Third Session, 41st Parliament (2018)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Tuesday, April 24, 2018
Afternoon Sitting
Issue No. 124
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
TUESDAY, APRIL 24, 2018
The House met at 4:02 p.m.
[Mr. Speaker in the chair.]
Orders of the Day
Hon. M. Farnworth: In this chamber, I call Committee of the Whole for Bill 10, the Family Maintenance Enforcement Amendment Act. In Committee A, I call continued estimates of the Ministry of Children and Family.
Committee of the Whole House
BILL 10 — FAMILY MAINTENANCE
ENFORCEMENT AMENDMENT ACT,
2018
The House in Committee of the Whole (Section B) on Bill 10; R. Chouhan in the chair.
The committee met at 4:05 p.m.
On section 1.
Hon. D. Eby: I just wanted to rise to recognize staff and representatives who are here with me today. Chris Beresford is here, the director of maintenance enforcement for the province of British Columbia. Darryl Hrenyk, who is legal counsel with justice services branch, is joining me here in the chamber.
M. Lee: To the Attorney General, I just want to ask about the form of the notice of maintenance order that is going to be included in place of the full order itself. I understand, of course, that this is done with a purpose — to reduce the amount of information of a sensitive nature that would be in the public realm. But just with the nature of the drafting of 1.1, I would ask the Attorney General: what other information, if any, would be included in that notice being filed?
Hon. D. Eby: Subsection (1.1) sets out the minimum information that would have to be in there: the full name and last known address of each person who is a party to the maintenance order; the date of the maintenance order; the court file number and court registry location, if any, associated with the maintenance order; and a description of the land against which the maintenance order is to be registered. We don’t expect there will be any other information required.
Section 1 approved.
On section 2.
M. Lee: In terms of section 2, with the accelerated mechanism as a result of the proposed amendments, I wonder whether, on the existing provisions that provide for an arrangement under 29.2 to effectively be entered with the director of enforcement, there are any considerations as to the mechanism of timing that will be at play because of this amendment — meaning this is not, anymore, going to be a situation where we’re talking about renewal of a driver’s licence. We’re talking now about cancellation, so obviously, that accelerates and puts forward the time frame.
I’m just wondering if there are any concerns or considerations around the opportunity that would provide the debtor to enter into arrangements with the director.
Hon. D. Eby: At a minimum, a 30-day notice is required before refusing to renew or cancelling a driver’s licence. This provision reflects that intention. There may be a scenario where someone has a do-not-renew notice already in place, and they’d received the 30-day notice. That notice might be replaced by a new notice that it is the intention of the director to cancel the individual’s driver’s licence, but that would have to be at least 30 days before forwarding a notice to the Insurance Corporation of B.C.
M. Lee: Thank you for that response. Given this mechanism, is there increased volume expected in terms of how the director may need to deal with these debtors because this is a mechanism that will be less prolonged? I’m just wondering whether that 30-day notice…. Is that going to provide a sufficient opportunity for the director to address all the possible cancellation notices that he or she may need to provide?
Hon. D. Eby: There are a couple of elements that I now understand the member is asking about. The first is: under the existing legislation, there’s the 30-day notice. Then there’s the time period until the renewal of the driver’s licence, which essentially gave someone a longer period of notice before an action was taken — in this case, the action of not renewing the driver’s licence.
Under these amendments, there’s a 30-day notice, and then the driver’s licence could be revoked if no action is taken by the debtor. So you’ve lost that whole additional period until the renewal notice in terms of notice to the debtor. That is, indeed, the intent of the section. The intent of the section is to ensure a more prompt response from the individual who’s in arrears in excess of $3,000 and to provide the director with an additional tool to use at his discretion in order to ensure that somebody contacts the office and straightens out their debts.
The other question that the member had was: is this going to increase the volume of work or the demands on the director? Currently the caseload will be the same. It’s the same now under the existing legislation as it will be afterwards. I guess, theoretically, as people find if this is more effective….
We believe that this will assist people to realize that they have to at least make contact and make some arrangements about their payments. If this is successful, it may cause an increase in caseload in that people are like: “Oh, it’s working better. Now I’m going to pursue with the director this kind of remedy for the situation I’m facing, where my former partner is not paying child support.”
In that sense, it might theoretically increase caseload. But currently the director still has to deal with all these cases and, in fact, has to deal with them for a longer period of time, because people are saying, “Oh, I don’t have to straighten this out until my driver’s licence renewal comes up,” and that’s not for two years. So that leaves the file on the books of the director, where they’re not contacting and they’re not dealing with it for the extra two years. We want to get rid of that time period.
This might actually…. I’m being optimistic; I don’t want to be too optimistic. This is not projected to change the caseload for the director. What it’s projected to do is encourage people who are existing members of that caseload to be in contact with the director in a more timely manner. These are people the director already has to be reaching out to anyway.
M. Lee: I appreciate the answer from the Attorney General, to go through those steps. Just one other potential scenario that I wanted to ask about or test specific to this amendment. That is the possibility where the debtor, for reasons of change of circumstance, may, through some mechanism, apply to the court for an amendment to their maintenance order.
If there are delays in getting that through the court process, would this mechanism, again, be taking away, removing, something that the debtor may want to be trying to adjust already in terms of the payment schedule that may be attached to the order? Whether there’s a scenario there where…. We know that in areas of this province, there’s been a challenge getting through the court process, including areas up north, like the Peace River district. Is there a possibility that that might occur under this provision as well?
Hon. D. Eby: I thank the member for the question.
The core of the director’s work is not to be in some job of punishing people. The job is to encourage them to adhere to the judicial order of payment that they need to make. That payment is determined on the basis of submissions to the court, and the court makes the decision about what someone can reasonably pay to support their child.
If the person’s circumstances change after those submissions happen and the court order no longer reflects their ability to pay, they do need to go back to court and get that order modified. And there is certainly an amount of time required in order to take legal advice, to prepare the necessary documentation, to serve the parties and so on.
This can be amplified in rural situations where it may be more difficult for someone to find a lawyer quickly or to get to the courthouse — maybe employment obligations and so on. We can think of 1,000 reasons why it might take a while to get in front of a judge. The key is that the family maintenance enforcement program needs to be kept up to date on the status of the application.
The person needs to be calling the enforcement officer and advising them of where the application is in the court system. “I just retained a lawyer. We’re setting a court date. We’ve set a court date for this date. We’re appearing on that date. We’re filing. Here’s a copy of the filings.” As long as the thing is moving along, then the enforcement officer knows that the person, in good faith, is taking the efforts to go to court and get the order changed and will give them time to do this.
The problem that the driver’s licence piece in these amendments is intended to address is where the person is just not responding to the enforcement officer, is not responding to their former spouse, is not responding to the court’s demands that they pay a minimum amount of child support. This is meant to encourage them to get in touch and to keep the office up to date. The enforcement officers provide people with the time necessary to make court applications to refine or modify orders to ensure that they reflect the person’s actual circumstance.
M. Lee: I just wanted to ask further about subsection 8(d) under section 29.1. That leads in with the words “within one year.” I would like to ask just for an explanation from the Attorney General as to the importance of that time period or whether that time period is necessary for this provision to operate.
Hon. D. Eby: This section refers to a shortened period of notice for someone who has come into compliance after receiving a notice and has had a driver’s licence issued — reissued because they’ve come into compliance. It allows the director to provide shorter notice. So the notice period that we canvassed earlier was 30 days. But this section actually allows a ten-day notice, where the person just recently came back into compliance.
The reason for the shortened notice is that the person’s already been engaged with the enforcement officers, has already understood their obligations, has come back into compliance. But an additional 30 days…. Someone is unfair to their former partner, the person who’s supporting their child. To say, “Well, now we have to wait for 30 days again for them to come into compliance….” They do a shorter ten-day…. “Look, you know what the situation is. We need you to come back into compliance.”
The question of sub (d) says that there is a point in time where that shortened notice becomes unfair again, where you should go back to 30-day notice. So someone has come into compliance. They’ve done 11 months, 12 months of consistent payments, and then they miss a payment. Is it really fair to say to that person: “Okay. We’re just giving you ten days’ notice now”? So the idea was that the short notice should only last for a year, and after that, the director should have to issue a 30-day notice.
There’s nothing stopping the director from issuing a 30-day notice. This section enables the short notice where the director is of the opinion that that will facilitate a more fair resolution of the situation. It’s just another tool available to the director, but a tool that’s only available for a year after the person comes back into compliance.
Sections 2 to 5 inclusive approved.
Title approved.
Hon. D. Eby: I move the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 4:20 p.m.
The House resumed; Mr. Speaker in the chair.
Report and
Third Reading of Bills
BILL 10 — FAMILY MAINTENANCE
ENFORCEMENT AMENDMENT ACT,
2018
Bill 10, Family Maintenance Enforcement Amendment Act, 2018, reported complete without amendment, read a third time and passed.
Hon. D. Eby: I call estimates for the Ministry of Municipal Affairs and Housing.
Committee of Supply
ESTIMATES: MINISTRY OF
MUNICIPAL
AFFAIRS AND HOUSING
(continued)
The House in Committee of Supply (Section B); R. Chouhan in the chair.
The committee met at 4:23 p.m.
On Vote 36: ministry operations, $196,910,000 (continued).
Hon. D. Eby: Mr. Chair, if we could have a few minutes to get the right people in place here.
The Chair: The committee will be in recess for ten minutes.
The committee recessed from 4:23 p.m. to 4:31 p.m.
[R. Chouhan in the chair.]
J. Sturdy: I wanted to come back just to update the conversation we had yesterday. Perhaps the minister will recall that we had talked about the phase 1 units in the RMOW, which are the units that allow for…. Nightly rentals have a 215 covenant on them to allow for nightly rentals, and that nightly rental option is actually encouraged, and it’s expected for these units to be used in that way.
Typically, what would happen is these units would be used in a nightly way, nightly rentals, for three or so months of the year, and then the balance of it is put in a fixed-term lease, which, without the vacate clause, has become impossible to do. So what’s happened is that these units have defaulted back to nightly rentals.
What I wanted to update the minister on was that I was incorrect in the number of units that we would be talking about here. I mentioned several hundred. I did some checking last night, and I found out that the actual number of units that are in phase 1 with the nightly-rental covenant on them is 5,400 units in Whistler. This is a very, very significant number.
If the long-term impact is that all of those units, or the vast majority of those units, are no longer available for a fixed-term tenancy, this will exacerbate an already significant problem in Whistler. I thought it was important that the minister understood the magnitude of that issue.
Hon. S. Robinson: I just want to express appreciation for the member getting more detailed information. I said yesterday that staff are aware of the issue and are continuing to do some work to identify how to best manage the situation. But I thank him for doing the research and sharing that and getting it on the record.
J. Sturdy: While I have the opportunity, I wondered if I could follow up on two housing initiatives in the Sea to Sky, one being the Helping Hands proposal in Squamish.
Then I wondered if there is any update on additional initiatives with regard to the Whistler Housing Authority and the next phase of housing — specifically in Cheakamus Crossing, and if there are any other initiatives that B.C. Housing is involved in at this point.
Hon. S. Robinson: Can the member just repeat the name of the group? He mentioned it really quickly, and I didn’t get to write it down.
J. Sturdy: In Squamish, it’s the Helping Hands Society. There was another proposal that seemed to have languished, as well, with the seniors housing. It was a fairly significant one — I think 230 units in Squamish that B.C. Housing and Polygon were working on. Then the last one would have been any initiatives with Whistler Housing Authority in Whistler. Typically, Cheakamus Crossing is the next focus, but there are other opportunities in Whistler as well.
Hon. S. Robinson: I appreciate the member taking the time to come and ask the question. We don’t have our B.C. Housing staff here with us today, so I can’t give him a direct answer today. But I can commit to the member that we’ll be sure to get that information over to the member so that he can follow up and can be made aware of what the status is of those projects.
L. Larson: I just have one proposal I wanted to put in front of the minister, and I do not expect an answer. I will follow up with the appropriate paperwork.
A group of hotel owners in Osoyoos have formed a society called the Osoyoos staff housing society. They have, in partnership with the Osoyoos Indian Band, which has provided the land, arranged for 40 units temporarily to house some of the 300-plus workers that they will need just during the tourist season. This is not meant to be permanent housing. These are units from, I guess, a fire camp or something that they can move in onto this property. They will then be moved off again. But they need another partner, somebody with a little bit of money just to finish it off.
Like I say, the Osoyoos Indian Band has already put the land on the table. The hotel group has put, I believe, more than $100,000 to purchase, to be able to bring these units there, and they need it serviced. I think it’s about $90,000. If I could leave you the documentation so you could have a look through it, I’d really appreciate it.
Hon. S. Robinson: Well, I want to thank the member for bringing such a creative idea forward. Recognizing that there are partnerships here is always really critical. It’s one of the things that our government is really very focused on — recognizing that when we can bring people together with various resources and assets, we can actually make something great happen in communities right across the province. I look forward to seeing some of the details. I’m sure the member will bring forward all the information needed so that we can take a look at it and see how we might be helpful.
T. Stone: I just wanted to ask a couple of questions of the minister with respect to the Office of the Auditor General for Local Government. I want to preface my comments by saying that I very much appreciated the Auditor General for Local Government reaching out to me not that long ago. We had a really good sit-down face to face. He walked me through the work that’s been done to date and plans for the forthcoming fiscal year. I really do think that the province has an exceptional individual in place in the office. Gordon Ruth is doing, I think, a very good job with a small team of individuals that are working really hard.
Just a couple of questions. My first question relates to capacity in his office. I think he and his team are performing yeoman service with the budget that they have that allows them to engage the complement of staff that they have. I understand there are 13 FTEs, eight of whom are auditors. As I said a moment ago, I have a pretty good sense of the volume that this office is crunching through.
Mr. Ruth did suggest to me quite clearly that there’s more that he feels his office could do that would be of benefit to local government if there was more capacity in his office. I’m wondering if the minister could comment on whether or not she’s actively considering adding some additional capacity to the Office of the Auditor General for Local Government.
Hon. S. Robinson: I appreciate the question. I just double-checked. There are actually 14 FTEs out of this office. Mr. Ruth has done, I think, a yeoman’s job in fixing an office that was in significant turmoil for quite some time. I remember; those days weren’t too long ago. He joined this office only two years ago and has developed significant momentum and stability to an office that was, I think, floundering and rather unstable.
Right now the work undertaken by the Auditor General for Local Government is to take a look at some themes and do some work among various local governments and develop prospective booklets so that other local governments can learn from that perspective — for local government. Now that it’s stabilized, it’s an opportunity to sort of see how well it can function. I’m glad to see that that work is continuing in the way that it’s moving forward.
T. Stone: My question related to capacity. I understand that there are two topics that are currently being audited, water and emergency management, and there are about, it looks like, seven or so sub-audits under those two themes. The auditor general did indicate that there were some additional themes that he would pursue, if he had some additional capacity, that would add value to local government in this province.
Is the minister open to or is she actively considering adding some additional capacity to the Office of the Auditor General for Local Government? If she is, could she provide some details as to what that might look like?
Hon. S. Robinson: I’m sure the member can appreciate that there are many places where people would do more if they had more capacity — meaning that they had a bigger budget. Typically, that’s what that means, in terms of capacity. At this time, I’m just monitoring and making sure that they’re able to deliver what they’ve been asked to deliver.
T. Stone: I think the point I’m trying to get across to the minister is that the auditor general feels constrained in being able to respond to a good number of the audit requests that come in from local governments that are looking for the guidance and the kinds of help that the office of the auditor general can provide.
Mr. Ruth did indicate to me that they would be able to double the capacity of their office and manage half to two-thirds of the incoming requests that they’re not able to get to, to this point, with an additional $400,000 investment.
He’s confident, or at least he conveyed to me that he was confident, that half of that he could find from within his existing budget, repurposing current dollars that they have available to their office. But they would still need a couple of hundred thousand dollars in funding, plus or minus, from government in order to be able to do this.
When you look at the work that the office does and the results, I couldn’t agree more with the minister. Certainly, over the last couple of years, since Mr. Ruth has been there, very, very good work has been done. I’ve certainly heard, as a critic for Municipal Affairs, from a number of municipalities and regional districts that have been engaged in those audits with Mr. Ruth and his team.
They have indicated that they feel there’s really good value for the taxpayers’ dollars. They’re just not able to get to a lot of the incoming requests from local governments for the kinds of support that they would like to be able to provide.
A couple of hundred thousand dollars. I’m wondering if the minister is aware of that request from the Auditor General and if that is something that she would be willing to entertain in the forthcoming fiscal year.
Hon. S. Robinson: Again, I think it’s important to recognize that while this office has been in operation or the AGLG has existed for the last five years, I think, it’s only really been a functioning office for the last two years under the guidance of Mr. Ruth. So as things stabilize, we’ll get a better sense of what’s realistic to get accomplished.
Like I said in my earlier answer, there are many different organizations and opportunities to do more. I can appreciate that there are opportunities, certainly, for Mr. Ruth’s office, as the AGLG, to do a tremendous number of audits. At this point, this is an office that is just stabilized after a number of years of what I will characterize as chaos. I’m looking forward to seeing more stability as we go forward.
T. Stone: I will take from the minister’s response that continued stability of this office in the forthcoming months and quarters may result in favourable consideration on the part of the government. I can certainly get back to Mr. Ruth and let him know that I put a good plug in for his office here. I do appreciate that opportunity.
If I could switch gears now, I’d like to ask a few questions with respect to the municipal and regional district tax, the MRDT, which I will acknowledge at the front end is a tax. Therefore, the ultimate purview of that tax, I assume, would be the Minister of Finance, working in collaboration with the Minister of Tourism.
The tie-in, however, that I see that makes it a valid line of questioning here today with the Minister of Municipal Affairs is the suggestions and the decision by government, in the recent provincial budget and in the companion documents to that budget, to announce that municipalities and regional districts would be able to use MRDT revenues for affordable housing projects in their respective communities.
On the surface of it, it doesn’t necessarily sound like a bad idea. However, the purpose of the MRDT is to generate revenues to be used for tourism and marketing purposes. I guess my first question to the minister would be: what is the minister’s understanding of the purpose of the MRDT? It was created in…. I believe it goes back to 1987 and has been a pretty important source of marketing revenue for the tourism industry.
What does the minister believe the purpose of MRDT really is?
Hon. S. Robinson: The MRDT is to be used for tourism marketing activities. Our government…. Given the current housing crisis and, certainly, given what we’ve been hearing from communities where they’re really struggling with housing — particularly worker housing where tourism is a significant factor as part of their local economy — having the ability to use the MRDT to help with some of the housing challenges that they have has been a game changer.
I can share with the member that the community of Tofino, for example, their biggest challenge…. I met with their chamber of commerce and their council, and they were literally pleading with me around the challenges they’re having around housing, particularly in the summer, when the tourist season is among them. They actually have a campground designated for worker housing — it’s a campground for worker tents — because they just don’t have enough housing. They just can’t manage it. In fact, one of their chamber of commerce members said: “We sell the dream and can’t service the nightmare.”
For them, being able to use some of these resources to provide some worker housing that serves and services the tourist economy that they are dependent on is a logical choice. They’re very pleased, as are many other local governments we’ve been hearing about that have this as an opportunity to help them manage their tourist economy a little bit better.
T. Stone: I don’t think that I would quibble, or members on this side of the House would quibble, with the suggestion that in communities like Tofino and others that are very heavily focused and, in many respects, dependent on the tourism sector, ensuring that there’s accommodation available for those engaged in tourism is an important housing need in their respective communities.
The quibble that I would have and that we’re certainly hearing from a lot of British Columbians is why it essentially pits the tourism industry against the housing industry in local communities by suggesting that tourism revenues that are generated from MRDT be repurposed, to varying degrees in different communities, for housing projects.
I’ll ask the minister this. She did acknowledge in her previous answer that MRDT is there to generate a source of revenue for tourism marketing in communities. Why, then, is the government encouraging that those tourism revenues, to be used for marketing, should be invested in housing projects in communities across the province?
Hon. S. Robinson: I want to, I guess, remind the member that this isn’t about encouraging; this is about enabling. It’s about giving local governments another tool, where they make the decision about how to best use and meet the needs of servicing the nightmare in communities like Tofino. It’s so they can make the choices for their local community and make sure that they’re able to, like I said in my previous answer, service the nightmare.
T. Stone: Could the minister indicate what analysis her ministry has done, or she has participated in with other ministries, to determine how much MRDT revenue is anticipated to be siphoned off from being focused on tourism marketing initiatives to be used for housing projects?
[L. Reid in the chair.]
Hon. S. Robinson: Again, our government certainly heard that in some communities where they have been very successful at marketing and the marketing has worked — because they sell the dream, and they sell the opportunity — it’s created unintended consequences. It’s created other challenges for these communities.
Being able to properly service what they sell is really critical. Our government made the decision to enable local governments to use some of these resources so that they could properly service the dreams that they sell, the fun that they sell, the tourism that they sell. This is an opportunity for local governments to make choices that work for their local economies.
T. Stone: Is the minister, then, basically saying that as one of a series of tools in the toolbox to address housing challenges and the need for more affordable housing in different communities, she and government are just fine with encouraging a redirection of MRDT revenue from tourism-related initiatives — tourism marketing initiatives that are critical to the tourism industries in communities in different parts of the province — and that those dollars should be re-routed to affordable housing initiatives in those same communities?
Hon. S. Robinson: What I am saying is that this is another tool that local governments can use to respond to a housing crisis in the communities where they have a challenge, particularly around worker housing and tourism housing. They don’t have places; they don’t have workers.
I met with the Tofino Chamber of Commerce. They were telling me stories of not having the ability to keep restaurants open in the evening because they didn’t have staff. There was no place for staff to live. While they’ve been quite successful in marketing as a tourist destination, they were no longer able to service. They were no longer able to maintain their staffing so that they could actually create the dream that they’d worked so hard to sell.
This is an opportunity, an optional opportunity, for local governments, where they need to, to make sure that they can have a successful tourist economy.
T. Stone: Then could I ask the minister to provide the opposition with a sense of what analysis has actually been done to project just how much MRDT revenue the ministry expects to be redirected from tourism and marketing initiatives to affordable housing? How many units of housing does the minister anticipate will actually be built in communities as a result of redirected MRDT revenue?
Hon. S. Robinson: I want to, I guess, remind the member that this is a choice it’s enabling for local governments. There’s no policy or no direction coming from government. It’s just an opportunity for local governments to respond to crises that they may be experiencing in their own communities. But if the member has questions about the design of the tax, that was work done by the Minister of Finance.
T. Stone: My question was: what analysis has been done? Obviously, I would hope that some analysis was done in the Ministry of Municipal Affairs, in conjunction with Tourism, to determine in part how much revenue the ministry is anticipating will be siphoned off of the MRDT revenue stream and be redirected to Housing and what that translates into in the form of units of affordable housing.
The minister didn’t answer specific questions yesterday about the allocations of her ministry’s affordable housing targets, which is disappointing. But perhaps today she would be willing to provide some sense to British Columbians as to how many units of affordable housing she anticipates this policy choice of government to redirect MRDT revenues is actually going to generate.
Hon. S. Robinson: I thought I did answer every single question yesterday.
Like I said earlier, this is the choice of local governments. They get to have the opportunity to respond to local needs. That’s what we expect them to do.
T. Stone: I’m wondering if the minister could answer this question. Does she feel that it’s fair and reasonable to ask a municipality, to ask a local government, to essentially choose between investing in tourism marketing initiatives within their respective communities or affordable housing projects?
Does she feel that that’s a fair and reasonable choice that communities should be faced with — essentially, tourism opportunities or affordable housing opportunities in a respective community?
Hon. S. Robinson: Well, it’s a very interesting dichotomy that the member is choosing to speak to, because I don’t see local governments behaving in that way at all, actually. I’ve spent a considerable amount of time in local government. I’ve been the critic for local government, and now I’m the minister responsible. I pride myself on the work that I’ve done over the years with local governments around how they best work and meet the needs of their citizens, of their communities.
I have a lot of respect for the work that local governments do. They’re always managing various challenges, whether it’s engineering of local roads and building sidewalks or building more sports facilities or libraries or whether it’s affordable housing or how to market and build their local economy. Local governments do that work all the time and are making choices all the time about how to best meet the needs of their constituents. I have tremendous confidence in their ability to balance all of those and make the choices that best meet the needs of their communities.
There are 189 different local governments. I have certainly had opportunities over the years to go to area association meetings all over this province — unfortunately, I don’t get to leave this place very often, so I haven’t been able to get to many — talking with mayors and councillors and regional directors about what’s going on in their communities, hearing about the challenges that they have and the tools that they need in order to be responsive to the needs of their specific community. I have tremendous confidence in their ability to make the decisions that best meet the needs of their constituents.
T. Stone: I concur insofar as…. We have every confidence in the ability of local governments to make choices that are right and reasonable for their respective communities.
What we’re talking about here is a provincial government policy that essentially forces a choice in a community between continuing to see the direction of MRDT revenues to tourism marketing initiatives, which is a very worthy and important area of investment in a community, or redirecting those revenues to affordable housing projects, which are also very worthy and important in a particular community. Communities are being asked to choose one or the other with respect to MRDT revenue. We don’t think that that’s just, that that’s reasonable.
I’m wondering if the minister could indicate for this House, or just outline for this House, her understanding of how the MRDT actually works, how it’s actually collected and how it’s actually structured. Then perhaps we could go from there in terms of what the impacts are of the policy choice government has made in allowing a redirection of MRDT revenues. Is the minister aware, and could she explain to this House, how the MRDT tax piece actually is structured and how it works?
Hon. S. Robinson: Again, I want to point out that there’s nothing about this enabling legislation, this enabling change, that is forcing any local government to do anything different. Our government has made a $7 billion commitment to housing affordability so that people have the kinds of homes that they need, so local governments are not alone in addressing housing affordability.
However, some local governments have significant pressures and want some flexibility that would allow them to address some of the housing challenges they have around the tourism piece. The mayor from Tofino is so grateful for this change, because it allows her to be responsive. It allows her to make the choices that she needs, in the moment, so that she can address significant challenges that are happening in her community.
But again, no one has to do anything different. They can continue doing whatever it is that they’ve been doing. It’s just an opportunity that’s available to them, should it make sense for that community to make use of these additional resources.
T. Stone: The question was, actually: does the minister understand how the MRDT actually works, how it’s structured? So I’ll ask it a different way. The success of the MRDT revenue stream rests entirely on the backs of hoteliers, who agree to collect the revenue. You can correct me if I’m wrong, Minister, but my understanding is that these are five-year contracts. It’s different time frames in different parts of the province. But hoteliers have to agree to collect the tax.
They do so on the basis of an understanding as to what those tax revenues are going to be actually utilized for, and that understanding is that those revenues would be utilized for tourism marketing initiatives. What the government is doing through this policy decision here is saying that if you want to continue to use it for tourism marketing initiatives, fine, but we’re going to facilitate the ability of MRDT revenues to actually be used for affordable housing projects.
Now, I’ve asked: what analysis has been conducted to give any semblance of context to this decision, insofar as MRDT revenues that might be redistributed to affordable housing projects? Get no answer on that. What analysis has been done on how many units this would actually build? Get no answer on that.
The minister talks about the affordability crisis. I agree with her: more needs to be done there. But there’s a tourism crisis brewing in this province as well. There’s a cumulative impact of Family Day and the rising minimum wage — and now the decision that the government has made around the MRDT.
What can the minister say to answer the question: what if hoteliers say no? What if hoteliers say: “No, that’s not what we signed on for. We didn’t sign on to collect this revenue stream so that it could be repurposed for affordable housing projects”?
What does the government do then, in that scenario? Is the minister prepared to change the legislation, to force their hands? What is the minister’s message to the tourism sector and to hoteliers, in particular, who have in good faith negotiated the terms that exist in how MRDT is collected?
Hon. S. Robinson: Again, local governments…. Giving them this enabling opportunity to be responsive to their communities includes working with everybody in their community. That includes their local tourism sector that’s in their communities. They need to work together in order to benefit their local economy and their local communities.
Really, in this case…. When I think about those that I’ve met who talk about the challenges of where their workers can live and the challenges that that presents, whether it’s people who clean the rooms in their hotels, people who work in restaurants, people who service the tourism sector, that’s a real struggle. They can’t sustain their businesses because of that. So providing this additional tool among all the other tools that our government has committed and is delivering is about making sure that there are opportunities for the sector to grow and to grow responsibly.
Like I said before, we certainly heard about: “We sell the dream, and we can’t service the nightmare.” That really drove that home for me.
S. Bond: Thank you to the minister. We should be clear about this question. It is not about local governments. This is not about this side of the House questioning local government’s ability to make decisions and to work with people in communities. This is about the collection process for the MRDT.
Let’s be clear. Communities work very hard to gain approval from hoteliers in British Columbia to actually earn the right to collect the MRDT. When hoteliers, often after very difficult discussions…. The minister, I’m sure, is aware that in some communities, there may be three hotels and you have to gain approval of two hotels. So a pitch is made to those hoteliers to say: “We need to collect this so that we can build the tourism sector.” Nowhere in that discussion was there an approval by hoteliers based on affordable housing.
We have every confidence in local government as well. I’m very proud of mine. They do a great job. The issue here…. The minister talks about an additional tool. The minister is providing a tool that was not agreed to in discussions between the tourism sector in their communities and hoteliers.
Can the minister tell this House whether, before adding this tool, anyone went and talked to the hoteliers, who are a critical component of any community even collecting the MRDT?
Hon. S. Robinson: As the minister responsible for Municipal Affairs, I spend a considerable amount of time talking to local governments about their needs. I want to, I guess, remind the member, who I suspect knows, that when it comes to the collection of the tax, that’s actually the work of the Minister of Finance, and that comes out of her office.
S. Bond: It’s interesting that suddenly it’s the work of the Minister of Tourism, yet this is the minister who has added the flexibility for municipalities to use this as one of their tools. So we should be clear. The minister has changed the rules of the game. Tourism marketing was the intent of the agreement by hoteliers across British Columbia — in many communities, hard fought to earn the right to collect the MRDT.
The minister has, in these estimates, referred to this issue, so I’m going to pursue this line of questioning. Does the minister know on what basis hoteliers approve the use and collection of the MRDT?
Hon. S. Robinson: Once again, while I appreciate the question, it’s the Ministry of Finance that designed the tool and the collection.
S. Bond: Let’s talk about the tool, then, since the minister isn’t going to have a discussion about the fact that the government requires hotels’ approval to collect the MRDT. In fact, it is contingent upon this being used for tourism marketing. I can’t imagine that there are many hoteliers in British Columbia who today would say: “Yes, I’m absolutely happy to sign on to the MRDT proposal, because it’s going to build affordable housing.” That is not what the MRDT’s purpose is.
As much as this minister wants to pitch it as, “Well, it’s just another tool,” it is fundamentally flawed when it comes to the purpose of the MRDT. This is a way to either find another source of funding for housing, and the minister…. We certainly have acknowledged that there have been investments made by this government. But we should be clear about the purpose of this tax and exactly how hoteliers today are justifiably concerned — and so is the tourism industry.
Let’s talk about the tool. The minister talks about this now giving some communities, or communities that have expressed concerns, the ability to deal with affordable housing “particularly around worker housing related to the tourism sector.” Will this tool, then, be restricted, by regulation or in some way, to deal with the issues that are linked directly to the tourism sector?
Hon. S. Robinson: Once again, the member…. I know that she’s passionate about this subject. She’s asked again about the design of the tool, and again, that came out of the Ministry of Finance.
S. Bond: The minister’s responsibility is affordable housing. She’s had several comments about that previous to this debate. The question was if this will be restricted to use for affordable housing related to the tourism sector, which the minister referenced earlier in her remarks.
Perhaps I will ask another question. The minister has referred to the communities that have made it clear to her that affordable housing related to the tourism sector….
We should be clear. MRDT is revenue generated to support tourism marketing. The changes that this government is suggesting have been captured under the umbrella of: “It will give the municipalities an ability to use it for affordable housing.” I’m not sure how that connection was made, but it is a significant concern to the tourism sector, to the hoteliers who, in good faith, agreed to collect the MRDT. That has been a significant struggle in many communities. Opening this door, which this minister has referred to numerous times today, is causing significant concern.
Can the minister tell us and tell British Columbians today what other communities came to her and said, “Open the door to other uses of the MRDT,” aside from Tofino?
Hon. S. Robinson: I appreciate the concerns expressed by the member, but again, I have to say that local governments don’t work in isolation. They don’t just sit in city hall and make decisions without talking with their local folks. So in those communities where they realize that they have really built a significant local economy that is dependent on making sure that there are staff opportunities to have the housing that they can afford on the wages that they’re paid, it’s really very critical.
Local governments work with their communities to determine how best to respond to some of those challenges. In some communities, it might make sense to use the MRDT portion of it to help them respond to what’s happening on the ground.
Again, this is one of those tools that is just available. It’s not a requirement. It’s not an expectation. It’s just another tool available to local governments that want to be responsive to the needs of their local community.
S. Bond: I didn’t hear a list of the communities that came to the minister.
I think the key point that continues to be missed here is that this discussion is not about local communities and municipalities. It’s about how the MRDT approval process works and what that agreement with hoteliers is based on. It is based on the fact that the money will be used for tourism marketing. So while local governments have the opportunity, as the minister points out, to use this tool, that’s not what hoteliers signed up for. It is not what the tourism industry expects.
I would like to point out that there are very different circumstances across British Columbia related to housing for seasonal workers or tourism workers. It has not diminished the concern of tourism organizations across the province, including in my own region. There have been letters directly to this government asking for consultation before this decision was made — with TIABC, the main organization that speaks on behalf of tourism operators across the province. Yet here we find that this decision moves forward, despite significant concerns by the industry.
Did the minister…? First of all, before I ask that question — my last one; I know other colleagues have questions to continue — I want to recognize that letters have gone to the Minister of Finance and others expressing significant concerns, particularly from regions which are not experiencing the kinds of issues that Tofino might be, about the fact that they worked hard to find approval for MRDT, based on a certain set of expectations which this government now has randomly changed.
I’ll tell you. There is significant concern about hoteliers’ reaction to the fact that they have to agree to collect this tax. And if isn’t going to tourism marketing, this decision might significantly negatively impact the tourism sector, because hoteliers will simply say: “Not doing it.” Certainly, we’ve heard from Tourism Prince George and a variety of other organizations across the province that this is a concern — deeply concerned about the opportunity to even consider use of the MRDT for some form of affordable housing.
Big concerns ask for discussion. So could the minister tell us: was there a cross-ministry approach to making this decision? Did the Minister of Finance sit down with the minister who’s conducting these estimates today, along with the Minister of Tourism, to actually contemplate what consequences there would be, across a variety of sectors, of simply saying: “Yup. We’re going to give local governments another tool”?
Hon. S. Robinson: In response to the member’s question, I can assure her that I meet with my colleagues on a range of issues all the time. We talk about our various files, the interoperability and the interconnections between the work that we each do. I also note that the member is aware that tax policy does come out of the Minister of Finance.
D. Barnett: Minister, the Cariboo Chilcotin Coast Tourism Association has struggled for years to get the operators to come to the table. After two years of hard work, finally the CCCTA was able to have the operators come to the table and agree to get into this MRDT taxation process. It was just approved by your cabinet a month or so ago.
I have a letter here that I received today from the Cariboo Chilcotin Coast Tourism Association that I am going to read to you. It says:
“Dear MLA Barnett,
“As one of the newest and largest MRDT collection areas in the province, we are very concerned about the proposed regulatory changes to the MRDT — namely, including any language around ‘affordable housing’ or ‘non-tourism expenditures.’ I have personally heard concerns from several of our accommodators who feel ‘betrayed and deceived,’ as this was not within the allowable use of funds when they provided their signature of support.
“As a regional tourism organization, we are supportive of affordable housing for both British Columbia residents and seasonal tourism employees. Innovation is required to find solutions to our labour and housing challenges in British Columbia. However, under the current two-tiered approval for MRDT, accommodation signature and local government approval, the proposed regulatory change would have negative effects. In our region, the accommodators have been very clear that if the MRDT funds are to be provided to any local government or used for anything other than tourism marketing, they will withdraw their support — effectively, an elimination of visitor investment in rural B.C. of $1 million in marketing.
“Will the government be providing alternate funding programs to replace this investment? We agree that there could be some regulatory changes to the MRDT — namely, eliminating the need for local government approval for an application — but are hearing strongly from our industry that affordable housing should not be placed in regulation.
“If you have any questions on this matter, do not hesitate to contact me directly. We look forward to a response from government on this matter.
“Kindest regards, Amy Thacker, CEO, Cariboo Chilcotin Coast Tourism Association.”
Hon. S. Robinson: I want to encourage the member to provide the letter to the Minister of Finance. I’m sure she would appreciate reading it.
P. Milobar: My family has a bit of history with the MRDT in Kamloops. We were hoteliers. My mother was the first female president of the B.C. and Yukon Hotels Association. We fought against the MRDT being implemented in Kamloops, when it first came out, because the structure that was going to be used locally actually wasn’t very good. Several years later, after much negotiation, the program changed, and we actually championed the implementation of the MRDT coming forward.
The question I have for the minister is very straightforward. Given that the hotels are the ones that decide whether to collect the tax or not, and they come up for renewal periodically, if a municipality chooses to start using the tax revenues collected for affordable housing — a very clear question here, and we’re hoping for a very clear answer — and the hotels decide to withdraw from collecting MRDT as a result, is the Minister of Housing prepared to make up the difference so that a community that starts down the path of affordable housing is able to continue to provide the affordable housing when the MRDT revenues disappear?
Hon. S. Robinson: Again, I want to talk about the role of local governments here, because they’re on the ground. They know what’s going on in their communities. They are in many ways…. I know that the member comes from local government. One of the things I love about local governments and appreciate about them is that they really know what’s going on. They know what the lay of the land is, right in their communities.
I know that local governments work with their local communities, including the tourism operators, a whole range of tourism operators, to make the decisions that best meet the needs of their communities. With 189 different local governments, all with the different kinds of challenges and with the different opportunities, giving them this additional tool allows them to be as flexible as they can be, to make sure that their communities thrive. That’s an expectation that I have just as a person who values local government, and I know that that’s how local governments want to be operating as well. I have confidence that they’ll take that responsibility very seriously.
T. Stone: We’ve all been listening with a great deal of interest as the minister has provided responses to, I think, some very specific questions. What we’ve learned in the last half hour or so is that when it came to this decision that government has taken with the MRDT, there appears to have not been any serious discussion, cross-ministry, on this particular initiative.
There appears to have been no analysis done as to what the impact of this decision would actually be on tourism marketing revenue that’s generated from MRDT, no analysis as to what the projected number of units of affordable housing would actually be through the redirection of MRDT revenues.
Now we learn that there clearly is no plan should hoteliers say no to this plan and indicate that they will have nothing to do with this, considering that they signed agreements to collect the tax on the basis of the revenues being directed to tourism marketing initiatives. There’s no definitive indication from the minister as to the rationale for essentially pitting affordable housing advocates against tourism enterprises and tourism advocates in a community with, essentially, a local government being stuck in the middle.
This has never been a question of: does one feel that affordable housing projects are more or less worthy than tourism marketing initiatives? That’s not at all what we’re trying to get at here. What we’re trying to understand is: where did the rationale come from, inside of government, to think that it was a good idea to essentially — as a tool; the minister consistently refers to this as yet another tool in the toolbox for local governments — pilfer MRDT revenues, which are there to invest in tourism marketing initiatives?
What we’re hearing from communities is that they don’t want to be in the middle of this discussion. If the government is serious about making affordable housing investments — and I believe that they are, to an extent, and we have acknowledged recent initiatives related to affordable housing stock in the province — that’s one thing. But to suggest that it makes sense to encourage affordable housing projects in certain communities on the backs of tourism-related revenue generated from the MRDT, which is collected in good faith by hoteliers who have signed on to collect this revenue on the basis of the revenue being invested into tourism marketing initiatives, is simply, I believe, grossly missing the mark here.
As my colleague from Kamloops–North Thompson tried to point out in his question: what if the hoteliers say no? Where do the tourism operators make up the difference in terms of reduced MRDT revenue?
I think the two final angles on this that I wanted to…. First, I wanted to make sure it was clearly understand in the record that as the member for Prince George–Valemount indicated in the context of Prince George, as we’ve heard from the member in the Cariboo-Chilcotin in the context of her tourism operators….
In Kamloops, Tourism Kamloops — very, very worried about losing MRDT revenue. A letter that was sent to the Minister of Finance and, I believe, copied to the minister and myself — February 28, 2018 — highlights very clearly that the tourism industry in Kamloops employs 2,600 people. It generates $449 million in economic impact, with 1.8 million visitors annually. It’s thriving. It’s growing.
They go on to say in their letter here: “A key reason for our success is the partnership between the province, the local commercial accommodation sector, Tourism Kamloops and the city of Kamloops, who invest revenues from the municipal and regional district tax, the MRDT, into sales and marketing initiatives that generate results.” They credit this revenue source as being an integral component of their ability to meet their performance objectives and to generate revenues for tourism operators and key stakeholders. They’re very, very concerned about the repurposing of MRDT revenue.
Subsequent conversations with a number of hoteliers in Kamloops…. They want to pull out if this is the government’s intention, which means less revenue for tourism marketing initiatives, and of course, that money will not be flowing through to affordable housing projects. So it’s a lose-lose — very poor policy choice.
My last question on this would be as follows. Back in February, the Finance Minister, when she was introducing the Airbnb tax, said: “The PST money goes into general revenue, and we will utilize it for housing measures that you will see coming in the budget.” We did see some of those housing measures, but she goes on to say: “The MRDT is a tax that will go to municipalities for tourism. So they will be able to utilize those dollars for tourism, just as they do with the hotel tax.” That was the Minister of Finance on February 7, 2018.
My final question to the Minister of Municipal Affairs. Does she agree with her colleague the Minister of Finance, who, again, said: “The MRDT is a tax that will go to municipalities for tourism. So they will be able to utilize those dollars for tourism, just as they do with the hotel tax”?
Hon. S. Robinson: Well, first of all, I want to respond to the member’s comments. He talked about local governments “pilfering” from the MRDT.
I don’t know what his experience is with local governments, but I have a tremendous amount of respect for them around making the kinds of responsible decisions that they need to make to meet the needs of their communities, including the tourism operators. I don’t see them as pilfering anything. I see them as being responsive and responsible with their obligations to make life better for their constituents.
Again, our government brought forward a number of tax initiatives in our budget. These are all the responsibility of the Minister of Finance.
T. Stone: My comment and the use of the word “pilfer” are in reference to this government. It’s this government, through this policy choice, that is essentially pitting, in communities across this province…. Because she can’t name any communities beyond Tofino, we don’t know who she actually consulted with. It doesn’t sound like there was, actually, engagement or consultation with local government or the UBCM.
We’re saying she’s pitting…. Through this policy lever, the government is making a conscious decision to pit affordable housing advocates and their worthy cause against tourism operators and the importance of tourism as a critical economic generator in communities across this province. The government, through this policy, is pilfering MRDT revenues. Let’s be very clear about that.
With that, I’m going to turn the time over now to my colleague from Skeena, who has a couple of questions on a completely different topic.
E. Ross: The Resource Benefit Alliance. There was an announcement made by the government on April 10, 2018, in relation to $300,000 in support of RBA communities’ continued efforts to strengthen economic development in the region.
I just want to know: in terms of the minister’s responsibilities, what is the minister’s action plan to achieve the RBA communities’ goals of revenue-sharing?
Hon. S. Robinson: I thank the member for his question. Our government is pleased to have been able to meet with the Northwest B.C. Resource Alliance over the last number of months. We continue to meet with them to see how we can help them achieve their goals.
E. Ross: It’s pretty specific, what the RBA wants. They want revenue-sharing. The announcement talks about $300,000. It talks not about revenue-sharing but a fund that’s put in place to “build relationships with First Nations, labour, major project proponents, local business and the non-profit sector.”
Aside from that announcement on the funding, there have been a number of different formulas and possible sources of funding that have been discussed that could basically achieve the goals of the RBA. Have these formulas and possible sources of funding been discussed with the RBA to date?
Hon. S. Robinson: That’s actually the kind of work that we’re doing with the RBA on a regular basis, in terms of looking at how to help them best meet their needs.
E. Ross: Yeah, okay. Is there any opportunity to see the possible formulas or any types of sources of funding to achieve this? Because I get it all the time. I get asked about the way this is going to roll out and which pot of funding it’s going to come from.
The biggest discussion point seems to be on future funding from future resource development coming from the northwest. Is that where this government is leading?
Hon. S. Robinson: Our government is committed to continue working with these communities to identify ways to help move this forward as things grow in the northwest.
E. Ross: Okay. Thank you to the minister for that answer, I think.
In relation to the $300,000 that was given as funding to the RBA, is there a mechanism that the government will employ to measure the success of this funding? How will you measure whether or not the RBA has built relationships with First Nations, labour, major project proponents, local business and the non-profit sector? And will that be reported not only to the RBA but, as well, to the communities in general that are represented by the RBA?
Hon. S. Robinson: I’m sure that the member is well aware that there are 21 communities across the northwest that have formed the RBA. That, in and of itself, is a bit of a miracle, so congratulations to those communities, because I know that’s not easy work, in order to bring people together for a common purpose. So providing them with some funds to help them continue to build relationships, to help them continue to engage, particularly First Nations and others, so that they’re working in healthy relationship and with collaboration is critical to being able to move forward.
We have asked them to report back periodically to make sure that things are still on track. That’s an expectation that we have.
S. Cadieux: To the minister, good afternoon. Switching gears to TransLink….
Interjection.
S. Cadieux: Yeah, new hat.
Minister, there has been explosive growth, to say the least, in my constituency over the last number of years and in Surrey generally. But the majority of that growth has fallen in the Cloverdale and South Surrey area — hence the new riding.
There has been a commitment by the previous government and now an additional commitment by your government to rapid transit programs that includes LRT in Surrey, which is terrific. It’s great. But none of the planning to date seems to take into consideration the rapid growth in South Surrey.
I have been receiving repeated calls from constituents, and now businesses that cannot get workers, because there’s no transit to this rapidly developing area, an area that has had more than 1,000 new homes in the last couple of years and 10,000 slated for development over the next few. There’s, I think, three million square feet of retail space and no transit in the area, at least nothing that serves the needs of the workers in the area, which means later schedules and so on.
As well, down at the Summerfield area, where there is also increased development — which is the area down by the Pacific Border Crossing between 176 and 172, between Eighth Avenue and the border — there is an elementary school, lots of housing, some seniors sort of retirement housing and yet little-to-no transit access.
The communities have been putting those needs forward to TransLink for some time, but it seems to be a relatively slow process to see progress in addressing those issues. Can you explain, Minister, how TransLink will address those issues in emerging communities while the vast majority of funding is going to the large rapid transit projects?
Hon. S. Robinson: I appreciate the member’s concerns and commitment to her constituents, but I also want to remind her that it’s the Mayors Council that determines the plan. The plan, beyond the LRT investment, does include significant improvements in bus service across the region, but TransLink makes those decisions about how that gets dispersed and how the decisions are made.
I’d like to encourage the member to speak directly to her mayor, because that is, at the local level, where they’re making the decisions around that.
J. Thornthwaite: I have a question for the minister. As she’s probably well aware, the number one issue on the North Shore is actually traffic and transportation. Last year when we were in government, we announced the $198 million investment for the Lower Lynn four-phase interchange project, which is going very, very well, and the constituents are very pleased about that. But that is definitely not enough.
Subsequently, a few of us got together and put together a neat plan, including a map, of SkyTrain to the North Shore. We feel that this would definitely help to alleviate traffic congestion in the entire North Shore and help to get people out of their cars — and, obviously, alleviate congestion in the long term.
My question to the minister is: has she considered SkyTrain to the North Shore as part of the major plan for the North Shore region?
Hon. S. Robinson: Again, I appreciate the member’s query. I know that my colleague the MLA for North Vancouver–Lonsdale has been very integral to pulling together the leadership on the North Shore, recognizing that it gets pretty bogged down. I appreciate that.
But again, the mayors create the vision for where to put investments going forward. I would certainly encourage all members of the House representing North Shore communities to make sure that their voices and their concerns are heard with the mayors and make sure that it gets included in the mayors’ vision as they continue to move forward.
J. Thornthwaite: Thank you for that answer. Yes, I know that one of the current mayors in the North Shore, from the city, has actually suggested his own idea for a SkyTrain in a different area. My focus was on the area along the Second Narrows Bridge, the Iron Workers Memorial Bridge, because that’s the choke point coming from the Port Mann, particularly considering that the tolls were removed. Even people that are coming from Coquitlam or Surrey, etc., get stuck in North Vancouver traffic as they’re heading west. That’s why my focus was on the Iron Workers.
I appreciate the comments from the minister to keep up the work with the mayors, but I do know that at least one of our mayors is actually supportive of the idea.
Hon. S. Robinson: I’m assuming there are no more questions?
T. Stone: I recognize that we’re rapidly running out of time for today. TransLink — its operations, its planning, the partnerships with the federal government and local and provincial funding sources — I would say, is a huge topic and warrants more discussion than we will have time for in the next five to seven minutes.
I did want to ask the minister if she could first provide an update for us here today on where the government is at with phase 2 of the mayors’ plan insofar as the investment side of it goes. It was good news recently that the region, the Mayors Council and the region, did come to a place of agreeing on how to generate its share of the funding required to move forward with the province and the federal government.
I’m wondering if the minister could provide me with a current breakdown. Is it still a 40 percent cost share for the province, 40 for the feds and 20 for the local? What is that breakdown for phase 2, and what does that translate into in terms of total dollars? What is that financial contribution in dollar terms going to be from each of the three levels of government towards phase 2 of the mayors’ plan?
Hon. S. Robinson: I want to acknowledge the good news about the coming together of three levels of government. That has been, I think, a struggle for a significant amount of time. I think how pleased British Columbians are, as I think everybody in this House is, that we’re going to be able to move forward with a significant investment — and getting people out of their cars and home to their families sooner. I’ve never met anyone who likes to be in traffic.
The cost share. We’re still operating on the cost-share arrangement, the 40-40-20 that the member mentioned. Right now the business cases are being reviewed by the federal government, so it’s premature to actually note exactly what the actual dollar cost is, as the business cases are still working through the systems as they are required to.
T. Stone: I have to note that there have been a number of, obviously, reports and articles that I think flowed from the regions, coming to a place of certainty on the regional cost contribution. These articles and reports have suggested that the project would likely come in, around phase 2, at about $7 billion. The region has also indicated in their work — through the combination, I believe, of three different levers, the biggest one being a projected fare increase — that they’re looking at generating about $2.5 billion in new revenue.
The federal government, if I understand correctly, in terms of their 40 percent cost share in dollar terms, had indicated that the max that they would contribute is $2.2 billion, looking at the agreements that have been signed. I just want to make sure that all of the math adds up here.
Does the minister…? Is she able to speak to an overall, global project estimate at this point? Is the $7 billion number accurate? Is the provincial share going to still be in at around that $1.197 billion amount? Are the feds still in for $2.2 billion, and is the region expected to raise some amount up to $2.5 billion?
Hon. S. Robinson: TransLink is working on their ten-year investment plan. We’re expecting that in June. The business cases for these projects are currently under review, so it’d be premature to get into specifics until we have that work done. But I expect it all to come together over the next number of months, and we’ll certainly have an opportunity to see the specifics, then.
T. Stone: This last question just has a few different parts, but I won’t expect the minister to answer verbally today. Perhaps she could commit to getting back to me in writing.
Just a final follow-up on the phase 2 funding of these TransLink projects in the Lower Mainland. I’m wondering if the minister could get back to me as follows. When is government anticipating to actually have shovels in the ground on the first project?
Perhaps that could be broken out in terms of Surrey LRT and the Broadway project. What are the current projected completion dates for the different phases of these major projects? And is the government contemplating, as part of their business planning process, entering into any public-private partnerships for the delivery of these multi-billion-dollar projects that are so desperately needed in the Lower Mainland?
With that, I want to thank the minister and her staff for, I think, a thoughtful exchange on these TransLink matters as well as the broad range of other issues that we canvassed today in the Ministry of Municipal Affairs and Housing and TransLink estimates.
Vote 36: ministry expenditures, $196,910,000 — approved.
Vote 37: housing, $453,988,000 — approved.
ESTIMATES:
OTHER APPROPRIATIONS
Vote 49: Auditor General for Local Government, $2,600,000 — approved.
Hon. S. Robinson: I want to just take a moment to thank all the members on the other side who took the time to ask questions — ask questions about their communities, housing, local government and TransLink. I appreciated the exchange and the opportunity to talk about some of the great work that I believe our government is doing.
With that, I move that the committee rise, report completion of the resolutions and ask leave to sit again.
Motion approved.
The committee rose at 6:28 p.m.
The House resumed; Mr. Speaker in the chair.
Committee of Supply (Section B), having reported resolutions, was granted leave to sit again.
Committee of Supply (Section A), having reported progress, was granted leave to sit again.
Hon. S. Robinson moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 1:30 tomorrow afternoon.
The House adjourned at 6:29 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); R. Kahlon in the chair.
The committee met at 4:05 p.m.
On Vote 18: ministry operations, $1,792,612,000 (continued).
L. Throness: We’re continuing on our discussion this morning about market-based operators in particular. I wanted to point out to the minister that the latest round of capital funding that was announced on December 4…. There was a press release and a notification of all who applied and received funding, along with the spaces they created. This was when market-based providers were still eligible for major capital funding.
We got our excellent B.C. Liberal researchers to take apart that press release. We found that equal funding was given to the non-profit and market-based sectors — about $6 million each. But the market-based sector cost, per space, was about $6,000, while the non-profit-sector space cost was $14,000, more than double the cost of the market-based sector.
Would the government admit that market-based providers provide a bigger bang for the taxpayer’s buck and that market-based providers are the engine for generating new child care spaces? And would she restore major capital funding to them?
Hon. K. Chen: To be clear, we have not. I’ve mentioned that already during the past few days. We have not released the details of our new major capital. It’s going to come in the coming weeks and months. We’ll be happy to share that information with the member opposite when the new major capital details come.
In terms of the past program, the most recent major capital that we announced last year, which the member had mentioned, did allocate funds for both non-profit and also what the member has called “market-based providers,” the private providers. So it did have allocated funds.
If the member opposite is looking at the difference of different types of child care and how much it does cost to create those child care spaces, as the member already knows, this is the first time a government is putting together a comprehensive strategy to address child care issues. That also includes looking into the sector a bit more. That is the work that we’re doing. We’ll be more than happy to share our findings as we look into this very diverse sector and see how much it does cost for different types of child care services.
Again, because we’re really providing affordability relief, accessibility and also quality of child care service, this plan does include a lot of things. I’m pretty sure we’ll continue to look into the sector, to work with the sector and also get more information. We’ll be more than happy to share any information we have in the coming months and days.
L. Throness: I want to ask a few questions about the employer health tax. First, how many providers in B.C. will be subject to the employer health tax, and what would be the total cost to child care providers in B.C.?
Hon. K. Chen: Based on the result of the most recent 2017 annual provider profile survey, approximately 100 licensed group child care facilities may be subject to the new employer health tax, which will come into effect January 1, 2019. But for further questions or details about the employers health tax, I think it would be better for the member to redirect it to the Ministry of Finance.
L. Throness: I appreciate that information.
In the past few months, we’ve had a quintuple whammy. We’ve had a minimum-wage increase. We’ve had increased inflation. Fuel is going up. Hydro went up on April 1. Everything is going up, and the employer health tax, for some, will be the last straw. One market-based provider, a large one, told me that she will likely go bankrupt because of it.
Has the minister met with the Finance Minister to express the concerns of the providers, to talk about exempting child care from the employer health tax? If she hasn’t met with the Finance Minister, will she do that right away?
Hon. K. Chen: Yes, I do have regular conversations with the Minister of Finance, who is very supportive, of course, of our child care plan and has allocated a $1 billion historical investment to create a child care system here in B.C.
Further details about the employers health tax should be redirected to the Ministry of Finance.
L. Throness: It is within the minister’s purview to calculate reasonable fee increases. So will the minister, at the very least, take into account the new employer health tax in her calculation of a reasonable fee increase?
Hon. K. Chen: Yes.
L. Throness: I want to go on to the fee reduction program now and ask a few more questions about that — probe a little bit. Under the fee reduction program, millionaire families will get $350 a month as well as low-income families. Why would the government give money to those who don’t need it? What’s the rationale?
Hon. K. Chen: We have two initiatives. One is the fee reduction initiative, which the member opposite has mentioned, which is an across-the-board fee reduction, working with licensed child care providers to help families to make child care more affordable, which is consistent with our principle of creating a universal child care system that will benefit all families, regardless of where you’re from, your income, your background, who you are or where you are in B.C.
Every family deserves the fair opportunity to have affordable, quality and accessible early learning and child care opportunities. That being said, we do have the second initiative that is income-tested, which is based on the parent’s application. That affordability relief will come out later this year. So the two affordability measures will help all families, many families, in the coming years, in B.C. to get better services and quality, affordable child care.
L. Throness: I would think that the rule of the taxpayer is that government benefits go to those who need them.
I have another question, though. Group reductions for infant care are $350 per month, but family category infant care gets only $200 per month. Infants typically require double the staffing as older children, whether they’re in group or family care. The costs are the same for both.
Here’s what a family care licensed provider wrote to me: “For some reason, our work, programs and commitments are valued at a lower rate. Parents get a financial break — less if they have children enrolled at a licensed in-home daycare than at a group centre. Many licensed in-home daycare givers are ECE trained or have been doing it for many years, like myself, and are considered professionals.”
Her question, which I would put to the minister, is: “Why have you disregarded us?”
Hon. K. Chen: We definitely value the important work of family providers and also in-home, multi-age providers who have that extra, additional ECE credential.
The fee reduction is really based on the actual fees charged. That is the information we get — the market-decided fee charges. I can explain that to the member opposite. The intent of the child care fee reduction initiative is to reduce cost for parents. Based on the information we have, on average, parent fees at licensed group facilities are higher than those at licensed family facilities. As such, the fee reduction amount available for each child care type is scaled to reflect the actual cost of the care to the parent.
I’m really glad that the member mentioned in-home, multi-age providers, because we do recognize that those providers and family providers need support. Also, we need to work with them to continue to enhance and support their services.
For the first time ever, for example, we have opened up the minor capital to allow family providers to apply and maintain and help them to keep their operation and keep their services. We are also looking at increasing operating fund support to in-home, multi-age providers later this year to recognize their credentials and their service.
L. Throness: The government is favouring large daycares over family daycares, and they should be neutral in that regard.
Family providers are often the choice of parents, because they provide a warm environment similar to a family in which some children thrive. They often provide long continuity of care with the same provider for a number of years. A provider told me that she attends graduation and wedding ceremonies of the children that she cared for. They offer places where siblings of different ages can attend together. Parents value this.
Why do parents get penalized and providers not have equal access to all that larger group providers have?
Hon. K. Chen: We definitely recognize the importance of family providers and the services that they are doing.
I’ve personally engaged with many family providers since we became government last year. We’ve been having meetings and hearing their stories. I’ve also met with parents who have shared with me how some of them prefer family providers because they love the small centre. They love the personal connection. We want parents to have choices. Some parents want to choose group centres. Some parents want to choose family providers, or some parents want in-home, multi-age.
We want to make sure that B.C. families, that parents — because we have a very diverse province, a very diverse child care sector — have that choice to be able to choose from the best services that they think will work for their family. Family providers and in-home multi-age providers have been really crucial in serving B.C. families’ child care needs. They’re really the backbone. They’re a very important part of our child care system. I’ve met with many, many passionate family providers and in-home multi-age providers.
Our government is definitely working hard to make sure we have enough support, to work with a diverse sector of providers. I know the member opposite has questions about the fee reduction and the amount. Really, the fee reduction amount is based on what we see, based on the information that providers are providing back to us, and then the amount that we see is fair to reduce parent fees.
We’re really happy to work with providers in the coming months and years to continue to work together to make child care more affordable and also at the same time to work with different providers to look at their needs and how we can support them.
For the budget, currently we have a lot of plans to support family providers. For example, if you look at the fee reduction initiative, family providers, in-home multi-age providers or group centres have the same amount of increased operating funds. The 10 percent operating fund is across the board to all providers when they opt in to our program. They have an even, level playing field.
Again, for the first time, we also opened up the minor capital to allow family providers to apply for funding to help them maintain their services and their spaces. We are increasing the operating fund for in-home multi-age providers to recognize their credentials.
We also have a start-up grant to work with licence-not-required family providers who want to expand their service to help them become licensed providers and expand the number of spaces that they have.
We are also working with local child care resource and referral centres. The member opposite should know that local child care resource and referral centres are very important in our communities, serving local families and connecting with local providers, mostly family providers and in-home multi-age providers, to help them with educational training and support and in providing the resources that those providers need.
We have many other initiatives that are looking at how we can support family in-home multi-age providers, when it comes to education, training and the other needs of their operation. There’s more to come, and I definitely want to take this opportunity to thank all providers, especially the family in-home multi-age providers who have been serving our communities. A lot of them are small operators, and they do very important work to serve our children and families in B.C.
L. Throness: Thanks to the minister for that answer.
I want to pass on a complaint that many providers talk to me about. Perhaps the minister has heard of it as well. If a provider owns a centre and their own child is in that centre, even if they pay for a spot for their own child, they don’t qualify for the fee reduction.
The government is forcing those parents to send their own kids to be cared for by somebody else in another centre, which doesn’t make sense to them or to me. Why discriminate against the providers who themselves have children who care for their children using daycare resources and should be considered eligible for the fee reduction?
Hon. K. Chen: I’m not so sure if the member opposite is actually aware that it has been a long-standing policy when it comes to a provider with his or her own child in the same centre — then the provider is looking after his or her own child — that they have not been covered for the child care operating fund, nor the child care subsidy. That policy has been there since before we became government and has been there for a long time.
However, that being said, since we became government, we are actively listening and working with providers. We’re putting together comprehensive strategies to look at how we deal with this child care crisis that has been there for so long. This would be a good example. We have heard from many licensed family child care providers who realize the forgone revenue when enrolling their own child in one of their available licensed spaces.
We are actively looking at this issue in order to decide if more should be done for providers in this case, because we definitely want to look at different scenarios. As I have mentioned, the child care sector is very diverse. We’re looking at different situations, different scenarios, and how providers operate their centre. This is definitely something that we can look at as we continue to engage, listen to providers and work together and also address along the way.
At the end of the day, we share the same vision: to make child care better, more affordable, more quality and accessible. Our commitment is to continue to work with providers and make the system better. I really appreciate the member raising this question.
L. Throness: Thank you for that answer. I want to move on to talk about the squeeze in personnel, which is a huge issue in the field right now, as the minister well knows.
One provider said to me that the program the government has created is actually backwards. First, the government is funding parents fees, which causes demand for new spaces to explode, and we know that there’s a political rationale for doing that. Then they want and expect providers to open new spaces. After that, they would work on improving the workforce.
Why didn’t the minister not start by paying the workforce better, instead of just studying the matter?
Hon. K. Chen: I would like to thank the member opposite for the very important question about supporting the workforce. I would like to make a correction. Actually, ever since day one, ever since we got the budget, we have been working on initiatives to support the workforce. There are many, many things that we are doing at the same time, and I’m happy to list them out.
As the member already knows, we’ve got the budget. In the budget, there’s $136 million that will be going into supporting the workforce, enhancing quality and supporting early childhood educators when it comes to training, education and fair compensation.
That work started on day one, as soon as we got the budget to look into the labour market. Before, as the member will know, there was very little of a comprehensive plan or strategy when it came to dealing with the child care needs of B.C. families. So of course, we have limited data as well.
That is something that we and staff are working hard on and also working with the sector on. People are working hard every single day to make sure we have more information, to ensure that there’s accountability when we’re doing this very significant investment. So $136 million is there. That’s our top priority — to ensure that we can fund the sector.
Many other things have already been happening. I know that the member has been focusing on some of the issues that have been talked about a bit more publicly, but there are many initiatives happening, including the $16 million that’s going into investment for two years, through our federal early learning and child care agreement, to support the work of recruitment and retention of ECEs and support the ECE bursary.
There’s also money that’s set aside to make sure that we’re working with the Ministry of Advanced Education, which is $7.4 million — that work has already increased — to work with post-secondary public institutions to fund seats for ECE training and programs.
There are also many other things we are doing, including working with the University of Victoria’s community facilitators program to provide support and mentorship for early childhood educators. As the member opposite would know, a lot of early childhood educators work in silos, or they may be small family providers or multi-age providers who are working alone with young children. So we want to make sure there’s enough support in the very diverse sector for different types of providers.
We’re also reviewing and enhancing the role and responsibility and budget for the child care resource referral program. So there are many initiatives that are already started, from day one of our plan, to make sure that when we are addressing affordability and also creating more spaces, we’re also creating that very important work to support the whole system. Some of the work is already happening since the budget came out. The $136 million will definitely be a support to the sector. We are happy to release more details once we have more information.
L. Throness: Thank you for that answer. For $136 million, the government could have given a $2 raise to every ECE worker in the province through their providers. Instead, they’re using it to gather information. They’re also using federal money, $60 million, to gather more information. That’s $200 million to gather information instead of paying one ECE worker a dime more. To us, this makes no sense.
Here’s a quote from an email sent to me by a provider.
“Despite our centre being well regarded in the community and in the ECE field, located in a beautiful new building, offering wages that are higher than average for our area, offering paid sick days and paid vacation, benefits and matching RSP contributions, we are still not able to keep people in the field. In the last two years, I have attracted and subsequently lost six very good staff members, who loved educating young children but left the field for jobs that offered better compensation.”
The crisis is in the field right now. What will the minister do to rectify this problem, not years from now but now?
[N. Simons in the chair.]
Hon. K. Chen: We definitely recognize that it’s very important to support the work of early childhood educators. They’re the backbone of our plan. Ever since we became government, I’ve personally been engaged with hundreds of early childhood educators. Many of the educators have been supporting our government’s plan as well. We definitely need to continue to work with them. It is very important to make sure that we have the ability and the funding available to support the sector.
It seems like the member opposite has a lot of misinformation and misunderstanding of our budget. So to answer the member opposite’s question, let me clarify a few things. When we talked about the $136 million — the provincial funding that’s going into the sector to support education, training and fair compensation — not a penny has been spent on doing the research or the data, because that’s being done internally. The $136 million, the provincial dollars, are focused on investing directly into the sector when it comes to training, education and fair compensation. Please let me clarify that.
In terms of the federal dollars, which the member opposite also seems to have misinformation about, the federal $16 million are going into the ECE bursary. That money is going directly to early childhood educators through a partnership that we have with Early Childhood Educators of B.C., ECEBC.
To address some of the member’s question, I’m sure, the member has during the past few days talked a lot about evidence-based learning, which is exactly what we’re doing. We need to make sure that there’s enough information about the sector. This is the first time ever that the provincial government is putting such a significant investment in funding into the child care sector.
We want to make sure that the funding is going to create the biggest impact, the most important impact. That is why, ever since the budget was confirmed, our ministry staff and many educators and professionals in the sector have been working together every single day. We’re working hard. This is our priority — to make sure that we collect information and enough data to understand what the best way would be to roll out this funding. This is our top priority. We’re working hard on that, and we’re hoping to get the result in the coming months, in order to make sure that the funding will be rolled out.
The $136 million — again, to clarify and to make sure that the member opposite now gets the correct information — will go to supporting the sector when it comes to training, education and fair compensation.
L. Throness: Perhaps the minister could further clarify — appreciate that — who among ECE workers will get a raise out of the budget.
Hon. K. Chen: That is exactly what we’re doing at this moment. The funding will be rolled out based on the information we’re learning.
L. Throness: The minister has simply confirmed that no one will get a raise, at the moment, from the budget. Of course, we wait for more information on that.
Now, I hear anecdotes of wait-lists all over B.C. The government has greatly increased parental demand through the budget. One provider told me that her waiting list of parents tripled after the budget. Of course, there are no new spaces for them.
The minister has access to a lot of information across the province. What is the overall picture of waiting lists in B.C.? Has she any information on that?
Hon. K. Chen: I totally echo the member opposite’s concern about wait-lists. As soon as we became government, I’ve been hearing from parents who have been struggling with long wait-lists and not being able to access child care spaces.
For example, I once heard from a mom from Vancouver that when she was a few months pregnant, she put herself on the wait-list of 12 different centres. She waited for a year. After her child was born, she was still waiting. By the time I met with her, it was almost a year, and she still has not got a call. So it is high pressure.
Parents in B.C. have been struggling to find child care spaces for many, many years, and that’s definitely a concern. That is why our government is committed to making sure we accelerate the creation of child care spaces and to work with communities, municipalities and partners and providers to make sure we are able to accelerate those spaces. And that is why we set aside $236 million to address this accessibility issue.
When it comes to the information on wait-lists, there’s no central data that we have. But we do have utilization rates, which we collect. It’s also in our performance report, which I believe the member opposite would have and which is something that the ministry uses.
The child care utilization rate shows where there is a need for new child care spaces in B.C. The data shows that there is a need for child care spaces across the province, particularly for infant-toddler spaces.
Our goal is to reduce the utilization rate in the community. A lower utilization rate would mean that there are vacant child care spaces available to any family who needs them. A high utilization rate of 80 percent, if it’s about 80 percent or more, means that there is a challenge to find child care spaces.
Rates for infant-toddler spaces have actually steadily risen since 2003 and now stand at about 85 percent of utilization rates, which means it’s very difficult to find infant-toddler spaces throughout B.C. communities.
Child care for children aged three to five is almost as high — at around 75 percent, which is also getting to a really high pressure point, as well.
I hope the information will be helpful to the member.
L. Throness: The ECE registry requires a full ECE certificate for a worker. It won’t accept equivalent or even higher qualifications, like a nursing degree, for example. Allowing people with a degree like that, like a nursing degree, a full licence for a full year, while they gather their ECE credentials, would help to ease the labour shortage.
Would the minister commit to doing that?
Hon. K. Chen: I would like to thank the member opposite for this question. That is exactly one of the many reasons why we are working hard to look into the sector. This is the first time government is putting together a comprehensive plan. We want to know what would be the best way to support the sector, to recruit more quality early childhood educators and, also, to ensure that there are quality services for our young children.
We are working actively with the Ministry of Advanced Education on what would be the creative way, and the best way possible, to support a lot of professionals who would like to join the sector, including early childhood education assistants or responsible adults who are already working in the field in different ways, to make sure that we can find the best way possible to support their learning and their education.
We are really looking for people who have that experience with young children in order to enhance and support the early learning needs of our young children. We definitely are working hard on that. I’m happy to say that there’s a lot of partnership in the sector — along with the Ministry of Advanced Education, the Ministry of Education and also many early childhood educators in B.C. who are working on this together.
L. Throness: Thanks to the minister for that answer.
I’ve heard from many providers and talked to them face to face or on the phone. Providers are burnt out. They are desperate. They are exasperated. They are ready to quit. The minister needs to know that — many of them.
This is another example of an irritation that is common. If a full ECE worker leaves and an assistant temporarily takes that worker’s place, the substitution has to be approved by the ministry, and that temporary, 30-day approval can only be extended with another approval and further delay. All of these approvals are subject to weeks of delays and even further information requests, which result in further delays. What will the minister do to streamline this simple process?
Hon. K. Chen: I thank the member opposite for the question. I’ve actually been personally engaged with hundreds of providers since we became government — in person, on the phone, through correspondence, on social media, Facebook and Twitter — and have heard their stories firsthand. Among our ministry staff…. Thanks to all of our hard-working ministry staff. They’ve also been engaging with thousands of providers through this whole process.
Providers. The member opposite is correct. Providers are a passionate group of people. Many of them are passionate about the work they do. They want to do their best to serve the child care and the families and children that they serve. They have been really struggling for many, many years, since way before we became government. They have been struggling with high costs of child care, high costs of operations, and families have been really struggling with the current system, the child care crisis.
That is the reason why our government is setting aside a significant investment, a significant $1 billion, to make sure that we can create a better system together, working hand in hand with professionals in this sector. I really want to thank all the professionals and providers in this sector for their hard work. We want to continue this work together.
For the question that the member opposite has raised…. Those questions are to deal with licensing, so the questions would be better directed to the Ministry of Health, which will be able to provide more detailed information.
L. Throness: Well, the minister can fob it off on to the Ministry of Health if she wishes, but she needs to take the bull by the horns and contact the Minister of Health and fix that problem on behalf of providers.
I want to make a suggestion for the minister. We have a huge problem with worker shortage, but I have a simple suggestion to reduce that pressure for thousands of ECE workers. Some parents would prefer to stay home with their children but are driven into the workforce because of affordability.
To me, it doesn’t make a lot of sense to pay an ECE worker to take care of a child instead of paying their own mom or dad to do the same thing. If the government were to create a child care option for lower-income parents, as they do in Finland, to support the parent in their preference to care for their child at home, we would relax the pressure for thousands more ECE workers.
Would the government consider this option — that is, liberating parents to choose the kind of child care they prefer?
Hon. K. Chen: I think the important question is that parents should have the choice. Parents should have the different types of choices to choose what types of early learning and child care options that they need and they want. Currently, if you look at B.C. communities, so many parents have been really suffering and struggling with not being able to have that choice, because life has been getting so unaffordable during the past years. Things are getting more expensive, and parents just simply do not have that choice.
Many parents have been sharing with me that they have been really struggling with affordability. That’s why our government is committed to create opportunities, to create more options for families. Affordability is our government’s biggest commitment. That includes affordable child care. My mandate letter has tasked me to make sure that we can create the early learning and child care services opportunities available to all parents who want it or need it.
L. Throness: I would simply point out to the minister that I agree that parents should have choice, but the minister and the government is not providing that choice in the way I’ve just described.
I have a question asked to me by a female provider. In fact, it was brought up by several female providers. Over 90 percent of market-based providers are women. Why is the ministry making it more difficult — through its infamous controlling contract and other policies, such as the bureaucratic hassles that we’ve been talking about — for market-based businesses run by women to be viable?
Hon. K. Chen: Just to be very clear to the member opposite — and I feel like we’ve been repeating some of the answers and questions — this plan, if the member opposite is referring to the fee reduction initiative…. The providers are not getting anything less. The fee reduction initiative only provides more to providers.
When providers opt in to the program, they will get an increase to the operating funds that are given to them for the spaces that are eligible. Even if providers do not want to opt in to this program — it’s a choice; it’s the provider’s decision — they will continue to receive the current funding that they’re receiving, the operating funds that they’re receiving. So no one, no provider, is getting less. The fee reduction initiative is only providing more to providers.
Again, our comprehensive strategy…. When it comes to dealing with affordability, accessibility and quality, there are many layers and many more supports that we are giving to providers. The member is correct that the majority of providers are women. There are many supports we’re giving them, especially focusing on smaller providers such as in-home multi-age providers. We are looking at increasing the support to their child care operating funds to support their operation later this year. That amount will be increased.
We have, for the first time, expended minor capital for family providers — again, mostly women — in the workforce, to apply to support their operation, to enhance their service to young children.
We’re working with local child care resource referral centres to make sure that they have the resources and the services that they need in order to support many small providers in their communities. Many of them, again, are definitely women.
There’s the $136 million that I mentioned earlier on about supporting the workforce when it comes to training, education and fair compensation.
There’s a start-up grant that we are giving to licence-not-required providers to, if they wish, expand their service and create more spaces. There’s a start-up grant to support many small business people to enhance and expand their service.
There are new applications coming in to our child care operating fund program to receive more government operating funds and also to opt in to our fee reduction initiative.
If you really look at a lot of the strategies and the plan that we’re doing, this plan really is supporting parents, especially a lot of mothers, who are struggling with tough decisions on whether to return to work, to continue their education or to look after their young children. It also supports providers, and many of them are definitely women. We are providing more choices. It’s a plan that’s giving more choices to families and professionals in the sector.
L. Throness: Thanks to the minister. The minister is setting up providers for failure by funding all operating funds in its fancy model prototype centres and government-funded child care centres, which will poach ECEs from market-based providers because they’re able to pay union wages. I’ve already heard this complaint. It’s already happening.
This will actually restrict parental choice, because the only ones left standing will be the government-funded ones. What is the minister going to do about the imbalance in compensation between centres, as caused by the government?
Hon. K. Chen: I think I have emphasized many, many times that our government is committed to work with the very diverse sector of providers, because families want different choices.
Through our engagement process, starting summer last year, we’ve met with providers, families, professionals, early childhood educators and academics — many, many people in this sector — to know how important and how we need to celebrate this diversity in our province.
Our families want different types of services. So our investment is definitely going into a diverse sector of providers, and there’s flexibility. There’s diversity in our investment.
If the member opposite is referring to the prototype centres — and I’ve mentioned that — the funding is going into existing providers and supporting the existing child care workers. It’s only a very small part of our $1 billion investment. Our $1 billion investment in the coming three years covers a lot of many other areas. Again, the investment will go to support this very diverse sector.
That is why, when we talked about compensation, we’re working on this labour market strategy. There’s also the labour market partnership strategy that we are working on with ECEBC to ensure that we’re doing our best with evidence-based information to fund the sector when it comes to educators’ needs for education, training and fair compensation.
L. Throness: Just to clarify from the minister. So the prototype centres won’t create any new spaces? They will only deal with current spaces?
Hon. K. Chen: For the prototype site, we are working with existing facilities. So it’s mostly current spaces. If there are opportunities within that existing facility, then there could be new spaces.
L. Throness: I want to move on to talk about the new spaces that the government promised. The government promised 22,000 new spaces. How did the government decide on this number? Was there an independent analysis that suggested this number, or did they just crib it, as they lifted the rest of their program, from the Coalition of Childcare Advocates of B.C.?
Hon. K. Chen: It’s really based on the needs of our community. We know that B.C. families have been struggling to find child care spaces that work for them. We definitely need to accelerate the creation of child care spaces, and 22,000 may not be enough to address the total needs of families’ child care needs. But that is the number that we believe we can fund and can accelerate their creation.
It is an ambitious target. If you look at the previous government’s record, in three years, only about 4,000 were funded. So we need to work hard with community partners and groups and municipalities to continue to work together to accelerate the creation of child care spaces.
L. Throness: Continuing on with that, the minister mentioned the other day that 90 new CCOF applications have been received since the budget. How many of those 90 applicants were providers before, providing spaces, perhaps no-licence-required spaces before they applied for CCOF?
Hon. K. Chen: The providers have to be licensed providers in order to apply for the child care fee reduction initiative.
L. Throness: Okay. Let me try and clarify further. I’ll just probe a little further. When the government says it plans to create 22,000 new spaces, will the ministry include as new spaces those that were no-licence-required before, as well as unlicensed, unlawful providers who decide to license their day care for the first time?
Many of these should not be included as new spaces. That’s what I’m getting at. They will simply be converted from unlicensed to licensed spaces.
Hon. K. Chen: The 22,000 are new licensed child care spaces. There may be a very small portion of the license-not-required providers who are becoming licensed spaces so they can increase the number of spaces. There are still going to be new spaces. But I would say pretty much all the 22,000 new licensed spaces will be licensed new spaces.
L. Throness: If the minister could clarify, then. The minister is defining a new child care space as a space where there was no care provided before. Is that correct?
Hon. K. Chen: Again, there will be new licensed child care spaces. A very small portion of it will be a conversion, also providers adding new spaces, but the vast majority would be new licensed child care spaces.
L. Throness: Let me ask this, then. Will government officials ask the question of each new applicant: “Were you previously providing an unlicensed space that will now be licensed, whether an unlawful space or a no-license-required space?” And will it make that information public so that everyone can see how many incremental new spaces are actually being created where there were not spaces before?
Hon. K. Chen: We will be doing regular reporting on new space creation, for sure.
L. Throness: With its big goal of creating 22,000 spaces, does the government have a target for the number of non-profit versus market spaces to be created?
Hon. K. Chen: No. It’s really based on providers’ applications.
L. Throness: I hear anecdotes that there are unfilled spaces throughout the Lower Mainland already because of a lack of qualified early childhood educators. Can the minister tell us to what extent this is true? Has the ministry attempted to quantify this?
Hon. K. Chen: Thanks to the member opposite for the question. That is exactly why we’re looking into the labour market strategy, to have a better understanding. Before, no government had ever done this comprehensive plan and looked into the sector and invested into the sector.
Our government is very committed to making sure we have more information from the sector — to look at, for example, how many early childhood educators we need or how many spaces we need to fill. And we’re not only looking at today’s needs. We’re also looking at future needs, as communities continue to grow and there are diverse needs from our community.
L. Throness: Part of creating spaces is help to do that. Let me read from the ministry’s own documents. Current no-licence-required providers “looking to become licensed will be able to apply for start-up grants” to cover costs associated with meeting licensing requirements. Could the minister give us a dollar range for these grants? How much will they be? What kind of grants will she offer?
Hon. K. Chen: For the specific start-up grant, more details will be released in May.
L. Throness: Will a no-licence-required provider be required to have an ECE designation before being licensed?
Hon. K. Chen: The providers will have to meet the basic licensing requirements of the Ministry of Health. Currently being an ECE is not a requirement to become a family provider.
L. Throness: I want to pick up a few miscellaneous questions that I’ve skipped over before. One is about the overpayment. In section 4.5 of the contract, the penalty for an overpayment is double the amount overpaid, and no provider is able to negotiate this amount out of their contract. It’s the government’s way or the highway.
Previous to this year, providers had full freedom to adjust their rates to keep solvent. Now the government is taking that control out of providers’ hands through a coercive funding model and topping it off with big fines. Why the punitive penalties to providers?
Hon. K. Chen: The cost that the member opposite is referring to when it comes to the fee reduction initiative that providers are choosing to join is an accountability measure. I would assume that providers, when they choose to join the fee reduction initiative, also want to work with our government to pass on savings to parents.
If a provider, for example, gets $350 for an infant-toddler space for fee reduction and ends up not passing that saving on, of course that would be an accountability concern. That is why the cost. Because it is a contract between our government and providers, we want to make sure there’s an accountability mechanism.
L. Throness: Certainly, a provider can choose to opt in or not. They can also choose to go bankrupt. So it’s really not a free choice for the provider, and the government needs to know that.
In limiting fee increases to the bone, the government has assured that no capital will be able to be saved or accumulated by market-based providers. Therefore, they’ll be unable to create new spaces without government help.
Why would the government make providers dependent upon government, instead of allowing them to do what they do best, which is to save and accumulate and fund new centres themselves?
Hon. K. Chen: I don’t understand why…. Unfortunately, the member opposite seems to have a lot of misinformation about our program. With all the funding that we’re rolling out, this is the biggest investment in B.C. for the child care sector.
With the fee reduction initiative and with our other programs, no provider or professional in the sector is getting less. The funding that we’re investing into the sector is to ensure that parents can benefit from affordable, quality, accessible child care, and providers are also getting more. That is why, when they choose to join, for example, the fee reduction initiative, they will be getting an increase to their operating funds. That is the funding that we’re also looking at to continue to increase in year 2 and year 3.
Again, let me please be clear that no provider is getting less. Providers and parents are getting more from our investment, and we definitely want to make sure we’re working together with providers to create a better system with professionals in the sector, because we do have a comprehensive plan.
I think — I hope — the member opposite would agree with me, and I believe the member opposite would understand. We definitely want families to have more options, more choices. Our comprehensive program is focused on making child care better for B.C. families and also families’ early learning needs.
Investing in child care is a really good thing for our young children, especially when our young children…. In their first few years, their brain development is developing the fastest. Members opposite have young children in their family. They’ll know how fast a young child can learn and grow, so we are investing a lot of money into early learning and child care. We are investing into families. Parents can finally have more choices when it comes to having more access to affordable, quality child care spaces.
We’re also working with providers. We’re working hand in hand with professionals in the sector. There is a good majority of providers who are joining our program, and there are more programs to come.
At the end of the day, the whole child care plan is also very good for our business community. A lot of business partners have shared with us how it will help them with their recruitment and retention efforts to keep workers in our communities.
Again, to answer the member opposite’s question, no one is getting less. The investment is to make sure that more families and more professionals in the sector will benefit.
L. Throness: Well, the minister mentioned CCOF. I just want to clarify something with the minister, because a number of providers have complained to me about this.
The ministry has asked child care centres to do the paperwork on the fee reduction and has offered a 10 percent increase in the CCOF amount in order to cover for that. I want to point out this is not an incremental increase in CCOF. It is meant to cover the increased administrative burden that the government’s plan places on providers.
Will the minister confirm that this is just meant to cover increased administration costs due to the fee reduction program and is not an incremental increase in CCOF funding?
Hon. K. Chen: For the member opposite’s information, actually, the 10 percent increase is the first time in ten years, since before we became government…. That child care operating fund, under the member opposite’s previous government, has not increased for ten years. So this is the first increase in ten years.
As we’ve discussed earlier, the child care sector is very diverse, so it really depends on the type of provider. I have personally visited smaller providers and also large centres. So that 10 percent may mean a different amount for different providers.
Smaller providers may get a smaller amount, and large centres or larger providers will get a larger amount. Some providers will use it to cover for their administrative costs, or some providers will use it to cover their operational cost. It really depends on the type of providers and the amounts that they are receiving.
As I’ve earlier on — yesterday, actually — also mentioned, we are looking at increasing this amount of operating fund. We understand that providers need support, and we definitely want to continue to work with providers to support their operation. So this year is 10 percent, and next year will be a 15 percent increase, and then the year after will be a 20 percent increase, because we do want to continue to work with providers.
L. Throness: Well, I’m surprised that the minister wouldn’t admit that it’s simply to cover administration costs, because it says that in the budget.
In any case, I want to move on to the affordable child care benefit for a moment. The government promises that families making up to $111,000 will be eligible for the affordable child care benefit.
We examined the taper rates in the budget. The taper rate is an amount that the benefit will be reduced by for each new dollar in income. They’re 35 cents to 27 cents, depending on the category of income.
We used the most expensive infant care. For the category above $45,000, the $1,250 monthly benefit tapers to nothing just under $50,000, at $49,630. For those with incomes over $80,000, the $910 maximum monthly benefit tapers to zero at $82,600 in income. It appears, contrary to government promises, that anyone making between $50,000 and $60,000 and anyone making over $83,000 will get no affordable child care benefit at all.
Could the government explain this? I could have made a mistake in my spreadsheet. It seemed pretty clear to me, and I’d like the minister to correct me.
[S. Chandra Herbert in the chair.]
Hon. K. Chen: The member opposite’s assumption is incorrect. Families having the income of up to $111,000 will be receiving some benefits from the new child care benefit. The benefit amount changes, depending on the income and the type of child care. But again, families who have up to an income of $111,000 will all receive some benefit.
We are happy to share our chart and our information with the member opposite, if the member wants.
L. Throness: I would simply ask if the minister could furnish to me a spreadsheet showing each dollar of income, showing the amount that a parent would receive. Would she commit to furnishing me with a spreadsheet that proves that up to $111,000, families will receive something?
Hon. K. Chen: We are happy to share the information.
L. Throness: Thank you. I look forward to that.
Another question. Under the government’s plan, a parent making $40,000 a year with an infant in child care could receive $350 in fee reductions monthly, as well as $1,250 in the affordable child care benefit, for a total of $1,600 per month.
Is it possible that a parent could make more than their child care costs through the combination of these two programs? Will the government assure taxpayers that this won’t happen? How will the government assure that?
Hon. K. Chen: Just to clarify for the member, the parent will apply for the new child care benefit that’s going to be rolled out later this year, and the money will flow through the providers. The government is paying for up to the amount of the care that’s required, so there’s no overpayment.
L. Throness: Will the minister or the government be providing providers with extra funding under CCOF, given that they also have to do the paperwork on the affordable child care benefit as well as the fee reduction?
Hon. K. Chen: The new child care benefit that’s going to be rolled out later this year…. The whole process for parents to apply and also for providers to pass on the savings to parents is going to be simplified. It will be easy for parents to apply and providers to work on the fees. If you look at the previous child care subsidy program, the new process for the new child care benefit is going to be way easier than the child care subsidy program that was done through the previous government for many years.
Of course, as we have discussed earlier, the child care operating fund will continue to increase in year 2 and year 3 of our plan.
L. Throness: Will all parents currently on the child care subsidy program be better off under the affordable child care benefit beginning in September?
Hon. K. Chen: I thank the member opposite for asking this very important question about our new affordable child care benefit. It is a new income-tested child care benefit with extended eligibility and a higher benefit rate than the existing child care subsidy. So yes, it will benefit way more families. The new program will be fully phased in, in the next three years, with payments starting later this year.
Families earning up to the income of $45,000 will be eligible for the full amount, as we’ve previously mentioned. Families earning between $45,000 and $111,000 will be benefiting from a partial benefit. By 2020-21, we are expecting that the new child care benefit will support up to 86,000 families every year with their costs of child care, including an estimated 65,000 families using licensed care and approximately 21,000 families using other care. It’s a significant increase over the next few years from the current existing child care subsidy, which benefits about 26,000 families per year.
L. Throness: I want to pick up on a question that I was still wondering about from last week. I’m still wondering about the assumptions that the government used in its cost estimate of $1.5 billion, annually, for a complete system.
Did the minister’s ministry do an independent costing on this item that would consume 2 percent of the budget? Or did it rely on the 2015 study by the Canadian Centre for Policy Alternatives? A simple question.
Hon. K. Chen: I believe the member opposite already knows that we have budgeted $1 billion for the next three years to create this starting work and the foundation of a better child care system here in B.C.
For the future plan, it really depends on government budgeting, and it also depends on collecting more information in the coming three years, including engaging with providers, professionals and early childhood educators in the sector and also looking into different evidence-based studies and information that’s available in order to build the four- to seven-year plan or a long-term plan and to go through that budgeting process again.
Of course, if you look at the first three years, it’s confirmed. It’s a $1 billion budget to start this work and to build a system that will work for B.C. families. B.C. is a very diverse province, and families have different needs. We need to make sure that our plan will work for local B.C. families.
Noting the hour, I move the committee rise, report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:15 p.m.
Copyright © 2018: British Columbia Hansard Services, Victoria, British Columbia, Canada