Third Session, 41st Parliament (2018)
OFFICIAL REPORT
OF DEBATES
(HANSARD)
Monday, May 14, 2018
Afternoon Sitting
Issue No. 136
ISSN 1499-2175
The HTML transcript is provided for informational purposes only.
The PDF transcript remains the official digital version.
CONTENTS
Routine Business | |
Orders of the Day | |
Proceedings in the Douglas Fir Room | |
Proceedings in the Birch Room | |
MONDAY, MAY 14, 2018
The House met at 1:35 p.m.
[Mr. Speaker in the chair.]
Routine Business
Introductions by Members
Hon. A. Dix: Today we had the opportunity, government members — I believe opposition members will have this tomorrow — to take part in a luncheon hosted by the B.C. Cancer Foundation. I wanted to introduce some of the people who participated in that today: Sarah Roth, the president and CEO of the B.C. Cancer Foundation, who’s a constituent of my colleague the member for Vancouver–Point Grey, and Andrew Sweeney, the board chair of the B.C. Cancer Foundation, who’s a constituent of my colleague from Vancouver–West End.
I wanted to introduce a constituent of my colleague from Vancouver-Hastings, Michael Izen, who spoke about his journey with cancer in, I think, a remarkable and courageous way. I hope members of the opposition will get an opportunity to hear this tomorrow. Michael is a longtime friend of myself and my wife, Renée Sarojini Saklikar. We were very moved to hear from him today.
I want to wish all three, and all the people from B.C. Cancer and the B.C. Cancer Foundation, which raises so much money at the foundation but does such extraordinary work in B.C…. I want to make them welcome here in the Legislature today.
J. Yap: I have two introductions to make. First of all, returning to observe proceedings and joining us on the floor is our good friend and the former MLA for Delta North, Scott Hamilton. Would the House please give Scott a great welcome.
My second introduction is of a constituent and someone who’s an important part of my operation in Richmond-Steveston — a member of my constituency office staff, a constituency assistant. Would the House please welcome in the gallery today Trevor Merrell.
C. Oakes: Well, first I would like to acknowledge and say happy Mother’s Day to all the mothers, both in the gallery and watching at home. I hope you all had a lovely, well-deserved Sunday.
I’m very pleased to have in the House today my family, the Hartley clan. I have my mom and dad, Jim and Nancy Oakes, from Moose Heights — that’s for my grandma — which is near Quesnel. Joining my parents are my mom’s sisters. We have Darlene Rhode from Duncan, Linda Hartley from Duncan, as well, and Bridget Croy, who’s from Fairview, Alberta.
Lots of political dialogue right now. We’re having a wonderful time. Would the House please help make the Hartley clan welcome.
J. Rice: I never fully understood why or how authors could give thanks to their partners, their children, their families, etc., in the openings of their books until I met my wife, Andrea. I couldn’t do the fulfilling work that I do without the love and support of her. She’s in the House today. Would the House please make her feel welcome.
M. Bernier: It’s a privilege today to introduce a constituent of mine, who’s trekked all the way down from northeast British Columbia — Reg Whiten. He’s a consulting resource stewardship agrologist planner and educator from Moberly Lake. A lot of people in this House know where that is.
Over the years, Reg has served in various voluntary advisory roles with the province. So 35 years in the Peace. He’s also worked with Treaty 8 as a land adviser, executive director of the former Peace River Watershed Council and is also a watershed steward for the city of Dawson Creek, during my time there as mayor.
It’s a privilege. Please make Reg welcome down here to Victoria.
Hon. R. Fleming: There are a couple of people I’d like to introduce in the gallery today. One is just following up on the Minister of Health’s introduction — Michael Izen, who’s in the gallery with us today.
I’m wearing the button from his campaign, a very courageous campaign, working with the B.C. Cancer Foundation, and on his own initiative, to educate men all over British Columbia and Canada about the dangers of prostate cancer and also some of the things that men can do to raise awareness and take care of themselves and work with the medical profession. Michael has been tireless in that regard. He has been a tireless fundraiser for the foundation, to help make medical research breakthroughs possible. I’d ask the House to make him welcome again. It’s great to see him.
The person next to him who is smiling, always smiling, is Jordan Watters, who is a school district trustee from district 61. She’s a passionate advocate for public education. She founded a Facebook organization called Support for B.C. Students, which has 19,000 subscribers; works tirelessly in our district here in greater Victoria; and has been an outstanding advocate for kids and high-quality public education. I’d ask the House to make Jordan most welcome as well.
Hon. C. James: I noticed up in the gallery a former Victoria resident, a longtime friend and very strong advocate for people with disabilities and people with mental health issues. Would the House please welcome Richard Fahl.
L. Krog: I’m delighted today to ask the House to make welcome two groups of grade 5 students from my constituency. The first is from Forest Park Elementary, accompanied by their teacher Joseph Smith — 25 grade 5 students and several adults. The second group is from Frank J. Ney Elementary, Mr. Lorne Ratzlaff — again, accompanied by four adults. I’d ask the House, for the record, to make them welcome. Nanaimo is always curious about good public policy, and they love coming to this place.
Introduction and
First Reading of Bills
BILL M216 — BUSINESS CORPORATIONS
AMENDMENT ACT,
2018
A. Weaver presented a bill intituled Business Corporations Amendment Act, 2018.
A. Weaver: I move that a bill intituled the Business Corporations Amendment Act, 2018, of which notice has been given, be introduced and read a first time now.
This bill amends the Business Corporations Act by adding a new part 2.3 to the act that would give companies the ability to incorporate as benefit companies. Doing so would provide these companies with the legal framework to operate in an environmentally sustainable and socially responsible way and to pursue public benefits in addition to pursuing profits.
Benefit corporations differ from community contribution companies — known as C3 companies — which are hybrid businesses subject to an asset lock. Benefit companies would be required to meet standards of transparency and accountability by reporting their work against an independent, third-party standard. By incorporating as benefit companies, businesses would achieve clarity and certainty for their directors and investors about their goals and mandate, thus enabling them to attract capital investment while staying true to their mission as they grow.
Companies that pursue a triple bottom line are on the cutting edge of rethinking the role of business in the 21st century and helping us tackle our most pressing social and environmental issues. Government needs to support and encourage business to take on this role, and this bill is one way to do just this.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
A. Weaver: I move that the bill be placed on the orders of the day for second reading at the next sitting of the House after today.
Bill M216, Business Corporations Amendment Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
BILL M217 — STRATA PRE-SALE
CONTRACT FLIPPING TAX ACT,
2018
A. Wilkinson presented a bill intituled Strata Pre-Sale Contract Flipping Tax Act, 2018.
A. Wilkinson: I move that a bill intituled Strata Pre-Sale Contract Flipping Tax Act, 2018, of which notice has been given in my name on the order paper, be introduced and now read for the first time.
The purpose of this bill is to address home flipping — that is, the flipping of presale contracts — and to target actual speculators, those who are artificially inflating prices in the housing market by flipping presale paper contracts. If passed, the bill will apply to both domestic and foreign buyers, placing a provincial capital gains tax on the proceeds of presale contract flipping.
The act is meant to be clear, tailored, measured and precise so that it will accomplish the goal of improving affordability. Only those who purchase a presale home or condo and sell it before completion will be taxed by this bill. Of course, the goal is to address the housing crisis that we now face.
This bill takes real action to address affordability and is designed to entirely replace the speculation tax, which is currently before the House, which has absolutely nothing to address or control speculation.
Mr. Speaker: The question is first reading of the bill.
Motion approved.
A. Wilkinson: I move that the bill be placed on the orders of the day for second reading at the next sitting of the House after today, when the government sees it fit to proceed.
Bill M217, Strata Pre-Sale Contract Flipping Tax Act, 2018, introduced, read a first time and ordered to be placed on orders of the day for second reading at the next sitting of the House after today.
Statements
(Standing Order 25B)
FARMERS MARKETS
B. D’Eith: Spring is in the air. The sun is out. And, yes, I’ve even seen some of the members of the opposition smiling. It’s been amazing. There’s one right there. You see, it’s contagious. It’s awesome.
Spring is also the time that farmers markets open up all over British Columbia. I was very, very pleased recently to participate in the opening of the Mission City Farmers Market and, along with the Minister of Tourism, Arts and Culture, the opening of the Haney Farmers Market.
I wanted to thank Shelby and Allen in Mission and Eileen, Paul and Alex in Maple Ridge for being such amazing hosts. The Mission City Farmers Market has actually been around for 22 years, and the Haney Farmers Market is entering its 14th season. They count on volunteers’ work year-round to make sure that these amazing community programs stay open during the harvest season.
These markets are actually a pivotal part of our community. They allow us to eat local food; to strengthen the local economy and put money back into our community; to meet the farmers who grow our food; to discover new products that we might have never tried before; to keep agricultural jobs active in our community; and, of course, to support the family farms and food security in British Columbia.
Both of our markets in my riding participate in the farmers market nutritional food coupon program. The coupon program is supported by the province of British Columbia and the Provincial Health Services Authority, along with community sponsors for local farmers markets. The community partners organizations provide coupons to lower-income families and seniors. These coupons can be spent to purchase fresh vegetables, fruit, nuts, eggs, dairy, cut herbs, meat and cheese.
I’m so proud that our government recently increased the B.C. farmers market nutrition coupon program so that lower-income residents across this province can find healthy, locally grown food and have those types of opportunities.
Let’s all tip our hats to the organizers and volunteers for all of our farmers markets around B.C. who support our agricultural sector and help to ensure that we will grow B.C., feed B.C. and buy B.C.
WHISTLER MEDICAL MARIJUANA CORP.
J. Sturdy: Since its earliest days, West Vancouver–Sea to Sky has always attracted trailblazers, adventurers, entrepreneurs with big visions. From forestry and transports to tourism and technology, businesses with leading-edge approaches and a commitment to bring their ideas to fruition have demonstrated a reputation for best in class.
Take this enterprising environment and introduce progressive legislative amendments, and you have a formula for a first-of-its-kind business model. The Whistler Medical Marijuana Corp. was amongst the first to qualify as a Health Canada licensed producer, and the company remains the first and only in the country to offer a certified organic product as certified by the Fraser Valley Organic Producers Association.
As an organic farmer, I know firsthand the commitment that goes into producing certified organic production. At Whistler Medical Marijuana, the process replicates outdoor growing techniques, with everything that goes into the plants’ production coming from natural sources. From planting to packaging, each rotation takes approximately five months to move through the production process.
While Whistler Medical Marijuana’s Whistler facility is size constrained and limited in its production potential, an expansion into Pemberton is allowing for an exponential increase in production and a corresponding increase in well-paid, full-time, year-round jobs. Whistler Medical Marijuana is investing tens of millions of dollars in a new, purpose-built, 65,000-square-foot, high-tech facility in the Pemberton Industrial Park, which is scheduled to open this summer. It includes a full research laboratory dedicated to quality control, genetics and product development. There are plans for a second phase of the Pemberton expansion, which would increase this production facility by a further 80,000 square feet.
By leveraging its Pemberton expansion, Whistler Medical Marijuana will target beyond Canada to emerging international medical cannabis markets. This is a made-in-B.C. enterprise, one that is homegrown yet ready for export.
SEX INDUSTRY CONFERENCE IN VICTORIA
M. Dean: It’s my pleasure to rise today to highlight an exciting conference taking place today and tomorrow here in Victoria to raise awareness and improve practice for people working in the sex industry. It’s organized by PEERS, which is an innovative multiservice, grassroots agency that was established by, with and for sex workers.
In partnership, PEERS provides an array of outreach and drop-in harm reduction and support services, alongside education and employment training for current and former sex workers, including this conference.
Co-hosted by Living in Community, day 1 is aimed at community knowledge-sharing, improving collaboration and networking to support the health and safety of people in sex work or trade. It’ll be attended by a diverse group of people representing the sex trade, social and health services, police, government and organizations from around B.C. and Alberta that provide services to people in the sex industry.
I’m honoured to be able to join the conference on the second day, which is for a small group of representatives from sex industry organizations, police liaisons, health and social services targeting sexualized violence. The focus will be on knowledge-sharing and development with regard to bad date and aggressor reporting in the sex industry. I expect we’ll all learn a lot, and I really look forward to hearing about how these great services will continue to improve.
I want to take this moment to thank the organizers and the volunteers who have worked so hard to make this conference come together.
JO-ANN WOOD
R. Sultan: If you want to get anything done in West Vancouver, where to cut down a tree requires an act of parliament, call on Jo-Ann Wood.
Jo-Ann started her career as a UBC School of Nursing faculty member. Moving to West Vancouver, she became a prime mover in a series of organizations, including the West Vancouver Community Foundation, modelled after the Vancouver Foundation, funding a long list of community organizations and important environmental causes; the Lions Gate Hospital Foundation, which has raised almost $100 million to help finance a new and much-needed acute care tower; the West Vancouver municipal library, boasting the highest per-capita readership in Canada and sponsoring everything from the annual November 11 ceremonies, to Adopt-A-Fish, where youngsters put young coho salmon back into McDonald Creek; our hospice and palliative care project on Lions Gate Hospital campus, so helpful at end of life; the West Vancouver Place for Sport, a rebuild of the outdoor track and field at West Vancouver High.
Jo-Ann doesn’t seek recognition, but in recognition of her volunteer accomplishments, she received the 2017 West Vancouver Community Award. It was well deserved.
Thank you, Jo-Ann.
ACTIVE TRANSPORTATION
B. Ma: Commuting by walking, cycling, rollerblading, skateboarding, propelling forward in a manual wheelchair, even skating or skiing if you live out east — active transportation takes on many forms. Most of us are capable of using active transportation to get from A to B, to varying extents.
In doing so, we engage in an activity that offers many personal benefits. Increased physical activity, of course, reduces the risks of heart disease, obesity, high blood pressure and more, which is beneficial for relieving pressure on our health care system. It saves us money. We all know how expensive car insurance and gas can be these days. We also get to avoid congestion that we would otherwise be subjected to if we were riding in our cars.
Our communities also benefit. There are safety benefits. Walking and cycling more means that there is increased contact between neighbours, which means communities know and look out for each other. Fewer cars contribute to calmer and safer neighbourhood streets. When we have more people choosing to engage in active transportation instead of getting into their vehicles, we also cut down on greenhouse gas emissions, air pollutants.
We reduce the need for vehicle-centric development, which is very land-intensive. Sidewalks and bike lanes take up far less space per travelling capita than building new vehicle lanes, parking spaces and interchanges. All of this saves us land we could be using for more green space, housing or other more productive community amenities. And, of course, it eases congestion for those who need to use their cars for a variety of very valid reasons.
With all of these benefits, it’s no wonder that so many municipalities and transportation agencies, like TransLink, are investing in increased active transportation infrastructure like bike lanes and sidewalks. Despite the local controversy a new bike lane can sometimes cause when being proposed, the reality is that safe cycling and walking infrastructure is enormously important to building strong, effective communities.
VOLUNTEER FIREFIGHTER
TRAINING IN
OLIVER
L. Larson: Every two years the Oliver fire department hosts the B.C. firefighters spring training at the Oliver Community Centre. This year over 300 firefighters, men and women, took part in the training. They came from 70 volunteer departments in B.C., three from Alberta and one from Washington state.
There were more than two dozen training stations set up around the park, and every firefighter took part in at least ten of the skills provided. Each of the members of the Oliver fire department were responsible for setting up and assisting with the training at most of the stations. The visiting firefighters are put into small teams with other firefighters from around the province so that the maximum amount of knowledge can be acquired by each department and returned to their communities.
There are several corporate sponsors, the largest of which was FortisBC, which provided timely training in dealing with an LNG spill or fire. This year the RCMP bomb squad from Kelowna participated, demonstrating the latest equipment for the safe disposal of explosive devices, an unfortunate necessity of our modern world. The swift-water rescue training was also timely due to the floods and extremely high and fast-moving waters in our streams and rivers.
This two-day training requires a tremendous amount of volunteers, many of whom are the Oliver firefighters themselves and their families and friends. A huge thank-you to Chief Bob Graham and the Oliver fire department for the tremendous job they do helping to train volunteer firefighters from all over B.C. and for the work they do every day as first responders, keeping the people of my community safe. A special thank-you to all the volunteer fire departments in the Boundary-Similkameen who are supporting their communities during our current flood events.
Hon. J. Horgan: I rise to make a ministerial statement.
Mr. Speaker: Proceed.
Ministerial Statements
RESPONSE TO FLOODING IN
BOUNDARY-SIMILKAMEEN
AREA
Hon. J. Horgan: All members of the chamber will be well aware of people right across British Columbia grappling with the threat of rising floodwaters. Heavy rain, warmth, unseasonably warm weather and a snowpack that has been unprecedented mean serious flooding challenges right across British Columbia.
Nowhere is that more acute than in the constituency of Boundary-Similkameen, where the member, I know, is working very, very hard to ensure that everything that can be done is done to protect the homes and the livelihoods of the people in her community, in Grand Forks and the entire region.
Thousands of families have been affected. Thousands more are waiting for the worst. And there is also a threat, Members, of increasing floodwaters as a result of what will be a continued period of extremely hot weather to couple with the snowpack that I spoke of.
I have been in touch with the chair of the regional district. I’ve been in touch mayor of Grand Forks. The Minister of Public Safety was in the region over the weekend, and as I said, the member from Boundary is doing everything that she can. I believe we’re doing all we can as a government and as a Legislature to speak up and to ensure that those that are in distress right now know that we have their backs.
That’s why today we announce a recovery assistance plan for the people of Grand Forks that will allow those who do not have insurance coverage on their homes, whether they be residents, small businesses, farmers, local governments or First Nations communities, to be able to access assistance from the province of British Columbia in the days and weeks ahead.
I spoke with the Prime Minister on Sunday, and he assured me that the federal government stands ready to work with communities, to work with the province and to work with all British Columbians to ensure we get through this unprecedented flooding season. The Minister of Public Safety will be in touch with his opposite number in Ottawa to make sure that there’s a seamless transition should there be a need to bring in more federal resources.
I wanted to take this opportunity, Hon. Speaker and all members of the House, to share with you a story I had with the mayor of Grand Forks. As we all know, when you’re in a difficult, difficult situation, where people are seeing their livelihoods virtually disappear before their eyes, and they’re hopeless to manage the force of nature, it’s that time when resilience shows through and our better angels appear. The mayor and the community — I know the member will agree with this — have rallied together in an unprecedented way. Just as we saw in the fire season last summer, we’re seeing again at the early part of what will be, perhaps, the worst flooding we’ve seen since 1948.
I want to advise all members that those on this side of the House and every member can rest assured that the government of British Columbia will have your backs. The people of British Columbia know that we’re working hard, all of us, in this place to make sure that they are safe. Although nature is treating us poorly today, we want to make sure that government is there for us in the days after, and I want to assure our members that that’s the case.
A. Wilkinson: I thank the Premier for his words about this important topic, which in British Columbia we hope does not lead to an unprecedented season of flooding, but the possibility does exist.
I was privileged and glad on Friday to visit the Okanagan-Similkameen area. I visited the communities of Willowbrook, where 200 people are subject to flooding in their homes and are being, essentially, driven off the land; and Okanagan Falls, where there have been entire street diversions; and in Oliver, where the threat is imminent and real.
I saw for myself the Sportsmen’s Bowl Road, which used to be a road but is now a river — the river having jumped its banks and moved onto the road. This is something that comes as a bit of an eye-opener, because it’s literally ten metres away from Highway 97 before it flows under Highway 97, which, as an arterial road, remains open. I also saw where Shuttleworth Creek jumped its banks and threatened to wipe out an entire subdivision but was, fortunately, diverted into an agricultural area. The crews involved managed to divert it back into the creek bed, but the threat remains very real.
People in the region are pulling together, taking the initiative, doing things like taking out culverts that are too small and letting the rivers run through the road and using alternative routes to get to their homes. It’s a very real thing for people in the communities, and it keeps them awake every night, because they don’t know what’s going to happen to their homes.
The regional district of Okanagan-Similkameen has done a very good job operating the emergency centre that they provide for all of the necessary services and the evacuation machinery that goes into these kinds of crises. Of course, they’re doing a very effective job of managing that, working with the Ministry of Solicitor General.
There was a minor mixup over the weekend in terms of the Solicitor General’s visit to the region. He and I have conferred, and it’s been agreed that the MLA for the region involved, no matter where it is in British Columbia, will be in close contact with emergency management B.C. and the minister so that there are no surprises and a concerted effort by all in this House to make sure that the people of British Columbia are served. Their primary interest is to take care of their own needs and for us to be there as legislators to make sure those needs are being addressed.
I want to thank all the volunteers, thank the first responders, congratulate the community for rising to the occasion and commend the Solicitor General for taking on this task and promising to keep us all in touch as we move toward a happier ending than we foresee at the moment.
A. Weaver: Like every member in this House, I’ve been following the flood crisis closely and with a heavy heart. I commend the Premier for offering disaster recovery assistance today. Every support possible must be extended to the communities threatened by rising rivers. It’s heartbreaking to see homes submerged and businesses lost. I hope the worst is behind us. Sadly and unfortunately, the forecast for the coming days is not looking so positive.
I’d like to also extend my gratitude to the first responders and emergency support providers who are helping people evacuate safely and making sure that nobody is left behind. The National on CBC last night had footage of firefighters swimming through polluted waters to reach houses in Grand Forks. Our province could not weather these emergencies without their bravery and determination, and I offer my sincere thanks.
It seems cruel and unusual to be facing more devastation after last year’s floods and fires. The 2017 fire season, as we know all too well, was the longest in the province’s history. We had a state of emergency in place for ten weeks, and more than 65,000 residents were evacuated. The flood response cost more than $73 million, and direct fire suppression cost more than $568 million.
Incredibly, thanks to the hard work by so many volunteers, there were no fatalities despite the 1,342 fires. The strength, courage and resiliency of British Columbians are unmatched and unrivalled. Those qualities, paired with a world-class team of firefighters and first responders, are why we made it through last year’s floods and fires without a single life lost in British Columbia, especially those in rural areas who have been fighting the front lines of climate change for so long.
It’s cruel to be facing more flooding after last year’s natural disaster, but sadly, it’s no longer unusual. And there is so much more to come as a consequence of global warming. It’s going to get much, much worse if we, as elected officials, fail to transition to a low-carbon economy.
I had an elderly gentleman in my office last week from a riding hit hard by the 2017 fire season. He talked about staying up all night to watch the fire move across nearby hills, going out to hose down his house with his son, checking on his neighbours to make sure they were okay too.
He talked about having post-traumatic stress disorder, but also he talked about having what he called pre-traumatic stress disorder as the fire season for 2018 approaches. He doesn’t look forward to summer anymore. He said he’s too worried about fires. The irony and the illustrative cognitive dissonance is that that afternoon his MLA stood in this House to speak in support of Kinder Morgan and the LNG development.
We as elected officials cannot let British Columbians fight climate change alone. We need to be there when disaster strikes — like this week in the southern Interior — but we also need to be here with the will to recognize the link between the laws we pass or protect and the climate change impacts felt by our constituents. The world has no time for politicians who show up to help sandbag one day but work to prevent meaningful climate action the next.
As the B.C. Auditor General wrote….
Mr. Speaker: Thank you, Member.
Oral Questions
GOVERNMENT RECORD-KEEPING
POLICIES AND USE OF EMAIL BY
PREMIER’S OFFICE STAFF
J. Johal: Last week we learned that the Minister of Citizens’ Services, from the time she was appointed until at least February, has been brazenly breaking the rules, rules that she is responsible for. The minister also shamelessly declared that the complete absence of sent emails by senior Premier’s office staff was because: “Any transitory emails we expect to be deleted.”
Can the Minister of Citizens’ Services tell us her definition of “transitory?”
Hon. J. Sims: Our government is committed to ensuring the rules are followed carefully and records of decisions are retained appropriately. Our government and its staff have been directed to manage records appropriately, including following good record management practices consistent with the recommendation of the Information and Privacy Commissioner.
Mr. Speaker: The member for Richmond-Queensborough on a supplemental.
J. Johal: The minister’s explanation on Thursday didn’t hold water. It certainly doesn’t today. NDP political operatives are deleting every email they send based on their own definition of “transitory.”
I have here a document, right here, prepared by professional civil servants, with nearly a dozen examples of the kind of non-transitory records that must be kept. They include things like documents about policy matter or how a case was managed; information about a decision; work schedules and assignments; instructions and advice; meeting minutes and agendas; or any useful information that helps explain the history of a relationship, decision or a project. It goes on and on.
To the minister, will she instruct NDP political staff to keep all sent emails, to prevent the ongoing destruction of these records?
Hon. J. Sims: Let me say again: our government is committed to ensuring the rules are followed carefully and records of decision are retained appropriately. Our government and its staff have been directed to manage records, including following good record management practices consistent with the recommendation of the Information and Privacy Commissioner.
We on this side of the House fully recognize the need to keep good records of government decisions, and we are doing so.
Mr. Speaker: The member for Richmond-Queensborough on a second supplemental.
J. Johal: Here are the facts. We know all sent emails were deleted by the Premier’s director of operations, director of liaison and coordination, director in the deputy minister’s office and his assistant deputy minister — every single one.
These senior officials are paid a combined half a million dollars by taxpayers, but apparently, they didn’t produce a single email with instructions or advice or any emails that contained information about a decision. NDP political operatives are deciding that every single email they produce is transitory. That’s what they’re saying. The public doesn’t buy this.
Will the member reinstate the policy requiring ministers and staff to retain all sent emails?
Hon. J. Horgan: I can appreciate this question didn’t come from the member for Kamloops–South Thompson.
I think the member, if he went back…. I appreciate he wasn’t here at the time. But the triple-delete scandal led to the then Premier hastily putting together a policy that didn’t necessarily make sense about documenting decisions of government, but it was a way to get out of a bad political fix. It was not necessarily the best way to manage records in government.
For those issues that the member raised with respect to my office staff, that was largely in the early days of their employment within the government of British Columbia. Steps have been taken since then to ensure that all members have appropriate document disposal practices in place. Those records do exist on servers, if the member wants to go looking for them, and I’m sure he’ll do that.
T. Redies: Four senior officials in the Premier’s office had no records when a request was made for all sent emails and text messages over a four-month period.
Did the Premier’s director of operations, who’s paid $125,000 a year, really not produce any useful information for four months?
Hon. J. Horgan: Well, the previous government kept all of their information on Post-it Notes, so it wouldn’t be a surprise that it’s new members of this place that are taking this line of questioning when it comes to appropriate document disposal.
The triple-delete scandal opened up an opportunity for all members of this place and all public servants to have a better understanding of what appropriate document disposal really meant. That has been ongoing since we were sworn in, in July, and that will continue to be the case. We want to ensure that the documents that record the decisions of government are available to the public in a transparent and open way.
The transitory documents that the member may be looking for are also on the server. They’re not triple-deleted. They can be found, if required. Determinations have been made about whether they were transitory or relevant to decisions that are made by government, and that’s the responsibility of the Information and Privacy Commissioner.
Mr. Speaker: The member for Surrey–White Rock on a supplemental.
T. Redies: Well, it’s interesting that these emails are available, because when we FOI’d them, they were not readily available.
The Minister of Citizens’ Services rescinded the directive that ministers and staff retain all sent emails. Now NDP political operatives decide what is and what is not transitory, and for staff in the Premier’s office, this means deleting every single email.
Did the Premier’s director of liaison and coordination, who is paid $100,000 a year, really not email a single meeting agenda or meeting minutes for four months?
Hon. J. Horgan: Again, I appreciate that the new members of this place will not remember the triple-delete scandal as vividly as some of the members on the front bench of the opposition, but it was a result of that triple-delete scandal that the Premier of the day cooked up her own solution to the problem, which was to stop using Post-it Notes and allegedly keep all of the emails that were being created. The appropriate thing to do was to take direction from the freedom-of-information and privacy commissioner, and that’s exactly what we’re doing.
ESTABLISHMENT OF TRADE AND
INVESTMENT OFFICE IN
TAIWAN
A. Weaver: I must admit that I feel like I’m living in the twilight zone, listening to the line of questioning coming from the members opposite, in light of the last three or four years of hearing them defend the same.
British Columbia is the investment gateway to Canada for nations of the Pacific Rim, and British Columbia has established representative offices to help promote trade and investment in a number of these Pacific Rim nations. Just last fall, for example, the B.C. government established a new trade and investment office in Seattle which will focus on trade and investment in the technology sector.
However, one jurisdiction that doesn’t have any representative office is Taiwan. Taiwan is B.C.’s sixth-largest trading partner, with bilateral trade volume totalling an estimated $1.87 billion. Alberta established a trade office in Taiwan in 1988 that has helped to steadily grow the trade between these two jurisdictions.
My question to Minister of Jobs, Trade and Technology is this. Does the minister recognize the opportunity we have to cement a stronger trading relationship with Taiwan by establishing a trade and investment representative office in Taiwan?
Hon. B. Ralston: I thank the Leader of the Third Party for his question on this important topic.
Taiwan is indeed an important trading partner for British Columbia. Businesses here in British Columbia exported over $700 million worth of product and services to Taiwan last year, and that value has been growing steadily since 2012. Fully 43 percent of Canadian exports to Taiwan originate in British Columbia, and as the Leader of the Third Party pointed out, Taiwan is British Columbia’s No. 6 destination for exports. Many people here in British Columbia looking to expand look to Asia and to Taiwan among those regions in Asia.
This weekend I was pleased to attend the Taiwan Chamber of Commerce in British Columbia annual gala on Saturday night. A number of members were there, and I was able to express these feelings of affinity and gratitude personally.
Certainly, as the Leader of the Third Party has noted, the federal government has a trade office in Taipei and helps Canadian businesses expand into Taiwan’s market. Our government continues to seek opportunities to diversify trade into Asia and to seek reciprocal investment opportunities here in British Columbia. Indeed, the future prosperity of British Columbia depends on our ability to do that effectively.
Mr. Speaker: The Leader of the Third Party on a supplemental.
A. Weaver: Thank you to the minister for that constructive and thoughtful response.
British Columbia presently has offices in Japan, South Korea, Hong Kong, India, Indonesia, the Philippines, Singapore and mainland China. Their establishment represents an important step in diversifying trade partners and positioning British Columbia to take advantage of new and emerging markets, which is all the more important, frankly, as B.C. continues to develop its tech sector.
Developing strong relationships with trading partners in Asia, who will drive much of the demand for innovation both within and beyond the clean tech sector in the coming years, will be essential if we are to firmly establish ourselves as a leader in shipping not just B.C.’s raw resources but also B.C. technology and ideas to other jurisdictions.
My question, once again to the Minister of Jobs, Trade and Technology, is this. When can British Columbia expect this government to establish a trade office in Taiwan?
Hon. B. Ralston: I share the Leader of the Third Party’s enthusiasm about the trading opportunities in Asia. We’re certainly looking at where British Columbia businesses can expand and how we might be able to assist that.
Taiwan is an important partner for many British Columbia businesses. As I mentioned, on Saturday, I was able to discuss these opportunities with many Canadians who have origins in Taiwan. Indeed, there are members in the Legislature who have strong affinities with Taiwan.
Those opportunities are there, and we’re committed to diversifying the economy and our markets, both in terms of attracting investment and in terms of exporting more of our goods and services to Asia. We’re building the strength in our economy to help businesses expand and create good jobs for British Columbians here in British Columbia, not only in one region but throughout the province, in a way that the previous government didn’t.
USE OF PRIVATE EMAIL ACCOUNT
BY CITIZENS’ SERVICES
MINISTER
M. Stilwell: Last week the minister said: “When I read articles that were interesting to me, I forwarded it to my staff. I’ve looked at the emails. It wasn’t government business except for one email, which was about the timing of an announcement.” However, in the package of documents, there were significant redactions, including entire pages that are censored.
Can the minister explain why, if these are innocuous emails, they would be censored?
Hon. J. Sims: As I said last week, while I was on my personal device using social media, I forwarded articles I found interesting to staff. Those records were then moved into the government system, as per policy. I should not have used my personal email to contact staff, and I’ll be more diligent in the future.
As the member opposite has a record of these emails, they will know that they are part of the government record.
Mr. Speaker: The member for Parksville-Qualicum on a supplemental.
M. Stilwell: Well, this is what the ministry told us. “Some information has been withheld” pursuant to section 13, which is policy advice or recommendations; section 15, which is disclosure harmful to law enforcement; and section 17, which is disclosure harmful to the financial or economic interests of a public body. Clearly, the professional civil servants identified these emails as government business.
Will the minister admit that she’s made another error and that she misled the media last week?
Hon. J. Sims: Let me tell you that those records were moved into the government system, as per the policy. Otherwise, colleagues across the way would not have received them as an FOI. I should not have used my personal email to contact staff, and I’ll be more diligent in the future. It is important that the rules be followed and that best practices are followed. Our government is committed to ensuring that happens.
As I said previously, the colleagues across the way would not have those emails, would not have received that information when they put an FOI in if they were not part of the government record. They are part of the government record, and they were there. They were not deleted.
USE OF PRIVATE EMAIL BY CITIZENS’
SERVICES MINISTER AND
CONTRACTS FOR
INFORMATION TECHNOLOGY SERVICES
P. Milobar: Let’s take a closer look at the emails sent and received by the minister on her personal email on February 16 and 17. They relate to a multi-million-dollar health IT contract as well as a second multi-million-dollar government-wide computer services procurement.
The initial email includes an article with the headline: “Big IT Deal Goes Ahead Despite NDP Campaign Pledge.” The rest, however, is censored because professional civil servants have identified it as containing “policy advice or recommendations.”
My question is simple. What policy advice did the minister receive on her personal email related to these multi-million-dollar IT contracts?
Hon. J. Sims: As I said previously, while on my personal device, using social media, I came across articles which I forwarded to my staff. I should not have done that, and I’ll be more diligent in the future. But the fact is that those emails were available. They were not deleted. Policy is being followed, because they were transferred onto the government system, as per policy.
Mr. Speaker: Kamloops–North Thompson on a supplemental.
P. Milobar: Well, the emails have a subject line, and then they’re completely redacted for the most part. The minister used her private email to receive and forward correspondence from someone outside of government related to the multi-million-dollar contracts over which the minister has direct influence. Whatever they had to say to the minister has been identified by professional civil servants to be either policy advice or recommendations.
The minister owes British Columbians an explanation. What was the secret policy advice?
Hon. J. Sims: As I said previously, emails sent from my personal account were transferred to the government account, as per policy.
I’m finding it surprising that the opposition is asking about these things after having gone through the practice of triple delete. When it came to the Highway of Tears, their staff triple-deleted the records and then misled. The Information and Privacy Commissioner’s report found that these practices threaten the integrity of access to information in British Columbia. They refused to change their “whatever it takes to win” culture until they were caught.
These emails that were sent from my account were transferred to the government account.
L. Throness: Well, we’ve already determined that an email of February 16 to the constituency office of the Minister of Citizens’ Services contained government policy advice or recommendations. Her constituency staff then emailed the censored policy advice not to the minister’s government email but to her private email account, as if that was perfectly routine. In turn, the minister used her private email to forward the advice to the ministerial office, as if that too was routine.
My question is: why would the minister instruct her staff to routinely send confidential government policy advice and recommendations to her private email?
Hon. J. Sims: We are committed, on this side of the House, to ensuring that the rules are followed carefully and that records of decisions are retained appropriately, as per the recommendations by B.C.’s Information and Privacy Commissioner. B.C. government employees, including political staff, are required to follow the appropriate use policy. This means employees must use their government email accounts when conducting government business.
In some cases, due to extenuating circumstances, staff may have used personal emails. Staff have been directed to take the appropriate steps to transfer these records to the government email system in accordance with policies. We are following this policy to ensure that government information is accessed and stored appropriately, and that is why my colleagues across the way were able to access those emails.
Mr. Speaker: The member for Chilliwack-Kent on a supplemental.
L. Throness: A little bit of transparency and disclosure would help here. We don’t know what was deleted, but we do know the topic. It was a large, multi-year contract to provide computer services to all health authorities.
When the minister routinely uses her private email and avoids the government email, it begs the question why. The minister invites suspicion on the process by which multi-million-dollar contracts are awarded. The public — and I’m sure the bidders on those contracts — would like to know. Who sent the email, and what was the policy advice the minister refuses to reveal?
Hon. J. Sims: As I said previously, staff have been directed to take the appropriate steps to transfer any records into the government email system in accordance with the policy if they should, under extenuating circumstances, have used a different account.
I want to assure everyone that where personal email was used, those records have been transferred, and that’s why people across the way have copies of those emails. They were not triple-deleted or deleted, as the previous government did.
S. Bond: Let’s help the minister recall that just last week she said that there was only one email that was at issue and that her practice was to deal with social media articles. Well, let’s be clear. An email is sent on February 16 that the minister received on her personal email. We don’t know who it came from because the name is redacted for privacy reasons. We also don’t know the contents because that, too, has been redacted. Why? Section 13, it says — because of advice or policy recommendations. But we do know that it relates to an issue around the multi-million-dollar IT contract and that the content is policy advice or recommendations.
To the minister, who did the email come from, and what advice was she given?
Hon. J. Sims: That particular email that came into my private email system was forwarded to a government email and was sent to my staff and is part of the government record. Any redaction that takes place there happens according to the policies we have.
I keep saying: you would not have copies of those records if this government was into triple-deleting or even deleting. You have the records because they were not deleted.
Mr. Speaker: The member for Prince George–Valemount on a supplemental.
S. Bond: Well, we should be clear, and so should the minister. She referenced her use of private email related to the use of social media. This is a serious matter. This is policy advice, and that designation is determined by the professional public service — not me, not members of the opposition.
The email content is redacted because of policy advice. That advice came to the minister on her personal email account. That’s not exactly the account that the minister gave last week.
Let’s ask the minister one more time. If this minister is interested in clearing the air, will she answer the question: who was the email from, and what was the policy advice that was redacted?
Hon. J. Sims: Let me say again that the reason my colleagues across the way have copies of those emails is because they were part of government records. Policy was followed in transferring those into government records, and that’s why they have them.
M. de Jong: The minister seems to want to make light of the fact that fully seven months into her term as minister, she was in violation of the very rules she is charged with enforcing. She says it’s no big deal, just social media and a bunch of articles that I found of interest. Except the email of February 16, pertaining to a multi-million-dollar IT procurement initiative and drawn from the minister’s own personal email account, has been severed.
It has been severed pursuant to the Freedom of Information and Privacy Protection Act, section 13, which says: “The head of a public body may refuse to disclose to an applicant information that would reveal advice or recommendations developed by or for a public body or a minister.” Hardly consistent with the account the minister has been trying to give these last few days.
The question is not a complicated one, and it goes to the heart of preserving the integrity of the system the minister is responsible for enforcing. What was the advice? What was the recommendation that she received and did not want on her public or her governmental email pertaining to this multi-million-dollar contract?
Hon. J. Sims: Once again, my colleagues across the way would not have copies of those emails if they had been deleted or triple-deleted. Emails were put into government records. They are there, and then the policies for redaction are followed. Those policies are the same as they were when that side was sitting in government.
We are committed to ensuring the rules are followed carefully and records of decision are retained appropriately, as per the recommendation of B.C.’s Information and Privacy Commissioner.
I have said it, and I will say again. I never mind apologizing. I should not have used my personal email. I’ll be more diligent in the future. I also want to say that those emails were transferred to a government server, as per policy, and that’s why you have them.
Mr. Speaker: The member for Abbotsford West on a supplemental.
M. de Jong: The reason the opposition has them is, of course, because there was email traffic between the minister and an agency and a person covered by FOI. What we don’t know is what additional traffic, what additional communications pertaining to this multi-million-dollar contract might have taken place between the minister and other third parties via her private account.
Let me ask the minister this, who must surely — and if she isn’t, presumably some of her colleagues are — be extremely concerned by the impact this could have on the integrity of the procurement process itself.
Where there have been communications between the minister and other third parties pertaining to that procurement strategy, has the minister — having stood in the House now and conceded that she has behaved improperly — contacted the person in charge of ensuring the fairness of the procurement? Has she…?
Interjections.
Mr. Speaker: Members, we shall hear the fullness of the question.
M. de Jong: Has she alerted the procurement fairness officer to the extent of the communications and the nature of the communications that took place between her and some other third party pertaining to this multi-million-dollar contract?
Hon. J. Sims: I’m actually quite delighted to get up and answer this question again. You know, we have a….
Interjections.
Hon. J. Sims: Thank you very much. When you ask a question, it’s always a good idea to listen, right? Let me say this to you. That policy was followed. The emails you have are part of the government record. Redaction occurred according to policy. We are committed to making sure government decisions are recorded and we have good recordkeeping practices.
[End of question period.]
Petitions
Hon. J. Horgan: I have a petition signed by 153 of my constituents seeking changes to animal shelter rules in British Columbia. These citizens believe that there should be more opportunities for animal welfare in British Columbia and not just those that are available today.
A. Olsen: I seek leave to make an introduction.
Leave granted.
Introductions by Members
A. Olsen: I would like to introduce a constituent of beautiful Saanich North and the Islands, Courtland Sandover-Sly, and two of his colleagues, Jamie Shaw and Travis Lane, president and directors of the B.C. Independent Cannabis Association. There’s a little piece of legislation coming in later today, and it’s caught their attention. I’d like to have the House please make them feel very welcome.
Orders of the Day
Hon. M. Farnworth: I call Motion 21 on the order paper in my name.
Government Motions on Notice
MOTION 21 — COMMITTEE OF SUPPLY
TO SIT IN THREE
SECTIONS
Hon. M. Farnworth: Motion 21 reads:
[Further to the motion adopted on March 1, 2018, that this House hereby authorizes the Committee of Supply for this session to sit in an additional third section designated Section C which will sit in the Birch Committee Room as may be appointed from time to time. All rules and provisions of the motion related to Committee of Supply, Section A shall apply to Section C. The Members of Committee of Supply, Section C shall be identical to the composition of Committee of Supply, Section A.]
Motion approved.
Hon. M. Farnworth: In this chamber, I call second reading on Bill 26, Child, Family and Community Service Amendment Act. In Committee A, I call continued debate on the estimates of the Ministry of Health. In Section C, the Birch Room, I call Committee of the Whole on Bill 25, Real Estate Development Marketing Amendment Act, 2018.
M. Polak: Just as a point of clarification, I note that my opposite member referred to Committee C as Committee of Supply. I seek to understand if that’s the correct wording.
Hon. M. Farnworth: Section C is to do the Committee of the Whole.
[L. Reid in the chair.]
Second Reading of Bills
BILL 26 — CHILD, FAMILY AND
COMMUNITY SERVICE
AMENDMENT ACT, 2018
Hon. K. Conroy: I move that Bill 26 be now read a second time.
For too long, Indigenous children and youth have been overrepresented in our child welfare system. Indigenous children, like all children, deserve to grow up in safe, loving homes, connected to their community and culture. One of the sad realities of our colonial history is that more than half of the children in government care are Indigenous. It’s a legacy of colonialism that continues today, and we are committed to changing that.
Reducing the overrepresentation of Indigenous children in the child welfare system by working with Indigenous communities is a priority for this government as we move towards meaningful and lasting reconciliation. My mandate letter from the Premier made it very clear that this is a top priority for me as a minister. Bill 26 gives us a practical, meaningful way to do just that.
This government believes that Indigenous children connected to their community and culture are Indigenous children growing up in a safe, healthy and loving environment. The proposed changes to the Child, Family and Community Service Act will give Indigenous communities greater involvement in child welfare decisions to help keep their children out of care, safe in their home communities and connected to their cultures.
For years now, Indigenous communities and leaders have demanded urgent changes to keep Indigenous children out of care. Shortly after my taking on the role as the Minister of Children and Family Development, the leaders of the September 2017 First Nations Leadership gathering told me I needed to make changes now in how our social workers do their work. This message was driven home to me at the emergency meeting of Indigenous child welfare, called by the federal government in January.
The message was further strengthened in specific recommendations in Grand Chief Ed John’s report. Grand Chief Ed John’s report was developed after extensive consultation with First Nations and Indigenous peoples and called for changes to the legislation that commits government to work more collaboratively with Indigenous communities right at the beginning of a child protection concern. While we have been able to reduce the number of Indigenous children in care by almost 100 over the past year, by focusing on prevention and supporting families in communities, we need to do more.
For that, we need to change the legislation. We listened to what communities have been telling us, and we reviewed Grand Chief Ed John’s report to inform us of what aspects of the legislation we needed to change, urgently, in order to reduce the number of Indigenous children coming into care. We also looked to what the United Nations declaration on the rights of Indigenous peoples and the Truth And Reconciliation calls to action tell us about the best interests of Indigenous children and their entitlement to connection with family and community.
Let me quote from the United Nations declaration on the rights of Indigenous peoples: “Recognizing in particular the right of Indigenous families and communities to retain shared responsibility for the upbringing, training, education and well-being of their children, consistent with the rights of the child.”
Through this bill and these amendments to our act, government is responding to the immediate need to share information, engage Indigenous communities early when a family and child are vulnerable and seek solutions outside of child protection. These amendments include the means for ministry social workers to make agreements with the Indigenous child’s parents and community to allow for greater involvement in planning for the child; additional ways that social workers, parents and the Indigenous communities can collaborate proactively to keep a child safe and prevent them from coming into care.
There’s the requirement that social workers give continued notice of Child, Family and Community Service Act proceedings to an Indigenous community when it concerns custody of an Indigenous child; the added right of an Indigenous child in care to learn about the practice of the child’s Indigenous traditions, customs and language and the importance of the child belonging to their Indigenous community; the strengthening of the “best interests of the child” test.
When the courts and social workers are determining the best interests of an Indigenous child, they will be required to consider the importance of the child being able to learn about and practise their traditions, customs and language and to belong to their Indigenous community.
Finally, the amendments strengthen the guiding principles and service delivery principles by stating that Indigenous families and communities share responsibility for the upbringing and well-being of Indigenous children. Indigenous children are entitled to learn about and practise their Indigenous traditions, customs and languages and to belong to their Indigenous community.
The impact of residential schools on Indigenous children, families and communities should be considered in the planning and delivery of services to Indigenous children and families. This change to the act’s service delivery principles is inspired by the calls to action of the Truth and Reconciliation Commission.
This government has adopted the UN declaration on the rights of Indigenous peoples and the calls to action of the Truth and Reconciliation Commission. There is much more work to be done, in collaboration with Indigenous communities, to fulfil this commitment. That process is led by my colleague the Minister of Indigenous Relations and Reconciliation.
The changes to the act are a significant step forward for children and families in the province, but we recognize that these are just first steps. We need to work with our partners — delegated Aboriginal agencies, the First Nations Leadership Council and individual First Nations — to bring these amendments to life. That work will include policy development and practice changes, and we look forward to hearing from the experience and expertise of First Nations and delegated Aboriginal agencies to learn from them on how to make these changes work for First Nations families. It is just one of the many ways we are listening to and working with Indigenous communities to reform the child welfare system.
As I have said, it is just a beginning, not an end. I know — we all know — that the approaches that have been taken up to now have utterly failed Indigenous children and their families. I’ve demonstrated my commitment to the transfer of jurisdiction. We are continuing that work with individual First Nations in discussion to expand this work to other Indigenous communities, and we have committed to that transformational change with the First Nations Leadership Council.
We know that delegated Aboriginal agencies also have decades of experience to offer as we move towards Indigenous communities exercising authority and jurisdiction over their children and families. This work will take time, but my job right now is to reduce the number of Indigenous children and youth in care. This bill is intended to do just that.
The ministry has listened to years of concerns and demands by Indigenous communities for change, and this government is acting on those concerns. We have listened to the federal cry about an urgent crisis in Indigenous child welfare across the country. It’s time to start this change in British Columbia for those children now in care and those whose families are in crisis. In communities across this province right now, there are children and families who will benefit from the changes in this bill. We know this because Indigenous communities have told us so.
We agree that there is a crisis in Indigenous child welfare. It is our responsibility to step up and hear what Indigenous communities are telling us, what Grand Chief Ed John’s report says and what children and families need and to make those changes now, while we work on the systemic changes required to fully transform the system that has failed Indigenous children and families.
I’m looking forward to further discussion on this bill at committee stage.
L. Throness: Well, it’s a pleasure to also rise to speak to Bill 26, the Child, Family and Community Service Amendment Act. Before I get into the substance of the bill and consider some certain particulars of it, I want to talk about the very big picture. The broader purpose of the bill is very simple: everybody needs family. Every child, Indigenous or otherwise, needs and deserves love, belonging and permanency, whether in their birth family or in another kind of permanent family situation.
This was impressed upon me last week while sitting in the Standing Committee on Children and Youth as we considered the report, Broken Promises, which was written a year ago, by the Representative for Children and Youth, about the tragic case of Alex Gervais, who committed suicide in 2015 while in government care.
Central to that boy’s life was the absence of family. There were opportunities for connecting him with his extended family that the system neglected to follow up on, which would probably have made the difference in his life. For a while, he was staying with his stepmother. The police had to literally drag him away from his stepmom, but he wasn’t allowed to stay.
Every child, including all 7,000 children in government care, needs what Alex Gervais didn’t get. That’s love and belonging in a permanent family of their own. Unfortunately, bureaucracies are ill equipped to provide that.
Governments are a physical mechanism designed to achieve a spiritual purpose. So there’s something of a mismatch, a disconnect there. Governments deal with institutions. They’re paper mechanisms. They have contracts and highly educated people with good salaries and good intentions who work within guidelines and policies and professional relationships and reporting hierarchies and caseloads. They have tightly defined spheres within which they are able to work. They must make judgment calls. There are limits to their authority before they need permission from up the ladder, and those permissions take time. There are different branches of government that abide by different laws and regulations and policies.
Now, if you don’t have all these things, you can’t run a government. Don’t get me wrong, but they can’t supply the intimate, personal, permanent associations that a child really needs to be healthy in life.
That brings me to this bill which expands the scope of officials of the Ministry of Children and Family Development to make agreements with all sorts of agencies, not only parents and relatives but delegated Aboriginal agencies, First Nations, treaty nations and other yet-to-be named groups or agencies. To the degree that they are institutions — and I think that most of them will be institutions — they share that same difficulty. Whether Indigenous or not, they are government bodies rather than families.
What really disturbed me about Alex Gervais’s story was that one of the institutions that failed him was a delegated Aboriginal agency. In fact, MCFD made an agreement in Alex’s case with a delegated Aboriginal agency, which, in turn, made a further agreement with a private care provider to care for Alex. All three levels of oversight failed him equally in ways that are described in great and sad detail by the representative’s report.
What I’m saying is this. This bill is not a panacea. Just the fact that the bill empowers a broadened scope of agreements will not, in itself, make everything all right. I’m not expecting that handing things over to Indigenous agencies, rather than MCFD, will suddenly fix all the problems for the 63 percent of children in government care who are Indigenous.
To give an analogy, the bill describes a new and broader path to the goal of love and belonging and permanency, but it doesn’t necessarily carry that child along that path. Whether that child arrives at the goal of family or not depends on the quality and capacity and character and passion and focus of ministry staff and those with whom they make agreements. God knows there have been enough failures in the past. There is no guarantee of success in the future. However, we do think that this bill opens up new possibilities. It is a step in the right direction, and for that reason, we will support the bill.
Now, the minister corrected me the other day in estimates, and rightly so, when I said that adoption and foster care lie at the heart of what she does. She disagreed with me. She said that building and strengthening families so that children can stay in the family home is her most important job, and I have to agree with that.
Our guiding light has to be that goal — the goal of a permanent family home for every child, a family that will provide the love and belonging that they need to survive and thrive. On this point, I want to quote from the Representative for Children and Youth, who appeared before the standing committee on April 11. Here’s what he said:
“One institution that we haven’t done a good job of supporting and building is the family. Families struggle, for all kinds of historic reasons. We’ve tried to find institutional solutions to that by building and contracting with churches and building hospitals and hospital wings and taking children from their families. That hasn’t worked. I think we can all agree on that. We haven’t succeeded. Building the institution of the family and supporting the family as an institution — I’m all for that.”
I’m all for that too. I am all for that.
While I think it’s a good thing that we’re expanding the scope of agreements with different nations and agencies and entities and parties named in the bill, all of our efforts will be wasted — they will fail — if we don’t, in the end, strengthen families and provide children with permanent families where they are loved and where they belong. It’s as simple as that. That, I think, is the government’s spiritual mandate, and I think it’s a very difficult one.
That being said, let’s move on to consider the context of the bill before us. In the wake of some stories like Alex’s story, Grand Chief Ed John was given six months in 2015 by the former government to come up with solutions to the vast overrepresentation of Indigenous children in the care of government. Grand Chief John delivered his report in November 2016, and it was greeted positively by the B.C. Liberal government.
In fact, a year ago, here’s what the 2017 B.C. Liberal platform said about improvements for Indigenous peoples: “Recognized as a key priority, the government asked Grand Chief Ed John to do a comprehensive review of this area, and his report has provided guidance on the path forward. The government has already started implementing 40 of his 85 recommendations.”
The bill before us today, Bill 26, builds on the strong foundation laid by our own government in fulfilment of Chief Ed John’s recommendations — most noticeably, recommendation 41, which says this:
“The province consider the following amendments to the CFCSA in order to provide improved permanency planning for Indigenous children and youth — strengthening of section 7 of the CFCSA to include mandatory permanency planning for all children in care, including provisions to ensure that for Indigenous children, permanency plans are jointly developed by each child’s family and community, including elders, cultural leaders, elected leaders and matriarchs, and including a provision requiring independent review of permanency plans on an annual basis.”
This is the context of the bill. It’s a response to the Ed John report. I would point out that the bill attempts to provide a response to about nine of the recommendations in Chief John’s report.
The bill provides broad authority for the director to make agreements with a wide spectrum of interested parties in support of a child in care: parents, relatives, delegated Aboriginal agencies, prescribed First Nations and treaty First Nations. This is a change in mindset by the government. The government is reaching out to other partners in an attempt to stem the tide of Indigenous children in care.
Here I have to pause to comment on what the Representative for Children and Youth said in committee a couple of weeks ago when he appeared there. He said that he was not in any way consulted by the government about this legislation. I’m astonished by that. He literally wrote the book on Alex Gervais. The former representative wrote many other reports like them. The NDP, at that time, used those reports to rail against the government. I find it unimaginable that the NDP would now keep the representative completely in the dark about the legislation.
I’m not talking about revealing any legislative secrets. I’m just saying that they should have at least asked him what he would like to see. But that was not done. It speaks to the arrogance of this young government, as if they have all the answers. They don’t need advice from anyone. Well, I think they’ll find out, over time, that they’re wrong.
Allow me to continue. Indigenous children are 17 times more likely to be taken into care than a non-Indigenous child. The government is going to extraordinary lengths in this legislation to reach out to the Aboriginal community because special measures need to be taken where there are special needs. This special situation of need warrants a change in the government’s mindset.
Let me give you a few more statistics. Children are taken into government care when they’re unsafe in the family home. Aboriginal children are heavily overrepresented in government care. As of March 31, 2017, where we find the latest statistics, there were 6,950 children in government care, and 63 percent of them are Indigenous children, even though just 5 percent of B.C. residents are Indigenous.
To narrow this down even further, there are 79,000 Indigenous children under 18 in B.C. Six percent of all Indigenous children in B.C. are, therefore, in the care of government. It was because of this situation that we, when we were in government, mandated, funded and supported the Ed John report. This bill, as I said, responds to nine more recommendations of his report.
Of the Aboriginal children in care, 75 percent of them are in foster homes, and 25 percent are in contracted care. I would remind the House that contracted care is five times more expensive than foster care, and it does not provide the love and warmth of a family home. The report on Alex Gervais tells us that contracted care can, at times, even harm a child. That’s why finding safe and loving care for Indigenous children in their own communities will be better for them, as well as saving the taxpayer money.
I will also point out that this bill will be less useful without strong delegated Aboriginal agencies around the province.
The Representative for Children and Youth has stated that a lack of assistance to delegated Aboriginal agencies actually contributes to the overrepresentation of Indigenous children in care, because of several reasons that he pointed out, among them high caseloads, short-term contracts, not accounting for the unique needs of rural and remote communities, long investigation times and a paternalistic attitude on the part of MCFD staff. The government needs to resolve these issues in order to make Bill 26 effective.
While this bill focuses on children and their plans for care, we have to remember that it comes about because of problems with parents. The children are not the problems; they’re the victims. They are unsafe in Indigenous homes at a higher rate than non-Indigenous homes. Those children really do need protection.
While we, the B.C. Liberals, were in government, we established the overall direction of strengthening families so that every child can be safe in the family home. The minister has to work hard to strengthen Indigenous families in their communities. The representative has indicated that if the communities were better resourced, they might be able to make a difference in this overrepresentation simply by strengthening families.
The other thing the representative said that was of interest to me is that the bill provides that the director — and by that we mean a responsible official in the MCFD — may make agreements rather than shall make agreements. He felt that the bill does not go far enough.
I might question that idea and point out that while, in most cases, agreements will obviously be made, which is why we’re passing this legislation, an agreement with another party should not yet be required. This is because the government is responsible for those children. The government is the guardian while they are in care. If there is no entity that the government feels quite satisfied has the capacity and ability and energy to carry out the terms of the agreement, no agreement should be made.
This is an abundance of caution on the part of government, and given what has happened in the past, this caution is justified. Now, at some point in the future, as capacities develop, this may change. This bill takes a step toward that, and it acknowledges that capacity is developing, but it may take more time.
As I have already pointed out, the Representative for Children and Youth has acknowledged that designated Aboriginal agencies lack capacity, and they are among the best prepared. So the government has work to do to strengthen agencies before it can give more care away.
Another issue addressed in the bill is that of sharing private information. For the purposes of community involvement in Indigenous care, the bill provides for the sharing of personal information with parties, such as Indigenous groups. We support this, as an aspect of the best interest of the child, as long as the conditions of the information agreements are robust.
Now I want to move on to talk about new guiding principles in the bill, of which there are three. The first is this: that Indigenous families and Indigenous communities share responsibility for the upbringing and the well-being of Indigenous children. Now, that’s fine with me. I think we can support that. But we have to remember that we are amending an act that applies to all British Columbians, not just First Nations.
I wonder if there are any other ethnic communities that have a tradition of collective responsibility for the well-being of their children that might also be overrepresented among children in government care. For example, I’ve heard that there are ethnic daycares in B.C., and that seems to me to be the kind of community care concept. It seems only fair to me that every ethnicity that would want to be treated in this way should have that privilege. So I’ll be asking in committee whether any other ethnicity with a tradition of community care is overrepresented and perhaps should be named in the bill as well.
The second guiding principle is as follows: the director will have to consider the impact of residential schools as they plan and deliver services to Indigenous children and families. Now, I have no problem with this one either, but I would like to know more specifics from the government. How might that consideration impact a child welfare case in concrete terms?
I would point out that this principle doesn’t impact any children directly, because the last residential school was closed, in Saskatchewan, in 1996, and in B.C., in 1984, in Mission. So no child under 18 today has ever attended a residential school. This guiding principle will apply only to parents and grandparents and indirectly to children and grandkids.
I’m wondering what kind of consideration would be given to parents. What kind of different allowance or decisions would be made that would take residential schools into account? I’ll be seeking more information at committee stage about this.
The third principle is this: the director must now consider the importance of the child being able to learn about and practise the child’s Indigenous traditions, customs and language and the importance of the child belonging to the child’s Indigenous community.
I won’t have any questions about this one, nor the related right contained in the bill. That is the right to receive guidance, encouragement and support to learn about and practise their Indigenous traditions, customs and languages and belong to their Indigenous communities.
In a broad sense, these principles and rights are all about connecting Indigenous children to their culture and heritage, to kinship and wider social circles within their communities as a protective measure. So we think this is a healthy development, as long as it works, and we’ll be watching closely to see that it does.
On a lesser point, the bill makes a number of changes with respect to nomenclature of First Nations people. Specifically, the bill seems to me to remove the word “Aboriginal” throughout, even though the word is replete through other B.C. laws as well as federal laws and even in the Charter of Rights and Freedoms. So I’ll want to ask in committee why we’re removing the word “Aboriginal” from the act altogether, as if it’s an incorrect term, although it is used even in our constitution. I’ll want to ask about the legal ramifications of changing that word.
Now I want to move on to five main things in the other content of the bill. The existing act allows for voluntary agreements with the director, Ministry of Children and Family Development. This bill provides for a broader span of voluntary agreements so that others can participate in planning for children — a parent, a child’s kin and others — and youth agreements, with the appropriate legal entities representing Indigenous communities.
Agreements will have to describe the party’s role. They can withdraw from it without termination of the agreement. My comment to that would be that the bill anticipates that some parties may withdraw from the agreement. It suggests that the government anticipates that not all parties to a voluntary agreement will be reliable. This means that if a party withdraws, the government will need to remain the constant responsible party in the care of the child. The government must not wash its hands of Indigenous children just because it has an agreement. It needs to remain there in support of the child.
The second thing is that directors must — and I would point out that they must; this is not an option — complete a child protection report upon taking a child into care. By this bill, if the report concerns an Indigenous child, the director will be required to determine whether to refer the report to a First Nation, the Nisg̱a’a Nation or a treaty First Nation in situations where the child resides on the nation’s land. It will only be sent if the nation has entered into an agreement to take on this responsibility and has been prescribed in a regulation approved by cabinet.
I would point out here that such a referral will absolve the director of further action, which I think means that the child will no longer be in government care, and I’ll want to clarify that in committee. If that is the case, then the order-in-council designation process and the agreement itself and the party with whom we will make agreements will have to be as robust as the government.
I want to emphasize this point. Unless the government is convinced that a party to an agreement is as responsible as the government and can do at least as good a job as MCFD, then it shouldn’t be designated by cabinet as an alternate to government care. I will be asking what steps, in terms of an accreditation process, the government will be taking to assure this as it makes regulations attached to the act.
The fourth thing. Under this bill, the director will be able to withdraw from a hearing related to the removal of a child if a parent makes an agreement with the Indigenous legal entity representing the child that the director considers is adequate to protect the child. This will be true even if the agreement is with a government agency outside B.C.
This power to withdraw is important. It will provide an incentive to make agreements, and that’s a good thing. But it will also require that both the entity and the agreement are strong. The government needs to establish criteria in regulations ahead of time for such entities and agreements.
Next, parents and Indigenous communities are being added to receive notice concerning the hearing of all extensions of temporary custody orders. When notice of the hearing is received, the person served will be entitled to be a party at the hearing and to notice of a hearing if they appear at the commencement of a hearing. I think this is an important legal right for parents in Indigenous communities. Parents and other interested parties need to be heard when the government wants to continue to keep a child out of the family home. This is a big deal.
I want to say that, quite often, I, as a critic, receive letters from around B.C. They are long letters, and they are anguished. Parents may be temporarily unfit, for whatever reason, to take care of their kids, and their children do need protection, but that doesn’t mean that the parent doesn’t love their children and that their children don’t still love their parents. They need to be included in the process.
Finally, the director will be able to make agreements for planning for children and service agreements with First Nations or a legal entity representing another Indigenous community. It could include assessments and investigations of children and families, making plans of care, independence and placement decisions.
This bill also empowers the director to enter into agreements with delegated Aboriginal agencies concerning the care of children. This really is a broad power, really replacing the functions of government with functions of First Nations or legal entities. I want to underscore that the process of accreditation and oversight must be strong, and, as before, while capacities in First Nations communities grow, this should remain an option, with the understanding that it will be the normal role of practice anyway.
To sum up, I have two main concerns about the bill, and I want to repeat them. The first is about government responsibility. We want to be assured that the government is not surrendering its responsibility for a child to another party, particularly in a voluntary agreement, while the child is in the government’s care. We say this because the bill anticipates allowing a party to withdraw from an agreement without the agreement itself being affected. Not all parties may be equally reliable. It is the government’s responsibility to be the constant party in the agreement to ensure the child’s continued safety and well-being.
The case of Alex Gervais, a Métis youth who committed suicide in 2015 while in the care of MCFD, which delegated responsibility to a delegated Aboriginal agency, which in turn hired a private care provider, proves that this bill is not a panacea. It is possible for all three levels of care to fail.
The quality of provider, whether Indigenous or non-Indigenous, is of first importance. But insofar as this bill empowers government officials to find permanent placements for children where they can experience love and belonging within their Indigenous context, that is a good thing. We think that the measures here offer a better path toward that goal for Indigenous children, although there is much work to be done.
My final concern is very broad. This bill focuses on plans and supports for children in care, but the real problem lies in the family home, which is why the ministry has been attempting, for good reason, to strengthen families.
The principle of strengthening families as a preventative measure was established by the B.C. Liberal government as the result of skyrocketing numbers of children in care during the 1990s. The removal of a child from a home is not the fault of a child. The child is the victim of an unsafe family situation. While the legislation before us understandably focuses on the custody of the child because the government becomes the child’s guardian while the child is in care, the need for change lies in the parents.
The bill does offer an incentive of assistance and support to a parent who signs an agreement with a director, but the clause could perhaps be stronger. Perhaps give the director and parties that he or she engages to place conditions upon the parents that would have to be met in order to regain custody…. I’ll be asking about this in committee, but I understand that because of situations that are experienced in immediate families, the bill empowers ministry staff to entrust children to a wider circle of Indigenous agencies and family connections, not just in a child’s birth family. We all sincerely hope that this will reduce their overrepresentation of children in care. On that we can all agree.
With that, I will look forward to committee stage, where we will be able to examine each section of the bill in greater detail.
S. Furstenau: Yesterday we celebrated Mother’s Day. It’s one of my favourite days of the year. There’s always breakfast. There are cards and homemade gifts. There are hugs and kisses. I always feel the deep happiness and sense of all being right with the world, the slowing down of time as I savour the moments of warmth and connection with my family.
Mother’s Day isn’t just all about mothers. It’s about the bond, the love that connects us as mothers to our children, who are for us precious and valuable beyond measure. It’s a day for society to recognize the intrinsic and valuable role that mothers play in raising future generations. There’s no love like the love I have for my children. It is boundless. It is ferocious. It is unrelenting. I can imagine nothing worse than being separated from them.
Over the course of this last year since the election, since opening our constituency office, I have become increasingly aware that we are failing, in this province and in this country, to honour mothers, to honour the elemental relationship between mothers and their children.
Let us begin in the hospitals. Imagine, within hours of giving birth, one of the most transformative experiences a woman can go through…. Imagine, within hours of holding your infant son or daughter for the first time, having a social worker come into your hospital room to inform you that your infant is going to be removed from you. It’s 2018 in Canada, and government employees are removing infants from their mothers in hospitals.
Often these are first-time mothers who have yet to reveal to society and to themselves how capable they are at being a mother of a child. A Huu-ay-aht mother whose infant was removed from her with no clear, specific cause fought back in the B.C. Supreme Court and, with the help of her lawyer and her community, was reunited with her infant.
In Cowichan, a group of women, including a midwife and a parent advocate, rallied around and supported a mom who had been informed that her infant was to be removed at the hospital. These moms were with their infants this Mother’s Day, but they will also have something that no mother should have to live with — the fear of losing their children to a government agency.
As one mother whose children have never been apprehended explained: “I have raised my children in fear — fear that I will be judged for what they are wearing, what’s in their lunch, how I speak to them in public. That fear is in my cells. It has affected who I am as a mother, and it has affected my children.”
Why does this mother feel this fear? Because she’s Indigenous. As an Indigenous mother, she has every reason to be fearful. Fewer than 10 percent of children in B.C. are Indigenous, but they make up nearly 65 percent of children in government care, which means, statistically, that this mother is right to be afraid.
I can’t imagine. I can’t begin to fathom how this would affect my day-to-day experience — to be so deeply afraid of losing my children to a government agency. As mothers, we are subject to other people’s judgments all the time. But for most of us, these judgments do not translate into the very real possibility that our children could be taken from us.
What are the outcomes for the children in care? These outcomes, sadly, reinforce our fears and worries. An article by Katie Hyslop in the Tyee last week reinforces exactly why federal Indigenous Services Minister Jane Philpott has said that we have a humanitarian crisis in Canada.
In B.C., children in care are more likely to spend time in jail in their lives than they are to graduate from high school. Across Canada, 60 percent of homeless youth have been in the foster care system.
Continuing from Hyslop’s article, according to Shelly Johnson, assistant professor of education at Thompson Rivers University and a former child welfare social worker: “Governments haven’t just known about this crisis for four decades. They created and perpetuated a system that keeps Indigenous kids in government care.”
Johnson continues: “The whole system was established to maintain control over Indigenous people. When you have Indigenous children in your care and custody, you have all the power over that family.” All the power.
As Hyslop points out in her article, in his 1982 report on the adoption of First Nations and Métis children outside the country, Assistant Chief Justice Kimelman said that the child welfare system was an act of cultural genocide. He explained that from inside the system, it’s difficult to see the macro-level impacts, but the cumulative effects of each decision resulted in catastrophe.
Kimelman wrote: “Every social worker, every administrator and every agency or region viewed the situation from a narrow perspective and saw each individual case as an exception, as a case involving extenuating circumstances.”
I see that in my riding. I raise issues, heartbreaking examples, of how the application of this act is failing families. I am met with justifications and excuses. I hear from parents over and over that they have been told: “You will never see your children again.” Or: “If you don’t comply, your children will be taken.” I see it when MCFD staff, from front-line social workers to ministry staff, justify each action, each apprehension, each time that the systemic issues play out over and over again.
Each case, they think, is justified. Yet there is, at the same time, the acknowledgement that there are systemic issues. MCFD needs to work very hard and very diligently to reconcile this conflict, this contradiction. If, indeed, there is systemic paternalism and systemic discrimination, and the minister acknowledges this in her comments, then each and every action needs to be assessed.
This is one of the truth and reconciliation calls to action — that the federal, provincial, territorial and Aboriginal governments monitor and assess neglect investigations. I urge the minister to take this call seriously. Without accountability becoming embedded in the practice, the systemic issues will continue, and parents and families will continue to be traumatized, terrified and desperate for help and support.
One of the most heart-wrenching stories I heard was from a victim support person with the RCMP. She worked with a mom whose infant had been apprehended. She helped the mom get through the entire list of requirements that MCFD had given her. The mom and the victim support worker both thought that if these requirements were fulfilled, the child would be returned. But after the significant effort on the part of the mom, she was told that there would now be new requirements. It broke that mother. She had worked hard in good faith to do what she had been told would be necessary to be reunited with her child, and then she was denied that fundamental right to be the mother to her own infant.
Are children actually safer or better off in care? A few, certainly, but the statistics and reports tell a chilling tale. There is no lack of researching and reporting on the many issues, challenges and failures of B.C.’s child welfare system.
Since the release of the Ted Hughes report in 2006, the Representative for Children and Youth has released dozens and dozens of reports, reviews and statements with recommendations to address the ongoing failures within the child welfare system, and what is the current reality? Still today, each month the representative’s office receives 200 reports on critical injuries and deaths. Of these 200, 85 per month are related to child welfare services. That’s 1,000 service-related reports of critical injury or death reviewed by the representative’s office each year that are specifically related to service delivery.
What are the top three reported issues? Sexual abuse, drug overdose and suicide attempts. In the last three months, according to the Representative for Children and Youth, there have been roughly 80 reports of suicide attempts. This is a catastrophe.
It’s been ten months since the new government was sworn in, and what has changed? In my constituency office, we hear from parents in despair whose children were removed not because of their inability to parent but because of the lack of support, usually related to poverty. For example, a woman is abused by her partner. The police and social workers are called to an incident at the home. The abuser is removed from the home as a precaution. The children are also removed and separated from their mother. The children’s first trauma is the act of violence to the mother. The second trauma is being separated from the mother, the person whose comfort they need and for whom they can also be comforting.
We underestimate the value of this connection and that the comfort is not from parent to child only; that shared comfort is necessary for the family to feel grounded in love, which helps them overcome trauma.
What we have witnessed in our work with local families is a discrepancy between what the legislation says and what actions are taken. More worrying still is that we hear ministry management saying that their message to ministry staff is to be creative in finding solutions that will keep Indigenous children out of care. That message is taking a long time to reach staff on the ground because it’s still, ten months into this new government’s term, a daily fight for each of these families to receive the support they need to keep their children at home.
The question I ask myself is this. If the directive from the top of the ministry is to do everything possible to keep Indigenous families together and in their communities, why can’t we see the evidence of this at our constituency level? What are the consequences for staff members who are not following management direction?
I’m not the only one asking this question. In his comments to the Select Standing Committee on Children and Youth, the Representative for Children and Youth said that there is recognition within the ministry that the priority should be to support families, but that he just doesn’t see “the implementation of this in practice.”
Indeed, section 2 of the Child, Family and Community Services Act, as it stands right now, which outlines the guiding principles of the legislation that currently governs the Ministry of Children and Families, states that “a family is the preferred environment for the care and upbringing of children and the responsibility for the protection of children rests primarily with the parents” and “if, with available support services, a family can provide a safe and nurturing environment for a child, support services should be provided.”
But what do we see in our constituency office week after week? Parents desperate for help and support from us as they try to navigate a system that is not living up to these guiding principles.
Every one of these parents wants to parent their children. Every one of them wants to know what it will take to get their children back. Every one of them is asking for more access to their children, which is sometimes as little as one hour per week. Every one of them has had a stack of paperwork with evidence of a process that many of us in this chamber would find impossible to navigate. Every one of them has had detailed knowledge of the Provincial Court and MCFD systems. Every one of them has said to us that they want to make sure that this doesn’t happen to somebody else.
As desperate as they are to be reunited with their own children — and, I would argue, as a result of the trauma of separation — they are selflessly motivated to make changes to the system to protect others from having to undergo the same.
Let’s begin with the fundamental assumption that parents have the right and the ability to raise their children. My question is: why can’t parents point to section 2 of the act today and expect support from this system? If their children are in care and the government is paying a foster parent or a group home to support that child, why can’t these parents expect that support?
When two out of three children in care in B.C. are Indigenous, we are a long way as a province from righting the legacy of assimilation policies, residential schools and the forced removal of children that is so sadly woven into the fabric of our nation’s history.
We talk about reconciliation, but what does it really look like? Reconciliation means putting forward legislation that includes the United Nations declaration on the rights of Indigenous peoples and the Truth and Reconciliation calls to action. This legislation does not.
Reconciliation means empowering ministry staff at all levels to fund programs and provide supports that focus on family preservation, as per section 2 of the act, and putting consequences in place when this does not happen. Reconciliation means giving the mother the benefit of the doubt, rather than subjecting her to a paternalistic, colonial process that erases her voice and her agency in the decisions that affect her the most. Reconciliation means providing social workers with a deep understanding of cultural practices and how they impact decision-making for parents.
I imagine a different future for families in B.C. It’s one where, if the Ministry of Children and Family Development knocks on your door, you open it up and gladly let them in — gratefully, willingly — because you know that they are there to provide you with the support that you need.
We have seen examples of the outcomes of programs like this in our province. Take the ’Namgis Nation in Alert Bay. If children there are in need of protection, they remain in contact with the biological parent or parents, who stay in the child’s life while they are supported in their journey to becoming healthier parents. As one social worker said in a recent news article: “It’s like two canoes side by side on the journey together.”
Social worker and director of Alert Bay’s ’Namgis Community Services Wendy White said: “Our role is to provide resources, information, referrals and support, but we are not the ones guiding the decision-making for the child.” Instead, it’s the family.
I visited Alert Bay twice this year, and both times I stood in awe of the teenagers and youth who were advocating for the end of fish farms in our province. These are empowered young Indigenous people whose energy is focused on making the world a better place.
Yet so many of this province’s youth who have spent their childhoods in the foster care system and have no family canoe alongside them are focused on survival. Being in survival mode means that people cannot work to their full potential. How many children in our province are not reaching their full potential?
The cases that come to my constituency office are the latest in a long, tragic history of government intervention in Indigenous families. The overwhelming numbers of Indigenous children in our welfare system, both as a country and a province, are the result of a historical legacy that continues to this day. As settlers moved into what is now known as British Columbia, they attempted to assimilate the vibrant Indigenous cultures and nations who were already here.
But they didn’t just take the physical land itself. They targeted the children. Agents of the government would enter the communities and homes of Indigenous peoples and take their children from them, as is so tragically represented in Kent Monkman’s The Scream and Richard Wagamese’s Indian Horse.
The government tried to justify these practices. Marks of cultural difference were perceived as child abuse. Government workers saw birthmarks common in some Indigenous communities and deemed them bruises. Homes that looked different from your average European home were unfit. Religious, linguistic and ceremonial practices were called “savage” and in need of “civilization.” In this way, the apprehension of Indigenous children was justified and normalized in government policies.
The stolen children were placed in residential schools across the country. There were five of these schools on Vancouver Island and 18 in British Columbia. In the care of religious and educational officials, these children were forbidden to speak their own languages or maintain their religious and cultural practices. Often they were purposely placed in residential schools far away from their traditional homes.
The scale of the physical, emotional and sexual abuse was monumental. Many children died. Some were forcibly sterilized. These schools operated for over 100 years, and the last one only closed in 1996. In the middle of the 20th century, adoption was seen as another tool for assimilation. Again, this was grounded in the justification that government was acting in the best interests of Indigenous children.
[R. Chouhan in the chair.]
By this time, there were already multiple generations of residential school survivors. Therefore, intergenerational trauma was widespread. Children’s homes and communities were impacted by the far-reaching repercussions of residential schools. They were also often growing up in rural, underserved communities with low socioeconomic status.
Rather than addressing the root of the problem or providing Indigenous families with the resources to heal and support their children, social workers were instructed to remove the children. They were removed not only from their families and communities but also from the region, the province and, sometimes, the country.
From this arose the infamous Sixties Scoop, as thousands of children were apprehended and placed in the homes of non-Indigenous families. Some of the adoptive families were abusive or had internalized racist ideas. Some were located in completely different regions of Canada or even in other countries, especially the United States, which created jurisdictional nightmares for children and parents seeking reunification.
Sometimes children were simply lost. Once apprehended, government agencies would not often give the parents any information regarding where or with whom their children were. Between 1951 and 1991, Indigenous and Inuit children were taken into care and placed with non-Indigenous parents, where they were not raised in accordance with their cultural traditions nor taught their traditional language.
Take the case of Lillian Semaganis, for instance. In 1973, she opened the newspaper and found the faces of her two young daughters being advertised for adoption. She had not been notified that they were even facing adoption. When they were adopted, it would be decades before she found one of them.
The fate of the other, a little girl named Cleo, only came to light after Lillian’s death. Cleo had been adopted out to a white family in New Jersey, far from her home in Little Pine, Saskatchewan. She had wanted nothing more than to go home to Little Pine to find her mother and her siblings, but she was not permitted to. Cleo’s family only discovered her fate this spring, 45 years later, in an investigation by CBC News.
The Sixties Scoop lawsuits claim cites the loss of cultural identity, psychological, emotional and physical abuse of those apprehended. The claim includes $750 million for the survivors, $50 million for an Indigenous healing foundation and $75 million for legal fees. I wonder how much the millennial scoop will cost future governments.
Nico Trocmé is the director of McGill University school of social work and principal researcher for the Canadian incidence study of reported child abuse and neglect, a national database that collects information on the characteristics of kids and families who come to child welfare’s attention. As reported in today’s Tyee, according to Trocmé, the main reason cited for taking Indigenous children away from their family and into government care is neglect. And neglect is another way, according to Trocmé, to describe poverty.
He says: “I’ve certainly never seen any evidence from any of the research to indicate that there is something endemic to First Nations families that would explain a higher rate of placement. It has much more to do with the high rates of poverty and the difficult social and economic circumstances they’re living in.” Yet the Canadian Human Rights Tribunal has ruled that the government has been systematically discriminating against 163,000 First Nations children by refusing to fund services for them at the same rates as non–First Nations children.
At the same time, children across Canada are apprehended from Indigenous families at an astonishing rate. Children are apprehended because their families can’t afford adequate housing, food and clothing for their families and are being put into homes where foster parents are given funds to provide for the children. Today women are having their babies taken away from them hours after birth in hospitals across this province, including the hospital a short drive from here in the Cowichan Valley.
Young parents are afraid to access government services because they worry that government policies will result in the apprehension of their children. Once a child is apprehended, reunification is an uphill battle. It can be hard to even find information about where the child is or how they are doing. To avoid “emotional and physical harm, sometimes Indigenous parents are not even allowed to attend hearings regarding their child’s placement.”
There is an urgency to act. Every day that a mother is separated from her child is excruciating. As one expert put it: “We are not impounding cars.” But that responsibility to act urgently cannot overshadow Indigenous authority. We need to do the hard work urgently. We need to meet with every nation in the province urgently. We need to learn from people in the system urgently. And we need to follow First Nation direction urgently.
We cannot misuse that urgency as the right to blunder ahead with the latest iteration of government telling First Nations families how they ought to exist. Authority implies consent, something else that has been systematically denied to Indigenous peoples. Indigenous parents did not consent to their children being placed in residential schools or adopted by non-Indigenous families.
Indigenous peoples have also been denied consent over their own bodies, as demonstrated by the prolific sexual abuse in residential schools and the ongoing cases of missing and murdered Indigenous women across this country. They are still being denied consent in terms of energy development and land use in their communities, as demonstrated by Trudeau’s assertion that the pipeline will go through.
The very, very least we could do — and this is far too little and far too late — is give Indigenous peoples true consent and authority over the welfare of their children. In the words of one Cowichan elder: “Why do Aboriginal people need to prove to the white people that we can raise our own kids?” That brings me to the proposed legislation, Bill 26, the Child, Family and Community Service Amendment Act.
To start, I have significant concerns about how this was rolled out. The consultation was far from acceptable. Were the people who this will impact involved in its creation? Do we fully understand how it will play out in communities? Was this drafted and then given to a few First Nations, a few days to read it, and then proceeded despite their concerns? From what has been communicated to me, that is what has happened.
When asked about the legislation being tabled, the First Nations summit of nations and tribal councils in B.C. said that the proposed changes were prepared unilaterally. In a Discourse Media article by Brielle Morgan, the First Nations summit raises the concerns that the bill’s proposed amendments “do not go far enough in addressing the principles of the UN declaration on the rights of Indigenous peoples and the Truth and Reconciliation Commission’s calls to action and the Indigenous peoples inherent right to self-determination and self-government.”
The summit wrote: “The amendments do not lay the foundation for the more significant shift required to change the child welfare conditions where the overrepresentation of First Nations children in care remains the most serious issue. The summit says it hopes that the government will realize that more profound improvements are needed.”
Why, for example, aren’t we seeing a clear commitment, in line with the Truth and Reconciliation calls to action, to monitor and assess neglect investigations, to provide adequate resources, to enable Indigenous communities and child welfare organizations to keep Indigenous families together, to ensure that social workers and others who conduct child welfare investigations are properly educated and trained about the history and impacts of residential school.
Deputy Speaker: Member, you are the designated speaker?
S. Furstenau: I am. Thank you, Mr. Speaker.
The Office of the Representative for Children and Youth, the office that has produced over 70 reports on child welfare in B.C., was consulted after the legislation was drawn up and given 24 hours to respond to the proposed changes — 24 hours. “It was a fait accompli,” the representative said. The delegated Aboriginal agencies, the agencies providing the services to Indigenous families across this province were not asked for input.
As quoted in a CBC interview, Mary Teegee, chair of the delegated Aboriginal agencies provincial forum expressed her concerns. “As a partner working with the province and also with the federal government, we were not consulted. There are a lot of issues and concerns, and we haven’t had the time to digest what those are.” Teegee also pointed out in another interview: “We get our mandate from chiefs, so we’re representing about 121 chiefs in child and family services, as per the band council resolutions, so by not talking to us, you’re missing that whole segment. We are the ones who provide the actual services in communities.”
Again, the urgency of a crisis should not be misused as a licence to skip the hard work that needs to be done in this province. This bill may be an improvement on the abysmal status quo, but it is built within the existing, problematic MCFD framework and far from self-determination. We will not change the course of history if we continue to follow the same policy-making format.
How these amendments came to be is as important as the legislation, and this process has not lived up to the expectations that many had of this government. It may give the ministry more tools for how they can involve First Nations in cases involving their children, but it will not, as drafted, do anything preventative to actually reduce the number of Indigenous children in care. It will not provide support to families before they get to that crisis point.
My greatest fear is that it will not make a fundamental difference in the lives of mothers pulled into the system. My constituency staff and I witness this reality in Cowichan Valley. Family after family comes into our office sharing deeply troubling stories about their interactions with MCFD, about families disconnected, children separated from their parents and from each other and from their culture. The common thread is that they’re Indigenous. Many have come from generations of families raised in foster care, and many have parents and grandparents who are survivors of residential school.
The solution to this crisis is both simple and complex. Simply, Indigenous communities need autonomy in child wellness. They are able to raise their own children within their own culture and can support each other through difficult times. Their resiliency is unmatched. Our legislation interferes with that autonomy.
Bill 26 will do more to involve communities in the MCFD framework, but it does not give families more autonomy. How do we begin to address the humanitarian crisis with the sense of urgency that it deserves? We start by establishing the terms upon which legislative changes will be made in the future, terms that are established by First Nations leadership and community members and that come from a rights-based lens.
Next, any legislative amendments must be made after broad and deep consultation with First Nations leadership and community members, especially those who are impacted by the legislation — mothers, fathers, children, youth, parents and grandparents.
Keeping a mother who may have her own unresolved trauma together with her infant means taking different steps in child wellness than the universally applied approach we take today. Recognizing that the bond between mother and child, if nurtured, can be part of a healing journey, while breaking that bond perpetuates the same tragic cycle, must be part of this conversation.
Because of the lack of involvement and guidance from a broad spectrum of the people it will impact, I am having a challenging time with this bill. How is it — after all these years, all these apologies, all these admissions of systemic racism, abuse, discrimination — policy-makers are still trying to dictate how to deal with problems that have been created by these systems? Have we not learned from the countless mistakes?
How have we not implemented every recommendation from Chief Ed John’s report, all five of the recommendations from the Truth and Reconciliation’s Calls to Action and the hundreds of recommendations from the Representative for Children and Youth? How have we not stepped aside, making room and supporting First Nations leadership with funding? The people who have lived with these problems are best equipped to begin to address them. That means handing over the power.
I went to the theatre last week to watch Indian Horse. The movie, based on the book by Richard Wagamese, tells the story of a young boy apprehended into a residential school in the 1970s. The main character, Saul Indian Horse, is given the nickname Bambi by his hockey team. Like Bambi, Saul shows his strength, his resilience and his courage by the end of his story.
Indian Horse tells a story of how the state sought to destroy a people by targeting their culture, children, language and bodies. I tried to imagine what I would have done if I was an elected official during that time.
I hope I would have stood up and said no. I hope I would have seen clearly that the ways First Nations children were being treated were leading to their demise and death. I hope I would have believed them when they said that they were being sexually, physically and emotionally abused in the system. I hope I would have noticed that the children who survived the system took that trauma home with them and that they were finding addiction and suicide at higher rates than anyone else. I hope I would have recognized that none of it was in the best interests of the child. I hope I would have been brave enough to say: “No more. Not again.”
Hindsight makes everything clearer, but history holds lessons that we all need to hear. It breaks my heart that we as a country have repeatedly failed to learn these lessons and that in 2018 the state of Indigenous child welfare is deemed by a federal minister to be “a humanitarian crisis.”
Now we have a bill that is intended to help right some of these wrongs, but it is built within the system that perpetuates the problems. It was drafted without substantial involvement of a wide number of First Nations families or leaders. There are some potentially positive aspects. However, as has been pointed out, the analysis of the impacts on the ground is lacking.
Section 2, the addition of the principle that Indigenous communities share the responsibility of the upbringing of Indigenous children, seems a step in the right direction. But where is the funding? Is there a danger of off-loading to communities without adequate support? As the Representative for Children and Youth pointed out, and what I have witnessed in the application of the act as it stands: “Intention and words are one thing, but the implementation into practice is something completely different.”
I come back to section 2 of the act as it stands right now, which states: “…(e) kinship ties and a child’s attachment to the extended family should be preserved if possible; (f) the cultural identity of aboriginal children should be preserved.” And: “…aboriginal people should be involved in the planning and delivery of services to aboriginal families and their children.”
The intentions are written. But how are government staff, who make decisions about families and children currently being held to account to uphold these guiding principles? How are they being held to account to uphold to existing service standards? What happens when they don’t? Where is MCFD’s commitment to ensuring that the current guidelines, much less the new ones proposed, will be upheld? What are the ramifications if they are not?
Let me read from MCFD’s service delivery standards document, particularly standard 2, children and families from Aboriginal communities. It states:
“To preserve and promote a child’s Aboriginal heritage and connection to his or her Aboriginal community, the following must be involved in all significant decisions when determining the child’s Aboriginal connections, heritage and descent and when assessing, planning and providing services for the child: the child, the child’s family, the child’s extended family, the child’s Aboriginal community, the identified delegated agency and any other community agencies involved with the child and family, and any significant people identified by the child and his or her family or Aboriginal community.”
These standards exist today. I ask again: how is MCFD holding itself to account when these standards are not met, when the guiding principles of the legislation are ignored? Where is the balance between determining when a child needs protection and when the child can be supported in his home and in the community? How will social workers determine this?
Section 92 of the proposed legislation gives the ability for the director to step aside and for a nation to take control of a file. The precondition of this is that the nation has its own legislation. How are nations going to get the support to create and implement that legislation? How many nations in B.C. currently have this legislation in place? What if a parent does not want the participation of a nation?
I have asked many mothers about their idea of information being shared without their consent, and many have been deeply troubled by this. “I don’t have a good relationship with my band,” said one. “I don’t want them involved.” What about two parents from different nations or a child from one band and a parent from another? How does the director determine which nation is informed or engaged?
Where is the federal government in this equation? Where is the commitment from the province and the federal government to work together with First Nations? What about the current federal funding levels that are predicated on apprehension? How does this legislation provide more support to families, more support to nations, create more emphasis on preservation and support of families?
There are so many unanswered questions, not just from me but from the people who are on the front lines of this crisis every day. There needs to be a lesson in this, and I hope that this government takes this seriously.
The work, moving forward, must start with and be led by Indigenous communities. The work, moving forward, must start with and be led by the people living the experience and suffering the consequences of a system that was designed to colonize and that continues to operate from a paternalistic, authoritarian position.
I will vote to support this bill because it is looking in the right direction, but I do not do so lightly, knowing its creation was not led by the people it will impact, nor were they given sufficient opportunity to comment. I will vote to support this bill with a solemn promise to stand up and say no — no more creating or changing legislation that impacts First Nations communities or families without following their lead.
J. Thornthwaite: I’m happy to stand and talk about Bill 26, Child, Family and Community Service Amendment Act, 2018. I’m not going to repeat what the member for Chilliwack-Kent said in his remarks, but if anyone is interested in a holistic perspective, I would encourage people to check out his remarks.
The context of the bill is that the Ed John report was delivered in November of 2016 and greeted positively by the B.C. Liberal government at the time.
The 2017 B.C. Liberal platform also said: “Recognized as a key priority, the government asked Grand Chief Ed John to do a comprehensive review of this area, and his report has provided guidance on the path forward. The government has already started implementing 40 of the 85 recommendations.”
This bill builds on the strong foundations laid by our government in fulfillment of several more of Ed John’s recommendations, most notably No. 41, that:
“The province consider the following amendments to the Child Family and Community Service Amendment Act in order to support improved permanency planning for Indigenous children and youth: strengthening of section 70 to include mandatory permanency planning for all children in care; including a provision to ensure that for Indigenous children, permanency plans are jointly developed by each child’s family and community, including elders, cultural leaders, elected leaders and matriarchs; and providing a provision requiring independent review of permanency plans or an annual basis.”
That’s why I was surprised to see a letter from the First Nations Leadership Council, dated February 7, 2018, to the minister called “First Nations Early Learning and Child Care.” This is signed by the First Nations Leadership Council, which encompasses…. I would like to mention who they are: on behalf of the First Nations Summit, Grand Chief Edward John, Robert Phillips, Cheryl Casimer; on behalf of the Union of B.C. Indian Chiefs, Grand Chief Stewart Phillip, Chief Bob Chamberlin and Kúkpi7 Judy Wilson; and on behalf of the B.C. Assembly of First Nations, Regional Chief Terry Teegee.
I’m not going to read the whole letter, but I do want to mention, on the record, that this is what a portion of the letter said:
“In effect, the province of B.C.’s action retroactively pre-empt the process mandated by the BCAFN, FNS and UBCIC” — i.e., the First Nations Leadership Council — “largely on the pretext of delivering much-needed child care funding supports to Indigenous communities as soon as possible. Although some of the province’s aims are to be welcomed, in addition to long-awaited new investments in First Nations early learning and child care, the necessity of the new funding supports must not be a way to sidestep legitimate First Nations development — and indeed that these not be mutually exclusive. Funding must not be used to divide First Nations or undercut First Nations leadership and jurisdiction. We can, and should, be better partners in the era of implementing the UN declaration.”
They go on to say:
“A First Nations regional early learning childhood framework pre-implementation process is underway that will include a facilitated meeting of First Nations stakeholders involved in the policy and service delivery in winter 2018.”
Likewise, then, because that letter was dated in February, the next document that I’ve got here is the First Nation’s Leadership Council’s statement dated April 25, 2018, so just last month. Again, they mention:
“We are concerned that the amendments are technical and operational and do not go far enough in addressing the principles of the UN declaration on the rights of Indigenous peoples, the Truth and Reconciliation Commission calls to action and our inherent right to self-determination and self-government.
“The amendments do not lay the foundation for the more significant shift required to change the child welfare conditions where the overrepresentation of First Nations children in care remains the most serious issue.”Leadership on child welfare reform is needed at all levels of government, and we can only hope that…more profound improvements are needed and address some of the concerns we have voiced, and which went unheeded.”
I would urge the government to listen more to the First Nations Leadership Council, because obviously, as of April 25, they still were not satisfied. Listen to their call to action, because the amendments do not lay the foundations they have requested.
I wanted to just put that on the record. Although our side will be voting for this bill, because we do support the premise, certainly it is evident from the First Nations Leadership Council that more work needs to be done.
Deputy Speaker: Seeing no further speakers, the minister to conclude the debate.
Hon. K. Conroy: I’d like to thank the opposition members for their comments and just make a few of my own in closing this debate. I want to just reiterate some of the comments made. Also, I’d like to talk about a visit I had to Splatsin in Invermere a few weeks ago. I attended a water ceremony at the headwaters of the Columbia River with the Splatsin Nation. After the ceremony, a very moving ceremony, we had an opportunity to talk about the legislation and the changes.
I did hear from Kúkpi7 Christian, Chief Wayne Christian, who is the Shuswap tribal council leader. He talked about what these changes mean to his nation — the fact that his community has spent 38 years trying to work towards jurisdiction of child welfare within their nation. He said: “Finally, this will be able to happen with this legislation that has been tabled.” He said that this opens the door to stopping the flow of children into a system that he said was a very dark system. It did not work for First Nations governments and did not work for First Nations children.
He also talked about Grand Chief Ed John’s report. The members are right that this legislation stems from the recommendations from Grand Chief Ed John’s report, a report that had extensive consultation with First Nations leadership throughout the province. Kúkpi7 Christian said: “Honestly, it’s one of the first times I’ve seen a government actually listen to a report. I’ll be honest. I’ve been involved for 40-plus years, and I have not seen governments actually listen to actual reports that are commissioned, especially an Indigenous voice like Grand Chief Ed John’s.”
We are taking that very seriously. We are making sure that we are listening to that, looking at the recommendations from Grand Chief Ed John, as well as discussions that we’ve had with other First Nations leaders across the province who have said, “We need this legislation urgently in order to move forward on jurisdiction of child welfare,” but also on ensuring that we can lower the number. We can stop the issue of Indigenous children being taken into care. We can work with families, provide families the support they need prior to a child being taken into care, prior to…. Once concerns are raised, work with the community, work with the families.
It’s very much a part of UNDRIP that says that we have to recognize a child’s right to belong to their culture, belong to their community, to learn their traditions. That is very much part of UNDRIP, and that is part of this legislation.
I think that it’s important to also acknowledge that…. We talked to many parties about the bill, including the independent Representative for Children and Youth, and we appreciate that this is a first step, a very important first step.
I do want to extend my appreciation, my thanks, to the Representative for Children and Youth, who I speak with on a regular basis. He was one of the first meetings that I held when I became minister, and he is an extremely strong advocate for Indigenous children and families in this province. We are going to miss him. His voice on behalf of Indigenous children will be a great benefit to the province of New Brunswick. I say our loss but their gain. He has been an excellent advocate on their behalf.
It was also him that invited me to one of my first events I attended as a minister, called Ignite Your Spirit in the Cowichan Valley. It was an incredibly emotional day. We heard…. It was a healing circle from a number of Indigenous children in care who got together to talk about different issues. One young woman stood there and talked about the difficulties her mother had, and she was very emotional. She actually said that she thanked the ministry for being involved in her life and the fact that she had been taken into care. But she also looked directly at me and said: “Please help my mother so that my siblings aren’t taken into care, because that has to be your goal.”
It was an incredibly moving, emotional experience, and it resonated with me. She’s right. We do need to ensure that we provide those supports so that further generations aren’t taken into care.
It was also in the Shuswap where I met an elder. I heard from an elder. She pointed out her daughter and her granddaughter. She said that she’d been taken into care by a social worker. It was one of the first things that the social worker did when she got her new job, and many years later, she said, the same social worker took her daughter into care.
She said she will do everything, and her daughter was doing everything, to make sure that her granddaughter, her daughter’s daughter, was not taken into care, that she had the love and support she needed and that she was able to be raised in her culture and her community and learn her traditions. She just said how critically important that was that she did do that.
She thanked us. She thanked the ministry for making sure that with this legislation, we were going to be able to bring in the supports to make sure that future kids can’t come into care. What she said was that the root of all of this was residential schools.
For anybody to think that residential schools don’t have an effect on children today…. They need to relook at history. They need to relook at what’s happened. The residential school has been very much an impact on children today, and we need to take that into consideration. It’s very much a part of what our guiding principles are, which the member for Chilliwack-Kent read into the House. It’s very much a consideration around residential schools. It’s very much…. Actually, one of the first five calls to action in the Truth and Reconciliation Commission directly relates to child welfare.
We have taken into consideration the reports from the Representative for Children and Youth’s office, those very excellent reports that have been written since that position was brought into this Legislature in 2006 as an independent body. The reports, the recommendations from the reports, we were using when we developed this legislation….
I want to say that we are looking forward to working with the representative, with the office, with the delegated Aboriginal agencies, with First Nations. I know that the First Nations Leadership Council had some concerns. They also said they welcome the changes. I know that the delegated agencies said the same thing. I know that Mary Teegee said she also welcomed the changes. They recognize that the Ministry of Indigenous Relations and Reconciliation will be leading the charge, will be leading the mandate to ensure that we are implementing UNDRIP, that we are implementing the truth and reconciliation calls to action right across the board of our government, to every ministry, so I want to make sure that that’s recognized.
For the member from Cowichan, I’m hoping that the changes will make it easier. The solutions that she’s talked about, the anguish that she expressed — these changes will be the start of ensuring that we can move in that direction. We are working with these changes to make sure that we have tools in place for social workers to make sure they can work with families prior to coming into care, work with the communities, work with ensuring that cultures and tradition are very much a part of the children’s lives.
This is a directive from myself as a minister. This is a directive from senior management staff that this will happen. The bottom line is that we have to ensure that fewer Indigenous children come into care. This is the very first step, an urgent step that was requested by many First Nations, and this is what we are working towards.
Mr. Speaker, I move second reading.
Motion approved.
Hon. K. Conroy: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting after today.
Bill 26, Child, Family and Community Service Amendment Act, 2018, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. M. Farnworth: I call second reading of Bill 30, Cannabis Control and Licensing Act.
BILL 30 — CANNABIS CONTROL
AND LICENSING
ACT
Hon. M. Farnworth: I move that the bill now be read a second time.
It’s my pleasure to rise today to speak about Bill 30, the Cannabis Control and Licensing Act. The federal government’s decision to legalize non-medical cannabis represents a significant change in public policy and one that will result in substantial and complex new responsibilities for all provinces, including British Columbia.
The Cannabis Control and Licensing Act is one of three bills that represent B.C.’s legislative response to this issue. It establishes the provincial regulatory regime for the possession, the sale, the supply and the production of non-medical cannabis, and it is a major milestone on the path to legalization.
This bill reflects the extensive feedback we have received from stakeholders, Indigenous and local governments and tens of thousands of British Columbians. Indeed, I’d be remiss if I didn’t mention that when the initial consultation was launched on the website back in September, we received over 48,000 submissions, a pretty significant number of responses from people in this province.
This bill supports our government’s goals of prioritizing the health and safety of British Columbians, protecting children and youth, reducing crime and the illegal market and supporting economic development opportunities in our province. The bill establishes provincial controls over the sales of non-medical cannabis, and it establishes a licensing scheme for private retailers similar to what is currently in place for liquor.
To prevent organized crime from infiltrating the legal industry, it will require all retail licence applicants to undergo a thorough background check. And to support local decision-making about what cannabis retail looks like at the community level, it requires licensed applicants to have the support of their local or Indigenous government before a retail licence can be issued.
This bill also provides authority to set training requirements. This will ensure that those working in retail stores are knowledgable about the product, its risks and the laws with which they must comply. It also provides for a worker registration scheme which will include a background check. Worker registration or licensing requirements are in place in many jurisdictions and are a valuable tool to promote compliance with the law.
This bill also places restrictions on individuals with respect to possession, use and cultivation of cannabis. It prohibits possession of cannabis by minors — that is, persons who are under age of 19. Minors will not be able to go into a cannabis store or work in a cannabis business, and it will be an offence to give or sell cannabis to a minor. The bill’s age-related prohibitions are similar to the existing rules for liquor, and they support our goal of protecting children and youth.
The bill also establishes and restricts possession of cannabis by adults, in line with federal cannabis legislation. It imposes a 30-gram limit on the public possession of dried cannabis. It also provides for a maximum possession limit in private places, with the amount to be prescribed by regulation.
With Bill C-45, the federal government will allow Canadians to grow four cannabis plants at home for personal use. This bill adopts that four-plant limit.
I just want to remind members of this House that it is the federal government, with Bill C-45, that is establishing the limit, the maximum limit, of plants that an individual may grow at home. The number is four. It is not five. It is not six. It is four. We, as a province, could make it zero. We could make it one. We could make it two. We could make it three, or we could make it four. But we cannot make it more than that. We have chosen to go with the limit that the federal government has set in place.
The legislation also requires that plants be grown at home and not be visible from a public place off the property.
The legislation also sets restrictions on the public use of cannabis. It prohibits cannabis smoking and vaping in all the places where tobacco smoking and vaping are prohibited, as well as places where children commonly gather, such as playgrounds, skate parks and sport fields. In addition, it prohibits all cannabis consumption on school property and in vehicles.
During our public and stakeholder consultation, we heard from both landlords and tenants with concerns about cannabis smoking and cultivation in rental housing, particularly multi-unit housing. To address those concerns, the bill amends the Residential Tenancy Act to deem all existing tenancy agreements to include a prohibition on cannabis cultivation. Further, where an existing lease prohibits smoking, it will be deemed to also prohibit cannabis smoking.
Turning to compliance and enforcement, a strong enforcement regime will be absolutely critical in reducing crime and the illegal market. To that end, this bill establishes a range of cannabis-related provincial offences and an extensive compliance and enforcement regime.
In particular, it includes provisions that will support the establishment of a provincial cannabis safety unit. This unit will be tasked with dealing with illegal dispensaries and other illegal sellers across the province. It will be able to seize illegal cannabis and to impose financial penalties on the seller in proportion to the amount of cannabis seized.
In addition, the bill creates provincial offences for which illegal sellers can be prosecuted.
Finally, the bill provides for exemptions for authorized users of medical cannabis where required to comply with the Canadian Charter of Rights and Freedoms and human rights legislation.
The Cannabis Control and Licensing Act is an important step in the transition to legalization, but it is only a first step. The federal government’s decision to legalize non-medical cannabis is a major shift in public policy. We fully expect that there will need to be — required to make — adjustments in the years to come. That said, we are confident that this bill provides a solid foundation for the safe implementation of legal cannabis in British Columbia.
M. Morris: Interesting times we live in. This is a very interesting bill that the minister has been stickhandling his way through, based on a lack of information that he’s getting from the federal government, because that bill is still before the House. I believe it’s tied up in the Senate at this particular time. We understand the pressure that government is under, waiting for the final product to be released from the House of Commons, if and whenever it happens. Sometime later this summer, I’m sure.
Our concern is still — as we’ve stated many, many times — surrounding the health of British Columbians, particularly our youth. It’s surrounding the public safety aspect of adding another product, I suppose, or another intoxicant to the mix, particularly when it comes to impaired driving and the complications and the ramifications that it has for that.
The other real aspect that we’re concerned about, as well, is mitigating the involvement of organized crime. It would be nice if we could eliminate them altogether. But the individuals that are out there making a dollar in the black market will do anything they can. They’ve got bigger budgets than we do. For everything that we do, they’ll find some counterweight or some way to counter what we do.
I’m going to start with one of the first concerns that we have with the legislation and with the legalization of cannabis — period — across the country, and that’s the age limit. I know the federal government has come out and said “18,” and they’ve given some leeway to the provincial jurisdictions to come up with something that works for them. I know this legislation suggests the age of 19, which is the age of majority. It’s the drinking age in British Columbia.
It’s based on: “If you’re old enough to drink, then I guess you’re old enough to smoke marijuana. You’re old enough vote. Then I guess you’re old enough to smoke marijuana.” But there are some health implications with that as well, and I want to talk about a couple of them here.
One was submitted by the National Academies of Sciences, Engineering and Medicine, off their website. They state that there is substantial evidence of a statistical association between cannabis use and the development of schizophrenia and or other psychosis, with the highest risk among most frequent users.
That’s a concern. We have developing minds, and we have to be very cognizant of that, because as government, we’re certifying this product. We’re putting it on the shelf and saying: “It’s safe to use.” You have to be mindful of a few issues there.
Health Canada has on their website…. I took a couple of documents off their website. They talk mental health effects. It says: “In some people, cannabis use increases the risk of developing mental illnesses like psychosis or schizophrenia, especially in those who start using cannabis at a young age, use cannabis frequently — daily or almost every day — and have a personal or family history of psychosis and/or schizophrenia as well.” That will heighten their risks there.
For the effects on youth, Heath Canada goes on to say that “Cannabis use that begins early in adolescence, that is frequent and continues over time, has been associated with increased risk of harm.”
I go back to some of my own personal experiences in this. Years ago I had a brother-in-law who smoked a lot of dope when he was 13, 14, 15, 16 years old. By the time he was 17 or 18, he was diagnosed with drug-induced schizophrenia. They attributed it to the amount of marijuana that he had smoked as a very young teenager. Unfortunately….
I got along very well with this individual. He was a patient at Riverview for most of his adult life, and he passed away in Riverview, into his 50s, from cancer. It was associated with lung cancer. He was a chain smoker as well. But he had become addicted to marijuana, and he smoked marijuana his entire life and suffered from some very serious psychosis as a result of that.
Personally, I’ve seen it. I’ve seen it as a police officer. I’ve seen it in many of the individuals that I’ve dealt with over the many, many years that I was an enforcement officer. I know many other police officers have said the same thing.
The Doctors of B.C. have also talked about the risks associated with young people, and they have recommended that we consider a higher age limit. Other than 19, they’re suggesting perhaps 21, or even older. The mind is developing up until you’re about 25, 26 or 27 in most folks. Maybe some of our minds are developing all the time.
The health issue that we see with this, I think, is paramount. We have to pay attention to that and do everything that we can to safeguard our youth. They are one of the most treasured things that we have in our society here, our youth, and we have to make sure that they’re given every opportunity to get that start in life that makes them prosper.
The other part of this is there’s secondhand smoke. It’s not the same as…. You’re driving down the road. You’re the designated driver so you haven’t been drinking, but you’ve got people sitting in the back seat and they’re toking up. That smoke is filtering out into the front of the car, and the driver becomes intoxicated. Any other individual in the vehicle could suffer the harms of marijuana smoke as well.
Smoking in provincial parks. I’ll talk a little bit about that later. Children frequent those kinds of areas — another thing that we have to be very cognizant of.
The access that is laid out in the act, the retail distribution, where the province talks about where these dispensaries or where these retail outlets will be set up. There’s really no mention in there when it comes to setting up in proximity to schools and playgrounds. I believe they leave it, perhaps, to regulation or to the municipalities. Again, I think a strong statement has to be made by the provincial government, saying that we will not tolerate dispensaries or retail outlets in close proximity to schools — and provide that direction to municipal governments so they take that into consideration in their zoning. Again, it’s just another layer to ensure that we keep our young folks safe.
The other concern that I have perhaps stems from my years as a police officer in enforcement. I look at the number of illegal dispensaries that we have in British Columbia. I know the minister shares a lot of these concerns as well.
They have proliferated in many of our towns and cities across the province here. In my mind, and everybody else’s mind, those are drug traffickers. They have assumed that they have some right because they’ve got a licence from a local government to set up a dispensary within their community. But they’re drug traffickers. We need to be mindful of that as we move forward.
I hope the government comes out strong. I haven’t seen it in this legislation yet. I think the government needs to take a very strong stance immediately and advise these illegal dispensaries and the individuals that are involved in the illegal grow ops that have been providing these dispensaries with the product, to say: “Listen, by the time this is proclaimed and comes into effect, your product is going to be illegal. And your dispensary is going to be illegal. You have to shut it down.”
Are we going to tolerate any illegal product out there? This legislation is fairly firm on that, as is the federal legislation. This will weaken the legislation if we turn a blind eye to it and ignore it, and it’ll basically make this legislation moot if we don’t take a strong stance right from the beginning.
Organized crime. Again, take it from my enforcement days. I still associate with a lot of folks that are out there policing in the province and right across the country. Organized crime still plays a very important role in cannabis production and distribution in British Columbia and right across the country. Our goal is to ensure that we take that away, take those opportunities away from them. So how are we going to do that?
The legislation is relatively soft on this, from my perspective, when it comes to individuals that are currently involved in the illegal retail sales of cannabis in the province or the illegal growing of a product in our province to be considered to apply for a licence under this new legislation to open up a retail outlet somewhere in British Columbia.
I’m a firm believer that past behaviour is a good indicator of future behaviour in an individual. If that person has shown no remorse or no consideration for breaking the existing laws by trafficking in cannabis up to this particular point in time, then to expect that they are going to automatically assume that they’re going to get a licence under this new system I think is wrong.
Perhaps a cooling-off period. Maybe we should be looking at a suggestion here — and I’ll be introducing some amendments as we go through — that perhaps we need to look at a two-, three-, four- or five-year period of time so the individuals that have previously been involved in these illegal drug trafficking activities can demonstrate that they are adhering to the law. If they’re still interested after a period of time, then perhaps they can be considered for applications to open up a retail outlet.
The amount of cannabis that is currently out there I think is going to be problematic for us. There’s a lot, in my mind, unless things have changed immensely, but I don’t they have. I think production has increased since I’ve been involved in it.
I think there needs to be a strong statement made through this legislation or through the minister. This could be proclaimed as early as July or August or September or whatever the date is in there, and as of that date, then the police have been instructed to take the strict enforcement action of seizing all illegal cannabis that doesn’t comply with the federal legislation in the distribution or this provincial legislation that’s being proposed right now before the House — seize it. Anybody that is trafficking or in possession of cannabis will be facing prosecution or a ticket. A lot of these offences will be ticketable offences under this, and I think that they should be ticketed. We need to start with a very robust position with this particular legislation.
The other aspect of this that draws some confusion is the possession limits. The minister, in his opening comments, was talking about it and said that it was limits that were set by the federal government. So 30 grams of dried marijuana you can have in your possession. But then they talk about growing four plants in your house, and there will be some regulation developed as we move forward with this, I’m sure. The legislation alludes to that. It will talk about how much four plants would render you to be legally in possession of the marijuana in your house.
I’ve come across some grow ops and some plants that produced some pretty big buds and a lot of marijuana, and the production methods sometimes get called into question. There are substances in that marijuana that could cause health problems at the end of the day, but the fact is that you’re allowed 30 grams of dried marijuana, and you can grow four plants that could produce who knows what at the end of the day.
I know that the federal government has left this open to the province. They have allowed the province, as the minister has already stated, that it could be one plant. It could be zero plants. It could be two or three or up to a maximum of four plants.
I know there are a couple of jurisdictions that have looked at this and decided, “We don’t want any plants growing in our homes, in our communities,” because of the safety aspect and because of a number of the other issues that this presents, particularly from an enforcement perspective. It’s just about impossible to provide any level of enforcement of that particular part of the legislation.
I’d love to see a suggestion that we don’t allow any homegrown product in the province here, not only from the enforcement aspect of it but also from the health aspect of it too. I go back to Health Canada’s website. They talked about the risks of illegal cannabis. One of their pages there says:
“There may be other health and safety risks associated with cannabis obtained illegally. For example, the THC potency of illegal cannabis is often unknown, so you could end up using a stronger product than expected. This could heighten or prolong effects such as confusion or anxiety.
“The quality and purity of illegal cannabis cannot be guaranteed and is frequently mixed with or contains pesticides, other drugs, heavy metals, moulds or fungi, or other contaminants.”
Here we are. We’re certifying a product to put on our shelves in British Columbia to sell to British Columbians and saying that everything is safe for consumption, yet we are allowing people to grow it in their homes. There’s no control over what goes into the growing of the marijuana in their homes. I think that it’s problematic and that we need to take a close look at it.
There’s another part of the legislation here on restricting public consumption of inhaled product and public consumption of non-inhaled product. Anywhere where smoking is prohibited in the province, smoking of marijuana will be prohibited as well. There’s nothing, though, that says you can’t eat a marijuana brownie or any of the edible products that are made from cannabis in a public place, which leads eventually to public intoxication.
Under the Liquor Control and Licensing Act, which this is fashioned after to a large degree, the police have the authority to arrest somebody for being drunk in a public place. They bring them into a detox centre, or in the smaller communities, they’ll put them in a cell until they’re sober enough to look after themselves and they’re not a danger to themselves or others.
There’s been a lot of controversy over the level of THC and the strength of some of the edible products, people overdosing on edible products. They take their first two or three bites. Nothing happens, so they continue eating it. The next thing you know they’re having a medical crisis. I think we need to be very wary of that and ensure that there’s some strength in the legislation that addresses the public consumption of even the non-inhaled forms of cannabis in the province here.
Our provincial parks are world renowned. They’re visited by families from around the world. We have some great provincial parks. Some of them are quite busy, particularly the ones that are closer to the larger centres that we have down here, in comparison to some of the more remote areas that we have. I read somewhere that they’ll look at, perhaps, some prescriptive measures, through regulation, that will deal with the consumption of marijuana in provincial parks.
Again, here we have facilities that are used by people from around the world. They bring their children of all ages to play and run freely through these parks and to enjoy the facilities, everything they have to offer. If there are no controls in these areas to prevent people from smoking marijuana in provincial parks, then, of course, that means that youth and children and people that don’t particularly like the smell would become offended at that. It poses not only a nuisance but also a health risk to the young people that are using the park. There need to be some strong statements within the legislation that will address that.
Enforcement. The legislation talks about a director of cannabis enforcement. So a brand-new arm — more administration, more enforcement for government to get involved in, for municipalities to get involved in.
[L. Reid in the chair.]
Again, I know that the federal government has offered some financial relief to the provinces to address the added administration and enforcement costs of this new legislation for the legalization of cannabis, but I think it’s woefully inadequate. Just look at the problems — trying to discern between the illegal and the legal cannabis once this act comes into effect; how a police officer, enforcement people or labs are trying to analyze the marijuana that’s out there to ensure that it come comes from a legitimate, federally licensed source, or not; and the amount of time and energy that it’s going to take, not only enforcement resources but the scientific resources and the court resources, everybody involved in that kind of a process.
I think that’s going to cause some pretty astronomical issues for time and costs. It’s not a matter of…. The police departments that we have — mostly, pretty much, right across this great province of ours — are already stretched to the max. They’re fully engaged in investigations and enforcement activities, without the added burden of the Cannabis Control Act. We add this new burden on police departments in Vancouver, in Surrey and in Prince George, no matter where they are, and it’s taking officers away from cases they’re already working on.
Drug-impaired driving. We talked about that the other day in this House — amendments to the Motor Vehicle Act to allow the immediate roadside prohibition program and the 90-day suspension of licences for people that are caught with THC levels in their blood. There’s a lot of work behind that. That legislation is still before the Senate as well. That legislation is quite fluid as we move forward, as this legislation will be as well.
The impact, outside of what I’ve just stated, trying to discern between the illegal and the legal marijuana and the dispensaries in British Columbia…. The impaired driving part is also going to swallow up resources and cause some major headaches for police departments and municipalities as they deal with trying to address the resource issues surrounding that.
In addition to that — I read it somewhere in the legislation — we have workplace incidents. A friend of mine was a logging contractor in the interior of the province. On a regular basis, he was talking to some of the operators of the heavy equipment and saying: “You can’t smoke dope while you’re operating that machine. No, you can’t smoke over the lunch hour.”
I think there is going to be emphasis placed on employers, if there’s some incident that takes place where somebody gets hurt. The employer has to show due diligence in training his employees to ensure they all know that they’re not supposed to smoke marijuana before they operate machinery or while they’re working for that particular company. That’s also going to cause some stresses on existing resources as well.
The illegal dispensaries that we’ve had in this province have been operating under the auspices of…. They’re medical dispensaries. They’re dispensing “medical marijuana.” That term, to me, has been watered down some. The federal government is going to be looking after medical marijuana. They’re going to continue to ensure all the licences and permits and registration of the people that are permitted to use marijuana. They maintain that registry for police officers to have access to in the province.
I also think that the province needs to put pressure on the federal government when it comes to medical marijuana, medical cannabis, and say: “Listen. If this is going to be deemed to be medical, why does it not fall under the common drug review?”
Why is it not subject to the same rigour of testing that all other medications in this province and in this country have to go through in order to be declared a substance that Health Canada approves — that the common drug review says, “Yes, this is a therapeutic, and it looks after these kinds of conditions”; that it falls under the purview of the Drug Benefit Council in British Columbia to make sure it fits the needs, whether it’s covered under PharmaCare or whether it’s covered under the various insurance programs? But it’s been anecdotal, more than anything else.
There is no real evidence. Health Canada has a lot of information on it. There’s a lot of information on the website with the Canadian Medical Association. But we need to increase the rigour with which cannabis is looked at to make sure that the…. If it’s genuinely medical, then it should be prescribed through a pharmacy or some other organization.
I’d like to adjourn debate and reserve my right to speak again when we come back.
M. Morris moved adjournment of debate.
Motion approved.
Report and
Third Reading of Bills
BILL 25 — REAL ESTATE DEVELOPMENT
MARKETING AMENDMENT
ACT, 2018
Bill 25, Real Estate Development Marketing Amendment Act, 2018, reported complete without amendment, read a third time and passed.
Hon. M. Farnworth: I call Committee of the Whole, Bill 23, Local Government Statutes Amendment Act, 2018, in Committee C. In this chamber, I call continued second reading debate on Bill 30.
Second Reading of Bills
BILL 30 — CANNABIS CONTROL
AND
LICENSING ACT
(continued)
M. Morris: To carry on, I know the minister shares the concerns here. If we truly have medical marijuana, then it should be truly treated as a medicinal substance, administered through a pharmacy or some other legitimate medical dispensary. We have this bill, and the federal legislation is legalizing recreational cannabis in British Columbia. That should provide the opportunity for people so inclined.
I think this is a good opportunity to separate the medical part from the recreational use of marijuana, just so that we’re clear on the law. It’s been very muddled, this past number of years, with our illegal dispensaries that we have set up in many of the communities we have here.
I won’t carry on too much longer, but I do want to say that, in our view, there are some weaknesses in this legislation that need to be addressed. I’m going to be introducing some amendments to try and address those weaknesses that we have here and see where it takes us. We have a number of British Columbians who are vulnerable to the legalization of cannabis, and we want to make sure that they’re protected in every way that we can.
With that, I’ll conclude my remarks.
A. Olsen: It’s an honour to stand today and to speak to Bill 30, the Cannabis Control Act. It is a time, I think, in this country, as provinces across the country do work to comply with the federal decision to legalize the recreational consumption of cannabis….
I think for some in this country, it’s been a long time in coming. For others, I think we’ve heard other perspectives of still quite a bit of concern around this particular product. I would say that the feedback that I’ve received from…. People who’ve gone through the bills have said that there’s some tentative and general support for it, that the government has taken a fair approach to it. There are definitely some concerns to the approach that the provincial government is taking and, certainly, some concerns to the approach that the federal government is taking.
I think we see concerns on both sides. So that might suggest that the minister has done a good job in striking balance as we are creating a piece of legislation, a framework, from the ground up. You get criticism on both sides. Those that think you should go further are criticizing you, and those that don’t think you should go that far are also giving you criticism. Well, you’ve struck a nice balance right down the middle.
That has been the feedback that I’ve received so far. Of course, I’ve also received the feedback that if in fact we don’t make amendments to this bill right now, then the entire world is going to come down around us, and that that will be the end of things. Of course, I think we know that that’s not entirely the case. I think, as was suggested the other day, that there are going to be quite a number of amendments and changes as we understand how this bill is put into action.
I think, from my perspective and, certainly, from some of the perspectives I’ve heard, that we are taking a rather conservative approach to this. We’re testing it out, we’ll make some changes as we learn, and we’re really responding. As has been pointed out by the previous speaker, we’re responding to the approach that the federal government is taking, which is still to be passed. Yet we’ve got to get our action together and put our work in place for when the federal government does eventually pass their legislation through both Houses there in Ottawa.
To hear the member and the official opposition speak, the B.C. Liberals’ approach to this is a much more conservative approach than you’re going to hear from this member or from our caucus with respect to the approach that we should be taking to substances, substance abuse, addiction. Our approach is not a top-down, strict, government, command-and-control approach. That’s the approach that we’ve heard — that this legislation really doesn’t go far enough, and lots of concerns.
Certainly, we have a responsibility to ensure the health and safety of our citizens. That is primarily why we do take more of a harm reduction approach to substance use, substance abuse, addiction — more of a perspective that we need to have better education on the impact that these substances have. As well, we need a system and a government that provide support to citizens who are struggling with drug addiction and substance abuse.
In this country, we’ve seen — indeed, on this continent and around the world — that the war on drugs simply hasn’t worked. We’ve heard a perspective laid out here in the official opposition’s position that we need really strict and strong enforcement. That’s what we’ve had. We have right now a situation in which legalization of cannabis is largely being moved because those laws that are in place are being flouted by large percentages of the population.
In addition, we have a fentanyl crisis where folks are dying of fentanyl and drug overdoses. Yet we pretend, to a certain extent, in our society in modern times, that in fact the strict drug enforcement, command-and-control, top-down approach to this is working.
I heard this morning Heather Hobbs from AIDS Vancouver Island on the CBC when I was on my way into town. One of the things that she said very, very clearly — and she’s working with folks who are oftentimes right on the edge — is that criminalization is not working and that we need to get government to move and change the relationship which we have — criminalizing people for what is a medical issue, a health issue, an addictions issue. Criminalizing these folks does not help.
Our approach here is much more one of harm reduction, of treating medical issues as they arise. For decades now, as we’ve taken the war-on-drugs approach, we’ve seen that really fail.
We take a look at the bill. We’re given a general manager and a director. It’s very much modelled after the bill that we have for liquor distribution in our province. I think that there have been some changes within liquor distribution which we don’t see in this bill, and perhaps we will.
In fact, I hope we do see some amendments over time so that some of the opportunities that we see within liquor distribution and the production of liquor — whether it be beer or ciders or other products of alcohol that are created in our communities — and that people…. I mean, the craft industry, for example. I see an opportunity here for British Columbia.
We’re creating very much the same board. I’ve got some questions, when it comes up, as to the powers that are being given to the general manager and to the director — how they can use those powers, how it’s intended for them to use those powers.
I have some issues, when I read the bill, with this notion of cannabis in plain sight. People can be arrested or charged for having their….
Interjection.
A. Olsen: I spend very…. The minister, the Solicitor General….
Interjections.
Deputy Speaker: Members, through the Chair.
A. Olsen: Anyway, I know that when I read the bill, without having to tweet or to read Twitter, there is a section called cannabis in plain sight. As we get to that bill, the Solicitor General and Public Safety Minister will be happy to know that I’m giving him forewarning. I’ll ask a question about it — and a thumb’s up down there, so thank you. And I believe very little I read on Twitter.
One of the pieces of this bill that I will like to canvass more deeply in the committee stage is some of the issues that arise around non–private property owners. I think that this is going to be a challenge. Part of the challenge with cannabis, and it being different than alcohol — I don’t need to tell anybody this — is that you smoke one and you drink another. When you smoke one, you create a problem for people around you, whereas if you drink one, it’s really just a problem that you’re creating for yourself.
Nonetheless, there’s this whole interplay in this bill around: you can consume in public as long as it’s not in front of kids and around parks and around parks where — I can’t remember the exact language — kids frequent. So you can consume publicly, as if it were tobacco, yet then you can’t be intoxicated publicly. That can be a problem.
I’m getting direction from the minister as we go.
Anyway, there’s this whole interchange. As well, if you have a place that you own that you can consume it, that’s fine. If you rent or…. There are all sorts of layers to this which I think might marginalize part of our society. Let’s just simplify it. I’m concerned about how those that would be marginalized already in society might be further marginalized by this bill. We can take a look at that further as we get into committee stage.
Also, I think that around the craft market, the craft piece of this…. I think we’ve seen in British Columbia, especially with beer but also with spirits, that we have got incredibly creative and imaginative people who make wonderful products. Around the world where there has been greater levels of socialization for alcohol products than there is for cannabis…. I recognize, from some of the interplay in this House right now, that it’s going to take some time.
As we send our beers off to world championships, we celebrate them. We celebrate them on the morning news. We won nine of 14 awards — just British Columbia breweries, microbreweries — at the championships. We wake up in the morning, and we hear that on the radio. That’s something that is celebrated, the ingenuity of small business owners, the ability for them to…. They’re chemists. And the same goes for this industry as it matures in our province in a legal fashion.
I think what’s important is that as we have seen with alcohol production, there’s vertical integration there where you can produce and also have a place that you can sell. I was at my friend’s winery, and he’s got his wine there that he produces and he sells. Then there’s also a way for him to supply…. In a geographic area, there’s a way for him to supply local stores directly. The paperwork goes through the liquor distribution, but for small-end producers — small-scale producers, I should say — some of the rules have been amended and changed to allow for that.
As our laws and as we understand how those laws work and, actually, as we set them up…. That is something that I think needs caution, patience, always. We’re setting these laws up, and we see how they are executed. I think this is something, an opportunity, for British Columbia as we go forward for the craft industry.
Finally, I think there are a couple more things that I’d like to point out. I did hear the minister the other day point out the significant challenge I think we’ve got right now with Washington state, British Columbia — state, province, federal government. The federal government in the United States runs that border. I think there’s going to be a lot of people who are going to be sufficiently confused by that, and it could cause a lot of problems.
What I hope is that both the state and the province and the federal government of Canada can figure it out with Washington — D.C., that is — because I think there are going to be people who are going to be confused. I don’t think they’re going to intend to break any laws, and that’s going to catch a lot of people.
Again, I think the goal here is to not criminalize people. Even those that say that the laws here go way too far…. The fact of the matter is that we are criminalizing far too many people with this product, and I think the goal here is to not criminalize people on both sides of the border. Yet the American federal government runs that border. I know that British Columbians, Canadians could get themselves into a lot of trouble at that border, the same as our American friends coming north. I think it is really important that we do sort that out.
Finally, I would say that there is…. If I go back to the point where I was talking about private property owners and perhaps lack of a place for them to consume cannabis, one of the ways, of course…. Other provinces have done this. They have created cannabis lounges, or for alcohol products we call them pubs or public houses, a bar. I recognize the significant challenge of smoke indoors. I recognize that.
I think one of the ways we can get around and ensure there is a place for people to…. I mean, after all, this is a controlled substance, but they’re going to be allowed to participate and consume it recreationally. Perhaps we want to take a look at having cannabis lounges in some way, and perhaps that’s a further evolution of the law as we go forward.
In general terms, we’re very supportive of the government taking this action. I think the minister and the ministry and the drafters have done a good job in crafting a framework for us to work within. I hope that we can identify some challenges that come up and address them promptly as we go and evolve, as this industry in this province evolves.
There’s an opportunity for British Columbia here to be progressive, to be leaders, to lead the country. I think in some cases in this legislation we are, and in other cases, we can push it forward and even be more progressive.
With that, I’ll take my seat. I thank the Minister for the bill and will come down and visit you in just a minute.
Thank you, Madame Speaker, for this opportunity.
D. Barnett: Of the three bills relating to cannabis that the government introduced this week, this is the most broad and, I suspect, the legislation that will touch most people’s daily lives. So it is very important that we get this right to ensure public safety, to conserve limited police and government resources, and also to make sure that we’re focusing on the right areas and not tilting at windmills.
This seems to be a pattern with this government. One could be forgiven for thinking that too many bills were rushed too quickly. There are simply too many examples of bills with vague language, no specifics or obvious questions that remain unanswered. For example, look at the cannabis possession limits defined in this bill.
In public, people will be permitted 30 grams of dried cannabis or its equivalent. Here, the government got it right. You can argue about the amount, and I suspect many people will, but at least we’re talking about a measurable, definable amount.
Compare that to the private possession limit — the amount people will be allowed at home. It says it’s based on the reasonable yield from four plants. There is an enormous amount of variance here. For some people, it’s just a question of planting four plants and seeing what happens. But for others that have developed an impressive level of sophistication in hydronics and horticulture, their plants will not only be bigger and produce more product but substantially bigger and substantially more product. Why would they be allowed more? Put another way: why would they be penalized for having a green thumb?
Subjective limits are impossible to enforce. So why bother including it at all? We are told the specifics will be prescribed in regulation — another ongoing theme in this session. In the meantime, we can only guess.
I also have questions about public consumption. I appreciate there are good intentions here, and I appreciate the effort being made to make sure cannabis is not used in schools or playgrounds. But the bill says that cannabis can’t be smoked or vaped in places where children gather. This is obvious when it comes to playgrounds, sports fields or the beach, but there are plenty of other grey areas. What about Robson Square in downtown Vancouver or Centennial Square here in Victoria? Again, this isn’t immediately clear.
The bill also specifies that this only applies to smoking or vaping. Edible cannabis products will essentially be legal to consume anywhere. Again, our expectations should be reasonable. Expecting police to monitor and enforce restrictions on edible products would almost certainly be impossible, but we will create a strange double standard here — illegal to smoke cannabis in a city park but legal to eat a pot brownie. It’s only fair to ask how police will be expected to handle public intoxication.
I also have concerns about the government infrastructure. The Solicitor General Ministry will create a new position: the director of cannabis enforcement. The director will also have a new community safety unit. Nowhere in this bill does it explain how big the unit will be, what resources they will be given or who pays for it.
I understand the minister’s intention is probably to start small, be flexible and most likely add resources as the workload increases. But there isn’t even a ballpark estimate as to size, resources or if the ministry has the physical space to accommodate the director and their team.
There will be administrative challenges for police departments, as well, and a significant drain on resources. Every department and detachment in this province will need drug recognition experts, testing equipment and the training to use it. Who will pay for this? I understand that Ottawa has promised some money, but it’s not here yet. We are asking police departments to carry the water until then, or indefinitely.
Finally, I have questions about this legislation and how it will apply to Indigenous nations. The bill says the legislation will have maximum flexibility and gives the provincial government authorization to negotiate agreements with Indigenous nations with respect to cannabis. This seems reasonable. But it’s only fair to ask: what will happen if, hypothetically, an Indigenous nation says they want to ignore provincial and federal law and sell untaxed cannabis? Would the law be enforced?
I am looking forward to raising these questions with the minister and his staff in committee.
J. Thornthwaite: I, too, am looking forward to putting my remarks on Bill 30, Cannabis Control and Licensing Act, and I’d like to make some comments about health effects.
I know that a lot of people think that cannabis is kind of a natural substance, and I know that there is some talk about it helping anxiety or even depression. Certainly, I think some physicians are recommending cannabis for reasons such as those. But I just wanted to make sure that everybody was well aware that there are also detrimental and somewhat tragic consequences for some people with the use of cannabis, particularly in our youth.
I didn’t have to go very far. I went to the government of Canada website, “Cannabis and mental health.” With the mental health effects, which are quite pertinent on their website, it says:
“In some people, cannabis use increases the risk of developing mental illnesses such as psychosis or schizophrenia, especially those who start using cannabis at a young age; use cannabis frequently — daily or almost every day; have a personal or family history of psychosis and/or schizophrenia.
“Frequent cannabis use has also been associated with an increased risk of suicide, depression and anxiety disorders.
“There is evidence to suggest that combining tobacco with cannabis can increase the strength of some psychoactive effects and the risk of poor mental health outcomes, including addiction.”
I must say that when I’ve spoken in my role as the official opposition critic for Mental Health and Addictions, I have spoken to people that have schizophrenia. I’ve also spoken to parents of children that have severe mental illness, and many of those people say that there are signs of the severe mental illness, and in one case the diagnosis of schizophrenia, after profound usage of cannabis when they were young. So I really want to make it clear that it’s not necessarily a panacea for making people less anxious or whatever.
Also: “Research shows the brain is not fully developed until age 25. Thus, youth are especially vulnerable to the effects of cannabis on brain function and development. The THC in cannabis affects the same biological system in the brain that directs brain development.”
It has been associated with “increased risk of harms when it is frequent, continues over time,” and as I said before, “begins early in adolescence.”
From the Health Canada fact sheet, they go on to say:
“Cannabis use that begins early in adolescence, that is frequent and that continues over time has been associated with increased risk of harms. Some of those harms may not be fully be fully reversible. Adolescence is a critical time for brain development, as research shows the brain is not fully developed until the age of 25…. This is because THC in cannabis affects the same biological system in the brain that directs brain development.”
In addition, the executive director of the B.C. Schizophrenia Society, Deborah Conner — she represents over 3,000 members — says that they support restricting access to recreational marijuana to anyone under the age of 25, which also echoes a position of the Canadian Psychiatric Association.
Then there was an article that was published on June 23, 2017, in the Globe and Mail, called “Mental Health Experts Underscore Dangers of Youth Cannabis Use.” Diane McIntosh, who is a professor of psychiatry at UBC — she’s also a psychiatrist and a former pharmacist — says: “Research has shown heavy cannabis use plays a ‘clear role in the early onset of psychotic disorders…’ noting schizophrenia can develop up to six years earlier in young people who consume the substance regularly…. That is the age when a person’s brain is considered to have finished developing.”
She goes on to say: “If you’re 35 years old or older without any mental illness and you want to smoke pot, ‘I don’t care.’” But she’s worried about the younger kids, and I am too.
Chief among the messages, as she went on to say, is: “Even though a direct link has yet to be proven between using the drug and mental health issues, the evidence shows the substance can trigger psychotic episodes and negatively affect youth with a family history of mental illness, such as schizophrenia.”
Although I recognize that the age is going to be 19, I caution the provincial government to perhaps consider the words of the experts with regard to youth mental health — at least up to age 25.
I would expect, then, that this government will have a very robust education campaign to be able educate families, educate parents as well as youth, about the possibility of the increased incidence of mental illness with cannabis.
T. Wat: I also rise to speak on second reading of Bill 30, Cannabis Control and Licensing Act. Many of my constituents in Richmond North Centre have come to express their concern about the fact that legalization of cannabis would touch so many aspects of their daily lives, especially for children and teenagers, and even for those people who have never touched cannabis personally in their lives. That’s why it’s very important that the government does it right and takes time to study and review the issue thoroughly instead of just rushing to pass the legislation.
Unfortunately, the bill does not get it right. This is really a rush job. The bill was introduced late into the session without providing enough time for members of the House to study, debate and improve upon it. Also, the government does not seem to have spent enough time talking with different municipalities and British Columbians. The bill does not reflect their beliefs, their input and their opinions.
The city of Richmond continues to have concern about this rollout. The Richmond city council is scheduled for a meeting tonight at 7 p.m. to consider some of the city’s own regulations. The Richmond city report suggested that several items, including asking the B.C. government to impose a temporary prohibition on the use of lands in the agricultural land reserve, ALR, for cannabis production.
Richmond city councillors have long opposed marijuana facilities on farmland for a number of reasons, including a concern that growing marijuana will limit the growth of other products. Instead, the council believes cannabis facilities should be built on industrial land.
This particular request, along with other suggestions in the city report, was approved by councillors at a general public meeting on May 7. Tonight city council will vote on whether or not to submit this request to the provincial government.
In addition to the above request, the city will continue to prohibit cannabis resale in all zones. They are concerned about home cultivation and the fact that minors between the ages of 12 and 18 can possess up to five grams of cannabis.
Adding to those, two Senate committees have also reported on the bill, and both committees suggest senators will push for major changes. The legal affairs committee says that home cultivation of cannabis should be banned and there will be a limit to how much of the plant someone can have in their home. The Aboriginal Peoples Committee says that the bill should be delayed a year to give First Nations more time to figure out how to manage marijuana in their communities.
The Senate is set to hold a vote on the bill on June 7, and if senators make major amendments, there is an opportunity that the legislation will be going back to the House, where MPs can decide to accept or reject the amendments and forward it back to the Senate. So we can see that even the federal legislation is pretty fluid.
I do recognize that the government is facing challenges from Ottawa, which has not given British Columbia or any other provinces enough time or resources, but the government’s cannabis bills have serious gaps that will have consequences, and the government must not do a rush job. The government must and should consider public opinion and public safety.
Secondhand smoke and marijuana regulations should be addressed. Public education and discussion forums should be conducted in different communities for feedback on hygiene issues of growth and its effect on households and the cost of cleaning up.
The MLA for Prince George–Mackenzie has proposed several amendments to help to address them. They include a cooling-off period for current dispensary owners from applying for a retail licence. This would do several things. It would help to prevent illegal cannabis from being sold alongside legal marked and taxed products. It will help disentangle this industry from any connection to organized crime, and it will create a level playing field for distributors who have followed the rules, because right now those who broke the law and openly sold what was still a prohibited substance will get a head start.
Another proposed amendment is a proper education program for K-to-12 schools to teach kids about the hazards of cannabis. This will ensure that children, teenagers and parents all have the information they need to make informed decisions. We do the same for alcohol, tobacco and sex education. Why not cannabis?
The MLA for Prince George–Mackenzie also proposed banning the use or sale of cannabis in and immediately adjacent to parks and school zones. This will ensure that kids are not exposed to a product they may not be ready for.
Again, as I said earlier, I do understand the difficult situation the minister is in — that the federal government has not given the provinces enough time or resources. That doesn’t mean that we should repeat their mistakes. Cannabis is dangerous for children and teenagers, and there is potential strain on provincial resources. I urge the minister to consider the amendments of the MLA for Prince George–Mackenzie and, if need be, recall the House in a month or two with a much more improved bill.
Hon. D. Eby: I understand there’s another bill coming up, so I move adjournment of the debate, briefly, for the committee to come in and present the bill.
Hon. D. Eby moved adjournment of debate.
Motion approved.
Deputy Speaker: This House will recess.
The House recessed from 5:18 p.m. to 5:19 p.m.
[L. Reid in the chair.]
Report and
Third Reading of Bills
BILL 23 — LOCAL GOVERNMENT STATUTES
(RESIDENTIAL RENTAL
TENURE ZONING)
AMENDMENT ACT, 2018
Bill 23, Local Government Statutes (Residential Rental Tenure Zoning) Amendment Act, 2018, reported complete without amendment, read a third time and passed.
Hon. D. Eby: I call continued second reading on Bill 30.
Second Reading of Bills
BILL 30 — CANNABIS CONTROL
AND
LICENSING ACT
(continued)
G. Kyllo: I’m happy to take my place and speak today….
Interjection.
Deputy Speaker: I’m sorry?
Hon. D. Eby: Madame Chair, I failed to say “and I move second reading.”
Deputy Speaker: Thank you, Mr. Attorney.
The member for Shuswap, please continue.
G. Kyllo: I’m happy to take my place today and speak with respect to Bill 30, Cannabis Control and Licensing Act. As was set out by the member for Prince George–Mackenzie, there are a number of concerns, I think, that we all collectively share in this House with respect to this new bill that is before us.
I appreciate that the federal government has been less than forthcoming and timely with respect to providing proper direction, I think, for our province. But having said that, there are a number of areas of significant concern.
Obviously, as a father and as a grandfather of now six grandchildren, I’m very concerned about protections for our youth. As has been spoken about in this House and as evidence has been shared, there are significant risks for youth that might be consuming cannabis before the age of 19. Increased potential risk for schizophrenia and those sorts of things are very concerning to us. So we want to make sure that the government takes the necessary time and puts the rigour behind ensuring that our youth are going to be protected in this province as we see the legalization of cannabis move forward by the federal government.
As well, considerable concerns around public safety. Whether we’re talking about potential for those using cannabis on our roadways or our waterways, we again want to make sure that not just the laws are in place but also that law enforcement has the necessary tools and the training in place in order to provide adequate investigation — and, where needed, charges, where there are people that might be operating vehicles or boats under the influence of cannabis.
These are significant concerns. I read an article in the newspaper earlier today that set out the considerable impact on law enforcement where the devices, apparently, for identifying the use of cannabis in one’s system haven’t yet been fully developed or determined by the federal government. So in the interim, we will see that officers have to get trained up and provide that opportunity, I guess, for them to actually identify those that are under the influence of cannabis through — similar to what we saw many, many years ago — the roadside investigative checks and sobriety tests and walking the line and that sort of thing.
As well, we have to see, I guess, finite determination when it comes to the actual application for distribution or for the retail of cannabis within communities. I appreciate that that will be under the rigour of local governments, but there’s also been a reference to First Nations also having to provide that opportunity to review those applications. And a question for the Attorney would be whether there has actually been determination of whether First Nations may potentially have veto power over the retail of cannabis within their traditional territories.
There’s been some discussion with respect to changes in the Residential Tenancy Act. I think increased concern and consideration that should be put before the House is whether there’s an opportunity or, I guess, a potential risk for those that might be renting a home or a property where there is a restriction from the landlord about the actual growing of any cannabis on the property. If the landlord determines or identifies that there is a growing of cannabis on the property, does that give the landlord, then, immediate opportunity to evict their tenants?
I don’t have any statistics, but I would imagine that within rental properties across British Columbia, there are probably a significant number of rental tenants that do, even currently, even though it’s illegal, grow cannabis within their rental property.
I wonder if the Attorney has given consideration to what potential impact that may be — where you may have a number of folks that are renting properties across British Columbia and that, potentially, should this new bill become enacted, suddenly could be actually evicted from their homes or their rental properties.
As well, I think, some of the numbers I’ve heard are that the cannabis cultivation industry in British Columbia is between $5 billion and $6 billion — a significant amount. If we consider the amount of illegal marijuana that’s sitting in different retail distribution centres across the province right now, when the legislation comes into effect, what would happen to all of that existing inventory that’s sitting and stocked on businesses’ shelves?
I do know that back earlier this year there were raids on a number of different Scotch rooms across the Lower Mainland — where a legal substance like alcohol was actually confiscated from these businesses, not because it’s an illegal product but because that product had maybe not been procured through the appropriate legislated manner, or maybe the appropriate taxes had not been paid. So here we have, you know, Scotch rooms across the Lower Mainland where products were actually being confiscated from these operators.
If we have a look at what might be coming forward when we see the legalization of cannabis in B.C., the amount of product that might be sitting in different stores of these dispensaries across British Columbia, what would be the government’s approach to dealing with that? Is there an intention to actually pull all that product back? We could literally be talking about tens, if not hundreds of millions of dollars in product that, I guess, would continue to be illegal because it’s there illegally now.
I’m just wondering if there has been consideration to what is going to happen with that product. I certainly appreciate, from a health and safety aspect, the fact that the intent with the new legislation will be additional measures to provide, at least, consumer confidence that the product that’s being purchased is somewhat safe to consume.
Now, I’ve heard rumours recently — because the product even currently, although it’s illegal in many jurisdictions, including British Columbia, is sold by weight — that there are a number of cultivators that actually add different products and carcinogens to the soil, which are absorbed into the plant and which increase the weight of the plant by up to 10 percent. That product, unfortunately, is not regulated. There are no regulations in place that actually monitor that. So people that might be purchasing that product currently are actually purchasing a product that has carcinogens within it.
I certainly appreciate the fact that the new regime, as proposed by the federal government, would provide a bit more rigour and consumer confidence in ensuring that the product that is available for sale would be void of or not include any of those potential carcinogens. Again, it’s just something yet that I think we need to be giving thorough consideration to in this House.
It’s a very complicated bill. I certainly appreciate that the government has not necessarily had the time that should be provided to provinces in order to line up the different legislation — to have a good, thorough consideration of all of the bills that might be required and to give consideration to all those unintended consequences.
With that, Madame Speaker, I will take my place, and I thank you.
Deputy Speaker: Seeing no further speakers, the minister closes debate.
Hon. M. Farnworth: I just want to speak briefly to some of the commentary, and I thank members for participating in this debate. It is an important piece of legislation. There are a lot of issues, a lot of strong views on all sides of this.
As was pointed out by my colleague from Saanich North and the Islands, I’m criticized by some for this legislation being “too progressive, too allowing.” They’re saying: “You’ve gone too far in that direction.” Others are saying: “You’ve not gone far enough in that direction.” That tells me that we’ve probably got a good balance. We’ve managed to…. You know, there are people, on both sides, not happy. That tells me that we’ve probably struck the right approach.
I say that because we took a significant amount of public input into this legislation. We consulted with local governments. We consulted with Health, with Aboriginal communities, First Nations, with the industry, with veterinarians; you name it. The tentacles and the issues raised by legalization have been myriad, but at the end, we have a piece of legislation that is the beginning.
I do want to address some issues. We looked very closely at the age of majority, as has every province. That’s why we’ve aligned the age that we have with the age of majority, being 19. I think we have made strong statements around organized crime. We do know that that is one of the key elements of this legislation. It’s one of the key elements why legalization is taking place.
We also know that it is not going to be easy. It is going to take time. In Colorado, it has taken four years to get organized crime down to 30 percent of the market. It is a significant challenge, and we are under no illusions as to that. But we believe the measures that are in place will, in fact, help us to achieve our goals on that front.
When it comes to retail, the member and I have discussed this many times. We have said that people can apply, but that does not mean that they are going to get special consideration. We’ve made it clear that there is no grandfathering of those existing dispensaries that may have been given a licence by communities.
The most notable ones, of course, are Vancouver and Victoria. They’re going have to go through the same hoops and a far more rigorous background check. They’re going to have to go through the same things that everybody else is going to have to go through.
Possession is defined by the federal government. There are those issues around…. I take the member’s point that you can get a lot out of four plants. But again, they can have that inside their units, their home. They can only take 30 grams outside — only have 30 grams outside — and that limit is per household. It’s not that if you have four people, each can have four plants. That is an area I want to make sure where we’re very, particularly, clear.
We looked at the issue on the zero. Again, that relates to those constitutional questions. I know some members have mentioned edibles. “How are you going to…?” Well, the reality is, edibles aren’t legal yet, so this legislation does not deal with that. That is something that will come in the future once the federal government has put in place the rules and the framework around that. So that is still to come, and I expect further debate on that.
On the issue of medical cannabis, absolutely, I think I’ve been clear in public statements that we think that five years is too long to wait. The federal government needs to understand that that is a significant source of illegal product at this time, using a system that they have designed, that they have put in place, that is not working the way that I believe it should. That is something we will continue to push, that we will continue to raise with the federal government. They need to deal with that now, not later.
[R. Chouhan in the chair.]
All in all, one of the things I want to say to those who are critical and to the public in general…. One of the key lessons that we learnt down in Oregon and Washington, one of the key messages that was driven home to us with literally everybody we met, was to have a tight framework at the beginning, because you can relax or change over time to meet circumstances.
It’s a lot easier to do that than it is to sort of do what many people want, which is, in essence, let a thousand flowers bloom all of a sudden and then find out that things are not working and try to rein them in. That would be a major challenge. So we think we’ve taken the right balance with this.
Finally, I want to make one comment about something I’ve heard. I don’t usually single out, but on this, I absolutely will. The statement by the member for Richmond North Centre that this legislation will allow 13- to 18-year-olds to access cannabis is absolutely false. It is not true in any way, shape or form. If anybody goes out and peddles that nonsense, they are spreading an absolute falsehood and a complete and total untruth. I cannot express myself more strongly on that statement.
I don’t mind taking criticism on any aspect of legislation. That debate is legitimate. That debate is absolutely necessary in this legislation.
One thing I will not stand by and let go unchallenged is the idea that somehow government legislation is sanctioning or allowing young people to access cannabis when the legislation does not do that in any way, shape or form. If members think that I have been strong in that, it’s because I feel very strongly about that.
I just want to get that on the record and make that clear. Other than that, I have appreciated the debate, and I look forward to the discussion in committee stage where we can get into these issues in greater detail.
With that, I move second reading.
Motion approved.
Hon. M. Farnworth: I move that the bill be referred to a Committee of the Whole House to be considered at the next sitting of the House after today.
Bill 30, Cannabis Control and Licensing Act, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Hon. M. Farnworth: At this time, I call, in Committee C, Bill 18, committee stage. In the House, I call second reading debate on Bill 31.
BILL 31 — CANNABIS DISTRIBUTION ACT
Hon. M. Farnworth: I move that the bill be now read a second time.
It’s my pleasure to rise today to speak about Bill 31, the Cannabis Distribution Act. The Cannabis Distribution Act establishes the province as the exclusive wholesale distributor of non-medical cannabis in B.C. This is a model that has worked very well for liquor and allows the province to have direct oversight of the cannabis supply chain as we transition from an illegal to a legal market.
Further, it is a model that was upheld by the Supreme Court of Canada in the Comeau decision. The majority of provinces and territories, including Alberta, Ontario and Quebec, will also implement public wholesale distribution systems for non-medical cannabis.
With respect to retail sales, B.C. will have a hybrid public-private retail system. Again, this is similar to what we have in place for liquor, and it is a model that is supported by a majority of the nearly 50,000 British Columbians who provided feedback during the public engagement process last fall.
This bill provides the required authority for public retail sales, both on line and in bricks-and-mortar stores. Private sales will be regulated under Bill 30, the Cannabis Control and Licensing Act. To implement public distribution retail sales, B.C. will leverage the expertise and resources of the Liquor Distribution Branch, which has a long track record of effective management of distribution and sale of a controlled substance. This will allow B.C. to have cannabis distribution and retail up and running later this summer.
The intent is, therefore, to appoint the general manager of liquor distribution as the administrator of the Cannabis Distribution Act. As administrator, the general manager will have significant independence to make the day-to-day decisions required to operate the cannabis distribution centre, implement an on-line sales platform and establish public cannabis stores in the communities that want them.
The bill also requires the administrator to administer the act so as to promote social responsibility in relation to cannabis. This means that the administrator will have an important role in educating the public about low-risk cannabis use. It also means that social responsibility will be a critical consideration in the administrator’s decisions about which cannabis products can and cannot be sold in British Columbia.
Working with Bill 30, the Cannabis Control and Licensing Act, the Cannabis Distribution Act will enable a B.C. distribution and retail system that supports our provincial goals of promoting public health and safety, protecting children and youth, reducing crime in the illegal market and supporting economic development opportunities in our province.
With that, I look forward to the comments and discussion from members of the House.
M. Morris: I certainly appreciate the minister’s comments on this and the complexities around introducing this new legislation in British Columbia. Quite frankly, right across Canada, it’s presenting some unique challenges.
One of the aspects about this distribution legislation is that it says that government may not sell unless produced by federal licensees, and it’s very, very explicit in terms of where they get their marijuana from.
I stated this earlier on in the debate over the Cannabis Control and Licensing Act with respect to the amount of illegal cannabis that’s already out there and what government might intend to do. We’ll have a competing interest in cannabis the minute that this act comes into force with the perhaps tonnes of illegal cannabis that’s already out in the market. It may reflect on the ability to operate retail outlets that produce a profit and cover all the expenses, and I’ll talk about that in a little bit.
The other aspect under this legislation that I see as possible is the on-line system for sale of cannabis to consumers in British Columbia. The concern there again is access to youth and access to individuals that shouldn’t be in possession of cannabis and how that might be regulated under an on-line system. How do we ensure that a young person has not perhaps come into possession of a parent’s or an adult’s credit card, ordered the cannabis on line and had somebody else representing the individual at the door when the cannabis is delivered to the door by a delivery agency? Again, during the committee stage, we’ll get into some depth on that.
The other aspect of this is…. There’s a consideration for input from municipalities and First Nations groups throughout the province. I’m curious as to what the province’s position will be if we have a community or a First Nations that says, “I don’t want any retail outlets within my community. We disagree with this. We don’t want to sell it in my town or my village or my city,” if it goes that far. I’m curious to see what the province’s position will be on that, whether they will say: “No, we will be putting a cannabis distribution centre retail outlet in your community.” So that needs to be worked out.
Government being the sole supplier to the retail outlets in British Columbia. Again, I know there’s some pretty strong legislation that’s being proposed here, and being proposed under the other bill that we debated earlier, with respect to those that want to disregard those rules. There’s legislation being presented in this bill that talks about inducements for officials within the cannabis distribution system and some fairly significant penalties surrounding that.
My experience with organized crime…. Those who are bent on the illicit activities out there will stop at nothing to intimidate, to blackmail and to do whatever they need to get their product on the shelf. There is going to need to be some very stringent rules in place and some very rigid discipline involved in where the product that’s being displayed on the shelf comes from.
Does this regime, this act, this statute, provide the ability for analysis? Yeah, it does. But how rigorous will that analysis of cannabis be? Every bit that comes in, every lot that comes in for sale — whether there’ll be a sample tested in that lot to ensure that it’s coming from a legitimate, federally licensed organization. I think that step needs to be in place, particularly in the infancy stage of implementing this legislation in British Columbia, for the first several months, or perhaps a year or two, to ensure that the products that we have on the shelf in liquor stores are safe.
Again, the health issues around that are paramount. If you, as government, are authorizing this product to be sold in British Columbia retail outlets, government is telling the people out there that that product is safe. Some very rigorous steps have to be taken to ensure that that takes place.
The other aspect of this bill before us talks about the revenue generated from the retail outlets. At the end of the day, the manager or the administrator of the retail outlets will have to look at the amount of cannabis that’s been sold, the amount of money that’s been made in that particular day, and subtract the administrative costs of running that store off that total. Anything in surplus will be deposited into general revenue for the province.
If there are insufficient funds in there, then this bill also allows for the neighbouring liquor store to come in and put money into the cannabis distribution system to ensure that it’s not costing government any money at the end of the day. If that still fails to provide the necessary revenue to run the operation, then this bill authorizes the money to be taken out of general revenue to cover those costs.
It’s interesting to see these aspects in there, and I can understand why they’re there. I hope we never get to that particular point in time where we’re taking money out of a system to support a cannabis retail system. Is this going to cost government money at the end of the day? That’s one of the other concerns that I have and many of my colleagues have.
We need to ensure that the product is priced to eliminate the black market or to mitigate the black market activities and involvement in this to the extent possible. If the price is too high, then the black market will flourish; if the price is too low, perhaps it won’t even cover the costs of administration for running that particular store. It will be a question that we’ll ask during the committee stage. Does the cost of running that store include the wages, the salary, the overhead and everything to do with running that particular individual retail outlet that government has or the private sector implements, as a result of this dual retail system that the government is proposing?
There are a number of things that are raising eyebrows in this legislation. I look forward to discussing it in full during the committee stage to explore some of the sections that are in there. There are definitions that I think require a little bit of exploring to make sure that it covers all aspects of the issues involved with those definitions.
Again, the legislation provides the ability to share information with police officers, police departments. I want to ensure…. There are a couple of subsections in this legislation that might prevent that from happening, at the end of the day. Again, enforcement is difficult enough as it is, adhering to the laws and the regulations and the jurisprudence that we have in Canada. We want to make sure that with this new legislation we’re not impeding the effective enforcement of this kind of legislation in the future.
With that, I’ll conclude my remarks, and I look forward to the committee stage on this.
A. Olsen: It’s my pleasure to stand today and speak to Bill 31, the Cannabis Distribution Act. This, of course, is the second piece to the work of the Solicitor General and the minister responsible for public safety with respect to legalizing cannabis. It is a decision that the federal government has made and that now the provincial governments are responsible for developing the framework for that to exist, for the recreational consumption of cannabis in our society. I had an opportunity to speak at length and much deeper on Bill 30 than I will here, on Bill 31.
I look at the structure that’s being created here, and I think we recognize it to be a very familiar structure, because it, in fact, mirrors and will be controlled by the Liquor Distribution Branch. So this is a situation that we’re very familiar with here in this province. We’re having a centralized distribution model, and I think that it’s a good place to start, frankly.
When you take a look at what the opportunities are, going forward, I think there are some opportunities to make some needed amendments to this to allow certain things. I know I spoke in Bill 30 to vertical integration, the ability for someone to produce a product and to sell it in a licensed establishment on their site or produce a product and distribute it to a local area, much like we see with wine and spirits and ciders and beers that are produced in the craft market. So I think that there are some amendments that can happen in the future. But for the most part, I and my colleagues are supportive of the approach that the government is taking to this.
We’re supportive of the framework that they’ve put in place, and I feel confident that we’re going to be able to put ourselves in a position to be compliant with the federal government and the desire to legalize the recreational use of cannabis and look forward to continuing the discussion and the debate in the committee stage and going in depth, in detail, on each of the sections we have in front of us.
With that, I’ll take my seat and thank the minister for the work on Bill 31.
P. Milobar: It gives me pleasure to rise and speak to Bill 31 in regards to the upcoming cannabis legalization legislation.
Recognizing that it is a federal direction that we’re headed down, and the province needs to make sure that we do have some form of regulation in place, that’s a good thing that we see the government moving forward with this legislation at the end of this session.
I do have some concerns and comments to make, however, about Bill 31 in general, a lot of it having to do with the direction the government is taking in regards to distribution and, more specifically, on the retail side.
Coming from a background…. In my previous worklife and private business ownership life, I owned a private liquor store and ran bars. I don’t any more, and I don’t own. But I have a pretty good insight into the whole distribution model as well as the retail side. When you have a government and private industry mix where the government is the distributor, the regulator, and the government turns out to be actually your retail and stiffest retail competition, it makes for a very difficult framework to try to operate under if you’re a small operator, an independent. In my case, I was an independent store of one. So you’re really fighting a very large entity when it comes to the government.
It always makes people have, I think, a little suspicion within the industry when you see rules and enforcement actions taking place that tend to impact a private operator heavily, and government operations on the retail side tend to go unscathed. The response is always: “Well, they’re subject to the same fines.” But the reality is it’s the taxpayer paying that fine as the operator of that retail store. It’s not the individual employee paying the fine. It’s not the individual employee or the operator of the store that sees that financial risk for flouting the rules or not paying attention to the rules.
The reason I bring that up is because when you look at that model and look at what’s being proposed in Bill 31, it’s dramatically different than what the government told us just a few short months ago. Now, I guess we shouldn’t be overly surprised that perhaps there’s yet another broken promise coming from the government. But when the legislation was first being discussed in broad terms, it was a very clear statement by government. The government was going to get into the distribution side, and they would create a warehouse much like the liquor distribution branch. In fact, they paralleled the example of the liquor distribution branch, and they would not — and they were emphatic — be operating retail stores.
Now, what we see very quietly being snuck in through this legislation is the ability for the government to operate retail stores. That was never talked about a couple of months ago. It was never even mentioned. In fact, it was emphatically highlighted that that would not happen. Instead, what we now see is an expansion of government retail into a private marketplace. I understand and fully support that there should be….
If you’re going to control distribution and if you’re going to regulate and try to track sales and make sure proper taxes are being collected and that nature, you should be in charge of the distribution network as a government. That I don’t take issue with. But there’s absolutely no reason for the government to expand government even further by going into more retail than they already currently are.
We don’t see an expansion into grocery stores by government. We don’t see government trying to sell sofas. We don’t see government trying to sell a whole bunch of other products in the marketplace if they have no problem jumping in where they think that they might be able to be the regulator, be the distributor and be the retail competition as well. That doesn’t work. It creates uncertainty in the marketplace.
It requires the government to start going out and leasing and hiring retail staff to do a retail service job that the private sector is more than willing to step in and do. The private sector full well knows how to go out and lease a retail space. The private sector full well knows how to go out and make sure that they hire staff. And frankly, the private sector, by and large, knows how to provide a better customer experience at the retail side of things on a wide range of products.
It is not core to government service to have to operate a retail operation — frankly, of any type. But to now add more retail to an existing mix of government does not make any sense.
You do not need a government employee to sell cannabis to generate the tax revenue that will come to government. A private operator can sell that exact same product, still have to collect and remit the same amount of tax that a government store would. The only difference would be the government would not be paying for leases and not be paying for staff. So the government would actually make more money if they allowed the private sector to be the retail operations versus the government trying to suddenly jump in and do another cash reach within this market.
The other problem I have with it is that in all likelihood, one of two scenarios will happen. Either, like they are in liquor, they will become the discount retailer with the most expensive retail locations to lease and the largest inventory carrying costs of any operation within the liquor world. Yet they sell at the cheapest price possible, which is totally contrary to how regular retail would work if you had that type of a competitive advantage.
What we will see with cannabis is one of two things. Either the government stores will come in and undercut the pricing to such a degree that on one hand, it’ll keep the black market, I guess, at bay to a certain degree. But it certainly won’t open up the market to private industry because the private sellers will never be able to meet those margins, never be able to operate at a loss-leader, like the government would be able to do, and make sure that they show a strong distribution profit coming in to justify why the retail side is losing dollars.
That, or they will actually try to operate it as a proper business, which I have my doubts around. But if they do, with the labour costs, with the benefits structure, with everything else that will come with staffing those government stores, that means the pricing model will have to be such that if they’re truly trying to operate at a profit, the pricing structure will be such that there will be no incentive for people to go shop there. The pricing will be so out of whack to what the market is willing to pay, especially in the infancy of this whole program, that we’ll see a huge problem.
What we see is another attempt to grow government into an area where we don’t need to grow government. It does not provide any more public safety. I’m all for the public safety aspects of these bills, but it doesn’t provide any extra public safety. What it does is it actually creates an impairment to the private business sector investing as they’ve been expecting to invest, to be able to open their stores, to be able to specialize and provide that unique service that we’re seeing in other jurisdictions that have already legalized, down in Washington and other areas.
That whole incentive is being wiped out by the government backtracking on a promise and a commitment that they would not be in the retail cannabis side of this bill. Instead, they’ve broken yet another promise, and they are now full steam ahead with retail cannabis.
The other problem that I have with this is that when you look at the clauses that will allow municipalities a veto over this, on the one hand, that’s great. Municipalities are always looking for ways to have a little more control over what happens within their municipal boundaries. But it’s a little unclear how, exactly, that’s going to work, and it’s a little unclear how effective it will even be.
I know there are some municipalities that have insisted that they do not want to see cannabis inside of their municipal boundaries, and that’s fair enough. But when a bridge is a one-minute drive away, I would expect to see some clusters, on the opposite side of that bridge, of cannabis retail.
That then puts pressure on other municipalities in terms of how they are going to have to try to legislate around restrictions and distances, recognizing that they could essentially, for the sake of cannabis sales, see their population increase by a third of what would normally happen within their retail environment, simply because one jurisdiction allowed a prohibition puts pressure on another jurisdiction to either overpopulate with cannabis stores than they might normally do or actually have closer boundaries than they might normally want.
Again, this is a piece of legislation that’s a little unclear when it comes to that, and it creates some issues when you’re looking at what happens municipality to municipality. It starts to create more uncertainty out into the communities as to what can really happen.
I can hardly wait for the day…. We haven’t heard how this is going to be addressed. We’re all assuming that everyone on the cannabis bill in the general public will be accessing it and no longer worrying about seeking out prescriptions for the medicinal side of cannabis. The reality is: there are a great many people that already have prescriptions, that already have the right to access cannabis for medical purposes.
I have not seen — and I could stand to be corrected on this — where the government is prepared to handle what happens when someone is walking down a sidewalk or standing in a foyer and decides that they need their medication right then and there. We don’t prohibit people from taking their other medications when they’re out and about on their daily business.
I’m not sure how this legislation or any of these legislation packages will actually properly address what happens when someone invokes their right to medicate and starts to either smoke or ingest in areas where it’s been specifically said that you can’t, under the legislation, unless you have a prescription. I would suggest that there will be challenges around people saying: “It’s my human right and my ability to be able to medicate as needed, when needed, and I should not be restricted to my home because I need to medicate at two o’clock in the afternoon, which means I could never leave my home until after two o’clock.”
That’s the reality of what happens when you have chronic pain management issues. You don’t just take one pill and you’re done for the day. You tend to have to medicate a couple of times in the day to manage your chronic pain issues. And I feel for the people that do have those chronic pain issues. I’m not saying that they shouldn’t be able to access the ability to try to properly medicate and manage their pain management issues.
Again, we don’t tell people: “You can’t take your Tylenol 3 on the bus.” We don’t tell people: “You can’t take your Tylenol 3 when you’re sitting in restaurant.” We don’t tell people: “You can’t take your Tylenol 3 when you’re out in the shopping mall.”
I don’t know how, if their prescription for pain management is for cannabis, any of this is going to help those people that are in medical need when the security guard walks over and says, “Excuse me, you can’t be smoking here,” and the answer back is: “Well, that’s actually my medication, and here’s my prescription. Who are you to tell me I can’t have my medication when I need it?” So that’s a problem as well.
As I say, though, the fact that we see government so eager to jump in to the retail side of things is quite shocking — that there was so little discussion until this bill came forward. In fact, it was the exact opposite discussion.
I think that’s why we didn’t see people being too worried a couple of months ago when there was a preliminary discussion around what could be contained in a cannabis bill. It was because the government went out of their way to try to tell everybody that they were only going into distribution.
There’s quote after quote after quote out there that the government was only going into distribution, and they would distribute it like the Liquor Distribution Branch, and it would be managed by the Liquor Distribution Branch.
Now, with those parts, they’re following through. What they’ve inserted without any public debate until this 11th hour, when we’re scrambling, trying to accommodate and rush through legislation after legislation on a hurried basis, something as important as this… The simple fact is that the government has gone back, has broken their word and has now decided to jump into the retail environment.
There has been no explanation why it’s needed. There has been no explanation to the broader public as to what the change of policy was. We could probably FOI and make sure that we cover people’s personal emails to maybe find out why. But the reality is that there’s absolutely no public safety benefit to the government operating retail cannabis stores.
In fact, Mr. Speaker, I caught the tail end of the Solicitor General being quite emphatic about public safety towards youth only 15 minutes ago. He was very impassioned about it. He takes it very seriously. I take him at his word how seriously he takes access of youth to cannabis.
If the Solicitor General, taking him at his word that he takes it that seriously, truly felt that private retail would create a problem access point for youth, being a man of his word as he is, there is no way he would have included private retail in this legislation. He would have seen that as a risk to our youth, and I believe he would have prevented that. Instead, he sees that it is manageable — that it can be regulated, that it can be enforced — and he’s made sure there is a private retail side to this.
What has been inserted, though, is the government retail side. There is only one logical explanation for why the government would want to jump in on the retail side of things: because the government sees it as a cash cow. If the government sees it as an end run to try to bring in more revenue, then they need to talk to the Union of B.C. Municipalities about it, and they need to talk to the federal government about it.
The provincial government seems to be afraid that they might be missing the boat on revenues. Other provinces, from day one, at least were upfront with their citizens about the fact that they were going to operate provincially run cannabis stores. That is not what the case has been in British Columbia.
For a government that says, “We are so transparent,” and wanting to consult and wanting be open and wanting to have conversations with stakeholders, I find it incredible that there was no public discussion about this at all. In fact, it was the exact opposite to this discussion all the way along, up until the bill finally got introduced with a week to go, week and a half to go, two weeks to go in our legislative calendar after sitting around for almost ten weeks waiting for this to come forward and another three weeks of a break where we were back in our constituencies doing work.
There has been ample time to try to have this brought forward, to at least have had even a preliminary heads-up to people at the beginning of this sitting that there was a move to change the legislation to, in fact, broaden it to talk about retail sales, but there hasn’t been.
I know members opposite feel that I’m droning on and on and on about the government being part of retail sales, but this is our only opportunity to try to shine a light on it and hopefully have people realize that there are some fundamental differences here to what was talked about, what was promised, what was discussed with the public, with municipalities very publicly several months ago.
When you look at the municipalities, it will be a very interesting dynamic when you consider that they can now tell the province whether or not they want to have a government retail store in their city. If this turns into a bit of a cash bonanza for the province, should the municipality be worried that discussions quietly behind the scenes turn into: “Well, we’d love to help you with your school project, but without those cannabis retail profits, it’s kind of tough to justify it to your city.”
Will there be conversations around hospitals? Will there be other types of conversations? We don’t know. The fact that the province is allowing municipalities to pick and choose whether or not they even sell the product — a federally legislated, mandated product — is the equivalent of letting municipalities decide whether or not they want a paint store in their municipality.
I can totally understand restricting municipalities. I know that in the city I’m from, in Kamloops, there’s no pre-zoned land for a neighbourhood pub whatsoever. Each requested pub comes in. They have to justify their site. They have to ask for a site-specific zoning amendment to be able to operate a neighbourhood pub. The neighbourhood gets to engage in that process. Sometimes they’re successful; sometimes they haven’t been successful. I’m okay with that because that’s that whole public hearing process. That’s making sure that neighbourhoods and communities take charge of what’s going in, within their specific municipality.
What you can’t do is just flat out say: “Although you are legally entitled to operate in Canada, although you are legally entitled to operate in British Columbia, you flat out can’t operate within the boundaries whatsoever, in any way, shape or form. There is zero process for you moving forward to try to get an operational licence within this municipal boundary.” That doesn’t exist.
You could see one of two things happen. You could see a municipality agree to have only private stores and not government stores — that doesn’t seem to be addressed — or only government stores and not private stores. That doesn’t seem to be addressed. Again, massive holes, massive questions in this legislation.
That really isn’t that shocking. I’m hard-pressed to come up with very many bills that have been passed, to this point within this government’s tenure, where there hasn’t had to be some sort of amendment or change after the fact, in spite of us pointing out that that’s what was going to happen. Even in a short time, it still turns around and actually has to be amended and happen.
When I think of things as simple as the municipal election act that had fundamental flaws in it and needed to be corrected — that’s the type of stuff I’m talking about. On a complex piece of legislation like this, compared to what that was…. I believe that’s factual — that there were some fundamental flaws within the municipal election act that were changed and that we tried pointing out.
That’s the problem we have — that these are very complex issues that we have around cannabis. In spite of how much time it’s taken to roll these out, there still seem to be some very large problems with it. There’s still some regulation that could happen — which, again, is problematic on something as new as this. We’re once again seeing pieces of legislation created, with massive authority for orders-in-council and regulation to be done, as opposed to debating possible changes, debating what’s working or not working in this House, the people’s House, to make sure that people’s views and opinions are being shared.
The fact that government wants to jump in on the retail side before there’s even an identified problem in attracting private operators to provide this service to communities is mind-boggling. Will the government need to stand in line and request a licence like everyone else?
If that’s the case, I can tell you right now that in the case of Kamloops, they’re lined up out the door, waiting to try to apply. Kamloops has identified that around maybe 20 stores maximum would be adequate to service everything. So will the government be prepared to stand in line and be number 25 in Kamloops? Or will the government find a way to get to the front of the line and say: “Deal with our applications first. Then you can deal with the private sector.” That hasn’t been identified in this either — how that’s going to operate.
The reason it’s a concern is because it wasn’t identified as even an issue three months ago or four months ago when the Solicitor General first started talking about potential rules and regulations that we could see coming forward in this session. He was absolutely clear. There would be no government retail of cannabis in British Columbia — 100 percent, full stop. They would be distributing. They would not be retailing it.
I think, as people get reminded of yet another broken promise — that they actually weren’t supposed to be in retail competition with government stores…. When the private retailers start to realize that the fix is in to make sure that they don’t get the prime real estate areas, that they don’t get the expedited rezonings they may need, that the government somehow manages a way to get to the front of line and gets to keep way more tax revenue than they’ve probably ever talked to the municipalities about, trying to offset costs….
I think the municipalities are going to have to, and probably will, start to think twice about this. Just like we’ve seen them review and look twice and have concerns about the employer health tax, yet another fact that UBCM came up with. I’m not inventing that fact. There was a big report. As they looked into that piece of legislation and that piece of taxation changes, the municipalities commissioned a report and came up with a lot of concerns.
What that shows me is that as the municipalities start to look into this shifting line in the sand that is creating an unlevel playing field between government retail and private retail, that is expanding government…. We have not even heard what the plans are for how many stores the government wants to operate, how many people they plan on employing, what the costs are going to be for that, how the government is going to fit out all these retail stores in such a short time frame as fall, what their expected rate of return is in operations. All of those fundamental questions have just vaporized away, almost like someone was using a vape pen.
That’s the problem here. We have 3½ or three months…. I’ll say three months. I’m not sure the exact date that it was first brought out in terms of suggested regulation. We’ll say it was around three months ago. It was quite a few months ago. The Solicitor General, to his credit, was trying to give people a heads-up of what to generally expect in the upcoming cannabis legislation. That was very clear. There would be no government retail. Very clear. And here we are, staring, with government retail coming right at us.
[Mr. Speaker in the chair.]
The problem, again, with all of that is that through all the discussions with municipalities about tax revenue shares, it’s been predicated on the federal government transferring tax revenues to the provincial government and the provincial government and municipalities discussing how the tax revenues will come into play.
Given that the first time the public or municipalities would have seen that there was going to be government retail, government profit centre, extra government revenues coming in on the backs of the private sector yet again…. I’m sure that municipalities will be interested to know how that revenue split will now work, given that they will be the ones bearing the brunt of the rezonings, of the applications, of the public worry, of the neighbourhood worry.
They will be the ones with the extra policing costs, with the extra bylaw costs, as this all rolls out and things settle out over the first few years. That would happen regardless of who is in power when you’re going from no legalized system to a legalized system.
Bottom line is this. I have some significant concerns around Bill 31, obviously. I have some significant concerns about the expansion of government when it hadn’t been talked about up until now, on the retail side of things. And I have significant concerns because, as the Solicitor General has even pointed out in the previous bill, this is not about protecting youth from getting access to cannabis. He’s confident that’s been covered off in the previous bill.
If he’s confident enough that private retailers are not going to be a risk to youth accessing it, why, oh why, other than the almighty dollar, is the government suddenly adding the clause in there that they want to be able to operate government retail cannabis stores? There is no public safety aspect to that decision, other than a consistent attempt to grab more revenue from a system that could easily be handled by the private sector.
Thank you for this time on Bill 31.
Hon. D. Eby: I rise with respect to second reading on Bill 31. I heard the member make a number of comments, and I also heard the member for Richmond North Centre make comments. I wonder if they sit in the same caucus meetings, because they are so far apart in their perspectives.
Actually, I think it paints quite a good picture of this legislation, which goes right up the middle between these perspectives: one, that nothing should happen, and the second, that it should be a libertarian, private sector–distributed and –retailed product.
I feel like I needed to respond to the member’s comments with respect to retail stores, being the minister responsible for liquor retail in the province. There is a reason why a number of municipalities in B.C. are considering only having a government store. It is because government stores have a reputation for safety, for integrity, for checking ID, for ensuring that those who are intoxicated are not served. It is that reputation that encourages municipalities to think, if they are faced with the situation of taking on a retail store following the federal government’s actions, that they would prefer that it be a government store.
The member paints this as being runaway government, out of control, attempting a tax grab. The fact of the matter is that this is a very significant expense for the government. It is a very expensive initiative, generally speaking, that is brought to us by the federal government. I think it’s totally appropriate that we do this responsibly and, if municipalities are in the situation where they want to ensure a responsible operator, that they could have a government store in their community.
With that said, we have a model that allows retail through the private sector as well. If they choose to have private sector sale, they may do that. Each city is quite a different place, just like each member on the other side has a fairly unique perspective on where we should be heading, in terms of the policy here.
I rise simply to say that I have total confidence in the government retail stores ensuring that minimum standards are met, addressing the problem that we’re attempting to address here, which is to prevent organized crime from being involved. There are also safeguards, on the private sector side, to prevent youth from coming into possession of cannabis and to ensure public health and safety and that that information is distributed.
I thought I would just respond briefly about why it was that the government would be looking at government retail as well as private sector retail.
With that, I move second reading of Bill 31.
Motion approved.
Hon. D. Eby: I move the bill be referred to committee at the next sitting of the House after today.
Bill 31, Cannabis Distribution Act, read a second time and referred to a Committee of the Whole House for consideration at the next sitting of the House after today.
Report and
Third Reading of Bills
BILL 18 — LOCAL GOVERNMENT STATUTES
(HOUSING NEEDS
REPORTS)
AMENDMENT ACT, 2018
Bill 18, Local Government Statutes (Housing Needs Reports) Amendment Act, 2018, reported complete without amendment, read a third time and passed.
Committee of Supply (Section A), having reported progress, was granted leave to sit again.
Hon. S. Simpson moved adjournment of the House.
Motion approved.
Mr. Speaker: This House stands adjourned until 10 a.m. tomorrow morning.
The House adjourned at 6:26 p.m.
PROCEEDINGS IN THE
DOUGLAS FIR ROOM
Committee of Supply
ESTIMATES: MINISTRY OF HEALTH
(continued)
The House in Committee of Supply (Section A); R. Glumac in the chair.
The committee met at 2:46 p.m.
On Vote 30: ministry operations, $19,606,664,000 (continued).
Hon. A. Dix: I’ll share this information with the member opposite. The member asked about health authority drug expenditures in our last session. I’ll just summarize for the 2017-18 year and then share the information with him in detail.
The PHSA, Provincial Health Services Authority, spent $446 million; the Fraser Health Authority, $32.67 million; Interior Health, $13.68 million; Northern Health, $7.53 million; Providence Health Care, $17.57 million; Vancouver Coastal Health Authority, $29.19 million; Vancouver Island Health Authority, $18.67 million — for a grand total of $565.37 million.
The member also asked last week about issues around private insurance, so we got a little bit of information for him from a 2016 report by the Canadian Life and Health Insurance Association that indicated there are two life-health insurers headquartered in B.C. Approximately 16,000 people are employed by the life-health insurance industry in B.C. That’s all of it, of course. That’s 16,000 out of a grand total of 148,600 in Canada. That gives a sense of that, and I’d be happy to share this with the hon. member as well.
N. Letnick: Thank you to the minister and staff for coming back on a Monday to continue this process of discovery — discovery for me and for my colleagues to try to see some of the knowledge that the minister has, and his staff, to share with us and all British Columbians.
As the minister knows, we have about 15 to 20 MLAs from both opposition parties that wish to ask questions over today and tomorrow. I will continue with the discussion on national pharmacare and B.C.’s position on it, or process to finding a position, for a little while, and then we’ll start introducing the MLAs and cycle through for today and then tomorrow morning as well. Where there are gaps, I will continue trying to fill those gaps with other questions. It might mean that the three wise men in the back of you, Minister, might have to hang around till tomorrow morning in case we continue with that then.
Ten percent of Canadians failed to fill prescriptions due to cost. Do we have a number for British Columbians as to how many failed to fill prescriptions?
Hon. A. Dix: There was a survey done in 2016, which is some information we have. They reported at the time: 5.5 percent of Canadians being unable to afford one or more drugs. In B.C., in that survey, which was conducted by a distinguished B.C. researcher named Michael Law, the proportion was 8.11 percent — at the time, the highest of all provinces.
I should say two things about that. There are occasions that are much higher than 8.11 percent, where people receive prescriptions and do not, for whatever reason, fill the prescription. This happens, and that isn’t captured by this. This is cost-related non-adherence.
It’s for these reasons why the government made the changes we made in Budget 2018 that will come into force on January 1, 2019, to reduce or eliminate deductibles for people between $15,000 and $30,000.
We had a discussion on that last week. Even though I know that the hon. opposition critic has asked that my answers be longer and more fulsome, I will refer him back to those answers then.
What they show is a public policy response to that that’s important and, I think, will be significant. We specifically had numbers that show people in that group were less likely, without knowing the reasons, to buy prescription drugs than their circumstances would have predicted. So that was a direct response.
As the member knows, because we have an income-based system that’s quite precise, in that regard, we’re able to direct that $105 million to that group of people. We think it will help address, at least in part, that part of the problem in British Columbia.
N. Letnick: Thank you to the minister.
If I understood correctly, we don’t have a specific number as to how many people were not filling their prescriptions before so that the change that the minister and the government has brought in won’t yield a particular objective. Let me ask it a different way. What is the objective of that increase in funding for $110 million, I believe it was? What specifically was the minister trying to achieve in terms of numbers?
Hon. A. Dix: The statistics. As the member will know, there are 240,000 better off, 80,000 receiving new coverage. That’s a significant improvement. What our data showed was…. It wasn’t specific. We know that there was non-adherence, but you would need survey data, in some cases, to know precisely what the non-adherence was. But it showed that there was a particular non-adherence between deductible levels of $15,000 and $30,000.
The policy has two specific and, I think, important results. One is to improve adherence, which is important. And when you eliminate deductibles, that has a significant effect — when you make it first-dollar coverage.
Can you imagine earning $15,000 after-tax income and then having to pay the first $300? In this case now, the PharmaCare coverage kicks in at the first prescription of the year. Secondly, if you’re at $29,500, which in his constituency and in mine, would be a lot, again, it kicks in at zero dollars and not at $600 in that case.
That’s the first set. The second set is a question of equality, or poverty reduction. In other words, you have a group of people who are not on income assistance. That group of people already has first-dollar coverage, not on disability, who will now have access to coverage. That’s not the only question. If they are, in fact, making the choice in favour of adherence, it means they have less for food or for other things, which are important for them as well.
If you look at the people who will most benefit from this, it’s people after tax between $15,000 and $30,000 a year who have some form of chronic disease. I think that’s a significant public policy step that has both of those purposes — better adherence and addressing a real gap in terms of equality that makes people’s lives more affordable and better.
N. Letnick: I appreciate the gaps that the minister and the government are trying to close off. If the minister had extra funds — and I know we’re always tight with budgets — when it comes to PharmaCare, are there other gaps that the minister is targeting to close off in the next year or two?
Hon. A. Dix: As I discussed a little bit last week, going over the challenges in detail, I think what’s also true is that in our society today, people in the next group, between $30,000 and $50,000, are clearly not well off in the context of the costs of society. That’s a significant thing that could be improved. The coverage could be improved. And when we talk about national pharmacare, that’s one set of things.
A second set of gaps, I would say, is, of course, access to prescription drugs — to particular prescription drugs. As we discussed last week, we’re facing over the next number of years, I think, very significant inflation in the pharmacare budgets and prescription drug budget, largely driven by expensive drugs for rare diseases and because, with the measures that we’ve taken — including myself, as Minister of Health, and my predecessor, Minister Lake — to reduce the costs of generic drugs, we’ve reached, really, the maximum in that regard.
In order to expand coverage and continue to add drugs to the formulary — which we are doing, and we did as recently as February — it’s going to require real steps. Those are really different questions, but they’re similar challenges.
So yes, there might be a desire to fill gaps. We’re going to have to see how this goes. But we wanted to focus our first action, which will come into place January 1, 2019, on this group of people for whom the evidence shows a lack of adherence overall. It doesn’t define whether it’s financial or not, but I think we can at least reasonably conclude that it is because of how much money they make. So we wanted to focus on that area.
We are also focusing on the considerable challenge, given the inflation of prescription drugs, of ensuring that the formulary meets the needs of B.C. citizens.
N. Letnick: Thank you to the minister. Part of the gaps that the minister talked about today — I think the minister was alluding to it and actually mentioned it in our last session together — was the higher cost of biologics and biosimilars coming in at a lower cost to help take over from the biologics, similar to the generic drug and branded drug combination.
Since I’ve received the privilege of this role, of course, I’ve been approached by several organizations and people on both sides of the issue who are concerned that the government is going down a path of forcing people to go onto biosimilars without leaving it to a decision between a doctor and a patient. Could the minister please talk about that piece?
Hon. A. Dix: Well, if we were dialing back to estimates 20 years ago, what those estimates would show, I think, is a debate about the use of generic drugs and whether, in fact, policies such as reference-based pricing that was introduced at the time and then maintained over a period of time — policies of the substitution of generic drugs, and so on — were acceptable or not. In fact, some of the same groups who are very concerned now were very concerned then.
I think we have to take every step to ensure that we reduce PharmaCare costs so we can address the issue, not for the sake of reducing costs but in creating opportunities to list more drugs. We’re going to continue to look at that, especially in the area of biosimilars.
That’s one of the areas we have to look at, like every government in Canada. I would suggest every government with a pharmacare plan in the world is looking at these questions. Some jurisdictions have advanced far more in the area of biosimilars.
But those issues are absolutely before the government — how to manage that, how to work with groups of patients and groups of doctors to deal with that on the one hand and to deal with the practical fact that biosimilars are not exactly the same as biologics, although they have been licensed to be equivalent. Clearly, they have a role in the future of health care and a positive one.
We’re trying to, as all governments are, balance those interests. But the idea that our government — just like the previous government, just like the government before that — isn’t going to take steps to pay less where we can so that we can cover more drugs or provide better drug coverage would be wrong. We are, of course, assessing the use of biologics and biosimilars in that light.
N. Letnick: I would congratulate the minister and his staff for looking, obviously, at biologics and biosimilars and the relationship and how we can provide some room, some fiscal room, by moving towards that.
The question, though, is one of forced compliance, one of telling patients — or not telling patients: “You now are getting a biosimilar.” I think Health Canada said — and I don’t have it in front of me right here, but I can find it a little later — that in the case of biosimilars, they should be a decision made between a physician and their patient. There are many organizations that are saying it shouldn’t be forced upon a patient. It should be a choice left between a physician and the patient.
Maybe the minister isn’t prepared at this time because he hasn’t concluded his analysis, and that’s fair enough. But let me ask it again. Has the government made a decision on changing people from biologics to biosimilars without leaving it to a decision between a physician and a patient?
Hon. A. Dix: In general, of course, it’s our goal to respect the relationship between patient and physician. I would say, though, that there are specific biologics, for example, that have a takeup of 0.5 percent in British Columbia and roughly 83 percent in Scotland. I think that if you look back to the case of generic drugs, there are occasions when there have been requests for exemptions, and there has been a consistent respect for that relationship.
But the question is: should there not be, for a public health care system, incentives to go in that direction? That’s something we have to look at, because if we don’t, then, effectively, we’re spending well over what we should be paying for the same medical purpose.
Remember, of course, patients are consistently free…. I’ll just give the member a personal example. Insulin has historically been covered — I take insulin — at a certain level in British Columbia. If you are prescribed a more expensive insulin that has the same effect — in my case, many years ago, a biologic — you will pay a higher price for that, and you’ll make up some of the difference. It came in, and it replaced other insulin, as a major player in the market. So government works on these issues all the time.
What we’re doing — the work we’re doing with biologics and biosimilars — isn’t different from that. It’s respectful of that relationship, but it also has to be respectful of the need that we have to find ways to cover more drugs for more patients. And that’s also a respect for the patient-doctor relationship — and not to be paying excessively for prescription drugs when it’s not required.
N. Letnick: Again, thank you to the minister. What I gathered from that, in addition to all the other nuggets, which were great, was that the government has not made a final decision as to whether or not they’re going to force people into biosimilars without their knowledge — or even with their knowledge. So maybe the minister can talk about that.
Assuming that I interpreted correctly — that no decision has been made as to whether or not there will be forced switching from biologics to biosimilars — can the minister outline if he or the government has any plans to consult further with the key stakeholder groups on this so they feel that they’ve been heard completely before government makes a final decision?
Hon. A. Dix: In fact, we’ve heard from lots of stakeholder groups. I don’t think, first of all, anyone’s prescription gets changed without their knowledge. I don’t know what circumstance that would take place in, but I think that’s not what would occur.
What occurred in previous circumstances, obviously, is that governments in previous cases with respect to generic drugs have started to cover the generic drug. That’s the circumstance, and that’s the change that occurs. I think this is an important discussion we have to have for the future of PharmaCare — for pharmacare everywhere. It’s an important discussion we have to have in the national pharmacare debate.
We spoke, I think on Thursday, about the potential for $4 billion in savings, which was suggested, I think, by the Parliamentary Budget Officer. It’s always interesting when people say that. The question I always have is: what’s the first dollar in saving? Tell me how you save $50, first of all, and how that then adds up to $4 billion.
Some of that, I think, is better negotiations — right? But some of that is also addressing generic drugs and issues on the formulary. We know that in the neighbourhood of 70 percent — a little more than that — of prescriptions today are generic, and they represent, in terms of cost, much closer to 20 percent. So we know where the cost drivers are.
Yes, we’ve listened and talked to groups, and we’ll continue to do so, but these are important decisions for government to make. We have to work. I think, as you go forward…. This is the experience of jurisdictions like Scotland that have gone forward and worked with patient groups and groups of doctors, and so on, who would prescribe prescription drugs to see that. Because, in some disease groups — mine included, if you will — you see frequent changes in dosage, and change things as you adjust on a regular basis, and in others, it’s more challenging. So we’ll be working with groups of doctors and groups of patients, of course.
In a general sense, it’s important, always, to maximize the public good here in the best possible way. That means saving money, as we have in generic drug changes recently, in order to do what we did, which is to list drugs that are very expensive but also in high demand, in particular by patient groups.
N. Letnick: Thank you to the minister.
Moving back to the national PharmaCare program questions, which I had set up. In the federal Budget Officer’s report, it talks about how the growth rate and the net cost of PharmaCare are “projected to slightly exceed that of current net drug expenditures for drugs…owing to greater access by patients to medically necessary prescriptions.”
What they’re talking about is that with the national PharmaCare program, as presented, you’d have more people being able to access the drugs, and therefore, the costs will actually go up, not down, because you have more people accessing the drugs.
The following factors are responsible for the initial decrease in costs. Stronger negotiating position. The minister has spoken about that. Generic drug substitution. Again, the minister has spoken about that, and that would include the biologic, biosimilars as well. Offsetting that, you would have increase in aggregate consumption — more people consuming — and expanded public coverage. Both previously uninsured individuals and those with improved coverage under the program would see a total consumption increase as well. There’s also an upside risk to the assumption of increased consumption.
So the jury’s out, basically, is what they’re saying. It’s not an exact science. It’s like anything else. There’ll be a lot of people putting in a lot of estimates.
My question to the minister and his staff is: have they — and this is the crux of the whole issue for me on the PharmaCare point — come to a conclusion as to whether or not a national PharmaCare program would actually increase or decrease the costs to British Columbians? I’m talking financial costs. I understand the benefits of more people being able to access more drugs, and that’s fair. That’s a positive. We can talk about that. But just specifically on the cost equation….
The reason why I ask, in part, is because of a paper by Dr. Steven Morgan et al., in his 2017 analysis. Dr. Morgan and his team say that lessons from the rest of Canada are similar. Quebec’s experience indicates that a mixed private-public system of prescription drug financing in Canada would improve access to insurance, which is a good thing — those are my words — while generating mixed results in terms of access to medicines and very negative results in terms of control over all expenditure. In contrast, a universal public PharmaCare program could save Canadians $7.3 billion per year.
He also says that would mean about $470 million savings for British Columbia if it was designed like universal public systems abroad, which are also achieving better outcomes in terms of access to medicines and out-of-pocket costs for patients.
In essence, what he’s saying is that if you do it based on the Quebec example…. That is what the national committee looked at, the Standing Committee on Health. Based on the report that I have here…. On one side, if you look at it based on the Quebec formulary, it’s actually going to cost $200 per year more for British Columbians, according to this report by Dr. Steven Morgan and company. However, if you do it purely on a universal public system, like other countries have done, he’s saying it’s going to save us $470 million, for the province of B.C.
You can understand why I’m reading this and I’m going: “Well, which one is it?” Given that you have all the horsepower behind you and beside you, I thought maybe you might be able to clarify that for me and for British Columbia.
Hon. A. Dix: Well, the parliamentary reports were done based on the Quebec formulary. The reason I think they did that was — it’s not just widely viewed — it is the broadest formulary of prescription drugs in the country, so it will give you the highest possible of prices. And that’s a significant difference.
Dr. Morgan has done some very interesting work in this regard. He’s from B.C., and he’s been a leader of the campaign for universal PharmaCare — always very honoured to get his advice. He’s made a strong case in his papers for just that.
I think there are two things to consider as you deal with that. One — the reason we are doing our own assessment of the parliamentary budget office report and of the information coming from Ottawa — is that provincial governments have more knowledge than anyone else because they’re involved in the current negotiations. They know what the current price is. They know what savings have already been realized through our own common negotiations and our own efforts in British Columbia and across country to reduce the costs of prescription drugs.
I think it’s fair to say that if you increase and have a national program, you would reduce the overall cost. It’s also fair to say — in fact, inevitable — that the cost to government would be higher. In other words, you would be reducing or eliminating the costs of private insurance, and you would be absorbing that into government. As members will know, that always leads to debate and discussion about its impact, right?
I don’t think that the analysis has been based…. Quebec has a particular model of PharmaCare; B.C. and Manitoba and Saskatchewan have another. They could have also been the basis of the analysis, as well, if you’d wanted to do that. I think the issue is that it is less expensive to do that for the country. I think that’s beyond any doubt that if you increased your buying power, you would be able to reduce costs.
The question is: how much? How would you shift the current amount paid for by individuals — which is, I think, $4 billion to $5 billion, more or less — and paid for by private insurers, which is a larger amount of that, onto the public system? How would you make that arrangement? That’s the challenge.
The second challenges are: where do the savings come from, and how are they applied? If, for example, you assume $4 billion in savings — or, in Dr. Morgan’s paper, more than that — where would the benefits for that be? And what would happen if those savings weren’t fully realized? Say they were $2 billion. That is also a significant number; it’s just not $4 billion. That’s a major discussion as we start to discuss this issue with the federal government.
We go into these discussions as supporters of a national PharmaCare program, but with our eyes open. We want to know what the details and the facts are and come forward to those negotiations in a constructive way, so that all levels of government that would take on that challenge could sustain it in the years to come.
Famously, in B.C. — it’s not that famous now — there was a dental program launched by the Social Credit government in the latter years of the 1970s, for dental care that they abandoned because they dramatically underestimated the costs of the program. We want to ensure that we have a proper understanding and that it works well.
The federal government, remember, is not saying — I don’t believe; we’ll see what they say: “We’re going to do a national PharmaCare program, and we’re going to take on the costs and the responsibilities and work it out and take those away from the provinces.” I don’t think that’s what they’re saying. Since they pay under $1 billion for various prescription drug programs now and the provinces pay $13 billion, I suspect they would want that $13 billion to continue.
The questions are: who pays the upside cost? Who pays for any increases and changes in the formulary? And how do you deal with that? There are significant benefits to national pharmacare. There could be benefits for patients. Certainly, there’d be benefits for the uninsured in the system, the people who don’t have private drug coverage. But at the same time, there are significant questions.
We’re going into this in a favourable way. We’re not going into it as opponents to the federal government. But we’re going to be, shall we say, contributing partners to that discussion, to make sure that whatever is resolved in it is in the best interest of people in B.C. and, of course, all of Canada.
N. Letnick: Does the government have an estimate as to what the financial benefit would be to British Columbia should it work out a deal with the federal government and the rest of the provinces and territories for a national pharmacare program?
Hon. A. Dix: I guess what I would say is that would depend on the deal. But we are doing financial work now in advance of the Health Ministers’ Conference at the end of June, where I believe Dr. Hoskins, the former Ontario Health Minister, may be joining us. In the weeks to come, I’m hoping to meet personally with Dr. Hoskins.
We’re working with other provinces but doing our own leadership work in that regard to look at some of those cost assumptions and cost questions so that we go into discussions fully armed. We’ll be making that information public in advance of those conferences.
N. Letnick: The federal Standing Committee on Health suggested in its report that the cost of a national pharmacare program — again, their suggestion — should be borne between both levels of government: 25 percent to the feds, 75 percent to the provinces. Obviously, with the share they have now, they would have to up their game quite a bit to reach this 25-75 scenario. I won’t ask the minister about whether he believes it or not, because it’s not his report, but just as far as information goes.
The minister did touch on one thing, though, that I need to ask about, which is…. Obviously, there’s a transfer. There’s a transfer from the individuals who are paying for their insurance, the private sector. People are paying out of pocket for drugs. And there will be a transfer over to government. Whether it’s provincial or federal, territorial, it will still be a transfer over.
The report does suggest some very controversial ways of seeing the transfer. Increased payroll tax. We don’t want to go there again. Increased corporation taxes. Again, we’ve just seen that, so it would be hard to go there. Raising GST. Reducing tax credits. This, they say, would be offset by, of course, lowering premiums, and out-of-pocket expenses. I’m not asking the minister to come here and tell British Columbians his plan is to raise corporate taxes and payroll taxes to fund a national pharmacare program.
When you look at the issue of how we get more access to more people in a more affordable way, a national pharmacare program — I believe, and I’ve believed for many years — is actually, potentially, a good way of doing that. The devil’s in the details.
I also believe the process is just as important as the result. As I said last week, there’s no sense in one government bringing in something with a process that isn’t exactly up to the best — I was going to use “process” again, but up to the best, anyway — and then at the end of the day just have another government down the road saying: “The process was flawed. The result was flawed. We’re going to go in a completely different direction.”
I think that’s a big credit to this minister — continuing the work that his predecessors have done and taking, for the most part, a non-partisan view to health care, which, again, I have to congratulate the minister on doing.
Having said that, and then knowing that the only way, or probably the most obvious way, to go to a national pharmacare program that the federal government has no intention of fully funding is to look at how the people are currently paying for it — which is, employers, employees, out of pocket, those kinds of things — how do the governments across the country transfer those costs over?
What I’m suggesting that the minister consider is, if the government really wants to find a solution to this, that they don’t go in it alone. They don’t go to the federal government and come up with a deal alone that then straddles or forces the result on the private sector in British Columbia.
Perhaps they might want to consider — here’s a good opportunity for the Standing Committee on Health — a bipartisan committee to look at this and come up with recommendations for the government; or the Public Accounts Committee, since there’s a lot of financial involved; or the Auditor General of British Columbia; or some combination of that so that the result of this, whatever the outcome is, is something that all parties can agree with if we are going to go ahead and sign a national pharmacare program. The last thing I want to see is that we improve access for people, but it gets blown up because of the process not involving all parties that need to be at the table. Maybe the minister can provide some comment on that.
Hon. A. Dix: First of all, this process has been advocated for by the federal government in its current budget. They’ve set up an advisory committee of their own, led by Dr. Eric Hoskins. Dr. Hoskins has sought, from provincial governments, nominees for that committee, and we have provided some. They haven’t told us who they are putting on the committee. We’ve provided names, and they haven’t told us who they’re putting on the committee. I will expect that they’ll do so soon. They’re in the first stages of their process. We are obviously doing some work in preparation.
The member is quite right. I wouldn’t think of commenting on all the tax increases proposed by a report written by a majority of Liberals and Conservatives and others — and NDPers as well, right? But he’s right in one respect. It is always the challenge. If you’re saving billions of dollars, some of those savings, presumably, would be from public systems, and they would help pay for the expansion of public coverage. Some of those savings would be from private systems. As the member will know, laws and changes are equal in their overall application but sometimes unequal in their specific application. This can be a challenge that we’ve debated from time to time, even in the Legislature.
That’s, obviously, a question that the federal government will have to look at, and we’ll have to look at with them. We’re in early days, though. It’s my expectation that we’ll involve British Columbians. I understand from the federal government that it’s their expectation that they’re going to involve Canadians as well. I’m looking forward to hearing — because we really haven’t heard from the federal government, other than the parliamentary committee report — the budget officer’s report and the declaration in the budget of support for a national pharmacare program and the appointment of Dr. Hoskins.
We really haven’t heard anything substantial yet. I’m expecting that we’ll hear something soon. In the meantime, our first step is to get our act together, our facts right, so that we can be contributors and do exactly what the member is suggesting we need to do in British Columbia.
N. Letnick: I think I have one or two more questions on this issue, and then we’ll move to community areas around the province.
Given the statement by, I believe, the Hon. Bill Morneau, the Minister of Finance, subsequent to this committee being put together on a federal level, which is that they weren’t looking at a national pharmacare program…. They were looking at filling the gaps. The minister, obviously, is closer to the issue because he has conversations with his colleagues as well as the federal Minister of Health. Could the minister comment on: are we still looking at a national pharmacare program implementation committee, or are we really looking at something just to fill the gaps?
Hon. A. Dix: I can say from British Columbia’s point of view that we’re open to all of those options. We just discussed an action that government has taken about filling gaps in British Columbia for low-income people, ensuring that they have access to the prescription drugs they need here. That’s one set of proposals.
There are all of the areas we’ve discussed, including the very significant inflation in expensive drugs for rare diseases, which is a health care financial risk. But it’s also very good news for some people who suffer from rare diseases, who, obviously…. The growth in that area of drugs means better services for them.
The short answer is that we know about as much as the hon. member about the federal government’s real intentions. We know that the select standing committee, which is made up of a majority of Liberal members of the House, proposed the national pharmacare program, that it was supported by Conservative members with a minority report and by NDP members with a minority report, so that’s a strong message.
We heard Mr. Morneau’s comments as well, and we’re waiting to hear and learn specifically more from Dr. Hoskins and from the federal Health Minister as we meet together in the coming months.
We also know that there seems to be an expectation that the federal government wants to act on this in advance of the 2019 federal election. This is what we know. Our job is to…. I am in favour of anything that improves coverage and reduces costs — anything. It doesn’t have to be my idea, but I’m in favour of anything, including things that would be short of it.
I think that my instructions are to support a national PharmaCare program but to do it in the best interests of B.C. That’s what we’re trying to do. We’re going to hear more in the next little while. It’s my personal commitment to the member that he will be consistently briefed as to the results.
N. Letnick: Thank you to the minister’s staff on the PharmaCare file. We will now move to a different part of the journey. We’re actually going to take a journey around British Columbia, starting with Vancouver Island. I will sit down and let our Vancouver Island MLA ask her questions.
M. Stilwell: Thank you, Minister, and thank you to your staff for being here and engaging us in this, I guess, discovery, as the critic mentioned. Obviously, I am the MLA for Parksville-Qualicum — sometimes, I feel, for the entire Island. Happy to do so.
The topic I have today is something I’ve spoken to the minister about prior, in stops in the hallway and when I can get his ear. It’s in regards to the ICU at NRGH. It’s been identified as having one of the worst physical plants in the country, from a review that was done about five years ago.
We currently have one of the oldest and most outdated ICU buildings in British Columbia. The current ICU only has nine beds or beds in rooms that are too small and not adequate for moving patients around and moving around with the equipment within those rooms. The location of the ICU at NRGH is such that patients who are moving from the emergency room to the ICU actually go through the front lobby of the hospital.
The current department doesn’t have any real privacy. It doesn’t have an area for families who are waiting to visit those patients that are in the ICU. The rooms are 50 percent smaller than the present standards. There is no reasonable place, like I mentioned, for families to wait and see their loved ones.
It’s the most outdated ICU in British Columbia. That being said, the emergency department is also one of the busiest emergency departments — the busiest on the Island — and served over 65,000 patients last year alone.
We have tremendous staff there who do an incredible job but could probably do a much better job if they had the proper facilities to benefit them. That quality of care is outstanding at NRGH.
The staff there have been through a fair bit of turmoil, we’ll say, in the last few years, and I think the minister knows what I’m speaking of there. It’s obviously favourable to build a new environment that will serve the patients’ needs as well as the staff’s, increasing that privacy and ensuring that the best possible care is there.
I’m sure the minister knows that there is a plan already in place to build a two-story building with the emergency located in the basement. I understand the phase of construction will be about a two-year construction phase.
I also understand that the project is estimated at about $28 million, and 40 percent of that will come from the regional hospital district. As well, the hospital foundation has committed to raising $5 million to purchase all of the equipment needed for the ICU.
What it comes down to is the commitment from the province, the approximately $12 million that is required from the province to make sure that this project gets completed. I’ll say that the hospital foundation has already raised over $1 million of their portion, of the $5 million. The NRG team is ready, and they have the schematic design complete. They just need the go-ahead and the okay from the Ministry of Health to proceed.
I’m wondering if the minister can confirm that for me today.
Hon. A. Dix: I thank the member for her comments about the staff at Nanaimo Regional General Hospital. She’s quite right that I’ve spent quite a bit of time there as minister and working on issues at the hospital since I became minister, learning about things that I didn’t know about before. That’s always a good thing. Mostly about electronic health records, but that’s another subject for another day.
We have approved, and are going forward with, a series of improvements at Nanaimo Regional General Hospital. The most important one that’s approved right now is the MRI building addition, which is $5.55 million. The proposal for the ICU, I think, is still at the health authority planning stage. But I’ve toured the hospital and have obviously talked in depth about issues at the hospital. The issues that the member raises are, I think, ones that…. Everyone at the hospital feels that the need for these changes is great.
I don’t think it’s the most out-of-date ICU in the province. There’s a several-hospital tie on that. And I think many of the member’s colleagues around the province would be able to say some things about theirs as well. I mean, what is true is that all of our hospitals, even ones that have been built more recently or added to more recently…. Many of them, at least, around the province, have been around for decades.
The buildings are highly used, and the way we deal with ICU has changed significantly at all of them. So the issues about proper spacing, about proper places for families and about the connection between the ER and the ICU at Nanaimo are in place at lots of places.
I’ll take the presentation from the member as advocacy for the project. It is before the health authority. I’m not going to announce it today because I don’t have it to announce today. But it’s one of the many health facilities we’re working on.
The most prominent on Vancouver Island, the prominent new project that’s remaining…. As the member will know, the previous government approved, and then I actually got to open, the Comox and Campbell River hospitals. The major capital proposal before the province on Vancouver Island, in the hundreds of millions, is the Cowichan proposal, which the member will know about as well.
M. Stilwell: Thank you, Minister. It’s too bad, because I brought my scissors. I was ready for a ribbon cutting. But that being said, I appreciate that there are needs all over our province, and health care is the largest need. Our health care budget is the largest in government. When we look at the other needs across the province, does the ministry have a priority list? Where would this particular project rank in that priority list?
Hon. A. Dix: The proposals would come in from each health authority. These are high priorities. You’ve seen, in recent times, some major announcements by the province. We made an announcement at Williams Lake on a major upgrade or renovation there, a lot of which is new hospital territory. We made a major announcement in Terrace, of course, and a major announcement in Richmond. Those have been the three initial major hospital announcements we’ve made.
There are also emergency room proposals throughout the Fraser Health Authority to address emergency room issues there and ICU proposals in communities from Trail to Quesnel to Nanaimo. Those are all significant. There’s not a ranking list. We look at need. These projects are proposed and come forward from health authorities. Then we assess them.
Of course, we have to then ensure that we have sufficient budget to pay for them in the capital plan. So a project such as Nanaimo is in that part of the process. I think the need is understood, as the member has pointed out. The health authority is working on that and will be working with us to see it funded. Obviously, it’s easier to fund a $28 million project, of which your share might be $12 million to $15 million, than it is to find funding for a new hospital. So frequently, these very emergency rooms and ICU proposals are being funded and worked on around the province, and that includes this one.
M. Stilwell: Does the fact of a hospital authority, if they are ready…? They have the money. The foundation has the money. Does that play into the role of the decision-making, if other funds are at the table and ready to go?
Hon. A. Dix: You see, I was going to do this for the member for Kelowna–Lake Country. I was going to stand up, and I was going to say yes and then sit down, but then I felt he’d be disappointed if I gave that precise and pithy an answer.
I’ll just say one more thing about it. The member knows this very well, and the former Minister of Finance, who’s joined us, knows it as well. On Vancouver Island and throughout the province, local authorities pay 40 percent of the costs. That’s a significant fact, you know.
I just met with the mayor of Dawson Creek recently. He told me that they’d already got their 40 percent for their proposal, and he couldn’t understand why the previous Minister of Finance had never approved it. I defended the previous Minister of Finance. I said: “I’m sure he had his reasons.”
Obviously, it’s different in Metro Vancouver, where we have very significant proposals. Because Metro Vancouver taxpayers pay for transit and other things, there’s a different situation there.
It’s absolutely right that the work of foundations…. I just need to say the work of the Richmond Hospital Foundation, in that case…. Around the province, including in Nanaimo, which has an excellent foundation, they play a very helpful role, obviously. The more that they can do, and so on, absolutely encourages this, and the work of the foundation in Nanaimo is really extraordinary.
J. Isaacs: This is picking up on Eagle Ridge Hospital and the expansion plans there. I know the minister is aware of the situation. There was a master site concept plan that was completed in 2013, and the community has been operating under that master plan ever since. The master plan cost $150,000, of which $75,000 was raised through the Eagle Ridge Hospital Foundation.
There were three key priorities that were identified in the 2013 plan. First was the expansion of 216 new residential care beds. Second was the $27.6 million expansion of the emergency department plus an additional $5 million that was going to be raised through the foundation, and that work has already begun. Then there was construction of a community health centre, which was paused by Fraser Health in 2015.
The master site concept plan included the sale of one lot on Eagle Ridge Hospital known as C2, with the proceeds of that sale of that land to be used to raise and pay for the $27.5 million.
There was an open house on March 7. Most of the people who were attending the open house — including the various stakeholders, who have been involved one way or another since 2013 — were expecting an update on the approved plan. It turned out that the purpose of the open house meeting was essentially to begin the process of applying to the city of Port Moody to amend the official community plan and change the designation of two large lots of land at Eagle Ridge Hospital from an institutional designation to a residential designation, thus allowing the construction of two 26-storey residential towers.
As I understand it, there was no community engagement process in advance of the Fraser Health Authority going to the city of Port Moody to apply for an amendment to the official community plan, even though this project has been affecting many stakeholders for many years, ranging from community members, partners and clinical leaders. The entire issue has become quite controversial.
I’m wondering if the minister can advise who actually owns the land — I believe it’s 10.5 hectares, approximately 26 acres — and if the minister could advise why the scope of the work of this project changed from the sale of one lot, known as C2, to the sale of two lots.
Hon. A. Dix: I’m delighted to get this question. It’s one of my favourite questions so far. You know, other than those…. Let me rephrase. It’s one of my top-ten favourite questions so far.
As members will know, prior to the last election, the previous government made a series of announcements of capital projects that were to be paid for not out of the capital process of the province but out of the disposition of assets from the Fraser Health Authority. The projects, of course, were announced in a number of Fraser Health communities, including Abbotsford, Burnaby, Langley. And Peace Arch, I believe, and of course, Port Moody and Eagle Ridge. They made the announcements with the intention of finding the money by the disposition of assets. This direction and this plan came from that time. They needed that amount of money to pay for it.
With respect to the question at Eagle Ridge, wherein the Fraser Health Authority has engaged both with the foundation and with the city of Port Moody, they have to meet the local test in order to be able to do what they’re asking to do. It’s up to them to do that.
Obviously, the problem for Fraser Health is that the previous government announced a bunch of projects not long before an election, and this is where the money was to come from. Now comes the more perilous task of finding the money, which falls to the Fraser Health Authority today and, I guess by extension, to me. So that’s what’s going on there.
It’s an absolutely fair public process. The demand and the requirement for the money came from those decisions made by the previous government — decisions, by the way, that are eminently supportable. We need that work done on the ER at Eagle Ridge. Anyone who’s been there knows that. My colleague from Port Moody–Coquitlam has been advocating on this very question, on behalf of the foundation and his community, because of the concerns raised. It’ll be up to the Fraser Health Authority to meet those concerns now and up to the democratic process locally to see that that’s done and dealt with one way or another.
The further challenge with the sale and disposition of assets, as we’ve seen in other parts of the province…. It’s not a problem, but there has to be and would be a process involving First Nations, as well, if the decision is ultimately approved and taken to sell assets.
That’s the process. The amounts and the targets of the money were defined by the capital decisions announced prior to the last election. The Fraser Health Authority’s business job now is to follow through on that and to find the resources available to make those, just as it is in other health authorities.
It raises significant questions. As members will know, significant lands were disposed of as an extension of government policy in 2013 and ’14. If one were to review the value of the land sold in those periods to its current assessed value, you might argue that those decisions were not wise decisions. On the other hand, the facilities being upgraded using those moneys are obviously important facilities, and those are the choices governments make all the time.
We’re listening to the community. We’re listening to the MLA opposite — to the MLA for Port Moody–Coquitlam, of course, who is advising us — and respecting the local processes. That’s where the project stands.
J. Isaacs: I think that was part of the controversy, that there actually wasn’t any discussion with the stakeholders. They were under the impression that one lot would be sold, which would raise enough money for the $27.5 million plus the foundation. That’s where the issue is coming from. The key stakeholders weren’t involved in the decision-making.
Just back to the First Nation. Has the First Nation signed off on the sale of the land, and is that going forward? Then the next question would be…. I understand it’s about $70 million to $100 million from the sale of the two lots. Can the minister advise if that money will remain in the Fraser health region or if any of that money will go outside of the Fraser health region?
Hon. A. Dix: The money would remain in the Fraser health region should that occur, of course. While that amount of money exceeds the amount of money, for example, for the cost of the ER project, the previous government generously made significant promises throughout Fraser Health, which we are attempting to meet with actual action as opposed to promises, which is always an important challenge in these circumstances.
The member’s quite right. What we’re talking about…. This has been a process that’s taken place in a number of places. For example, at 70th and Cambie in Vancouver, there was a significant disposition of land that was purchased by Omni Corporation, which is being used, in part, to finance other projects, including the hospital construction project in North Vancouver, the hospital construction project in Richmond and long-term care.
Those are the kinds of things that would be funded out of this — all of the disposition of assets should that process go through. That has many steps to go, including the very important step at the city of Port Moody, another important step with First Nations. Should that occur, then the money would stay in Fraser Health.
J. Isaacs: Could the minister just confirm who actually owns the land there?
Hon. A. Dix: Fraser Health.
M. de Jong: Thanks to the minister and to the team assembled.
I actually had a few questions about how this particular project has evolved. The minister has highlighted the fact that an announcement was made. I had to be reminded by going back to some of the Fraser Health documentation. It was the approval of the business plan which the minister, I think, will confirm signifies that a project is fairly well advanced in terms of where it is in the planning process.
The significant expansion of the hospital emergency department at Eagle Ridge from 19 to 39 and a description of the work…. My colleague has pointed out Fraser Health contributing $22.6 million and the foundation contributing $5 million.
It seems that the anxiety that has arisen of late relates to the fact that the folks involved in the foundation and in the community were proceeding on the basis of a certain set of assumptions that were captured by the original master plan. The communications material sent by the foundation to the public suggests that that master plan — which, as we’ve heard, they financed half of — has changed rather dramatically and has changed without really any notice to them at all.
In fact, the letter they sent out to the public says that we — that is, the foundation, alongside the public — learned about the proposed sale of the additional land and its development use at the open house on March 7, 2018.
I was listening to the minister’s answer, and it seems to me what the minister is saying is that from the outset, the package of land that is now being prepared for sale was always on the table and always being proposed for sale. That is not my recollection. I suppose, more importantly, that is not the recollection of the foundation.
Will the minister confirm the concerns of the foundation — that the amount of land actually being proposed for sale is significantly more than was contained in the original master plan upon which the foundation and the project were intended to proceed a year ago?
Hon. A. Dix: The member is very interesting. The member will know that the discussions he’s talking about date back to 2013. A series of announcements were made by Fraser Health that were going to be paid for out of the disposition of assets, including in Langley, at Peace Arch, in Abbotsford, in Burnaby, in Coquitlam, and to be paid for, by those amounts, by both the sale of land…. Those promises and those projects were all announced prior to the last election.
I think he’s correct that people on the foundation side are frustrated with the process. I agree with that. I think they’ve communicated that to Mr. Marchbank, the president and CEO of Fraser Health, who has met with them. But what Fraser Health requires — out of the disposition of assets out of its own resources, which all of these projects were approved for — is sufficient resources to complete all of them, not just the one at Eagle Ridge. That’s the reason for the decision.
I understand from Mr. Marchbank that the sale of these lands does not affect future development at Eagle Ridge Hospital. That’s an important question that he has had an exchange with the foundation about and has had a personal meeting with the foundation about since then. The concern of the community — I absolutely well understand. It’s the obligation of Fraser Health as well, though — and I think the member would agree — to pay for commitments to capital improvements that have been made through the money that it either has in its own budgets, in existing budgets set aside, or through the disposition of land. That’s what’s being proposed here.
They’re in a local process now. They’re engaged with the foundation now. They’re engaged with the city of Port Moody now. It’s their obligation as a health authority to get that done, so that we can pay for all these important…. Particularly upgraded emergency rooms, not just at Eagle Ridge but around the Fraser Health Authority.
All of the money that might be benefited from here is to do that work. That’s why there has been some sale of land that’s either taken place or will take place — in order to pay for that. That’s what this is about.
The member’s quite right that members of the hospital foundation are not happy with a proposal to sell that land, or at least didn’t feel fully consulted. That’s something that Mr. Marchbank has attempted to correct by engaging in a consultation process with them and the city. The intent is to pay for emergency room upgrades throughout Fraser Health, including at Eagle Ridge.
M. de Jong: It might be a good opportunity to explore briefly whether the internal processes for the approval of the disposition of public lands are any different under the present government than was the case in the past. The member and some of his colleagues, certainly in the past, expressed their views on the advisability. I don’t think, to my recollection, I ever shied away from confirming that the decisions to dispose of public lands required ministerial approval and cabinet approval. Is that still the case today?
One could be forgiven for listening to the minister’s answers and being left with the impression that this falls exclusively to the jurisdiction and the authority of the health authority. But is there a ministerial sign-off, a Treasury Board sign-off, as there was in the past, required in order to dispose of public lands — in this case, significantly more public lands than was originally the case when the foundation agreed to fund $5 million?
Hon. A. Dix: Interesting facts. When properties are part of the release of asset program, which the minister will well be familiar with — which was a government policy, in part, to assist the financial balance sheet of the province at the time and, in part, to create opportunities just like this one — then there is a cabinet sign-off.
However, for many years, health authorities have had discretion to buy and sell property within their own domain when they’re not part of that program. That’s been going on for years — I understand, from my staff — including the time when the Minister of Finance was there.
This particular project I don’t think is part of the release of assets program. But there’d be no question. I mean, ultimately, the buck stops on health authority decisions with me, and I accept that responsibility.
M. de Jong: Then I suppose the logical question that flows from that is: at what point, if at all, did the minister or the ministry sign off on the expansion of the amount of lands being made available for public sale and redevelopment?
Hon. A. Dix: I understand, from staff, that the original proposal was 3.8 acres, and it’s now 4.2. It’s somewhat larger. That decision was made by the Fraser Health Authority. Again, the responsibility ultimately lies with me, and I’m answering questions in the House, and I speak to that.
That was the difference, and that was the change. That said, for people on the foundation, there are some concerns. But what changed, I think, between 2013 and later was considerable demand on the Fraser Health Authority to pay for projects outside of the capital plan project process of the government. The member will be well familiar with that.
All of the projects in question, of course — these emergency room projects across Fraser Health — are important and valuable projects as well that we continue to support.
M. de Jong: In its communication with the public, the foundation said the following: “This plan is very different and does not reflect in spirit the original agreement endorsed by the board of directors of Eagle Ridge Hospital Foundation.”
These are now my words, not those of the foundation. That strikes me as the words of an organization that may well be rethinking its contribution to the project. Has the ministry or the health authority or both…? Are either concerned about the possibility that in light of the changes that have taken a major donor by surprise, that has put the project in jeopardy?
Hon. A. Dix: First of all, nothing’s signed off, of course.
The commitments to all of these emergency room projects and other capital projects in Fraser Health were made principally by the previous government. We’ve started one concept plan process in Surrey, for a second hospital in Surrey, that the member will be familiar with. But these capital projects in question that we’re looking to pay for, about these disposition of assets, were decided by the previous government. I don’t say that with any criticism. That’s the fact. So it’s the obligation of Fraser Health, in consultation with us, to address that.
Are we concerned that there’s public concern? Yes, always. And we should be, right? The shift in both the amount of land being considered here and public concern about that is relevant. It’s relevant to the approval process in the city of Port Moody, and it’s relevant to all of us. Certainly, MLAs, including the MLA for Port Moody–Coquitlam, have raised those specific issues with me.
As a result of that, Mr. Marchbank, the outstanding president of the Fraser Health Authority, who alas is leaving us in October, has met since with the foundation and will continue to, because we work closely with hospital foundations everywhere on projects just like this.
The short answer is: I’d always be concerned about that, and we have significant way to go here before the land, if it is sold, is sold.
M. de Jong: A couple of timing questions. I’m ultimately going to ask the minister about the timing of the project itself. When it was announced just over a year ago with the business plan approved, the notion would have been to proceed to procurement shortly thereafter.
Before I ask that question, though, I might ask about the sale of the lands. The impression within the community is that they will be offered for sale in short order. What can the minister advise the committee about the timing around the disposition of these lands?
Hon. A. Dix: In terms of the sale of the land, that would depend. There would be, on the sale question…. Should approval be received and should they finally go forward to sell the land, that still requires discussions with First Nations, as the member will be well familiar, to address those questions. So that’s the issue there.
We’re optimistic with respect to the emergency department expansion that that will happen, that the process will happen relatively soon. We’re optimistic about that.
M. de Jong: The minister began by qualifying his ability to give an opinion by saying: “Should approval be received.” Approval from who?
Hon. A. Dix: Well, with respect, there’s an application before the city of Port Moody, for example. That’s an approval that is required in terms of the change in status of the land. So that’s the process we’re talking about.
There’s a public process now before the city of Port Moody, I understand. So even if you got to that phase, it would still require, in terms of the change of use — I think you’d call it — on the land, going through that process, and that’s going on now. That’s what I believe I was referring to.
M. de Jong: Does it follow, then…? I think the minister is referring to a rezoning application that is being considered. He’s indicating that is the case. If I’m not entitled to do this, the minister will, I’m sure, correct me, but that sounds as if sale of the property would not occur until following a successful rezoning. If that is so, then the project will not begin until the lands have been sold. We can start to draw a timeline that is stretching out years, in fact.
I may be wrong, but I think I heard the minister say this project won’t proceed until the land has been disposed, and that won’t happen until such time as the city of Port Moody has approved the rezoning of the land. Do I essentially have that chronology correct?
Hon. A. Dix: There are two different sets of questions, really. The previous government made a series of announcements that were to be paid for largely through the disposition of assets. Should that disposition of asset be not less successful but less fulsome, then the Fraser Health Authority will have to seek other means, either from working capital or other to pay for the projects. That’s always the case for this kind of announcement, and it affects projects — not just at Eagle Ridge but other projects in the Fraser Health Authority.
I’m optimistic that these excellent projects will proceed. The Fraser Health Authority, I think, has some work to do, as is reflected in the documents that I’ve received and that the member for Port Moody–Coquitlam, the member for Coquitlam–Burke Mountain and the member have raised in this House — that there are some local concerns that Fraser Health has to start to address. They’re attempting to do that, and I’m hopeful that they will be able to do that, because these are important projects.
If they’re not…. If the amount of money that had been set aside for these projects is not obtained in the way that was originally intended, then we have to find other assets and other resources to pay for these projects, of course, but I’m hopeful that we’ll be able to get that job done.
M. de Jong: Let’s just spend a moment, then, on the valuation of the asset, the new expanded land asset, being offered for sale. Again, relying on whatever experience I might have, I know that at this stage of the game, there will have been valuations done on the value of the property.
We on this side of the House can speculate about what that is, but on what basis are the ministry and Fraser Health proceeding with respect to the range? I realize that it’s always a range. What is the range of value they have assigned to the lands being proposed for sale?
Hon. A. Dix: The approximate difference in terms of the rezoning value is $56 million. That’s what they’re hoping the dispositions of lands will bring. That’s more than the original $35 million, which was, I think, in the original business plan from 2017. The difference is simply used to pay for other commitments that have been made for emergency room upgrades, and it’s not sufficient for that. There are other dispositions that were proposed to pay for emergency upgrades that had been previously announced around Fraser Health.
M. de Jong: Again, to ensure that I’m understanding this correctly. The expanded land package now being proposed for public disposition…. The minister is advising the committee that his information is following the rezoning of that land in the manner in which Fraser Health is seeking. The estimated value of that land is $56 million. The minister is — he can do this himself, on the record — indicating that that’s the information.
Has there been a strength-of-claim analysis done? What can the minister say about the accommodation costs associated with the sale of these public lands?
Hon. A. Dix: Those discussions have started. There’s really nothing that I can say about that right now, except that that’s a process that the member will be familiar with. We’ll be going through that process in the coming months, in part dependant on decisions made at the local government level.
M. de Jong: Not wanting to, heaven forbid, be accused of trying to trick anyone. I think what I have heard the minister say…. I may not have put this to him in as clear a term as I should have, but I think he is saying to the committee that these lands will not be sold unless the city of Port Moody grants the rezoning application that Fraser Health is bringing before them. If that’s not the case, then he can correct me. I think that is the impression he has left the committee with.
Hon. A. Dix: Like anyone selling land, there are a variety of considerations, especially when a public body sells lands. One of those considerations is the value of the land. Obviously, Fraser Health, because it wants to pay for the significant commitments made by the previous government before the last election, has to maximize the value of the disposition of land to do that. So they’ll be trying to do that.
Should that process not go forward, for whatever reason, they’ll have to reassess. But there are circumstances in their situation. That just makes sense, right? They’ll have to seek…. In order to pay for all of those considerable commitments that were made, which were all excellent commitments and ones that we’re proceeding with, should they not get the value from that land or make a different decision, then they’ll have to assess that situation once it’s done. They’ll certainly do that.
That’s the process that I’m talking about. I don’t think it’s been decided what would happen under those circumstances, but obviously, Fraser Health wants to proceed with these ambitious proposals that were made by the previous government and supported by this government. They’re seeking ways to do that out of their own assets.
M. de Jong: Let’s come back to the timeline for the project, because people will be less concerned about the conversation the minister and I are having than with an answer to the question of: “So when does this all start?” Again, I expect the minister has a chart from the Health Ministry’s perspective. There is certainly one, I expect, from the treasury branch perspective, outlining when projects are anticipated to come on line through the procurement stage and into construction.
When does the minister anticipate going to market to procure for this much-needed emergency room expansion? When does he anticipate construction beginning?
Hon. A. Dix: Because we want to be clear, and people have been waiting a long time there for this expansion, I think the expectation is that the construction process will begin before the end of this calendar year, which is 2018 — not the fiscal year, the calendar year. That’s absolutely what we’re working towards. That requires some approvals that are both building approval and other approvals from cities and so on, but that’s the intention now.
These projects were always contingent — always contingent, regardless of what approvals have been provided — on having sufficient money to pay for them. That’s always the case, as the member will know, whether they’re in the ten-year capital plan process or in a process such as this, where health authorities are using their own capital assets to pay for facilities. That is, in part, the cause of the delay, but I’m optimistic that we’ll be proceeding soon because these are important changes that need to be done. The people of Coquitlam, Port Moody, Port Coquitlam and everyone else served by Eagle Ridge Hospital deserve to see that happen. Did I forget to mention Anmore and Belcarra? I think I did.
We’re optimistic that we’re pushing forward on this. It’s good news for the people in the region, and we want to continue with that process.
M. de Jong: The minister’s view is that the rezoning application that needs to move through the city of Port Moody, the marketing and sale of the land and the actual procurement of a contractor to perform the construction work will all occur in the space of the next five or six months, with a view to having construction underway before the end of the calendar year?
Hon. A. Dix: Many of those things are concurrent processes, of course. We’re talking about the expansion of the emergency room at Eagle Ridge Hospital, which is, at a technical level, a different question than the others. But those things will happen concurrently, and that’s what we’re pushing towards.
M. de Jong: The estimate that the minister provided to the committee of $56 million…. I’m sure he received that information from capable sources.
Others have bandied about a somewhat larger amount, but let’s use the $56 million figure for the moment. The project, at the time the business case was announced, was estimated to cost in the neighbourhood of $27½ million or $28 million.
Just again, for those that will be interested in this, I don’t think the minister has been shy about acknowledging that funds realized from the sale of these public lands would be available for use elsewhere in Fraser Health. They might be deployed in Hope or Boston Bar or elsewhere, anywhere that you can think of, in Fraser Health. They would not….
Interjection.
M. de Jong: We’ll come to that in a moment.
People should not cling to the notion that the funds realized from the sale of these lands at Eagle Ridge will be deployed for improvements in and around Eagle Ridge.
Hon. A. Dix: No. I think that…. First of all, just as an example, we’re spending approximately $1.1 billion on the Royal Columbian project, which benefits people throughout the region.
There will be occasions when money is spent in one part of Fraser health region that’s realized in another part. This frequently happens. For example, the sale of land, which occurred under the previous government, the previous Minister of Finance, in Vancouver is being used significantly to pay for the projects in North Vancouver and in Richmond. That’s consistent with that. But all of the money in question would stay in the Fraser Health Authority for use by the Fraser Health Authority to improve facilities in the Fraser Health Authority.
I think that people, on that question, are pretty generous and open-minded, just like people, such as myself, who live in East Vancouver and may drive to Langley and need services at Langley Memorial Hospital. That’s true of people all over our region. I think that people in the Fraser health region want to see facilities and emergency rooms upgraded throughout the Fraser health region.
M. de Jong: We heard a few moments ago, Mr. Chair, from my colleague who referred to the inclusion in what I’ll call the original site master plan, the master site plan, the provision for a community health centre on the lands. The information we’ve received is that the new master plan, I’ll call it, that has been prepared — and, apparently, is now forming the basis for moving forward — makes no provision for the construction of a community health centre at Eagle Ridge Hospital. Is that the case?
Hon. A. Dix: I think that the current project before us…. Of course, the member is referring to something that was developed in 2011 and ’12, and ’13 in consultation with people. The first project that’s come forward is the emergency room expansion, which is the priority from Fraser Health. There’s nothing in that…. That’s nothing but good news, and that doesn’t preclude anything else.
As the member will know, in the considerable passage of time between 2013 and 2017, it was only weeks before the 2017 provincial election that an announcement was made on the first part of the master plan.
M. de Jong: Actually, I’ll correct the minister. The master plan that I’m referring to also included a significant expansion of the residential care beds, which, in fact, occurred. A key part was completed in March of 2016 — the emergency department expansion being a second component of that.
The community health centre. People want to know, and I think the minister is in a fairly definitive position to make clear that the master plan that the foundation helped finance has been changed, and the master plan that the health authority is now operating on the basis of does not make provision for the community health centre. There may be reasons for that, but that is the information that has been provided. I simply ask the minister to confirm that.
Hon. A. Dix: Well, I have no intention of confirming that. In fact, the member is correct on the residential care beds. That’s great, No. 1, and No. 2 is the emergency room. Presumably, when we proceeded with residential care beds, that didn’t preclude the emergency room, nor does proceeding with the emergency room eliminate any other parts of the project.
The fact is that we’re going to see, over the next number of years, community health centres, primary urgent care centres and expansion in community care throughout the province, and that will absolutely include the Tri-Cities.
M. de Jong: Well, I suppose that all of us will be watching with interest, particularly people in the area, to see whether the timeline the minister has alluded to will be met. It’s not my purpose to needlessly politicize the conversation, but there is a measure of skepticism.
The track record of another government for meeting timelines a few decades ago was not strong. So when the minister stands up and says, “We’re going to have construction underway before the end of the calendar year,” I hope he says that from an informed perspective and isn’t simply trying to provide comfort in the month of May in the hope that people will have forgotten what he says.
I think it’s very optimistic. The minister can say: “Oh, some of these are concurrent processes.” The minister left me with the distinct impression that the project, as it stands now, is contingent upon a rezoning application.
Consultation with the First Nations — look, if the minister and the government have found a way to expedite those processes, good on them and good on the minister. But it would be unfair, I think, to hold out to people who have been working to advance this project that something is going to happen along a timeline that is not necessarily realistic.
The good news is we won’t have to wait long. Five months from now, four months from now, we’ll have a sense of whether or not the minister was being accurate or overly optimistic.
I have one other line of questioning, but I get the sense that the minister wants to respond to my submission.
Hon. A. Dix: First of all, as you point out, the construction may well be independent of the sale, right? We have to pay for things. That’s important, and we want to proceed and get appropriate assets.
Secondly, I agree that previous governments have sometimes taken too long on projects. For example, in Williams Lake, a concept plan came forward in 2014, and it was on my desk in July of 2017, with no action having been taken. And a concept plan was put forward in 2014 in Terrace, and it was on the desk of the Minister of Health for multiple years until we took action within a short period of time to approve it. Equally in Richmond, people have waited for a long time, and we proceeded rather quickly on that project.
Those are important projects. I know what the member is saying. The member from Abbotsford is saying: “When, oh, when are they going to approve one of these projects in an NDP riding?”
I would say that those are examples of moving forward with projects in an effective way, and that’s what we’re going to attempt to do. It’s the professionals at the Fraser Health Authority and the professionals at Vancouver Coastal Health, for another of these projects, that are going to determine that.
When I became the Minister of Health, one of the things facing us was the decision around Royal Inland Hospital, the next phase of construction at Royal Inland Hospital. The member will remember that well. One of the things facing us was that there were lots of people saying they didn’t like the way it was being procured and everything else. What I said was: “We’ve been waiting a long time at that hospital, we need to continue to pursue, and we’re meeting deadline after deadline after deadline.” Hopefully, that will be the case here. It’s a high priority for the region, and ultimately, people have to proceed and take care of things.
I’m the opposite of optimistic on these questions, right? In the case, for example, of decisions we’ve made on surgeries, and so on, before announcing it, we asked that the health authorities meet the new levels for a couple of months before we would announce the new levels of surgery.
I agree that optimism is often positive in politics but sometimes unwise. So I prefer not to be optimistic but merely positive and determined in our approach. Hopefully, it will be successful at Eagle Ridge, as it has been in Terrace and other communities, such as Fort St. James, where we we’ve been waiting ten years since concept plans were developed.
M. de Jong: Last thing. Similarly, with respect to the disposition of public lands, I am genuinely seeking only a status update. It does relate to the site in my hometown of Abbotsford, the old hospital site. I don’t expect the minister to have this top of mind, but there may be someone sitting behind him or in proximity to him that can provide a brief summary on what the status of the disposition of those lands are.
Hon. A. Dix: On that, I was out visiting Abbotsford recently and meeting with some people on these issues and many others. There is a First Nations consultation taking place. We have some more information to get, but perhaps the member would appreciate getting a full briefing on where the project stands right now from appropriate officials. We can take it that way, or we can wait a few minutes for some additional details.
M. de Jong: No, I think in this case I will accept the minister’s kind offer and avail myself of the short time with his officials, or a brief written report may be sufficient. Then I can pose any additional questions. That would be fine.
The Chair: All right. With that, we’ll call a recess for five minutes and convene after that. Thank you.
The committee recessed from 4:33 p.m. to 4:41 p.m.
[J. Rice in the chair.]
J. Thornthwaite: I have three questions for the minister. The first is a follow-up from the Mental Health and Addictions estimates from last week. I was deferred to ask the Minister of Health this question with regard to addictions and recovery facilities. I referenced a facility that approached me. She was worried, actually. Her particular facility was going to get shut down for a series of reasons that she’s unclear about — or that were not made specific.
My specific question is to the minister. On one of the pages of the letter she got, on her so-called rejection letter, was: “The documents provided do not reflect that of an evidence-based individualized program.” My question is: what does “evidence-based” mean?
Hon. A. Dix: The member is referring to a particular facility. Sorry, I didn’t hear her identify the facility. I just may have misunderstood that question — and who sent her a letter rejecting the facility.
J. Thornthwaite: This letter was written by the Fraser Health Authority, health protection branch. It was signed by Nicholas Birch, licensing officer, community care facilities licensing, Fraser Health Authority.
I’m assuming that part of this is kind of a form letter, and you pick reasons according to whatever the facility is. But my question was specific to what “evidence-based” means. It says: “The documents provided do not reflect that of an evidence-based individualized program.” I just was wondering: what is evidence-based? I see the term “evidence-based” a lot when it comes to these types of facilities. I’m just wondering what the definition of “evidence-based” is.
Hon. A. Dix: Generally speaking, and what I would suggest to the member on this specific case…. It’s impossible, without seeing what’s being reviewed, seeing what the full context of the letter is, to define what the licensing officer may be saying. But generally, as I understand “evidence-based,” it’s based on the best available evidence and practice. That doesn’t apply in these cases. It applies broadly to actions we take — everything from prescription drugs, which we were talking about earlier, to acute care, to everything else. So that’s generally what is meant by it.
I’d be happy, if the member wants to provide the background, to provide a response, in question, that lays out what the licensing officer would have intended. It’s really, really unfair for me to even comment on that without seeing all that. But should the member provide it, I’d be happy to get her a response.
J. Thornthwaite: Yes, I will do that. I’ll give you a copy of the letter and then maybe my specific question.
As I said, I’ve seen the term “evidence-based” a lot. Oftentimes it refers to a different type of addiction treatment, a philosophy that is not necessarily specific to what they’re doing. The question that she had was: what exactly was that? So I would very much appreciate an update from the minister. I’ll get you this actual document.
The other question that I have is…. I’m sure the minister has been lobbied by the Federation of Associations for Counselling Therapists in British Columbia, which are currently not registered. I’m wondering if the minister had considered that counselling therapists in British Columbia could be registered. They have requested a regulatory body for counselling therapists to protect British Columbians from unqualified and incompetent counsellors causing emotional, mental and financial harm to clients.
My question is: is the registering of counselling therapists in British Columbia in the works?
The Chair: Minister.
Hon. A. Dix: Thank you, hon. Chair. It’s great to see you in the chair. There you are.
This year we’re working on one college proposal, which is with respect to diagnostics. There are four professions involved in that coming together. The issue of counselling is a project we’re looking at for next year.
I would say, in fairness to the previous two governments, which saw similar proposals from counselling therapists, that it has been a challenging issue. It’s very much the responsibility of the profession to address those challenges.
The member will know, because she does work in this area, that people who call themselves counsellors or therapists have a wide range of qualifications. They’ve been looking to come together to make a proposal around a college. I have heard of it. We are engaged with it. They would be next in line after what we do this year. So we’re thinking of looking at that probably in 2019, in terms of a budget proposal.
It’s a serious one. That area of care, obviously, is becoming more and more important. I would say in a general sense, however, that the previous government — and this is something I agree with the previous government on in a general sense — tried to restrict the growth in the number of colleges. Now, we’ve just reduced nursing colleges from three to one, which is something that we all voted on and proceeded to in the Legislature, but we’re not seeing that there should be a continuing growth of professional colleges.
We would hope to also see in the same period, and we’re reflecting on this, some coming together of colleges as well. It’s 23 now. Obviously, it will go to 21 when we amalgamate. It may go to 22 after we deal with next year. But there is, I think, a desire not to have an ever-increasing number of professional colleges. I think, really, in the last ten years, there has been some restraint in that growth.
This is an area that’s before us. The counselling therapist area has been before us since the 1990s. There have been efforts in the ’90s, in the first ten years of the previous government, and lots of other discussions about getting at that. That reflects, in British Columbia and in other jurisdictions, some of the challenges of bringing together such a college. There are really tough discussions that people in the profession have to have themselves in order to get there.
Just because we start a process, as has been shown in the past, doesn’t mean it will conclude successfully. That won’t just depend on the government, although my expectation will be the highest possible of standards, and they’ll have to meet that test should they wish to become a college. It will also depend on people in the professions.
J. Thornthwaite: I appreciate the answer from the minister, particularly considering we are always encouraging more and more people to seek counselling, to get help. The government is encouraging people to, obviously, stop stigma and trying to encourage people to get more help for mental health and addictions. So I would assume this issue is only going to get more intense. We really do want to help prevent people from getting bad medical advice with regards to mental health and addictions. I’m all for getting them regulated.
If the minister is game, I will pass on my contact, the person that contacted us. I’m sure that the minister would be happy to see that.
My last question is a favourite topic of the minister, I understand. It’s the therapeutics initiative. I will draw the minister’s attention to an article that was written in the Province on March 10, 2018, by Dr. Diane McIntosh. I’m sure that folks involved with mental health and addictions are quite familiar with Dr. Diane McIntosh. She’s a very well-known psychiatrist, but in her previous life, she was also a pharmacist. So she has a pretty good handle on drugs for psychiatric patients and, in particular, drug therapy for her particular patients.
She wrote this op-ed. I’ll just read you the question that she brings forward, and then I’ll tell you what my specific question is. She says: “Unfortunately, the medications currently available to treat mental illnesses are imperfect, but that doesn’t mean they are useless and dangerous.” She brings up newsletter No. 95. Sixty-five so-called experts and primary care physicians were there “to correct any inaccuracies and to ensure that the information is concise and relevant to clinicians.” However, “newsletter No. 95 was devoid of any mention of the chronic, progressive and potentially deadly nature of depression. Not a single drug treatment was endorsed. Antidepressants, in general, were dismissed as useless. Not a shred of positive evidence was provided.”
My question is to the minister. We are, obviously, very concerned about getting the right treatment for those that are afflicted by mental health and addictions. In this particular case, it’s mental health. She is a psychiatrist, so she knows her drugs. Who are the 65 experts on the TI? What specialties do they represent? Do any of the people on the therapeutics initiative have any experience with psychiatric drugs at all?
Hon. A. Dix: The member is quite correct. I’m a great admirer of the therapeutics initiative, which has been around since 1993 and has contributed enormously to the understanding of prescription drugs by practitioners. It’s saved, I think a reasonable person would say, hundreds if not thousands of lives in B.C. by warning against the overuse of certain prescription drugs. Drugs such as Vioxx come to mind.
What we need in the medical community…. I’m not going to comment on the medical debate. I let medical decisions get made by people who have training in those areas. We need a robust debate.
I’m sure the therapeutics initiative — I don’t know this — whose very independence from government and from pharmaceuticals…. Its lack of conflict of interest adds to its credibility, and the outstanding quality of its research adds to its credibility.
But they’re not the only people in the debate. People, such as Dr. McIntosh, who are working with pharmaceutical companies have a role in the debate as well. I think that’s a good debate to have, and we should have it about these issues and inform government fully as to prescribing decisions.
It’s my understanding that there are hundreds of people who work for pharmaceutical companies who make the case to family practice doctors every day as to the use of prescription drugs. So that’s a full and frank debate.
What the therapeutics initiative allows is one place — there are others — that provides an independent analysis of prescription drugs. That doesn’t mean that they are not open to criticism or disagreement. In fact, they’re part of the discussion as well, and if there’s criticism and disagreement, that should be had. That’s all fair. But they’re absolutely necessary.
One of the things that I’m very proud of is the restoration of funding to the therapeutics initiative. I would say, as members on the opposite side will know, when the therapeutics initiative was reviewed by the previous government in 2007-2008, on the board of review was, at the time, the chief lobbyist of the pharmaceutical industry in Canada. I’m not sure what that process was, and I reflect on that over time, but I would say that the TI has been recognized over time for its outstanding work.
Other people are allowed in the debate too. The pharmaceutical industry, which often criticizes the TI, has a very robust and important role to play in the system. I invite their comments. I think I was the first Health Minister in some time to meet with Innovative Medicines B.C., and I always look forward to my meetings with the pharmaceutical industry as well.
N. Letnick: Can the minister give us an update on the workplace technology services procurement, WTSP, project?
Hon. A. Dix: This process, of course, began under the previous government. It’s something that I inherited from the previous government, like many things both joyful, triumphant and otherwise. In this case, the procurement obviously was being planned in 2015-16 and was launched in 2017. It’s a procurement process. It hasn’t finished.
[D. Routley in the chair.]
There has been some public discussion of the project because there have been a couple of phases in the procurement. We’re in, I think, the third phase now. At the end of the second phase, one of the companies, which I guess saw itself as unsuccessful, made some public comment about it. But we’re not making any comment about the procurement, which is still in process now, except that it’s going forward.
There’s a fairness adviser, and it’s being handled by professional public servants, both on the health authority side and the government side. They keep me informed as to the facts of it.
We haven’t fundamentally changed the procurement since it was launched under the previous government. It was well under process at that time. It’s necessary because the current contract is coming up, I believe, in 2019. So we’re going through that process now.
Other than regular updates, we’re not commenting on it because it’s not finalized yet. We’re at a qualification stage. We’ve gone through qualification stages, and now we’re getting down to further stages of that process.
The Chair: The member for Kelowna–Lake Country.
N. Letnick: Thank you, hon. Chair. Welcome to the chair once again.
I believe, in that answer, I heard that the minister said that there is still a due diligence process underway for the successful proponent, NTT Data Canada. Is that correct?
Hon. A. Dix: I think it’s inaccurate to call them the successful proponent or to call anybody the successful proponent. We haven’t named a successful proponent. That name came forward from another proponent because they still have…. There’s still much work to be done before that arrangement is finalized. So we’re allowing the….
I’m asking the professional people involved in the process to deal with that. The one thing that happened that made this issue somewhat public was a decision by one of the participants in the process to make announcements about these questions.
They made those announcements, but until the entire contract is gone through — the process is gone through in full and successfully dealt with and negotiated — there is no one to announce. So there is not a successful proponent yet, although the member is acting on reliable information.
N. Letnick: Can we find out the total amount of the contract? Is that something that’s publicly available?
Hon. A. Dix: Obviously, since the process isn’t finished, I can’t comment on the value of the contract. The previous contract was approximately, though, just to give you a sense, $350 million over ten years. That’s kind of the scope of the previous contract. Obviously, we can’t comment yet, because there’s no new contract yet.
N. Letnick: My last question on this before we switch gears again, this time to the northern part of the province.
Interjection.
N. Letnick: The minister is happy with that.
Did the Minister of Citizens’ Services inform the Minister of Health that she had received policy advice or recommendation related to the project on her personal email?
Hon. A. Dix: No. It should be said that in the wake of the announcement by one of the participants in the process, there was some letter writing that took place. Their announcement informed employees that they were going to be changing circumstances, and that led to a number of members of the Legislature being contacted about the matter, including myself and, no doubt, others.
If there was discussion, that was a concern being expressed about the way the contract process was being done by professional public servants. But, no, I haven’t had discussions about that contract with the Minister of Citizens’ Services.
J. Rustad: We’ve had many chats. I need to ask the question on record with regards to the Fort St. James hospital — the status and what may or may not be undertaken this year. As you know, the community is very keen on the need to replace the hospital. They’re driving. They’re pretty ambitious in terms of what they want to try to do.
I’m wondering if the minister could confirm if a concept plan will be undertaken this year, what the timing of that might be and who would be undertaking that work?
Hon. A. Dix: I think people have been looking for a long time in Fort St. James…. That particular hospital, I think, was constructed in about 1972, but it wasn’t constructed in the same way as other hospitals. It was always, shall we say, a less permanent building than others, and it was only expected to last, really, for 25 years or so. We’re now on 45 or 46 years, so that’s a long time. The necessity of action there is significant. There was a significant effort made around 2008, and then a further concept plan, I think, developed in 2014-15.
What I’ve done since becoming minister…. The member has been a very strong advocate for the community and for the area, and I am as well. I think it’s fair to say that, especially in communities facing economic challenges, these issues of public infrastructure become even more important. We felt that profoundly in the Williams Lake decision. One of the reasons we wanted to move very quickly on Williams Lake in the wake of the wildfires was to make a statement about the importance of the community and the fact that it was needed.
There’s no question there needs to be a major project taken at the Stuart Lake Hospital in Fort St. James. There’s no question about that. So what I directed, and I’ve spoken to the member about this, is that there be a new concept plan developed — because the concept plan was significantly out of date, the one that we were working on the basis of — by the end of June of this year.
We didn’t say: “We’re going to wait for nine or ten or 12 months.” We put a short time frame around the concept plan, and the result of that is we should be expecting a new concept plan that is 2018 up to date.
I must say that there are concept plans, and then there are concept plans. As I’ve discovered since becoming Minister of Health, the concept plans directed by the Ministry of Health and the Minister of Health are the best kind of concept plans to have, because it’s the Ministry of Health and the Minister of Health that approve the concept plans. It’s sort of a circular logic that the member will understand.
In this case, I think we’re on the same wavelength. We needed to update the concept plan. That was a necessary step. Really, this reflects outstanding work by staff people in the Ministry of Health, the Northern Health Authority, my assistant deputy minister Manjit Sidhu and my associate deputy minister Sabine Feulgen, who really made this happen in an innovative way. Ordinarily, the redo of a concept plan such as that would have taken eight, nine or ten months. In this case, we decided to shorten that period significantly. The result of that is that June 30, 2018, is the deadline for Northern Health to do the updated concept plan, and then we can proceed from there.
M. Bernier: Thank you to the minister for his answers, and no, I’m not going to be asking about the Dawson Creek Hospital. I have a very quick question. It should, hopefully, just allow for a quick answer or even a follow-up later.
Up in our area, obviously, for the longest time, we had no opportunity for MRI and limited ultrasound in the Dawson Creek–South Peace area. People were having to be sent to either Prince George or Grande Prairie. Fort St. John now has one. I think the minister knows where I’m going with this. I’ve mentioned it.
With some of the recent announcements through the ministry, obviously my office has been inundated with people who are concerned that we might lose the only MRI opportunities that we have right now in the South Peace, which is the Peace Regional MRI and Ultrasound centre. They have met with me numerous times. They would like to find out how they can actually work with Northern Health and with the ministry. As the minister knows, right now they would be considered, I guess, private, because they’re unable to bill through the ministry. These are local physicians who found a need, purchased the equipment and have been fulfilling a lot of opportunities in the area.
What I’m looking for is some kind of commitment that at least the ministry — through Northern Health, I assume — will sit down and meet with this group and find it out where that partnership can happen. We want to be able to have that service locally, and we want to figure out how to make that work so that people in my riding don’t have to go out of the region for MRI services when that service can be provided locally.
Hon. A. Dix: Well, I just have such extraordinary good news for Northern Health. The number of MRIs we’re going to do this year in Northern Health is going to dramatically increase. That’s for obvious reasons.
The government is determined to do that. If you look at the last fiscal year, we completed, in British Columbia, about 188,000 MRIs. To put that in context, if we were to complete the Canadian average, it would be about 260,000 MRIs. That’s why, in our plan, we’ve increased the number of MRIs, or plan to, this year by 37,000 because there was a considerable gap there.
That’s not to say we can’t do a better job prescribing or that we need to do what everyone else does, but the gap between what we did and what the Canadian average was, was dramatically high. That led to a lot of people, in good faith, facing very, very long wait times.
If the member for Kelowna–Lake Country, who’s clearly more affluent than I am, and I have the same condition, and he has $1,000 to get an MRI and I don’t, then under those circumstances, effectively for $1,000, he could advance ahead in the queue for surgery. Now, he would never do that. He would never do that, and I would never do that. But the reality is that for a lot of people suffering in pain, that’s a real challenge and a real problem.
In that area of Northern Health, in the past, since the MRI opened in Dawson Creek, at a time when there wasn’t an MRI in Fort St. John, Northern Health Authority had people for publicly funded MRIs go to Prince George or to Grande Prairie. That was the policy that took place previously to this. Well, now that we’ve added an MRI in Fort St. John, which was a decision made by the previous government and implemented under this government, the service for people in Dawson Creek will dramatically improve in terms of their access to service. I think that that’s the primary question.
The member is obviously asking about our decisions to ensure medically necessary care and that we, in fact, enforce the Canada Health Act and the Medicare Protection Act, which is an important thing we have to do. The member will know that the government of Canada fined the government of British Columbia $16 million in March of this year, based on audits that took place in 2015 and ’16. That’s $16 million that, by the way, could pay for 55,000 MRIs in the public system. We have to take steps to address that — to enforce the law in British Columbia and to do so equitably.
With respect to meeting with anyone, I’m happy to meet with people any time. I hope, oddly enough, to be in Dawson Creek sometime in the near future. Should that be the case, I’d be happy to meet with anyone involved in health care that the local MLA — who, fortunately, I know by name — would suggest at that time.
M. Bernier: Just to make myself clear, if I can. First of all, to your coming up there, I look forward to having you up there. I have lots to show you.
But the main issue here is not trying to have opportunities for local people who might be MLAs from Kelowna who might be more affluent. This is actually not about people trying to jump the queue. This is about some local physicians, local radiologists, local people who, in the past, quite a few years ago, built this facility. They’ve been doing work for WCB and other organizations — or at fee basis. What they want to do is be able to work with the minister — the ministry, more importantly — and with Northern Health and actually recognize the challenges around the Canada Health Act and get into a system where they can be recognized, put on the map and operate as a publicly funded situation here, doing MRIs and ultrasounds.
They’re not asking to do private. They’re asking to be part of the system. These are B.C. doctors, B.C. radiologists that spent the money to fill this need. Without them, we are still travelling out of the region. I know the minister has acknowledged Fort St. John, which is in another riding. I appreciate the fact that they’re going to alleviate some of the strain. That doesn’t help the people in the South Peace, who are still…. There’s nothing in that area other than this unit.
What I’m looking for is for Northern Health to actually see where they can work with this organization, to say: “How do we make them compliant? How do we make them part of the publicly funded system so that my doctor can prescribe for me to go for an ultrasound and I can go there and it’s through the public system?” That’s what we’re looking for.
Hon. A. Dix: I understand what the member is looking for. What I’m saying, a little bit, is that Northern Health, in the past, has assessed the need for MRIs in Dawson Creek and decided, throughout the past, that they would prefer to send people to the Alberta health system in Grande Prairie, the public system, or to Prince George. That was their assessment. That’s been the past policy for a number of years.
My issue with private clinics is always the same: follow the law. I have no issue with anyone who doesn’t follow the law. And by the way, in some places where it’s required and where it addresses health care needs, that means surgical centres. There are private surgical centres that get public contracts. There is absolutely nothing wrong with that.
Interestingly — I have the terrible problem of answering questions for the member for Kelowna–Lake Country before he asks them — that number in 2017-18 was $16 million for surgeries performed by private clinics paid for by the public system. We’re open to those ideas, but I don’t make any commitment on that basis.
We’re dramatically improving MRI services, diagnostic services in the Peace. The situation in Fort St. John is going make things much, much better, I think. We’re acting to dramatically reduce wait times throughout the Northern Health Authority for MRI, and I’m very proud of those initiatives.
As for anybody, though, that wants to meet me in Dawson Creek, I look forward to meeting with them.
S. Bond: Good afternoon to the minister and the staff. I want to ask some questions. I’ll try to be as succinct as possible, because I have a number of issues that I want to just canvass quickly with the minister.
I’ll start with, of course, home. The minister knows how much I care about where I live, as do other MLAs. The minister was in Prince George, and I should say that appreciated the invitation to participate in the event he had. That is not necessarily common practice, so it was appreciated.
There was some confusion that day about the timing of the arrival of the concept plan that the Northern Health had been encouraged to submit. We know that the longer it takes to get a concept plan approved, the longer it takes to get moving on to the next step, which is a business case.
Can the minister provide me with an update on what is happening with a badly needed approval of a concept plan so that northern residents can actually be served in a number of new ways, in fact, at their regional hospital?
Hon. A. Dix: Just to be precise, on December 15, 2017, Dr. Stephen Brown, the deputy minister, who is right here beside me, received correspondence from Cathy Ulrich, who’s the president and CEO of Northern Health.
In it, she said: “Northern Health is pleased to provide you with a USB stick” — not like the old days — “that contains material related to the University Hospital of Northern British Columbia redevelopment plan.” It contained the concept plan and appendices. So the date that we received the concept plan was, quite precisely, December 15, 2017.
S. Bond: Thank you to the minister. Can the minister then provide my constituents with some sense of the timeline? I know that he, in fact, has visited the hospital, as has his deputy minister, on numerous occasions. I think there is recognition that it’s time for work to be done there.
The other aspect that is absolutely critical to my constituents is the evolution of health care opportunities closer to home, and the minister and I had this discussion the last time we were in this room for estimates.
The previous government made a commitment to look at cardiac care. I can’t tell you how many people I sit beside on the plane back and forth every week to Prince George who are coming to Vancouver or, perhaps, Kelowna for treatment that they could actually receive at home. We know that’s better for them, and it’s certainly time we saw that evolution take place.
Can the minister provide me with an update in terms of his expectation of timing to move on to business plan, and whether or not cardiac care will be included in the overall look at the University Hospital of Northern B.C.?
Hon. A. Dix: The member will know we have two projects that are ongoing now, which are important to consider. One’s around $8 million, around 24 in-patient beds. So that’s an improvement. There’s also the electrical system proposals, and I think we discussed those the last time we were here. They’re just ongoing and on schedule.
With respect to the concept plan, we’ve received it. Issues such as issues around cardiac are something we look at when we receive concept plans. Obviously, they’re not public documents when they’re provided.
I mean, I can’t give absolute dates and commitments on timing, but there are two separate things I’d like to consider. One, we haven’t said before, but we’re trying to be open about this process.
One of my concerns about the University Hospital of Northern British Columbia is that we have real ambition to improve surgical conditions now, and this is a long process. This is a big project, and they take a long time. So I’m not….
I’m also looking at how we address the situation now, because one of my frustrations…. The member will know that I announced the surgical plan recently. She’ll know that that’s a very ambitious surgical plan for hip and knee, for dental and for all surgeries. She’ll know that while we’re increasing hip and knee in northern British Columbia and everything else, our ability to do that is limited by the very nature of the operating rooms we’re talking about in all of these communities.
We have a 1959 hospital in Terrace, and we’re rebuilding that, but that’s going to take some years. In the meantime, we have to work with the present facility. In Fort St. James and Burns Lake, which aren’t as important for surgery but are important hospitals, it’s the same thing.
In Kitimat, we have a relatively more modern hospital and some excellent orthopedic surgeons there. In Dawson Creek, we have a 1960s hospital. In Fort St. John, we have more of a modern, state-of-the-art hospital. But our ability to address surgical wait times in the north is limited by the capacity. That’s why I’m conscious of the need to move on the University Hospital of Northern British Columbia, but I’m also conscious of the need to try and address situations more quickly than the lengthy period of time — the concept plans and business plans and procurement and construction and opening — that it takes to open a new hospital. I’m interested in that and obviously interested in a concept plan proposal.
There is simply absolutely no question that on two particular questions…. I’ll speak to the cardiac one, because I know if I don’t, the member will ask me it in the supplementary question. But on the question of operating rooms, the operating rooms are — I used this term yesterday — antediluvian. They’re old, and it affects our ability to deliver care and to recruit surgeons and physicians and everything else. So that’s a subject to address.
I think the parts of the hospital and the wards in the hospital that deal with mental health and addictions are not consistent with how we should be treating people today. I think that’s fair to say.
Then there is, I think, the more visionary part of the project, which is: what do we see this hospital, this region, doing ten, 15, 20 years from now? I’m very much open to all of those things as well.
I’m very focused, I have to say — this is separate and apart from any discussion of a concept plan — on addressing circumstances now. I think that some of the wait times that people in Prince George face are because we don’t have adequate capacity in Prince George right now. If we’re going to stake plans on wait times, that needs to include people who live in Prince George and Dawson Creek and Terrace and Prince Rupert and Kitimat, just as much as it does Vancouver, Surrey, Coquitlam or Victoria.
S. Bond: I appreciate the minister’s comments. I will sum that up by saying, for me, it’s not matter of either-or; it’s a matter of both. We need to deal with the short term to allow for the kind of high-quality care that professionals want to deliver and are delivering, despite, in some cases, an inadequate facility and space for them to do that.
I want to urge the minister…. While I understand the need to grapple with short term and long term, if we don’t get the concept plan to a business plan, the longer term becomes longer and longer.
I will be very candid in suggesting that I don’t think the people of northern British Columbia are going to be very happy about waiting 20 years for something which needs to…. There needs to be a signal now that this government understands the importance of those kinds of improvements.
I appreciate the minister’s comments, and as long as I am on this side of the House and he is in that chair, I will be coming back and asking him every single time for an update, because it’s that important to the people who work there.
I’m going to segue, because it’s also important…. The minister came up and announced additional knees and hips, and people were happy about that. But I’m going to segue to a problem that is attached not just to the facilities; it’s about people.
One of the things that I have learned over time is that the model of training people in Vancouver or somewhere else, crossing your fingers and hoping they’re going to come to northern B.C. simply doesn’t work.
The last time I was here in estimates with the minister, I asked about the health human resources plan and what it looked like. I am fully aware of where the design of that plan — or the funding, at least — comes from.
It’s a joint partnership — at least it was in our era — between AVED, the Ministry of Advanced Education, and the Ministry of Health.
We are reaching critical stages of need for physiotherapy, occupational therapy and speech therapy — all those things and all those people who need to be in northern British Columbia. They need to be trained there, just like we’re training doctors and many other professionals. I would be remiss if I didn’t add nurses to that. We certainly know that even with the good work that has been done by Northern Health, we still see recruitment issues — trying to get nurses so that, in fact, they aren’t burnt out, that they’re not overworked.
I’m wondering if the minister could just take a moment and update me on what the strategy is — whether the Minister of Advanced Education is going to announce the strategy. Who are we going to hear from that says, “We intend to train this many people, in this profession, over the next two, three, four or five years,” so we can have some hope that when children need a speech therapist, they’re not waiting because we can’t fill those spaces — or if it’s a physiotherapist?
Could the minister just update me on the health human resources plan? Who’s going announce it, and when can we expect to see some numbers and some capacity added in northern B.C.?
Hon. A. Dix: We’re in a final-draft stage in terms of the workplace plan. It’s gone back to the health authority and other partners now. So we’re looking at that. It would be jointly announced, I believe, between the Ministry of Health and the Ministry of Advanced Education because, obviously, both ministries are involved.
We aren’t stopping from taking some immediate action. The member will know we purchased, as they say, some care aide positions because we have a significant problem on care aides. While the other professions that the member mentioned are significant, care aides are a significant one where we’re to meet the priorities of the government in terms of staffing levels everywhere in B.C. This is a particular challenge, sometimes, in northern B.C.
We have to maintain the existing levels and then add to them approximately 900 net new care aides, for example. That’s not to meet future demand — the doubling of the number of people over 75 in 15 years — but to meet existing demand and the existing care standards that the government has set.
We’re taking specific action in the health sciences profession, in association with the union there. You’re going to see specific action on nurse practitioners and doctors. In all of these areas, there are actions taking place now.
The overall plan you’ll see later this year. It will be jointly announced, and it reflects what the health authorities think and also what other health employers think. In the area of nurses and care aides and others in allied health professions, there is a significant sector that’s beyond what we negotiate in collective agreements within government but is affected by these health and human resources questions.
Then the increasing number of people we’re going to need in the community to support home care and home support everywhere. That’s particularly important in parts of northern B.C., where going into long-term care means leaving the home that you’ve lived in all your life and going quite far away, on occasion, to other communities — sometimes to Prince George — to get the care that you need.
We have to, in every area of health care, I would say…. I’m not sure what previous ministers of Health thought about every day. The thing that concerns me every day…. Like, the money concerns me Monday, Wednesday and Friday. But every day is this health human resources question: even if we applied the resources, could we do the work necessary? In big parts of the province right now, we don’t sufficiently, and it’s not a matter of just the will that happens in the Legislature. We need people to do that.
The member is absolutely right. Everything we know tells us that if we train someone in Burnaby and there is enormous amount of opportunities in Burnaby, or in Metro Vancouver, they are not heading to Fort St. James. They’re not heading there.
We have to do a better job of training within the regions. New facilities in Fort St. John help with some of that, I think. Also, obviously, the most important centre in the north for training is Prince George, and we have to see more there. I just think that that’s what needs to happen for us to be successful in that part of the task.
S. Bond: Thank you for that. I’m encouraged by the fact that the minister recognizes the importance of training people closer to home. It hasn’t worked. We’ve had decades of…. We put in place a model of training physicians. Just this past week, another group of incredible young people got their white coats, and they’re ready to take on the next phase of their training. So we have a model, and I would urge the minister to look at how that is utilized as the basis for training other important professionals. It’s there, and we need to capitalize on it.
I do want to thank the minister for the care aide announcements. Those are important.
I am cognizant of the time, and I know that this is the hottest ticket in town today. I have several others I want to canvass before I get the hook from the critic, but they are important.
I want to raise the issue of nursing safety with the minister. I have also, today, raised the issue of recruitment and how we’re going make sure that we have adequate nursing staff. We can have all the beds we want, but if we don’t have nurses beside them, along with other professionals, it’s not really going to matter that much.
A year ago, or longer, literally hundreds of candidates and all three leaders of the parties in British Columbia took a pledge to work on safety when it comes to nurses in the province. I don’t know about the minister, but I have trouble watching the ads that are on television, because they are poignant and terrifying.
I had a very constructive meeting with the nurses’ union in my own community. They were constructive, but they were concerned. I would like to ask the minister what his plans are regarding a pledge that probably most of us in this room took.
There were some very practical suggestions made by the nurses’ union — things like properly trained security, making sure there is a 24-7…. If they’re coming in through the emergency room entrance, there needs to be someone there 24-7. We’ve had incidents in my hospital in my community that I can’t even imagine how those young nurses will return to their careers after what happened.
I know that Northern Health is working on this. I don’t want to imply that they’re not. But this requires provincial leadership. We need to stand up for nurses and say: “What can we do? What are those practical things that will make a difference?” There are things — like security, and other things.
I understand the families-first type of approach, where visiting is not, you know, eight to eight. Having said that, our staff are vulnerable when we have wide-open policies, so there has to be balance there.
I would just like to ask the minister for an update. I think it is something that crosses party lines. Nursing safety isn’t a partisan issue. I think it could be something that the minister could challenge all of us together to work on — to try to make some concrete steps in terms of nursing safety.
Hon. A. Dix: Unfortunately, this is a lengthier answer, because it’s such a significant one. The member will know well that nurses have taken a lead on this. The highest workplace injury levels are suffered by care aides. It happens to doctors, health sciences professionals, people who work on the front desk in emergency rooms. Everybody faces this risk and this challenge. Part of the challenge is to work on the responses all together.
I agree with the member that we’ve been taking some steps over the years. Just to highlight what some of those are, in 2015, the government, the ministry and the B.C. Nurses Union committed $1 million toward safety at four facilities. Six facilities were added subsequent to that. Those four facilities were the Forensic Psychiatric Hospital, Hillside Centre, the Seven Oaks Tertiary Mental Health and Abbotsford Regional Hospital.
We’re now starting and rolling out the next six in that effort with the Nurses Bargaining Association, and the next one to roll out will be Mills Memorial Hospital in Terrace. This is work that’s clearly needed in hospitals across the province.
We’ve established together and formed what’s called a provincial violence prevention policy framework, and we’re now working step-by-step through that. The ministry and others and the health authorities had a significant meeting with the partners that included all the unions and other employers through HEABC on April 12.
In the past year, for example, as part of this, we’ve trained over 2,100 health care providers over 249 facilities in violence prevention training program, and so on. So this is work we’re starting.
I agree with the member that it’s absolutely essential for the safety of the professions — absolutely essential. If we’re saying to a generation of new people, which we are all going to need, that they need to become care aides and health sciences professionals and nurses and doctors and work in health care, then we have an obligation, collectively, to make them safer.
The member will have gone to many hospitals, as I have, in B.C. Some of those hospitals…. We talked about it earlier, and it’s in my mind. It’s not in the north, but Nanaimo Regional General Hospital, for example, is a hospital where you can go in through many, many, many different doors. That represents an interesting challenge.
It’s not just that the public is free to come in, which one would hope in a public hospital, because of the needs of patients and the need to have families supporting patients. But some hospital buildings have much more controlled entrances than others. These are parts of the things we have to work through, facility by facility — working with nurses and health care workers and health science professionals on the ground to make it happen.
I agree with her. It’s our commitment. We signed to it. We signed to it all as MLAs. I would absolutely ask for and expect both encouragement, through questions, but also support of members. I think members on all sides of the House understand that this is fundamental to the future of our public health care system: ensuring that people are violence-free but also safe from injury.
S. Bond: Thank you for that response. I would challenge the minister to ask his team to go away and look at what can be done in the short, medium and long term and how that can be done across party lines. I signed that pledge. It makes a difference to me. I admit that when I signed it, I probably thought I would’ve been over there, so I’m finding it a bit more difficult to sort of manoeuvre that pathway.
All of us in this place care about nurses and other health care professionals. I don’t want to diminish their issue. But I care about a pledge that I signed, as did all three of the leaders that were running, to make a difference.
I appreciate that answer, and I would ask that the minister look for ways that we could constructively, together, look at how to better support nurses and deal with those issues.
A couple of short snappers. I just want to confirm that the minister, when he attended the Alzheimer’s walk…. I know that he and many others did, as did I. I just want to confirm that his announcement will allow First Link to continue. It is essential. Certainly, programs like that and Minds in Motion — those kinds of things — are very critical. Could the minister confirm that First Link will be continuing for an additional number of years?
Hon. A. Dix: We’re looking at this question more broadly for a program that’s as fundamental as First Link. As far as I’m concerned, and I’m sure the member would agree with that, it’s really an essential part of the health care system now. We’ve funded it over the years — not to be critical about this, because I just did it — with year-end money. That year-end money that we provided this year, which I think was $2.7 million, extends it through to the end of the 2019-20 fiscal year. So First Link had the money for this year, but I wanted to send a broader message.
We could have said: “Well, wait till next year.” But in a program that’s that essential, running people up to the next end of fiscal year, and, “Will they announce, or will they not? What are the considerations?” wasn’t what we wanted to do.
What we did was provide the $2.7 million so that First Link is funded through March 2020. In a general sense, we have to think about, if that’s what we’re consistently going to do, whether it’s more useful to provide what we call core or ongoing funding. As I say, we just did this, so I’m not being critical of that. But there is something that’s now become essential and will become more essential two years from now, more essential five years from now and more essential ten years from now. We have to send a message, at least, that that’s going to be consistent funding. That’s why we extended the funding, even though we didn’t absolutely have to, at the end of this fiscal. We found the resources, and we decided to send that message. They have that money now, and they’ll be there through March 2020.
S. Bond: I thank the minister for providing certainty. It is literally a lifeline for many people. I know that many members attended their walks. Those resources are essential. I certainly would be one to encourage core support, giving the item a budget line so that that uncertainty does not continue.
Very quickly. Is the minister aware of a group called the Helicopter Emergency Rescue Operations Society? They are known as HEROS. They are advocating for pre-hospital emergency medical care — very concerned about access to pre-hospital critical care.
A perfect example of that would be during the recent accident in Humboldt. There were a number of STARS helicopters available in that area. One can only imagine what would have happened if they were not.
I’m not asking the minister today to endorse the program. I’m asking simply if he’s aware of the organization and if he would be prepared to sit down and meet with them. I understand a meeting request has been made, and there was a message back saying: “Oops. No. Sorry, can’t do that.” This group is very passionate. They represent an important issue in northern B.C. I just want to know: does the minister know of them? And is he willing to meet with them?
Hon. A. Dix: The answers to the first two questions are yes and yes.
S. Bond: Yes, yes and no.
Hon. A. Dix: Yes and yes. I don’t know if there was a third question.
Let me just say on the issue of the ambulance service, though, that we’re giving a particular focus in northern and remote communities. Some steps were taken under the previous government, which the member will be aware of, and a lot of that was focused on urban B.C. There’s good reason for that. There’s a tendency to view these issues as either-or, and I don’t do that. We just added significant resources in Castlegar, Fort St. John and other communities. That is really important work. We’re going to continue to do that.
I think there’s a debate about the best way to provide emergency health services. It was a debate that existed with this group in the previous government, and they took us a particular route. I think, in a general sense, the route embarked on by the previous government was the right route. We’re trying to amplify those decisions, but consistent in that way.
The person who is heading the Ambulance Service through the Provincial Health Services Authority, Linda Lupini, is doing an excellent job. Her connection to ambulance paramedics is strong, which is an important thing. The member will know that that’s, in the past, sometimes been a challenge, not just for the previous government but for previous governments to that.
I like the work that they’re doing, the ambition of that work, and I think that has to continue. That doesn’t mean they have the only alternatives, but there are some real benefits to the way we’ve decided to organize our ambulance service in B.C.
I particularly pay credit to something that I had advocated for and that the previous government did, which is an interesting thing. It’s what we do in opposition, as you know. That is the community paramedicine proposals, which have stabilized, in many communities, ambulance services in rural and remote communities across B.C. It’s an excellent program, and one that we can look at continuing to expand. I think it’s an important service.
All of that is to say that yes, we’ll meet with them. Although, the direction that we’re taking the B.C. emergency health services is to extend and expand on the work that had been done in the last couple of years by the previous government.
S. Bond: Thank you very much. I will pass that information on. It’s not at all being critical of the service model that’s in place. I’m not sure it needs to be either-or. I think there just needs to be a healthy discussion and a willingness to come into the room and say: “Can we at least have a conversation about this?”
I’m just going to let the minister know that I will write a letter to him about the issue of osseointegration patients. There are very few of them, but I believe there’s an inequitable playing field here. These are people who require replacement parts of knees, feet and a variety of other…. Whether they’ve had a traditional mechanism or an osseointegration, they still need replacement of those parts. Otherwise, they’re going to have major issues.
I’ll write a letter about that. I’m very concerned about it. I have met with one patient and have another one who has significant concerns — in fact, currently, I think, has a broken knee. There is resistance in replacing that. I think that it shouldn’t matter how you end up with it, you need to make sure the replacement is available.
My final comments are related to an issue that, in many ways, I became almost inadvertently involved with but have become incredibly determined. I have met numerous constituents and others from across British Columbia who are devastated by cystic fibrosis. It is time….
I know the minister knows that this drug has the potential to save lives. I have concerns about the fact that…. The minister would know well that I tabled a petition recently. The fact of the matter is there is a view that the drug review was potentially flawed. And there is a view of that.
Governments around the world are looking at processes to review Orkambi. From my perspective, this is an opportunity for British Columbia to stand up and take a lead here so that as the review takes place again, the same mistakes, if they existed, do not take place again.
I guess I’m asking the minister on behalf of those families — I know that he knows them, because he’s heard from them too — that are deeply impacted by the lack of availability of this drug in British Columbia.
From my perspective, it’s time to get moving on this and to figure out how we can help those patients who are devastated by this. I’ve met with families who have lost loved ones. I had the most compelling letter from a family the other day whose child has been diagnosed. You think about what that means.
Today I am asking the minister and the ministry to provide me with an update about where the drug review process is, what it’s going to take to get this drug across the line so that families here can get the relief that they deserve.
I read recently…. I believe it was the Australian government, the Health Minister there. They’re going through an Orkambi review, I believe, in June or July. He has made a commitment that when that drug passes through the process, that drug will be covered for families in that country.
I just would appreciate an update from the minister. I have appreciated his openness to the discussion. I know that I have a constituent who is feeling very frustrated by having sent numerous letters into the minister. In fact, the latest one she sent was March 13 — and still has received no response to that. You can imagine how difficult that is for her — and families who are counting on her to help move the issue along.
With that, I would await the minister’s comments, and I thank him for his time this afternoon.
Hon. A. Dix: I hesitate to speak for my predecessor — or other predecessor Ministers of Health — but these are some of the most difficult questions we face as Ministers of Health.
In the case of this drug, Orkambi, we have a process in Canada. I’m giving this answer in part because I want to give a full answer for the member’s constituents. I know she knows much of this. I don’t want to be just telling her things she already knows.
We have a process in Canada that was established in 2002 called the common drug review, in which all provinces participate, which assesses the efficacy and value of prescription drugs. The previous government also set up an equivalent process in B.C. called the Drug Benefit Council which does the same thing.
Over the last years, when the common drug review and the Drug Benefit Council recommended against the listing of drugs, previous ministers to myself and I have followed the advice, because, of course, we’re not pharmacists or doctors or practitioners, and we’ve set up an independent process to assess the value of drugs.
In the case of Orkambi, as the member will know, the common drug review made a recommendation not to list in June of 2016. There was an appeal in November of 2016. And then the Drug Benefit Council was also a do-not-list recommendation. In February of 2017, the Drug Benefit Council addressed the issue, and they also recommended not to list.
In March 2017, my predecessor, Terry Lake, and the ministry made the decision not to list. I want to say this very clearly. He had no basis to make any other decision. He made the right decision, and I have no criticism of him for doing that.
Some events transpired in the summer of 2017 in the period just as I was becoming Minister of Health and afterwards.
What had happened with Orkambi as a drug is that there were a couple of people, in particular, in British Columbia, who had previously received the drug under private drug plans, who were essentially being cut off by those drug plans. I make no judgment about the organizations that cut them off or anything. That’s just what happened.
The case came forward in the public mind. I didn’t do nothing after that point. We assessed the issue. The complaint from the company, Vertex, from the United States — which has two drugs on the market, it should be said, and Orkambi is one of them — was that the common drug review and the Drug Benefit Council failed to deal with all of the evidence they’d provided.
This is frequently the case in expensive drugs for rare diseases, where you can’t get the same amount of clinical trial evidence, so there is a concern about that. They felt they were not being allowed, in the processes provided by the common drug review in particular, the opportunity to present all of their evidence.
I took some steps, in consultation with other Health Ministers, to open up the evidence process. Not to change it — it’s still independent; we’re still going to be following their advice — but to open up that process so that in this case, and other cases, Vertex would be allowed to present that evidence.
I strongly encouraged Vertex, I can tell you, in that time, to reapply. They took their time to reapply, I would say, but they did reapply. So we made those changes to the common drug review on the recommendations of us, as provincial governments, in November. Vertex reapplied earlier this year, and they’re now in the common drug review process, which is taking place.
Those are the changes we’ve made, because I think my responsibility is to ensure that the process is fair, independent and in the public interest, but not to be intervening in particular reviews of processes.
Look, I’m sorry to hear that individuals from the member’s constituency haven’t received replies. It is a standard reply, but we’ve sent replies to a significant number of people across B.C. I’d be happy to ensure that she receives a reply that lays out some of the things I’ve just said in detail.
I take these issues very seriously. I think it’s fair to say, as Minister of Health, these are the kinds of issues that you think about a lot. I, personally, wouldn’t be alive today if I didn’t have a prescription drug that I take four times a day, so I understand that personally as well.
We have to ensure that our PharmaCare system is affordable, of course, and we have to ensure that decisions as to what gets listed are based on efficacy as well.
There is always going to be disappointment — sometimes by patient groups, often by pharmaceutical companies — when the reviews come in not as favourable. This is not just a yes or no. Sometimes there are limited-application recommendations as well, where it’s only in specific circumstances.
I want the member to know, and people out there to know, that I hear them, and I understand their pain.
We have done, in the last couple of decades, I think, an extraordinary job of improving the quality of life for people with cystic fibrosis, led by people in their families who’ve been advocates for them. Life expectancy is on the rise, and it’s partly because of improved treatments, partly because of other circumstances, but there is much to do.
I’ve met with cystic fibrosis advocates. Lots have talked to me. People communicate to me literally every day on the question, because they’re doing an advocacy campaign. I know there’s frustration in that, because it feels like we’re not hearing them. We are. We’ve taken some steps, but they’re systemic steps not individual steps.
I know people want me to begin — some people. Because if it was your child, someone else, you’d say to the Minister of Health: “Well, you can do it. You just announce it.” But we have to have a process that’s driven by evidence if we’re going to succeed in having a public health care system that works for everybody and makes the right decision. It’s not whether the Minister of Health gets lobbied that’s the most important question; it’s the evidence. That’s what we’re trying to do.
We’ve also moved, and I want to acknowledge the very significant advocacy by the member from Okanagan-Vernon on this question. He has regularly been in touch, regularly advocated for someone in his constituency. He has been, I think, a relentless and generous advocate on this question, as has the member for Oak Bay–Gordon Head on this very question, and other members. I appreciate the seriousness of their advocacy.
Obviously, in this process, they’re before the common drug review now, and that’s where they are. But they’re there because of changes that we made.
The Chair: The member for Vernon-Monashee, by way of Nova Scotia.
E. Foster: Via Nova Scotia. I was going to correct the minister on that.
Well, Minister, you obviously know why I’m here, because we’ve had a lot of conversation about this. I just want to read into the record some of the information that I’ve received from Melissa Verleg, who’s the lady in my riding, one of the two people that you mentioned, who had private insurance coverage, and then that was cancelled. I’ve got some correspondence from her, and I’ll quickly go through it.
On March 26, I received an email. “I am currently super sick and at the hospital. Some Orkambi right now could possibly save my life. Maybe you could let Mr. Dix know I’m starting to drown in my own lungs, and I’m running out of time.”
On April 10:
“Mr. Foster, I have an update from Vertex. They have made another portfolio offer to Canada,” as the minister referred to, “and we need to act.
“I have been deteriorating over the last three weeks. I am currently on day 16 of an IV antibiotic, taking four nebulizers a day and just finished a regime of prednisone. However, my lung function has dropped to 46 percent, with no signs of improvement. I’m running out of breath.
“I am currently waiting for an emergency CT scan, because my doc can’t figure out why I’m going downhill so fast, and they don’t know what to do to help me.”
Minister, I’ve spoken to both the senior people at Vertex and to the insurance company that covered both Melissa and the lady here in Oak Bay. Unfortunately, they weren’t very forthcoming with any kind of positive news. They spoke about protocols and policies. That’s what they do, I suppose. But I was a little disappointed to hear you also use the “process” term.
We should be more compassionate here in this building. Minister, as you mentioned, we had our first conversation about this at the UBCM last fall, shortly after Melissa had contacted me that her insurance had been discontinued. You did sort of go over what has happened, and I would thank you. I’ve had several meetings with members of your senior staff, and basically, we’ve had the same conversation over and over.
I’m here to…. I mean, you’ve really kind of answered my question. I wanted to know what progress we’ve made. I suppose we have made some. They’ve made another presentation to the drug review.
Can you give me any indication, so that I can go back to this young lady and let her know…? I mean, I’ve watched her from when she first came to see me and she got some compassionate coverage from her insurance company. She was out taking her kids to school and making their lunches and going to their soccer games. The last time I met with her, I had to go to her house, because she’s on oxygen all the time.
The sad thing about this is the drug will not correct anything. It has slowed down the progress of the disease. Once the damage is done, it’s done. The drug is not a fix-all.
What can I tell her that’s happening here that might give her some hope?
Hon. A. Dix: There’s nothing, in terms of process, about it. I mean, we took extraordinary efforts to change the entire way the common drug review takes evidence, in a fairly short period of time, and really encouraged Vertex to apply. People are, I think, frustrated by these processes. I absolutely understand the member’s frustration and their frustration.
With respect to the provision of compassionate coverage, the member will know that that happens in some cases and not in others. Obviously, that’s a choice that Vertex has made. Given that we’re not listing the drugs, we can’t order them to do anything. But they had that option.
Obviously, the decision was made by the insurers, and the organizations represented by the insurers, to deny coverage. That was particularly hard. I think what made these cases particularly difficult is that the young women in question had received access to the drug. I think we know…. I’m not going to call out the name of the group whose coverage changed, except to say that they changed their coverage, presumably to reduce costs. That had implications for these young women and the coverage they were getting on a drug that, obviously, had been previously rejected for coverage by the Minister of Health.
This is something that we’re obviously focused on addressing. But these drug-listing decisions have to be made on the basis of independent evidence, not interventions by the Minister of Health in individual drug-listing decisions. That world, to make this process political, is a worse world for everybody. My challenge — and it’s a real challenge — is to ensure that the process is efficient, to ensure that people have adequate resources to make independent recommendations and to ensure that they remain independent and not influenced by politics or business or anything else.
That’s what we’re trying to do and to ensure that when the Drug Benefit Council reviews a drug, all evidence that is required is used in that. That includes the voices of patients, which are important, and patient groups, which happens, I think, more fulsomely at the Drug Benefit Council level here in B.C. — the policies that the previous government and our government have supported but also at the common drug review.
It is, absolutely, a very difficult situation for the people involved. Well, Orkambi is one drug. It’s not just Orkambi; it’s other drugs as well. I think it’s never easy to say anything about that because, regardless of the view of the efficacy of the drug that was taken at the common drug review, obviously, when you’re struggling with cystic fibrosis, you need help every day, and supports. I understand that, and I thank the member for his advocacy and his comments today.
S. Furstenau: I’m hoping the minister could provide an update on one of the top priorities for the Cowichan Valley — and for the Chair’s riding, as well — which is progress towards a new hospital for Cowichan.
The Chair: The Minister of Health.
Hon. A. Dix: Got the right person in the chair; got the right person here. It’s just fantastic. I think if this answer is wrong, I’ll never be allowed to speak in here again. It’s all good. Oh, you see, I could ask that the House rise, report progress and ask leave to sit again. I just got the note. But I’m not going to do that, because the Chair wouldn’t accept the motion right now.
It’s the top priority on Vancouver Island. We’re working hard to proceed on it. We’re working on the numbers and the basis of the project right now. There’s great support for the project in the community. The Premier and the previous Premier announced support, I think, in the election campaign. I’d be happy to provide the member with a detailed briefing as to where we’re at right now, but I have high hopes for this project going forward.
Obviously, of all the capital projects on Vancouver Island, this is the one that the health authority is focused on right now. It’s the significant project. It’s absolutely necessary. The call from the community is significant. The member has been eloquent; the other member has been eloquent. We’re hoping to move ahead soon, and we’ll be keeping the member informed step by step, minute by minute, second by second, even.
With that, I move that the committee rise and report progress and ask leave to sit again.
Motion approved.
The committee rose at 6:15 p.m.
PROCEEDINGS IN THE
BIRCH ROOM
Committee of the Whole House
BILL 25 — REAL ESTATE DEVELOPMENT
MARKETING AMENDMENT
ACT, 2018
The House in Committee of the Whole (Section C) on Bill 25; N. Simons in the chair.
The committee met at 2:48 p.m.
On section 1.
Hon. C. James: If I could just introduce the staff who are here with me today. Shauna Brouwer is ADM for policy and legislative division. Cynthia Callahan-Maureen is director of financial and corporate sector policy branch. Suzanne Anderson is senior policy adviser for financial and corporate sector policy branch.
T. Redies: To start with, did the minister consult with the industry regarding this bill, and if so, what was the response you received from the industry?
Hon. C. James: Yes, there was consultation. We spoke to a number of developers. We also spoke to UDI, the Urban Development Institute, and we talked to a couple of very large developers. We want to make sure, as we look at…. As we go further in the bill, I know we’ll have discussion around the reporting and the options around reporting. UDI, the Urban Development Institute, has come out in support of the direction.
T. Redies: Why not focus on disincentivizing the flipping of condos, instead of just collecting more information?
Hon. C. James: I know we’ve had this conversation in other areas, but the direction of this bill is to collect the information that is needed to make sure that we are enforcing tax laws, to make sure that people are paying the correct tax.
This is action. This, in fact, is taking action. For people who may be using condo flipping as a way of avoiding taxes, this bill takes care of that. We will now have a tracking mechanism that then can be shared with CRA and can then make sure that people are paying their fair share of taxes. If further steps are needed after that, after the information is gathered, that’s obviously a consideration, but the first step is to have the information. Right now we don’t have tracking. There isn’t any tracking that was done.
T. Redies: Thank you, Minister, for that answer. Having said that, though, if this is such a significant issue, is really just the tracking of information going to be sufficient? Do you feel that it’s going to be sufficient in order to stop the practice of flipping condos for pure profit?
Hon. C. James: Thank you for the question. You know, I could go on, but I don’t want to. I want to make sure we stay focused on the bill.
As the member knows, we have a 30-point housing plan. We believe that it will take a number of measures to address the crisis that we see right now in the housing market. This is not something where one measure is going to address the crisis that has been in place for a number of years, but I do believe that this measure — making sure that people are paying their fair share of taxes and not allowing flipping of condos to be used for tax evasion — is, in fact, a deterrent in itself.
That information is critical. If the information had been collected by the previous government, we might have been talking about a different approach here, but there was no information being collected. So taking this first step is in fact, as I said, some action in itself in addressing the issue of tax fraud or tax evasion and curbing that. Then as further steps are taken, as I’ve said about our housing plan, we need to continue to monitor what’s going on in the housing market. We need to continue to make sure that we’re addressing the crisis.
T. Redies: I get that it’s very important to get the information. But if this is such a crisis, an issue, why did you not simultaneously look at introducing an additional capital gains tax or some sort of measure to stop the flipping? I’m not sure — maybe I missed something — if any of the other, the 30-point plan, directly deals with the whole issue of condo flipping. I guess I’m just curious. If this is such an issue, does the minister have any other plans up her sleeve to address this quickly?
Hon. C. James: Thank you for the question. I think the first piece I’d say is that it’s tough to tax something that we have no information on. Whether you’re talking about capital gains or otherwise, we don’t have the information right now. We don’t have information around who the individuals are, if they are paying the correct amount of tax now. That’s pretty critical to being able to make decisions. So that’s the first piece that we’re taking care of.
The second piece. The member mentioned capital gains, so just to speak to the capital gains issue. The federal act determines what capital gains are and what people pay taxes on, as the member probably knows. We have an agreement in place with the federal government right now that says that we have to follow their definition. As a future rule, if we decide to make changes to any kind of taxation that is determined by the federal government, we have to renegotiate the tax act with the federal government.
As I’m sure the member would know, that’s not going to be a quick solution here. So we want to move on the first piece, and then if future pieces are needed, as I said, we’ll take a look at those.
T. Redies: I used the capital gains tax purely as an example. I’m actually quite curious as to what other ideas the Ministry of Finance has to deal with this issue of flipping. It’s curious to me…. Minister, you mentioned that you can’t move on a tax without the information, yet you moved on the speculation tax, and it was pretty clear that there wasn’t a lot of information behind that.
I’m just curious, again, why you move on one tax where you don’t have a tremendous amount of information — at least, it hasn’t been clear to us — but on this tax, in particular, you only want to deal with the information issue.
Hon. C. James: Again, to come back to what this bill is speaking to, which is the presale condo and condo-flipping issue. Right now developers have no information available on the sale, on the flipping of the condos. We’re talking, in this bill, about enforcing existing taxes. We are talking about enforcing existing tax rules and people paying their taxes. That’s not information that we have available to us to be able to go and do the kinds of audits that are critical. That’s why getting the information is important.
Are there future steps that may be taken? Well, there are all kinds of ideas. The member has raised the issue of capital gains. I know that the opposition leader has put forward a bill on capital gains that has a number of issues about it. I’m sure there is a range of ideas. Right now, we are focused on getting the information so that we have the information to be able to make the decisions that we need to.
T. Redies: To the minister, please accept my apologies for using “you.” It’s a rookie mistake, and I apologize.
Thank you for the answer. I guess where I’m going is…. Does the minister believe that an additional tax of some sort on condo flipping will be a potential solution for this persnickety problem?
Hon. C. James: I think those are future discussions around the entire housing. I’m sure we’ll have lots of those discussions. We’re talking right now about the bill in front of us and the specifics that are there.
T. Redies: By adding the verb “must” on to section 11(3) of the Real Estate Development Marketing Act, the government is adding a higher level of responsibility to the developer with this clause. What is the intent, and what does the minister expect this will achieve?
Hon. C. James: This is, in fact, a clarification. This isn’t related to the changes that we were talking about — the new information that’s being collected by developers. This is, in fact, related to the existing act, the act that was brought in, in 2004. This just clarifies, consequential again to the other pieces, that the developer must do something that they’ve been doing already. This is not related to the new changes.
T. Redies: Okay. This bill obviously puts a lot of onus on the developer. Thinking about this from the perspective of the bigger picture, why did the Ministry of Finance focus in on the developer and not more use of, perhaps, the legal system to ensure that they were getting the right information?
Hon. C. James: Could I suggest to the member that we have that discussion at the next sections coming up? There are sections that speak in the sections coming up, so maybe we can just finish this off and move on to the next section so I can get to the specifics.
Section 1 approved.
On section 2.
T. Redies: Same question to the minister.
Hon. C. James: I don’t want to confuse the member across. This is very similar to the first section, which is, in fact, not a new provision. This one again is just clarifying the “must.” When we get to section 4, we speak about the new provision and why developers.
T. Redies: Again, I’m not sure if this is the right discussion point here, but it seems to me that the ministry is putting a tremendous amount of pressure on developers to obtain information. Developers are not necessarily in the business of obtaining information. They’re in the business of developing condos and buildings. Again, whilst I respect that this might be solidifying something that is already in place, I guess what I’m wondering about is what thoughts or discussions the ministry had on other options, rather than this.
If I can clarify, I’m coming from the perspective of making sure that the ministry actually gets the information it needs and developers don’t make mistakes. Again, not being in the business of collecting information, there might’ve been other ways to do this.
Hon. C. James: The question from the member around: why developers? If you’re looking at whose responsibility it is, developers really are the only ones. Presale condos are all about developers, because developers are the only ones whose presale contracts are being flipped. They’re the only ones, at the end, regardless of whether it’s flipped two or three or four times, who can transfer the title, because it’s their presale contract.
It is the developer who’s responsible for the transfer of the title. Therefore, the developer is the one who’s responsible for providing the information.
I know, in future sections, we’ll get to opportunities for the developer — if they gather information and provide it and there’s a hearing around that information. We’ll get to that in future sections. But that’s the basis of why developers are the ones who are responsible through this process. It’s their presale contracts. They are the ones who are responsible for the listing on land titles.
T. Redies: Yes, I understand that. I’m just suggesting there might be another way to do this. Again, I guess the question I have is: if this is what they’re doing already and the ministry is basically forcing to conform to what they’re already supposed to be doing, how are we going to ensure that they’re actually going to give the ministry the information that they require in order to enforce the taxes?
Hon. C. James: Just so I can be clear about the section, so that if there are people who are actually following along…. There may be people who are following along with the sections. This section, section 2, is not related to the new information that they’re required to gather. The member was saying if they’re doing it already. They’re not doing it already. Currently they’re not collecting the information around presales.
What this refers to as a phased disclosure statement, which simply relates to…. If they do a development in phases, they have to report the different phases of the development. So it’s not related at all. This is existing practice that happens right now that’s already in the act. We just clarified the “must” so that we make sure…. It was already there, it’s already practised, but it’s not related to the information that they’re collecting on presales.
I know the member wants to get to those questions. They are coming up in future sections, so we will have a chance for that dialogue. This simply relates to existing practice. This is consequential.
Section 2 approved.
On section 3.
S. Bond: Good afternoon, Minister. Section 3, again, is related to the current practice. It’s an amendment. It looks at the issue of a phased disclosure statement, a consolidated disclosure statement. Prior to the amendment, who typically ensured that the required information was included in the phased disclosure statement? This adds the responsibility for the developer.
The disclosure was required previously, but it looks like there was no one responsible for ensuring that the required information was there. Who was accountable before?
Hon. C. James: It was always the developer. If you read the full section that was there previously, it was implicit that the developer collected that. That’s what’s been occurring. This just makes it clearer. That’s why the amendment is here.
S. Bond: So it confirms current practice.
Hon. C. James: Correct.
Section 3 approved.
On section 4.
T. Redies: Who is designated to act as the administrator for the Real Estate Development Marketing Amendment Act and the Property Transfer Tax Act?
Hon. C. James: In the tax branch, there is an actual position called “the administrator.” I don’t know if the member wants the specific name, but there is an actual position that is designated as the administrator.
T. Redies: Thank you for that clarification. What will be done to ensure the level of transparency surrounding the administrator’s roles, responsibilities and decision-making processes?
Hon. C. James: The administrator will have requirements and guidelines that they will work within. Those will be required to be posted on the government website. They’ll be transparent. They’ll be available for everybody to review.
T. Redies: What does the minister estimate the number of assignments to be?
Hon. C. James: I think the question from the member is exactly the crux of the challenge that we face, which is that there isn’t tracking right now of condo flipping. To know what numbers we’re dealing with, UDI gave us an estimate of about 10 percent. That was their estimate of condo flippings, but again, the land titles office simply gets the information after it has been deposited. We have no idea how of many times that condo may have been flipped before it becomes registered with land titles.
That’s exactly the information we’re trying to get to. That just gives the member an estimate that was certainly provided to us.
T. Redies: Just to clarify, UDI believes, says, that only 10 percent of condo sales are being assigned. Does UDI have any information or any guess with respect to how many are not paying tax?
Hon. C. James: No — precisely the reason we need this to know how big the problem is or how small the problem is or what the situation is. I think British Columbians certainly expect that people will pay their fair share of taxes, and that’s really why we’re moving on this.
T. Redies: I totally agree with the Minister of Finance. British Columbians do expect people to pay their fair share of taxes. I’m a little surprised — based on, I guess, the furor about this out there — that UDI only indicates that 10 percent of condos are being assigned. Again, I guess, the number would be much smaller where the tax was not being paid.
I’m just curious. Does the minister really feel that this is a big enough problem that we have to put this type of legislation and onus on the developer in place?
Hon. C. James: Again, remember that from UDI this is also anecdotal. This is information that’s anecdotal from UDI as well. Whether it’s 10 percent or 50 percent, I think we all know that it’s a problem. We have heard the stories, as I’m sure the members have, about condo buildings that people go by at nighttime where the condos are dark, where people have left them vacant, where they’re using them to flip. I think it’s exactly the reason that we have to gather this information to know what kind of magnitude we’re dealing with.
S. Bond: We’ve asked this question related to some other taxes that the Finance Minister has put in place. I’m wondering: despite the lack of data on how big the problem is — really, what we’re trying to determine — has there been any projection of increased revenue related to closing the gap in terms of people who are avoiding paying their tax?
Hon. C. James: No, nothing has been built into the budget. Again, I think it’s critical that we have the information and to know what we’re dealing with to be able to really gauge what that would look like.
S. Bond: I appreciate that. When the government releases the reporting data, will the information be separated out into arm’s-length assignments from non-arm’s-length assignments?
Hon. C. James: In reporting out, we’re really talking about a transfer of rights and obligations. At this point, we’re not looking at breaking that out. If someone has a right and an obligation, whether it’s a family member or non–family member or arm’s length or otherwise, they have the right and the obligation through the presale. At this point, we’re not looking at any kind of breakout. We’ll be listing the number and making decisions based on that.
S. Bond: Thank you for that. Related to the information, it’s always important, we know, that there’s a balance between protection of privacy and freedom of information. Can the minister confirm that she has engaged the Privacy Commissioner on the privacy sections of the bill to ensure that they comply and that the commissioner is supportive?
Hon. C. James: Yes, there were no concerns. We did consult, and there were no concerns on the very specifics. As the member knows, as we get into other sections, there are parameters around what the information can be used for. That’s very important to make sure that privacy is there, and we’ve got that in the bill.
T. Redies: I get to ask the question I’ve been wanting to ask all day. Why is the entire onus on the developer for collecting and reporting?
Hon. C. James: Thank you to the member for the question. I think the easiest way to think about it is that it’s the developer whose contract it is. The developer has the presale contract, and then it gets flipped. It may be flipped a number of times until the very end, when it’s going to be the final purchase. At that point, it gets registered with the land title office, and it’s the developer who’s responsible for doing that.
To have the responsibility be on the individuals who flipped all the way along doesn’t make sense. It’s the developer whose contract it is, and it’s the developer who’s responsible, currently, for requiring that to be registered at the land title office in the last sale. Therefore, from our perspective, it makes good sense.
I think, based on the structure, it makes sense for the developer to be responsible for collecting that information, because it’s different information all the way along. It’s the developer who is the one who was tracking that, because they’re the ones who have to put the registry on the land titles office. So that’s why.
T. Redies: What happens if a developer does their best to collect the information but is unable to do so? Are they going to be found in violation of the act?
Hon. C. James: Thank you, Member. I knew we’d get to this question as we were going along in the sections. I think, just as the expectation is in place for many other government programs and services when people are asked to collect information, the administrators are reasonable in their expectations around that information. They expect the individual to do their due diligence in submitting the information.
There is a further check and balance. If the CRA, for example, decides that taxes aren’t being paid, it’s up to the CRA to ensure that they verify that further information. So the developer has to do their basic due diligence. They have to make every reasonable attempt to do that. That’s the expectation, just as it is with other programs and services.
If a developer failed, if they were shown to fail to do their due diligence to collect the information or to intentionally mislead the administrator, that’s when you get into the fines that we’re going to talk about later as we get into the bill.
The expectation is that the developer do their due diligence, due reasonableness. It’s not up to them to do the complete tracking, to follow up on the piece. They have to do their due diligence to gather the information, provide that information, and then if a tax issue came up, it would be the CRA that would be doing the further due diligence.
T. Redies: Thank you for the answer, Minister. In the previous answer, the minister referenced a situation where there would be four or five flippings of contracts. Could she just walk us through how that would work in terms of the developer actually being able to follow that? What happens if the contracts are being flipped without the developer’s knowledge?
Hon. C. James: What this legislation does is it requires the developers to actually amend their contracts around presales. In that contract, they will require that the buyer provides their information, and then the developer will be responsible for providing that information to us on each of those presales. So it will actually require an amendment to the contract for the developer to actually require that information to come in. That way, they’ll be informed, obviously.
T. Redies: I’ll try not to belabour this, but if you have somebody who is assigning the contract to another person and they decide not to disclose that information and the developer doesn’t know, how is the change in the contract actually going to make a difference here in terms of actually getting the information that the ministry is looking for?
Hon. C. James: Each of the contracts, when they’re being flipped, will be individual contracts. The developer will be required to consent to that contract. When they consent to that contract, obviously, they’ll see if the information is there or not there. That’s the due diligence. That’s the tracking, so to speak, that happens.
We’re working with the industry. We’ll work to look at how that happens, to make sure that it’s a smooth process and that the implementation works for them. They’re quite happy to come, because, obviously, that’s a benefit to them.
We want to make sure, as I said, that there is tracking. That will happen because these will be individual contracts where there will have to be consent from the developer for that flip to occur. Therefore, the information, because the developer will be responsible for that information, will be collected and tracked.
T. Redies: Does the minister accept that there may be times when, actually, the developer may not even know that the assignment has taken place? Or is the minister comfortable that her process is foolproof and will have no unintended consequences?
Hon. C. James: Yes, I am confident because the developer has to consent. That’s an incentive and a very specific place where the developer actually has to touch this information. So I am confident.
I think the other piece, as I mentioned, is that we’re working with UDI. They’re wanting to sit down, through regulation, and be able to determine what the smoothest process is and what the best process is to be able to gather that information that provides the intent and the direction that is in the legislation and also supports the implementation. So yes, I am confident.
T. Redies: Thank you to the minister. The government has indicated that there are going to be some very hefty fines for developers who don’t comply. Why has the government neglected to regulate assigners and assignees and excluded them from penalties?
Hon. C. James: I think it’s important to note that REDMA, the act that we’re talking about here, governs developers. If an individual who is flipping a condo, a purchaser of a flip of a condo, doesn’t provide accurate information, that goes to the tax people. The tax people look at tax evasion. There are very severe penalties for those individuals.
Those penalties exist for individuals already. If they provide false information to avoid taxes, there are very clear penalties in place. This is speaking to the developers through the development, basically — the Real Estate Development Marketing Act. Those are the individuals that the act touches on.
T. Redies: Thank you, Minister, for that answer. I want to walk the minister through a situation that could occur. It’s a little complicated, so just bear with me.
You have an assignor and assignee that agree to a $20,000 assignment, but they don’t disclose that they actually have a separate deal for $100,000, a $100,000 assignment fee. The developer files with the administrator that the assignment fee is $20,000, because that is correct as far as they know.
This situation could technically have the developer in breach of the act even though the assignor and assignee are at fault. This could leave the developer liable for millions of dollars in fines even though they did their due diligence. I appreciate that the minister had indicated that administrators are fair, but you can see some of the lengths that people could go to in terms of not disclosing what is actually happening.
I guess what I’m interested in hearing from the minister is: how does the legislation prevent that type of thing from happening, and how is the developer held, I guess, not accountable for the deceptions of others?
Hon. C. James: I think this is very similar to the discussion we had earlier, which is that, in the scenario that the member raises, the developer did their due diligence. They collected the information that they were given. They collected the information on the assignee and the assignor. They provided that information. If that information was not accurate, it is the CRA and audits that then capture the issue of the assignee and the assignor when the information is provided.
The developer would do their due diligence. That would be done. Then, as I said, audits, really, would take care of the other pieces — of whether the assignee or the assignor was not being accurate in the information that was provided.
T. Redies: Thank you, Minister, for that answer. That’s all well and good, and the minister has also been very clear that administrators will be fair, but I’m wondering why there was nothing in the legislation to protect developers on a best-efforts, due-diligence basis.
The legislation, as it reads right now, still seems pretty open-ended in terms of the penalties that developers might be held liable for, even if they acted in a best-efforts perspective.
Hon. C. James: We’re jumping ahead. This is actually, probably, section 8 or 9, further up, where we talk about penalties. But I’ll go through the process because I think it’s helpful to the member’s questions right now. As I said, we’ll have a further discussion, if the member is looking for it.
I think, again, there are interpretations around “reasonable effort” that are common within government practice. The administrator expects the developer to do a reasonable effort. If there was, then…. The member can tell me if this is helpful, to just run through the process of what would happen if there was a complaint or if there was a problem. Otherwise, the developer does their due diligence. They provide the information. That’s the end of their responsibility.
If there was a concern about whether the developer had done their due diligence or a concern about whether it was accurate information, the administrator is the first step. The administrator does whatever gathering of information that they need to do. If there was a belief that the developer was non-compliant, a belief that the developer hadn’t done their due diligence and was actually non-compliant, then, through REDMA, the superintendent or an investigator conducts an investigation. Then there’s an investigation. So another opportunity, again, for issues to be put forward.
I think I want to stress, again, that due diligence is the expectation. It would have to be a reasonable effort, to believe that due diligence wasn’t done, to go through this process. There would be an investigation. There would be a written report that would come from the investigation. The developer, then, would receive a notice of the hearing and a copy of the investigator’s report — again, another opportunity.
They then enter into an undertaking that sets out steps for the developer to rectify matters, which, again, may be paying the penalty. It also may be other steps that they determine through this investigation. There may be an order, if it’s something that’s been shown that they didn’t do their due diligence, to cease marketing or to carry out specific activities with the developer. Then it goes in further steps.
I think, again, there are lots of opportunities here, as you can see, for discussion if that occurs. But the expectation is due diligence. As I said, that’s a pretty common expectation, for information to be gathered.
T. Redies: Thank you for the very comprehensive answer in terms of the process. My question was really around why that is not enshrined in the legislation: i.e., if the developer acts in good faith and takes appropriate due diligence, these penalties won’t apply. Notwithstanding the process, the legislation is still very open-ended. It basically says that the developer is liable for these penalties regardless of whether they have undertaken due diligence or not.
Hon. C. James: This is, again, practice in legislation, the way legislation is interpreted — that due diligence is there. You do not need to define it because that’s how it’s been defined by the courts. It’s how it’s defined in legislation. That’s why the legislation is written the way it is, through all of the drafting process and with the legal advice that’s there.
If we were going to be very specific and put further details about work that had to be done, that would be very different, but we’re not. We’re using the interpreted term of “due diligence” — that that’s the expectation of the administrator. So there isn’t a requirement to put anything further in there.
S. Bond: I’m sure the minister can understand our concern here. First of all, we are supportive of the concept of people paying their taxes. We think that’s a good idea, and if someone’s avoiding that, we need to find a way to make sure they pay their taxes. We’re also concerned about condo flipping, and I know the minister is as well. So we want to make sure that where there’s a chance to not just collect taxes but to try to diminish condo flipping, we should take that opportunity.
I just want to pursue the issue of due diligence for a moment. Certainly, there is a definition of “due diligence.” This is a new requirement for developers, and the consequences can be significant. Who or how is the test…? How does a developer pass the due diligence test? They collect all the information to the best of their ability, and then something is inaccurate. It’s not…. How will that be determined? Who decides whether the developer has met the threshold for due diligence?
Hon. C. James: Thank you very much to the member. I appreciate the member…. As she’s pointed out, I think we all want to address this issue. This is a critical issue for British Columbians and a critical issue to get to the bottom of so we really have the facts and the information.
Again on the issue…. I think I’ve kind of identified this, but I think it’s important, perhaps, to go through it again. It is the superintendent who is in charge of the administrative penalties. That’s the process that we talked about before, where there is an opportunity for the administrator to have the discussion with the developer, for example. The superintendent then could hold a hearing.
There would be the chance for an appeal process, as well, if a hearing comes out with an administrative penalty being determined. There is a chance for an appeal process through the Financial Services Tribunal. So again, they have an opportunity for appeal.
There are offence provisions and kind of next stage…. Again, I don’t think it’s what the members are talking about. This is if somebody is actually approved for a charge if there was egregious behaviour. That then would be approved by Crown counsel. That would be a charge approved by Crown counsel.
That’s a much more severe situation than I think the members are referring to. I think the members really are referring to someone who has due diligence. They gather the information. Remember, again, they’re simply collecting the information on each of the presales. They’re providing that information. That’s their responsibility — to provide that information. The taxation provisions and other work happens through auditors through the tax department.
S. Bond: I appreciate the response from the minister. We remain concerned about the volume of information, about the integrity of that information, the onus being on the developer. We’re also very concerned about the whole issue of condo flipping. We think there needs to be an element of public accountability.
With that we are going to move an amendment to Bill 25. I have copies of it here in my name. I’ll share them with the Clerk and share them with the minister. I would move this amendment with my name attached to it.
[SECTION 4 by deleting the text shown struck out and by adding the underlined text as shown:
Requirements respecting
assignments
20.3 (1) Unless the developer does not
permit the assignment of the purchase agreement, a developer who
enters into a purchase agreement for the sale or lease of a strata
lot must include in the purchase agreement, in the prescribed form,
all of the following:
(a) a term prohibiting any assignment of the purchase
agreement without the prior consent of the
developer;
(b) a notice that, before the developer consents to an
assignment of the purchase agreement, the developer will be required
to collect from the proposed parties to the assignment agreement the
information and records referred to in subsection
(2);
(c) a term requiring all proposed parties to an
assignment agreement to give to the developer the information and
records referred to in subsection (2).
(2) A developer must not consent to any assignment of a
purchase agreement unless the developer first collects, from each
proposed party to the assignment agreement, all prescribed
information and records, including personal
information,
(a) respecting the identity of the
party,
(b) respecting contact and business information of the
party,
(c) respecting the terms of the assignment agreement,
and
(d) required for the purposes of section 20.5
[confidentiality].
(3) A developer who has consented to an assignment of a
purchase agreement must
(a) collect from the parties to the assignment a copy of
the written and signed assignment agreement,
and
(b) keep a copy of the assignment agreement in the
prescribed manner for the prescribed period.
Filing information respecting
assignments
20.4 (1) A developer must file with the
administrator, in the form and manner required by the administrator
and as required by the regulations, the
following:
(a) for each assignment to which the developer consents,
the information and records collected under section 20.3 (2)
[requirements respecting
assignments];
(b) if paragraph (a) does not apply, a statement that no
information or records were collected under section 20.3
(2).
(2) The administrator may require a developer to file
additional information or records for the purpose of verifying the
information and records filed under subsection
(1).
(3) A developer must comply with a requirement made under
subsection (2) within the period set by the
administrator.
Confidentiality
20.5 (1) Subject to subsection (2), the
administrator or another person having custody or control of
information or records collected under this Part must not use or
disclose the information or records except
(a) for the purposes of administering or enforcing this
Act, a taxation Act, the Home Owner Grant Act or the
Land Tax Deferment Act,
(b) in court proceedings related to this Act or an Act
referred to in paragraph (a),
(c) under an agreement that
(i) is between the government and another
government,
(ii) relates to the administration or enforcement of tax
enactments, and
(iii) provides for the disclosure of information and
records to and the exchange of similar information and records with
that other government,
(d) for the purpose of the compilation of statistical
information by the government or the government of Canada,
or
(e) to the British Columbia Assessment
Authority.
(2) If the superintendent has custody or control of
information or records collected under this Part, the superintendent
must not use or disclose the information or records except for a
purpose set out in subsection (1) (a) or (b).
(3) Except in respect of a proceeding under an Act
referred to in subsection (1) (a), the administrator or another
person to whom subsection (1) applies may not be compelled in a
civil proceeding to disclose or give evidence respecting any
information or records obtained by the administrator or person in
the course of exercising powers or performing duties under this
Act.
20.3 (1) All pre-sale contracts or assignments thereof must be promptly registered with the Land Title Survey Authority and made part of their publicly accessible registry, to include:
(a) Parcel Identifier (PID);
(b) owner or owners;
(c) purchase price; and
(d) date of transfer.]
On the amendment.
S. Bond: I know the minister and her staff are taking a look at the amendment. Maybe what I could do is include some commentary.
We believe there is a much more expedited way that we could collect this information. It would make it very clear who has the assignment, and it would also allow for it to be shared publicly. We are suggesting that we eliminate sections 20.3, 20.4 and 20.5, and actually create a new section, 20.3, which would require all presale contracts or assignments thereof to be promptly registered at the Land Title and Survey Authority and made part of their publicly accessible registry.
We have been very specific about the information that would be included, recognizing the importance of protection of privacy, and all of those things. The items we have identified that would be important to be registered are a parcel identifier, or a PID; the owner or owners; the purchase price; and the date of transfer.
One thing this would do is basically shine some light on the people who have a contract or an assignment. It means that there would be a much higher degree of ability to track whether or not a condo is going to be flipped. If a person is purchasing multiple or has multiple assignments or contracts, it’s pretty clear they’re not going to live in all three, four or five of them.
This is really an opportunity to be transparent. It’s an opportunity to take bold action, in fact, and that was the theme of the minister’s press release. We think that it also alleviates some of the significant concerns we have for developers. It is not an inconsequential issue if there are challenges with the integrity of information. Developers will face fairly significant increases in penalties, and they may well have performed their due diligence and done a reasonable degree of certifying that information.
We think it’s a direct, transparent way for us to get a far more significant handle on condo flipping, which is at the root of the issue. Obviously, collecting taxes matters too, but we need to get to the source of the problem, and that is condo flipping.
Hon. C. James: Speaking to the amendment, I appreciate the member providing it. Again, it’s a quick glance at the information. We just received it now.
I think there are a number of issues and a number of concerns that we see just off the bat. First, this doesn’t show anybody responsible. It doesn’t show anyone to be responsible for registering this, for adding information. It doesn’t say whether it’s the developer or the assignee or the assigner. It doesn’t provide any information about who’s responsible. That’s a problem, because if no one is responsible, how do you enforce anyone? So it doesn’t seem enforceable. That’s the other piece that I think is important here.
Again, this information would have to be provided through a completely different act. This is REDMA, which is the developer’s act, so we have no ability to be able to address anyone else’s responsibility through this act. It would have to come through a completely different act. Again, it’s not something…. The amendment wouldn’t make any sense, because the act doesn’t apply.
This also doesn’t provide any of the information that we talk about when it comes to taxation. So this would provide no ability to be able to do exactly what we’re talking about in this act, which is to be able to enforce CRA, because there isn’t information gathered here — for example, around social insurance numbers. There isn’t any information that would be gathered there. That is, again, a problem. It would take the teeth out of some of the pieces of the legislation that’s here.
Then the final piece is that there is no authority or jurisdiction for us to require non-residents to put this information forward. So if it was expected to have the individual registering, if they were the person who bought or sold, if they were required to put the presales there, we have no jurisdiction to be able to impact them. In fact, this would impact British Columbians but no one outside British Columbia who would have the information.
I speak against the amendment. I think there are so many issues — the biggest one, in particular, of course, being that it doesn’t apply to this act — that make the amendment not workable.
Amendment negatived.
S. Bond: I appreciate the minister’s reaction. Certainly, there may well have been some genuine questions and concerns there. Having said that, we think there were ways to actually look at the international residents as well.
With that in mind, we’re going to make a second amendment. In this case, what we will do is…. I’m going to move that the sections be left in place — 20.3, 20.4, 20.5 — but that we are going to add the same section that we provided to the minister previously. We would like to move that it be added as section 20.5(1).
[SECTION 4 by deleting the text shown as struck out and adding the underlined text as shown:
20.5 (1) Subject to subsection (2), the administrator or another person having custody or control of information or records collected under this Part must not use or disclose the information or records except
(a) for the purposes of administering or enforcing this Act, a taxation Act, the Home Owner Grant Act or the Land Tax Deferment Act,
(b) in court proceedings related to this Act or an Act referred to in paragraph (a),
(c) under an agreement that
(i) is between the government and another government,
(ii) relates to the administration or enforcement of tax enactments, and
(iii) provides for the disclosure of information and records to and the exchange of similar information and records with that other government,
(d) for the purpose of the compilation of statistical
information by the government or the government of Canada,
or
(e) to the British Columbia Assessment
Authority., or
(f) for the purposes of section 20.7.]
On the amendment.
S. Bond: In essence, what this does is add an additional requirement. This is all about public transparency. It leaves all of the concerns addressed that the minister outlined in her reaction to the first amendment. What it says is that we would like to see those presale contracts or assignments thereof registered with the Land Title and Survey Authority. We are very concerned about the gap in this legislation — that while there’s an opportunity to collect taxes that may not have been paid, there’s also an opportunity to take a step to minimize condo flipping at the same time.
Our second amendment looks at, as I said, leaving in place sections 20.3, 20.4 and 20.5, and adding a section 20.5(1), the very same paragraph, an amendment that was provided previously. We have copies of that one as well, which I will give to the Clerk.
Hon. C. James: Thank you for the next amendment. I speak against the amendment, for many of the same reasons that I’ve already talked about. I think this doesn’t change it. Just moving it at the end of this section doesn’t change many of the issues and concerns that I’ve already raised.
The fact that it doesn’t include personal information and, therefore, wouldn’t be able to be shared with CRA…. That’s the whole purpose of a section of this bill. So that’s a problem.
It’s identified as…. The parcel identifier would be included. There isn’t a parcel identifier right now — until you get to the end, until you get to the closing and registry on land sales. So that would mean creating an entirely new structure.
It changes the mandate of the Land Title Act. The Land Title Act doesn’t require presales right now. So that would require the Land Title Act to be changed.
There may be future opportunities to take a look at some of these pieces, but it certainly doesn’t fit this bill. It doesn’t fit the Real Estate Development Marketing Act — which focuses, again, as I said, on developers.
Then there are the privacy issues, which, again, are issues that would have to be looked at by the Privacy Commissioner. The member had raised the concern around privacy earlier in the debate. We take that seriously as well. If we were going to change the way we do this, all of this would be required to be run past the Privacy Commissioner, around those issues. These are private contracts, which then would become public. That is a very large privacy issue, I would suggest, that needs to be, certainly, reviewed by the Privacy Commissioner.
I would speak against the amendment.
S. Bond: Well, just a few brief comments about that. The minister has outlined some concerns. I think, though, that we want to be clearly on the record by suggesting that we think there is a way that this would work.
The issue of condo flipping. Developers have a role to play in making sure that information is collected. There are very high stakes, and we’re about to move on to the section that talks about just how high those stakes are. At the end of the day, there are no guarantees, even when we look at the legislation that has been provided, that this will have any sort of deterrent effect on condo-flipping.
I appreciate the minister’s comments and questions. Over the next period of time, should this amendment not be successful, we’re going to look for ways…. We understand the challenges with releasing information publicly, but if a person is purchasing or has a contract for five condos, that is a quintessential problem when it comes to condo-flipping. One way of doing that is by shining some light on those contracts or those assignments. That is what this amendment is designed to do.
Hon. C. James: As I said earlier, I am happy to talk with the members across the way about housing measures that are going to address the crisis in housing. I think there are all kinds of opportunities for us to have that discussion, and I think there are future actions that need to be taken. But again, we need to make sure that amendments that are coming forward fit the act. I think that’s the biggest piece.
As I said, this act doesn’t actually apply in cases…. Also, I would imagine, if I brought forward an amendment that didn’t address the privacy issues or that we hadn’t run past the Privacy Commissioner, I’d expect the members to raise questions about that, as I would. I think it’s really critical to make sure, when we’re bringing those issues forward, that those questions have been raised.
I appreciate the work of the members. I appreciate the effort to look at how we make sure that we’re actively doing everything we can to address the housing crisis. That certainly continues to be our government’s direction and will continue to be our government’s direction.
Amendment negatived.
Section 4 approved.
The Chair: Let’s take a five-minute recess.
The committee recessed from 4:12 p.m. to 4:19 p.m.
[N. Simons in the chair.]
Section 5 approved.
On section 6.
T. Redies: This section authorizes the superintendent to appoint investigators by naming a specific person or person holding a specified title or position as an investigator. Could the minister tell us how many investigators does she expect to be appointed?
Hon. C. James: I can get the specific information, but this doesn’t actually speak to numbers. This speaks to how people are assigned. I thought it’d be best to just talk about the current situation. Currently, for every investigation, the specific appointment order has to go in to have somebody appointed as an investigator. This provides the superintendent the ability to appoint people as investigators.
There are 19 staff, total, in this section. So it just gives the ability for the superintendent to assign someone to an investigation as a investigator, rather than go through a specific order. I can get the specific numbers for the member. I don’t expect you’re going to see a change there.
T. Redies: I just want to confirm: is the minister saying that there will be no increases to the investigators and that this is just really a section that talks about the process of appointing the investigators? Also, if there are going to be investigators, has there been any consideration of what that potential impact might be on the superintendent’s budget and the government’s budget?
Hon. C. James: This wasn’t the discussion, around increasing the numbers or looking at an expansion. This really was speaking to making sure that we were efficient. Streamlining the process, I guess, is the best way to describe it, so that if investigations need to occur, they would need to occur.
Again, this comes back to our original discussion, at the very beginning, around the lack of information. At this point, it’s really hard to know whether there will be a whole number of investigations; whether, as we talked about before, what percentage of the problem there is.
I am certain that if the superintendent feels there is a need for more investigators, there’ll be a discussion, but that wasn’t the discussion. The discussion was making sure we streamlined the process for the existing individuals to be able to be appointed to investigations.
Sections 6 and 7 approved.
On section 8.
S. Bond: Now we get into the sort of meaty part of the bill from a monetary perspective. Can the minister just outline for us how the numbers were arrived at? As the minister can imagine, this is one of our significant concerns. New responsibility, new expectations around collecting data, all of those things, and then we have administrative fines that are being increased. So these are administrative fines. How will they be assessed, and how are the numbers arrived at?
Hon. C. James: The fines are being increased to match the maximum fines. I think it’s important, again, to state that these are maximum fines. It is the discretion of the superintendent to apply them. This is a maximum, so that you have that range to be able to utilize as a superintendent in discretion in applying them.
The maximum fines are being increased to parallel the 2016 increases that happened under the Real Estate Services Act. So the previous government in 2016 increased the fines in the Real Estate Act, and these are to mirror those fines that occurred in the Real Estate Act to prevent fines being used as just a way of doing business. If the fines are low enough, there are feelings that individuals could just say: “I’ll include that as my price of business, and I’ll pay the fine.”
That’s why they’re being increased. We felt it made sense to parallel them to the increases in the fines that, as I said, were instituted by the previous government under the Real Estate Services Act.
S. Bond: Thank you to the minister for that response. Can the minister give us just a brief update on how often the current fines were levied or the track record of the using fines as a disincentive — how often have they been used?
Hon. C. James: I’ll run through a summary of the administrative fines imposed since the act came into force. I think that’s helpful, because there are a range of not just fines that have been put in place, but there are other orders that I talked about earlier that are also opportunities.
In many cases, cease marketing orders are used more frequently than penalties, because they have an immediate consumer protection piece. If someone is doing something they shouldn’t be doing, the cease order is something immediate that happens. They’re used more often than you find with fines.
Undertakings. There are more than 100 undertakings to achieve cooperation around the REDMA Act that have occurred per year. The superintendent of real estate has issued 21 consent orders. Many of them have multiple breaches of the act. The most common breaches have involved inadequate disclosure, mishandling of deposits and a breach of undertaking, so three different consent orders.
The penalties imposed by the superintendent were a range — everything from $1,500 to $45,000, with typical amounts at $20,000 and $30,000 for corporations and $5,000 to $10,000 for individuals. That just gives the member a range of the kinds of fines that have been imposed since the act came into place.
S. Bond: Thank you to the minister. That was very helpful. That’s not an insignificant number. It was actually a bit surprising, I think. Did the minister look at what the calculation might look like today, in terms of the revenue generated from these fines, with a new regime in place?
Hon. C. James: I think this is, again, the same answer as I talked about before. It’s really hard to know at this stage. As we had our discussion about what people guesstimate are the numbers for condo flipping and the problem, as I said, everything from 10 percent to 50 percent have been in the discussions out there.
We’ve not included any fine money, because again, we just don’t know the magnitude of the issue. I expect that a year from now, we’ll be able to have this conversation, and we’ll have some facts about what has occurred if these pass. But right now, as I said, it’s simply gathering the information.
Section 8 approved.
On section 9.
T. Redies: Can the minister please explain the intent of this section and how it’s going to affect the developers?
Hon. C. James: This again, similar to the first couple of sections of the bill, isn’t related to the new changes. They’re related to existing practice. This is a correction.
These were in earlier sections but should have been added to this section in 2014, when it was finalized. It didn’t happen, so this is correcting that.
Sections 9 to 11 inclusive approved.
On section 12.
S. Bond: I know that the minister will not be surprised to hear me stand up once again and have a conversation about this. This is about allowing regulatory powers within the bill. Could the minister please describe for us why cabinet would need power to decide what kinds of information must be kept or what additional information might need to be collected?
I remember being the recipient of many, many conversations when the member was in our seats here on the opposition side, and we see a pattern now of just about every piece of legislation building in regulatory-power-making. Could the minister explain why this is necessary, what she expects to use this additional reg-making power for?
[S. Chandra Herbert in the chair.]
Hon. C. James: I appreciate the member’s question. I think it’s important to note that the regulatory powers are not wide open. I think that’s important to note in this bill. I take the member’s point. If you look at subsection 20.3(2), we actually limit the regulatory powers. So although we’re putting in place regulatory authority, it is limited by subsection 20.3(2).
The reasons we’re looking at the regulatory powers — a couple of pieces just to mention. We want to make sure we have the right info for the CRA, and that sometimes changes around info they need for tax purposes, to do the tax work and the audits that we talked about earlier. For example, collecting identity information might be different depending on whether the individual is a Canadian or a non-resident or a corporation. There might be different requirements around what information is to be gathered.
Then I mentioned earlier that we were consulting with the developers. We want to make sure that we also talk to the developers about the individual information. Doing it through regulation gives us a chance to have those conversations and ensure that we’re taking into account those issues as well.
Sections 12 to 15 inclusive approved.
On section 16.
T. Redies: The timing of this bill seems to be primarily determined by cabinet. To the minister, when should the public expect that the crucial sections of this bill — such as 4, 5 and 12 — come into effect?
Hon. C. James: As the member knows, we have to go through the process of making sure the legislation is passed. Once the legislation is passed, then we’ll take a look at the timelines.
Staff know it’s a priority. It’s been given a priority. It’s going to take some time, obviously, to develop the regulations to make sure that the information is out there so that developers are aware of the new work.
I don’t want to give a timeline at this point, because that work is just going to start once the legislation is passed. There’s obviously some work that’s gone on, but the majority of the work happens once the legislation is passed, and it’s going to take a little bit of time to put that in place. But as I said, it’s a priority from our end.
T. Redies: Is the minister expecting any more amendments to REDMA in the future?
Hon. C. James: I don’t think anyone could say whether they may or may not. I think our 30-point housing plan has a number of pieces to it. We will, obviously, be following very closely the, we hope, affordability issues that get addressed through the process. I think that’s something that I couldn’t commit to one way or the other because I think it’ll depend on what happens in the housing market over the next while.
S. Bond: We just want to thank the minister for her answers today and for the process. We want to thank the staff who have been very helpful in both briefings and with the support to the minister today.
We do want to remind the minister that we’re going to be looking very carefully at the sort of deterrents that can be put in place for condo flipping, making sure that there is a threshold for due diligence for developers, because there were some very significant fines that will be attached here. We want to be sure that the message has been received loud and clear — that we are concerned for those developers, making sure that…. Yes, they need to follow the expectations. There is a process of due diligence, but there’s also a fairness test for them as well, as the new legislation is introduced.
With that, we thank the minister for her time.
Section 16 approved.
Title approved.
Hon. C. James: Thank you to the members for the questions. Thank you to staff for the support during the bill.
I would agree with the member. We’ll also be watching the implementation. I think that’s very important in introducing these changes. It’s part of the reason that we want to make sure we have that consultation.
With that, Chair, I will move that the committee rise and report the bill complete without amendments.
Motion approved.
The committee rose at 4:38 p.m.
Committee of the Whole House
BILL 23 — LOCAL GOVERNMENT STATUTES
(RESIDENTIAL RENTAL
TENURE ZONING)
AMENDMENT ACT, 2018
The House in Committee of the Whole (Section C) on Bill 23; S. Chandra Herbert in the chair.
The committee met at 4:50 p.m.
Hon. S. Robinson: I just want to take a moment to introduce some staff who are here today to answer questions that the other side might have. I’d like to introduce…. I’ve got Tara Faganello here, as my ADM, and I’ve got Jennifer Hill and Lesley Scowcroft as well, our policy analysts who are here to help us get through the committee stage of this bill.
On section 1.
S. Sullivan: On section 1, the point that I wanted to ask about is: “‘residential rental tenure’ means a form of tenure as such form of tenure is defined by a local government….” The question is about that wording. Will each government…? Being expected to define what a residential rental tenure is, is it expected that all municipalities would adopt a similar definition? And if they adopt a weaker definition, then what will the implications be?
Hon. S. Robinson: Under the legislation, local governments will be required to define residential rental tenure. The approach does align with the enabling nature of local government legislation, and the ministry will be providing guidance materials to support local governments who choose to use the authority. So there will be some consistency around that.
S. Sullivan: The council will be able to come up with their own definition. If that’s a weak definition and maybe overly broad, will this affect the ability of this bill to actually have effect?
Hon. S. Robinson: I appreciate the member’s question. “Form of tenure” really means the legal basis on which a person occupies a housing unit. What we mean by “residential rental tenure….” It’s really intended to refer to the nature of how a person occupies a housing unit. At a basic level, the definition could be defined such that it means that the unit is occupied by a tenant under a rental tenancy agreement. Having the local governments define what they mean by that is consistent with the enabling nature of local government legislation.
Another example I’d provide the member, where we have an instance like this in the act, is where local governments can define affordable housing in the density bonus provision. Again, it gives local governments the ability, based on their unique circumstances, to define for their community.
Section 1 approved.
On section 2.
S. Sullivan: This is the one that says: “of any area, the notice must…of any area or the residential rental tenure in any area, or limits the form of tenure to residential rental tenure in any area….”
I’m just wondering. Does this change the notification to be different, say, than a regular ownership piece of property, something that is being created? Will owners be treated differently from renters in terms of the notification area?
Hon. S. Robinson: The answer is no. It’s the same.
Section 2 approved.
On section 3.
S. Sullivan: The wording that I want to know more about is this (b)(i)(A): “alter the use.” What is the purpose of this additional clause? Basically, there are a lot of problems of approving housing because of a long-drawn-out public process.
With the addition of this clause, will it cause longer approval processes, being unable to alter any area of the bylaw?
Hon. S. Robinson: The purpose of this…. It establishes that following a public hearing on a bylaw, a council or board cannot alter a part of a zoning bylaw that would require that housing be rental tenure — in other words, rental housing — without further notice or hearings. It’s about making sure that the public is engaged.
S. Sullivan: Can I clarify, then? It is possible to alter after another public hearing.
Hon. S. Robinson: Yes.
Section 3 approved.
On section 4.
S. Sullivan: This says, “limit the form of tenure in accordance with section 481.1,” provides the local government the power to limit the form of tenure. I’m just wondering about the purpose of this section. What power does the province maintain once these sections have been added? Are there any unintended consequences that we might able to feel given with the power to limit the form of tenure? Will this give rise to some other questions about the housing?
Hon. S. Robinson: First of all, the purpose of this is to establish a new authority that would allow a local government to restrict the form of tenure of housing units within the confines set out in the new section, which is the 481.1. It also provides for local government to set different rules in relation to restrict in the form of tenure of housing units for different zones and locations within a zone.
Just like with any other zoning that local governments do…. Local governments monitor to make sure that the zoning is working for their community. This is just another tool that local governments can use. The expectation, which we have for all the zoning that local governments do, is that they monitor to make sure it meets the needs of the community.
Section 4 approved.
On section 5.
S. Sullivan: Section 5. This is: “Residential rental tenure. A zoning bylaw may limit the form of tenure….” And then: “Strata rental bylaws and housing cooperative rules. If a local government adopts a zoning bylaw that limits the form of tenure to residential rental tenure….” A question about that. I guess the first one is: what is the purpose of this clause?
Hon. S. Robinson: I appreciate breaking it down. We’ll just start with the purpose.
It establishes rules that set out how local government may use the proposed authority that would allow a local government to require that housing be residential rental tenure or rental housing. It also establishes that local government may only require that housing be rental housing for locations where multiple family residential use is a permitted use, and it sets out that a local government may require that a certain number or percentage of housing units in a building be rental housing. A local government that chooses to use the proposed authority would be required to define residential rental tenure in its zoning bylaw.
S. Sullivan: Giving local government broad powers to regulate some of these things. Does the minister expect any market consequences? Clearly, this is a change in the way properties can be dealt with.
Hon. S. Robinson: Well, there’s certainly a rental market. That market, I expect, will be able to flourish a little bit more, given that there’s another tool that local governments can use. Again, this is a tool that local governments can use based on their own local needs. Recognizing that what happens in Fort St. John versus Richmond versus White Rock versus Merritt…. There will be different kinds of communities and different kinds of needs.
Local governments already have some very significant broad authorities to take a look at how to do zoning, whether it’s industrial, whether it’s residential, whether it’s multifamily, whether it’s commercial. They already have some significant powers to do good community planning on behalf of their residents, and this is another tool that will be available to them to use, if that’s what their community needs.
S. Sullivan: It’s 481.2 which denies the council the ability to designate residential rental tenure that contravenes both strata and co-op bylaws. So what if a strata or a co-op organization emerged on land already zoned as residential rental tenure? Who would be in contravention of the other’s bylaws?
Hon. S. Robinson: I want to remind the member that right now they can’t zone for residential tenure. It just doesn’t exist. It’s not a possibility at this point.
S. Sullivan: If a strata should try to impose that, would that be, then, not allowed?
Hon. S. Robinson: The purpose of this is it establishes, where there is a zoning bylaw that requires housing be rental housing, that the bylaw does not override any bylaws that a strata corporation or housing cooperative may have respecting rentals. What the co-ops currently have — it respects that. It just reflects the guiding principle that a zoning bylaw that would require housing to be rental housing does not intrude on the property rights of individuals who own property or who own and occupy housing in existing buildings.
Section 5 approved.
On section 6.
S. Sullivan: I’m worried about this section possibly causing delays — more processes, construction, approval processes. Also, if this changes the form or if it designates a form and character of a multifamily residential, could it be denied if it’s trying to alter the form after that? It may alter the initial residential rental tenure zoning of that site. Is that the purpose of this clause here?
Hon. S. Robinson: The purpose of this is to establish that a development permit must not vary the application of a zoning bylaw in relation to residential rental tenure. The reason for this is that it ensures a local government may only exercise the proposed authority to require that housing be rental housing through the process for amending zoning bylaws, which typically, of course, includes a public hearing and which promotes transparency and allows for public input. That’s exactly what we do with use and density. This is another piece where local governments are required to go through that process.
Section 6 approved.
On section 7.
S. Sullivan: Again, the purpose of this section. Will this cause potential delays in the development of rental housing?
Hon. S. Robinson: The purpose of this is to establish that a development variance permit must not vary the application of a zoning bylaw in relation to rental housing. It’s because we want to make sure that the public is aware it needs to go through a public hearing, which again is about the same rationale we use in order to determine use and density. It’s consistent with those existing rules around these kinds of issues.
Section 7 approved.
On section 8.
S. Sullivan: On the issue of grandfathering, if a grandfathered home were sold to another owner and that other owner intended to live in the home, would it continue as nonconforming tenure and not be subject to rental-only housing?
Hon. S. Robinson: Yes, it would continue.
Section 8 approved.
On section 9.
S. Sullivan: This is about the board of variance and the “not vary the application.” I’m just trying to get an example of how this would be used. Can the minister come up with an example of how this would be implemented?
Hon. S. Robinson: This is a restrictive component of the legislation. It actually says that you can’t use the board of variance in order to change the zoning.
Sections 9 to 11 inclusive approved.
On section 12.
S. Sullivan: Of course, this is the Vancouver Charter, and the changes are exactly the same. This is fairly common. There are some changes that are not for the charter, and I just wondered if the minister can explain some of the differences.
For example…. Well, actually, it’s some of the sections that are later on, 13.
The Chair: Why don’t we go to section 13.
Section 12 approved.
On section 13.
S. Sullivan: This all relates to…. “Section 559 of the Vancouver Charter…is amended by adding the following definitions.” These are all about the Vancouver Charter. Can the minister explain the changes and why these are needed?
Hon. S. Robinson: Although we’ve just gone through a number of sections for the Community Charter, which is all the other municipalities throughout the province…. Of course, we know that Vancouver has its own charter. We’re looking for consistency, to make sure that it’s the same rules, so we have to address a second piece of legislation.
Just like in the Community Charter, we’ve added several definitions that are consequential to the proposed authority that would allow a local government, in this case Vancouver, by bylaw, to have the tools to require that housing be residential rental tenure in an area that is zoned for multifamily residential use. Then there are a number of definitions that are included in this piece of legislation.
Sections 13 to 16 inclusive approved.
On section 17.
S. Sullivan: This was the one that I had some…. I was trying to think my way through this one. “The Board shall not allow an appeal about a zoning by-law in relation to residential tenure.” Can the minister explain the purpose of this one?
Hon. S. Robinson: This is about appeals to the board of variance. It clarifies that the board of variance may not vary the application of a zoning bylaw that requires that housing be residential rental tenure.
S. Sullivan: So this is not appealable to the board of variance, then.
Hon. S. Robinson: No.
Sections 17 to 20 inclusive approved.
Preamble approved.
Title approved.
Hon. S. Robinson: I move that the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 5:17 p.m.
Committee of the Whole House
BILL 18 — LOCAL GOVERNMENT STATUTES
(HOUSING NEEDS
REPORTS)
AMENDMENT ACT, 2018
The House in Committee of the Whole (Section C) on Bill 18; S. Chandra Herbert in the chair.
The committee met at 5:42 p.m.
Hon. S. Robinson: I’d like to just acknowledge that I have some staff here who’ve worked diligently. I’ve got Tara on my right and Jennifer on my left, and they’re here to help us get through the committee stage of this bill.
On section 1.
S. Sullivan: Say we have a 20-year plan. I guess in Metro Vancouver, we have the Shaping Our Future, 2040. If a board must consider the most recent housing needs report the board has received and the housing needs report is released every five years, does this mean that the 20-year regional growth strategy must be also reviewed every five years?
Hon. S. Robinson: The answer is no.
Section 1 approved.
On section 2.
S. Sullivan: This is about the official community plans and how they must be reviewed every five years. Does this mean that the community plan also must be reviewed if this report is coming every five years?
Hon. S. Robinson: No.
Section 2 approved.
On section 3.
S. Sullivan: This is on division 22. There are some words that I wanted to ask about. I think 585.11(b) “is in a class of local governments that is exempted by regulation.” I’m just wanting to know more about why a local government would be exempted from this.
Hon. S. Robinson: I’m grateful for the question, because I think it’s important to recognize that many local governments come in various sizes and shapes. The example that I want to share with the member is Zeballos, for example, where there are just a few hundred people who live there.
They don’t need to undertake a housing study, given that they know exactly…. Just by walking down a couple of streets and checking in, they can do a count in just less than an hour.
S. Sullivan: Ask about this 585.21…. There’s quite a lot of information that is being required by a local government to collect. I guess one of the questions would be: will additional staff be needed by the governments to do this?
Hon. S. Robinson: Well, not necessarily. But just in case, our government set aside $5 million over the next three years to help local governments put things in place, to make sure that they have the resources that they need in order to do, certainly, their first one — to make sure that they understand how to collect it and how to develop the expertise that they need so that they can, going forward, just continue to update their housing needs assessment.
We recognize that there may be some communities that might need a little bit of extra help, and our government has set aside some funds to help them with that.
S. Sullivan: Subsection (e) says: “any other prescribed information.” Can the minister give any sense of what she believes might be encompassed by that?
Hon. S. Robinson: I think it’s really important. We want to have good data, because good data brings forward good decisions. We recognize that there might be an opportunity where there’s a really good data source that comes available, that comes on line, that local governments might find really useful. So we may want to include that going forward. We’ve put it in here as an opportunity to give communities the richest data and the easiest way to collect the data, as well.
Sections 3 to 11 inclusive approved.
On section 12.
S. Sullivan: The council collects this information. I guess the other question, similar to the last, additional funds…. I can imagine this would be costly. Some of these things could be costly. Will additional funds be allocated by the province?
Hon. S. Robinson: First of all, I just want to…. In speaking to this, there are many, many local governments that have already been doing this sort of data collection and have put together very significant reports. They’ve done this all on their own, because they recognize that having good data helps them with good decision-making. So we are making sure that we’re not requiring them to reinvent or do an update if they’ve done it recently. I think that’s important to recognize.
We’ve also — I’ve mentioned to the member earlier — put together a $5 million fund that local governments can apply to. We haven’t predetermined who, and it would depend on what their capacity is and whether or not they’ve done one recently.
I know that many of the larger communities have already done something that’s pretty significant, and what we’re going to be doing with this legislation is creating sort of a minimum standard so that we can do a number of things. We can know and understand, as a province, what’s going on, but also that communities are looking at the same kinds of things so that there’s consistency right across the province.
S. Sullivan: Also, I was just trying to make sense of the timing for the Local Government Act and the Vancouver Charter. It seemed like there were some differences in there. Does the minister expect that these will be aligned? What would be the reason for some of the changes?
Hon. S. Robinson: We recognize that we’re not going to, and it would be impossible to, get it all done all at once. The expectation is that their very first one would be in over the next three years. We recognize that it takes time for local governments to do this work. Then it’s every five years after that so that we would get into a rhythm around that. For those that have already done it, there are some transitional elements to this legislation that’s coming up in the bill.
Section 12 approved.
On section 13.
S. Sullivan: Yes. I guess this is what the minister was referring to in the transitional clauses, here, that are meant to help transition to the new reality. I guess some of my questions were around the Local Government Act versus the Vancouver Charter. I’m just wondering if the minister has any clarifications on that.
Hon. S. Robinson: I want to point out to the member, who was clearly doing his homework, that there are some different transitions for different local governments. We recognize that some have taken this on already. I, or anyone, wouldn’t want them to redo the good work that they’ve already done.
For Vancouver, they have a year to apply to the minister for determination on whether a report that they submit within a year of the legislation coming into force is an acceptable report and can constitute the first housing needs report.
Then we have where there’s been recent completion before the legislation takes effect. By “recent,” we mean a local government receives a housing needs report between January 2, 2018, and the date the legislation comes into force. That’s one scenario that’s acceptable.
Where completion soon after legislation comes into force, a local government has perhaps substantially started a housing needs report before the legislation has come into force, and we receive it within a year after the legislation comes into force. That would be considered acceptable.
Completion before January 2, 2018 — a local government can submit a housing needs report to the minister and apply for determination of whether the report can be considered the first housing needs report.
We’ve recognized that local governments will be in different stages, and we want to make sure that we have transitional provisions accordingly.
Section 13 approved.
On section 14.
S. Sullivan: There are two different treatments of the date when these provisions come into force. There’s the date of the royal assent, and then there’s the regulation of the Lieutenant-Governor-in-Council. I’m wondering if the minister has a sense of when the regulation by Lieutenant-Governor-in-Council will come into effect.
Hon. S. Robinson: Our work has been to get us this far. Once we get through committee stage, through third reading and royal assent, we’ll be able to work together with local governments to develop the regulations. We’ll do that through the UBCM and make sure that we can move forward so that it works for local governments.
Section 14 approved.
Title approved.
Hon. S. Robinson: I move that the committee rise and report the bill complete without amendment.
Motion approved.
The committee rose at 5:57 p.m.
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