can’t sleep. That really changed the feel in the community — when people went and volunteered.
There’s one story that I love. Someone said that they had volunteered for a few nights the week before. I said: “What was that like?” They said: “Well, you know what? I learned that that guy came down from Prince George. He was out of money, and he just wanted to go back to Prince George. He kept going to Labour Ready to see if he could get work, but he didn’t have work boots.”
That was the barrier. So this neighbour went and bought work boots, gave him work boots. He was gone two days later and working. He was able to move forward. Those are the kinds of things that I think are really important for communities to try and do — and try to create some bridges so that people understand how they can help.
M. Stilwell: Thank you, Minister. I would agree that we need to hear more of those positive success stories so that people can embrace it more than they currently do instead of fearing the unknown.
I’ll end with just giving a shout-out to Shayne Ramsay. You have a phenomenal person over there at B.C. Housing who does great work. You’re very fortunate to have him, and I thank him for the support.
T. Shypitka: Thank you, Minister, for giving me some time here. I’ll be fairly quick.
Affordability in rental housing units is really important all over British Columbia. The Kootenays certainly are not exempt from that. Cranbrook is facing a big shortage right now on housing units and rental units.
We have a proponent right now that wants to assist in this area. We have a trailer park in downtown Cranbrook. It’s legal but non-conforming. It’s about 60 years old, and it’s a trailer park. It’s a beautiful area. It’s situated on six acres, right downtown, close to all the amenities. It’s an ideal location, close to services and all that kind of stuff.
He wants to build it to go from 110 up to 300 units here. Before Bill 12, the Tenancy Statutes Amendment Act, 2018, was passed, it was going to cost him about $500,000 to demolish and to set up for some new units. Now it’s going to cost about $2.7 million, with some of the provisions in place that are making it a little bit restrictive for him to do this project.
The proponent suggests that the price paid per unit — the minimum price of $20,000 up to $35,000, I believe, on each unit — is part of that problem. It reflects mostly on what Lower Mainland prices are and not rural B.C. prices — i.e., these provisions wouldn’t be so prohibitive in the Lower Mainland, where real estate values are a lot more and you can put in $500K condos and things like that. Where he wants to do it, we just can’t get that kind of stuff.
Just a comment from the minister on that, if she sees that as being prohibitive to rural B.C.
Hon. S. Robinson: There are currently 60,000 people who make their homes in manufactured home communities. We think it’s really important to make sure that when there is going to be a change in the land use, they’re compensated fairly for the asset that they own, given that it is really tough to move a manufactured home.
The legislation said if there’s no other place to take it or if it’s not stable enough, then there needs to be some fair compensation for that asset, because there’s nowhere else for them to take it. As a result, they have no home, and their asset is really…. They can’t do anything with it. They can’t sell it. There’s no place to move it, so this legislation is really about making sure that those 60,000 people right across British Columbia in all communities have options available to them.
T. Shypitka: Yes, I realize that. Absolutely, they have to have a place to go to. That’s primarily what this project is all about.
As I said earlier, it’s a legal lot, but it’s non-conforming. It’s old. It’s about 60 years old. The infrastructure is pretty much done. Electrical is done. The sewer and water lines and things are collapsing and in need of desperate repair. If Murphy’s law is true with the folks there, most likely it’ll happen in the middle of wintertime. Quite honestly, to do the repair, to get rid of the electrical, to do all the other revamping, they probably won’t get the permits needed, because it is non-conforming.
This proponent wants to write it, make sure that we’re getting these people the homes that they need, affordable housing, and create some space in the Cranbrook area. Not to belabour this any further, it’s an issue, and I think we can work together and make this work out.
I was wondering if the minister would be at all in favour with getting together. I’ve got some discussions with the proponent tomorrow. When the minister could find time, would she be accepting of maybe talking to the proponent, getting together with B.C. Housing and seeing if we can work together and come to something so that we can get some affordable housing in Cranbrook?
Hon. S. Robinson: It’s music to my ears to work in partnership. I would love to hear from the proponent and would love to work with the member opposite and my staff team to identify ways to bring affordable housing in communities right across this province.
J. Sturdy: Thank you to the minister for the opportunity.
I wanted to talk a little bit about fixed-term leases. Certainly, I do understand the challenge that these leases posed to some tenants and landlords who are using the opportunity to adjust rents outside of the allowed amount or the prescribed amount. I know that the other option was to increase availability and ensure affordability. That’s really what the objective was — my interpretation, anyway — of prohibiting fixed-term leases.
I think we all generally support the thrust of the initiative. But in certain situations, there have been some unintended consequences that I wanted to bring to the attention of the minister, which are maybe specific to certain communities and not broadly an issue.
One of these issues that’s come up is in the resort municipality of Whistler. There is what’s called a phase 1 of condominium units, and there are hundreds of these units in the village itself. The objective of these phase 1 units is to rent them out. They’re for nightly rentals. That’s what they were created for. In fact, there’s a 219 covenant registered on title that allows them to be used as nightly rentals. That has always been encouraged.
Typically, what would happen is the units would be nightly rented in December, January, February, March, and for the balance of the year, a fixed-term lease would be put in place. So you’d have about a nine-month lease and a three-month opportunity for nightlies, and this has worked well for many, many years.
Unfortunately, it doesn’t appear that there’s a mechanism for that to happen any longer. The unintended consequence is that the landlords have tended to default to nightlies because they know what kind of incomes they can make. As a result, we’ve had an actual shrinkage of…. It’s not long, long-term rental accommodation, but nine months in a tight, tight market is an important addition to the inventory.
I wondered if the minister or staff had any suggestions. Is there any way…? Has this been considered? I know this is an unintended consequence. I’m sure this is not the objective here, but ultimately, this is reducing some of the longer-term rental opportunities in Whistler, and I wondered if there were some suggestions from the ministry in terms of how we could deal with this.
Hon. S. Robinson: I want to assure the member that this is something that staff are aware of in terms of…. I know he knows that we wanted to make sure that we had provided security for renters. What was happening is they were renting and in order to circumnavigate rent control…. A new lease would allow a significant increase in rent, so we needed to put a stop to that.
The situation that he’s mentioned in the resort municipality of Whistler is something that staff are monitoring closely.
J. Sturdy: So it’s fair to say, then, that this would be a circumstance that will continue? Is there any…? Perhaps I’m interested in how the ministry is monitoring. Are there some statistics that are being generated? How is that monitoring actually working?
Hon. S. Robinson: Through the residential tenancy branch, we look at disputes and the kinds of questions that are being asked. That helps to inform us about what’s happening on the ground.
J. Sturdy: I’m not sure that following things through the residential tenancy branch is really going to illuminate the ministry in terms of the scope or the magnitude of the issue. The question is that we have hundred of units in phase 1, and if those…. They just won’t be rented out. That’s the bottom line. They will not be available for a fixed term. They’ll be going to nightlies, and that’s it.
You’ll have hundreds of units, potentially, that…. Some units, admittedly, would be rented out on a nightly basis year-round, but the majority of them, I would contend, would have been nightly rented for a three-month period, around January, February and March, and then go to a fixed term for the balance of the year. If there’s no opportunity to have vacant possession of the property at a guaranteed time, they just won’t be made available.
I’d suggest that there needs to be…. If there’s a consideration around creating an opportunity to make this work for both tenants and landlords, then we need some better data. Dispute resolution is not going to solve that.
I wonder if there’s anything that I could do to help the minister, or whether there’s anything the RMOW can do to perhaps get better data in order to resolve this problem. It’s neither good for the landlord, the property owner, nor the tenant or the prospective tenant in a very tight rental market.
Hon. S. Robinson: I appreciate the member’s concerns, but the piece that we’re really very focused on and that I think is very critical is making sure that the tenants have security of their home, right? Nine months is a very short-term opportunity, but it’s not ongoing. People need security. They need to know that they have a home for longer, I would imagine, than nine months in most communities.
That’s what this fix was about, in terms of addressing the fixed-term-lease loophole. We felt it was really important to put an end to that practice that some landlords were taking.
I also want to remind the member — and if he’d like, he can certainly share this with his community — that we have the rental task force that is going to be out and about in the community. We look forward to hearing about some of these challenges and are certainly willing to hear about how things are playing out and what more we can do to address the needs of landlords and tenants in this tight rental market. We know that there’s more to do, and that’s certainly an opportunity to hear more specifically about what’s happening in the member’s community.
J. Sturdy: I’ll, then, take this opportunity to bring to the minister a very similar example, which perhaps you won’t have much sympathy for, because it is not, again, a longer-term situation. In the situation of agricultural communities, again, farmers will have seasonal agricultural worker housing, either owned or rented, either on farm or not on farm.
Typically, that accommodation is used during the growing season by seasonal workers. Then in the off-season, it would be rented out — again, on a fixed-term basis — for approximately six months, generally. That provides an opportunity for the farmer to generate some revenue. But the bottom line is that it needs to be vacant for when the growing season starts.
In the case of a place like Pemberton, it works very well. You have the potential for a six-month tenancy in the winter where seasonal workers in the RMOW, in the resort, can take advantage of that six-month tenancy over the winter, and then fill the same accommodation with farmworkers in the summer. So it’s a win-win. The resort grows by several thousand people in the winter and then shrinks a bit in the summer. It’s quite an advantageous circumstance for seasonal workers, both summer and winter.
Again, agriculturalists, farmers, can’t afford to not have that property vacant at the beginning of the growing season. I know personally of circumstances, in fact, where there are dozens of units in Pemberton today vacant, and they have been all winter, because the landlords need that property available at the beginning of April, typically, for the growing season.
I know this wasn’t an intended consequence, but the unintended consequence is an actual decrease in worker accommodation, typically. And I know, again, in Pemberton it’s a unique circumstance. You might not find that situation in other agricultural communities. But to create some certainty for the landlord or the employer and to help them generate a little bit of revenue in what would otherwise be empty….
I recognize that it’s not a long-term accommodation solution. But in the situation that we face these days, I would suggest that every bed counts. I will encourage the people I know that have agricultural accommodation to certainly submit to the task force. But I wanted to bring it to the minister’s attention. If she has any suggestion for me, I’d certainly take it back to my community.
Hon. S. Robinson: I appreciate the member coming forward with this very unique situation in his community. I’ve just checked with staff, and they’re aware of it. That’s something, again, that they are monitoring.
I really want to encourage the member to invite everyone to participate, to provide ideas and solutions and to describe the situation to the renters task force. That is why they’re going out, because we think there are lots of solutions for the housing crisis and housing affordability in communities. The more we can hear from people…. It helps us to identify what some of the opportunities are for making housing more accessible and more affordable for people throughout the province. I hope that the member will be able to encourage people to do that.
J. Sturdy: Thank you to the minister. I’ve just had a couple of notes passed to me that it’s not a unique situation for Pemberton. It is a provincial problem, and we’ll need to find a provincial solution.
S. Sullivan: I wanted to ask the minister the definition of the “primary residence.” How does the ministry define that?
Hon. S. Robinson: That’s actually a tax policy question that is dealt with at the Ministry of Finance.
S. Sullivan: Last week the minister’s government announced a ten-year rental construction plan. The plan is $1.9 billion for 14,000 units of affordable rental. Now, page 81 of the budget says, under affordable rental housing, $1.9 billion and 19,250 units. Can the minister explain the difference?
Hon. S. Robinson: The numbers are an addition of two different what I’ll call buckets. We have 14,350 units. That’s the $1.89 billion that we announced.
There were another 4,900 units that were projects already sort of in progress, but the affordability of them wasn’t working. Their numbers weren’t working. They weren’t affordable. So our government added an additional $75 million to those 4,900 units so that they would achieve the affordability that they needed in order to be successful, in order to just better meet the needs of British Columbians.
S. Sullivan: Okay. I just noted that Rob Shaw had felt that some of this discrepancy was an announcement from previous governments of the work that they had done. I just wondered if that had been part of it.
Hon. S. Robinson: Thank you for the question. I appreciate it. My understanding is that in 2001, a whole bunch of projects from an earlier government got cancelled. Our government decided not to do that. We didn’t cancel any projects. We thought that would be an unreasonable thing for any government to do, so we carried on with projects.
There were 4,900 units that were already being considered and already being identified that weren’t going to work. The affordability on them, the rents on them, were not going to work for British Columbians.
We had two choices to make — well, three choices. We could cancel the projects. We could leave them alone and have rents that weren’t affordable and weren’t going to hit the mark for British Columbians. Or we could add a bit more money as a new government — $75 million, in fact — in order to make 4,900 units achieve some of the affordability goals that people were saying that they needed. This was about what British Columbians were saying.
We felt it was most prudent to actually keep these projects moving forward, but they needed money. They needed more resource because the numbers just weren’t going to work. We added an additional $75 million to that pot in order to make the numbers work better so that British Columbians can have the affordable homes that they need.
S. Sullivan: Some numbers came out from the city of Vancouver on the vacant home tax. I’d just note that a number of homes did not declare and that there are probably going to be some challenges there.
Also, the numbers were quite a bit lower than what people expected. I’m just wondering if the minister has had a chance to review that. Is the program working as she hoped it would?
Hon. S. Robinson: The member asked a question about the Vancouver empty home tax. I want to remind the member that that’s a Vancouver program. It has nothing to do with our government. It’s not anything that we have anything to do with. As a local government, I’m sure the member is well aware, they’re independent and autonomous and get to make their own policy decisions within their purview. This is a program that Vancouver implemented. They’re free to do with it what they will, because that’s their purview.
Noting the hour, I move that the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:25 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of Supply (Section B), having reported progress, was granted leave to sit again.
Committee of Supply (Section A), having reported progress, was granted leave to sit again.
Hon. D. Eby moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m. tomorrow morning.
The House adjourned at 6:27 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF
CHILDREN AND FAMILY
DEVELOPMENT
(continued)
The House in Committee of Supply (Section A); S. Chandra Herbert in the chair.
The committee met at 2:51 p.m.
On Vote 18: ministry operations, $1,792,612,000 (continued).
L. Throness: Well, thank you, Chair, for the continuing opportunity to ask questions of the Minister of State for Child Care or the minister — whoever wants to answer them. I want to continue with taking up some issues that we touched on last week.
The first one is that we’ve received some new numbers from the ministry. Last week the minister said that 72 percent of those who had sent in contracts had opted in. I asked the minister about the remaining 28 percent and received no answer. Could the minister tell us whether 28 percent were rejected, and could she tell us how many were rejected?
[J. Rice in the chair.]
Hon. K. Chen: Just to give the member opposite an update in terms of the numbers. In terms of organizations, the estimated eligible organizations are at about 2,850. The number of applications…. Sorry, the number of organizations who have opted in to the plan currently stands at 1,570.
Again, more applications will continue coming. They are coming in every single day. It is normal for applications to continue to come back to renew their contract in May and June. We have approved over 1,100 applications. The applications not approved at this time are only at about 56. There are another 429 organizations where we will need more information. Then there’s another percentage of applications that we’re continuing to process, and again, applications and contracts will continue to return every single day.
If you also look in terms of facilities, 3,300 facilities are eligible for this program. The amount of facilities…. There are over 2,000 facilities that have applied to opt in and pass on savings to parents as of April 1. We have approved a good number of them. Of course, if you look in terms of spaces, the 3,300 facilities represent over 50,000 spaces. The amount of those spaces…. There are 33,000 spaces from those providers who are applying to opt in to our program.
Based on the numbers I am presenting to you — and I would be more than happy to share the numbers if you need a copy of the updated numbers — you can see that a majority of providers are opted in to our plan. There are more to come. It is very normal for providers to return their contract in May and June as well.
We have also received new contracts, new providers who have never received government operating funds, who are also now joining our program. So as we are expecting, a good majority of children in licensed child care under the age of five will be benefiting from this fee reduction initiative.
L. Throness: The minister is snowing us with a whole bunch of numbers, and some of them are contradictory. For example, she told us last week that 3,444 contracts were sent out. Now she says only 2,850 providers are eligible to opt in.
I would further suggest that last week we thought that 46 percent of providers had opted in. Today we learn that only 1,109 have been so far approved to pass on savings to parents. That’s a total of 32 percent of the 3,444 contracts that were sent out.
Will the minister agree that this is an indictment of the government’s policy, not a credit at all?
Hon. K. Chen: I just want to clarify, because I understand that this is a very big undertaking, and there are a lot of numbers. Just let me clarify that on March 18 — we mentioned that — we sent out over 3,400 contracts. That includes providers who will be eligible for this program and providers who would not be eligible, such as before- and after-school care. Those are the contracts of the providers who already have been receiving operating grants from our government. Those are the contracts that we’ve sent out.
During the past few weeks, we have narrowed it down. The number of organizations that are estimated to be eligible are at about 2,850 providers — 2,850 contracts and providers — which represent 3,300 child care centres. That represents a total of over 50,000 spaces.
If you look at the number of spaces, we have 50,000 spaces that are eligible under this fee reduction initiative. Among those spaces, providers that represent about 33,800 spaces are applying to opt into our program. That is a pretty good number, and that is the majority of the licensed spaces, with those providers applying to opt into our program. We have approved over 22,000 of the spaces, as staff are working hard during weekends and evenings and every single day, continuing to process a large number of applications that are coming in.
In terms of the number of spaces — which is really crucial and is representing the number of children and families who will be benefiting from this plan — for 65 percent of the spaces, the providers are opted in. They’re applying to opt into our program. Again, we will continue to process applications.
These are the numbers that…. We’ve made a public commitment to process applications that were received before March 27, so this is the updated number that we have from April 20. I’m happy to provide this report.
L. Throness: I would just simply point out to the minister that the government, according to its performance management report in 2017, funds 106,000 spaces. So far, only 33,800 have opted in. That’s one-third. I would simply remind the minister of that number.
She has failed to answer the simple question I asked, which is: how many have been rejected? All of those businesses are likely to go bankrupt if they’re rejected by the government. I’d like to know how many businesses the minister is condemning in that way.
And a question for the minister to follow up. How many of those 1,109 who have opted in are market-based, and how many are non-profit providers?
Hon. K. Chen: I think I heard three questions from the members opposite.
The first question…. And let me just clarify. I did answer your first question in my first answer. I did mention that when I was giving out the numbers. The number of applications that are applying to opt in and are not approved at this time represents 56 organizations, and that’s among the 1,570 organizations. So only 56 organizations are not approved at this time.
I also want to take this opportunity to clarify that it doesn’t mean that they are rejected. It is just based on the information that they have provided to our ministry that, currently, they are not approved for this program at this time. But they are always welcome to connect with us with more information or new information about their facilities’ needs and with more information to help us to understand their application better. They can always connect with us, and we definitely welcome those providers to connect with us at any time.
Again, this is a fee reduction initiative that providers can join any time. We’re only one month in, and we already have a good majority of spaces and families and children that are going to benefit from this program.
Another thing I think is important to note is that providers who are not approved at this time will continue to receive their base child care operating fund. They will continue to receive that funding, because again, this child care initiative is an option for providers to join in when they are renewing their contract to get their operating fund and support from our government. It’s an option for them to join to help us to work with families to make child care more affordable and, at the same time, get a 10 percent increase to their operating funding for the eligible spaces under this initiative to support their operation.
The second question the member opposite has is about the 106,000 spaces. Those are the spaces that represent all children and all care types from the age of zero to 12.
For this specific fee reduction initiative, the first affordability fee reduction initiative, we are funding the children with the costs that are highest, which is zero to five. As the member may understand, zero to five child care is the most expensive type of child care, and that is why we want to start with this fee reduction initiative focusing on zero to five. That is why the eligible number of spaces is at around 50,000 spaces.
Later this year we will have a new child care benefit. That is a totally different program, and it’s, again, another affordability measure to help more families, with a larger number of families who can be applying for the new program to make their child care more affordable.
The member opposite’s third question is about the numbers we currently have and what percentage are non-profit and for-profit. Staff are really working hard to go through applications at this moment, because we really want to make sure the applications can be processed so more fee payment and then fee reduction can go out to families.
They are focusing on processing applications, and we are happy to give you that number. We currently don’t have a breakdown in terms of how many are non-profit or for profit, but we’re really happy to provide that when the time comes. Again, we continue to process applications, and later on we can provide you with the information that you need.
L. Throness: Perhaps we can have that information tomorrow. I would appreciate getting that.
I said that two of the priorities on the child care file would be the best interests of children and also to be driven by evidence. All the academic evidence says that better-quality child care has fewer providers so that there’s consistency in provision of care for the child. But tying opting in to fee reductions means that, all over B.C., parents are pulling their children from providers who don’t opt in. This is disruptive to a child’s life, as they are tossed from one provider to another.
By disrupting consistency of care through its policy of tying in, government is lowering the quality of child care. Will the minister withdraw the offending policy that is causing conflict between parents and providers and grief to children?
Hon. K. Chen: I don’t see any conflict between making child care affordable and high quality. I also don’t see any conflict between providers and parents, especially. Through our engagement with hundreds and thousands of providers, professionals and parents in the sector, I think many people share the same vision of how it is crucial for families to have affordable child care, high-quality child care and, also, to work alongside with providers. We need to continue that work with providers and professionals in the sector to make sure that we can build a better system.
In fact, we have heard from many providers, who have been sharing with us that they have been trying their best to keep their fee affordable. They want to give the best quality of services to families, but during the past years, the costs of their operation have continued to increase. They have no other way to adjust that cost pressure other than putting it on parent fees. That’s why our government is stepping in to support providers with their operation and to find a way to work with providers to make child care more affordable.
I think that’s also a result of why we also see some new providers who have never received a government operating fund and who are contacting us and applying to have a contract with us to receive the CCOF, the child care operating funding program, and also to opt into our new fee initiative in order to make child care more affordable. They see a business opportunity right there to help them to provide the best services possible and to make child care more affordable and serve the families.
L. Throness: A follow-up question to that. How many have applied for CCOF since the budget?
Hon. K. Chen: Currently there are about 2,700 contracts that have been returned. It is quite typical. We looked at previous years’ results. It’s typical for providers to continue to return their contracts in April, May and June.
L. Throness: I guess the question that I was asking was: how many newly applying CCOF providers have applied since the budget, people who have not been involved before with CCOF?
Hon. K. Chen: The latest number we have is 19 new contracts.
L. Throness: I want to give the minister an example of what bothers 70 percent of providers in B.C. This was sent to me by a provider. I want to quote from a conference call that the minister of state held with providers in March. It’s on YouTube. Anybody can see it.
The question was asked: is the ten-year vision to make everyone non-profit? The minister then said, and this is verbatim: “No, that is not our goal. Currently we know…. No, that’s definitely not our goal. Our goal is to make sure parents have more choices. We do have to look at how the first few years are going to go, to build our four- to seven-year plan, but I think at the end of the day, parents want to have more choices and different options.”
The minister says now that a non-profit system is not her goal, but then she adds in a qualifier: currently. Then she refers to the ten-year period as different from the four- to seven-year period.
It seems to me, interpreting what she said, that currently she has to work with market-based providers because she has no other option. They’re 70 percent of providers. But in the long term, the NDP will bring in their long-term plan, which has been lifted from the Coalition of Child Care Advocates, as a public-only, non-profit plan.
My question is this: will the minister admit that despite her current plans, her long-term ideal is the $10-a-day non-profit system she borrowed from the Coalition of Child Care Advocates?
Hon. K. Chen: First of all, I would hope that the member opposite does not put words in my mouth. Also, I just want to quickly correct…. I don’t know where the member opposite got the percentage from, but I did report the current numbers that we have, which is that among the 3,300 facilities that are eligible for this program, over 2,000 facilities are opted into this fee reduction program. You can see that’s a pretty good percentage of the number. The majority of providers are opted in.
Then, if you look at spaces, 50,000 spaces are eligible for this program. So 33,000 spaces, of the providers, are applying to opt in to the program, which represents 65 percent of the spaces — that are applying to opt in to this program. I just want to do a quick clarification of that.
The number, actually, will continue to grow. This is the minimum number. Contracts are still coming back. We’re still processing applications. This is only the first month in, of a new affordability initiative, so we’ll see that number continue to grow in the coming weeks and months.
To answer the member opposite’s question about non-profit, private and different sectors…. I’ve been really clear in my message that we want to work with all providers. We want to work with non-profit, private, small or large.
There are family providers. There are in-home, multi-age providers. There are different types of providers who are providing very important services to our families and children in B.C. communities.
We want to continue to work with them and make sure we continue to make a better child care system together, since families have been waiting for a long time for that support. If you look at our first fee reduction initiative, private and non-profit providers have totally the same level playing field.
L. Throness: I would simply remind the member that I am not putting words in her mouth. I am taking words from her mouth, the words that she said. Anybody can go to YouTube and verify those words.
She failed to clarify exactly the question that I’ve asked. I had a look at the clause of the contract that every provider who opts in has to sign. It is very intrusive. Let me read a sentence from clause 4.4 of the contract. “The province may, in its discretion, approve or reject the proposed parent fee increase or stipulate an alternative acceptable amount for such increase.”
The state will put a ceiling on what it doesn’t like and also stipulate or command the price it prefers for child care across the province. I can predict what will happen here. It is classic, basic economics. Child care spaces will disappear under this scheme.
Let me give the minister a current example. Venezuela set the price for a kind of bread, and then it immediately disappeared from the shops. Why? Because in their attempt to make it available to all, the price was set so low that bakers could not recover their costs of production, so they didn’t produce it anymore.
Will the government learn from Venezuela’s mistake and realize that price controls will cause child care providers to exit the market and that child care spaces will disappear with this policy?
Hon. K. Chen: Let me just clarify and look at the facts. The clauses in the contract are to make sure that we’re protecting taxpayers, to ensure that there’s accountability when our government is making a very significant investment in child care and also to make sure that we protect parents from unreasonable fee increases.
A very important point that I need to make is that the contract does not eliminate fee increases. We understand that many providers face cost pressures, and if there’s a cost increase that’s totally beyond their control, we definitely want to work with providers to make sure that they can adjust their fees, and then we can work with them to see how we can work together to make child care more affordable.
The other thing I think is important to point out — and to answer the question as well — is that we are not, for example, making a ceiling in terms of the fees. We’re not setting fees. We’re not setting prices. We’re not controlling prices.
One good example is that we’ll be looking at the original median of the current fee charges to compare the providers’ fee charges. That regional median is based on the market-based system — that is, decided by the market.
L. Throness: Well, I would beg to differ with the hon. minister. Even if the government did not make use of this clause, which it is using, it can stipulate or command the price, and the very existence of that clause brings uncertainty into the market so that market-based providers do not have confidence in their future. Market-based providers are telling me that they are not opting in willingly. They are opting in in order to save their business.
I want to make a suggestion to the minister that would make her into a star today. If she would drop the clause that requires all providers to receive approval for fee increases and not allow the government to stipulate them, they would be free to do what they do best. Parents would be able to get a fee reduction with no disruption to their children’s care and market-based providers would be able to have some confidence in their future and begin to create new spaces.
Government would be happy. The ministry would be happy. Providers would be happy. Parents would be happy. Would the minister withdraw this intrusive and offensive clause today?
Hon. K. Chen: When we are working on this comprehensive plan and looking at how we address the affordability issue, we have looked at other jurisdictions that have affordability measures to make child care more affordable. We noticed that in some jurisdictions they only create, for example, a child care benefit or a child care tax credit to parents directly, and that does not address the fact that child care costs can continue to increase significantly. The example in B.C. is that during the past ten years, child care costs have gone up 35 percent, and that is a very significant increase.
That is why we are looking at different ways of how we can address child care affordability, and that is why we have two initiatives. The first one is the fee reduction initiative, and the second one is the new child care benefit that will go based on direct parent applications.
If you look at the clause, to address the member’s question, we are ensuring that there’s accountability to parents, to taxpayers and also to providers — to ensure that we know that the providers all have the best interests of their parents and their children at heart. We are ensuring that providers have the same level playing field, that providers who have applied to opt in to the program are doing their best to pass on savings to children and families, because we know that providers also enter this field because they care so much about serving their families and children.
L. Throness: I want to continue to quote from the government’s own information paper, a frequently asked question paper, which says that before April 1, ask your child care provider if they are opting in. Parents will be able to check on line to see if their provider has joined the child care fee reduction initiative and will be encouraged to speak to their provider about the fee reduction.
They also encourage parents to report on their providers, as the FAQ says that in April, “if a parent isn’t seeing the fee decrease they were expecting, they can call 1-888-338-6622.”
Was it the government’s intention to coerce providers into opting in by pitting parents against providers and placing them in the hugely uncomfortable position of pressuring the very people who are caring for their own children?
Hon. K. Chen: I do not see that there’s a conflict. That’s between parents and providers. The facts that we want parents to have, the information, is to ensure that there’s transparency for parents to know if their providers have opted into the program.
We definitely want to work with both parents and providers as we continue to build a better child care system in B.C.
L. Throness: I want to continue to quote from the government’s FAQ. The government has threatened providers who choose not to opt in this year. Here’s a quote from a government frequently-asked-questions paper. Declining to opt in “will not impact your eligibility for base CCOF next year. However, this may impact eligibility for the child care fee reduction initiative in 2019-20, which will be reviewed during CCOF contract renewal early in 2019.”
I would like the government to be transparent about its intentions and clarify this vague threat for the public. Exactly what would be the consequence next year for providers who don’t opt in this year?
Hon. K. Chen: We did hear from providers that some of our FAQ language created some confusion. So we did update it, the FAQ, and this is the latest version to clarify.
It says: “Participation in the child care fee reduction initiative is optional.” Providers can choose to apply to opt in at any time during the 2018-19 contract term. However, “the ministry encourages providers to ‘opt in,’ as the initiative provides funding to help licensed providers to reduce their parent fees, which will help to keep their program competitive with other providers in the community, while also supporting families in their programs by providing them with a break in their monthly child care costs.”
“If an eligible licensed provider chooses not to enrol in this voluntary initiative, they will remain eligible for their base CCOF, child care operating fund, rates.”
The purpose of the FAQ is to ensure that providers know that this is an option for them when they are renewing their contract to receive government operating funds and that this is not going to impact on their base child care operating funds.
L. Throness: Well, that wasn’t the question. The FAQ says: “This may impact eligibility for the child care fee reduction initiative.” I wasn’t talking about CCOF.
I want to continue on to quote from another February ministry frequently asked questions, which may again have been changed since then. It says: “At this time, participation in the child care reduction initiative is optional.”
Now, I had a friend, a politician, who told me one time, many years ago, that everything in politics is at this time. It may change tomorrow. At this time — you have to watch that phrase.
The FAQ says: “At this time, participation in the child care reduction initiative is optional.” This obviously indicates that in the future, participation will not be optional. When will participation in the fee reduction initiative no longer be an option? What exactly are the minister’s plans going forward?
Hon. K. Chen: Our three-year plan and our three-year budget are very clear. It is an option. It is optional.
We will continue to work with providers, all providers, regardless of who they are — private, non-profit, public, small or large, or multi-age and family. We want to work with everybody as we continue to build this child care system.
L. Throness: In three years, it may not be optional. I would simply note that for the record.
I want to ask a few questions about no-licence-required providers. No-licence-required providers can’t apply for the fee reductions, although they are delivering quality child care, just like licensed spaces, just in a more intimate context that many parents prefer.
The government could create thousands of spaces right away if it allowed no-licence-required providers to opt in to the fee reductions. Why would the government penalize no-licence-required providers and the parents who value this form of child care, and would she allow no-licence-required providers to apply for the fee reductions?
Hon. K. Chen: Licence-not-required providers are definitely an important part of the child care sector as well. We also want to note that licensing provides the minimum standards and monitoring mechanism that are required for child care facilities. That is why it’s important to work with licensed child care providers as well.
We have heard from licence-not-required providers. Many of them are interested in becoming licensed so they can expand their services and can add more seats and spaces for their service. That is why we have provided…. We will roll out a start-up grant to work with licence-not-required providers to help them to become licensed if they wish and also work with them and continue to build a better child care system.
We’re also working hard with local child care resource and referral centres, which do a lot of support to licence-not-required providers, to look at how we can, through the work of child care resource and referral centres, support the work of licence-not-required providers.
L. Throness: Would the government affirm that no-licence-required care is safe for children even if the provider does not have ECE qualifications?
Hon. K. Chen: I agree with the opposition member. I believe strongly that every child deserves to be receiving safe and quality child care and early learning services. B.C. is a very diverse community. Many families have different needs and want different types of services.
The current licensing requirement allows providers who are caring for up to two kids to not require a licence. Many of them work closely with our local child care resource and referral centres. Many of them are actually registered with local child care and resource referral centres, which help to work with those providers to ensure the quality and safety of their services.
The Chair: Members, I’d like to suggest a five-minute recess.
The committee recessed from 3:59 p.m. to 4:08 p.m.
[J. Rice in the chair.]
L. Throness: I’m going to surrender the floor to the member for Columbia River–Revelstoke. He has some special questions about the Columbia Basin Trust, and so on.
D. Clovechok: I appreciate things being surrendered to me. It’s always good.
On a solemn note, I just want to make a note of the tragedy that’s happened in Toronto today. Our prayers and everything go out to the families that are all affected with that. It’s certainly not something that we in Canada know a whole lot about.
Anyways, I want to thank the minister for the opportunity. She and I spent some time last weekend at a Secwepmec water ceremony and the water conference about all things water. She ended up with a toothache and gave me a cold. I’m blaming her.
I just want to thank the staff for being here today on all things Columbia. I always enjoy asking questions to people that know infinitely more than I do, so it will be an enjoyable time.
I want to start with the Columbia Basin Trust, and I know that this is near and dear to the minister. We’re both from the Kootenays. When you put the ideological differences from a party perspective aside, we are from the Kootenays, and that makes us special. So I want to spend some time on that.
I know that the Columbia Basin Trust is very near and dear to her heart, simply because of the fact — amongst other things, obviously — that her husband, I’m told, was one of the architects of that trust. He should be applauded, because it’s really, really unique and incredibly special. It’s something that we in the Kootenays…. It’s near and dear to us. I did want to make mention of that, because people of vision need to be recognized.
That said, too, I also want to thank publicly the staff of the Columbia Basin Trust: CEO Johnny Strilaeff, and then, of course, Rick Jensen, who is the chair. We all know of the untimely death of Neil Muth and what had happened. I want to publicly bring to the attention of everyone the leadership that Rick Jensen displayed during that time.
CBT, as we all know, is a family. They act like a family, they behave like a family, and that hit them very hard. If it wasn’t for Rick Jensen’s leadership at that very critical moment, I think things could have come off the rails. So I do want to recognize Rick and, of course, Johnny for everything that they’re doing.
Now, the minister probably knows I’m not going to be beating up on her on this file a whole bunch — actually, not at all because of the value that CBT provides from all of the different programs that it supports and for the constituents that I represent and the constituents that, to the minister, she represents.
I do have a few questions that I want to give the minister an opportunity to go on record. So let’s start with that. It should be a couple days here by the time we’re done.
I’m wondering if the minister could provide us with an understanding if there have been changes to the CBT in the past year, since you’ve assumed…? Well, nine months, as somebody told us earlier on in the House. But who’s counting? Were there any changes? Does she see any forthcoming changes to CBT and its structure as it is today?
Hon. K. Conroy: Before I begin, I want to introduce my staff. Les MacLaren is the assistant deputy minister for electricity and alternative energy, and Kathy Eichenberger is the executive director for the Columbia River treaty.
I want to just add a bit to what the member said. My husband was involved as a founding board member, but there were many politicians from the region. Not only provincial politicians but many municipal politicians, as well, and people from the basin who were very keen to see this happen — to see some restoration of what was lost during the original building of the dams when the original treaty was signed.
The member is right. It’s been an incredible benefit to the region and to people that live in the region. We probably will agree on most things.
I also want to acknowledge the work that Rick Jensen has done, because it was a difficult time last year with the trust, and he’s been very good in his role as chair. He has done an excellent job in that chair position. And Johnny Strilaeff coming into his job as he did, which wasn’t something that he had planned on, that’s for sure. He has done an excellent job and working with the staff throughout the basin. It’s been an interesting time, but the board and the trust are moving ahead in a very positive way.
There have been no major changes. There have been some changes to the board members, as happens. The latest change…. We’ve had a resignation of a board member due to health reasons. We will be appointing the new board member soon.
We have stayed on task with the strategic priorities that were being implemented by the trust. The 13 priorities were gathered when the trust went around the basin, did their consultation and came up with 13 priorities. Those priorities are continuing to be worked on throughout this process.
D. Clovechok: Thank you for that answer. It’s what we were hoping. So there are no structural changes or anything like that, from what I just heard.
I would like to ask a question to the minister regarding a report that was done in 2012 called the CBT autonomy report. We know that CBT is really a unique entity. It’s a Crown corporation that is pretty autonomous from government.
The report that came out in 2012, by a lawyer by the name of Don Lidstone, suggested that the government was not treating the CBT, from a policy perspective — and this came from the report — as the unique, semi-autonomous corporation that it was intended to be. It was created, obviously, in the 1990s. As I mentioned, CBT is not just another Crown corporation, but it is very, very unique in the sense that it runs pretty much on its own — with, of course, direction.
Can the minister tell us whether or not she’s revisiting this question about the relationship between the provincial government and CBT’s autonomy, or will that remain the same?
Hon. K. Conroy: The member is right in that it is a somewhat unique relationship between the trust and the government. There is a memorandum of understanding that lays out that relationship. It has been a long-time understanding between the government and the trust. The memorandum defines the history as well as the commitment between both entities. The trust has an accountability to the basin and the residents, but it also has accountability to the government in that it prepares service plans, just like other Crown corporations do.
The government doesn’t get involved in establishing the setting of strategic priorities or any of the trust plans in any way. As a minister, I’m involved in overseeing appointments to the board, things like that. But as far as the actual day-to-day operations, that is up to the trust.
D. Clovechok: CBT is incredibly unique, as we all know. Many members in this House don’t really understand the potential and the power that it has. When they do, they’re very envious and wish that they could be part of it. I know, yeah. Don’t say that out loud. Bad Doug.
In any event, the uniqueness, as you just mentioned, is…. I think, as an entity, it’s so important that we maintain that. There is an MOU, and I understand that.
My question to the minister is: in your current portfolio that includes this file, do you plan on adding anything or changing anything, actually making it legislatively viable that this autonomy will be protected not through an MOU but, rather, through actual legislation itself? Is that a possibility?
Hon. K. Conroy: The member is right. It is a very unique organization, and right now there is legislation through the Columbia Basin Trust Act that establishes the uniqueness of that organization. As I look at it right now, it’s working very well, and I wouldn’t think that we would change legislation if there’s really nothing to fix, so to speak. I think it is working extremely well.
D. Clovechok: I agree. I heard one comment about if it’s not broke, don’t fix it. It’s okay. I read a book one time that says — a leadership management book, a senior management book — if it’s not broke, break it. That way you’re always moving forward.
That said, I do want to thank you. Those are all the questions I have on the CBT. It’s, again, an entity that is appreciated, and it’s valued. It makes such a critical impact on the people of the basin, which is as large as France in terms of area. I know the folks back in my riding and in Kootenay East and Kootenay West and Nelson-Creston and all up to Valemount. The member for Prince George–Valemount is also….
I’ve got a couple more things. I’m not done yet. No worries about that. It could take a couple of days.
In any event, I do want to thank the minister for that, and hopefully, we can continue the way that we’re going. From what I’ve heard today, that’s a relief that there are no major changes pending, because it’s working really, really well. And as long as that autonomy is protected, I think that’s really important.
I’ll shift gears a little bit and go to the Columbia Power Corporation, the CPC, and I’ve only got a couple of questions on this. As the minister know, the CPC was created to build certain hydroelectric projects, and she knows that these projects are now completed.
Inside of those projects…. When it all started, there had to be a certain number of employees that were needed to address the various projects as they were designed, built and administrated — as most projects are required. Again, those projects are finished.
Today, from what I understand and the knowledge that I have, CPC has some custodial responsibility still relating to the contract and management of the projects by Fortis, but these responsibilities certainly do not necessarily justify the level of staffing that the CPC has and could at one time justify.
With that as a precursor, can the minister tell me if the CPC has reduced its administrative costs, including salaries, since the last project, the Waneta expansion project, was completed? If so, can the minister provide details about the size of the CPC today and since that last project was completed?
Hon. K. Conroy: Yes, the projects are all completed. The last one to be completed was Waneta, and that was just successfully resolved, the final completion, on April 1, actually. They finished all the warranty issues that happen when you build a major project like that, which was hugely successful and — you’re right — created significant employment throughout the region. It has just done the final work on that, so some of the staff from that will be laid off.
[R. Leonard in the chair.]
One of the things that the Columbia Basin Trust and the Columbia Power Corp. did in cooperation is to work together to see how they could share employees in administration positions. The last couple of years they’ve worked to bring in shared services around human resources, administration, payroll, finances and things like that so that there would be an economy of scale — how they could save money on personnel by doing that.
That’s something that they are doing. They’re still continuing to look at ways that they can save money by ensuring that if we only need one person that can do the job that two might used to have done…. That has been happening — and all the time making sure that the personnel is in place to continue overseeing the existing power projects that provide benefits back to the basin, to the trust and to the government of B.C.
D. Clovechok: Thank you, Minister, for that answer. Just to follow up on that, then, so that I’m clear. Is the administration responsibility for CPC then going to be transferred over to CBT so that they’ll actually oversee the CPC? So many acronyms here — trip over my tongue pretty quick.
If you could clarify that for me. Will CBT actually be assuming the administrative role over CPC?
Hon. K. Conroy: Just from your last question before that…. CPC, Columbia Power Corp., has 11 staff that work with the corporation. Also, there are ten staff who work for both the power corporation and the Columbia Basin Trust. That’s down from 50 staff from three years ago. That’s those numbers for that.
The Columbia Power Corp. remains the manager of the power projects, including Brilliant, Waneta, now, and Keenleyside. They were always looking at ways to streamline services, so it is something that’s being looked at: are there ways that we can streamline that to make it more cost-effective but ensure the same services are happening throughout the basin? CBT, in cooperation with CPC, is definitely looking at what the options are, and we’ll be looking at that in the future, but no decisions have been made yet.
D. Clovechok: Thank you to the minister. Have you done an estimate in terms of how much money could possibly be saved if all those administrative responsibilities have been transferred over — saved in terms of taxpayer dollars?
Hon. K. Conroy: There have been considerable savings in the existing shared services to the tune of thousands of dollars — lots. Yeah, it’s a big number. I don’t have an actual number for you. The trust and CPC are still looking at it. It’s something that hasn’t been finalized yet.
D. Clovechok: Thank you for that answer. It’s great to see that it’s a work in progress, because I think that, as we shift more toward the CBT taking that role and responsibility, it makes nothing but sense, in my humble opinion.
We’ll shift away from that now, and we’ll start talking about the Columbia River treaty, which we all know is so important, as you know as well. As a guy that is a bit of a history buff, it’s kind of cool when you think that, back in 1964, there were people — politicians and citizens and, as you pointed out, municipal government leaders — who had this vision. Old W.A.C. Bennett had that vision and that dream, and that kind of compiled into a meeting to ratify that treaty in Blaine, Washington, and we’ve got it.
That was 1964, and here we are today still talking about it. It’s been touted as one of the best international boundary agreements anywhere in the world, and it’s something that British Columbia should be very, very proud of.
Also, you think about back in 1964 when W.A.C. Bennett approached Canada and actually got Canada to agree to shift power to us. That wouldn’t happen today. We wish it would, but it wouldn’t happen today.
In any event, it’s an amazing treaty, when you look at it over the many years that it’s been in existence. It’s evolved into so many more things, and of course, Columbia Basin Trust is one of those.
What I understand from the minister is that the position of the government is essentially the same in terms of the treaty, but there are some negotiations. And negotiations are always pretty tough, especially with our friends to the south, who don’t want to pay, yet we’ve got a product that they not only want, but they desperately need. So we are in a negotiating power position, if I can say that out loud. Sorry, Donald.
As a starting point, I’m just wondering: can the minister tell me if there are any major differences, in terms of government position, to the Columbia River treaty since she took over the file?
Hon. K. Conroy: The member is right, actually. It is one of the best international water agreements in the world. When it comes to just power and power generation and flood control, it was ahead of its time in 1964. But thank goodness things have changed, because in 1964, they also didn’t consult with anybody in the basin. It was just: “We’re doing this, whether you like it or not.” Now things have changed substantially.
For the most part, we are carrying forward with the guidelines recommended under the previous administration. The one thing we have done is…. There is an increase in discussion with Canada and First Nations on the return of salmon to the river. That was a big issue. It was in the pre-treaty days, back in the ’30s, when the federal government of the United States asked the federal government of Canada if there would be any issue if they built Grand Coulee dam and block the salmon, and the folks in Ottawa said: “No, it’s not a problem at all.”
There was no consideration for how incredibly important salmon was, especially to the First Nations people and Indigenous people in our region. That has changed. They are playing a role. We have an advisory table that is made up of Indigenous representation from our region, and also we are discussing with Canada that we need to see if there’s feasibility here.
Also, I think the fact that there’s a discussion around the ecosystem. I know that certainly didn’t happen in 1964, but that is something that’s very much on the minds of people in the basin. I think that the trust, along with the representatives from the ministry — since 2012, I believe — have been consulting with the people of the basin to say: “What should we do differently this time? If we are going to tweak the treaty, what can we do differently to make sure the voices of the basin are heard and that things that were under no consideration in the ’60s are now a topic for consideration?”
We’ve made a commitment to go out again and talk to the people of the basin. We’ll be undertaking that consultation in, I believe, June — yes, in June — once again going around the basin and talking to people and making sure we’re still on the right track as we move forward with the negotiations with the federal government and the States.
D. Clovechok: Thank you for that. Just a follow-up to that. I’ll come back to the First Nations piece and the salmon as we continue on.
Specifically, in relation to the question I just asked, does the government continue to support the 14 principles that were laid out in 2014 by the previous government?
Hon. K. Conroy: Yes, we’re in total support. One of the reasons we’re in support is because those principles were developed with consultation from throughout the region.
Also, at the time, I was the critic for the Columbia River treaty, Columbia Basin Trust and Columbia Power Corp. As we like to call it, all things Columbia. So I was involved, as well, in the consultation process and knew what the issues were right as they would come up. I was involved as a critic just as much as I’m going to be sure that the member as the critic will be involved in these discussions as well.
D. Clovechok: I look forward to those discussions and being involved in them as well. Appreciate it.
We all know, and your staff here knows, that we’re into the negotiation or starting the negotiation, and of course, we have to deal with all of that. We know that the Americans, with all due respect, don’t want to pay us as much for power that they’re not getting or they perceive they’re not getting, which they’re not getting. Those negotiations are going to be fairly interesting given the culture that’s down there right now.
Yet when you look at…. You’re correct in your assumption, for sure, that in the ’60s…. Things were a lot different then. And thank goodness they are different today — that there is consultation and we are involving First Nations directly in the negotiations. But what wasn’t taken into negotiations, in terms of value…. Back in the ’60s, it was flood control and power generation, basically two things.
Today we’ve got a storage system for the Americans. We store up to, I think, around 50-some-odd percent and potentially, we heard this weekend, up to 60 percent. As time goes on, it’s going to increase, in terms of the amount of storage capacity that we have.
The Americans need our water for their agriculture, their wine, their apples and all those sorts of things — and for navigation and shipping. No question about that. Ecosystems are high on our list and, I think, on theirs as well, especially with benefits to fish like salmon and sturgeon.
There’s recreational real estate involved here. There are a lot of reservoirs — which very, very wealthy Americans have very large houses around, which they’re concerned about and certainly are lobbying their government, I’m sure — and also industrial water supplies.
The question I have for the minister is that…. Through and during the new negotiations, are these things that I’ve listed and others that I’ve probably not listed…? It’s just no longer flood control and power. It’s all of this now, and these things have value. We have to make sure the Americans understand that these things have value.
Is that part of the negotiation process — that we’re making sure that they understand that it’s grown beyond this and they’re going to have to get their chequebooks out?
Hon. K. Conroy: In 2013, at that time, there were discussions going on, and the Americans were just talking about power generation and flood control. A paper was issued at that time, by B.C., that recognized all the benefits, as the member has mentioned.
After that, discussions changed. The State Department in the U.S. recognized that discussions needed to change, that these discussions were going to be about far more than just power generation and flood control and that there needs to be recognition of all the benefits that the water flowing south has given to all the states that are affected by it — and the fish issues, as well as transportation.
I think, at times, wouldn’t the communities of Elkford or Sparwood love to be able to ship their coal by barge down to the mouth of the Columbia, as opposed to train and what they do? The cost savings would be substantial. I know that the fruit farmers in B.C. have continued to express concern about the support that the agricultural industry gets in the United States, especially in Washington, because of the irrigation.
We have to look at a way of creating and sharing benefits equitably and to ensure, moving forward, that that is definitely going to be something that happens with these discussions around the treaty.
D. Clovechok: It’s obvious that the United States — there’s no question about it — negotiates from the state department, not from the governor’s office. We can negotiate from the Premier’s office vis-à-vis you and Canada together, right?
Are there any circumstances that the minister could see or foresee that would consider B.C. reducing any downstream benefits?
Hon. K. Conroy: As the member knows, we’re about to enter into negotiations. I’m not going to discuss the negotiation strategy in a public venue, as I’m sure the member is well aware with negotiations.
What I can say is that the objective is to improve the benefits, especially to the residents of the basin, as well as to the people of British Columbia, to make sure that we get equitable or better benefits. I don’t think we did many, many years ago, and I think it’s our turn. We just want to make sure that we can continue to ensure that for the people of the basin.
D. Clovechok: I’m glad to hear that because it’s important not only to this province but to this country.
One of the things that you’ve already mentioned is the newness in the discussion around ecosystems and salmon. I think it’s critical that we have those conversations, not only just the First Nations people but British Columbians and Canadians all together. We’re all Canadians.
I’m wondering if the minister could provide us with an understanding…. Again, understanding that negotiations are ongoing and you can’t show your hand all the time, but how are you proceeding with the ecosystem being a new pillar of the treaty?
Secondly, specific around the return of the salmon, how are we looking at that? What are the plans? What could be potentially happening in bringing…? It’s not going to be an easy task. So have there been discussions around process in terms of bringing the salmon back up, in my home, up the Columbia and back into the lakes and rivers that I represent?
Hon. K. Conroy: Actually, the treaty doesn’t have to be changed to address ecosystems, and the two entities have been working at respecting that for a number of years now. Operations have already been changed for the fisheries, for instance, because the Americans have a fairly significant program that they do with fisheries. So that’s already changed.
We’re exploring other ways that the ecosystem issues can be met with First Nations in the basin, as well as residents in the basin. One of the major things is to stabilize the reservoirs. I mean, from the member’s area, I’m sure he’s well aware of how the different levels of the reservoirs can affect the region, similar to my community, the Nakusp area north of the Hugh Keenleyside — how much that affects the region.
As well, with the salmon issue…. That has been led by Canada, because the federal government’s responsible from our perspective. They are working very closely with the three First Nations from Canada and the 15 tribes from the United States.
The two entities, the First Nations from Canada and the tribes from the United States, have been working on scientific and technical documents and research to see if, first of all, the salmon can come up, how they can come up, what we need to do and what the things are that have to be done to ensure that that happens.
Canada has taken the lead but is also working closely with B.C. Hydro and other government agencies that would be responsible for this. So people are working on this. We’re making sure that it’s not something that is waiting for a treaty to be made or renegotiated or tweaked. This is something that is happening now, with the Canadian government taking responsibility.
D. Clovechok: That’s encouraging. We both heard at the Secwepemc event last weekend that that’s a priority. One of the priorities that they have is to have those salmon return. That would be, where I live, a wonderful thing. We’ve got landlocked salmon, the kokanee salmon, but the ocean salmon are not there.
I’m getting a look from my colleague here. I’ve got pages of questions, but I’m going to cut them down for you and get going here. Just a couple of more things, then, that I’d like to ask you.
What position is B.C. taking on the question of flood control around 2024? Could you talk a little bit about the difference between assured flood control and what they’re now talking about, called-upon flood control, which is fundamentally completely different than what’s in the treaty today?
Hon. K. Conroy: Sixty years ago the United States purchased nine million acre-feet in B.C. in our reservoirs. An acre-foot is a foot deep of water an acre wide, so that’s a lot of water. They purchased that from us, and that was part of the 60 years of agreement. That ends in 2024.
If there isn’t an agreement prior to 2024, the Americans would have to make effective use of their own storage. They would have to draw down…. Right now if they need something, they phone, and we adjust to meet their needs because they bought that. They would have to drain down their own storage. They’d have to drain their reservoirs.
This is something that they haven’t had to do since the ’60s. It’s not as dependable. There could be issues with the fish. There would be issues definitely with keeping their reservoirs up. I mean, I know, as the member said, the tourist industry would suffer considerably, because I don’t think I’ve ever seen Lake Roosevelt down. It always seems to be at full pool. And it also increases their flood risk.
This is something that is definitely open to discussion with the United States and something that will be discussed in the future, prior to 2024.
The Chair: Just a reminder to address through the Chair. Please avoid the use of the word “you.”
D. Clovechok: Thank you, Chair, for that reminder. Appreciate it.
Through the Chair to the minister, is there a potential, then…? If you were to move away from that flood control, from assured to called-upon, is there a financial implication for Canada if they went that way? Do you foresee that, in terms of money coming back to Canada, if they went from assured to controlled?
Hon. K. Conroy: Right now there’s nothing really for us as an entity to lose as far as finances go because the Army Corps of Engineers is very concerned about not having access to the called-upon. They need that. There have been some significant flood issues of late down below the border. In Washington and Portland, there have been some significant floods. They need the ability to call us for water and for flood control. So at this time, no.
D. Clovechok: One last question. I’ve got a bunch of them, but there’s only one left. I’m getting that look.
Near and dear to my heart and, of course, coming out of this conference that we were at on Friday and Saturday up in the Columbia Valley…. Will the minister outline…? The minister has already done that, but I’m wondering if the minister could expand on how First Nations are being involved in this, because they weren’t in the ’60s. It was a travesty. It was the way it was back then, and we’re hopefully putting some of those corrections in today.
I did hear at that conference from one of the chiefs that was there, one of the speakers that was there, that they are not at the “table” yet. Will they be at the table to actually participate in this entire process?
Hon. K. Conroy: The provincial government has been consulting with the three First Nations based in the basin, since 2012. Those are the Okanagan Nation, the Secwepemc and the Ktunaxa. They’ve been negotiating on an ongoing basis to determine what the issues are around the Columbia River treaty for those First Nations.
In the last two years, Canada and B.C. and the First Nations have been meeting to get ready to do the preparations for negotiations with the U.S. They’ve been developing a negotiations engagement framework of how they will work together. They have made sure that there’s direct input from the nations into the negotiations.
Ultimately, whether they will be at the actual table or not is Canada’s decision. But from our perspective, they will always have a planning role before negotiations take place; during, when negotiations are taking place; and after. So their voices will be heard. They’ll very much be a part of the process in the negotiations.
D. Clovechok: I thank you for that. It’s encouraging to hear. I would encourage British Columbia to encourage Canada to make sure that they are at that table. I think it’s fundamentally critical that they actually sit there now. If it’s Canada’ decision, it’s Canada’s decision, but we certainly have a say in that as a province. I would certainly encourage that to happen.
With that said, I would like to thank the minister and her staff for the time. I could spend a lot more time on this. It’s a fascinating file, and it’s such a benefit to our communities. I want to thank the minister for her time and her energy.
If there’s anything we can do on this side of the House to help further the cause of this…. I look forward to being involved in some of these treaty negotiation discussions and whatever I can be. So just thank you so much. I certainly appreciate your time — all of you.
Hon. K. Conroy: To the member, I also want to thank him for his interest and his commitment, as well, to all things Columbia. I have made a commitment, and I’ll do it again. We will move forward making sure that he is kept apprised of what’s happening, when they’ll have the discussions — as well as making sure that he and the member for Kootenay East are aware of the consultation process that’s going to be up and coming. If there are other questions, I’d be only too happy to answer them at a different time so that we can get that together.
I want to thank the member for his respectful questions, which have been definitely near and dear, I think, to both of our hearts. So thank you.
At this time, could I ask that we have a five-minute break?
The Chair: You read my mind. I’d like to call the committee to recess for five minutes.
The committee recessed from 5:10 p.m. to 5:20 p.m.
[R. Leonard in the chair.]
L. Throness: We’ve been talking about opting in and opting out and the perils of such — either case. I want to read an email that I received this morning so that the minister can get a flavour of what I’ve been receiving for the past month or two since the budget and know what’s happening on the ground.
This was sent to me by Julia — I won’t identify her otherwise — in the Fraser Valley. Julia says:
“Hello:
“I’m a parent with a 16-month-old daughter currently enrolled in full-time infant-toddler daycare. When the provincial government announced the new fee reduction programs for daycare back earlier this year, I cried tears of joy. The $350 per month felt like we would finally get some breathing room from the noose around our neck.
“I thought this was going to be a sure thing, as I trusted our government when they promised to deliver on reducing child care fees. Well, I just received a letter from our daycare provider yesterday that they will not be opting in to the program. I immediately was enraged.
“They stated in their letter that they do not want to opt in because all future fee increases will be regulated, and they are worried about what else will become regulated after. Basically, there is no benefit to them aside from more paperwork and headaches.
“I am so upset. I’m crying as I write this. We are struggling so badly, and that money would go such a long way in our lives.
“We had to wait on a wait-list to get into this daycare, so trying to switch to a daycare that would have opted in would be difficult as we would be put onto another long wait-list. Besides, my daughter is thriving at her current daycare, and we don’t want to switch her.
“My suggestion is: why can’t the $350 be given directly to the parents? Why does it have to go through the daycare? You could get a list of all parents with kids in daycare from the actual daycare, but then just pay the parents and cut out the middleman. Please, please, please consider this.
“We are getting desperate living in the Fraser Valley. I already commute three hours round trip to work as I can’t afford to live any closer to my office. The $350 per month would make such a huge difference in our lives.”
This is an email that I received this morning. It’s a real email from a person on the ground.
My question is: why would parents be punished because providers don’t want to be controlled by the government?
Hon. K. Chen: I thank the opposition member for sharing the email and the story. I agree that the cost of child care has gone up really high during the past years. As I mentioned earlier, during the past ten years, it has gone up 35 percent. The current system is not working for families.
Child care costs can be a huge burden on many families’ expenses. That is why our government is committed to make sure we are looking at ways to make child care more affordable. That is why we’ve looked at other jurisdictions. We’re looking at research, we’re looking at information, to see how we can address this affordability issue. That is why we have two initiatives — the fee reduction initiative and the child care benefit initiative.
We’ve learned from other jurisdictions that if the government only invests in things like the child care benefit or a tax credit, that directly goes to parents. The market will adjust the fees on its own, and it does not help to make sure that child care is affordable.
That is why we have two initiatives that are working on affordability issues in two different ways. The fee reduction initiative that we wrote…. We’re not regulating the fees. Providers set their fees. They can run their business as usual.
We are also looking at, for example, regional median, which is a market-based rate, to see what providers’ fees are, as we are working with them for this fee reduction initiative.
There are many things that we’re looking at. And actually, if you really look at the benefits that providers are getting, providers who are joining this fee reduction initiative will get more support than providers who are not joining this fee reduction. For example, they’ll get the 10 percent increase of the operating funds that they are eligible for under this fee reduction initiative. We’re also looking at that support, the 10 percent support, in the coming years to see how we can increase that and continue to increase support to providers. We do want to work with providers.
With the story that the member opposite shared, we are hoping that more…. This particular family will be able to benefit from our new child care benefit, which is the second initiative that we’re going to roll out later this year.
As our government is investing, from our Budget 2018, $347 million into a new child care benefit over the three years to fund a new income-tested child care benefit with expended eligibility and higher benefit rates than the existing child care subsidy — actually, way higher. This new benefit program will be fully phased in, in over three years, and families will begin to receive savings starting later this year.
We’re excited about this program. The two initiatives combined…. We are looking forward to having a lot of families get more and more affordable child care.
L. Throness: I think that answer will be cold comfort to Julia. I will send her the minister’s answer, and we’ll see what she says.
Here’s what a provider wrote to me about CCOF, because the minister mentioned the 10 percent increase. She wrote: “On the ECEBC conference call with the minister, her executive director said that the 10 percent lift is only for year 1 of the initiative, and during years 2 and 3 of the plan, the lift will be at 5 percent. Why aren’t they giving us 10 percent each year? Is there any way we can find out what the ministry is planning to distribute so that we can budget accordingly?”
What will it be, to the minister — 10 percent in future years or 5 percent? Why would she reduce CCOF payments?
Hon. K. Chen: Just to clarify, the 5 percent is an increase on top of the 10 percent, so it’s compounded. It’s 10 percent and then another 5 percent and then another 5 percent in year 3. So you’re looking at a 20 percent increase to operating funds in three years. That’s what’s budgeted.
L. Throness: Another question about the website that was created under Bill 5. Will those licensed providers who do not opt in and no-licence-required providers who want be able to be displayed on the government website that was created in Bill 5, or will they be banned from there so that parents don’t know they exist?
Hon. K. Chen: I guess we’re a little confused about the question. Maybe the member opposite can clarify that again. We do have a child care map — I’m not so sure if that’s what the member opposite is referring to — which has a list of licensed child care providers.
L. Throness: I was referring to the health authority website that will be created through Bill 5 and wondering if that will display no-licence-required and non-opting-in licensed providers. Perhaps that question is better for health authorities.
Let me go on to ask a question about licensed family providers. They operate on a shoestring. They put in very long personal hours. They need to take holidays, which they take without pay. Yet the government has decreed that a provider that closes for more than two weeks in a row can’t opt in. This, of course, favours big-box daycare, which have multiple staff who can cover for each other, but it could put smaller ones out of business.
Will the government retract the decision that effectively denies proper holidays to smaller providers, even when parents agree with it and are able to cope with it, causing providers to further burn out and reducing the number of child care spaces in B.C.?
Hon. K. Chen: Let me just read the whole…. I believe the member opposite has the Q and A in front of him. There’s a paragraph that actually specifically talks about this, and just, with some clarifications, with the question as well. This is what the FAQ says:
“The ministry recognizes that many providers charge regular monthly fees for months with closure periods in addition to statutory holidays. Closure periods are considered to be any non-statutory holiday closure in which the facility is not open and providing child care services. Prior to enrolment, child care providers applying to opt in to the fee reduction initiative will be required to declare non-statutory closures, both historical and planned, over the closure of the contract term.”
“Facilities that are approved to opt in” — this is the important part; there are two criteria, and it has to be both — “may not close for more than two consecutive weeks per month, up to a maximum of four weeks in total per year, and charge parents full fees for those weeks.” In other words, a provider can close for two weeks. As long as they’re not charging the full fees for the full month to the parents, this does not apply to them. It has to be “and,” the two criteria.
To clarify further, “enrolment reports that indicate a non-statutory closure will be reviewed against the program confirmation form to ensure stable monthly fee reduction payments if parents are charged full monthly fees. If parents are not charged for facility closures, providers will receive prorated funding amounts for the fee reduction for that period.”
They can still opt into the plan. They can definitely do that. “If there is a business case,” a different situation, “for closures of a longer duration or frequency,” providers are always encouraged to contact us and to have clarifications. I also want to emphasize that, for providers that are closed for more than two weeks and that charge full parent fees, the two weeks excludes sick days and Pro-D days. So there’s a lot of room for providers.
Since the member opposite mentioned about licensed family providers, I also want to quickly mention that we are adding support specifically for licensed family providers — including, for example, in-home multi-age providers. We are looking at increasing their operating fund support to recognize their ECE credential. We are opening the minor capital for the first time for licensed family providers to apply, and we are engaging with them as partners as we continue to build a better system.
L. Throness: I would simply point out that I don’t think it’s government’s business to be regulating the holidays of providers.
Let me go on to ask another question. Every year a provider will need to reapply for the fee reduction program. For many providers, their livelihood will depend on requalifying for that fee reduction. What will be the criteria for requalifying for the program? This is an important question, given that this requirement will introduce further uncertainty and ensure that providers will not invest and create spaces if they’re not sure if they’re going to qualify next year or the year after.
Hon. K. Chen: I can confirm that the fundamental pieces of this fee reduction initiative will stay the same. Those are the important pieces that…. The member already has the information in front of him. At the same time, we’re actually working with providers, hearing from them and making sure that we can do it better for the diverse B.C. sector.
One thing that we’re learning is that the child care sector is very diverse. There are so many different providers operating their centres in many different ways. They charge fees in different ways. They pay their staff in different ways. So we want to continue to engage with them, to hear from them as we adjust and make sure that it works for their operations.
I’ll give you a good example of how we are adjusting along the way. When we rolled out this initiative in March, some providers told us that they were away for spring break and they needed more time to look into this new program. So right away, because we want more families and more providers to be benefiting from this plan, we extended that timeline to join this initiative so more families can benefit and apply to opt into this initiative starting in April. We extended that timeline right away.
L. Throness: The providers feel that the term “reasonable fee increase” is undefined. And this brings uncertainty into the system and uncertainty into their business model. Why did the government not give providers a predictable fee increase regime so that they can be assured that they’ll be able to cover their costs, like reasonable wages, leases and loans? Why does it leave providers guessing?
Hon. K. Chen: The B.C. child care sector is very diverse. There are providers operating their centres in so many different ways. They pay their staff in different ways. They charge fees in different ways. So when we are looking at…. Based on research and on the statistics and the information that we have, if we only give providers, let’s say, a flat fee increase that they can do or a flat percentage, it’s not going to work for the diverse sector and the diverse needs of businesses.
We want providers to be able to run their business in their own way and run their business as usual. That is why we’ve taken an approach to support that diversity and to look at different circumstances, and that is why our approach is to look at each provider’s situation, case by case, to make sure we understand their needs and their cost pressure, as we work together to make child care more affordable. It allows the maximum flexibility, and it also ensures that there’s accountability.
L. Throness: What constitutes an extraordinary circumstance for a request for a fee increase? We have a reasonable fee increase, and then we have an extraordinary. What’s the difference between the two?
Hon. K. Chen: The ministry definitely understands that child care fees across the province vary. Providers with reasons around planned fee increases that are outside of the historical fee pattern for their facility or are higher than the original median range of fees for their area or community will have those proposed fee increases reviewed by the ministry.
This is to ensure that the funds government is providing — and a large number of funds government is providing to reduce fees for parents to address affordability issues — aren’t unreasonably offset or diluted by fee increases. All providers, regardless of their established monthly fees are encouraged to apply for our initiative.
To address the member’s question, in the event that recent or unplanned increases don’t align with the facility’s historical fee increases, the ministry will take two steps. The first one is to compare the provider’s fees with the range of median fees charged by other providers of the same care type in the same region.
The second thing we’ll do is to investigate, to look into, for example, if the fee increases were due to bona fide expenses — for example, unplanned or situations that are beyond the provider’s control, such as a sudden or unexpected increase in operational expenses, loss of revenue routinely received from a source other than parent fees or government funding or an unexpected increase or pressure outside of the control of the provider that would impact the facility’s ability to remain operational. So extraordinary circumstances applies to unexpected, unplanned situations.
L. Throness: I’ve heard a lot about this next question. There are some providers who have regularly increased their rates twice a year and by proportionately more than others. Will they be allowed to continue those steeper fee increases because they have historically done so? Doesn’t this unfairly punish more frugal daycares, which try to keep costs down for parents?
Hon. K. Chen: If the provider is running their business as usual and their historical fee increases continue to be in the same pattern, then they are eligible for the program.
L. Throness: It’s interesting to see that the minister will ratify extraordinary fee increases for some and small or no fee increases for others. For instance, on Thursday, the member for North Vancouver–Seymour told of a constituent who had not given an increase to parents in 18 months, now wants to opt in with a small fee increase of 2½ percent, and the ministry is hassling her because it wasn’t in line with her historical fee increases over the past seven months. It is an absurd situation.
I want to continue on and ask about legal responsibility of the government. The government has assumed control over fee increases, and I would note, quoting from section 4.4 of the contract: “The province may approve or reject the proposed parent fee increase or stipulate an alternative acceptable amount for such increase.” The ministry can dictate what the increase will be, and this implies a degree of legal responsibility upon the government for that business.
For example, if the government refuses to grant a fee increase and a market-based provider must therefore stop providing care and exit the market, will the government pay off the loans of those providers?
[S. Chandra Herbert in the chair.]
Hon. K. Chen: Let me just set the record straight. No provider is being hassled. Our staff has been working really, really hard adjudicating applications, looking into each provider’s situations, their unique circumstances. They’re working hard. They’re professionals who are making sure that providers’ applications and their situations are being looked at as we continue to work with providers and engage with providers to make a better child care system.
If the member opposite is referring to the process of adjudication, of how we’re processing applications and looking at a provider’s fee increases, I can give the member a picture of what we’re doing. First of all, when we receive an application…. Again, it’s a provider’s choice to join our program. It’s an option when they’re entering the contract to renew their operating fund and then also get another option to make child care more affordable for their families and get a 10 percent increase to the eligible spaces that are eligible under this program.
When we get their application, we’re going to be looking at if there are any fee increases. If there are no fee increases or planned fee increases, then we will approve their application. We move to the second type of facilities. Sometimes they may have a fee increase, but it’s aligned with the facility’s fee history. If it’s aligned with the facility’s fee increase history, we approve their application.
Then we move to the third category. There are some facilities, for example, that may have not increased fees for years. They’ve tried their best to make child care more affordable, but this is the year that they have cost pressures, and they need to increase fees. We’ll be looking at their applications, again, giving them consideration, and looking at the original median, which is based on market-based rates, looking at if their fee is within the original median. If it is, we approve their application.
Then we go to the next bracket, to make sure that we also look at providers’ unique situations. For example, if there’s a cost increase that’s outside of their control, we can also look at their situation and allow them to be able to join in our program — if they’re increasing their fees.
There’s a lot of flexibility we’re providing, by working with providers to make sure that there’s flexibility for providers to join our program, to work with us, to make child care more affordable. And there’s also accountability.
L. Throness: Has the government received legal advice on its exposure to lawsuits because of clause 4.4 in the contract?
Hon. K. Chen: All of our contracts have received legal review by the Ministry of Attorney General.
L. Throness: There is a certain arbitrariness to this whole “reasonable” or “extraordinary” fee increase approval business. You think: there are 3,000 contracts to go over. There are many different public servants looking at it. Somebody has a bad day. Might it depend on the whim of a public servant? Or will consideration of fee increases be a transparent process so that we can be assured that all providers will be equally and fairly treated?
Hon. K. Chen: I just really want to emphasize that the whole process is very transparent. There’s a lot of accountability, and our professional staff in the ministry have been working really hard — evenings, weekends and every single day — to adjudicate applications. I’ve already explained the adjudication process to the member opposite.
B.C. does have a very diverse child care sector. Our professional staff are working really hard to make sure that we’re looking into providers’ individual situations, unique situations, to be able to make sure we’re working with providers, listening to providers. We are on the calls. We are sending a lot of correspondence, and I’m personally engaged with providers every single day to work together to build a better system in B.C.
If the member opposite maybe did not get what I was explaining, in terms of the adjudication process, which I think for the member opposite probably wasn’t clear, I’m happy to explain that again. Again, there are different types of applications that are coming in. We’re looking at each application case by case, and there are different scenarios.
If there are no fee increases, we will approve the application. If the fee increases are aligned with the facility’s historical fee increases, we approve the application. If it’s a provider….
As I’ve mentioned, I’ve heard from many providers directly, myself, that are saying: “Well, I have not increased fees for many years. I’m a hard-working provider. I’m committed to making child care affordable.” But this year or next year or the past few months happened to be a cost-pressure time — for example, rent has increased, or there are other circumstances — and they need to adjust fees. We’re happy to look at that.
We’re also looking at the original median range, which is based on the market rate in the region, to ensure that providers can continue to opt in to our plan. If it’s a situation that’s really outside the provider’s control, we are also looking at them case by case.
Our ministry staff have a very clear procedure to follow through. The adjudication process is clear, and the extraordinary circumstance which the member opposite has mentioned and asked about is defined clearly.
I’m happy to say that again. It’s defined as a circumstance in which a facility has exhausted all other provincial funding programs prior to increased fees and is experiencing bona fide material unexpected expenses, such as repairs, replacements, increase in operational expenses, loss of revenue and/or a sudden increase or pressure that’s outside of the provider’s control that impacts the facility’s ability to remain operational.
We want to work with providers. We want to support providers. We do have a very clear process of how the adjudication process is going, if that’s the member opposite’s question or concern. Along with our hard-working ministry staff, every single day, and weekends and evenings, we’re working on applications.
This whole process is designed to ensure that there’s administrative fairness for this very diverse sector. We want to continue to work with providers in this very diverse sector to look at their individual situations and individual operational needs.
L. Throness: What I would encourage the minister to remember is that the 56 people who were denied a fee increase and who are now at risk of bankruptcy do not feel very fairly treated.
These are people who sometimes have decades-long careers and businesses. They have reputations in the community. They have loans. They have leases. They have buildings. They have equipment. They have payroll. They have staff. They have parents who depend on them. They have children who see them as a second mom or dad.
I can’t believe that the ministry would so easily flip them off the table — 56 businesses who now cannot compete in the marketplace with other businesses and are at a very real risk of going broke. Will there be a formal appeal process in the case where a fee increase is denied?
Hon. K. Chen: Just let me be very clear that no providers are receiving less from this program. Providers are only receiving more. Parents are receiving more from this fee reduction initiative. No provider is receiving less. Even if they are not opted into this program, they can continue to receive the child care operating funds that they have been receiving.
We also have new providers, who have never received child care operating funds ever before, now contacting our ministry. They are joining this fee reduction initiative because they want to receive the operational funds, and they also want to make child care more affordable.
Let me emphasize again and again that no provider is receiving less. Providers and parents are only receiving more under this initiative. Providers who opted into our program — again, it’s an option; it’s a choice of the providers — can receive 10 percent of the operating fund increase for the eligible facilities and the seats.
To answer the member opposite’s question in terms of the applications that are not approved at this time, we have sent out a clear letter with details, with information, and we have given them the opportunity to say if the providers think that the ministry has made an error in the assessments of their facility’s eligibility for the child care fee reduction program based on the criteria.
If the provider has information, especially new, relevant information that was not previously considered, they’re welcome to send a request for reconsideration of the decision in writing, by email. They are welcome to connect with our ministry directly to look at their individual applications.
The Chair: Noting the hour, Minister, or…?
L. Throness: I just wanted to say, Chair, that we’ll consider this at 11 o’clock tomorrow morning.
Hon. K. Conroy: I move that the committee rise and report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:19 p.m.
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